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ownership and bear the risks of ownership during the period at
issue. Alstores Realty Corp. v. Commissioner, 46 T.C. 363
(1966). Taxation is more concerned with a taxpayer's actual
control over the property than with title over the property.
Frank Lyon Co. v. United States, 435 U.S. 561, 572 (1978);
Corliss v. Bowers, 281 U.S. 376, 378 (1930); Towlinsky v.
Commissioner, 86 T.C. 1009, 1041 (1986).
Respondent determined that the trusts earned $90,596 from
mortgages which were serviced by Berkley. Petitioner argues that
the trusts did not earn income from the mortgages because the
mortgages were titled in the name of Berkley. We agree with
respondent.
We hold that the trusts owned the mortgages at issue because
Berkley transferred the mortgages to the trusts as part of a
"partial debts settlement" of the debts owed by the estate to the
trusts. Berkley serviced the mortgages on the condominium
developments. All mortgage payments from the La Playa and Blue
Grass developments were made to Berkley. Each month, Berkley
would collect all mortgage payments from the mortgagors. Then,
Berkley would prepare a schedule showing the mortgage number, the
total payment, and the principal and interest for each mortgage.
The trusts clearly owned the La Playa and Blue Grass
mortgages during the fiscal year ended February 28, 1985. On its
books, Berkley indicated that the trusts owned the La Playa and
Blue Grass developments. A Berkley work paper reflects a journal
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