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after the creation of Sandbar Wholesale Trust on October 12,
1995, petitioners no longer held title to those two businesses or
to the properties of those businesses.
Although the record shows that Sandbar Wholesale Trust was
established on October 12, 1995, the record does not show that
petitioners transferred Barbara’s Gift Shop and Barmes Wholesale,
or any properties of those businesses, to that trust on that date
or at any other time during 1995.37 On the instant record, we
reject petitioners’ contention that petitioners transferred
Barbara’s Gift Shop and Barmes Wholesale, or any properties of
those two businesses, to Sandbar Wholesale Trust on October 12,
1995, or at any other time during the year at issue.38
37The record shows that Mr. Barmes made initial cash depos-
its of $1,000 into each of the three Community Bank accounts that
he opened on Oct. 13, 1995, with respect to Sandbar Wholesale
Trust in the names of Sandbar Wholesale Trust–-Barbara [sic] Gift
Shop, Sandbar Wholesale Trust–-Barmes Wholesale, and Sandbar
Wholesales [sic] Trust–-Payroll. However, the record does not
establish that the cash used to make those deposits was the
property of Barbara’s Gift Shop and/or Barmes Wholesale. The
record does show that on Oct. 18, 1995, petitioners gratuitously
transferred to Sandbar Real Estate Trust by warranty deed the
Fritchton property and the two parcels of real estate on which
the two business locations were situated. We express no opinion
herein as to whether such transfers should be recognized for
Federal tax purposes.
38The record establishes only that petitioners made certain
claims to, inter alia, respondent and the State of Ind. that they
transferred Barbara’s Gift Shop and Barmes Wholesale and the
properties of those two businesses to Sandbar Wholesale Trust.
For example, the record includes a three-page document relating
to the Sandbar Wholesale Trust that was filed with the Knox
County Recorder’s Office on October 12, 1995, which respondent
(continued...)
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