Robert G. Leslie and Marilyn B. Leslie - Page 27

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          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              
               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.                                                         

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