Attorney-at-Law

CLEANING THE STABLES

In Uncategorized on 12/14/2016 at 17:48

No, this is neither political commentary, nor a retelling of what the ancient Greeks told much better. Rather, Jerald L. Carmody, 2016 T. C. Memo. 226, filed 12/14/16, fails to convince Ch J L. Paige (“Iron Fist”) Marvel that his Hercules imitation sufficiently transmutes his horseracing hobby into a business. He stumbles at the usual Section 183 fence.

“During the years at issue petitioner spent time every day on his horse racing activity.  In addition to entering horses in races, he researched on the Internet horses that would be racing during the current week, researched the performances of horses in which he had previously owned an interest, and also searched for other horses in which to purchase interests.  On the weekends petitioner cleaned stalls and pastures, attended races at the racetracks, helped Mr. P care for the horses during the evenings, and watched videos of the races during the nights.  Because the racing seasons at the racetracks span most of the year, petitioner engaged in these activities throughout the entire year.” 2016 T. C. Memo. 226, at pp. 7-8. (Name omitted).

But no business plan, sketchy books and records, continuous losses over twenty years, no consultations with experts or successful operators, avid horseracing enjoyment, and lots of other income from flogging parts and services for helicopters, causes Jerald to become unhorsed taxwise.

Jerald should check out my blogpost “I’ve Got The Horse Right Here,” 4/9/14, for how Stefan A. Tolin beat IRS in a photo finish.

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