Ratcliffe v. Comr., T.C. Memo. 2012-349

(petitioners, married couple, moved into husband's house after marriage; wife had no ownership interest in house, but wife signed deed of trust when house refinanced; couple divorced in 2008 and wife buys new home in 2009 and claimed first-time homebuyer tax credit; IRS disallowed credit based on ownership interest in prior marital home due to signing of deed of trust; wife's attorney prevails in obtaining FTHBTC for wife of $8,000 at IRS appeals level on basis that she signed deed of trust due to state law requirement; petitioner not entitled to attorney fees because IRS position substantially justified at time statutory notice of deficiency issue).