PURSUANT TO
Decision will be entered for respondent.
COHEN,
Respondent determined a deficiency of $8,000 in petitioner's Federal income tax for 2009. The issue for decision is whether petitioner is entitled to a section 36(a) first-time homebuyer credit in relation to a residence he acquired from a trust of which he was a beneficiary.
All of the facts have been stipulated, and the stipulated facts are incorporated in our findings by this reference.
Petitioner is one of four beneficiaries of the J.E. Runyan Family Trust (trust) pursuant to a trust agreement dated October 27, 1993. The trust has been irrevocable as to petitioner's interest since the death of his father. Petitioner's mother, Kathleen P. Runyan, is the surviving settlor and trustee 2012 Tax Ct. Summary LEXIS 39">*40 of the trust.
On November 9, 2009, petitioner acquired a residence in Santa Fe, New Mexico, from the trust. Petitioner was a first-time homebuyer, as defined in section 36(c)(1), and used the residence as his principal residence, within the meaning of section 36(c)(2), after the purchase and at the time the petition was filed.
On his Federal income tax return for 2009, petitioner claimed an $8,000 credit pursuant to section 36 for the purchase of the Santa Fe residence. Respondent disallowed the credit in the notice of deficiency on which this case is based.
Section 36(a), as of the time that petitioner acquired his residence, allowed a credit not to exceed $8,000 to a first-time homebuyer for the purchase of a principal residence. Respondent agrees that petitioner was a first-time homebuyer and used the acquired residence as his principal residence.
The parties dispute the applicability of section 36(c)(3)(A)(i), which provides in material part: (A) In general.—The term "purchase" means any acquisition, but only if— (i) the property is not acquired from a person related to the person acquiring such property * * *
Petitioner notes that the "seller" in the transaction was shown on the documents as the trust, and the title company's lawyers handling the transaction urged him to complete the transaction in order to qualify for the credit. He also suggests that an Internal Revenue Service employee agreed with him that section 267(b)(6) is ambiguous and might mean that the fiduciary and the beneficiary have to be the same person for the transaction to be disqualified. Neither argument is relevant or, in any event, persuasive.
Section 267(a)(1) expressly disallows losses "between persons specified in any of the paragraphs of subsection (b)", which would mean losses
