David Taylor Enterprises, Inc. & Subsidiaries - Page 15

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          of ownership.17  Suburban Realty Co. v. United States, supra at             
               We first note that sales increased in the years at issue for           
          understandable reasons.  Mr. Taylor died unexpectedly at age 60,            
          and petitioner’s board agreed to redeem the shares of DTE under             
          section 303 that Mr. Taylor owned before his death.  The increase           
          in sales does not negate a finding that the cars were previously            
          held for sale.  Petitioner explains that the dealership sold                
          fewer classic cars in the earlier years because it was in the               
          nascent phase of building inventory, restoring the cars,                    
          establishing a reputation, and publicizing the classic cars to              
          potential clientele, but that the cars were nonetheless held for            
          sale at all times.18  We found testimony for the dealership                 
          compelling, and find the total number of sales, 80 sales over 12            
          years, and 69 sales over the 2 years at issue, sufficiently                 
          frequent to support a finding that the classic cars were held for           
          sale.  This factor favors petitioner.                                       

               17We also note that we need not decide the “precise moment”            
          that the cars were held for sale under Fifth Circuit caselaw.               
          See Suburban Realty Co. v. United States, 615 F.2d 171, 184 n.36            
          (5th Cir. 1980).                                                            
               18Specifically, four were sold in 1990, three were sold in             
          1991, three were sold in 1997, one was sold in 1998, and the                
          remainder were sold in 1999 and 2000.                                       

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