Andris Zarins and Zigrida A. Zarins - Page 10




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          that he had no specific concept for operating a profitable tree             
          farm shows that he did not have a business plan.                            
               Petitioners contend in their brief that they planned to                
          plant about 500-1000 seedlings each year and to sell 300-1000               
          trees for $9,000-$30,000 per year around years 10 to 12.                    
          However, statements in a brief are not evidence.  See Rule                  
          143(b); Niedringhaus v. Commissioner, 99 T.C. 202, 214 n.7                  
          (1992); Viehweg v. Commissioner, 90 T.C. 1248, 1255 (1988).                 
               Petitioners contend that petitioner made income projections            
          for the tree farm.  However, we have not so found because                   
          petitioners offered no evidence to support that contention.                 
               Petitioner kept records of income and expenses for his tree            
          farm to substantiate the deductions petitioners claimed on their            
          1994 and 1995 returns.  These records do not establish that their           
          tree farm had profit potential.                                             
               Petitioners contend that they tried to make their tree farm            
          profitable without spending large amounts of money other than for           
          the pond.  However, they offered no evidence of the amount of               
          expenses or sales they expected to have.  There is no evidence in           
          the record showing that enough of petitioners’ trees will be                
          available for sale to enable them to make a profit.                         
               Petitioners contend that they made numerous changes in their           
          operations to improve their profit potential.  We disagree.                 








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