-374-
Issue XII. Whether Kanter Realized and Must Recognize Capital
Gains as a Result of Transactions Involving Cashmere
Investments Associates, Inc., During 1983 and Whether
the Kanters May Use the Installment Method To Report
Gains (STJ report at 145)149
FINDINGS OF FACT
During the 1970s, Kanter was involved in a series of real
estate development projects with developers Sam Zell (Zell) and
Robert Lurie (Lurie). Kanter, Transcr. at 4241-4243, 4261. The
development properties were owned by partnerships (real estate
partnerships) and Kanter held interests in the real estate
partnerships through the BWK Revocable Trust, the Everglades
Trusts (Nos. 1-5), the BWK Family Trusts, and THC. Exh. 9156,
items 3, 6. The BWK Revocable Trust and the Everglades Trusts
were grantor trusts whose income was attributable to Kanter
personally. Exhs. 130 and 130A; Kanter, Transcr. at 4235, 4261-
4262.
The designated beneficiaries of the BWK Revocable Trust, the
BWK Family Trusts, and the Everglades Trusts were members of
Kanter’s family. Exhs. 453, 583, 9213, 130, 130A; Kanter,
Transcr. at 4235, 4261-4262. During 1983, THC’s shareholders
149 The STJ report recommended holding that respondent is
barred from making any determination concerning the taxable year
1983 on account of the expiration of the period of limitations
governing assessment and collection for that year. As previously
discussed, we determined that Kanter’s income tax returns for the
years at issue were fraudulent, and, therefore, the period of
limitations remains open pursuant to sec. 6501(c)(1).
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