- 4 - Petitioners resided in Cherry Hill, New Jersey, at the time the petition was filed. Petitioners are husband and wife, who made joint returns of income for each of the years in question. Petitioner husband (petitioner) is a successful businessman. In 1983, petitioner opened a limousine leasing business under the name "Scott's Limo & Leasing" (Scott's Limo). Scott's Limo was conducted as a sole proprietorship. Exotic automobiles are state-of-the-art, high technology vehicles with unique design features or equipment. In 1987 and 1988, petitioner purchased the following exotic automobiles (the exotic automobiles) to be exhibited at car shows: Year of Purchase Type Cost 1987 Lotus Pantera $63,000 1987 Lotus Espirit $48,000 1988 Gemballa FerrariTestarossa $290,453 During the years in issue, Scott's Limo displayed the exotic automobiles at car shows and earned fees for doing so. For 1987 through 1990, Scott's Limo received gross income with respect to the exotic automobiles as follows: Year Gross Income 1987 $8,555 1988 38,120 1989 24,295 1990 25,760Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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