- 4 - estate was entitled to, and properly received, a special valuation for the farm under section 2032A. Petitioner farmed the Nicollet farm for almost 8 years, from the time of his father's death until early 1991. Respondent does not dispute that petitioner materially participated in farming the subject property during this period. On November 27, 1990, Hohenstein suffered an injury to his back, which necessitated surgery. Due to the injury, he can no longer perform the physical labor associated with farming. As a result of petitioner's physical incapacity, on March 21, 1991,1 he sold a 75-acre parcel of the Nicollet farm to an unrelated party. Shortly thereafter, he filed a Form 706-A, United States Additional Estate Tax Return, reporting the disposition and paying the recapture tax due of $27,122. On March 31, 1991, petitioner entered into two separate cash leases with nonfamily members for the two parcels constituting the balance of the Nicollet farm (the subject property in the instant case). The initial lease for the first parcel (consisting of approximately 105 acres) agreed to a 1-year term for the sum of $11,844, payable in a single installment due on or before April 15, 1991. The lease for the second parcel (comprising 1 Although the parties stipulate that the date was March 31, 1991, the Schedule A attached to the Form 706-A states the date of disposition was March 21, 1991.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011