- 27 -
the facts of this case, we find, for the reasons discussed below,
that petitioner did not enter into his straddle transactions
primarily for profit.
First, although petitioner testified that Hunter representa-
tives never told him that canceling a commodities position would
give him an ordinary tax loss or that he could get long-term
capital gain treatment on the disposition of a short sale
position, it is clear that the objective facts contradict this
testimony.
A majority of the promotional material was devoted to show-
ing clients the significant tax benefits that could be achieved
through the Hunter "cancellation" and "assignment" closing
procedures. Petitioner testified that he read and received the
Hunter promotional material which explained the tax benefits to
Hunter's liquidation procedures. Also, many of the "Questions
and Answers" portion of the Hunter promotional material related
specifically to tax benefits that can be achieved through the
Hunter program. Furthermore, other Hunter promotional material
received and read by petitioner included graphs comparing pre-
and post-tax analyses of contract liquidation, a worksheet
specifically allowing for the calculation of "Tax Savings" of
contract liquidation, and a four-page document entitled Summary
of Federal Income Tax Consequences of F.G. Hunter & Associates
Investment Program.
Page: Previous 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 NextLast modified: May 25, 2011