Lucian T. Baldwin, III - Page 53




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          transportation and communication efficiencies provided by the               
          partnership airplane.  In addition, the Court of Appeals found              
          that losses were due, in large part, to the dramatic rise in the            
          cost of fuel, inflation, and increased interest rates occurring             
          during the late 1970s and early 1980s.  The Court of Appeals                
          concluded that profits generated by the corporation through the             
          use of the partnership’s plane justified a conclusion that the              
          partnership venture was an activity engaged in for profit.                  
               In contrast to the taxpayer in Campbell, petitioner has not            
          proven even an incidental benefit to his commodities trading                
          business or any other business resulting from BAC’s activities.             
          Petitioner testified that his unparalleled trading success was              
          due to his relationships with other traders and brokers in the              
          pit and that his discussions with traders and brokers on the                
          plane trips to and from Granot Loma enabled him to build close              
          personal relationships with the brokers and traders.  However,              
          the objective facts in the record demonstrate that after                    
          petitioner purchased the King Air and organized BAC in 1988,                
          petitioner’s income from his commodities trading business                   
          steadily decreased.                                                         
               Also unlike the situation in Campbell, where the plane                 
          leasing partnership was conducted solely to benefit another                 
          business and was wholly dependent upon that business, BAC was               
          conducted almost exclusively to benefit petitioner personally.  A           







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