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Posted by John H. Fisher on January 7, 2007, 10:51 pm
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prucker wrote:
> Does anyone have the reference for the specific requirements
> for an expenses to qualify as a "rebuild" expense? I
> understand the closing costs and to build a home, but can't
> find info on the definition rebuild expenses. Thank you
You'll find the definitions for "repairs" and "improvements"
here:
http://www.irs.gov/pub/irs-pdf/p530.pdf
If you are under age 59, 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.
It must be used to pay qualified acquisition costs (defined
later) before the close of the 120th day after the day you
received it.
It must be used to pay qualified acquisition costs for the
main home of a first-time homebuyer (defined later) who is
any of the following.
Yourself.
Your spouse.
Your or your spouse's child.
Your or your spouse's grandchild.
Your or your spouse's parent or other ancestor.
When added to all your prior qualified first-time homebuyer
distributions, if any, total qualifying distributions cannot
be more than $10,000.
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