Brewer v. Comr., T.C. Memo. 2013-295

(petitioner, IRS agent, claimed FTHBC of $7,500 via I.R.C. Sec. 36 on new home purchased with girlfriend even though, at time of purchase, petitioner, owned interest in condominium; condo purchased in 2005, but petitioner moved out of condo in 2005 an moved in with girlfriend and allowed girlfriend's sister to live in condo rent-free; new home purchased in 2008; on loan application, petitioner listed condo address as current address and claimed mortgage interest and real estate taxes on 2006 Form 1040; IRS denied FTHBC because petitioner used condo as principal residence in prior three years; court disagreed with IRS based on fact that condo hadn't been petitioner's principal residence since mid-2005 and petitioner satisfied requirement of not owning home in prior three years).