Terry Duane Beall and Joyce Engel Beall - Page 14

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          he would like to build a house on the lot for his own residence",           
          and for that reason it was suggested that title be changed from             
          Terry's Retirement Trust to his living trust.  This letter                  
          provides us with McKenzie's view of petitioners' intentions and             
          with an explanation for the change in title.  We note that                  
          petitioners purchased 3 Green Turtle, which was a vacant lot, 3             
          months after acquiring 20 The Point, and after the acquisition of           
          15 Sandpiper.                                                               
               Considering the facts and circumstances, during the relevant           
          period, we find that petitioners had the intent of remaining at             
          20 The Point from August 31, 1988, the date of acquisition, until           
          November 21, 1988, when their purchase of 15 Sandpiper was                  
               Fact of Abode                                                          
               Generally, for property to be "used by the taxpayer as his             
          principal residence" within the meaning of section 1034(a), a               
          taxpayer must physically occupy and live in the dwelling.                   
          Houlette v. Commissioner, 48 T.C. 350, 354 (1967); Stolk v.                 
          Commissioner, supra at 353-356.  It has long been recognized that           
          moving furniture into a house or spending weekends in a house               
          does not make that house a taxpayer's principal residence.  King            
          v. Commissioner, 72 T.C. 349, 355 (1979).  A taxpayer must live             
          in a house on a regular day-to-day basis in order for the house             
          to be his "principal residence" within the meaning of section               

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