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No one factor is determinative, and neither is the presence or
absence of any single factor determinative. Each case is
considered in light of its own facts and circumstances. See
Victory Housing No. 2, Inc. v. Commissioner, 205 F.2d 371, 372
(10th Cir. 1953), revg. 18 T.C. 466 (1952).
I. Purpose of Acquisition
With respect to JCLC’s purpose of acquisition, it was
organized with the intent and for the purpose of purchasing the
Jackson Creek property and holding it for investment and
appreciation in value. JCLC purchased the Jackson Creek property
with knowledge that the land would eventually be developed into
residential housing. The initial master plan to develop the
property was approved by the town of Monument, and the town
enacted an annexation ordinance rezoning the property, subject to
final site approval. In addition, pursuant to the Tap Fee
Agreement, the Intergovernmental Agreement, and the Annexation
and Development Agreement, Triview was obligated to improve the
land and prepare it for further development. The investors in
JCLC were familiar with these aspects and acquired and held the
property for its appreciation in value.
Although the purpose for the acquisition of property is of
some weight, ultimately, the purpose for which property is held
is of great significance. Mauldin v. Commissioner, 195 F.2d 714,
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