Stanley M. Kurzet and Anne L. Kurzet - Page 43

                                              - 43 -                                                  
            petitioners' actually incurred losses from their timber farm far                          
            in excess of appreciation that occurred in the value of the                               
            timber.  We disagree.  Respondent's calculations are flawed and                           
            ignore the credible evidence as to the value of the timber and                            
            other improvements to and assets located on the timber farm.                              
                  (8) Financial status of taxpayers:  Petitioners are wealthy                         
            and, during the years in issue, could well afford to wait to                              
            realize expected profits from their timber farm until the prices                          
            for cut timber and the market make it appropriate to maximize                             
            those profits.                                                                            
                  (9) Personal pleasure or recreation:  None.                                         


                  In summary, the evidence indicates that petitioners in 1985                         
            purchased an existing, mature timber farm, that petitioners                               
            immediately and in each year undertook substantial activity, and                          
            incurred substantial expenses, to protect and enhance their                               
            timber farm business, that petitioners' activity in connection                            
            with the timber farm constituted an existing for-profit trade or                          
            business, and that petitioners' use of the timber farm did not                            
            constitute a hobby, personal recreation, nor a personal,                                  
            nonbusiness activity.                                                                     
                  At the time of purchase in 1985 and during each of the                              
            years in issue (namely, 1987 through 1989), petitioners intended                          
            to, and did, hold and manage the timber farm as a for-profit                              
            business activity.  Petitioners' ownership and operation of the                           




Page:  Previous  33  34  35  36  37  38  39  40  41  42  43  44  45  46  47  48  49  50  51  52  Next

Last modified: May 25, 2011