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the taxpayer acquired and held the property before sale, (d) the
time and effort the taxpayer habitually devoted to the sales, (e)
the extent to which the taxpayer improved the property, and (f)
the length of time the property was held. See Byram v. United
States, 705 F.2d 1418, 1424 (5th Cir. 1983); United States v.
Winthrop, 417 F.2d 905, 910 (5th Cir. 1969); Ross v.
Commissioner, 227 F.2d 265 (5th Cir. 1955), revg. T.C. Memo.
1954-177; Goldberg v. Commissioner, 223 F.2d 709 (5th Cir. 1955),
revg. 22 T.C. 533 (1954); Guardian Indus. Corp. v. Commissioner,
97 T.C. 308, 316-317 (1991), affd. without published opinion 21
F.3d 427 (6th Cir. 1994); Cottle v. Commissioner, 89 T.C. 467,
487-488 (1987). We will apply the factors that are relevant to
this case.
2. Application of Factors
The frequency and substantiality of sales is the most
important factor. See Suburban Realty Co. v. United States, 615
F.2d 171, 176 (5th Cir. 1980); Biedenharn Realty Co. v. United
States, supra at 416; Buono v. Commissioner, 74 T.C. 187, 199
(1980). Petitioner's sales were frequent, regular, and
substantial during the years in issue. Petitioner sold 7 lots in
1987, 2 in 1989, 3 in 1990, 13 in 1991, 11 in 1992, 4 in 1993, 4
in 1994, 2 in 1995, and 1 in 1996. She sold eight lots during
the years in issue (1993-94).
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