- Ag Docket
The petitioner was a dressage trainer and rider and tried to deduct her horse-related expenses. Based on the nine factor analysis of the regulations, the court concluded that the petitioner did not conduct the activity with a profit intent. Importantly, the petitioner had only tack as an asset in the activity and there was no expectation that it would increase in value. The petitioner had no other successes in relevant businesses, and the horse-related expenses were far greater than income from the activity. The petitioner also had significant income from other sources and derived pleasure from the horse activity. McMillan v. Comr., T.C. Memo. 2015-109.