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plan prior to April 15, 1987, and is entitled to deduct
the value of the stock on its 1986 return. The tax matters
partner claims that the partnership obtained the stock
from Mr. Stein, the sole participant of the plan, and
simultaneously contributed it back to Mr. Stein in his
capacity as trustee of the trust that formed a part of
the plan. The tax matters partner claims that the
contribution took place on April 7, 1987, when Mr. Stein
and the partnership executed the contribution agreement
and Mrs. Stein ratified the agreement.
As a preliminary matter, we must dispose of the tax
matters partner's factual contention that the broker,
Broadcort, and its agent, Steinberg & Lyman, failed to
follow Mr. Stein's instructions to transfer 2,000 shares
of Saztec stock from his personal account to a new account
for the trust. The tax matters partner makes this factual
contention, based upon Mr. Stein's testimony at trial that,
after executing the contribution agreement, Mr. Stein
orally instructed the broker to open a new account in the
name of the trust and "to put the shares that were the
subject of this assignment in the separate account." The
tax matters partner further claims that Mr. Stein inquired
of his broker and the broker's assistant and had "several
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