capital loss of about $9 million which will "flow thni" to JEE at 10% (after EDC adjustment). D. If we treat the transfer as a gift on 10/24/05 — I. FTC constructively distributed the BS stock to JEE. 2. JEE gifted it to GM. EFTA00726915 3. FTC will realize gain equal to the appreciation ($10,450,

during the stock loan period. (See items A.6 and A.8). B. Substantive Position The facts related above come down to, in substance the following: I. FTC had a position in BS stock; 2. JEE wanted to make a gift to GM; 2 EFTA00728048 3. He borrowed the BS stock from FTC; 4. He completed the gift b