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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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