Comments on: $8,000 Housing Tax Credit Screws 100,000 Home Buyers?

By: Rebecca

Rebecca — Thu, 19 Nov 2009 00:55:59 +0000

Well, I have been waiting on my $8000 tax credit for 4 months now. I am not a cheat, and there is nothing at all suspicious with my amended ‘08 return, or my 3 prior returns. I received a letter in the mail saying they needed additional documentation so I sent in my settlement paperwork. A month later I get another letter in the mail saying they received my paperwork and may need ADDITIONAL DOCUMENTATION! It will be a year until I see that credit, if I see it at all! And these people want to take over the healthcare system…

By: Paul

Paul — Fri, 23 Oct 2009 18:11:35 +0000

@ Joe – I had no idea people were getting away with that.

By: Betty Byrnes

Betty Byrnes — Thu, 22 Oct 2009 02:26:42 +0000

Good points made by all…

One thing that stikes me though is the microscope being applied to those taking advantage of an $8,000 maximum tax credit vs the lack of oversight to the billions of dollars in bail-out money that’s gone to prop up various entities.

Cheats should be caught everywhere – not just on Main Street!

By: Toby Boyce

Toby Boyce — Thu, 22 Oct 2009 01:55:37 +0000

I agree with Joe that the audits are to catch those that are “cheating” on the game. The number of people looking at this from the IRS’s survey shows that there is going to be a disparengent number of audits for first-time home buyers.

As to the tax credit, my concern is that we leveraged 2010’s first-time home buyers in exchange for a decent 2009 by shoving a majority of those buyers into this year’s selling season.

By: Joe Spake

Joe Spake — Thu, 22 Oct 2009 00:11:35 +0000

Lani, these audits are for cheaters. From the inception of the $8000 credit, it seemed incredibly easy to cheat or game the system, almost as if cheating was encouraged. Closing attorneys were reporting buyers bringing the $8000 to the closing table. How did they pull that off? The IRS did not require tax returns, just a form be filled out. And recipients got their check quicker than any tax refund I have ever received. I think we are seeing the backlash of the government’s not thinking through this program before implementing it. It would be interesting to know how many Realtors, out there rushing buyers to go for the free money, know the rules.

By: Paula Henry

Paula Henry — Wed, 21 Oct 2009 21:32:56 +0000

I’m really not surprised! I wonder how many first time home buyers know they MUST stay in the home 3 years or they owe the credit back.

On a side note: Only a few of my closings have been first time home buyers, but I believe we may see some backlash from this. If someone bought a home (only) for the tax credit, how many may not be prepared for home ownership.

The first new tax bill at a higher rate, the first baby, the $5000.00 HVAC system goes or any number of things could force a few unprepared home owners to foreclosure, and then they owe the $8000.00 in addition.

By: Barb Dragotta

Barb Dragotta — Wed, 21 Oct 2009 19:50:38 +0000

Lani, really your birthday–Happy day to you. This IS a Black Hole if ever I saw one; couple this with some of the SS stories out there and it is enough to bring on nightmares or insomnia.
As to 2dragottas’ opinion of the $8,000 credit:
…iffy in the first place [ note the number of lapses in payments already ]
…extending it ?…NO–wait and see How & / or If it actually works before continuing for more months.