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acted as petitioner's agent, making petitioner the owner of the
residences. Petitioner denies that the RSC was its agent and
asserts that the RSC was the agent of relocating employees to
transfer ownership of the residences from the employees to third-
party purchasers.
The term "sale" is given its ordinary meaning and is
generally defined as a transfer of property for money or a
promise to pay money. Commissioner v. Brown, 380 U.S. 563
(1965). For Federal tax purposes, State law controls whether a
taxpayer has an ownership interest in property, and the tax
consequences of property ownership are then determined under
Federal law. United States v. National Bank of Commerce, 472
U.S. 713, 722 (1985). However, a sale occurs for Federal tax
purposes upon the transfer of the benefits and burdens of
ownership rather than upon the satisfaction of technical
requirements for the passage of title under State law.
Yelencsics v. Commissioner, 74 T.C. 1513, 1527 (1980); Clodfelter
v. Commissioner, 48 T.C. 694, 700 (1967), affd. 426 F.2d 1391
(9th Cir. 1970).
Whether the benefits and burdens of ownership have been
transferred is a question of fact. In Grodt & McKay Realty v.
Commissioner, supra, we identified the following factors to
consider in determining whether a transaction constitutes a sale:
(1) Whether legal title passes; (2) how the
parties treat the transaction; (3) whether
an equity was acquired in the property;
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