- 4 -
Horse Breeding Activity
Gross
Year Income Expenses Loss1
1997 --- $28,884 ($28,884)
1998 --- 31,878 (31,878)
1999 --- 33,131 (33,131)
1 At trial, petitioner asserted that expenses (and losses) for
1997 and 1998 were $24,327.81 and $32,382.45, respectively.
Respondent asserts that the horse breeding activity did not
constitute an activity engaged in for profit under section 183,
and that petitioner is not entitled to those losses. For
convenience, we will combine our findings and discussion herein.
I. Burden of Proof
Generally, the burden of proof is on the taxpayer. Rule
142(a)(1). Under section 7491, the burden of proof shifts from
the taxpayer to the Commissioner if the taxpayer produces
credible evidence with respect to any factual issue relevant to
ascertaining the taxpayer’s tax liability. Sec. 7491(a)(1).
It appears that the examination of the years in issue
commenced after the effective date of section 7491. Petitioner
has conceded that he has not satisfied any of the criteria of
section 7491(a)(1) or (2). We conclude that the burden of proof
remains on petitioner for the years in issue.
II. General Background
Petitioner was employed as a full-time emergency room
physician during the tax years in issue. He received taxable
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011