- 7 - farming equipment, such as a hay rake and a baler. Finally, the State court found that the partnership owned no land but that the value of certain fixtures and improvements to land occupied by the partnership was $144,234. The State court ordered all partnership assets remaining after payment of partnership liabilities, including cash, to be distributed to James' estate "to repay on a dollar-for-dollar basis to the extent of such assets the contributions to capital made by James R. Tobias." The State court allocated none of the remaining partnership assets to Darwin. It is implicit in the order of the State court that the proceeds from the sale of the equipment would not equal James' disproportionately large capital contributions. From 1965 until 1992, James treated the animal farm business as a sole proprietorship and reported the entire income from the business on his individual tax returns. After the State court found that the business was a partnership, James caused the partnership to file returns for the years 1990 through 1993. Darwin did not participate in the preparation or filing of the partnership returns.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