Elam v. Commissioner
United States Tax Court
Held: Petitioners must recognize gain on the sale of their former principal residence to the extent that the adjusted sales price exceeds the cost of purchasing new property and the existing improvements thereon plus the cost of erecting a guesthouse, which petitioners completed and used as a principal residence within 18 months after the sale.
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Held: Petitioners must recognize gain on the sale of their former principal residence to the extent that the adjusted sales price exceeds the cost of purchasing new property and the existing improvements thereon plus the cost of erecting a guesthouse, which petitioners completed and used as a principal residence within 18 months after the sale. Sec. 1034(a) and (c)( 5), I.R.C. 1954. No part of the cost of building the main house on the property may be offset against such adjusted sales price because the main house was not used as a principal residence within the 18-month period.
1Opinion of the Court
Nelson C. Elam and Adele B. Elam, Petitioners v. Commissioner of Internal Revenue, Respondent
Elam v. Commissioner
Docket No. 2861-70
United States Tax Court
58 T.C. 238; 1972 U.S. Tax Ct. LEXIS 131;
May 8, 1972, Filed
Decision will be entered under Rule 50.
Held: Petitioners must recognize gain on the sale of their former principal residence to the extent that the adjusted sales price exceeds the cost of purchasing new property and the existing improvements thereon plus the cost of erecting a guesthouse, which petitioners completed and used as a principal residence within 18 months after the sale.…
2Cases cited5 opinions
- Stolk v. CommissionerUnited States Tax Court · 1963
- Bayley v. CommissionerUnited States Tax Court · 1960
- Union Trust Co. of San Francisco v. WardellSupreme Court of the United States · 1922
- United States v. Edwin L. Sheahan and Deborah M. SheahanCourt of Appeals for the Fifth Circuit · 1963
- Elam v. CommissionerUnited States Tax Court · 1972