§235-113  Time for assessment of deficiencyattributable to gain upon sale of a residence.  (a)  If after December 31,1957, a taxpayer during a taxable year sells at a gain property used by thetaxpayer as the taxpayer's principal residence, the rules stated in thissection apply.

(b)  The statutory period for the assessment ofany deficiency attributable to any part of the gain referred to in subsection(a) of this section shall not expire before the expiration of three years fromthe date the department of taxation is notified by the taxpayer (in such manneras the department has prescribed or may prescribe) of the matters set out insubsection (c) of this section, and such deficiency may be assessed at any timebefore the expiration of the three-year period notwithstanding any otherprovision which would otherwise prevent such assessment.

(c)  The notice referred to in subsection (b)of this section shall inform the department of:

(1)  The taxpayer's cost of purchasing the newresidence which the taxpayer claims results in nonrecognition of any part ofthe gain referred to in subsection (a) of this section, or

(2)  The taxpayer's intention not to purchase a newresidence within the period specified in section 1034(a) of the InternalRevenue Code, or

(3)  A failure to make such purchase within suchperiod. [L 1959, c 277, pt of §14; am L Sp 1959 2d, c 1, §16; Supp, §121-45.2;HRS §235-113; gen ch 1985]