The only amount that is available for the exception, is that attributable to the First time home purchase.
Even if you are under age 591
2, you do not
have to pay the 10% additional tax on up to $10,000 of
distributions you receive to buy, build, or rebuild a first
home. To qualify for treatment as a first-time homebuyer
distribution, the distribution must meet all the following requirements. 1. It must be used to pay qualified acquisition costs (defined
next) before the close of the 120th day after the
day you received it. 2. It must be used to pay qualified acquisition costs for
the main home of a first-time homebuyer (defined below)
who is any of the following.
b. Your spouse.
c. Your or your spouse's child.
d. Your or your spouse's grandchild.
e. Your or your spouse's parent or other ancestor. 3. When added to all your prior qualified first-time homebuyer
distributions, if any, total qualifying distributions
cannot be more than $10,000.
If both you and your spouse are firsttime homebuyers
(defined later), each of you can receive
distributions up to $10,000 for a first home without
having to pay the 10% additional tax. 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.
Generally, you are a first-time
homebuyer if you had no present interest in a main home
during the 2-year period ending on the date of acquisition
of the home which the distribution is being used to buy,
build, or rebuild. If you are married, your spouse must also
meet this no-ownership requirement. Date of acquisition. The date of acquisition is the
You enter into a binding contract to buy the main
home for which the distribution is being used.
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