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position in this case. Petitioner reported its sales of
real property as "property used in the trade or business",
as defined by section 1231(b), and reported the sales as
"installment [sales]" as defined by section 453(b). Thus,
petitioner took the position on each of its returns for the
years in issue that the properties were not held primarily
for sale to customers in the ordinary course of a trade or
business. Respondent argues that petitioner's sales of
property have been erratic, that the average holding period
of petitioner's properties is 8 years, and that only one
property was held for less than 1 year.
Respondent also argues that petitioner's dividends for
the year do not equal or exceed the amount by which the
nonrent personal holding company income for the year
exceeds 10 percent of the ordinary gross income, as
required by section 543(a)(2). For example, respondent
notes that petitioner's ordinary gross income for 1989 is
$189,941. Respondent argues that "based on the factual
background of this case and testimony offered at trial,
petitioner cannot establish that its personal holding
company income is less than $18,994."
We agree with respondent that petitioner has not shown
that a sufficient number of its purchase money obligations
are debts that "represent the price for which real property
held primarily for sale to customers in the ordinary course
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