Phillip Moreno - Page 6

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          T.C. Memo. 1979-380; Bazzell v. Commissioner, T.C. Memo.                    
          1967-101, and the key to nonrecognition afforded therein turns on           
          maintaining continuity of title, Starker v. United States,                  
          602 F.2d 1341, 1351 (9th Cir. 1979); Allied Marine Sys., Inc. v.            
          Commissioner, T.C. Memo. 1997-101; see also Edmondson v.                    
          Commissioner, T.C. Memo. 1996-393.  When an individual disposes             
          of his or her residence, the new residence must be placed in the            
          taxpayer's name to defer gain under section 1034.  Marcello  v.             
          Commissioner, 380 F.2d 499, 502 (5th Cir. 1967), affg. on this              
          issue and remanding on other issues T.C. Memo. 1964-299 (gain               
          recognized where title to the new residence was placed in the               
          name of the taxpayer's mother); Snowa v. Commissioner, T.C. Memo.           
          1995-336 (gain recognized where the divorced taxpayer purchased a           
          new residence where the title to the new residence was jointly              
          placed in the names of the taxpayer and her new spouse and the              
          taxpayer's cost of purchasing her interest in the new residence             
          exceeded the adjusted sale price for her interest in the old                
          residence); May v. Commissioner, T.C. Memo. 1974-54 (gain                   
          recognized where title to the new residence was placed in the               
          name of the taxpayer's daughter); see also De Ocampo v.                     
          Commissioner, T.C. Memo. 1997-161; sec. 1.1034-1(b)(9), Income              
          Tax Regs.  If there is a shift in title from the taxpayer to                
          someone other than the taxpayer, nonrecognition under section               
          1034 is usually denied.  Marcello v.  Commissioner, supra.                  






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