Andris Zarins and Zigrida A. Zarins - Page 7




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               Petitioners deducted the following amounts of farm expenses            
          for tax years 1993 to 1998:                                                 
                                                                                 
                           1993  1994      1995   1996       1997     1998            
             Seeds and    132       354      423    1,320     638      -–             
             plants                                                                   
            Fertilizers     352     --       –-        19       2      -–             

               Labor         –-     80      150        –-      –-      –-             
                                                                                     
            Custom hire     613 10,721     1,107       –-      –-      –-             
             (machine                                                                 
               work)                                                                  
            Advertising      –-     --       –-        –-      –-     688             
           Depreciation1  3,331   3,550    3,243    2,268     718     483             
           Car and truck    896     870    1,200    1,307   1,242     383             
             Mortgage                                                                 
             interest        –-   3,955    3,556    3,533   4,030      –-             
             Gasoline     1,456   2,595    1,844    1,781   1,359     709             
            Repairs and                                                               
            maintenance      –-   3,325     963       133     215  1,532              
             Insurance      362     388     429       451     916     --              
             Supplies     1,531   1,756    3,235    1,149   4,427     274             
               Taxes        433     351     390       459     487      –-             
             Utilities      400     450     520       560     560      –-             
           Machine parts     –-    –-        –-       905      –-      –-             
             Legal fee       –-     –-       –-        40      –-      –-             

               1  Petitioners depreciated a truck, a mulch sweeper, a                 
          generator, a compressor, a pump, and chain saws.                            










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