Estate of Virginia A. Bigelow, Deceased, Franklin T. Bigelow, Jr., Executor - Page 15

                                       - 15 -                                         
          income and $40,578 of expenses for the Padaro Lane property                 
          during that year.                                                           
               On her 1994 return, decedent reported adjusted gross income            
          of $10,284.  On Schedule E, decedent reported $42,000 of rental             
          income and $38,193 of expenses for the Padaro Lane property.                
               On her 1995-97 returns, decedent reported adjusted gross               
          income of $14,918 in 1995, $38,880 in 1996, and $469 in 1997.               
          Decedent reported her shares of partnership income or loss on               
          those returns.                                                              
               2.   Partnership Returns for 1994-97                                   
               The partnership reported no income or expenses for the                 
          Padaro Lane property on its 1994 Form 1065, U.S. Partnership                
          Return of Income (the partnership’s 1994 return).  The                      
          partnership’s balance sheets included in the 1995-97 returns                
          reported the Great Western Bank loan as a liability.  None of the           
          partners’ Schedules K-1, Partner’s Share of Income, Credits,                
          Deductions, Etc., accurately reflect the partners’ capital                  
          accounts; e.g., decedent’s capital account as reported on the               
          Schedules K-1 never shows that decedent’s trust contributed the             
          Padaro Lane property.  The partnership reported income or loss              
          and decedent’s distributive shares of income and losses on its              
          returns for 1995-97 as follows:                                             









Page:  Previous  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  Next

Last modified: May 25, 2011