- 14 - 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 time. 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 toPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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