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of business: (a) The frequency and regularity of sales; (b) the
substantiality of sales; (c) the nature and extent of the
taxpayer's business; (d) the purpose for which the taxpayer
acquired and held the property before sale; (e) the extent of the
taxpayer's sales efforts by advertising or otherwise; and (f) the
extent of improvements to the property made by the taxpayer.
Byram v. United States, 705 F.2d 1418, 1424 (5th Cir. 1983);
United States v. Winthrop, 417 F.2d 905, 910 (5th Cir. 1969);
Ross v. Commissioner, 227 F.2d 265 (5th Cir. 1955), revg. T.C.
Memo. 1954-177; Goldberg v. Commissioner; 223 F.2d 709 (5th Cir.
1955), revg. 22 T.C. 533 (1954); Guardian Indus. Corp. v.
Commissioner, 97 T.C. 308, 316-317 (1991), affd. without
published opinion 21 F.3d 427 (6th Cir. 1994).
Before the years at issue, petitioner husband sold
properties regularly and frequently. For example, he sold 16 of
the 17 properties he acquired personally or from Americana in
earlier years. Petitioner husband actively advertised the houses
for sale and made substantial efforts to sell them. See Norris
v. Commissioner, T.C. Memo. 1986-151 (taxpayer's extensive
solicitation and advertising efforts and use of time and energy
for real estate pursuits show that real estate was not held for
investment). Petitioner husband made necessary repairs to keep
the houses in saleable condition. See Norris v. Commissioner,
supra. These factors suggest that petitioner husband held these
houses for sale to customers.
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