Evert E. and Eva F. Berglund - Page 16

                                                - 16 -                                                  
            their 1987 and 1988 Federal income tax returns.  Payments to                                
            agricultural producers pursuant to the ASCS constitute taxable                              
            income to the recipients.  G.A. Stafford & Co. v. Pedrick, 171                              
            F.2d 42 (2d Cir. 1948); Baboquivari Cattle Co. v. Commissioner,                             
            135 F.2d 114 (9th Cir. 1943), affg. 47 B.T.A. 129 (1942); Harding                           
            v. Commissioner, T.C. Memo. 1970-179.5                                                      
                  Petitioner has offered no evidence to establish that the                              
            subject payments were not made to him or for his benefit.                                   
            Instead, petitioner has stated that he and his spouse directed                              
            the 1987 ASCS payment of $11,198.96 to be applied to his FHA                                
            loan.  The ASCS payments fall within the broad definition of                                
            gross income in section 61.  Accordingly, we sustain respondent's                           
            determination on this issue.                                                                
                  To reflect the foregoing and concessions by respondent,                               
                                                       Decision will be entered under                   
                                                Rule 155.                                               








            5Sec. 1.61-4(a)(4), Income Tax Regs., provides that farmers                                 
            using the cash receipts and disbursements method of accounting                              
            shall include in gross income for the taxable year "All subsidy                             
            and conservation payments received which must be considered as                              
            income."                                                                                    






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  

Last modified: May 25, 2011