was due

and payable on August 31, 1983.    Respondent’s Opening Brief at

1024, par. 1538; Petitioners’ Reply Brief at 1348.

     The trustee of Beach Trust was Albert Morrison, the grantor

was Kanter, and the beneficiaries were members of Kanter’s

family.   Exh. 9216.   The trustee of the Baroque Trusts was

Patricia Grogan, the grantor was Kanter, and the beneficiaries

were members of Kanter’s family.    Exh. 9219.    For Federal tax

purposes, Kanter was the “deemed owner” of the Baroque Trusts,

and income therefrom generally was reportable on Kanter’s

individual Federal income tax returns.      Exh. 9111, Bates Nos.

000125-000127.

     Kanter intended that, if the promissory notes were accorded

bases equal to face values, the promissory notes           -398-

     Kanter was counsel of record for the taxpayers in Estate of

Cook and was the trial attorney before this Court.   Since Kanter

was an investor in IRC, he had offered himself as a witness for

the taxpayers at the trial of the Estate of Cook case.     The Court

did not allow Kanter to testify, however, because he was the

trial attorney for the taxpayers.    In the instant cases, Kanter

was not the trial attorney and was before this Court as a party

litigant and, therefore, he was allowed to testify as a witness.

     For present purposes, the Court recites the pertinent facts

from Estate of Cook. 