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first time buyer tax credit: Confusion Surrounding The First Time Homebuyer Tax Credit - 03/27/11 11:41 AM
As the April 15 tax day approaches, there is still some confusion surrounding the First Time Homebuyer Tax Credit.  And while there were thousands of fraudulent claims made by those attempting to cheat the government, a large number of taxpayer legitimately failed to understand how the tax credit worked.  Of course, congress added to the confusion by creating different plans, some of which required repayment, and by creating different levels of qualification.
 
Discussions of additional proposals that were never adopted only added to the confusion; and some tax payers are now struggling to determine the necessary forms and documentation needed … (17 comments)

first time buyer tax credit: And We Thought The First Homebuyer Tax Credit Was Expensive - 03/05/10 01:54 PM
In a POST I did last September I explained how the increase in sales directly attributed to the First Time Buyer Tax Credit showed the cost of the program to be as much as $43,000 per additional sale. New information reported by CalculatedRisk.com shows that a tepid response to the program’s extension may leave us with a cost that is more than double that of the original credit, and could equal as much as $100,000 per additional home sold.
 

Not only does the cost far exceed any benefit from such an artificial stimulation, but the increase in sales … (41 comments)

first time buyer tax credit: Waiting For Your Home Buyer Tax Refund? - 10/27/09 11:31 AM
In a recent POST I described the problem the IRS was having with fraudulent claims for the First Time Buyer Tax Credit. It seems that where the potential for abuse exists, some will take advantage of it.
 
And now that abuse is hurting those who legitimately earned their refund. In an effort to limit further fraud, the IRS is scrutinizing EVERY return which has dramatically slowed the process. An article on MarketWatch describes the problem and includes a phone number that taxpayers can call to check on the status of their return.
 
The Housing Guru: The one source for … (11 comments)

first time buyer tax credit: Are We Surprised To Discover Fraud In The First Time Buyer Tax Credit? - 10/23/09 06:15 PM
A preliminary audit from the Treasury Inspector General for Tax Administration, TIGA, has uncovered as much as $500 million in fraud in the First Time Buyer Tax Credit. The audit has shown fraud to be both blatant and rampant, with thousands of aliens, hundreds of children, and as many as 53 IRS agents applying for the credit. There were also individuals who did not even own homes who received the credit.
 
What this demonstrates is the government’s inability to administer this program. Any time there are billions of taxpayer dollars involved and dishonest, incompetent, or indolent bureaucrats doling it out, … (11 comments)

first time buyer tax credit: IRS Reports Widespread Abuse of First Time Buyer Tax Credit - 10/20/09 08:01 AM
With all the discussion about extending the First Time Buyer Tax Credit, there has been little talk about the potential for fraud and abuse. However investigations by the IRS have turned up more than 100,000 suspicious claims, according to an article in the Wall Street Journal.
 
Unfortunately, when “free” money is being handed out by the government, many try to game the system and get in on the action.
 
The Housing Guru: The one source for all your housing questions
… (8 comments)

first time buyer tax credit: Why I Don't Support Extending The Housing Tax Credit - 09/23/09 07:27 AM
While the NAR and many Realtors® are advocating the extension of the $8,000 First Time Buyer Tax Credit, with some supporting a significant expansion of the program, doing so fails to bring about a recovery of the housing market. What it does is provide a “feel good” stimulus, a temporary surge in sales, similar to what “Cash for Clunkers” did for the automotive industry.
 
With the end of the “Clunkers” rebate program, car buyers have abandoned the market; and September auto sales are currently on track to equal the lowest on record, according to Edmunds.com. With several hundred thousand sales … (32 comments)

first time buyer tax credit: The Surprising Cost Of The First Time Buyer Tax Credit - 09/03/09 06:26 AM
Many see the $8,000 first time buyer tax credit as an excellent stimulus for an ailing housing market; and some are seeking an expansion that would extend the credit to all home buyers. Others have proposed increasing the amount to $15,000. After all, spending such small amounts is insignificant when measured against the stimulus and bailout packages that have cost trillions.
 
The first time buyer tax credit was intended to stimulate housing, to bring in more buyers; and it has succeeded. Just like the Cash for Clunkers program stimulated new car sales, the housing stimulus has brought in more home … (94 comments)

 

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