Richard L. Matz and Linda A. Matz, Deceased, Richard Lee Matz, Jr., Independent Executor - Page 16

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            Petitioner further testified that he attempted to quickly resell                            
            certain properties by, on the day of closing, putting up a sign                             
            and contacting other people to buy it.  We accept that the                                  
            Austin, Texas, real estate market was very active at that time,                             
            and that petitioner purchased certain properties with the intent                            
            to resell them immediately.  We further accept that petitioner's                            
            intention to resell was thwarted by a sudden and dramatic                                   
            downward turn in the real estate market.  This, however, does not                           
            change our analysis, in light of the guidance provided by the                               
            Court of Appeals for the Fifth Circuit, that this record of                                 
            frequency and substantiality does not rise to the necessary level                           
            to reach the conclusion that petitioner was engaged in a trade or                           
            business.  See Bramblett v. Commissioner, 960 F.2d at 531.                                  
                  On the basis of our reasoning above, we need not reach the                            
            remaining two questions which the Court of Appeals directs us to                            
            consider.  Accordingly, since petitioners were not engaged in a                             
            trade or business, the losses sustained on the 1987 properties                              
            were long-term capital losses.                                                              
            Issue 4.  Saddle Mountain Mineral Interest                                                  
                  Respondent determined that the $59,492 loss petitioners                               
            sustained with respect to Saddle Mountain in 1987 is a long-term                            
            capital loss.  Petitioners assert that it is an ordinary loss.                              
                  On July 3, 1984, petitioner acquired Saddle Mountain, which                           
            was located in Grant County, Washington.  At that time, the Shell                           





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