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insurance agency to inspect the condominiums in connection with
the purchase of liability and casualty insurance, and an
insurance binder was executed. Finally, from the time of the
December 1983 agreements, Derrick was generally the overseer of
the management companies that collected rents, advertised for
rentals, paid expenses, and handled the day-to-day condominium
operations. Possession of the condominiums by the partnerships
or buyers was possible, and it was exercised by and through a
general partner, Derrick.
Payment of the Property Tax. There was no reference to real
property tax in the December 1983 agreements. In the May 1984
agreements (executed in May 1984, which related back to the
December 1983 agreements), the real property taxes were to be
prorated between the buyers and sellers as of the December 1983
execution date. On this point, respondent argues that the May
1984 agreements may be the documents which created sufficient
enforceable obligations to constitute a sale, rather than an
option, for Federal tax purposes.8 Petitioners, however, counter
that the May 1984 documents were drafted solely to modify the
December 1983 agreements. In that regard, petitioners contend
that the December 1983 agreements constituted a completed sale
and that the May 1984 documents simply added details to carrying
8Respondent argued that the sale may have occurred either at
the time of executing the May 1984 agreements or at the time of
the subsequent closing or settlement date, but that in either
event petitioners would not have met the 6-month threshold of
sec. 483.
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