- 2 - agreements and concessions by the parties, the remaining issues are: (1) Whether petitioners are entitled to roll over the gain on the sale of their residence under section 1034,1 (2) if entitled to roll over the gain whether any of the improvements made to the new principal residence qualify for the rollover, and (3) whether petitioners are liable for additions to tax for negligence for the 1987 and/or the 1988 taxable year(s). FINDINGS OF FACT2 Petitioners, at the time their petition was filed, resided in San Jose, California. Petitioners' 1988 residence (Freemont property) had not been listed for sale when they were approached by a real estate broker who presented an attractive offer that petitioners accepted. The sale occurred on June 21, 1988. The gain realized on the sale of the Freemont property was $238,380. The sale occurred quickly and petitioners, who were required to vacate, purchased as a transitional measure the model townhouse in a new development while they searched for a permanent replacement residence. Petitioners were aware that to obtain the rollover of any gain from the sale of the Freemont property under section 1034 they would have to obtain and use replacement 1 All section references are to the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure, unless otherwise indicated. 2 The parties’ stipulation of facts and attached exhibits are incorporated by this reference.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011