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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.
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Last modified: May 25, 2011