- 19 - applies here. The Solomons property was purchased by the partnership, not contributed to it. Under section 1034(a), the old residence must be "sold by" a taxpayer claiming nonrecognition treatment. The Solomons house was sold, along with the other partnership property, by Solomons, not by petitioner. Maintaining continuity of title is a key to receiving nonrecognition treatment under section 1034. See Starker v. United States, 602 F.2d 1341, 1351 (9th Cir. 1979). Title to the Solomons house was held in the name of Solomons, along with the other partnership property. Petitioner's new residence was titled in his and another's names. No continuity of title exists here. Petitioner argues that through an oral agreement with his partners he gained an interest in the Solomons house. Neither of the other Solomons partners corroborated petitioner's testimony. Petitioner, Fischer, and a Delta representative, Douglass Parran, Jr. (Parran), testified that each partner had the option to receive one of the residential units to be built as part of the development. Such an agreement would not constitute a transfer to petitioner of title in the Solomons house. Fischer testified that petitioner's use of the Solomons house was important to the partnership during the construction phase from a security standpoint and from a convenience standpoint (petitioner was overseeing the construction). However, petitioner, Fischer, and Parran also testified that, from the outset, Solomons intended toPage: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011