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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...)
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