Profile picture for bhedge615

First time homebuyer credit if my father's company builds the house for me...

I got a construction loan from a bank to build a house on land sold to me by my parents. I am getting my fathers company to build the house. His company is getting paid to build my house. Do I qualify?
  • January 15 2010 - High Point
  • 0Yes

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Answers (4)

Profile picture for sunnyview
I agree with Hamp. The chances that the IRS will catch this if your fathers company is a corporation is very small. Write down the times that you called the IRS helpline while you still remember. That may show that you were trying to do the right thing if there is any question later. You can also ask a CPA or tax attorney for the final word just to cover your hiney, but truthfully the IRS has so much red hot in your face fraud to look a with this buyers credit they will probably not blink if you claim it. I wish I had a 100% answer to offer, but the tax code is complex and it takes a professional. You really need to trust your gut and a smart CPA on this one.
  • January 18 2010
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Profile picture for bhedge615
My Dad's company is a Corporation if that matters at all?? I have called the IRS twice and got two different answers...?!
  • January 18 2010
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Is your Father's company a corporation?
Claim the credit. I think you're good. Worst case, the IRS could disallow, so don't blow the money.
  • January 15 2010
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Profile picture for wetdawgs
If you purchase a house from your parents (or certain other relatives), you would not qualify.   Therefore, in your current scenario you are balancing on a tightrope of "maybe, maybe not, probably not".    As your scenario is rather out of the ordinary, I would take the time to call the IRS and ask.

  • January 15 2010
  • 1Yes

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