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beginning 2 years before the date of the sale and ending 2 years
after that date. Section 1034(a) provides that gain is
recognized only to the extent that the individual's adjusted sale
price of the old residence exceeds his or her cost of purchasing
the new residence.
Petitioner did not replace the Goleta Property within the
4-year statutory period. Although petitioner alleges that he did
because Rueben Moreno bought the Tamarac Property on petitioner's
behalf, we are not persuaded that such was the case. The name of
Rueben Moreno appeared on all of the documents surrounding the
closing of the Tamarac Property, Rueben Moreno was the only
person liable on the underlying debt, and Rueben Moreno was the
only person listed on the original deed. It is also relevant
that petitioner declared on his 1992 tax return that he had not
yet purchased a property to replace the Goleta Property, and that
Rueben Moreno had purchased the Tamarac Property before
petitioner's 1992 return was filed. The record does not support
petitioner's allegation that he was "on disability" at the time
that Rueben Moreno purchased the Tamarac Property. In any event
the fact remains that it was Rueben Moreno who made the purchase.
Even if we were to find that Rueben Moreno purchased the
Tamarac Property for petitioner's benefit, which we do not,
petitioner would still be outside the scope of section 1034.
Section 1034 is strictly construed, see, e.g., Boesel v.
Commissioner, 65 T.C. 378, 390 (1975); Lokan v. Commissioner,
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