Bessenyey v. Commissioner
United States Tax Court
1. Petitioner, a woman of substantial means, sustained large losses in the raising of Hungarian Half-Bred horses. Held: Petitioner bred and raised these horses in an attempt to perpetuate and establish them as a recognized breed in the United States. She conducted the operation for personal satisfaction and not in order to obtain a profit.
Read the full summary
1. Petitioner, a woman of substantial means, sustained large losses in the raising of Hungarian Half-Bred horses. Held: Petitioner bred and raised these horses in an attempt to perpetuate and establish them as a recognized breed in the United States. She conducted the operation for personal satisfaction and not in order to obtain a profit. Losses thus sustained are not deductible. 2. Petitioner incurred expenses in recovering from the Office of Alien Property (a) a residuary bequest and (b) a cash bequest together with accompanying interest. Held, the expenses allocable to the residuary…
1Opinion of the Court
OPINION
Naum, Judge:
1. Horse Expenses. — During the years in issue, 1955-59, petitioner conducted a horse-breeding operation, using two farms for that purpose, one in Montana and one in Maryland, and continues to do so at the present time. 'She has sustained substantia] losses annually from the operation throughout the entire period. But the mere maintenance of a horse-breeding establishment is not sufficient to assure the deductibility of such losses. Under any of the possibly pertinent provisions of the 1954 Code,1 it is necessary that the operation be conducted for the purpose of making a…
2Cases cited8 opinions
- Harrison E. Spangler and Myrtle B. Spangler v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1963
- Corliss Lamont and Margaret I. Lamont v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1964
- Henry P. White and Estate of Nancy A. White, Deceased, T. Leo Sullivan, Administrator, C.T.A. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1955
- Doggett v. BurnetCourt of Appeals for the D.C. Circuit · 1933
- Morton v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1949
3 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- David Dewees and Anne Dewees v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1989
- Melvin Nickerson and Naomi W. Nickerson v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1983
- Daniel E. Hendricks Barbara E. Hendricks v. Commissioner of the Internal Revenue ServiceCourt of Appeals for the Fourth Circuit · 1994
- Charles H. Carter and Virgie Ann Carter v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1981
- Estate of Elizabeth L. Power v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1984
11 more not listed; retrieve them via the Exa API.