The IRS provides issuers of qualified mortgage bonds, as defined in IRC Sec. 143, and issuers of mortgage credit certificates, as defined in IRC Sec. 25(c), with (1) the nationwide average purchase prices for residences located in the United States, and (2) average area purchase price safe harbors for residences located in statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam. Complying with these provisions requires you to work closely with your provider of accounting services to ensure the correct following of accounting procedures.
Average area purchase price safe harbors for single-family and two to four-family residences in Metropolitan Statistical Areas (MSAs), and for certain counties and county equivalents are listed in the revenue procedure. If no purchase price safe harbor is available for a statistical area, the safe harbor for “All Other Areas” ($534,640 for one unit) may be used for that statistical area. The nationwide average purchase price is $503,300. Rev. Proc. 2023-22.
If you need help in thoroughly understanding purchase price-safe harbors, contact our auditors in West Palm Beach, Florida. You may also give us a call: 954.927.5900 | sdaviscpa.com/contact-us
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