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Respondent determined deficiencies in petitioner’s Federal
income tax of $3,034 for 1995 and $6,015 for 1996. After
concessions, the issues presented for decision by the parties’
motions are: (1) Whether petitioner’s expenditures related to
his tree farm activities are startup expenses that are not
currently deductible under section 195; and (2) if the expenses
are not startup expenses, whether petitioner was engaged in an
activity for profit within the meaning of section 183.2
We sustain respondent’s determination that petitioner’s
“trees” expenses were startup expenses and not currently
deductible. In so doing, we shall grant respondent’s motion and
deny petitioner’s motion. As a result, we do not reach the
section 183 issue raised by respondent.
Background
Petitioner resided in Whitmore, California, when the
petition was filed in this case.
Petitioner timely filed a petition and amended petition,
both of which contained various frivolous arguments. After
respondent filed a motion to dismiss for failure to state a
2Respondent also determined in the notice of deficiency that
petitioner failed to include taxable Social Security income in
1995 and 1996, unemployment compensation in 1995, and interest
income paid in 1996. Respondent also disallowed certain
miscellaneous itemized deductions in 1995 and a net operating
loss in 1996. Petitioner did not challenge any of these
determinations in any of his petitions. Pursuant to Rule 34(b),
these issues are deemed conceded.
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