T.C. Memo. 1997-56
UNITED STATES TAX COURT
RICHARD D. HOHENSTEIN, Petitioner v. COMMISSIONER OF
INTERNAL REVENUE, Respondent
Docket No. 22282-94. Filed January 30, 1997.
P, a qualified heir, received farm property
subject to a special use valuation election pursuant to
sec. 2032A, I.R.C. P farmed the property for
approximately 8 years after the death of his father and
then, after becoming physically incapacitated, sold a
portion of the farmland and leased the remainder of the
property to unrelated parties on a cash basis. Held:
As a result of the cash leases, P ceased to use the
property for its qualified use and is liable for
additional Federal estate tax imposed by sec. 2032A(c),
I.R.C. Williamson v. Commissioner, 93 T.C. 242 (1989),
affd. 974 F.2d 1525 (9th Cir. 1992) and Martin v.
Commissioner, 84 T.C. 620 (1985), affd. 783 F.2d 81
(7th Cir. 1986), followed.
C. Thomas Wilson, for petitioner.
Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011