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years as of the beginning of petitioner’s fiscal year ended July
31, 1996.
This factor favors respondent.
E. Economic Conditions
If general economic conditions are favorable, they may
downgrade the extent of the employee’s effect on the company’s
performance. Mayson Manufacturing Co. v. Commissioner, 178 F.2d
115, 119-120 (6th Cir. 1949), revg. and remanding a Memorandum
Opinion of this Court.
The record reflects the construction boom in Douglas County
from 1990 through 1996. Indeed, with some help and guidance from
Mr. Myers, Myers Foundations and Collins Concrete, two other
foundation and flat work contracting companies that he helped
establish, were able to operate successfully and obtain
substantial business during 1995 and 1996.
Although the construction boom in Douglas County contributed
to petitioner’s profitability during these years, the record also
reflects that petitioner was a well managed company whose work
enjoyed an excellent reputation among builders and other
construction industry people in the Denver, Colorado, area.
This factor is neutral because petitioner’s financial
success was not due merely to fortuitous economic conditions.
Home Interiors & Gifts, Inc. v. Commissioner, 73 T.C. at 1158;
Neils v. Commissioner, T.C. Memo. 1982-173.
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