- 20 - 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 "severalPage: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
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