- 12 - From our perspective, the disparity between respondent's circumstantial evidence and the petitioners' evidence is due to petitioners' attempt to show that the improvements to the Fairway residence were begun and/or completed prior to June 21, 1990. Petitioners make this argument in order to rollover additional gain in the amount of $112,4704 in improvements to Fairway. By contending that they continuously used the Fairway residence from May 1990 on, petitioners counter one of respondent's arguments that the Fairway residence was uninhabitable due to the extensive improvements and disruption to the property. In an attempt to show that the Fairway residence's improvements were begun prior to June 21, 1990, petitioners contended that they had moved into the Fairway residence and stayed there throughout the period under consideration. This contention is apparently to give the appearance that the Fairway residence did not need or undergo extensive renovations after June 21, 1990. Although petitioners had purchased what they intended to be the permanent replacement residence (Fairway) 7 months before the June 21, 1990, deadline under section 1034, the Fairway residence was older and in need of extensive internal renovations. Petitioners were at all times acutely aware of the deadline and attempted to make plans to improve the Fairway residence prior to 4 The $112,470 would represent nearly one-half of a $238,380 gain realized on the Freemont property for which petitioners seek rollover under sec. 1034.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