Reed Smith Shaw & MClay, William J. Smith, Tax Matters Partner - Page 20

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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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