### Question
How is the "date of acquisition" defined?


### Answer
The term **date of acquisition** is defined in *26 U.S.C. § 72* as follows -

> the date—



(I) on which a binding contract to acquire the principal residence to which subparagraph (A) applies is entered into, or



(II) on which construction or reconstruction of such a principal residence is commenced

#### Citation:
  - *26 U.S.C. § 72*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART II-ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME**

