- 15 - However, a taxpayer becomes the equitable owner of property when he assumes the benefits and burdens of ownership. See Baird v. Commissioner, 68 T.C. 115, 124 (1977). The time at which a taxpayer has assumed the benefits and burdens of ownership is a question of fact in each case. See Koehler v. Commissioner, supra. Petitioners contend that they were equitable owners of the Foxbriar property during both of the years at issue. Petitioners argue that they had an option contract with the Hewitts for the purchase of the Foxbriar property, which became an executory contract for sale/purchase upon petitioners’ exercise of their option. At that time, petitioners argue, they became equitable owners of the Foxbriar property. Petitioners contend they became equitable owners of the property no later than June 30, 1991, by their acts of "signing the earnest money contract and paying the $100 and $2,500, setting the closing date, and subsequent acts of making all monthly payments and paying the additional $1,500". Petitioners contend that this argument is fortified by the fact that they took possession of the property in June 1990 and maintained possession through 1997. In support of their claim to equitable title, petitioners rely on the Texas Supreme Court case of Sinclair Ref. Co. v. Allbritton, 218 S.W.2d 185 (Tex. 1949). Petitioners’ reliance on the Sinclair Ref. Co. case is misplaced. The contract at issue in Sinclair Ref. Co. was a lease contract containing a purchase option clause, which gavePage: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
Last modified: May 25, 2011