Despite some pretty serious lobbying efforts by realtors, banks, lenders and goodness knows who else, it looks like the homebuyer’s credit may not be extended. The credit was set to expire tomorrow. In other words, to qualify for the tax credit, homebuyers had to close by June 30, 2010.
For one reason or another, that wasn’t going to happen for many homebuyers (you can read my take on it here). In an effort to pacify voters help out taxpayers, Congress has been considering extending the deadline to September 30, 2010.
But since Congress loves drama (see the unemployment benefits bill, for example), we’re taking it down to the wire. Earlier today, the House voted 409-5 in favor of an extension. Now, the bill goes to the Senate where a similar measure proposed by Sen. Harry Reid (D-NV) has not yet been approved. But the night is young…
Any relief for folks who couldn’t get their contracts signed before April 30 (I have a client who bought from FNMA, but they couldn’t turn the paperwork before May 8)?
More of the democrat’s socialist agenda. Hopefully this will die and not be extended! The amount of persons our office has seen that “purchased” houses on contract is probably 40% of the total. Those houses were “sold” at inflated prices with the sales contract showing a down payment which will be tendered when the “buyer” gets the “refundable credit” from the Obama Administration. All paid for by our grandchildren sometime in the future!
When a person comes into the office who showed on a tax return she had an income of $12,000 with two children (A coincidence max point for EITC?) sales contract in hand showing she purchased the house she had been “renting” for 79,900 (A coincidence virtual max point for the credit?) with a down payment of 5% of sales price (A coincidence one half of the credit?), it isn’t too difficult to see fraud all over the place. I wonder if it would be another coincidence that the rent had been being paid with Section 8 payments. I wonder if the seller or buyer is advising the housing authority that they are no longer paying the rent. I wonder if the house payments just happen to be a coincidence the same amount as the housing authority section 8 payments.
I wonder when the buyer defaults, if she will just happen to accidentally forget to advise the IRS that she owes back the $7990. I wonder if the socialists are in control in about two years and all these defaults come to surface, if a new program will have to be instituted to forgive the debt by the US Government?
Jeff Day EA
Evansville, IN