Limitations
(1) Dollar limitation
(1)Dollar limitation#
(A) In general Except as otherwise provided in this paragraph, the credit allowed under subsection (a) shall not exceed $8,000.
(B) Married individuals filing separately In the case of a married individual filing a separate return, subparagraph (A) shall be applied by substituting “$4,000” for “$8,000”.
(C) Other individuals If two 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 $8,000.
(D) Special rule for long-time residents of same principal residence In the case of a taxpayer to whom a credit under subsection (a) is allowed by reason of subsection (c)(6), subparagraphs (A), (B), and (C) shall be applied by substituting “$6,500” for “$8,000” and “$3,250” for “$4,000”.
(1)(A)In general#
Except as otherwise provided in this paragraph, the credit allowed under subsection (a) shall not exceed $8,000.
(1)(B)Married individuals filing separately#
In the case of a married individual filing a separate return, subparagraph (A) shall be applied by substituting “$4,000” for “$8,000”.
(2)Limitation based on modified adjusted gross income#
(A) In general The amount allowable as a credit under subsection (a) (determined without regard to this paragraph) for the taxable year shall be reduced (but not below zero) by the amount which bears the same ratio to the amount which is so allowable as— (i) the excess (if any) of— (I) the taxpayer’s modified adjusted gross income for such taxable year, over (II) $125,000 ($225,000 in the case of a joint return), bears to (ii) $20,000.
(B) Modified adjusted gross income For purposes of subparagraph (A), 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.
(2)(A)In general#
The amount allowable as a credit under subsection (a) (determined without regard to this paragraph) for the taxable year shall be reduced (but not below zero) by the amount which bears the same ratio to the amount which is so allowable as—
(i) the excess (if any) of— (I) the taxpayer’s modified adjusted gross income for such taxable year, over (II) $125,000 ($225,000 in the case of a joint return), bears to
(ii) $20,000.
(2)(A)(i)#
the excess (if any) of—
(I) the taxpayer’s modified adjusted gross income for such taxable year, over
(II) $125,000 ($225,000 in the case of a joint return), bears to
(3)Limitation based on purchase price#
No credit shall be allowed under subsection (a) for the purchase of any residence if the purchase price of such residence exceeds $800,000.
(4)Age limitation#
No credit shall be allowed under subsection (a) with respect to the purchase of any residence unless the taxpayer has attained age 18 as of the date of such purchase. In the case of any taxpayer who is married (within the meaning of section 7703), the taxpayer shall be treated as meeting the age requirement of the preceding sentence if the taxpayer or the taxpayer’s spouse meets such age requirement.