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Expanded Tax Break Available for 2009 First-Time Homebuyers (http://www.irs.gov/newsroom/article/0,,id=204672,00.html - broken link)
From the IRS.
The $7500 loan folks were ripped off when an immediate true credit was authorized for others, and I don't say "ripped off" very often.
Just like those of us who bought before late 2009 were ripped off when they raised the income limits and it wasn't retroactive. I was between the income limit and the phaseout limit and that rule cost me over 3,000 that people who bought in late 2009 got free and clear.
When they changed the guidelines, they should have kept it the same or made it retroactive. I actually liked the pay-back version better - it doesn't leave my grandchildren with a ton of debt.
When they changed the guidelines, they should have kept it the same or made it retroactive. I actually liked the pay-back version better - it doesn't leave my grandchildren with a ton of debt.
They should have made it retroactive.
At least I don't have to pay mine back. I don't have any children and likely never will (not by choice) so I'm not overly concerned about leaving debt for future generations. They won't be my future generations.
Also, the approximately 4600 that I got for the first-time homebuyer tax credit was more than offset by the amount of money I paid in closing, the amount of money both realtors received in commission, the amount of money the sellers received and rolled back into their business (which creates jobs), and the amount of money I myself have spent on fixing the place up. I stimulated the economy.
I know for a fact that the sellers of this home bought at least one new service van and hired five new HVAC techs after the sale of this house closed. How do I know? Because they do most of the HVAC work on this street.
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.
LOL, you really must be in favor of bigger government. Pulling deeds from every county and city in the country? Even in today's electronic age, that would require a small army of personnel to handle that task. Besides, it's not the IRS' responsibility to check anything. It's 100% the burden of the tax payer.
There are going to be many miserable homebuyers. I know many that were planning of getting the credit, but were really not eligible. Like the guy that had never bought a home, but his wife owned a condo and they filed a joint return for years, where he got the benefit of the interest write off. Or the dad (already a homeowner) that co-signed his daughters condo, just so she could get the tax credit to pay him back the gift.........I could go on and on.....We had a handout on the tax credit, and those that didn't want to hear it, didn't read it.
The silver lining in all of this.......the rest of us have a lower chance of being audited than ever before!
I don't see the gripe here as it was a zero interest loan. But as far as owing money the federal governamnt is about the worse if you think you wouldn't pay them back.
LOL, you really must be in favor of bigger government. Pulling deeds from every county and city in the country? Even in today's electronic age, that would require a small army of personnel to handle that task. Besides, it's not the IRS' responsibility to check anything. It's 100% the burden of the tax payer.
Not in favor of larger govenment, but for them to say that they can't tell the difference between a house that closed in 2008 and a house that closed in 2009 when they require you to send in a copy of your HUD is crazy. I don't even get where that statement comes from. They need to set guidelines that allow these things to be checked in the first place. And a deed that the tax payer sends in can be doctored just as easily as a HUD can be.
You better believe I'd be arguing with the IRS if they said I needed to pay it back and I knew that I had followed the rules and didn't have to pay it back. And that would take more man hours than just pulling the deed in the first place.
No one is saying you shouldn't argue the case if you played by the rules, but it's our responsibility as citizens to provide the documentation required by the IRS. Tax fraud is the most common white collar crime, with some even thinking it's funny to get away with it. But there's also another animal out there, it's called a land installment contract. When closing a land contract, a HUD I is provided, but not a deed. This sure would be a sneaky way to collect the credit, one family member selling to another, no new mortgage and no one having to move. Sure, anything can be doctored, that's why lenders pull transcripts of tax returns for new mortgage applications. A deed can be verified with the book and page number. As long as it remains the burden of proof is on the tax payer, we'll slow down the growth on a mega government agency.
I can't even begin to describe folks that were discussing taking the tax credit, folks there was no doubt they weren't entitled. I'm not the tax police, but I'm reassured to read those tax credits will be audited.
Expanded Tax Break Available for 2009 First-Time Homebuyers (http://www.irs.gov/newsroom/article/0,,id=204672,00.html - broken link)
From the IRS.
The $7500 loan folks were ripped off when an immediate true credit was authorized for others, and I don't say "ripped off" very often.
Ha. All of us were ripped off, especially those of us who were first time buyers that didn't qualify. It was a stupid plan, a stupid idea, and it certainly didn't promote intelligent and responsible decisions.
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