- 13 -
Each of the remaining factors have varying degrees of
relevancy depending on the particular factual situation, and all
may not be applicable to any given case. Suburban Realty Co. v.
United States, supra at 178-180; Morley v. Commissioner, 87 T.C.
1206, 1213 (1986); S & H, Inc. v. Commissioner, 78 T.C. 234, 243-
244 (1982).
We must now apply the analysis set forth above to the facts
and circumstances of the instant case. We must decide whether
petitioner was engaged in a trade or business and, if necessary,
whether petitioner was holding the properties at issue primarily
for sale in that trade or business and whether petitioner's
contemplated sales were "ordinary" in the course of that trade or
business.
Petitioner must engage in a sufficient amount of activity to
be considered engaged in a trade or business; however, "The
precise quantum necessary will be difficult to establish, and
cases close to the line on this issue will arise." Suburban
Realty Co. v. United States, supra at 181. We are mindful that
the most important factor to consider regarding this issue, as
stated by the Court of Appeals, is the frequency and
substantiality of sales. Bramblett v. Commissioner, supra at
531; Suburban Realty Co. v. United States, supra at 178;
Biedenharn Realty Co. v. United States, supra at 416. On the
basis of all the facts and circumstances, we find that
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011