James G. and Linda C. Jaroff - Page 5

                                        - 5 -                                         
               Petitioners attached to their 1995 income tax return, as               
          filed on October 18, 1996, a Schedule F and reported a net loss             
          of $46,395 from the Hoyt cattle operation.  The loss reflected              
          gross income of $87,486 less total expenses of $133,881.                    
          Expenses included $46,395 in depreciation and section 179                   
          expenses and $87,486 in “1994 Sharecrop Bd Expenses”.  In                   
          addition, petitioners reported a net $3 loss from the sale of               
          breeding cattle on a Form 4797, Sales of Business Property,                 
          reflecting a gross sale price for the cattle of $178,500 less a             
          cost basis of $317,733 (less $139,230 in depreciation).                     
          Petitioners used the $46,395 in losses to offset in part the                
          $88,161 in adjusted gross income they reported in 1995, and                 
          therefore they claimed a refund of $6,508 that was withheld from            
          their earnings from employment during the year.                             
               Petitioners’ 1994 and 1995 income tax returns were filed               
          after they received extensions of the filing due dates.  For                
          1994, petitioners filed a Form 4868, Application for Automatic              
          Extension of Time to File U.S. Individual Income Tax Return, and            
          received an automatic 4-month extension from the April 15 filing            
          date.  On August 17, 1995, petitioners submitted a Form 2688,               
          Application for Additional Extension of Time to File U.S.                   
          Individual Income Tax Return, and received an extended filing               
          date of October 16, 1995.  Petitioners filed their 1994 return on           
          October 20, 1995.                                                           






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011