Question
First time home buyer tax credit question...?
My husband and I are first-time homebuyers and we're building a house right now. In our contract, it states that the house will be completed by November 24th or they will reimburse us $8,000. It's looking like we may not close on the house until after the 24th, and we're dangerously close to not making the December 1st deadline for the 8,000 credit. With this said, is there a way for us to get the tax credit early? Also, our contract does not mention anything about the tax credit; it says that we'll be reimbursed $8,000 if it's not closed by the 24th of November. Would we be able to get the reimbursement from the builder AND get the tax credit, (in the case where we close before the 1st but after the 24th)? Oh...and I forgot to mention, (not sure if it matters or not) we're building in Ohio. Thank you so much for your help!
4 weeks ago - 7 answers
Best Answer
Chosen by Asker
Yes, if you close by Dec 1 it seems you would get both the credit and the rebate. You can't get the credit early.
by Landlord
4 weeks ago
Asker's Rating: 
Other Answers
You would have to consult with a lawyer to see if you could get 8k from the builder for not finishing on time. The tax credit may be extended until next April, so you probably are going to be home free on that one. The other part of whether you can collect effectively twice is a sticky one, especially if the contract states or it was understood you would be reimbursed the 8k because of missing the tax credit deadline.
by My Take on It- 4 weeks ago
You cannot get the credit without having the house complete and signed off by the builder and inspector. The IRS is VERY aggeresively looking into these kinds of fraudulent claims for the credit. If you miss it, you miss it.
by Ryan M- 4 weeks ago
It depends on your loan type & sale price, but I don't think any mortgage company is going to let the builder give you $8000 unless it is for closing costs & prepaid items. The house can close no later than Nov 30. It does look like the credit will be extended so you wil probably be safe.
by Lisa L- 4 weeks ago
You have to CLOSE on the house by the deadline of Nov 30th to qualify. You need to read your contract again. I highly doubt the contractors would agree to give you $8000 for nothing.
by ~*Mama-of-Two*~- 4 weeks ago
When you're building a house, you must occupy the house by 12/1 to get the $8,000. Just having the deed in your name by then won't cut it. From the IRS: "Q. I plan to build a home and occupy it in 2009. 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)"
by BigD- 4 weeks ago
I really don't think that the credit from the home builder and the tax credit have anything to do with one another. I would go ahead and file an amended return to get the credit, it's going to take weeks to be processed anyway. They will send you a letter then, asking you for the HUD closing statement from purchasing the house and hopefully by then you will have it. The tax credit is money that comes to you and that you can use at your discretion. Don't let the home builder make you think you have to give it to them. You don't!
by Shaun M- 4 weeks ago