David Taylor Enterprises, Inc. & Subsidiaries - Page 14

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          Respondent and petitioner have provided us with no caselaw                  
          concerning the sale of classic cars, or cars in general, but                
          rather have highlighted cases concerning sales of real estate and           
          artwork.15  Each case turned on the unique facts at issue, and we           
          can discern no standard from the caselaw to apply here.  We                 
          therefore view the frequency of sales factor in the context of              
          our own facts and apply no standardized test to determine whether           
          the sales were sufficiently frequent.                                       
               Petitioner sold 80 cars over approximately 12 years.16  The            
          parties focus on different time periods to support their                    
          arguments.  Petitioner focuses upon the higher number of sales in           
          the years at issue to argue that the cars were held for sale as             
          inventory.  In contrast, respondent focuses upon the smaller                
          number of sales between 1989 and 1998 to argue that the cars were           
          held for investment purposes.  The holding purpose inquiry begins           
          at the time the property is acquired and spans the entire course            

               15Real property was held for sale where the taxpayer sold 37           
          lots in 3 years, and 10 lots in 2 years.  See Biedenharn Realty             
          Co. v. United States, 526 F.2d at 416; Thompson v. Commissioner,            
          322 F.2d 122, 124-125 (5th Cir. 1963), affg. in part and revg. in           
          part 38 T.C. 153 (1962).  Artwork was held for investment where             
          the taxpayer sold eight paintings in 2 years.  See Williford v.             
          Commissioner, supra.                                                        
               16The dealership owned more than 80 classic cars during the            
          time that the museum was open.                                              

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