FINDINGS OF FACT
Some of the facts have been stipulated and are so found. Petitioner resided in Minnesota at the time he filed the petition.
Petitioner became licensed to practice law in Minnesota in 1977 and maintained a general solo practice in Minneapolis throughout the years at issue. He also devoted significant time to the thoroughbred activity, which involved his effort to profit from breeding a stallion he owned named “Choosing Choice”. At trial petitioner estimated that he had practiced law for 1,200 hours in 2002, 1,100 hours in 2003, and 1,000 hours in 2004. The result in this case turns on the amount of time he devoted to the thoroughbred activity in each of those years.
Petitioner has enjoyed horse racing since he was an adolescent. He became involved in thoroughbred horse breeding and racing in 1990 when he purchased his first racehorse, a Minnesota-bred yearling (a one-year-old horse). He was representing a client before the Minnesota Racing Commission at the time, and it was his exposure to the industry through this representation that motivated his purchase. The following year petitioner bought a mare from the trainer he had hired to train the yearling. The mare had knee problems and could no longer race, so petitioner moved the horse to Florida in 1992 and bred it to a stallion there.
Judge(s): Joseph Gale
Jurisdiction: U.S. Tax Court
Related Categories: Agriculture , Civil Procedure , Communications , Competition , Contracts , Education , Immigration , Insurance , Property , Securities , Taxation , Transportation
|Circuit Court Judge(s)|
|Petitioner Lawyer(s)||Petitioner Law Firm(s)|
|Respondent Lawyer(s)||Respondent Law Firm(s)|
|Ardney Boland, III||Internal Revenue Service|
|Emile Herbert, III||Internal Revenue Service|