### Question
Can you define what purchase price means?


### Answer
**Purchase price** is defined as the following in *26 U.S.C. § 36*:

> the adjusted basis of the principal residence on the date such residence is purchased

#### Citation:
  - *26 U.S.C. § 36*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart C-Refundable Credits**

