OT- First time home buyer money

Sounds like the guvment is doing it usual bang-up job of "administering" this program.

I was supposed to draw up a real estate contract for a client to sell a rental house to a first time home buyer. There are problems with title, so it drug on. Buyer called awhile back and asked me to be sure an get it done before the end of the year so he could get the 8 grand.

I was talking to seller today, getting the info to finalize the contract, and mentioned that we needed to close soon so buyer could get fed money. Seller told me the guy already got it! How did he do that? There's no contract of sale, nothing to verify that he bought a house. Do you just call the feds and tell 'em, "Hey, I bought a house- send money!"

So now, how many scammers are going to get 8 grand by just making a phone call? Can't those idiots do ANYTHING right? Remember Cash for Clunkers? And these are the clowns who are going to handle my health care? God help us. . .

First of all, it's a tax credit, not cash. So the buyer has to file a tax return to get his money. So he does not have the eight grand, regardless of what the seller told you.

What has happened is the tax credit, which was supposed to expire at the end of the year, has been extended through April next year. So there is no big rush to close before the end of the year. In fact, as long as the contract is signed by April, they have until June to close.

I am perplexed by your post. Assuming that you're not a troll, it sounds like you are an attorney or at least some sort of professional in the real estate or title business. I cannot understand how you can make a living at your chosen profession while you are apparently ignorant of the laws that regulate your business.

My son bought the end of July and had to send all of his closing documents last week along with a copy of the check. Still waiting. I guess nothing is moving in MI.

The paper work we filed was a revised 2008 tax return. He didn't have $4,100 in taxes witheld but is supposed to get a check for that much (10% of the purchase price up to $8,000).

its easier to shoot your mouth off than to look into something, common theme for a few here.

I am an attorney, and seem to do OK. I am not as clueless as it may have appeared (my sarcasm is sometimes a little too oblique for some audiences, I'm afraid). This is a discussion forum, and often the best way to stimulate discussion is to ask questions for which you already know the answers.

I talked to a real estate broker friend, and he said that fraud appears to be rampant (non-buyers submitting claims), because there apparently is no documentation requirement. Supposedly, the guvment is "auditing" the claims, but wouldn't it have made more sense to reqiure the documentation at the outset? That was my point.

It actually IS cash. It's a "tax credit" to the extent of your tax liability, and the balance comes as a "refund" (of money you never paid in) from the guvment. So assuming you had sufficient funds withheld to cover your tax liability, you would be getting a check for the full amount of the "credit".

I'm thinking he got an extension on his 2008 return to October 15 in anticipation of the sale closing, then just went ahead and made the claim when he filed.

I knew the gravy train had been extended through April, but didn't mention that to the seller, as I wanted to keep some pressure on him to provide the information I needed.

I should look into doing this so that I can get some of that external_link money. (it appears out of thin air I guess), I just have to click my heels 3 times while saying Liberals are great, Liberals are great.

Fraud is rampant in anything that is run by the government. Look at medicare, Social insecurity, etc.

"I am an attorney, and seem to do OK. I am not as clueless as it may have appeared (my sarcasm is sometimes a little too oblique for some audiences, I'm afraid). This is a discussion forum, and often the best way to stimulate discussion is to ask questions for which you already know the answers."

So you're a troll!

I found some on line information that says they are auditing and demanding proof of ownership, like copies of car title at the new address and driver's license at the new address.

Gerald J.

The first time home buyer credit was not scheduled to expire at the end of the year. It was sceduled to end on November 30th until the clown in the White House signed the bill on November 6th to extend the program, and expand it to give a 6500 credit to people who have been in their first home for less than 5 years. This addition to the program shows its whole goal is not to improve home sales,which was the original goal stated, as we are now paying people who have had their home for up to 5 years. He has proved his intent wasn't to spur home sales but to create a group of people who have the great messiah to thank for their handout. I guess the people who got the cash for clunkers handout weren't a large enough group.

Mike,

I guess I took your bait. Anyway, I'm sure you know how it goes if you commit tax fraud, er, I mean when you make a mistake on your return: The IRS sits there for a couple of years letting interest and penalties accrue, then sends you a nice letter informing you of your error with an enclosed bill.

Any transaction over 10 grand has to be reported to the IRS; it's a simple matter for them to see when there's been no 1099 filed for the purported transaction. I don't doubt there's fraud out there, but anyone who files a fraudulent income tax return does so at their own peril.

There you go. How did the seller know what the buyer had?

Well, I guess I need to know your definition of "troll". My Washington State Bar Assn. number is 17249 ("you could look it up"). What's yours?

Buyer and seller are on good terms- Seller knew of buyer's activities because buyer told him.

Info I have in Mich. says you will pay back the $8000. This came from realtor. Tell me if it's wrong. Dave

Info I have in Mich. says you will pay back the $8000. This came from realtor. Tell me if it's wrong. Dave

Can I get a tax credit for the house we built here for cash, strictly pay as we go and do without the nice things to do it?

Christopher