- 8 - The parties stipulated that Mr. Hennen used the land rented from Mrs. Hennen in the farming operations to produce agricultural commodities such as livestock and crops. With respect to whether under the arrangement Mrs. Hennen was to materially participate in the farming operations, we look not only to the obligations imposed upon Mrs. Hennen by the oral lease, "but to those obligations that existed within the overall scheme of the farming operations which were to take place" on Mrs. Hennen's property. Mizell v. Commissioner, T.C. Memo. 1995- 571. (Emphasis supplied.) These include Mrs. Hennen's obligations as a longstanding participant in the farming business as well as the "general understanding between * * * [Mr. Hennen and Mrs. Hennen] with respect to the production of agricultural products". Id. Viewed in this light, the arrangement between Mr. and Mrs. Hennen provided, or contemplated, that Mrs. Hennen materially participate in the production of agricultural commodities on the farmland. Mr. Hennen claimed he made all the management decisions. He acknowledged that he had farmed with his wife for 38 years. Mr. Hennen candidly stated in the answer to the following question: Respondent: Q And in fact, she does materially participate and help out and pull her share. Mr. Hennen: A If you are familiar with the farm, sir, that's what makes a farm successful. Everybody carries their weight.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011