- 2 -
Respondent determined a deficiency in petitioner’s Federal
income tax for the taxable year 2001 in the amount of $14,490, as
well as additions to tax for that same year, as follows:
$2,189.25 under section 6651(a)(1), $1,508.15 under section
6651(a)(2), and $364.12 under section 6654(a).
After concessions by respondent, the two issues for decision
are: (1) Whether petitioner’s horse showing and breeding
activities were activities engaged in for profit within the
meaning of section 183; and (2) whether petitioner is liable for
the addition to tax under section 6651(a)(1) for failure to
timely file her 2001 Federal income tax return. We hold that
petitioner’s horse showing and breeding activities were not
engaged in for profit within the meaning of section 183 and that
she is liable for the addition to tax under section 6651(a)(1).
Background
Some of the facts have been stipulated, and they are so
found. We incorporate by reference the parties’ stipulation of
facts and accompanying exhibits.2
At the time the petition was filed, Judith Sanders-Castro
(petitioner) resided in San Antonio, Texas.
2 As she did not file a pretrial memorandum, at trial
petitioner specifically requested the opportunity to provide the
Court with a written reply to respondent’s submission.
Consequently, both parties were ordered to submit posttrial
memoranda within 90 days. Respondent’s posttrial memorandum was
filed June 1, 2006; petitioner’s brief was never received.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011