First-Time Homebuyer Credit - new construction

[Bill Tubbs]

Taxpayer is building his own home (he's a tradesman). He otherwise qualifies for the FTHB credit. When would he need to be complete with the house -- end of April or end of June?

I know that date of occupancy is considered to be the date purchased. Would the date that construction started then be considered to be the same as the date the offer was made? Thus as long as construction started by end of April and occupancy was by end of June then he'd qualify?

Bill

[Jesse]

Home Construction
Q. I plan to build a home and occupy it in 2009 or early 2010. Can I claim the first-time homebuyer credit now and use the funds toward the down payment or other ongoing construction costs?

A. No. To qualify for the first time home buyer credit, the residence must be purchased. By statute, a residence which is constructed by the taxpayer is treated as purchased on the date the taxpayer first occupies the residence. (05/06/09)


Q. I entered into a written home construction contract with a homebuilder before May 1, 2010, and the contract provides for completion of the home before July 1, 2010. Can I take the credit for the construction costs?

A. Your home construction contract qualifies as a binding contract, entered into on or before April 30, 2010, to close on the purchase of a principal residence on or before June 30, 2010. If you occupy the home on or before June 30, 2010, and meet the other requirements, you can take the credit. (12/17/09)

Q. I entered into a written home construction contract with a homebuilder before May 1, 2010, and the contract provides for completion of the home before September 1, 2010. Can I take the credit for the construction costs?

A. Your home construction contract does not qualify as a binding contract to close on the purchase of a principal residence on or before June 30, 2010. Therefore, you do not qualify for the two-month extension of the deadline for completing the purchase in the case of a binding contract. However, if you occupy the home on or before April 30, 2010, and meet the other requirements, you can take the credit. If you do not occupy the home on or before April 30, 2010, you cannot take the credit.
(12/17/09)

http://www.irs.gov/newsroom/article/0,,id=206293,00.html

Taxpayer is building his own home (he's a tradesman). He otherwise qualifies for the FTHB credit. When would he need to be complete with the house -- end of April or end of June?

I know that date of occupancy is considered to be the date purchased. Would the date that construction started then be considered to be the same as the date the offer was made? Thus as long as construction started by end of April and occupancy was by end of June then he'd qualify?

Bill

I think as long as they complete and occupy by 06/30/2010 they would qualify.

[Davc]

Not if the TP is building it himself. There is no binding contract so the 4/30 occupancy date rules.