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projections indicates a lack of businesslike operations.
Surridge v. Commissioner, T.C. Memo. 1998-304. The failure to
maintain a separate bank account or to prepare a budget also
indicates a lack of businesslike operations. Id.
Petitioner did not maintain a separate bank account for the
horse activity, and we do not find on the basis of credible
evidence that she kept a separate set of books and records for
the activity. We also do not find on the basis of credible
evidence that petitioner, as to the horse activity, prepared
financial statements, profit and loss projections, budgets,
break-even analyses, or marketing surveys, each of which may aid
a taxpayer in cutting expenses, increasing profits, and
evaluating the overall performance of an activity, Golanty v.
Commissioner, 72 T.C. at 430, or that she prepared a business
plan for the horse activity as it would pertain to the subject
years. While petitioner did retain some records on the horse
activity, we do not find on the basis of credible evidence that
she ever used those records or the data reflected therein to
evaluate or improve that activity’s financial performance. See
Burger v. Commissioner, 809 F.2d 355, 359 (7th Cir. 1987), affg.
T.C. Memo. 1985-523; Connolly v. Commissioner, T.C. Memo.
1994-218, affd. without published opinion sub nom. Redd v.
Commissioner, 58 F.3d 635 (5th Cir. 1995).
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