Can I get the $8,000 tax credit if I buy a house, immediately tear it down, and rebuild?

Question

I can't find any brand new houses that I like in the areas that I like, and I can't find any decent vacant land either.  I've been thinking about buying a dumpy house for 60 grand or so and then tearing it down and building a new one in its place.  Would I still be able to get the $8,000 first-time homebuyer tax credit in this case?

Answer 1

Nope, won't work.  You have to live in for 36 consecutive months.  A tear down won't work as you can't guarantee it's built and you can move in BEFORE 6/30/2010.

Answer 2

If you pay cash maybe.  If you have a mortgage you can not tear down the security for the loan.

Answer 3

no you wont. also you wont exactly get 8,000 dollars back because this depends on how much your house is. also you need to live in that house for over 2 years.