In Shea, the taxpayers (a corporation and two partnerships related through common ownership, or for our purposes, “Shea”) were in the home development business in Arizona, California and Colorado. Shea wasn’t in the habit of throwing up a spec home and calling it a day; rather, it preferred to develop planned communities ranging from 100 to 1,000 homes. The builders emphasized the features and lifestyle of the planned communities to potential buyers, advertising their developments with cliché, but apparently effective, slogans like “The Pursuit of Happiness.” Shea invested significant funds – upwards of 30% of total budgeted costs, in some developments — in the amenities – such as pools, golf courses, and clubhouses –for each neighborhood. In addition, Shea was held to its promise by state and municipal law,…