Estate and Income Tax Treatment of a Decedent's Farm Crops and Rents
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Authors
Morrison, Richard R. Jr.
Vacovsky, Edward C.
Issue Date
1971
Volume
4
Issue
Type
Journal Article
Language
Keywords
Alternative Title
Abstract
INTRODUCTION|This article will address itself to a problem which continues to trouble the practicing community-the proper treatment for federal estate and income tax purposes of such items as livestock, crops and crop shares (harvested and unharvested), and cash rentals in which a taxpayer had an interest at the time of his death. At the outset it should be made clear that both the estate tax treatment and the income tax treatment depend in large measure upon whether the decedent is classified as an "owner-operator" or as a "landlord". Thus, as an initial step in approaching a problem of this nature, it is necessary to determine the decedent's proper status by exploring the relevant facts concerning the character and extent of his involvement in agricultural activities prior to his death. It is not the intent of this article to examine the tests to be applied in making such a determination. However, it can be stated as a general rule that if a taxpayer, at the time of his death, was "materially participating" in the operation of his agricultural lands, he will be considered an "owner-operator", and if, at the time of his death, he was merely leasing his lands on a crop share or cash rental basis, he will be treated as "landlord." The significance of this distinction will become more apparent as the varying tax treatments are explored in the body of this article....
Description
Citation
4 Creighton L. Rev. 67 (1970-1971)
Publisher
Creighton University School of Law