- 41 -
established by petitioners' construction of a water reservoir on
the property in preparation to enter into the livestock
business. We disagree. The water reservoir related at least
equally to the fire risk to which existing trees on the timber
farm were exposed.
Not a single recreational or personal objective for
petitioners' large cash investment in and extensive work and
activity on the timber farm has been suggested, and on brief
respondent concedes "there appear to be no elements of
recreation, in the traditional sense," involved in petitioners’
timber farm. Not one of the factual witnesses respondent called
supported respondent's position that petitioners carried on the
timber farm as anything other than a good faith for-profit
business activity.
With regard further to specific factors typically analyzed
under section 183, we conclude as follows.
(1) Manner of conducting activity: Petitioners carried on
the timber farm activity in a businesslike manner. They worked
hard and long hours on the timber farm. They hired competent
people to manage and secure the property on a day-to-day basis.
They made necessary and significant improvements to the timber
farm. They did not use the timber farm for personal
entertainment, recreation, or retirement. They were creative
and innovative in attempting to improve the timber farm and
Page: Previous 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 NextLast modified: May 25, 2011