Richard L. Matz and Linda A. Matz, Deceased, Richard Lee Matz, Jr., Independent Executor - Page 12

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            See also Suburban Realty Co. v. United States, supra at 178.                                
                  In answering these questions, the Court of Appeals has                                
            instructed that seven factors should be considered: (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.  Bramblett v. Commissioner, supra at 530-531; Suburban                               
            Realty Co. v. United States, supra at 178; Biedenharn Realty Co.                            
            v. United States, supra at 415; United States v. Winthrop, supra                            
            at 910.  The frequency and substantiality of sales is the most                              
            important factor.  Bramblett v. Commissioner, supra at 531;                                 
            Suburban Realty Co. v. United States, supra at 178; Biedenharn                              
            Realty Co. v. United States, supra at 416.  This is so because                              
                  A taxpayer who engages in frequent and substantial                                    
                  sales is almost inevitably engaged in the real estate                                 
                  business.  The frequency and substantiality of sales                                  
                  are highly probative on the issue of holding purpose                                  
                  because the presence of frequent sales ordinarily                                     
                  belies the contention that property is being held "for                                
                  investment" rather than "for sale."  And the frequency                                
                  of sales may often be a key factor in determining the                                 
                  "ordinariness" question.  [Suburban Realty Co. v.                                     
                  United States, supra at 178.]                                                         




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