- 13 - Year Income1 Expenses2 Profit (Loss) 1996 $29,967 $190,053 ($160,086) 1997 46,890 193,053 (146,163) 1998 61,698 220,154 (158,456) 1999 44,621 210,005 (165,384) 1 In addition to livestock sales, includes tobacco allotment income and income from the rental of houses located on the Maple Row properties. The latter income was reported on the “Other income” line of the Schedules F for 1996 to 1999 as follows: Year Other Income - Schedule F 1996 $8,506 1997 6,903 1998 9,906 1999 9,720 2 Includes amounts reported by petitioners on Schedules F for 1996 to 1999 as mortgage interest, taxes, depreciation, and conservation expenses as follows: Mortgage Conservation Year Interest Taxes Depreciation Expenses 1996 $56,627 $15,982 $25,233 –- 1997 61,413 11,537 22,939 –- 1998 57,454 12,309 25,860 -- 1999 54,861 12,172 27,318 $8,061 Petitioners also owned and operated a shopping center in Sumner County, Tennessee, called “Maple Row Center” (MRC) during the years in issue. MRC’s several retail spaces were leased to tenants, and day-to-day operations were managed by a property manager. MRC was nearly breaking even when petitioners purchased it in 1987, and it was operating at a slight profit by the time of trial. In the notice of deficiency, respondent determined that the farming activities reflected on petitioners’ Schedules F for the years in issue were not activities engaged in for profit and that the reported farm losses therefrom should be disallowed underPage: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011