Julie A. Toth - Page 1

                                   128 T.C. No. 1                                     

                               UNITED STATES TAX COURT                                

                            JULIE A. TOTH, Petitioner v.                              
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket Nos. 12452-04, 12862-04.   Filed January 18, 2007.              

                    P began operating a horse boarding and training                   
               facility for profit in 1998.  P has continued carrying                 
               on these activities through the date of trial.  P                      
               claims the expenses paid for these activities are                      
               deductible pursuant to sec. 212, I.R.C., in 1998 and                   
               2001, the years at issue.                                              
                    R denied the deductions, claiming that the                        
               expenses were nondeductible startup expenditures under                 
               sec. 195(a), I.R.C., which must be capitalized because                 
               they were incurred in anticipation of the sec. 212,                    
               I.R.C., activity’s becoming a trade or business.                       
                    Held:  Sec. 195(a), I.R.C., does not require the                  
               expenses of P’s sec. 212, I.R.C., activity to be                       
               capitalized as startup expenditures.  The expenses paid                
               or incurred in the sec. 212, I.R.C., activity are                      

Page:   1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011