David Taylor Enterprises, Inc. & Subsidiaries - Page 21

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          classic cars specifically and the dealership in general, and to             
          cover overhead.                                                             
               We found the testimony that the classic cars were acquired             
          as inventory to be honest, forthright, and credible.  This factor           
          favors petitioner.                                                          
               6.  Sales and Advertising Effort                                       
               Sales and advertising efforts indicate the assets are held             
          for sale, not investment.  Respondent argues that the dealership            
          did not advertise the classic cars for sale and compares the                
          advertising strategies the dealership used to market the new and            
          used cars with the less overt methods the dealership used to                
          market the classic cars.  Again, we find this analogy artificial.           
          The holding period was shorter for new and used cars, and the               
          advertising methods consequently more immediate.  The dealership            
          could be selective in its sales so long as its activity was                 
          consistent, overall, with its treatment of the classic cars as              
          inventory for sale.                                                         
               Petitioner argues that the dealership used various                     
          advertising methods to market the classic cars for sale.  These             
          included entering the cars in auctions and auto shows, displaying           
          the cars at numerous events frequented by wealthy individuals,              
          hosting events at the Galveston property for wealthy car                    
          enthusiasts, designing and printing brochures featuring the cars,           
          arranging for newspaper and magazine articles about the cars,               

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Last modified: May 25, 2011