- 10 -
the one-time exclusion under the 1997 tax law. We agree with
respondent.
In general, TRA 1997 sec. 312(a), 111 Stat. 836, amended
section 121 of the Internal Revenue Code to allow a taxpayer to
exclude from income up to $250,000 ($500,000 for married
individuals filing jointly) of gain on the sale of a residence.
Further, TRA 1997 section 312(a) provided a prorated exclusion by
reason of a change in place, health, or unforeseen circumstances.
Section 312 of TRA 1997 is effective for sales and exchanges
after May 6, 1997. TRA 1997 sec. 312(d), 111 Stat. 841.
In the instant case, petitioners sold their home on October
19, 1994. Petitioners, however, did not purchase a replacement
home because they exhausted their finances on Mrs. Rehberg’s
medical bills. Petitioners contend that using the gain from the
sale of their home to pay for medical expenses comports with the
the intent of TRA 1997. Unfortunately, petitioners’ date of sale
is well before May 6, 1997, which is the effective date of TRA
1997. Although we are sympathetic to petitioners’ plight, this
Court is without authority to extend the effective date of TRA
1997 to afford petitioners the benefits provided under the
statute. Buerer v. United States, 141 F. Supp.2d 611 (W.D.N.C.
2001) (denying relief to a taxpayer who sold her home on April
25, 1997); see, e.g., Henry v. Commissioner, T.C. Memo. 1982-469
n.2 (“the Courts are without authority to weigh the merits of the
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011