Robert E. and Carloyn S. Holmes - Page 5

                                        - 5 -                                         

                  In 1986, petitioners began to consider the feasibility              
             of purchasing additional real estate near their home.                    
             Mr. Edgar Puthuff owned a 300-acre plot which bordered                   
             petitioners' 5- and 40-acre parcels.  Mr. Timothy                        
             VandenHeede, a neighboring farmer and personal friend of                 
             petitioner, had previously raised corn on portions of the                
             300-acre plot.  After discussions with Mr. VandenHeede                   
             regarding the purchase and economic feasibility of farming               
             the land, petitioner and Mr. VandenHeede agreed to order a               
             survey of the entire 300-acre plot.  Petitioner also                     
             discussed the possible purchase of this additional real                  
             estate with Mr. Mike Robinson, a local farmer, and with                  
             representatives of the local Agriculture Stabilization                   
             Control (ASC) office.                                                    
                  Later in 1986, petitioner and Mr. VandenHeede each                  
             purchased a portion of the 300-acre plot.  Petitioners                   
             purchased 120 acres (the 120-acre parcel) contiguous to the              
             5- and 40-acre parcels, and Mr. VandenHeede purchased the                
             remaining 180 acres.  The 120-acre parcel which petitioners              
             purchased consisted of crop land, timberland, and some wet-              
             land.  At the time of the purchase, petitioners intended                 
             to farm a portion of the 120-acre parcel.  According to                  
             the depreciation schedules attached to their returns,                    







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