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nonvoting stock, was owned by the following parties and in the
following percentages:
Common Stock Ownership Percentage
Owners 1993 1994 1995
Donald G. Oren 74.94% 54.95% 54.95%
Beverly J. Oren 6.33 6.33 6.33
David Oren 0.26 5.25 5.25
Daniel Oren 0.26 5.25 5.25
Bradley Oren 0.26 5.25 5.25
Angela Oren 0.26 5.25 5.25
Trust for David Oren 4.43 4.43 4.43
Trust for Daniel Oren 4.43 4.43 4.43
Trust for Bradley Oren 4.43 4.43 4.43
Trust for Angela Oren 4.43 4.43 4.43
David, Daniel, Bradley, and Angela Oren are petitioners’
children. In 1992, David was age 34; Daniel was 32; Bradley was
27; and Angela was 14. The trusts owning stock in Dart were all
qualified subchapter S trusts under section 1361(d)(1)(B). The
trusts were irrevocable, and all rights incident to the ownership
of the stock were exercised by trustees. None of the trustees
were employed by or held shares in any of the trucking companies;
the trustees were in all respects independent. Dart elected to
be taxed under subchapter S of the Code for taxable years 1993,
1994, and 1995.2 See sec. 1362(a).
Mr. Oren testified that he and his wife attended seminars on
estate planning and made estate planning one of their top
business priorities. As a result, Mr. and Mrs. Oren engaged in a
2Dart was formerly a C corporation and still had accumulated
earnings and profits in 1993, 1994, and 1995, attributable to its
C corporation existence.
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