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    vijis1976's Avatar
    vijis1976 Posts: 13, Reputation: 1
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    #1

    Nov 7, 2011, 09:54 PM
    10000$ withdrawn for buying house in INDIA
    Hi,

    I did withdraw 13202$ from my Traditional IRA. Can I use this amout for buying a house in India. In 5329 can I show 10000 exemption towards buying the house which will avoid 10% penalty on early withdrawal.

    Thanks
    Viji.S
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Nov 8, 2011, 06:55 AM
    If the money is used for acquisition costs associated with a first purchase of a main home for yourself, child, parent, or grandparent, then yes - you can avoid the 10% early withdrawal penalty on up to $10K of the withdrawal amount. You must use the money for this purpose within 120 days of the withdrawal.
    vijis1976's Avatar
    vijis1976 Posts: 13, Reputation: 1
    New Member
    		  
    #3

    Dec 9, 2011, 01:00 AM
    Thanks for your valuable answer

    If the money is used for buying house in my husband's name. Still it can be correct right? We bought a land and yet to construct a house.

    Also I heard that Primary home definition is not the only home or first home but there should not be any ?home purchased before 2 years of purchasing this house. Is my understanding correct?

    What kind of proof I need to send to IRS along with 5329 form and 1040 NR tax filing. Kindly give your advice.

    Thanks
    Viji.S
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