Curtis R. and Lynn Bitker - Page 11

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               Of the $939,839 of short-term debt and $1,978,995 of long-term         
          debt reported on the 1995 Form 1065, $205,263 of short-term debt            
          and $756,759 of long-term debt were owed by petitioners in their            
          individual capacities.                                                      
               On the 1996 Form 1065, the Bitker partnership reported                 
          ordinary income of $132,754 that was attributable to its farming            
          activity.  On the 1996 Schedule F, Profit or Loss From Farming, the         
          Bitker partnership reported $2,116,506 of gross income and                  
          $1,983,752 of expenses.  The expenses included, inter alia,                 
          $236,390 for rent or lease of land, animals, etc., $92,811 for              
          depreciation, and $223,411 for interest.                                    
               On the 1997 Form 1065, the Bitker partnership reported                 
          ordinary income of $150,255 that was attributable to its farming            
          activity.  On the 1997 Schedule F, the Bitker partnership reported          
          $2,223,960 of gross income and $2,073,705 total expenses, which             
          expenses included, inter alia, $141,072 for rent or lease of land,          
          animals, etc., $85,267 for depreciation, and $211,622 for interest.         
               Each year on their Forms 1040, petitioners reported the income         
          reflected on their Schedules K-1 from the Bitker partnership.  On           
          their 1996 Forms 1040, in addition to the income from the Bitker            
          partnership, petitioners reported other income from rental real             
          estate on Schedules E.  On their 1996 Form 1040, Curtis and Lynn            
          Bitker reported $80,000 of rental income from farmland in Polk              
          County, Minnesota.  On their 1996 Form 1040, Jerry and Coleen               






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Last modified: May 25, 2011