Ill STAT. 830 PUBLIC LAW 105-34—AUG. 5, 1997 "(A) IN GENERAL. —The term 'qualified first-time homebuyer distribution' means any payment or distribution received by an individual to the extent such payment or distribution is used by the individual before the close of the 120th day after the day on which such payment or distribution is received to pay qualified acquisition costs with respect to a principal residence of a first-time homebuyer who is such individual, the spouse of such individual, or any child, grandchild, or ancestor of such individual or the individual's spouse. " (B) LIFETIME DOLLAR LIMITATION.—The aggregate amount of payments or distributions received by an individual which may be treated as qualified first-time homebuyer distributions for any taxable year shall not exceed the excess (if any) of— "(i) $10,000, over "(ii) the aggregate amounts treated as qualified first-time homebuyer distributions with respect to such individual for all prior taxable years. "(C) QUALIFIED ACQUISITION COSTS.— For purposes of this paragraph, the term 'qualified acquisition costs' means the costs of acquiring, constructing, or reconstructing a residence. Such term includes any usual or reasonable settlement, financing, or other closing costs. " (D) FIRST-TIME HOMEBUYER; OTHER DEFINITIONS.—For purposes of this paragraph— "(i) FIRST-TIME HOMEBUYER.—The term 'first-time homebuyer' means any individual if— "(I) such individual (and if married, such individual's spouse) had no present ownership interest in a principal residence during the 2-year period ending on the date of acquisition of the principal residence to which this paragraph applies, and "(II) subsection (h) or (k) of section 1034 (as in effect on the day before the date of the enactment of this paragraph) did not suspend the running of any period of time specified in section 1034 (as so in effect) with respect to such individual on the day before the date the distribution is applied pursuant to subparagraph (A), "(ii) PRINCIPAL RESIDENCE.— The term 'principal residence' has the same meaning as when used in section 121. "(iii) DATE OF ACQUISITION.—The term 'date of acquisition' means the date— "(I) on which a binding contract to acquire the principal residence to which subparagraph (A) applies is entered into, or "(II) on which construction or reconstruction of such a principal residence is commenced. "(E) SPECIAL RULE WHERE DELAY IN ACQUISITION.— If any distribution from any individual retirement plan fails to meet the requirements of subparagraph (A) solely by reason of a delay or cancellation of the purchase or construction of the residence, the amount of the distribution may be contributed to an individual retirement plan as
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