Lucian T. Baldwin, III - Page 13

                                       - 13 -                                         
               Throughout the years at issue, petitioner insured Granot               
          Loma as his second residence.  Petitioner also insured all the              
          recreational vehicles at Granot Loma; i.e., boats, personal                 
          watercraft, and snowmobiles, as his personal property.                      
               Petitioner occasionally discussed investments or other                 
          business matters while at Granot Loma.  Petitioner also                     
          entertained family members and friends with whom he did business,           
          as well as employees, traders, brokers, and other business                  
          associates, at such events as annual employee weekends and trader           
               From time to time, petitioner investigated possible business           
          uses for Granot Loma.  For example, in 1989, petitioner decided             
          to plant Christmas trees on the property.5  Also, in 1989,                  
          following a vicious winter storm, petitioner engaged a logging              
          company to remove some storm-damaged trees.  Sometime later,                
          petitioner hired a contractor to conduct a selective timber                 
          harvesting program on a limited trial basis.  In approximately              

               5The Marquette County Soil and Water Conservation District             
          was consulted to determine the optimum locations for planting the           
          trees.  Petitioner rejected the Conservation District’s first               
          choice for siting the trees, as he wanted to keep that field                
          available for a runway.  Petitioner ultimately decided to plant             
          the Christmas trees along the driveway, a site not recommended by           
          the Conservation District.  In the year following their planting,           
          approximately one-half of the newly planted trees died because              
          their roots had not been clipped prior to planting.  The burden             
          of digging up the dead trees and replanting was deemed to exceed            
          any expected benefit, so the Christmas tree operation was                   
          abandoned.  None of the Christmas trees planted at Granot Loma              
          ever generated any income.                                                  

Page:  Previous  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  Next

Last modified: May 25, 2011