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breeding and racing activities for a profit under section 183.
Petitioner timely filed a petition with this Court seeking
redetermination of the disallowed deductions.
OPINION
I. Whether Petitioner Operated Her Horse Racing and Breeding
Activities for Profit in 1996
The sole issue for decision is whether petitioner operated
her thoroughbred horse racing and breeding activities for profit
in 1996 within the meaning of section 183. Section 183(a)
provides generally that if an individual engages in an activity
and “if such activity is not engaged in for profit, no deduction
attributable to such activity shall be allowed under this chapter
except as provided in this section.” Deductions that would be
allowable without regard to whether the activity is engaged in
for profit shall be allowed under section 183(b)(1) and
deductions that would be allowable only if the activity is
engaged in for profit shall be allowed under section 183(b)(2),
but only to the extent that the gross income from the activity
exceeds the deductions otherwise allowable under section
183(b)(1).
We follow the Court of Appeals opinion squarely in point
where appeal from our decision would lie absent stipulation by
the parties to the contrary. Golsen v. Commissioner, 54 T.C. 742
(1970), affd. 445 F.2d 985 (10th Cir. 1971). Because petitioner
resides in the Third Circuit, petitioner has the burden of
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