Margaret Hancock - Page 17

               We disagree.  Petitioner sold the lots by putting "for sale"            
          signs on some of the lots and using her real estate contacts.                
          She also paid real estate commissions of about $40,000 from 1987             
          to 1992.  Petitioner begin selling lots in 1987 and sold 25                  
          percent of them before 1991 when the market rebounded, 75 percent            
          of them before the years in issue, and all but one of them in                
          less than 10 years.  The fact that petitioner sold the lots                  
          without using an outside agent, without having her own real                  
          estate sales office, and without incurring advertising expenses              
          or broker's fees suggests that petitioner devoted enough time and            
          effort to selling the lots.  See United States v. Winthrop, 417              
          F.2d at 912, in which the U.S. Court of Appeals for the Fifth                
          Circuit stated:                                                              
               While advertising, solicitation and staff are the usual                 
               components of a business, they are not a necessary                      
               element in either the concept or the pragmatics of                      
               selling.  Here it is evident that the taxpayer was                      
               quite successful in selling the lots without the                        
               assistance of these usual props.  It is not necessary                   
               that customers be actively and fervently and                            
               frenetically sought. * * *                                              
               Respondent contends that the fact that petitioner did not               
          improve the 48 lots she received from Hancock Enterprises shows              
          that she held them for investment.  We disagree.  Petitioner and             
          her husband's corporation, Hancock Enterprises, fully developed              
          the lots before petitioner acquired them.  Petitioner paid real              
          estate taxes, maintained liability insurance, and made sure that             
          the lots were kept clean, the grass was cut, and the shrubs were             

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