Ferydoun Ahadpour, A.K.A. F. Ahadpour, and Doris Ahadpour - Page 12

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          petitioners request that if it is determined that the amounts               
          received are included in income (as if the sale had closed), then           
          the amounts received should be reduced by all or part of the                
          adjusted basis of the property and reported for Federal tax                 
          purposes under the installment method of reporting.                         
               Gross income means all income from whatever source derived             
          including gains derived from dealings in property.  Sec.                    
          61(a)(3).  Gain from the sale of property had been held to be               
          gross income in the year when the sale is consummated, and not in           
          the year when the contract was executed.  Veenstra & DeHaan Coal            
          Co. v. Commissioner, 11 T.C. 964, 967 (1948).  Under section                
          1001(a), gain from the sale or other disposition of property is             
          the excess of the amount realized over the taxpayer’s adjusted              
          basis in the property.                                                      
               For purposes of Federal income taxation, a sale occurs upon            
          the transfer of benefits and burdens of ownership, rather than              
          upon the satisfaction of the technical requirements for the                 
          passage of title under State law.  Derr v. Commissioner, 77 T.C.            
          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,            

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