UnderGround Forums
 

Money, Business & Finance Ground >> Obama First Time Homebuyer $8,000 scam


8/7/09 11:32 AM
Ignore | Quote | Vote Down | Vote Up
seg
54 The total sum of your votes up and votes down Send Private Message Add Comment To Profile

Member Since: 3/28/05
Posts: 9851
 
Tell me why this won't work.  A guy called me yesterday wondering if he could do the following:

Chick owns a home in her sole name and her and her fiancee live there.  She sells the home to him.  He otherwise qualifies for the $8,000 tax credit and claims the credit on his 2009 return while still single.  They then get married in 2010.

It's obviously a scam, but I couldn't find anything in the letter of the law that would prohibit the guy from claiming the credit, other than an argument by the IRS that the sale itself wasn't a bona fide sale.
8/7/09 12:37 PM
Ignore | Quote | Vote Down | Vote Up
MightMakesRight
132 The total sum of your votes up and votes down Send Private Message Add Comment To Profile

Member Since: 1/27/04
Posts: 1081
Seems more like a loophole then a scam.
8/7/09 1:18 PM
Ignore | Quote | Vote Down | Vote Up
OneScoup
Send Private Message Add Comment To Profile

Member Since: 4/18/02
Posts: 13365
Sounds like it would work. More a loophole.
8/7/09 11:28 PM
Ignore | Quote | Vote Down | Vote Up
seg
54 The total sum of your votes up and votes down Send Private Message Add Comment To Profile

Member Since: 3/28/05
Posts: 9856
 It would be her personal residence so no gain or loss recognition.  He would have closing costs, but they would be less than $8,000.

I think if he got audited the IRS would say this was not a bona fide sale and disallow the credit.  Then he would have to fight about it.
8/11/09 1:31 PM
Ignore | Quote | Vote Down | Vote Up
disbeliever
312 The total sum of your votes up and votes down Send Private Message Add Comment To Profile

Member Since: 9/27/03
Posts: 3527
I think having a first time homebuyer credit is stupid. Why not give it to anyone looking to buy a house?

Reply Post

You must log in to post a reply. Click here to login.