I recently purchased a foreclosure in FL and wanted to take advantage of the full firt time home buyer tax credit of 8k. However the property only cost me 27k as the purchase price. Since I put over 55k of work into the place (total cost of 82k), will I be able to add these two amount together to get my 10% (8k tax credit refund)?

First-Time Homebuyer Credit Questions and Answers: Basic Information (http://www.irs.gov/newsroom/article/0,,id=206291,00.html) is a FAQ site for the IRS. I read the policy as purchasing price not investment after the fact. I think that if the mortgage for property was actually 82K then you may have an opportunity. Contact your local IRS office or a tax attorney to ensure the correct interpretation. Congrats on the new home!

No, you will get credit of $2.7K.
Your U.S. Tax Return: First-Time Homebuyer Credit (http://taxipay.blogspot.com/2009/01/first-time-homebuyer-credit.html)