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B. Wolf Creek Farm
On December 29, 1993, Wolf Creek Farm was incorporated under
the laws of the State of South Dakota.2 Wolf Creek Farm was
organized primarily (1) to buy, distribute, sell, lease, and deal
in all kinds of farmland and real estate, and (2) to carry on the
business of farming. On January 27, 1994, Mr. Tschetter conveyed
the homestead, including the farmhouse, to Wolf Creek Farm.
Mr. Tschetter has owned 50 percent of the common stock, and
100 percent of the preferred stock, of Wolf Creek Farm since its
incorporation. His mother, Anna Tschetter, owned the remaining
50 percent of the common stock. During the taxable years at
issue, Mr. Tschetter was president, treasurer, and a director,
and his mother was vice president, secretary, and a director, of
Wolf Creek Farm.
The first meeting of the board of directors of Wolf Creek
Farm was held on December 30, 1993. At that first meeting, the
directors adopted a medical reimbursement plan covering all
“employees and officers executing management responsibilities”
and their spouses and dependents. The medical reimbursement plan
provides for the payment of all medical care costs that would be
“deductible on Form 1040” (before considering limitations).
2Douglas Bleeker, counsel for petitioners, prepared the
articles of incorporation, bylaws, minutes of meetings, and other
corporate documents for Wolf Creek Farm.
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Last modified: May 25, 2011