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Real Estate Blog & Resources

Building on Your Own Land? There's a Tax Credit for That!

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Are you thinking of building on the land that you already own? You may be able to qualify for the first home buyer's tax credit of $8,000 or possibly the $6,500 tax credit for home buyers.

When the home buyer tax credit was signed into law and then extended until April 30, 2010, the United States Government made it possible to receive a tax credit of $8,000 or $6,500. You will receive a tax credit of $8,000 if you are a first time home buyer or $6,500 if you are buying another home. The home you buy must be your primary (principal) residence.

What does this mean for someone who is building a home? If you are building a home that is going to be your principal residence, you can still qualify for the home buyer tax credit. To be eligible for the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be after November 6, 2009 and on or before April 30, 2010 (or by June 30, 2010, provided a binding sales contract was in force by April 30, 2010).

The home buyer's tax credit can be applied to new construction by the homeowner on their land. If you were to build right now, it's still possible to take advantage of the home buyer's tax credit. There are a lot of great "build now" programs out there, but none of them compare to the "Build Now" program at The Bridges at Preston Crossings. The Bridges at Preston Crossings has partnered with the city of Gunter Texas, local builders, and area businesses to offer you substantial savings on building your custom home.