Jeffrey Thomas Olup and Louise Marie Olup - Page 6

                                        - 5 -                                         
          taxpayer’s attaining the age of 59-1/2 that are includable in               
          income are generally subject to a 10-percent early withdrawal tax           
          unless an exception to the tax applies.  Sec. 72(t)(1).                     
               As relevant herein, section 72(t)(2)(F) exempts                        
          distributions from the early withdrawal tax to the extent such              
          distributions are qualified first-time homebuyer distributions.             
          See sec. 72(t)(2)(F), (8).  The maximum amount of a distribution            
          that may be treated as a qualified first-time homebuyer                     
          distribution is $10,000.  Sec. 72(t)(8)(B).  Any amount of a                
          distribution that petitioners received in excess of $10,000                 
          remains subject to the 10-percent additional tax required by                
          section 72(t).  Id.                                                         
               A qualified first-time homebuyer distribution is defined in            
          section 72(t)(8)(A) as:                                                     
                    (A)  In general. -- * * * any payment or                          
               distribution received by an individual to the extent                   
               such payment or distribution is used by the individual                 
               * * * to pay qualified acquisition costs with respect                  
               to a principal residence of a first-time homebuyer who                 
               is such individual, the spouse of such individual, or                  
               any child, grandchild, or ancestor of such individual                  
               or the individual’s spouse.                                            
               As relevant herein, a first-time homebuyer means any                   
          individual “if such individual (and if married, such individual’s           
          spouse) had no present ownership interest in a principal                    
          residence during the 2-year period ending on the date of                    
          acquisition of the principal residence”.  Sec. 72(t)(8)(D)(i)(I).           







Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011