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Mr. Forbes, Walter, and Betty never treated or reported the
timber, crops, or other improvements as having been transferred
to the limited partnership for economic, financial, income tax,
or other purposes.
Creation of the General Partnership
On December 20, 1983, Walter and Betty formed a general
partnership known as Malatchie Farms (the general partnership).
They each owned a 50-percent interest in the general partnership,
with Walter designated as managing partner. As stated in the
partnership agreement, the purpose of the general partnership was
“to conduct farming operations in Houston and Macon Counties,
Georgia, and in such other places as the parties may from time to
time agree” and “to engage in the business of wildlife
preservation, farming and other similar activities”.
Timber Contract
On August 2, 1984, 18 days before Mr. Forbes died, Walter
executed a “Timber Deed” on behalf of the general partnership.
The timber deed indicates that the general partnership was
thereby selling to Tolleson Lumber Co., Inc. (Tolleson Lumber),
for $21 per ton “all merchantable pine timber” on a portion of
the Forbes’ land. The timber deed provided Tolleson Lumber 18
months to cut and remove the timber.
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Last modified: May 25, 2011