Tax Court: Horse Breeding Activity Not Motivated By Profit, Losses Disallowed

Horse FarmIn a memorandum opinion, the Tax Court has held that a taxpayer’s 17 years of losses in the horse-breeding business was not an activity motivated by profit under IRC ยง183. The taxpayer’s deductions attributable to the activity were disallowed and a substantial underpayment penalty was imposed.

Read the opinion here:
Dodds v. Commissioner, T.C. Memo. 2013-76