- 8 - This determination is based on the facts as submitted. Any unrevealed circumstances could require the application of a more restrictive rule. In fulfilling the terms of the CRP contract, petitioners, among other things, planted approximately 2,750 trees, prepared the land and planted the grasses specified by the Soil Conservation Service, built fences, purchased seeders, tractors, and water tanks, and kept several goats to prevent the spread of noxious weeds. On their Federal income tax returns, petitioners reported “Wages, salaries, tips, etc.” of $38,840, $30,254, and $23,374 for taxable years 1990, 1992, and 1994, respectively. Petitioners also reported gross receipts from petitioner's Schedule C construction business in the amounts of $10,758 for 1990 and $15,337 for 1992. Consistent with petitioner's disabled status, petitioners did not attach a Schedule C for his construction business to their 1994 Federal income tax return. On Schedules F attached to their Federal income tax returns for the years in issue, petitioners reported as income the $2,580 received pursuant to the CRP contract, as well as cooperative distributions.5 Petitioners deducted the following Schedule F expenses: 5 Petitioners reported cooperative distributions of $118 and $77 for taxable years 1992 and 1994, respectively.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