- 4 -
The Horse Activity
Petitioner began riding horses when he was 8 years old and
has always had an interest in horses. In 1990, he developed an
interest in “reining” horses, a type of western riding sport.
Petitioner engaged in the horse activity under the name M&S
Performance Horses (M&S). At the outset, petitioner neither
obtained a business license nor filed a fictitious name statement
for M&S. During the years in issue, petitioner operated M&S to
breed, train, sell, and compete horses.
Petitioner researched the horse activity by going to reining
competitions, reading books and publications about the industry,
and attending clinics. In 1992, petitioner purchased his first
breeding stallion, an American paint horse, Bandits Lucky Doc.
On November 23, 1992, petitioner prepared a business plan for
M&S, including an income statement and an estimate of revenues
and expenses.
Over the next few years, M&S changed direction due to a
change in the breeding rules for reining horses. As a result of
this change, petitioner began to purchase high-quality broodmares
to breed with horses in southern California. Petitioner did not
update his business plan to reflect the change in the direction
of the business. Petitioner sold Bandits Lucky Doc in 1996.
Petitioner employed Manuel Campos (Campos) as a trainer for
6 years. Campos’s business, Manuel Campos Performance Horses
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011