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combination of factors, is absolutely determinative. Cal-Maine
Foods, Inc. v. Commissioner, T.C. Memo. 1977-89; see also Western
Contracting Corp. v. Commissioner, 271 F.2d 694 (8th Cir. 1959);
Benton v. Commissioner, 197 F.2d 745 (5th Cir. 1952); Haggard v.
Commissioner, 24 T.C. 1124 (1955), affd. per curiam 241 F.2d 288
(9th Cir. 1956).
In Grodt & McKay Realty, Inc. v. Commissioner, supra at
1237-1238, we listed several factors considered by courts in
determining whether the benefits and burdens of ownership have
been transferred. The factors considered were:
(1) Whether legal title passes; (2) how the parties
treat the transaction; (3) whether an equity was
acquired in the property; (4) whether the contract
creates a present obligation on the seller to execute
and deliver a deed and a present obligation on the
purchaser to make payments; (5) whether the right of
possession is vested in the purchaser; (6) which party
pays the property taxes; (7) which party bears the risk
of loss or damage to the property; and (8) which party
receives the profits from the operation and sale of the
property. [Citations omitted.]
1. Whether Legal Title Passed
We look to State law to determine whether a taxpayer has an
ownership interest in property. See United States v. National
Bank of Commerce, 472 U.S. 713 (1985). Under Kentucky law,
"title to goods passes * * * in any manner and on any conditions
explicitly agreed on by the parties." Ky. Rev. Stat. Ann. sec.
355.2-401(1) (Michie 1996). Petitioners argue that under the
agreement Four A granted, sold, and conveyed all of its right,
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