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1034(g) to be treated as a single taxpayer for purposes of
determining the old residence's adjusted sale price, the new
residence's cost, the gain rolled over, and the new residence's
basis. Sec. 1034(g); sec. 1.1034-1(f), Income Tax Regs. A
section 1034(g) special election cannot be made in this case
because both spouses did not reside in the husband’s former
residence.
In February 1989, petitioner wife transferred title in the
King of Prussia property, which was owned solely by her, to
herself and her husband, for consideration of $1. The deed that
transferred ownership in the King of Prussia property did not
specify whether the tenancy that was created was a joint tenancy
or a tenancy by the entirety. Under Pennsylvania law, when
married persons take title to a piece of property in the name of
husband and wife, a presumption arises that such title vested in
them by entirety, and because there is nothing in this record
contradicting that presumption, we find that such conveyance
created a tenancy by the entirety in the new residence. See
Commissioner v. Estate of Bosch, 387 U.S. 456 (1967); In re
Meyer’s Estate (No. 1), 232 Pa. 89, 81 A. 145 (1911). The
transfer of petitioner wife's interest in her residence to
petitioner husband constituted a nontaxable gift under section
1041.5 Pursuant to section 1041, the basis of the transferee
5SEC. 1041. TRANSFERS OF PROPERTY BETWEEN SPOUSES OR
(continued...)
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