David C. Hutchinson, et al. - Page 21

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          the parties treat as possessing the benefits and burdens of                 
          ownership; (3) who has equity in the property; (4) whether the              
          taxpayer has a present obligation to execute and deliver a deed             
          and whether the purchaser has a present obligation to make                  
          payments; (5) who has the rights of possession to the property;             
          (6) who pays the property taxes; (7) who bears the risk of loss             
          or damage to the property; and (8) who receives the profits from            
          the operation and sale of the property.  See Grodt & McKay                  
          Realty, Inc. v. Commissioner, supra at 1237-1238.                           
               Ownership of real property may be transferred even though              
          title thereto is retained by the seller or is in escrow for                 
          security purposes.  See Clodfelter v. Commissioner, 48 T.C. 694,            
          700 (1967), affd. 426 F.2d 1391 (9th Cir. 1970).                            
               On July 10, 1996, prior to the time the Clubhouse was placed           
          in service, VRI transferred into escrow title to the Clubhouse.             
          Thereafter, during the transition period, title to the Clubhouse            
          was held in escrow in VCI’s name.  VCI stood to benefit from an             
          increase in the fair market value of the Clubhouse, and VCI would           
          suffer economically for any decrease in the fair market value of            
          the Clubhouse.                                                              
               Also during the transition period, VCI was obligated and did           
          pay for the insurance relating to the Clubhouse.                            
               Transfer to VCI of legal title to the Clubhouse was                    
          scheduled to occur no later than December 31, 2000, regardless of           

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