-10-
1. When the Benefits and Burdens of Ownership Passed
to the Blantons
Petitioners argue that they acquired the benefits and
burdens of ownership of the W. 22d property around August 1989.
To decide their claim, we consider whether they: (a) Had the
right to possess the property and to enjoy the use, rents, and
profits thereof; (b) had the duty to maintain the property; (c)
were responsible for insuring the property; (d) bore the risk of
loss of the property; (e) were obligated to pay taxes,
assessments, and charges against the property; (f) had the right
to improve the property without the seller's consent; and (g) had
the right to obtain legal title at any time by paying the balance
of the purchase price. Derr v. Commissioner, supra at 724-725;
Ryan v. Commissioner, T.C. Memo. 1995-579.
The purchase agreement did not state that it shifted any of
the benefits and burdens of ownership to petitioners.
Nevertheless, petitioners argue that they had the right to
possess the W. 22d property, they bore the burden of maintaining
the property, and they had the right to obtain legal title at
anytime by paying the balance of the purchase price.
a. Whether Petitioners Had a Right To Possess the
Residence and Enjoy the Use, Rents, and Profits
Thereof
Petitioners moved into the W. 22d property by August 4,
1989. Petitioners apparently had the right to possess and use
the W. 22d property before closing because Hagan gave them
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