No, qualified acquisition costs include the following items:
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Costs of buying, building, or rebuilding a home.
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Any usual or reasonable settlement, financing, or other closing costs.
To qualify for treatment as a first-time homebuyer distribution, the distribution must meet all the following requirements:
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It must be used to pay qualified acquisition costs before the close of the 120th day after the day you received it.
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It must be used to pay qualified acquisition costs for the main home of a first-time homebuyer who is any of the following.
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Yourself.
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Your spouse.
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Your or your spouse's child.
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Your or your spouse's grandchild.
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Your or your spouse's parent or other ancestor.
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When added to all your prior qualified first-time homebuyer distributions, if any, total qualifying distributions can't be more than $10,000 (IRS).
To enter you exception into TurboTax:
- Login to your TurboTax Account
- Click on the "Search" on the top and type “1099-R”
- Click on “Jump to 1099-R” and enter your 1099-R
- Click "continue" after all 1099-R are entered and answer all the questions.
- Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount under "First home purchase" (up to $10,000).
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