Another first time buyer question

[Art]

New client called yesterday and said that he acquired a home through forclosure with effective closing date of 12/30/08 for financing at the bank. However, due to complications with access permits and building code violations that had not be cleared he was not able to take physical possession until 2 weeks later. He will be doing major renovation to the home to bring it up to code. Does this effect the tax year for the first time buyers credit? ie can he fall under the 2009 rules or is he stuck with the 2008 rules?

Art

[WhiteOleander]

I believe the credit is based on the closing date. If he bought it in 2008, he will have to follow those rules for the credit.

[BP.]

he was not able to take physical possession until 2 weeks later.

Date of possession can count, but according to 5405 instructions, only with a home taxpayer constructs.