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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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