Estate of Ona E. Hendrickson - Page 11



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          available for decedent's gifts to her three children during that             
          year that was not used to offset the land gifts.                             
          Income and Losses From Family Farm Operations                                
               Although decedent gave almost all her interest in the family            
          farm land to her children (and their spouses) during the period              
          1979-93, the taxable income and loss resulting from the                      
          operations (or, in some years, the rental) of the family farm                
          during that period were reported on the Federal fiduciary income             
          tax returns filed by Garry's estate.5  These returns reported the            
          following amounts of net income (or loss) from the family farm:              

                       Fiscal year ending     Net family farm                          
                          2/28 or 2/29        income (or loss)                         
                              1980          ($35,702)                                  
                              1981          (166,606)                                  
                              1982          (177,264)                                  
                              1983          49,324                                     
                              1984          5,157                                      
                              1985          1,833                                      
                              1986          (3,612)                                    
                              1987          (27,906)                                   
                              1988          (23,796)                                   
                              1989          (22,166)                                   
                              1990          (28,204)                                   
                              1991          (17,402)                                   
                              1992          (9,425)                                    
                              1993          (12,807)                                   
                              1994             (13,001)                                
                           Total            (481,577)                                  



               5 For the fiscal years ending in 1985 and 1986, almost all              
          family farm income reported by Garry’s estate was rental income.             
          For the fiscal years ending in 1987-93, the estate reported its              
          farm income simply as “other income”, but it also reported that              
          the principal activity of the family farm was “land rental”.  For            
          the fiscal year ending in 1994, the estate reported its farm                 
          income on Form 4835, Farm Rental Income and Expenses.                        



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Last modified: May 25, 2011