David Taylor Enterprises, Inc. & Subsidiaries - Page 23

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          everything was for sale for the right price.  Testimony also                
          indicates that Mr. Taylor rejected a suggestion to form a                   
          foundation to own the classic cars.  Mr. Taylor rejected the                
          suggestion when he learned that the profits from selling the                
          classic cars would go to the foundation rather than the                     
          dealership.  Mr. Taylor wanted the profits to flow to the                   
          dealership.  This factor favors petitioner.                                 
               7.  Time Devoted to Sales Activity                                     
               That a taxpayer devotes little time or effort to the selling           
          of assets may suggest that the assets are held for investment               
          purposes.  Williford v. Commissioner, T.C. Memo. 1992-450.  A               
          taxpayer does not hold property for sale if the taxpayer did not            
          initiate sales, advertise, have a sales office, or spend a great            
          deal of time on the transactions.  Byram v. United States, 705              
          F.2d 1418, 1424 (5th Cir. 1983); see also Ross v. Commissioner,             
          227 F.2d 265 (5th Cir. 1955) (taxpayer did not list property with           
          real estate dealers, advertise, or make efforts to sell the                 
          property), revg. T.C. Memo. 1954-179.                                       
               We find that the dealership here devoted substantial time to           
          the sales activity.  This includes the time spent coordinating              
          advertising and promotional events, and the time Mr. Taylor spent           
          at classic car shows and auctions negotiating with potential                
          customers, as well as the time the broker spent negotiating sales           
          following Mr. Taylor’s death.  This factor favors petitioner.               

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