- 2 - After concessions, the remaining issue for decision is whether petitioner's gain from the sale of her residence in 1991 must be included in her taxable income for that year. FINDINGS OF FACT Some of the facts have been stipulated and are so found. The stipulation of facts and the attached exhibits are incorporated herein by this reference. Petitioner resided in Lexington, Kentucky, when the petition was filed. Petitioner was divorced in February 1986. Before the divorce, petitioner and her husband were joint owners of a house located at 500 Clinton Road, Lexington, Kentucky (the house). Pursuant to the divorce decree and property agreement, petitioner's ex-husband was required to convey his interest in the house to petitioner. Petitioner timely filed a 1991 Federal income tax return. The 1991 return includes Form 2119, Sale of Your Home, which discloses that petitioner sold the house on July 2, 1991. The Form 2119 reports the amount realized on the sale as $197,142, the basis as $127,831, and the gain on sale as $69,311. Petitioner indicated on her Form 2119 that she intended to replace her house within the replacement period provided by section 1034(a).1 Section 1034(a) provided, in general, for the 1Unless otherwise indicated, all section references are to (continued...)Page: Previous 1 2 3 4 5 Next
Last modified: May 25, 2011