Davies v. Commissioner

OPINION

1. Section 103J¡, Issue. — Respondent’s position is that the apartment building was in reality held by a partnership, not a trust, and that the partnership entity sold the property. Since section 1034(a)2 requires that petitioner’s old residence be “sold by [her],” respondent contends that when a partner’s residence is owned and sold by the fartnershi'p and replaced by the partner, section 1034 does not apply. In the alternative, respondent argues that only 25 percent (petitioner’s beneficial share of the property) of 33⅜ percent (she resided in one of three apartments) of the gain is…