United States v. Edwin L. Sheahan and Deborah M. Sheahan

WISDOM, Circuit Judge.

This is an appeal by the United States from a judgment of the district court granting the taxpayers’ claim for a refund based on Section 1034 of the Internal Revenue Code of 1954. This section allows a taxpayer, under certain conditions, to make a tax free sale of his “principal residence”, if within a year he buys and “uses” another principal residence. The question for decision is whether the evidence is sufficient to sustain the jury’s verdict that the taxpayers “used” their newly purchased property as their “principal residence” within one year from the date of the…