James W. and Laura L. Keith - Page 12




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          circumstances.  See Clodfelter v. Commissioner, 426 F.2d 1391,              
          1393 (9th Cir. 1970), affg. 48 T.C. 694 (1967); Baird v.                    
          Commissioner, supra at 124.  As all contracts at issue appear to            
          involve Georgia properties and to have been executed in Georgia,            
          the relevant State law is supplied by the statutes and courts of            
          that jurisdiction.                                                          
               Among the factors which this and other courts have cited as            
          indicative of the benefits and burdens of ownership are:  A right           
          to possession; an obligation to pay taxes, assessments, and                 
          charges against the property; a responsibility for insuring the             
          property; a duty to maintain the property; a right to improve the           
          property without the seller’s consent; a bearing of the risk of             
          loss; and a right to obtain legal title at any time by paying the           
          balance of the full purchase price.  See Goldberg v.                        
          Commissioner, T.C. Memo. 1997-74; see also Major Realty Corp. v.            
          Commissioner, supra at 1487; Grodt & McKay Realty, Inc. v.                  
          Commissioner, 77 T.C. 1221, 1237-1238 (1981); Musgrave v.                   
          Commissioner, T.C. Memo. 2000-285; Berger v. Commissioner, T.C.             
          Memo. 1996-76; Spyglass Partners v. Commissioner, T.C. Memo.                
          1995-452.  When a buyer, by virtue of such incidents, would be              
          considered to have obtained equitable ownership under State law,            
          a sale will generally be deemed completed for Federal tax                   
          purposes.  See Baird v. Commissioner, supra at 126; Berger v.               
          Commissioner, supra; Spyglass Partners v. Commissioner, supra.              






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