Tony L. Zidar and Kathleen I. Zidar - Page 6




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               Over 6 to 8 months in 1992, while the stock car was being              
          built, Tony spent approximately 100 to 300 hours on his stock car           
          activity.  During the same period, he worked full-time for CRC,             
          never missing a day of work.  In 1992, construction of the stock            
          car was completed.  Tony garaged the car at his house.  Although            
          he spoke with some potential drivers, none signed a contract to             
          drive the stock car for him.                                                
               To make a profit from his stock car activity, Tony needed to           
          obtain large sponsors.  He could not rely on prize winnings to              
          make a profit, because drivers take a significant portion of any            
          prize winnings.  In 1992, Tony was able to obtain no more than              
          $5,571 in sponsorships.  After other sponsorships failed to                 
          materialize, Tony decided to sell the stock car, without ever               
          having raced it.  Tony advertised the stock car for sale in trade           
          magazines.                                                                  
               Hoping that a good showing in a race would make the stock              
          car more attractive to a purchaser, in the fall of 1992 Tony                
          entered it in a race at a Madison, North Carolina, speedway.                
          While the stock car was being driven around the speedway between            
          qualifying runs for the race, it collided with another race car             
          and was destroyed.  Tony’s stock car was uninsured, and he did              
          not replace it.                                                             
               Petitioners spent over $100,000 on the stock car activity.             
          Tony had no business plan for his stock car activity, nor did he            






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