Denniston v. Department of Revenue

CARLISLE B. ROBERTS, Judge.

Plaintiffs appealed from the defendant’s Order No. I 77-41, dated October 28,1977, assessing a deficiency in plaintiffs’ personal income tax for the tax year 1974. The facts have been stipulated by the parties and the case submitted on briefs.

In 1961, plaintiffs sold their personal residence, located in Belmont, California. A gain of $2,755 was realized which was not recognized for federal income tax purposes because plaintiffs purchased and occupied a new residence located in Palo Alto, California, within the time prescribed by the Internal Revenue Code of 1954, §…