James E. Copley and Cynthia R. Copley - Page 18

          as the Charleston property; however, the Form 4562, Depreciation            
          and Amortization, attached to their return, listed the Charleston           
          property as being used 100 percent for rental purposes.  On the             
          Form W-2, DOA lists petitioners' residence as the Star City                 
               Even assuming, arguendo, that for purposes of section 1034             
          petitioners' old residence was the California property and their            
          new residence was the Charleston property, petitioners would not            
          qualify for a deferral under section 1034.  Petitioner testified            
          that he sold the California property on February 1, 1989, and               
          purchased the Charleston property on March 31, 1983.                        
          Consequently, petitioners would not be permitted to defer the               
          gain because they did not purchase the Charleston property within           
          2 years before or after the date on which they sold the                     
          California property.  The time requirement of section 1034(a)               
          must be strictly complied with.  Bayley v. Commissioner, 35 T.C.            
          288 (1960).  If the Morgantown property was petitioners' new                
          residence, petitioners are also not entitled to deferral under              
          section 1034 because they offered no evidence regarding the date            
          the Morgantown property was purchased or how much they paid.                
          Respondent is sustained on this issue.                                      
          Issue 8.  Addition to Tax                                                   
               The final issue for decision is whether petitioners are                
          liable for an accuracy-related penalty for the taxable year 1990.           
          Section 6662(a) and (b)(1) imposes an accuracy-related penalty              

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011