Page:United States Statutes at Large Volume 89.djvu/93

 PUBLIC LAW 94-12—MAR. 29, 1975

89 STAT. 3 3

" (b) LIMITATIONS.—

" (1) MAXIMUM CREDIT.—The credit allowed under subsection (a) may not exceed $2,000. " (2) LIMITATION TO ONE RESIDENCE.—The credit under this section shall be allowed with respect to only one residence of the taxpayer. " (3) MARRIED INDIVIDUALS.—In the case of a h u s b and and wife

who file a joint return under section 6013, the amount specified 26 USC 6013. under paragraph (1) shall apply to the joint return. I n the case of a married individual filing a separate return, paragraph (1) shall be applied by substituting '$1,000' for '$2,000'. "(4)

CERTAIN OTHER TAXPAYERS.—In the case of

individuals

to whom paragraph (3) does not apply who together purchase the same new principal residence for use as their principal residence, the amount of the credit allowed under subsection (a) shall be allocated among such individuals as prescribed by the Secretary or his delegate, b u t the sum of the amounts allowed to such individuals shall not exceed $2,000 with respect to that residence. "(5)

APPLICATION W I T H OTHER CREDITS.—The credit

allowed

by subsection (a) shall not exceed the amount of the tax imposed by this chapter for the taxable year, reduced by the sum of the credits allowable under sections 33, 37, 38, 40, 41, and 42. 26 USC 33, 37, " (c) DEFINITIONS. — For purposes of this section— 38, 40, 41, 42. " (1) N E W PRINCIPAL RESIDENCE.—The term 'new p r i n c i p a l resi-

dence' means a principal residence (within the meaning of section 1034), the original use of which commences with the taxpayer, and includes, without being limited to, a single family structure, a residential unit i n a condominium or cooperative housing p r o j ect, and a mobile home. " (2) PURCHASE PRICE.—The term 'purchase price' means the adjusted basis of the new principal residence on the date of the acquisition thereof. " (3) PURCHASE.—The term 'purchase' means any acquisition of property, but only if— " (A) the property is not acquired from a person whose relationship to the person acquiring it would result i n 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 " (B) the basis of the property in the hands of the person acquiring it is not determined— " (i) i n whole o r i n part by reference to the adjusted basis of such property in the hands of the person from whom acquired, or " ( i i) under section 1014(a) (relating to property acquired from a decedent). " (d) RECAPTURE FOR CERTAIN DISPOSITIONS.—

" (1) IN GENERAL.—Except as provided in paragraph s (2) and (3), if the taxpayer disposes of property with respect to the purchase of which a credit was allowed under subsection (a) a t any time within 36 months after the date on which he acquired it (or, in the case of construction by the taxpayer, on the d a y on which he first occupied i t) as his principal residence, then the tax imposed under this chapter for the taxable year in which termi-

26 USC 1034.

26 USC 267, ^^^*

26 USC 1014.

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