Norman E. Duquette, Inc. - Page 18




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                    5.  Conclusion                                                    
               We shall sustain respondent’s determination of a deficiency            
          to the extent it is based on a disallowance of a deduction for              
          the Dallas apartment rental amount.                                         
               C.  Florida Expenses                                                   
                    1.  Facts                                                         
               The parties have stipulated that, in April 1994, the                   
          Duquettes relocated to Naples, Florida.  A property settlement              
          agreement entered into by them in connection with their divorce             
          recites that they “lived and cohabited as Husband and Wife until            
          on or about April 1994".  The Duquettes were married during all             
          of calendar year 1994, and they filed a joint Federal income tax            
          return for that year (the joint return).  The joint return is               
          signed by Norman and is dated March 13, 1995.  Attached to the              
          joint return is a form reporting the sale of the Dallas                     
          apartment.  That form recites that, on July 25, 1994, Aline had             
          purchased a replacement residence and that Norman “will do so               
          within the two year period [permitted for tax free replacement of           
          a principal residence]”.  From April 1994, until September 30,              
          1994 (the last day of the 1994 tax year), Norman’s presence in              
          Florida was sporadic.  He testified:  “When I went down there in            
          May and June, I helped her [Aline] look for places.”  Apparently,           
          Aline was staying in temporary lodgings.  Norman testified that             
          he spent time with Aline in such temporary lodging.  He testified           






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