Victor A. and Marion W. Prieto - Page 10




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               Dates             Boarding Facility            Location                
               5/91 - 12/93   Portola Valley Training CenterPortola Valley            
               1/94 - 4/95    Pebble Beach Equestrian CenterPebble Beach              
               4/95 - 8/95    Portola Valley Training CenterPortola Valley            
               8/95 - 12/95   Hidden Valley Ranch           Hidden Valley             
          The boarding facility in Portola Valley was a 30-minute drive               
          from petitioners’ home in San Mateo, California.  The boarding              
          facility in Pebble Beach was a 1.5- to 2-hour drive from                    
          petitioners’ home.  Rather than drive to Pebble Beach,                      
          petitioners rented a house near Pebble Beach, California, where             
          petitioners and their children would stay on weekends they                  
          visited the boarding facility.                                              
               Hidden Valley is in southern California and was not near               
          petitioners home.  Nicole recommended to petitioners that they              
          move their horses from northern California to southern                      
          California.  When petitioners moved their horses to southern                
          California in August 1995, Nicole moved in with her then                    
          boyfriend (and future husband), who, at the time, lived in                  
          southern California.                                                        
               F.   Expenses/Losses/AGI                                               
               The total entry fees and show costs reported by petitioners            
          for the horse activity were as follows:                                     
    Category          1991      1992      1993      1994      1995     1996     1997      1998
    Entry fees      $21,831   $37,396   $79,240   $49,057   $56,168    $882   $91,656   $66,471
    Show costs        4,065    22,792    20,991    21,978    28,030       0         0         0
    Reimbursements       (0)  (22,820)  (43,851)  (30,417)       (0)     (0)       (0)       (0)
    Total            25,896    37,368    56,380    40,618    84,198     882    91,656    66,471







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