- 4 -
FINDINGS OF FACT1
Some of the facts have been stipulated and are so found.
The stipulated facts and exhibits submitted therewith are
incorporated herein by this reference. Petitioners are husband
and wife, and they resided in Hutchinson, Kansas, when they
petitioned the Court. They filed a 1982 Form 1040, U.S.
Individual Income Tax Return, using the filing status of "Married
filing joint return". They each owned 50 percent of BEC's stock
during the relevant years. BEC was the parent company of a
consolidated group of corporations engaged in the business of
wholesaling and retailing natural gas liquids.
Mr. Burke owed BEC approximately $853,000 in 1982, and
petitioners devised a plan to reduce this debt. Under the plan,
Mrs. Burke would transfer her interest in two parcels of property
to Mr. Burke in exchange for his interest in certain stock, and
Mr. Burke would transfer the property to BEC in reduction of the
debt. The parcels were located in Hutchinson, Kansas, one at
A & Walnut (Walnut property) and the other at 707 North Main
1 After the Court filed the parties' opening briefs,
petitioners notified the Court that they did not intend to file
the second brief. We assume that petitioners do not object to
respondent's proposed findings of fact, except to the extent that
petitioners' proposed findings of fact are clearly inconsistent
therewith, in which case we have resolved the inconsistencies
based on our understanding of the record as a whole. See Estate
of Jung v. Commissioner, 101 T.C. 412, 413 n.2 (1993); see also
Estate of Freemen v. Commissioner, T.C. Memo. 1996-372;
Sutherland v. Commissioner, T.C. Memo. 1996-1; Houser v.
Commissioner, T.C. Memo. 1995-330.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011