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That Dr. Burrus’s primary profit motive during the years in
issue was based on land appreciation rather than the cattle
operation is also reflected in his actions with respect to FBHR.
Although Dr. Burrus’s disenchantment with FBHR’s cattle breeding
operations caused him to seek to reduce his share of the
partnership’s profits and losses from 50 percent to 20 percent,
he nonetheless was careful to retain his 50-percent interest in
the partnership’s land. At the dissolution of FBHR, the partners
agreed that Dr. Burrus would receive only 20 percent of the
cattle and other assets except the land. With respect to the
land, Dr. Burrus had the option of either selling his half
interest or buying Dr. Foreman’s, based on Dr. Foreman’s
appraisal. Dr. Burrus opted to buy, even though a half interest
in the Cheatham Property had nearly tripled in value during the
partnership’s ownership, from approximately $300,000 to over
$800,000.
Dr. Burrus’s own statement of his profit expectations
regarding the Maple Row land and the significance of the cattle
herd thereto, his expressed interest in land as an investment,
his wife’s description of her occupation as “real estate
manager”, and his actions with respect to the FBHR partnership
all point convincingly to the conclusion that he held the land
utilized in Maple Row’s operations primarily with the intent to
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