Raymond Syufy Marcia Syufy, Plaintiffs-Counterclaim v. United States of America, Defendant-Counterclaimant-Appellant

DAVID R. THOMPSON, Circuit Judge:

The government appeals from a summary judgment entered in favor of taxpayers Raymond and Marcia Syufy. The district court held that I.R.C. § 1491 did not apply to Raymond Syufy’s 1972 transfer of appreciated securities to a Bahamian trust in exchange for a lifetime annuity of equal value, 651 F.Supp. 1282. We have jurisdiction under 28 U.S.C. § 1291, and we affirm.

FACTS AND PROCEEDINGS

On February 14, 1972, Raymond Syufy transferred 5,654 shares of Syufy Investment Corporation (“SIC”) preferred stock, valued at $2,827,000, to Wobaco Trust, Ltd. (“Wobaco”), as…