Replies to post #291 on Taxes (TAX)

[ypsiCPA]

More on First-Time Homebuyer Credit

Purchase price includes more than the contract price (relevant for homes under $80,000)

Purchase price. The purchase price is the adjusted
basis of your home on the date you purchased it. This
includes certain settlement or closing costs (such as legal
fees and recording fees) and your down payment and
debt (such as a first or second mortgage or notes you
gave the seller in payment for the home). If you build, or
contract to build, a new home, your purchase price can
include costs of construction. For more information about
adjusted basis, see Pub. 551, Basis of Assets.