Lee F. Parker and Diane K. Parker - Page 1

          T.C. Memo. 1999-347                                                         

                               UNITED STATES TAX COURT                                

                  LEE F. PARKER AND DIANE K. PARKER, Petitioners v.                   
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 9590-98.              Filed October 20, 1999.               

                    For purposes of deferring gain on the sale of their               
               former residence under sec. 1034, I.R.C., Ps sought to                 
               include expenditures made in the construction of an                    
               unfinished dwelling structure.  The structure was located on           
               the same lot as the new residence purchased by Ps, and Ps              
               intended eventually to use both buildings for their                    
               residential purposes.  At the close of the 2-year statutory            
               period for reinvestment and deferment of gain, Ps had not              
               yet moved into the new structure and were instead using it             
               largely as a workshop area.  On the facts, Held: Ps have not           
               placed the structure into residential use as required by               
               sec. 1034, I.R.C., and are thus not entitled to include its            
               costs in order to defer recognition of gain on the sale of             
               their former residence.  R’s determination of a deficiency             
               is sustained.                                                          

Page:   1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011