Char-Lil Corporation - Page 20

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             section 1231(b)(1)(B), which contains nearly identical                   
             language.  See Cottle v. Commissioner, 89 T.C. 467, 485-486              
             (1987).                                                                  
                  In deciding whether a particular piece of real                      
             property is held for sale to customers in the ordinary                   
             course of a taxpayer's trade or business, courts have                    
             considered the following factors:                                        

                  (1) the nature and purpose of the acquisition of                    
                  the property and the duration of the ownership;                     
                  (2) the extent and nature of the taxpayer's                         
                  efforts to sell the property; (3) the number,                       
                  extent, continuity and substantiality of the                        
                  sales; (4) the extent of subdividing, developing,                   
                  and advertising to increase sales; (5) the use of                   
                  a business office for the sale of the property;                     
                  (6) the character and degree of supervision or                      
                  control exercised by the taxpayer over any                          
                  representative selling the property; and (7) the                    
                  time and effort the taxpayer habitually devoted                     
                  to the sales. * * * [United States v. Winthrop,                     
                  417 F.2d 905, 910 (5th Cir. 1969).]                                 
                  See also Major Realty Corp. and Subsidiaries                        
                  v. Commissioner, 749 F.2d 1483, 1488 (11th Cir.                     
                  1985), affg. and revg. on another issue a                           
                  Memorandum Opinion of this Court; Daugherty v.                      
                  Commissioner, 78 T.C. at 629.  * * *                                

             Cottle v. Commissioner, supra at 487 (fn. ref. omitted);                 
             see Thrift v. Commissioner, 15 T.C. 366, 369 (1950).                     
                  With respect to each of the years in issue, if the                  
             interest on petitioner's purchase money obligations is                   
             treated as "rents" and, thus, is included in "adjusted                   
             income from rents", as defined by section 543(b)(3), then                




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