First time homebuyer credit

[Jesse]

I thought I was finished but.........for a newly constructed home if they entered into the building contract on or before April 30 and just this week received the occupancy permit are they eligible for the FTHC - which in this case would actually be the long time homeowner.

I apologize for asking before researching, I'm just in a hurry to get out of the office today!

[Jesse]

Oh my....

Deadlines
You must meet the required deadlines to be eligible to claim the credit. For other information on eligibility requirements, see our questions and answers.
•You must have bought — or entered into a binding contract to buy — a principal residence on or before April 30, 2010.
•If you entered into a binding contract by April 30, 2010, you must close (go to settlement) on the home on or before Sept. 30, 2010 (recent legislation extended the June 30 deadline previously in effect).


Questions and answers:
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)
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Thinking out loud:
The example uses 09/01/10 for completion of home which was after 06/30/10 so it did not qualify. Now with the extended deadline this same home would qualify?

[Jesse]

Bump.....

If the homeowners entered into a binding contract to have a home built before 04/30/2010 and have completed construction just this month, the date of occupancy would be considered the purchase date/date of closing. With the extension from 06/30/10 to 09/30/10 does anyone agree they will qualify for the credit?

Disagree?

[appelman]

I agree.

Provided the binding contract stipulated completion before October 1.

[sandigi]

I disagree

I believe the binding construction contract must say the home will be finished before July 1, 2010. I also have this situation.

The best I can find for my client is on his Construction Loan building agreement, it says "the Contractor agrees to use its best efffort to deliver the completed residence specified herein on or about 5-6 months from start of construction. (Start of construction is defined as the date on which footings are poured, . . . "

However, even the 5 months from the date the building permit was issued won't help him because it falls after 7/1/2010. If you have a certificate of occupancy before 7/1/10, you are in luck. Or something in a contract that says they will finish your new home by 6/30/10.

If your client entered into a building agreement on 4/30/10, he would need a speedy contractor to get it done in 2 months.

Form 5405 Instructions forLine B. "Enter the date you purchased the home (or the
date you first occupied it if you constructed your main
home)."