8
of such intention does not compel a finding that petitioner was a
dealer with respect to that property in the absence of evidence
that petitioner held the property primarily for sale to customers
in the ordinary course of his business. Howell v. Commissioner,
57 T.C. 546, 555 (1972); Ayling v. Commissioner, 32 T.C. 704, 709
(1959).
Petitioners owned the Eden Prairie and Pillsbury for 4 and 6
years, respectively, prior to their sale. Petitioner owned the
St. Paul property in excess of 10 years. We find that the
duration of ownership supports respondent's contention that
petitioner was holding these properties for investment.
In addition, petitioner's sales were isolated. In the 3
years in issue, petitioner sold only two properties, including
the property that petitioner Nancy Nadeau purchased prior to
petitioners' marriage. The infrequency of petitioner's sales
indicates that he held the properties for investment rather than
for sale in the ordinary course of his business. See, e.g.,
United States v. Winthrop, supra (456 sales over 19 years was
evidence that taxpayer held properties for sale); Ayling v.
Commissioner, supra (13 sales over 4 years did not establish
frequency of sales characteristic of a business).
Petitioner's sale in 1990 generated profits of approximately
$27,000. This amount is substantial in comparison with
petitioner's other net income of $15,059.53. This single
substantial sale is not enough, however, to support the
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