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purchaser. Dettmers v. Commissioner, 430 F.2d 1019, 1023 (6th
Cir. 1970), affg. 51 T.C. 290 (1968); Derr v. Commissioner, supra
at 724; Baird v. Commissioner, supra at 124.
In California, a grant deed evidencing the transfer of title
takes effect upon delivery by the grantor, or, if placed in
escrow, upon performance of the prescribed conditions and
delivery by the depositary. Cal. Civ. Code secs. 1054, 1057
(West 1982); Blumenthal v. Liebman, 240 P.2d 699, 703 (Cal. Dist.
Ct. App. 1952). In the present case, we agree with respondent
that the relevant property transfers occurred on August 1, 1989,
and August 7, 1991, the respective settlement dates of the
transfers. Although petitioner contends that he made a deposit
on his new residence and moved into the home in July 1991, he has
not otherwise shown that he assumed the burdens/risks of
ownership prior to the passage of title on August 7, 1991.4 From
these facts, we are compelled to conclude that petitioner failed
to meet the statutory requirements of section 1034.
While we sympathize with petitioner's plight--he undoubtedly
intended and diligently attempted to purchase a new residence
within the 2-year period required for the nonrecognition of gain
from the sale of his old residence--we are powerless to move a
line Congress has drawn. We hold that petitioner has failed to
4 Petitioner has not shown, for example, that he was
responsible for and/or paid property taxes on his new home, or
that he maintained insurance on the property, for any period
prior to the date of settlement.
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