George R. and Barbara H. Burrus - Page 26

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          Petitioners did not have a written business plan, nor did they              
          prepare income or budget projections with respect to the                    
          activity.  However, petitioners contend that Dr. Burrus believed            
          the cattle activity would begin to show a profit once the herd              
          reached approximately 100 purebred productive cows and that he              
          was endeavoring towards that goal.  Respondent disputes                     
          petitioners’ contention that they were endeavoring to achieve a             
          herd of 100 cows, citing among other things the absence of                  
          records documenting the size of petitioners’ herd for the years             
          in issue.                                                                   
               We agree with respondent that it is not possible to                    
          determine the size of petitioners’ herd during the years in issue           
          from the herd inventory records in evidence.11  This is so                  

               10(...continued)                                                       
               expert witness in its entirety.  [Alumax, Inc. v.                      
               Commissioner, 109 T.C. 133, 171-172 (1997), affd. 165                  
               F.3d 822 (11th Cir. 1999); citations omitted.]                         
               As best we can ascertain from their reports, the parties’              
          cattle breeding experts were provided data on petitioners’ cattle           
          operation that was more limited than what has been introduced as            
          evidence in these proceedings.  In a few instances, the experts             
          appear to have been provided information that is not in the                 
          record.  In any event, their failure to analyze certain of the              
          years in issue detracts significantly from the usefulness of                
          their testimony.  As a result, to the extent we have not                    
          specifically mentioned their testimony, we have found it                    
          unhelpful, unpersuasive, or both.                                           
               11 The parties’ cattle experts provided herd figures for               
          certain years in their reports, apparently based in part on                 
                                                             (continued...)           




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