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United States Tax Court Rules Racing Is a Hobby HobbyAppeal Appeal Forthcoming From Case Filed by Stouts of Michigan MichiganWASHINGTON WASHINGTON D C June 12 In the latest decision involving the controversial question of whether racing is a business or a hobby for federal income tax purposes the United States Tax Court has held in the case of a Michigan taxpayer that it is a hobby hobbyThe The case came before the tax court on an appeal filed by Edward M Stout and Grace Stout of Pontiac Mich from the action of the Commissioner of Internal Revenue in disallowing in their joint return expenses and losses incurred in operating a horse farm and racing stable The commissioner held that it was a hobby hobbyStout Stout is a real estate dealer who is en ¬ gaged in harness racing racingThe The opinion of the tax court cited previ ¬ ous cases in which there has been a de ¬ termination by the courts of this perplexing question The opinion stated statedIn In the cases cited an apparent and de ¬ liberate plan to operate horse racing as a business is readily discernible discernibleThe The court however found no such pat ¬ tern in the Stout case and upheld the rev ¬ enue commissioner with the statement that the evidence forces the conclusion on our part that he Stout kept his horses on Hilltop because it was a convenient method of hobbyThe reducing the cost of an expensive hobby The Stout decision together with 30 or more other judicial and official rulings on the issue will appear in the 25th anniver ¬ sary edition of racing and the income tax which will be published this year by the National Thoroughbred Foundation In ¬ quiries concerning the forthcoming edition should be addressd to the foundation at Post Office Box 578 Washington D C
