Gary G. and Linda J. Hart - Page 6

                                        - 6 -                                          

               The stripping room (or more appropriately in petitioners'               
          case, the "stripping area") is located in the center of the                  
          Tobacco Barn.  It is 12 feet wide and 24 feet long.  It consists             
          of plywood stacked to form a work bench, a small machine used to             
          strip tobacco, and a hydraulic press used to bale tobacco.  The              
          stripping area is not always enclosed.  Only in cold weather do              
          petitioners enclose the stripping area, using plastic sheeting               
          and plywood to provide shelter.  It takes about a day to enclose             
          the stripping area.                                                          
               The Tobacco Barn is generally not used in petitioners'                  
          tobacco business between March and July.  However, in some years,            
          a limited amount of tobacco may remain hanging in the Tobacco                
          Barn beyond February --for example when petitioners produce                  
          tobacco in excess of their sales quota.  Petitioners occasionally            
          use the Tobacco Barn to store farm equipment.                                
               Petitioners own two other barns.  These other barns are                 
          referred to by petitioners as "combination barns".  Combination              
          barns are of a sturdier design than the Tobacco Barn and may be              
          used to cure and process tobacco, as well as house cattle or                 
          store grain.                                                                 
               On their 1994 Federal income tax return, petitioners                    
          reported the cost of the Tobacco Barn as $16,730 and elected to              
          deduct $6,754 of that amount under section 179.  Petitioners                 
          claimed depreciation for the balance of the cost of the Tobacco              

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