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First-Time Home Buyer

Last Updated March 25, 2009


An individual (and if married, such individual's spouse) who had no present ownership interest in a principal residence during the 2-year period ending on the date of acquisition of the principal residence to which a first-time homebuyer distribution applies.

If a participant is married, his/her spouse must also satisfy the  first-time homebuyer  requirement in order for it to apply


Referring Cite

IRC §72(t)(2)(F); Treas. Reg. § 1.121-3, Treas. Reg. § 1.1034-1(d)(1)

Additional Helpful Information

  • Principal residence may include a houseboat, a house trailer, or stock held by a tenant-stockholder in a cooperative housing corporation  , if the dwelling which the taxpayer is entitled to occupy as such stockholder is used by him as his principal residence. Property used by the taxpayer as his principal residence does not include personal property such as a piece of furniture, a radio, etc., which, in accordance with the applicable local law, is not a fixture.
  • The term "date of acquisition" means the date -
    • on which a binding contract to acquire the principal residence, or
    • on which construction or reconstruction of such a principal residence is commenced