- 5 -
Petitioner purchased the Ross farm in 1997 for $154,000.
The improvements on the Ross farm consisted of two buildings (a
barn and a storage building) and installed drainage tile. He did
not use the barn in his farming operations but occasionally used
the storage building to store soybeans.
Petitioner purchased a 2001 Dodge Truck for $35,000 for use
in his farming activity. He used it to transport grain in
Minnesota and when traveling to Montana, Wyoming, and South
Dakota to find feeder cattle for purchase. During 2001, 2002,
and 2003, petitioner drove the truck approximately 7,000 miles
each year in his farming operations. He also has three other
vehicles that he used while conducting his farming and rental
activities.
Petitioner prepared and timely filed petitioners’ Forms
1040, U.S. Individual Income Tax Return, for 2001, 2002, and
2003, using the cash basis method of accounting.
On Schedules E, petitioners reported rental income and loss
from the rental of four houses. One house was reported as being
in South Dakota, one in Minnesota, one in Iowa, and one in Utah.
Petitioners reported a rental loss of $178 for 2001 and rental
income of $5,032 for 2002 and $5,133 for 2003.
Petitioners reported income from farming on Schedules F.
They reported a net farm loss of $29,350 for 2001 and net farm
profits of $6,219 for 2002 and $156,492 for 2003.
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