[Code of Federal Regulations]
[Title 26, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.44-1]

[Page 197]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.44-1  Allowance of credit for purchase of new principal residence after March 12, 1975, and before January 1, 1977.

    (a) General rule. Section 44 provides a credit against the tax 
imposed by chapter 1 of the Internal Revenue Code of 1954 in the case of 
an individual who purchases a new principal residence (as defined in 
paragraph (a) of Sec. 1.44-5) which is property to which section 44 
applies (as provided in Sec. 1.44-2). Subject to the limitations set 
forth in paragraph (b) of this section, the credit is in an amount equal 
to 5 percent of the purchase price (as defined in paragraph (b) of 
Sec. 1.44-5).
    (b) Limitations--(1) Maximum credit. The credit allowed under 
section 44 and this section may not exceed $2,000.
    (2) Limitation to one residence. Such credit shall be allowed with 
respect to only one residence of the taxpayer; the combined purchase 
prices of more than one new principal residence cannot be aggregated to 
increase the credit allowed.
    (3) Married individuals. In the case of a husband and wife who file 
a joint return under section 6013, the maximum credit allowed on the 
joint return is $2,000. In the case of married individuals filing 
separate returns the maximum credit allowable to each spouse is $1,000. 
Where a husband and wife do not make equal contributions with respect to 
the purchase price of the new principal residence, allocation of the 
credit is to be made in proportion to their respective ownership 
interests in such residence. For this purpose, tenants by the entirety 
or joint tenants with right of survivorship are treated as equal owners.
    (4) Certain other taxpayers. Where a new principal residence is 
purchased by two or more taxpayers (other than a husband and wife), the 
amount of the credit allowed will be allocated among the taxpayers in 
proportion to their respective ownership interests in such residence, 
with the limitation that the sum of the credits allowed to all such 
taxpayers shall not exceed $2,000. For this purpose, joint tenants with 
right of survivorship are treated as equal owners. For an example of the 
operation of this provision see Example (2) of Sec. 1.44-5(b)(2)(ii).
    (5) Application with other credits. The credit allowed by this 
section shall not exceed the amount of the tax imposed by chapter 1 of 
the Code for the taxable year, reduced by the sum of the credits 
allowable under--
    (i) Section 33 (relating to taxes of foreign countries and 
possessions of the United States),
    (ii) Section 37 (relating to retirement income),
    (iii) Section 38 (relating to investment in certain depreciable 
property),
    (iv) Section 40 (relating to expenses of work incentive program),
    (v) Section 41 (relating to contributions to candidates for public 
office), and
    (vi) Section 42 (relating to personal exemptions).

[T.D. 7391, 40 FR 55851, Dec. 2, 1975]