Von Euw & L.J. Nunes Trucking, Inc. - Page 14

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          title to the sand and gravel.  Petitioner and respondent                    
          stipulate that after petitioner loads the Byron sand onto its               
          trucks for delivery and Unimin creates a “weighmaster                       
          certificate”, Unimin considers the Byron sand to be petitioner’s            
          property.  We interpret that stipulation to mean that title to              
          the Byron sand passes from Unimin to petitioner at that point in            
               The record does not reflect whether petitioner acquires                
          title to the sand and gravel that petitioner purchases from the             
          20 suppliers.  In Addison Distrib., Inc., T.C. Memo. 1998-289, we           
          described a taxpayer as both a “buyer pursuant to its contract              
          with [a] vendor or subcontractor and [as a] seller pursuant to              
          its contract with its customers”.  Citing California Commercial             
          Code section 2106 (West 1964), which provides that “a ‘sale’                
          consists in the passing of title from the seller to the buyer for           
          a price”, we concluded that the taxpayer had acquired title to              
          goods which were purchased from the vendor or subcontractor for             
          eventual sale to the taxpayer’s customers.  See id.  In light of            
          California Commercial Code section 2106, our characterization of            
          petitioner as a seller of sand and gravel, and petitioner’s                 
          failure to dispute the transfer of title, we see no reason to               
          treat petitioner’s contractual and legal relationship with the 20           
          suppliers differently from petitioner’s business dealings with              
          Unimin.  We therefore conclude that petitioner acquires title to            

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