Parker

MEMORANDUM *

Lee and Diane Parker appeal the tax court’s decision sustaining the Commissioner of Internal Revenue’s assessment of a deficiency on their 1991 tax returns. The facts and prior proceedings are known to the parties; they are not restated herein except as necessary. We affirm on the basis of the tax court’s memorandum disposition.

I

The tax court held that, in order to defer recognition of the gain on the 1991 sale of their principal residence under 26 U.S.C. § 1034 , the Parkers were required, within two years of the sale of their old residence, both to purchase and to put into use a new *612 principal residence which cost more than the sales price of their old principal residence. This conclusion of law is correct. 26 U.S.C. § 1034 (a) (setting forth that the “new residence” includes only “property ... purchased and used ... as [the] principal residence” within “a period ... ending 2 years” after the sale of the “old residence” (emphasis added)); see Kern v. Granquist, 291 F.2d 29, 33 (9th Cir.1961) (“We can only conclude, as did the trial court, that the Congress intended to permit the taxpayer to obtain the benefit, taxwise, only of so much of the cost of…