### Question
How does Income Taxes define purchase price?


### Answer
Under *26 U.S.C. § 1400C*, **purchase price** is defined as:

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

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

