My client purchased their property 3 years ago and began building their home immediately on weekends and nights. They moved into the home on 12-19-2009. Does the total cost of the property and building count towards the credit or only the cost spent in 2008 and 2009 when these credits began?
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the basis would be total cost of construction without their own labor. -
Be sure to send proof...
and lots of it with the return. I have a client who built a very modest house himself on land he already owned. Tax records clearly show no house in 2008 but improvement value added in April 09. It was denied. Client has sent in all sorts of information, then had to wait awhile. He called the other day and was told that yes, they did receive it, but it had not been sent on to the proper destination. From what I hear, it is taking a long time and a lot of questions from the IRS before many of these people are actually receiving their money.Comment
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paid cash as constructed
The client paid cash for the materials as they constructed. What documentation would they use since no HUD-1 statement? All I have so far is where they applied for homestead exemption. They have no mortgage. License, pay stubs and/or auto registration can be obtained without a problem. Our county does not require an inspection of the home before moving in therefore that is out. Client has a mountain of receipts for matierals. Any help is appreciated.Comment
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Cash
If they do not have receipts for the items they paid cash for they will be out of luck. Make sure they can document what they have paid for everything to protect yourself.
DustyComment
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