R. Scot Stokes - Page 2




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          all Rule references are to the Tax Court Rules of Practice and              
          Procedure.                                                                  
               After settlement, the primary issue for decision is                    
          whether a trust1 that petitioner established is to be disregarded           
          for Federal income tax purposes and whether petitioner is to be             
          charged with gain from sale of a business.                                  

                                  FINDINGS OF FACT                                    
               Some of the facts are stipulated and are so found.                     
               At the time the petition was filed, petitioner resided in              
          Salt Lake City, Utah.                                                       
               In 1991, petitioner moved to Butte, Montana, and acquired              
          ownership of a business that owned and operated a pizza                     
          restaurant.                                                                 
               In July of 1994, petitioner moved from Butte, Montana, to              
          Salt Lake City, Utah.                                                       
               On August 1, 1994, with assistance from an organization                
          called the National Association of Financial and Estate Planners            
          (Financial Planning Co.), petitioner entered into an annuity                
          contract and formed a so-called annuity trust, and petitioner               
          purportedly transferred all of the property and assets of the               



          1    By mere use of the term “trust” we intend no implication as            
          to whether the trust should be recognized for Federal income tax            
          purposes.                                                                   




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