Robert G. Leslie and Marilyn B. Leslie - Page 30

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               Finally, the alternative liquidation techniques (i.e.,                 
          cancellations and assignments) developed by Avram Salkin were               
          used by Hunter to sell prospective investors on a scheme to                 
          achieve tax avoidance.  Id.  Specifically, the "cancellation"               
          technique was devised so that its proponents could claim ordinary           
          loss treatment rather than capital loss treatment.  The                     
          "assignment" procedure was contrived so that Hunter investors               
          could characterize straddle gains as long-term capital gains                
          instead of short-term capital gains.  However, to utilize these             
          techniques and obtain their purported tax benefits, petitioner              
          paid more in commissions and fees than he would have incurred had           
          he liquidated his futures contract the usual way, by means of               
          offset.  Id. at 400, 419.                                                   
               For example, under Hunter's "Current Policies and Fees"                
          statement, petitioner was charged a fee of $15,520.14 for                   
          canceling 175 gold futures contracts on December 10, 1980.  Had             
          petitioner offset his 175 gold contracts instead of "canceling"             
          those positions, his fee would have only been $1,750.  The Court            
          believes that petitioner was willing to pay substantially more              
          fees to obtain ordinary loss deductions in the amounts of                   
          $1,506,000 and $55,200 for 1980 and 1981, respectively, espe-               
          cially since petitioners deducted the fees on their 1980 and 1981           
          Federal income tax returns.                                                 
               For the reasons stated above, we hold that petitioners'                
          motives in entering into these transactions, despite their                  

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