Ferydoun Ahadpour, a.k.a F. Ahadpour and Doris Ahadpour - Page 12






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          708, 723-724 (1981); Yelencsics v. Commissioner, 74 T.C. 1513,              
          1527 (1980).  The question of when a sale is complete for Federal           
          income tax purposes is essentially one of fact.  Baird v.                   
          Commissioner, 68 T.C. 115, 124 (1977).  The applicable test is a            
          practical one that considers all of the facts and circumstances,            
          with no single fact controlling the outcome.  Derr v.                       
          Commissioner, supra at 724; Baird v. Commissioner, supra at 124;            
          Deyoe v. Commissioner, 66 T.C. 904, 910 (1976).  Generally, a               
          sale of real property is complete upon the earlier of the                   
          transfer of legal title or the practical assumption of the                  
          benefits and burdens of ownership.  Derr v. Commissioner, supra             
          at 724; Baird v. Commissioner, supra at 124; Deyoe v.                       
          Commissioner, supra at 910.                                                 
               CDC did not receive the benefits and burdens of ownership of           
          Phase II upon execution of the Agreement.  There is no evidence             
          that CDC ever had possession of Phase II.  Furthermore, as stated           
          in the Agreement, petitioners were still liable for the payment             
          of taxes and insurance on Phase II until the closing of escrow.             
          CDC did not have full legal title at the time the Agreement was             
          executed.  Under California law, delivery and acceptance of a               
          deed passes full legal title.  Cal. Civ. Code sec. 1056 (West               
          1982).  According to the Agreement, petitioners were to retain              
          the deed until no later than the business day preceding the close           
          of escrow, at which time they were to deposit into escrow the               
          deed conveying title to CDC in fee simple.                                  



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