The Tax Court recently upheld the IRS’ disallowance of a portion of a taxpayer’s first-time homebuyer credit. Because repairs and replacement of appliances, though necessary to make the home habitable, do not amount to construction of the home, the purchase date is the day the taxpayer took title rather than the day he began using the home as his principal residence. The credit was thus limited to 10% of the purchase price on the date he took title.
See Leslie v. Comm’r, T.C. Summary Opinion 2014-65, No. 9534-12S (July 10, 2014)
Posted by David Staggs, Associate Editor, Wealth Strategies Journal