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The report found that more than 19,300 people claimed a total of $139 million on their 2008 tax returns before purchasing a home even though the law requires the purchase to take place first, J. Russell George, the inspector general, told a House Ways and Means subcommittee.
Nearly 74,000 buyers -- including some IRS employees -- claimed a total of $500 million in tax credits despite indications that they may have owned a home before, George said. The law bans people from getting this credit if they have owned a home in the previous three years.
Even children claimed the tax credit, said George, adding that 580 taxpayers under age 18 -- including some 4-year-olds -- claimed $4 million, presumably so their parents could dodge the income limitations imposed by the program.
Good news perhaps, except that we cannot trust our own citizens to do the right and honest thing. So, no, i'm not as giddy as you are about my tax dollars being squandered at the expense of creating a new housing bubble.
The report found that more than 19,300 people claimed a total of $139 million on their 2008 tax returns before purchasing a home even though the law requires the purchase to take place first, J. Russell George, the inspector general, told a House Ways and Means subcommittee.
Nearly 74,000 buyers -- including some IRS employees -- claimed a total of $500 million in tax credits despite indications that they may have owned a home before, George said. The law bans people from getting this credit if they have owned a home in the previous three years.
Even children claimed the tax credit, said George, adding that 580 taxpayers under age 18 -- including some 4-year-olds -- claimed $4 million, presumably so their parents could dodge the income limitations imposed by the program.
Good news perhaps, except that we cannot trust our own citizens to do the right and honest thing. So, no, i'm not as giddy as you are about my tax dollars being squandered at the expense of creating a new housing bubble.
Yeah, right - like those depressed housing prices are a "bubble". You're a little late on THAT one buddy - the bubble built in the years leading up to 2006 (when it burst).
It's not so easy to actually GET the credit in my experience. Many fraudulent claims have been filed and discovered. We filed for the FTHBC in June. We're still waiting. We were required to submit further documentation including our HUD-1 form, property tax stamp, tax bill, quit claim deed, lease and landlord verification as well as a State property and rent refund tax form. I talked with an IRS representative today and was told to call back again in two weeks.
A lot of people trying to purchase homes are now putting a stipulation in their P&S contract that they have to close by November 30th or they can drop out of the contract.
Yeah, right - like those depressed housing prices are a "bubble". You're a little late on THAT one buddy - the bubble built in the years leading up to 2006 (when it burst).
Ken
So, you support those folks who are buying multiple houses to continue to be able to do so via a tax credit? What possibly could be the reason that a 4 year old was used on the application if the intent was not to capitalize on an opportunity buy houses at dirt cheap prices? The bubble may not be around the corner, but it doesn't seem that the end of the tax credit is around the corner either.
But since you seem to have an all-knowingness presence about you, perhaps you've already read this article:
So, you support those folks who are buying multiple houses to continue to be able to do so via a tax credit? What possibly could be the reason that a 4 year old was used on the application if the intent was not to capitalize on an opportunity buy houses at dirt cheap prices? The bubble may not be around the corner, but it doesn't seem that the end of the tax credit is around the corner either.
But since you seem to have an all-knowingness presence about you, perhaps you've already read this article:
Where did I say I support those folks?
Kindly point that out.
And I don't care WHAT the article says - we are LONG way from ANY housing bubble. Get real. We have as much of a housing bubble as we have a labor shortage.
Yup. Encouraging news - though of course, it's largely folks rushing to buy NOW before the tax credit expires, however, I expect Congress WILL extend the tax credit into next year - which should help to stablize home prices a bit more until consumer confidence rises (which it will).
Ken
Buy now before the tax credit expires?
Hmm, I wonder what will happen next?
"September's going to be probably the worse month of the year as a result of what they commonly refer to as Cash for Clunkers hangover."
So now we have the wealthiest Americans buying up houses for dimes on the dollar that they will then rent to the working class previous owners until selling at the peak of the next government sponsored housing bubble. FHA will absorb the loss and we will effectively have an enormous transfer payment from the working class to the wealthiest Americans. You got all the dots and just can't seem to connect them. Cash for clunckers was a failure and this program will simply create another housing bubble that will have similar results. How many trillions of dollars are we going to throw at the notion that capitalism is unfair and racist and government must control it before we realize almost every single financial or societal problem is made far worse by government intervention.
So now we have the wealthiest Americans buying up houses for dimes on the dollar that they will then rent to the working class previous owners until selling at the peak of the next government sponsored housing bubble. FHA will absorb the loss and we will effectively have an enormous transfer payment from the working class to the wealthiest Americans. You got all the dots and just can't seem to connect them. Cash for clunckers was a failure and this program will simply create another housing bubble that will have similar results. How many trillions of dollars are we going to throw at the notion that capitalism is unfair and racist and government must control it before we realize almost every single financial or societal problem is made far worse by government intervention.
Will, will will will will will.
Six times in that little post.
So now we have the wealthiest Americans buying up houses for dimes on the dollar that they will then rent to the working class previous owners until selling at the peak of the next government sponsored housing bubble. FHA will absorb the loss and we will effectively have an enormous transfer payment from the working class to the wealthiest Americans. You got all the dots and just can't seem to connect them. Cash for clunckers was a failure and this program will simply create another housing bubble that will have similar results. How many trillions of dollars are we going to throw at the notion that capitalism is unfair and racist and government must control it before we realize almost every single financial or societal problem is made far worse by government intervention.
What will happen next?
The tax credit will be extended until at least mid next year (maybe the end of the year).
And by the time that time rolls around the economic recovery will be taking hold and another tax credit extension will no longer be needed.
What will happen next?
The tax credit will be extended until at least mid next year (maybe the end of the year).
And by the time that time rolls around the economic recovery will be taking hold and another tax credit extension will no longer be needed.
Ken
The new bubble is as unstable as the last. It is founded on wishful thinking and borrowed money.
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