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mortgage of the Compton residence to purchase the Lee’s Summit
residence in order to avoid gain recognition in anticipation of
selling the Compton residence. Second, she purchased the new
residence within several months of the time period. Third, the
proceeds from the sale were used solely for home repairs and
related costs. Despite these reasons, a relaxation of the
express requirements of the statute is not within our
jurisdiction: We must apply the law as it is written by
Congress. See, e.g., Waters v. Commissioner, T.C. Memo. 1995-535
(“the period fixed by statute is a strict requirement for
obtaining the benefits of section 1034, and * * * we are without
authority to weigh the merits of the events precipitating delay
to determine whether the time limits may be waived or extended”).
We uphold respondent’s determination that petitioner is not
entitled to deferral of gain recognition on the sale of the
Compton residence under section 1034(a).4
We next turn to an examination of the amount of gain
petitioner recognized. Under section 1001, gain on the sale of
property generally is recognized in an amount equal to the excess
of the amount of money received over the adjusted basis of the
property. Under sections 1011(a) and 1012, the adjusted basis
4We need not discuss respondent’s alternative argument (and
the position taken in the notice of deficiency) that the Compton
residence ceased being petitioner’s personal residence and
instead became rental property prior to its sale.
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Last modified: May 25, 2011