Long Time Homebuyer Credit

[lsowers]

I don't know if anyone else has thought about if this qualifies, I don't think so, but figured I would throw it out there for your comments.

If a t/p replaces a mobile home (real property, not tangible) with another mobile home or stick home on the same property, assuming they meet the 5 out of 8 year requirement, could that qualify them for the $6500 credit? There will be another closing, since they are purchasing another home, however the property address will remain the same.

Thank you,

Lori

[kcjenkins]

Yes, as long as the new home meets the rules to be 'real property', it's a qualifying purchase. It's no different than if they had an old conventional home that was torn down or burned down, and they built a new one on the same piece of land.

[lsowers]

KC,

Can you point me to the wording that authorizes this? There is a good chance I will have to claim one with this situation and want to make sure it is allowed.

Not that I am questioning your knowledge, I have learned alot from your posts , I just want to have something in my files.

[kcjenkins]

http://www.govtrack.us/congress/billtext.xpd?bill=h111-3548

(B ) Documentation Requirement- Subsection (d) of section 36 of the Internal Revenue Code of 1986, as amended by this Act, is amended by striking ‘or’ at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ‘, or’, and by adding at the end the following new paragraph:

‘(4) the taxpayer fails to attach to the return of tax for such taxable year a properly executed copy of the settlement statement used to complete such purchase.’.

If you have a settlement statement, that should be all the proof you need. And when purchasing a mobile home, normally you have the same sort of settlement statement as you have when purchasing a stick-built home.

Also, from

My link

Q. Which home purchases qualify for the first-time homebuyer credit?

A. Any home purchased as your principal residence and located in the United States qualifies. You must buy the home after April 8, 2008, and before May. 1, 2010 (with closing to take place before July 1), to qualify for the credit. For a home that you construct, the purchase date is considered to be the first date you occupy the home.

Normally, taxpayers (including spouse, if married) who owned a principal residence at any time during the three years prior to the date of purchase are not eligible for the credit. This means that you can qualify for the credit if you (and your spouse, if married) have not owned a home in the three years prior to a purchase. However, a long-time homeowner can also get the credit for a qualifying replacement home purchased after Nov. 6, 2009. To qualify, you must have owned and used the same home as your principal residence for at least five consecutive years of the eight-year period ending on the date you by your new principal residence.

If you make an eligible purchase in 2008, you claim the first-time homebuyer credit on your 2008 tax return. For an eligible purchase in 2009, you can choose to claim the credit on either your 2008 or 2009 income tax return. For an eligible purchase in 2010, you can choose to claim the credit on either your 2009 or 2010 return. (11/19/09)

Q. If a taxpayer purchases a mobile home (manufactured home) with land and qualifies for the credit, is the amount of the credit based on the combined cost of the home and land?

A. Yes. The first-time homebuyer credit is ten percent of the purchase price of a principal residence. The total purchase price (mobile home and land) is used to determine the amount of the first-time homebuyer credit.

Q. Is a taxpayer who purchases a mobile home and places the home on leased land eligible for the first-time homebuyer credit?

A. Yes. A mobile home may qualify as a principal residence and it is not necessary that the taxpayer own the land to qualify for the first-time homebuyer credit.

Q. Can a taxpayer who purchases a travel trailer qualify for the credit?

A. A travel trailer that is affixed to land may qualify as a principal residence.

Q. Can an individual who has lived in an RV qualify for the credit?

A. For purposes of the first-time homebuyer credit, an RV with a built-in motor is personal property that is not affixed to land and does not qualify as a principal residence. Accordingly, someone who has owned and lived in an RV within the past three years may still qualify as a first-time homebuyer.

The bolded part makes it clear that the purchase of the mobile home itself qualifies, whether they already own the land, buy the land, or rent the land.

[jainen]

>>point me to the wording that authorizes this?<<

In my opinion, kc's citation does not authorize new construction on previously owned land. It describes placing a mobile home on land you DON'T own, a different situation.

The definition of principal residence for this credit comes from Section 121, under which a principal residence specifically includes the land appurtenant to a building. So you can't qualify just by tweaking the vocabulary, trying to call it a "new" home when the only thing changed is certain construction. Capital improvements to the property (including the land) that you are already using as a home are not eligible for this credit.

In my opinion, "it is not necessary that the taxpayer own the land" does not imply that if you do own the land it automatically qualifies. I agree with kc's first post that it's the same as rebuilding after a fire. You don't get the credit for that either. A new mobile home on vacant or rental land is one thing. Property you are already using as a primary residence is something else, and we haven't seen any wording that authorizes it.