Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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395.0000 OCCASIONAL SALES—SALE OF A BUSINESS—BUSINESS REORGANIZATION—Regulation 1595

Annotation 395.1160

(f) SALE OF A BUSINESS GENERALLY

395.1160 Escrow Transactions—Time of Sale. Escrow agreement provided that title was not to pass to the purchaser until a specified sum had been deposited in escrow. At the time of the agreement, the purchaser made a nominal down-payment toward the purchase price and at the same time entered into possession under a separate oral rental agreement pursuant to which additional consideration was paid. When the intended purchaser failed to complete the escrow agreement, the owner regained possession and retained the nominal deposit as damages. No sale resulted. The transfer of possession to the intended purchasers should be regarded as a rental apart from the contract of sale and not a transfer of possession in lieu of a transfer of title. 4/14/58.