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Because we find that petitioners held neither property for
investment, we make no findings of fact relating to the
sufficiency of petitioners’ attempt to satisfy the other
requirements for a deferred like-kind exchange.5
Petitioners’ Purchase and Use of the Properties
The Clark Hill Property
Petitioners’ decision to purchase the Clark Hill property
was motivated, in part, by their familiarity with the area, both
having grown up in the vicinity of Clark Hill Lake. In addition,
both their families owned property on or near Clark Hill, and Mr.
Moore’s father advised them that property on Clark Hill Lake had
appreciated and would continue to appreciate. Petitioners’
decision to invest in real estate rather than in intangibles,
such as stocks or bonds, was influenced by a prior bad experience
with a financial adviser who had stolen their money.
When in 1988 they purchased the Clark Hill property,
petitioners’ primary residence was in Norcross, Georgia, an
approximately 3-hour drive from the Clark Hill property. In 1995
or 1996, petitioners changed their primary residence to Marietta,
Georgia. The drive from the Marietta residence to the Clark Hill
property normally took between 5 and 6 hours.
5 As a result, we need not rule on respondent’s objections
to various documents petitioners offered.
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