John Shackelford Fairbanks - Page 10

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               Petitioner has also failed to establish that any of                    
          Fairbanks' assets will appreciate in value.  Petitioner claims              
          that Fairbanks' assets are its intellectual property and not its            
          computer equipment.  At trial, petitioner claimed to have                   
          invented four devices while conducting his consulting activity.             
          Petitioner consented to discuss only one invention at trial, a              
          remote-controlled pool heating unit.  Petitioner explained that             
          he would not discuss his other three inventions because he had              
          not yet applied for patent protection.2                                     
               Petitioner estimated that his pool heating unit would earn             
          him $1 milliion in profit once it was produced and marketed.                
          Petitioner alleges that this invention alone sustains his                   
          contention that Fairbanks' intellectual property will appreciate            
          in value.                                                                   
               Petitioner, however, has failed to establish any connection            
          between his consulting activity and his inventions.  Indeed,                
          petitioner listed "consulting" as Fairbanks' principal business             
          on his Schedule C for the 1992-97 tax years.                                
               Even if we accept petitioner's claim that Fairbanks' assets            
          are its intellectual property and we further accept that                    
          petitioner's inventions are somehow connected to his consulting             
          activity, petitioner has still failed to establish that                     

          2    Petitioner applied for patent protection for the pool                  
          heating unit in February 1999, over 3 years after the year in               

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