Kenneth L. Musgrave and Etta D. Musgrave - Page 7




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            by the Supreme Court of Texas)4 for the proposition that a                                 
            purchaser under a contract for deed receives a mere equitable                              
            right to complete the contract.  One court of appeals in Texas                             
            has followed Johnson, stating it is the controlling law in Texas.                          
            See Club Corp. of Am. v. Concerned Property Owners, 881 S.W.2d                             
            620, 626 (Tex. App. 1994).  On the basis of these cases,                                   
            respondent argues petitioners are not entitled to a charitable                             
            contribution deduction in 1994, the year that they entered into a                          
            bargain sale of real property (contract for deed) with the                                 
            Church.  Respondent argues the contract for deed petitioners                               
            entered with the Church was an executory contract.  The contract                           
            contemplated petitioners retaining legal title to the property                             
            until the Church had made all of the payments required.                                    
            Respondent concludes that because the contract was executory, the                          
            gift was incomplete in 1994.                                                               
                  Petitioners rely on a line of cases5 which finds its origin                          
            in the case of Leeson v. City of Houston, 243 S.W. 485 (Tex.                               
            Commn. App. 1922).  These cases stand for the proposition that                             
            the purchaser receives equitable title to the property either at                           

                  4The significance of an opinion’s being adopted as opposed                           
            to a judgment’s being adopted is discussed infra p. 8.                                     
                  5Fant v. Howell, 547 S.W.2d 261, 264-265 n.5 (Tex. 1977);                            
            City of Austin v. Capitol Livestock Auction Co., 453 S.W.2d 461,                           
            464 (Tex. 1970); Graves v. Diehl, 958 S.W.2d 468 (Tex. App.                                
            1997); Bucher v. Employers Cas. Co., 409 S.W.2d 583, 584 (Tex.                             
            App. 1966).                                                                                






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