26 U.S.C. § 1400C : US Code - Section 1400C: First-time homebuyer credit for District of Columbia

Search 26 U.S.C. § 1400C : US Code - Section 1400C: First-time homebuyer credit for District of Columbia

(a) Allowance of credit
In the case of an individual who is a first-time homebuyer of a
principal residence in the District of Columbia during any taxable
year, there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to so much of the
purchase price of the residence as does not exceed $5,000.
(b) Limitation based on modified adjusted gross income
(1) In general
The amount allowable as a credit under subsection (a)
(determined without regard to this subsection and subsection (d))
for the taxable year shall be reduced (but not below zero) by the
amount which bears the same ratio to the credit so allowable as -

(A) the excess (if any) of -
(i) the taxpayer's modified adjusted gross income for such
taxable year, over
(ii) $70,000 ($110,000 in the case of a joint return),
bears to
(B) $20,000.
(2) Modified adjusted gross income
For purposes of paragraph (1), the term "modified adjusted
gross income" means the adjusted gross income of the taxpayer for
the taxable year increased by any amount excluded from gross
income under section 911, 931, or 933.
(c) First-time homebuyer
For purposes of this section -
(1) In general
The term "first-time homebuyer" means any individual if such
individual (and if married, such individual's spouse) had no
present ownership interest in a principal residence in the
District of Columbia during the 1-year period ending on the date
of the purchase of the principal residence to which this section
applies.
(2) One-time only
If an individual is treated as a first-time homebuyer with
respect to any principal residence, such individual may not be
treated as a first-time homebuyer with respect to any other
principal residence.
(3) Principal residence
The term "principal residence" has the same meaning as when
used in section 121.
(d) Carryforward of unused credit
(1) Rule for years in which all personal credits allowed against
regular and alternative minimum tax
In the case of a taxable year to which section 26(a)(2)
applies, if the credit allowable under subsection (a) exceeds the
limitation imposed by section 26(a)(2) for such taxable year
reduced by the sum of the credits allowable under subpart A of
part IV of subchapter A (other than this section and section
25D), such excess shall be carried to the succeeding taxable year
and added to the credit allowable under subsection (a) for such
taxable year.
(2) Rule for other years
In the case of a taxable year to which section 26(a)(2) does
not apply, if the credit allowable under subsection (a) exceeds
the limitation imposed by section 26(a)(1) for such taxable year
reduced by the sum of the credits allowable under subpart A of
part IV of subchapter A (other than this section and sections 23,
24, 25B, and 25D), such excess shall be carried to the succeeding
taxable year and added to the credit allowable under subsection
(a) for such taxable year.
(e) Special rules
For purposes of this section -
(1) Allocation of dollar limitation
(A) Married individuals filing separately
In the case of a married individual filing a separate return,
subsection (a) shall be applied by substituting "$2,500" for
"$5,000".
(B) Other taxpayers
If 2 or more individuals who are not married purchase a
principal residence, the amount of the credit allowed under
subsection (a) shall be allocated among such individuals in
such manner as the Secretary may prescribe, except that the
total amount of the credits allowed to all such individuals
shall not exceed $5,000.
(2) Purchase
(A) In general
The term "purchase" means any acquisition, but only if -
(i) the property is not acquired from a person whose
relationship to the person acquiring it would result in the
disallowance of losses under section 267 or 707(b) (but, in
applying section 267(b) and (c) for purposes of this section,
paragraph (4) of section 267(c) shall be treated as providing
that the family of an individual shall include only his
spouse, ancestors, and lineal descendants), and
(ii) the basis of the property in the hands of the person
acquiring it is not determined -
(I) in whole or in part by reference to the adjusted
basis of such property in the hands of the person from whom
acquired, or
(II) under section 1014(a) (relating to property acquired
from a decedent).
(B) Construction
A residence which is constructed by the taxpayer shall be
treated as purchased by the taxpayer on the date the taxpayer
first occupies such residence.
(3) Purchase price
The term "purchase price" means the adjusted basis of the
principal residence on the date such residence is purchased.
(f) Reporting
If the Secretary requires information reporting under section
6045 by a person described in subsection (e)(2) thereof to verify
the eligibility of taxpayers for the credit allowable by this
section, the exception provided by section 6045(e)(5) shall not
apply.
(g) Credit treated as nonrefundable personal credit
For purposes of this title, the credit allowed by this section
shall be treated as a credit allowable under subpart A of part IV
of subchapter A of this chapter.
(h) Basis adjustment
For purposes of this subtitle, if a credit is allowed under this
section with respect to the purchase of any residence, the basis of
such residence shall be reduced by the amount of the credit so
allowed.
(i) Application of section
This section shall apply to property purchased after August 4,
1997, and before January 1, 2006.