What exactly are "qualified acquisition costs"

[Anonymous]

I'm hoping I can pull from my IRA to cover the cost of inspections and appraisals so that enough of my savings will be left to make a smallish improvement post closing... and have a little liquid savings leftover. On the other hand, I don't want to pay a 10% penalty.

My Google-fu is, apparently, failing; as I can't seem to find a definition of "qualified acquisition costs".

Anyone have experience/knowledge?

[Anonymous]

CreditFitness asking-

"what are qualified acquisition costs".

That's gonna be flat screens, 4 wheelers, motorcycles, boats, playstations, and fire pits for the backyard after you move in and have guys over.   I tell my wife that stuff qualifies so I need to acquire them.

[Anonymous]

*snort*

[DallasLoanGuy]

do you have a a cpa?

i would ask them.

you would think that those costs would be allowed.

[Anonymous]

---

@Anonymous wrote:

I'm hoping I can pull from my IRA to cover the cost of inspections and appraisals so that enough of my savings will be left to make a smallish improvement post closing... and have a little liquid savings leftover. On the other hand, I don't want to pay a 10% penalty.

My Google-fu is, apparently, failing; as I can't seem to find a definition of "qualified acquisition costs".

Anyone have experience/knowledge?

---

I searched for "qualified acquisition costs ira irs.gov"

Here you go: www.irs.gov/publications/p590b/ch01.html#en_US_2014_publink1000230924

Relevant exerpt:

Qualified acquisition costs.   Qualified acquisition costs include the following items.

• Costs of buying, building, or rebuilding a home.

• Any usual or reasonable settlement, financing, or other closing costs.

[Anonymous]

I'd seen the the IRS code, it's just vague enough to be frustrating.

[Anonymous]

@Anonymous wrote:
I'd seen the the IRS code, it's just vague enough to be frustrating.

---

I'm not sure I understand what's confusing. Costs related to purchasing the home are 'qualified acquisition costs". Money you spend on other things, like new furniture, fixing broken stairs, etc, have nothing to do with purchasing the home and so aren't covered.

Maybe if you list the items that you are unsure about, we can help you.