Vincent E. & Judy Bot - Page 8

                                        - 8 -                                         

          "but to those obligations that existed within the overall scheme            
          of the farming operations which were to take place" on Mrs. Bot's           
          property.  Mizell v. Commissioner, T.C. Memo. 1995-571.                     
          (Emphasis supplied.)  These include Mrs. Bot's obligations as a             
          longstanding participant in the farming business as well as the             
          "general understanding between * * * [Mr. Bot and Mrs. Bot] with            
          respect to the production of agricultural products".  Id.  Viewed           
          in this light, the arrangement between Mr. and Mrs. Bot provided,           
          or contemplated, that Mrs. Bot materially participate in the                
          production of agricultural commodities on the farmland.                     
               Mr. Bot claimed he made all the management decisions and,              
          despite 38 years of history to the contrary, asserted that he               
          could operate his farm without help from his wife.  Under these             
          circumstances, we are not required to accept the self-serving               
          testimony of Mr. Bot as gospel.  Tokarski v. Commissioner, 87               
          T.C. 74, 77 (1986).  Although petitioners contend that the                  
          purported oral lease agreement did not require Mrs. Bot to                  
          materially participate in the farming operations, the record                
          supports a finding that Mrs. Bot played a material role in the              
          production of agricultural commodities under an arrangement with            
          her husband.                                                                
               For about 38 years through the taxable years at issue, Mrs.            
          Bot performed general farming services on the farm on a regular             
          and intermittent basis, as we detailed in the findings of fact.             

Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011