- 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 NextLast modified: May 25, 2011