- 6 - property before they moved in. On December 27, 1995, the statutory warranty deed from Uprite Homes to the Webers was recorded in Washington County, and the closing on the Bowmen Lane property occurred. Petitioner went to Southern Oregon on December 26, 1995, to stay with his parents. On January 5, 1996, the closing occurred on petitioner’s purchase of the Portland house. Discussion Under sections 1001 and 61, taxpayers generally must recognize in the year of sale all gain or loss realized upon the sale or exchange of property. Section 1034, however, provides an exception which allows taxpayers to defer recognition of gain when sale proceeds are reinvested in a new principal residence.2 Section 1034(a) specifies that gain must be reinvested in property "purchased and used by the taxpayer as his principal residence" in order for nonrecognition treatment to be available. Respondent determined that petitioner must report gain from the sale of his personal residence in 1993 because a qualifying replacement residence was not purchased and used within 2 years as required by section 1034. The 2-year deadline for petitioner to reinvest in a new residence and thereby qualify for gain 2 Although sec. 1034 was repealed by sec. 312(b) of the Taxpayer Relief Act of 1997, Pub. L. 105-34, 111 Stat. 839, and the rollover provision was replaced by an expanded and revised sec. 121, sec. 1034 was in effect for the year at issue herein.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011