-13-
Court resolved Deglow's claim to title. Since this occurred in
late December 1989, title could not pass before then.
h. Conclusion
In summary, petitioners had: (a) The right to possess and
use the W. 22d property, but not the right to rent it to others;
(b) the duty to maintain the property; and (c) a limited right to
improve the property without Hagan's consent. Petitioners did
not: (a) Bear the risk of loss of the property; (b) have the
obligation to pay taxes on the property; (c) have the
responsibility to insure the property against fire or other
hazards; or (d) have the right to obtain legal title at any time
by paying the balance of the purchase price. We conclude that
petitioners did not have enough of the benefits and burdens of
ownership of the W. 22d property to be treated as owning it for
purposes of section 121 before title passed.
2. Title Passage to the Blantons
Title to the W. 22d property passed to the Blantons on
January 31, 1990, less than 3 years before they sold it on
October 30, 1992. Passage of title is perhaps the most important
indicator of the date of sale of property. Commissioner v.
Baertschi, 412 F.2d 494, 498 (6th Cir. 1969), revg. and remanding
49 T.C. 289 (1967).
Petitioners contend that the date of the passage of title is
less important here than in the usual case because passage of
title was delayed by a title dispute. In light of our conclusion
that petitioners did not have the benefits and burdens of
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