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Asset Description Adjusted Basis Fair Market Value
Depreciable property $53,601 $143,760
Inventory -0- 120,980
Fertilizer & lime -0- 1,360
Hay, straw, & oats -0- 7,340
Market livestock -0- 7,500
Cattle feed -0- 900
Gas & diesel -0- 1,400
Miscellaneous tools -0- 3,000
Land, building, & grain 10,000 140,180
Cash 2,600 2,600
Improvements to Craig
Seggerman’s house -0- 1,400
Accounts receivable -0- 1,440
Deficiency payments -0- 13,960
Total 66,201 445,820
Either the property that was transferred was subject to
liabilities or Seggerman Farms assumed the liabilities from
Ronald Seggerman in the amount of $402,903 as follows:
Amount of
Creditor Liability
Minonk State Bank $259,370
Ford Motor Co. 11,533
Federal Land Bank 132,000
Total 402,903
The amount of the liabilities that were transferred to Seggerman
Farms by Ronald Seggerman exceeded the adjusted basis of the
assets that he transferred to Seggerman Farms by $336,702. The
portion of this gain that was attributable to long-term capital
gain was $206,751, and the portion attributable to ordinary gain
was $129,951.
Craig Seggerman transferred the following assets to
Seggerman Farms:
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Last modified: May 25, 2011