Pittman v. Commissioner of Internal Revenue, 031615 FEDTAX, 26575-12

Docket Nº:26575-12
Opinion Judge:GOEKE, Judge
Party Name:ADA MAE PITTMAN, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Attorney:Ada Mae Pittman, pro se. Christopher A. Pavilonis and A. Gary Begun, for respondent.
Case Date:March 16, 2015
Court:United States Tax Court
 
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T.C. Memo. 2015-44

ADA MAE PITTMAN, Petitioner

v.

COMMISSIONER OF INTERNAL REVENUE, Respondent

No. 26575-12

United States Tax Court

March 16, 2015

Ada Mae Pittman, pro se.

Christopher A. Pavilonis and A. Gary Begun, for respondent.

MEMORANDUM OPINION

GOEKE, Judge

Respondent determined a $7, 500 deficiency in petitioner's Federal income tax for 2008 and a $1, 500 accuracy-related penalty under section 6662.1 Respondent has conceded that pursuant to Rand v. Commissioner, 141 T.C. 376, 395-396 (2013), the accuracy-related penalty under section 6662(a) does not apply. Accordingly, the only remaining issue for our decision is whether petitioner is entitled to the first-time homebuyer credit provided in section 36. For the reasons explained herein, we hold that petitioner is not entitled to the first-time homebuyer credit.

Background

All the facts in evidence have been stipulated and are so found. Petitioner resided in Florida when she filed the petition.

On January 22, 2007, James Piotrowski, Jr., entered into an agreement to lease to petitioner the residence at 8348 Pepperwood Drive, Jacksonville, Florida (Pepperwood residence).2 On January 22, 2007, Piotrowski and petitioner also entered into an option contract for petitioner to acquire the Pepperwood residence which expired January 31, 2008. Petitioner was required to meet certain conditions in order to exercise the option contract, including closing on the purchase of the home; failure to meet these conditions would result in the option contract's becoming void. Petitioner paid a $1, 250 option fee that would be applied to the purchase price if the option contract was exercised. Petitioner also paid an additional $150 per month to be applied against the purchase price if the option contract was exercised. Petitioner did not exercise the option contract because she was unable to obtain adequate financing for the purchase. Petitioner and Piotrowski never executed a sales contract for the Pepperwood residence.

Piotrowski filed for chapter 7 bankruptcy on November 26, 2008.3 On March 9, 2009, petitioner filed an adversary complaint against Piotrowski because of his alleged failure to sell the Pepperwood residence to her. Petitioner's bankruptcy court pleadings indicate she never purchased the Pepperwood residence and never acquired title to it. Petitioner contended that Piotrowski...

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