Complicated!!!

by Eric
(Crete, IL, USA)

I have a pretty complicated set of questions related to tax credits. I bought a home in 2008 that required some extensive repair. My tax professional at the time urged me to apply for the first time home buyer credit offered for that year. I did and opened up pandora's box to an audit. I was not living in the house yet, and in fact was in a construction loan to rehabilitate and reconstruct the home. IRS denied me the credit due to the fact that I was not living there at the time of credit application. Now it had been almost 2 years and the house was finally complete and habitable. I am now recently living in the home and have changed all my legal responsibilities to this address. Given that I was already denied the credit once, is it possible to apply for the credit on a past tax year, despite the folly? Basically under what circumstances would I still be eligible, if at all? I am about to file my 2010 tax return and was wondering if it were worth my while to try and ammend past returns? Anyone have some insight or a definitive answer on this or had any instance similar to this that might put me at ease?

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