Stuart M. Hughes and Genevieve O. Hughes v. Commissioner of Internal Revenue

450 F.2d 980, 28 A.F.T.R.2d (RIA) 5796, 1971 U.S. App. LEXIS 7557

Opinions

PER CURIAM:

The United States Tax Court upheld a deficiency assessed by the Commissioner of Internal Revenue in the Federal income tax of appellants, Stuart M. and Genevieve O. Hughes, for 1961. This determination resulted from the refusal to the taxpayers of the advantage, accorded by Internal Revenue Code of 1954, § 1034,¹ of the non-recognition of gain accruing upon the sale or exchange of residence property. In the Tax Court, after hearing and upon consideration of the essential facts, all of which had been stipulated by the parties, Judge Austin Hoyt wrote the opinion of the Court sustaining the assessment. 54 TC 1049. From the judgment thereon this appeal is prosecuted.

As we observe no error in the decision, we affirm on Judge Hoyt’s opinion.

Affirmed.

1 . “SEC. 1034. SALE OR EXCHANGE OF RESIDENCE.

(a) Nonrecognition of Gain. — If property (in this section called ‘old residence’) used by the taxpayer as his; principal residence is sold by him after December 31, 1953, and, within a period beginning 1 year before the date of such sale and ending 1 year after such date, property (in this section called ‘new residence’) is purchased and used by the taxpayer as his principal residence, gain (if any) from such sale shall be recognized only to the extent that the taxpayer’s adjusted sales, price (as defined in subsection (b)) of the old residence exceeds the taxpayer’s cost of purchasing the new residence.”