I took money out of an IRA. This was used for a down payment on a home purchase. However, this is not my first home purchase. Can i still use that as an deduction?

[Fern · Accepted solution]

The IRS allows an exception if you have not owned a home for the past two years. In this situation, you may be able to take an exclusion from penalty for an early IRA withdrawal.

However, this $10,000 penalty exclusion is a lifetime limit. If you have excluded $10,000 of an early IRA distribution for first time home purchase in the past, you cannot take the exclusion again.