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and pump, mulch sweeper, generator, and chain saw in 1994 and
1995. However, petitioners had no equipment to ball the roots of
and remove large trees.
Petitioners did not sell many trees in 1994 and 1995.
Petitioners promoted tree sales in 1994 and 1995 by word of
mouth, mostly to their relatives. In 1994 and 1995, petitioners
sold trees to relatives (who helped dig the trees) and to three
other customers for $20 per tree. In 1997, petitioners sold a
number of trees not specified in the record for which they
received payment in 1998. Petitioners’ farm was visible from the
road, but they did not have a sign for it.
Petitioner had planted about 3,000 to 3,500 trees by the end
of 1995, and about 5,000 by March 2000. He did not keep records
of the number of trees he planted.
2. Petitioners’ Business Records and Business Plan
Petitioners did not have a separate bank account for their
tree farm. Petitioner kept records of expenses and income for
income tax purposes. He put expense receipts in separate files
by category. He did not maintain any other books and records for
their tree farm during the years in issue. Petitioners did not
have a budget, did not make income or profit projections, and did
not prepare a cost analysis for the tree farm. At a time not
specified in the record, petitioners projected that they would
sell 200 to 300 trees per year by around 1998 or 1999.
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Last modified: May 25, 2011