Gates v. Commissioner
United States Tax Court
Ps owned and used a house as a principal residence for 2 years. Ps wanted to enlarge and remodel the house but were advised by an architect that more stringent building and permit restrictions had been enacted since the house was built. In 1999, rather than remodel the house, Ps voluntarily demolished it and constructed a new house on the property.
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Ps owned and used a house as a principal residence for 2 years. Ps wanted to enlarge and remodel the house but were advised by an architect that more stringent building and permit restrictions had been enacted since the house was built. In 1999, rather than remodel the house, Ps voluntarily demolished it and constructed a new house on the property. Ps never occupied the new house, and in 2000 they sold it for $ 1,100,000. Ps realized capital gain of $ 591,406 on the sale of the new house. On their untimely 2000 Federal income tax return Ps did not report any of the gain from the sale of the…
1Opinion of the Court
OPINION
Marvel, Judge:
Respondent determined a deficiency in petitioners’ Federal income tax of $112,553 and an addition to tax under section 6651(a)(1)1 of $11,211 for 2000. Petitioners filed a timely petition contesting respondent’s determination.
After concessions,2 the issues for decision are: (1) Whether petitioners may exclude from gross income $500,000 of capital gain from the sale in 2000 of property on Summit Road in Santa Barbara, California (Summit Road property), under section 121(a); and (2) whether petitioners are liable for the section 6651(a)(1) addition to tax.
Background
The…
2Cases cited18 opinions
- Perrin v. United StatesSupreme Court of the United States · 1979
- HIGBEE v. COMMISSIONER OF INTERNAL REVENUEUnited States Tax Court · 2001
- United States v. BoyleSupreme Court of the United States · 1985
- Muscarello v. United StatesSupreme Court of the United States · 1998
- Burlington Northern Railroad v. Oklahoma Tax CommissionSupreme Court of the United States · 1987
13 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Robinson v. Comm'rUnited States Tax Court · 2011
- Woods v. Comm'rUnited States Tax Court · 2011
- Renkemeyer, Campbell & Weaver, LLP v. CommissionerUnited States Tax Court · 2011
- Veriha v. Comm'rUnited States Tax Court · 2012
- Cohen v. United StatesDistrict Court, S.D. New York · 2014
9 more not listed; retrieve them via the Exa API.