- 6 - subject to conditions and limitations then in effect and not in dispute in this case, gross income does not include gain from the sale of property if during the 5-year period ending on the date of the sale, the property has been owned and used by the taxpayer as the taxpayer’s principal residence for periods aggregating 3 years or more. See sec. 121(a).1 Petitioner claims that the New Jersey residence was his principal residence from the time that he and his wife purchased it until the date in 1996 when he sold it. Relying upon section 121(a), petitioner argues that any gain realized from the sale of that house is therefore excludable from his income. According to respondent, the exclusion provided in section 121(a) does not apply to the sale of the New Jersey residence because that house was not petitioner’s principal residence for the requisite period prescribed in the statute. According to respondent, as of no later than the close of 1992, the New Jersey residence was no longer petitioner’s principal residence. Respondent points out that at that time, petitioner held a Florida driver’s license, had his truck registered in that State, was registered to vote there, and spent significant amounts of time in Florida during 1992 and each year thereafter. Respondent also points out that starting in 1994, 1 Sec. 121 was amended by sec. 312 of the Taxpayer Relief Act of 1997, Pub. L. 105-34, 111 Stat. 836, effective for sales and exchanges after May 6, 1997.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011