Posts Tagged ‘Homebuyer Credits’

Boy, that home-buyer credit was a great idea

Thursday, October 13th, 2011 by Joe Kristan

From the TaxProf:
TIGTA: 41% Error Rate in $30 Billion First Time Homebuyer Tax Credit Program
From the TIGTA report:

The IRS reported a total of $29.7 billion in Homebuyer Credit claims were made by more than 4 million individuals as of May 7, 2011. Our overall objective was to evaluate the effectiveness of IRS processes to ensure the accurate and timely repayment of the Homebuyer Credit. …
The IRS issued incorrect notices or did not send notices to 61,427 households due to notice programming errors or incorrect information on tax account. … [O]ur review of the third-party vendor

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I’ll pay you $8,000 to lose $15,000

Friday, May 13th, 2011 by Joe Kristan

Congress sure did folks a big favor when they gave them $8,000 checks for buying new houses, reports Smartmoney.com:

The government’s recent $8,000 cash incentive for first-time home buyers has proved even more costly for recipients than for taxpayers, according to data released Monday. Typical buyers have lost twice as much to price declines as they received from the program.
The median home value fell to about $170,000 in March from $185,000 a year earlier, according to Zillow.com. That means a buyer who closed on a house just before the tax-credit program expired in April 2010 collected $8,000 but has since lost $15,000 in value. Those who bought earlier in the program have done worse; the median price is down $20,000 from March 2009.

To help these folks out even more, the government destroyed thousands of perfectly good used cars in Congressmen Braley’s insane “Cash for Clunkers” program, making used cars more expensive at a time when tsunami-related disruptions are making new cars more expensive too. Good thing we’ve got such smart congresscritters taking care of us.
Via the TaxProf.

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If by ‘success’ you mean ‘embarrassing boondoggle,’ yes, it was a success

Friday, April 30th, 2010 by Joe Kristan

The First Time Homebuyer Credit expires today. At the moment it doesn’t appear that yet another extension is in the cards. The New York Times calls it “Successful, but Costly.”
Yes, it is a success, if the objective was to demonstrate that people will take free money if you give it to them. It was also a success in showing that people will try to scam refundable tax credit programs. But did it succeed in its goal of making housing more costly shoring up the housing market? TaxVox weighs in:

As my Tax Policy Center colleague Ted Gayer has noted, 85 percent of those who took last year

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