- 17 - however, does not necessarily mean that he or she lacks a profit objective with respect thereto. A profit objective may be present in the latter case if the activity is truly engaged in for profit as evidenced by other factors. Petitioner derived some pleasure from the horse breeding activity (he enjoyed the horses and attended horse shows and other events with his wife), but we do not find that the enjoyment rose to the level of recreational activity. Petitioner did not ride the horses for recreational purposes, although his wife rode them when she showed the horses at certain horse- related events. This factor is neutral. On the basis of the above analysis, we conclude that petitioner is not entitled to the claimed losses resulting from his horse breeding activity. IV. Filing Status In order to qualify for rates applicable to “Married Individuals Filing Joint Returns”, an individual must make a joint return with his or her spouse pursuant to section 6013. Sec. 1(a)(1). Joint filing status is not permitted unless a joint return is filed and made a part of the record before the case is submitted to the Court for decision. Phillips v. Commissioner, 86 T.C. 433, 441 n.7 (1986), affd. in part and revd. in part 851 F.2d 1492 (D.C. Cir. 1988); Gudenschwager v. Commissioner, T.C. Memo. 1989-6 (“If a taxpayer has not filed aPage: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011