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selling commercial real estate property" and "an integral
part of Petitioner's business was to finance the sale of
the commercial real estate property which it sold to its
customers." According to petitioner, it is "a bona fide
operating company" that is "outside of the intent of the
penalizing effect of the personal holding company tax."
Petitioner argues that its principal officer, Mr. McKelvey,
developed customers by first renting a property to the
prospective buyer. Petitioner also argues that "the
depressed commercial real [estate] market in Lawton,
Oklahoma during the late 1980's and early 1990's"
substantially slowed petitioner's business activity by
requiring petitioner to hold properties until market
conditions improved in the mid 1990's. After making a
property-by-property analysis, petitioner argues that it
is "a real estate operating company acquiring commercial
properties, improving those properties and selling those
properties to buyers which it has located and nurtured as
customers." Finally, petitioner argues that it has
consistently engaged in the business of "acquiring,
improving, leasing and selling property to its established
customers."
Petitioner argues that if it had held all of the
property as rental property, "then clearly its rental
income would have exceeded 50% of its adjusted ordinary
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