Vance Orpheus Bright, Jr. and Mary Frances Bright - Page 4




                                        - 3 -                                         
          See sec. 1034, repealed by sec. 312(b), Taxpayer Relief Act of              
          1997, Pub. L. 105-34, 111 Stat 839, effective May 6, 1997.                  
          Petitioners moved to the Palmyra house once it was completed in             
          April 1997.                                                                 
               The Cumberland house was put back on the market for sale in            
          April 1997, and was sold in August 1997.  Respondent concedes               
          that the gain from the sale of the Cumberland house was properly            
          excluded from petitioners’ gross income for 1997 pursuant to                
          section 121.  See sec. 121, enacted by sec. 312(a), Taxpayer                
          Relief Act of 1997, Pub. L. 105-34, 111 Stat. 836 (amended by               
          sec. 6005(e), Internal Revenue Service Restructuring and Reform             
          Act of 1998, Pub. L. 105-206, 112 Stat. 805).                               
               Additionally, petitioners purchased an unimproved lot in               
          Cumberland County in 1980 which they sold in 1997.  They reported           
          a capital gain of $1,597 on their 1997 Federal income tax return.           
          In 1995, petitioners purchased an unimproved lot in Fluvanna                
          County for $30,000.  They sold the property during that year for            
          $30,000 and reported the transaction on Schedule C, Profit or               
          Loss From Business.                                                         
               On Schedule C of petitioners’ 1996 Federal income tax                  
          return, petitioners deducted the following expenses relating to             
          the Cumberland house prior to that property’s becoming their                
          primary residence:                                                          








Page:  Previous  1  2  3  4  5  6  7  8  9  Next

Last modified: May 25, 2011