- 46 -
quite substantial nature”, we decline to draw such an inference
on the basis of the record at hand.
Second, the horse activity has incurred 15 years of large
losses and only had a profit, minimal at that, in a single year.
Petitioner has not persuaded us that the horse activity has a
chance either to make a profit in the future or to recoup the
losses which it has incurred to date. She acknowledged during
her testimony that showing horses is not a viable way to earn
income, and her advertising expenses for the horse activity have
been minimal. She also has shown Kart Blanche since 1990, but
has never offered it for sale, and sold Bogaz 9 years after first
showing it. While she claims that the horse activity may someday
earn a speculative profit from stud/breeding fees or syndication
of an Arabian stallion, this claim is not supported by the record
before us. Nor is this claim sufficient in this case to outweigh
the absence of any meaningful profit in any year of the horse
activity’s operation (or for that matter any profit at all except
for the year of the sale of Bogaz). Although petitioner
testified that the nonoccurrence of certain events would have
resulted in her reporting a profit for some of the years of the
horse activity’s operation, we are unpersuaded that such would
have been the case.
This factor favors respondent.
Page: Previous 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 NextLast modified: May 25, 2011