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SCHMIDT v. ESPY

No. 93-1625.

9 F.3d 1352 (1993)

Paul G. SCHMIDT; Pauline B. Schmidt; Paul A. Schmidt; Acro Corporation, Appellants, v. Mike ESPY, Secretary, U.S. Department of Agriculture, Appellee.

United States Court of Appeals, Eighth Circuit.

Decided November 19, 1993.

Attorney(s) appearing for the Case

Harry E. McDermott, Fayetteville, AR, argued, for appellants.

Raymond Fullerton, Washington, DC, argued (J. Michael Fitzhugh, U.S. Atty., Matthew W. Fleming, Asst. U.S. Atty., and Leslie K. Lagomarcino, Office of the General Counsel, on the brief), for appellee.

Before JOHN R. GIBSON, FAGG, and BEAM, Circuit Judges.

FAGG, Circuit Judge.

Paul G. and Pauline B. Schmidt (the senior Schmidts) and their son, Paul A. Schmidt, farm in Washington County, Arkansas. The senior Schmidts built their dwelling on the farm. Nearly twenty years ago, the family formed Acro Corporation to operate the farm. The senior Schmidts and their son each own half of the corporation, which they treat as a Subchapter S corporation for tax purposes. The senior Schmidts, their son, and the corporation (collectively...

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