Toth v. Comm'r
United States Tax Court
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.
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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…
1Opinion of the Court
Haines, Judge:
Respondent determined deficiencies in petitioner’s Federal income taxes for 1998 and 2001 (years at issue) of $112,461 and $84,388, as well as additions to tax under section 6651(a)(1) of $19,512 and $13,920, under section 6651(a)(2) to be computed, and under section 6654(a) of $3,806 and $2,349, respectively.
The issue for decision as framed by the parties is: whether petitioner may deduct expenses in connection with her horse boarding and training activities for the years at issue pursuant to section 212 or instead is required by section 195(a) to capitalize them as startup…
2Cases cited17 opinions
- Crane v. CommissionerSupreme Court of the United States · 1947
- Woodward v. CommissionerSupreme Court of the United States · 1970
- Commissioner v. Idaho Power Co.Supreme Court of the United States · 1974
- Richmond Television Corporation v. United StatesCourt of Appeals for the Fourth Circuit · 1965
- Richmond Television Corp. v. United StatesSupreme Court of the United States · 1965
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3Cited by4 opinions
- James Gordon Primus v. CommissionerUnited States Tax Court · 2020
- Julie A. Toth v. CommissionerUnited States Tax Court · 2007
- Philip N. Rose & Leanna Rose v. CommissionerUnited States Tax Court · 2019
- Toth v. Comm'rUnited States Tax Court · 2007