- 9 - doing business as the general partnership, “all of the property conveyed to * * * [the QTIP trustee] by an Executor’s General Bill of Sale of even date conveying all of the property owned and operated by” Mr. Forbes, doing business as the sole proprietorship. The assets so conveyed are described in language identical to that contained in the general bill of sale from the executor to the QTIP trustee, specifically including “All growing crops and timber on land owned by” the limited partnership. On its books, the general partnership recorded receipt of all the timber and growing crops on the Forbes land. The pecan trees as well as the pecan nuts were treated as growing crops. In consideration of all the sole proprietorship assets, the general partnership agreed to pay the QTIP trustee $550,742, less a $100,000 offsetting credit for net liabilities that the Forbes estate owed the general partnership. Accordingly, the general partnership gave the QTIP trustee a promissory note for $450,742. The purchase price was the result of arm’s-length bargaining and was based on values reflected on the Forbes estate tax return (which in turn were based on a 1985 independent appraisal), with certain adjustments, including the addition of certain amounts received or receivable under the timber contract with Tolleson Lumber.4 4 Although the record is sketchy in this regard, the evidence does not indicate, and respondent has not suggested, (continued...)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