Bloomberg Tax
Free Newsletter Sign Up
Bloomberg Tax
Welcome
Go
Free Newsletter Sign Up

Miniature Donkey Farm Qualifies for Tax Deductions, Court Rules

Dec. 21, 2021, 9:46 PM

A wealthy couple who established a miniature donkey farm for their daughter will be able to deduct business losses because they sought to make a profit from the venture, the U.S. Tax Court said.

William R. Huff, the founder and manager of an investment management firm for high-net-worth individuals, and his wife, Cathy Markey Huff, created Ecotone, an entity for agricultural and equestrian purposes, in 2004. In 2010 they began breeding and trading miniature donkeys in order to supplement their daughter Jennifer’s income, with the intent to turn the business over to her ...