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My Two Cents

Susan Bady
Susan Bady
I’ve spent two decades reporting on the housing business from both the trade and consumer side. While writing editorials for Custom Builder provides an outlet for my personal views, I only get to do that once in awhile and I'm constrained by space limitations. Now that I can share my thoughts with you a lot more often, I hope you’ll share yours, too. And be sure to follow me on Twitter: http://twitter.com/CustomBuilder.


Thursday, October 22, 2009

Susan Bady

Tax Credit Craziness Escalates

Oct 22 2009 2:20PM | Permalink | Email this | Comments (3) |
Blog This! using: Blogger.com | LiveJournal |

By Susan Bady

Have you heard the one about the four-year-old who claimed the first-time home buyer tax credit? Russell George, the inspector general for tax administration at the Internal Revenue Service, wasn't kidding when he revealed this nugget at a recent Congressional hearing about apparent tax-credit abuse. (The Wall Street Journal's "Developments" blog did a good job of summing up the story this morning.)

In addition to the youngest American ever to buy a home, Mr. George said that thousands of tax-credit claims were filed by people who had owned a home within the preceding three years. Others claimed it for homes they hadn't even purchased.

So why did all those fraudulent claims fall through the cracks, and what will happen if this brouhaha derails efforts to extend the tax credit? The HUD Secretary doesn't foresee dire consequences if the credit isn't renewed. I respectfully disagree.


Reader Comments


at 10/27/2009 11:53:29 AM, Dan said:
I think the first time homebuyer credit is unconsitutional.. unequal protection under the law. If you going to have a credit it should be applied to anybody that buys a home or for that matter it should be applied to all large purchases. I just bought my 3rd house (I did not qualify for the 8000k) along with several other big ticket items this year. I got no tax credits even though I put alot of money into the system.

at 10/28/2009 6:35:44 AM, mark said:
If you look at it that way, then nearly all government programs are unconstitutional because they target certain groups. I think it's great that you have the money to put into the 'system', Dan and I think this program is designed to help others do the same.

at 10/28/2009 1:14:02 PM, Roy said:
I agree with mark, there is now way i could have bought my house with out the tax credit. i live on a base salary and making the house payments were not the problem it was coming up with the 20% down payment and with the 8k tax credit it was alot easier for the lower middle class working man to afford to own his own home.

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