Jerrold E. and Helen C. Arbini - Page 22

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               The Los Angeles and Chicago newspaper collection contained             
          33,710 issues, all in firmly bound volumes.20  We believe that              
          bound volumes of newspapers containing thousands of issues would            
          generally not be sold to individual purchasers interested in a              
          specific issue or comic strip; they would most commonly be sold             
          to newspaper collectors, newspaper dealers, and others interested           
          in obtaining a newspaper collection.21  If petitioner and Mr.               
          Fagliano intended to sell individual issues, this would not be a            
          “subsequent resale” of the newspapers because the items being               
          sold would be individual issues and comic strips, not the bound             
          volumes of newspapers.  The individual issues contained in the              
          Los Angeles and Chicago newspapers could not readily be sold to             
          purchasers interested in birthday, anniversary, and significant             
          event newspapers because the individual issues were not ready for           
          immediate sale.  See Akers v. Commissioner, supra at 247.  The              

               20Neither party established the number of bound volumes                
          contained in the collection or which specific individual issues             
          were contained in each volume.  At trial, Mr. Verb provided a               
          rough estimate of approximately 50 issues in each bound volume;             
          however, he also testified that one bound volume contains 3                 
          months of issues.  In his appraisal, respondent’s expert, Timothy           
          Hughes (Mr. Hughes), stated that bound volumes of newspapers from           
          the post 1940's might contain as few as 15 days of newspapers,              
          while bound volumes of newspapers from the 18th century contain             
          as many as one year of newspapers.  In the first stipulation of             
          facts, some of the Los Angeles and Chicago newspapers were                  
          identified as being single issue volumes, however, neither party            
          addressed this point.                                                       
               21We note that petitioners do not dispute that neither                 
          petitioner nor Mr. Fagliano was a dealer in rare or early                   
          newspapers at the time the Montana newspapers were purchased.               

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