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Maple Leaf Farms, Inc. v. Commissioner, supra at 447-448
(defining a farm); secs. 1.61-4(d),5 1.175-3,6 Income Tax Regs.
A corporation that cultivates, operates, or manages a farm for
profit is a farmer. Maple Leaf Farms, Inc. v. Commissioner,
supra at 447; sec. 1.61-4(d), Income Tax Regs.
Petitioner did not cultivate, operate, or manage a farm for
profit as an owner or tenant. Ward regularly visited farms and
gave advice and financial help to farmers. However, neither
petitioner nor Ward operated a farm as an owner or a tenant.
Petitioner's business was merchandise sales, not farming.
Petitioner contends that it was as involved in farming as
any Hastings farmer. Petitioner also contends that it bore a
5 Sec. 1.61-4(d), Income Tax Regs., provides in part:
(d) Definition of "farm". As used in this
section, the term "farm" embraces the farm in the
ordinarily accepted sense, and includes stock, dairy,
poultry, fruit, and truck farms; also plantations,
ranches, and all land used for farming operations. All
individuals, partnerships, or corporations that
cultivate, operate, or manage farms for gain or profit,
either as owners or tenants, are designated as farmers.
* * *
6 Sec. 1.175-3, Income Tax Regs., provides in part:
A taxpayer is engaged in the business of farming if he
cultivates, operates, or manages a farm for gain or
profit, either as owner or tenant. For the purpose of
section 175, a taxpayer who receives a rental (either
in cash or in kind) which is based upon farm production
is engaged in the business of farming. However, a
taxpayer who receives a fixed rental (without reference
to production) is engaged in the business of farming
only if he participates to a material extent in the
operation or management of the farm. * * *
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