Early IRA withdrawal. Used part of it for a First Time Home Purchase. We paid $5,860 between Ernest Deposit, Appraisal & Inspection, then got $1319 back at closing.

[deatona43]

Can I claim the full $5,860 as the amount qualified to be tax exempt?

[KenH1 · Accepted solution]

For the 10% exception you can exclude up to $10,000 in home acquisition costs, so you should net out the $1319 from the $5860. From IRS Pub 590-B:

Qualified acquisition costs. Qualified acquisition costs include the following items. Costs of buying, building, or rebuilding a home. Any usual or reasonable settlement, financing, or other closing costs.