In 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 §183. 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
Pingback: Tax Roundup, 3/19/2013: How tax policy killed the big bands. Maybe Cyprus is next. « Roth & Company, P.C