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deficiency may be assessed prior to the expiration of
such 3-year period notwithstanding the provisions of
any other law or rule of law which might otherwise bar
such assessment.
S. Rept. 781, 82d Cong., 1st Sess. (1951), 1951-2 C.B. 458, 566-
570 does not differ in any material respect from the House report
quoted above.
Significantly, the legislative history quoted above does not
distinguish between the period of limitations applicable to the
Commissioner’s determinations pertaining to the status of a
taxpayer’s old residence and the period of limitations applicable
to the Commissioner’s determinations pertaining to status of the
taxpayer’s new residence. That factor, considered in conjunction
with the statement in the legislative history excepting such
transactions from the general 3-year period of limitations, leads
us to conclude that Congress intended that the question of the
status of the taxpayer’s old residence would be subject to the
period of limitations prescribed in section 1034(j).
Our holding that the period of limitations set forth in
section 1034(j) is controlling in this matter is equally
applicable to respondent’s determination to disallow petitioners’
election to exclude $125,000 of the gain realized on the sale of
the Solvang property from gross income under section 121.
Although there is no provision for a period of limitations in
section 121, nor a specific reference to section 121 within the
general 3-year period of limitations under section 6501, section
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