David Taylor Enterprises, Inc. & Subsidiaries - Page 2

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          on the sale of classic cars during the years at issue are capital           
          or ordinary losses under section 1221(a).3  Resolution of this              
          issue depends on whether the classic cars were held primarily for           
          sale to customers in the ordinary course of business or were held           
          instead for investment purposes.  We hold that petitioner held              
          the classic cars for sale to customers.                                     
                                  FINDINGS OF FACT                                    
               The parties have stipulated some facts.  The stipulation of            
          facts and accompanying exhibits are incorporated by this                    
          reference and are so found.                                                 
          David Taylor Enterprises                                                    
               Petitioner is an affiliated group of corporations that files           
          consolidated income tax returns.  See sec. 1501.  The common                
          parent of the affiliated group is David Taylor Enterprises, Inc.            
          (DTE).  Until his death, David Taylor, Sr. (Mr. Taylor) owned all           
          the shares of DTE.  DTE’s principal place of business was                   
          Houston, Texas, at the time it filed the petition.                          
          David Taylor Cadillac                                                       
               Cars were Mr. Taylor’s love and passion, and he was involved           
          in the car business throughout his life.  When he was a child,              
          Mr. Taylor’s father was an Oldsmobile-Cadillac dealer in Port               

               3All section references are to the Internal Revenue Code in            
          effect for the years in issue, and all Rule references are to the           
          Tax Court Rules of Practice and Procedure, unless otherwise                 

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Last modified: May 25, 2011