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as McCandless, Killingsworth, Webb, and Bordelon (sometimes
collectively referred to as the 1987 properties) in the amounts
of $90,626, $179,765, $72,069 and $689,703, respectively, are
ordinary or capital. This turns on whether petitioner was
engaged in a trade or business. We hold petitioner was not
engaged in a trade or business and that the losses are capital.
(4) Whether for 1987 a $59,492 loss petitioners sustained
relating to the Saddle Mountain mineral interest (Saddle
Mountain) is ordinary or capital. We hold it is ordinary. (5)
Whether for 1989 a $1,643,900 loss petitioners sustained relating
to a parcel of real property known as Hidden Valley is ordinary
or capital. This turns on whether petitioner was engaged in a
trade or business. We hold petitioner was not engaged in a trade
or business and that the loss is capital.
Some of the facts have been stipulated and are so found.
The stipulated facts and the accompanying exhibits are
incorporated herein by this reference. At the time the petition
in this case was filed, petitioners resided in Austin, Texas.
For convenience, we combine our findings of fact with our
opinion under each separate issue heading.2
2 We have considered each of the parties' arguments and,
to the extent that they are not discussed herein, find them to be
unconvincing.
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