### Question
How is the term purchase price defined?


### Answer
The term **purchase price** is defined in *26 U.S.C. § 1400C* as the following:

> the adjusted basis of the principal residence on the date of acquisition (within the meaning of section 72(t)(8)(D)(iii))

#### Citation:
  - *26 U.S.C. § 1400C*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter W-District of Columbia Enterprise Zone**

