1031 Exchange Services

Section 1034 of the Internal Revenue Code (REPEALED)

Title 26 — Internal Revenue Code

Sub Title A — Income Taxes

Chapter 1 — Normal Taxes and Surtaxes

Subchapter O — Gain or Loss on Dispostion of Property

Part III — Common Non-Taxable Exchanges

Updated: Wednesday, July 19, 2006

Section 1034— Index

Section Reference

Section Description



Nonrecognition of Gain on Sale of Principal Residence



1034 (a)

In General


1034 (b)

Effective Date

Section 1034 — Nonrecognition of Gain on Sale of Principal Residence (Repealed)


Effective Date of Repeal

Repeal of section by section 312(b) of Pub.L. 105-34, applicable to sales and exchanges after May 6, 1997, with special rules for sales on or before August 5, 1997, and certain sales within 2 years of August 5, 1997, and exception relating to binding contracts, see section 312(d) [set out second] of Pub.L. 105-34, as amended by Pub.L. 105-206, Title VI, §  6005(e)(3), July 22, 1998, 112 Stat. 806, set out as a note under 26 U.S.C.A. §  121.

Section 1034 — Repealed — Nonrecognition of Gain on Sale of Principal Residence

(a) In general --

In the case of an individual --

(1) who sold his principal residence (within the meaning of section 1034 of the Internal Revenue Code of 1954) [this section] in 1977,

(2) who purchased property on which to construct a new principal residence (within the meaning of such section) --

(A) the construction of which commenced during such year, and

(B) the construction of which was terminated before completion,

(3) who brought an action, and obtained a judgment, against the builder who commenced construction of the new residence but failed to complete it,

(4) who suspended construction of such residence so that the partially constructed residence could be used as evidence in connection with the prosecution of the builder (without regard to whether it was so used), and

(5) who failed to meet the requirements of such section with respect to occupancy of the new principal residence because of such suspension of construction, the Secretary of the Treasury, in the administration of §1034(c) of the Internal Revenue Code of 1954 [subsec. (c) of this section] (relating to rules for application of §1034), shall apply paragraph (5) of such section as if 5 years were substituted for 2 years where it appears in the last sentence of such paragraph.

(b) Effective date --

The provisions of the first section of this Act [this note] shall apply with respect to taxable years beginning after December 31, 1976, and before January 1, 1983.



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