Martin Feldman and Lynne Z. Gold-Bikin - Page 8

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          Cir. 1967), affg. T.C. Memo. 1964-299 (gain recognized where                
          title to new residence was placed in the name of the taxpayer's             
          mother); Snowa v. Commissioner, T.C. Memo. 1995-336 (gain                   
          recognized where divorced taxpayer purchased new residence where            
          title to new residence was jointly placed in the names of                   
          taxpayer and her new spouse and the taxpayer’s cost of purchasing           
          her interest in the new residence exceeded the adjusted sale                
          price for her interest in old residence); May v. Commissioner,              
          T.C. Memo. 1974-54 (gain recognized where title to new residence            
          was placed in the name of the taxpayer's daughter).  Generally,             
          if there is a shift in title from the taxpayer to someone other             
          than the taxpayer, then the nonrecognition provided for in                  
          section 1034 is denied.  Marcello v. Commissioner, supra.                   
               Accordingly, unintended recognition of gain may arise when a           
          married taxpayer’s contribution to the purchase price of a new              
          residence is less than his or her share of the sale price                   
          received from the old residence, and title to the new residence             
          is held in a different way than it was held in the old residence.           
          Cf. Murphy v. Commissioner, 103 T.C. 111 (1994).  Recognizing               
          that difficulties may arise when married taxpayers buy and sell             
          property, section 1034(g) provides a limited exception to the               
          general ownership and purchase requirements as between spouses.             
          Where both the old residence and the new residence are used by              
          the taxpayer and the taxpayer's same spouse as their principal              
          residence, they can file a special consent election under section           




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