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After concessions by the parties,1 the only issue for
decision is: Whether pursuant to section 1034(a), petitioner may
defer recognition of the gain from the sale of his principal
residence in Livermore, California, in excess of the amount
allowed by respondent.2 We hold he may as set out below.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
The stipulated facts and the accompanying exhibits are
incorporated into our findings by this reference. At the time
the petition in this case was filed, petitioner resided in
Clayton, California.
For 1988, petitioner did not file a Federal income tax
return, nor did he pay any Federal income tax for that year,
either through withholdings or estimated tax payments. In 1988,
petitioner had taxable interest income of $13,416. On December
31, 1988, petitioner was unmarried, and he did not have any
dependents. To calculate the deficiency in issue, respondent
used the rate applicable to single persons.
1 For 1988, the taxable year in issue, petitioner concedes
that he is liable for additions to tax under secs. 6651(a) and
6654(a), computed on any deficiency in tax for which we determine
he is liable.
Both parties concede that each of the 51 acres of the
Clayton property purchased by the petitioner should be considered
to be of equal value.
2 All section references are to the Internal Revenue Code in
effect for the year in issue, and all Rule references are to the
Tax Court Rules of Practice and Procedure, unless otherwise
indicated. All dollar amounts are rounded to the nearest dollar,
unless otherwise indicated.
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