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950,000 Must Repay Homebuyer Tax Credit (http://finance.yahoo.com/news/Homebuyer-tax-credit-950000-cnnm-181881296.html?x=0 - broken link)
Nearly half of all Americans who claimed the first-time homebuyer tax credit on their 2009 tax returns will have to repay the government.
According to a report from the Inspector General for Tax Administration, released to the public Thursday, about 950,000 of the nearly 1.8 million Americans who claimed the tax credit on their 2009 tax returns will have to return the money.
"The inspector general reported that 1,326 single people listed as dead by the Social Security Administration claimed more than $10 million in credits. The IRS threw out 528 of those 1,326 claims, saving $4 million."
Great PR spin there ... yeah, what about the other $6+ million that was handed out?!?
950,000 Must Repay Homebuyer Tax Credit (http://finance.yahoo.com/news/Homebuyer-tax-credit-950000-cnnm-181881296.html?x=0 - broken link)
Nearly half of all Americans who claimed the first-time homebuyer tax credit on their 2009 tax returns will have to repay the government.
According to a report from the Inspector General for Tax Administration, released to the public Thursday, about 950,000 of the nearly 1.8 million Americans who claimed the tax credit on their 2009 tax returns will have to return the money.
<snip>
No surprises here, and nothing shady or illegal. They'll have to return it because that's part of the terms of the initial tax credit program. If we look back, we will see that the initial tax credit for first time homebuyers was actually an interest free loan of up to $7,500. It was supposed to make it easier for first time buyers to make their purchase, stimulating the market. This program applied to qualifying purchases made between April of 2008 and July 1 2009, and could be claimed on either their 2008 or 2009 tax return. It gets paid back $500 per year for the next 15 years.
This program applied to qualifying purchases made between April of 2008 and July 1 2009, and could be claimed on either their 2008 or 2009 tax return. It gets paid back $500 per year for the next 15 years.
Thats not entirely correct. Any house that was a 1st time home that was qualified and purchased in 2009 is a free and clear tax refund, not a loan.
The scary thing in this article is where it says that the IRS can't tell the difference between a house that closed in 2008 and one that closed in 2009. Yeah...besides the HUD statements, deeds are public, recorded documents. Can't the IRS just pull the deed themselves and look at the date? That would clear things up pretty quick I think.
I bought my house in September 2008 and received the $7,500 credit in February 2009. I knew going into it I had to pay it back--$500 every year for 15 years.
When I did my taxes earlier this year for 2009, I was anticipating making my first $500 payment, but was pleased to discover repayment doesn't start until 2010.
Glad I didn't take that crap and I too purchased in 2008.
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