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made up of a combination of acts and intention.
Neither bodily presence alone nor intention alone will
suffice to create a residence. * * *
* * * * * * *
The phrase "used by the taxpayer as his principal
residence" means habitual use of the old residence as
the principal residence. The antithesis is nonuse of
property as the principal residence. [Citations
omitted; fn. ref. omitted; see also Thomas v.
Commissioner, supra.]
Petitioners sought to rollover any gain realized on the sale
of their Freemont property by the purchase of a permanent
replacement residence (Fairway residence) within the 2-year
period. After the unexpected receipt of an offer and the sale of
their Freemont property, petitioners purchased a townhouse as a
temporary or interim residence until a permanent replacement
property could be located. There is no question that the
townhouse then became petitioners’ principal residence which was
used prior to the June 21, 1990, deadline under section 1034.
Just 15 months after the Freemont property sale, however,
petitioners purchased the Fairway residence and moved their
personal belongings, other than some furniture3, into the new
residence prior to the 2-year deadline under section 1034.
Petitioners also planned to make improvements to the Fairway
residence but were not able to begin the vast majority of such
improvements until after the 2-year period ended.
3 Some of petitioners' furniture was left in the townhouse
to enhance its salability rather than leaving that property empty
while petitioners attempted to sell it.
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