Curtis B. Perry Laura L. Perry v. Commissioner of Internal Revenue

CYNTHIA HOLCOMB HALL, Circuit Judge:

We are asked to consider the application of I.R.C. section 1034 to property relinquished in a divorce settlement. The tax court determined that a taxpayer could not defer recog nition of gain from the sale of his former marital residence. The taxpayer had vacated the property permanently, intending never to return, pursuant to a divorce settlement which gave his former wife an exclusive right of occupancy. We have jurisdiction under 26 U.S.C. § 7482, and affirm.

I

Petitioner Curtis B. Perry lived with his former wife for five years in their Irvine, California…