Oakcross Vineyards, LTD., Dennis D. Groth, Tax Matters Partner - Page 3

                                        - 3 -                                         
          three children are limited partners of Vineyards and own the                
          remainder of Vineyards, each trust holding a 5-percent interest.            
               Vineyards is engaged in the business of growing wine grapes            
          and is a farmer for purposes of the Code.  Vineyards jointly                
          operates two vineyards:  the Oakcross Vineyard, a 121-acre parcel           
          acquired during 1981 for $2,180,000, and the Hillview Vineyard,             
          acquired during 1982 for $975,000.  Vineyards made downpayments             
          of $400,000 and $250,000, respectively, for each parcel and                 
          financed the remainder of their purchase prices with mortgage               
          debt.  Vineyards borrowed $301,115 from the Production Credit               
          Association (PCA) for the purchase of the Hillview Vineyard.                
          Since it started business, Vineyards has used the cash receipts             
          and disbursements method of accounting.                                     
               Vineyards' operations were initially financed by cash                  
          contributions from the Groths, mortgage debt, and annual                    
          operating loans.  Vineyards obtained operating or crop loans from           
          the PCA during each of the years 1981 through 1988.  The loans              
          were repaid each year.  During 1988, Vineyards obtained a                   
          $300,000 line of credit from Napa National Bank.                            
               During 1990, Vineyards employed, inter alia, a vineyard                
          manager and two assistants.  Prior to and during 1990, Vineyards            
          maintained an office in a building on the Hillview Vineyard.                
               During 1982, having learned that operating a winery offered            
          greater potential for profit than operating a vineyard, the                 

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011