- 21 -
objective of making a profit; therefore, because deductions are
allowable under sections 162 and 212 (and thus not subject to the
limitations of section 183), we render respondent’s alternative
argument on this point as moot.7 Further, respondent based the
accuracy-related penalties upon respondent’s disallowance of
petitioners’ deduction for flowthrough losses from Diane Racing’s
yacht activity. Accordingly, we render the issue moot.
In reaching our holdings herein, we have considered all
arguments made, and to the extent not mentioned above, we
conclude them to be moot, irrelevant, or without merit.
To reflect the foregoing,
Decision will be
entered for petitioners.
7 Respondent argued in the alternative that the deductions
related to flowthrough losses claimed by petitioners from Diane
Racing, which included depreciation deductions, should be
disallowed as personal expenses under sec. 162.
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Last modified: May 25, 2011