If I built my own house in 2010 and I meet all of the eligibility requirements, can I take the Long term homeowners $6,500 credit? The key question is that I built the home. I have met all the other requirement including the documentation for the previous residence, sale, cost, dates, etc.

ANSWER

The BIDaWIZ Team's Answer:

As for the question of whether or not the long-time resident tax credit of $6,500 applies when you purchase land or build/occupy a home, it begins when you occupy the home. The date of occupancy is considered the purchase date. Thus, you can claim the $6,500 as long as you meet the requirements for the credit. Below is a list of the criteria. Please make sure you have records kept for all of the key dates. 1) Modified Adjusted Gross Income: $125,000 for single filers and $225,000 for joint filers; credit phases out above those limits. 2) Living in old home for 5 consecutive years during 8 year period ending on the purchase date. 3) You purchased your new home after November 6, 2009, and before May 1, 2010, or After April 30, 2010, and before October 1, 2010, and you entered into a binding contract before May 1, 2010, to purchase the property before July 1, 2010. To claim the credit you need to file IRS form 5405 with your amended return. In addition, please note that for long-time residents claiming the credit, the IRS recommends attaching any of the following documentation over the five-consecutive-year period: Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements, Property tax records or Homeowner's insurance records.