James T. and Goldie L. Ryan - Page 2

                                        - 2 -                                         

          under section 1034.  We hold that they may not.  In so holding,             
          we conclude that petitioners failed to establish that they sold             
          their old residence less than 2 years after they bought their new           
          residence.                                                                  
               The parties agree that, if petitioners must recognize gain             
          on the sale of the old residence, respondent erred in determining           
          a deficiency for 1989 and petitioners must recognize gain in                
          1991, the year they sold it.                                                
               Unless otherwise indicated, section references are to the              
          Internal Revenue Code in effect for the years in issue.  Rule               
          references are to the Tax Court Rules of Practice and Procedure.            
                                     Background                                       
               The facts have been fully stipulated under Rule 122 and are            
          so found.                                                                   
          A.   Petitioners                                                            
               Petitioners resided in Clackamas, Oregon, when they filed              
          the petition in this case.                                                  
               In 1988, petitioners owned a home at 740 Fifth Avenue, Blue            
          Lake, California (the Blue Lake residence, or Blue Lake                     
          property).  The Blue Lake property was petitioners' principal               
          residence until August 5, 1988.  Petitioners had mortgages on               
          the Blue Lake property with Home Federal Bank in San Diego,                 
          California, and Beneficial Finance in Eureka, California.                   







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

Last modified: May 25, 2011