- 8 - In 2002, proceeds received from the sale of Lady and Trouble were deposited into one of petitioner’s personal checking accounts, not into the Nora Ellen Keating Stony Creek Arabians bank account. Petitioner recorded horse activity expenses on a ledger by category and retained receipts relating to her horse activity in a folder by month of transaction. Petitioner kept records of training, ovulatory cycles, and vaccinations relating to each horse. Petitioner did not associate her horse activity expenses with individual horses. During the years in issue, petitioner did not prepare or have prepared a written business plan or financial projections relating to her horse activity. For 1996 through 2000, petitioners timely filed joint Federal income tax returns, and for 2001 and 2002 petitioner timely filed an individual Federal income tax return. Petitioners’ joint Federal income tax returns for 1996 through 2000 and petitioner’s individual Federal income tax returns for 2001 and 2002 included a Schedule F, Profit or Loss From Farming, on which it was indicated that the principal activity was “horses”.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: November 10, 2007