Floyd L. Garrett and Dorothy G. Garrett - Page 20

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          in issue other than the collection sold in 1989, which Mr.                  
          Garrett admitted was before he decided to enter the muscle car              
          business.  Rather, the record indicates that Mr. Garrett                    
          considered the operation of the muscle car museum essential to              
          his muscle car business.  Mr. Garrett testified that it was his             
          intention to make a profit from his muscle car business in only             
          two ways:  (1) From museum ticket and souvenir sales generated by           
          the exhibition of the museum's muscle car collection; and (2)               
          from the sale of some muscle cars displayed in the museum.                  
          Consistent with this statement of intention, the majority of the            
          evidence presented by petitioners on this issue involved                    
          testimony related to Mr. Garrett's plans for a muscle car museum.           
          Furthermore, Mr. Garrett testified that no part of his muscle car           
          business would be viable if the planned museum is unsuccessful.             
          Therefore, the facts of this case do not reasonably support a               
          characterization of petitioners' undertakings as separate                   
          activities.  Rather, we find that petitioners' business purpose             
          would be served by carrying out the various activities as a                 
          single enterprise, the muscle car museum.                                   
               Petitioners' prospective muscle car business--the muscle car           
          museum--could not function as a going concern until such time as            
          it was open to the public.  Walsh v. Commissioner, T.C. Memo.               
          1988-242, affd. without published opinion 884 F.2d 1393 (6th Cir.           
          1989)(holding that a restaurant could not function as a going               
          concern until it was open to the public).  Mr. Garrett testified            

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