- 29 -
287 U.S. 103 (1932); Autin v. Commissioner, 109 F.3d 231,
233-234 (5th Cir. 1997), revg. and remanding 102 T.C. 760
(1994); Estate of Vissering v. Commissioner, 96 T.C. 749,
755-756 (1991) ("It is virtually hornbook law that State
law determines the legal interests and rights created
by a trust instrument, while Federal law determines the
Federal tax consequences of those interests and rights."),
revd. and remanded on other grounds 990 F.2d 578 (10th
Cir. 1993). The tax matters partner has not shown that
the partnership transferred legal title to 2,000 shares
of Saztec stock under Pennsylvania law prior to April 15,
1987.
Section 8301 of the Pennsylvania Commercial Code
provides that on the "delivery" of a security, the
purchaser acquires the rights in the security which his
transferor had or had actual authority to convey. 13 Pa.
Cons. Stat. Ann. sec. 8301(a) (West 1984). Section 8313 of
the Pennsylvania Commercial Code prescribes when delivery
of a security to a purchaser is deemed to occur. See 13
Pa. Cons. Stat. Ann. sec. 8313 (West 1984); see also Wagner
v. Hart Chem. Co., 597 A.2d 1208 (Pa. Super. Ct. 1991),
alloc. denied 617 A.2d 1275 (Pa. 1992). As applied to the
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