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Sugar Tree, and of their efforts to reduce hay and other costs,
dispositive on the issue of their profit motive. It is beyond
this Court’s purview to second-guess petitioners’ business
judgment or the manner of operations of their business. We
decline to do so.
In this case, we are presented with taxpayers who admit that
during 1999, they became aware that they could not make a profit
but yet still continued business operations while taking steps to
mitigate their expenses until the business and property could be
sold. Accordingly, we now address whether petitioners’ admission
at trial should trump the other facts and circumstances of this
case.
While we cannot disregard Mr. Rozzano’s admission that at
some point in 1999 he realized that his hopes of turning the
boarding activities into a profitable business were unattainable
we do not find that as of that moment, petitioners’ activities
ceased to be a bona fide business within the meaning of section
183. Moreover, our decision comports with this Court’s holding
in Dreicer, where greater weight must be afforded to the
consideration of all of the facts and circumstances. In this
case, the facts and circumstances surrounding petitioners’
actions between the time of their realization with respect to
profitability in 1999 and the ultimate disposal of the property
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