December 21, 2021
Rejecting IRS position, Tax Court holds wealthy couple's donkey breeding activity had a profit motive
In William R. Huff, et ux. v. Commissioner, Tax Ct. Dkt. No. 22604-17, the Tax Court has held that a wealthy couple who began breeding miniature donkeys to supplement the income of their adult daughter, and generated losses exceeding $134k during 2013–2014, nonetheless "engaged in the breeding activity with an actual and honest objective of making a profit," making those losses deductible.
Huff et ux v. CIR