Thomas C. Burger and Marian E. Burger v. Commissioner of Internal Revenue

FLAUM, Circuit Judge.

The respondent determined deficiencies in the taxpayers’ joint federal income tax returns for the years 1978-80. These deficiencies were assessed because the respondent determined that the petitioners’ dog breeding operation was not an activity engaged in for profit under § 183 of the Internal Revenue Code. The respondent therefore determined that some of the taxpayers’ losses were not deductible. The taxpayers filed a petition in the tax court for a redetermination of the deficiencies. A trial was held and the tax court upheld the deficiencies. The taxpayers appeal and…