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February 19, 2009

Date of Acquisition

Your Guide

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Definition

As it relates to a first time home buyer,  is the date  on which a binding contract to acquire the principal residence, or the date on which construction or reconstruction of such a principal residence is commenced.

A first-time homebuyer distribution used to buy, build or rebuild a principal residence that is a first-time home, is not subject to the early distribution penalty.

Referring Cite

IRC §72(t)(2)(F);

Additional Helpful Information

A 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.

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

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