- 8 -
3. Petitioners’ 1993, 1994 and 1995 Tax Years
a. Leases Between Petitioners and Fultz Farms
For 1993, 1994, and 1995, petitioners both executed separate
lease agreements with Fultz Farms. These leases reflected Mr.
Fultz and Mrs. Fultz in their individual capacities as lessors
and Fultz Farms as lessee.
The leases collectively provided that petitioners would
receive rent from Fultz Farms for a house, farm land, and MCP
shares. Because of the parties’ partial settlement, only the MCP
shares are relevant to this opinion. The lease rate on MCP
shares “rented” from petitioners was 50 cents per bushel of corn
delivered to MCP. MCP was not a party to the lease arrangement,
and Fultz Farms was neither a shareholder nor a member of MCP.
Fultz Farms had no contractual relationship with MCP with respect
to the value-added payments.
In 1993, 1994, and 1995, petitioners received value-added
payments from MCP by check. MCP issued the checks to petitioners
either jointly or individually. When petitioners received the
checks for value-added payments from MCP in one or both of their
names, they deposited the checks within a day or two, and Mr.
Fultz then wrote out personal checks to Fultz Farms for the same
amounts.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011