Home
Tax Articles
Tax FAQ
Introducing Our Firm
Our Services
Real Estate Taxletter
Need Help?
Other Websites
Site Map

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Connect on Google+

Can I use a construction loan for the First-Time Homebuyer Credit?

August 10, 2011


From:  Kaulana
Date:  10 Jul 2009

I am getting a construction loan. Can I use it for the First-Time Homebuyer Credit? If I donít have permanent financing in place but I occupy the home before December 1, 2009, will I still qualify for the credit?

Answer

Date:  31 Aug 2009

Hello Kaulana,

There is no language relating to financing in the law relating to the First-Time Homebuyer Credit. As long as you occupy the house before December 1, 2009 and you otherwise qualify (no phase out for income, no principal residence for the three-year period before the purchase, etc.), you should be able to claim the credit.

The purchase price is the tax basis or cost accumulated up to the date the residence is purchased, which is the date you occupy the residence when you construct the residence yourself.

See the article at www.realestateinvestingtax.com/first.shtml.

Good luck!
Mike Gray

We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.

Can I use a construction loan for the First-Time Homebuyer Credit?

Home | Real Estate Taxletter | Articles | FAQ | Introducing Michael Gray, CPA | Need Help? | Other Links


Michael Gray, CPA
2190 Stokes St., Suite 102
San Jose, California 95128-4512
(408) 918-3162
Fax (408) 998-2766
email: mgray@taxtrimmers.com
© 2016
Subscribe to
Michael Gray, CPA's
Real Estate Tax Letter
!

subscribe
unsubscribe