First Time Home Owners Credit - Alaska

[MAMalody]

I have a client that lives in a home in Alaska. They own the home, however, they are prevented by law from owning the land. The land is Native Land Claim Land that cannot be sold or traded to anyone but another native Alaskan person. They have been requested to vacate the land and the house will be razed (sp) so the land owner can construct his own home.

They are able to buy a piece of land in a nearby city (65 air miles away) and are in the process of ordering a kit home to be built on the land. If the home is built and occupied prior to 31 December 2009 do they qualify for the credit?

As I read they credit I don't think so, however, I would like to confirm this because of the unusual situation.

Thanks.

[Don in Upstate NY]

... If the home is built and occupied prior to 31 December 2009 do they qualify for the credit? ...

For a starter, the deadline is prior to December 1, 2009.

[kcjenkins]

To qualify, they must have not owned a qualifying principal residence during the 3-year period ending on the date of purchase of the principal residence for which a first-time homebuyer credit is being claimed. A principal residence for purposes of the credit is the same as a principal residence under the exclusion of gain provision of §121. That section says that a principal residence can include not only a traditional house, but a houseboat, mobile home, condominium, or stock held by a tenant-stockholder in a cooperative housing corporation if the dwelling the stockholder is entitled to occupy is used as the principal residence. So clearly, your clients did have a qualifying principal residence, so they can not qualify for the credit on the new place.

[MAMalody]

Thanks for pointing out my typing (date) error Don.

KC, I thought that was the answer.

[michaelmars]

ARE IGLOO'S CONSIDERED PERMANANT STRUCTURES?

[Lion EA]

Not on Long Island.