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Commissioner, 59 T.C. 312, 317 (1972); sec. 1.183-2(b)(9), Income
Tax Regs.
Petitioner contends that there were no elements of personal
pleasure or recreation involved in her thoroughbred horse
breeding and racing activities. She did not live on a farm with
a trophy house. She never rode the horses. In fact, she
intentionally avoided contact with them to remain detached. She
saw the horses only three or four times a year. There is no
indication that she had any affection for any of the horses.
We find petitioner’s intentional limited contact with her
horses indicates minimal pleasure and recreation were involved.
10. Conclusion
Considering all of the facts and circumstances of this case,
we find that petitioner failed to prove that she engaged in
thoroughbred horse breeding and racing activities with the actual
and honest intent to earn a profit. Accordingly, we sustain
respondent’s determination in the statutory notice of deficiency.
We have considered petitioner’s other arguments and conclude
they are irrelevant, moot, or meritless.
III. Procedural Issue
We finally address a procedural matter. Petitioner attached
to her reply brief a copy of an article from an unknown source
that discusses one of petitioner’s thoroughbred horses.
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