- 3 - complete nonrecognition of gain if a replacement residence having a cost at least equal to the adjusted sale price of the old principal residence was purchased within 2 years before or after the sale of the old principal residence. Petitioner did not purchase a replacement residence within the time allowed by section 1034(a). Petitioner did not file Federal income tax returns for the tax years 1992 through 1996. Petitioner had gross income in excess of $35,000 in each of those years. OPINION Petitioner appears to argue that the Government is unjustly enriching itself by assessing and collecting a tax on the sale of her house because its sale and her inability to replace it were the consequences of her ex-husband's actions and his failure to provide adequate support. While we sympathize with the predicament petitioner now finds herself in, the revenue statutes provide no relief from paying tax on those grounds. Petitioner also seems to contend that either the fair market value or the appraised value at the time of her divorce should be used as the basis of the house in computing the gain realized. 1(...continued) the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure.Page: Previous 1 2 3 4 5 Next
Last modified: May 25, 2011