Married Couple Suffers Losses

Married Couple Suffers Losses Essay example
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Finance & Accounting
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A married couple consisting of a business manager and a nurse bred horses for profit within Code Section 183. While the couple had their losses, records declared that taxpayers made a profit. …

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Furthermore, the husband had a strong background in business practices and the wife holds a degree in horse management. All of these aspects enabled the couple to be rightfully qualified for horse breeding. The respondent of the case noted inadequacies in the petitioners’ Federal incomes taxes for 2005 and 2006 in the amounts of $46,504 and $34,500, respectively. As such, a trial was held on March 3, 2011, in St. Paul, Minnesota to determine whether or not the petitioners’ horse breeding enterprise was considered to be for profit. When the petition was filed, the petitioners, Mark and Patti Blackwell, lived in Minnesota. Mark Blackwell has an MBA degree and thirty years of experience in business management. After working as a motocross racer and instructor, he founded a motocross drivers’ school. Since then, Mark has had an astounding career as the manager and senior officer for motorcycle, snowmobile, ATV, and personal watercraft manufacturing companies. At these jobs, Mark worked over forty hours a week. Patti holds a college degree in nursing. She did not work between 2000-2002, though she was involved in horse breeding, but picked up thirty hours a week in 2003 as a rehabilitation nurse counselor, working out of the family residence. ...
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