Douglass H. and Suzanne M. Bartley - Page 9

                                        - 9 -                                         

          determined is a violation of their equal protection and due process         
          rights  because  section  1034  favors  wealthy  taxpayers  and             
          discriminates on the basis of age; (2) the gain from the sale of            
          their Mequon residence is "fictitious", resulting solely from               
          inflation, and because there was no "real gain", there is no income         
          subject to taxation; and (3) because the IRS does not recognize             
          either nominal or real losses on the sale of a residence, gain from         
          the sale of a residence cannot be taxed.4  Not surprisingly,                

               4    In their petition, petitioners state as follows:                  
                         a.  Taxing "gain" on the sale of our                         
                    residence has no rational basis and violates                      
                    the Equal Protection component of the 5th                         
                    Amendment Due Process Clause because:                             
                              (1) The tax invidiously                                 
                         discriminates in favor of wealthy                            
                         homeowners and against those less                            
                         fortunate.  The wealthier                                    
                         homeowner, who trades up to a more                           
                         expensive house, has no taxable                              
                         gain.  In contrast, the less                                 
                         affluent homeowner, who can't                                
                         afford a more expensive house or                             
                         must move into rental quarters,                              
                         gets taxed merely because he can't                           
                         come up with enough to buy anything                          
                         or because he can't afford to buy a                          
                         house of equivalent or greater                               
                              (2) The tax also invidiously                            
                         discriminates on the basis of age.                           
                         Those who are 55 or older get an                             
                         exclusion that no one else                                   
                         qualifies for.                                               
                         b.  Taxing the "gain" violates the Due                       

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011