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horses for pleasure or recreation. See Montagne v. Commissioner,
T.C. Memo. 2004-252, affd. 166 Fed. Appx. 265 (8th Cir. 2006);
Bunney v. Commissioner, T.C. Memo. 2003-233.
On the facts of this case, the recreational aspects of
petitioner’s horse activity suggest an activity without a profit
objective.
This factor weighs in favor of respondent.
Conclusion
Of the above factors, five weigh in favor of respondent,
four are neutral, while none weighs in favor of petitioner. We
hold that petitioner’s horse activity during the years in issue
was an activity not carried on for profit within the meaning of
section 183(c).1
This case is decided on the preponderance of the evidence,
and is unaffected by section 7491. See Estate of Bongard v.
Commissioner, 124 T.C. 95, 111 (2005).
To reflect the foregoing,
Decision will be entered
for respondent.
1 This opinion only applies to the years in issue, and
petitioner is not precluded from establishing a for-profit
objective in later years. See Rinehart v. Commissioner, T.C.
Memo. 2002-9.
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