- 13 -
Curtis Jerry Lynn Coleen Total
1996
Payments on land $121,347 $121,347 -0- -0- $242,694
Repairs 2,723 2,723 $1,816 $1,816 9,078
Supplies 102 102 68 68 340
Depreciation 296 296 197 197 986
Utilities 734 734 490 490 2,448
Medical insurance 1,780 1,780 1,187 1,187 5,934
Total 126,982 126,982 3,758 3,758 261,480
1997
Payments on land 64,494 64,494 -0- -0- 128,988
Repairs 212 212 141 141 706
Supplies 407 407 271 271 1,356
Depreciation 277 277 184 184 922
Utilities 708 708 472 472 2,360
Medical insurance 1,304 1,304 870 870 4,348
Total 67,402 67,402 1,938 1,938 138,680
The agent reclassified the depreciation, as well as the
interest paid by the Bitker partnership on petitioners’ personal
mortgages on their farmland (the mortgages are on land that the
partnership farms), as rental expenses on petitioners’ Schedules E.
Respondent issued notices of deficiency to petitioners for
1996 and 1997. The statements of changes attached to the notices
reflect the following adjustments:
12/31/96 12/31/97
Curtis & Lynn Bitker
Capital gain or loss $473,015 $89,312
Exemptions 14,076 1,590
Itemized deductions -- 2,171
K-1 Ray Bitker & Sons (C) 60,453 33,046
K-1 Ray Bitker & Sons (L) 40,302 22,031
Schedule E rental expense (101,453) (25,000)
Schedule F Curtis (947) 45,387
Schedule F Lynn (2,645) --
SE AGI adjustment 221 (5,332)
Self-employ health (1,762) (1,619)
Total adjustments 481,260 161,586
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011