Homebuyer Tax Credit: The IRS Has Apparently Dropped the Ball

credit: © L. Eleana Johnson

At a time when the country is experiencing what some are referring to as the worst recession since the Great Depression, the IRS has apparently dropped the ball. Initially, the homebuyer tax credit was passed to stimulate the economy by bribing first-time homebuyers into purchasing the American Dream. In a previous article, “Homebuyer Tax Credit: Stimulating the Economy or Fueling False Hope?” the negative impact of the recent lapse of the homebuyer tax credit on pending home sales was discussed. Now what’s even more alarming is the recent news that the Internal Revenue Service (“IRS”) has no strategy for ensuring over 950,000 taxpayers purchasing homes in 2008 repay the $7,500 homebuyer tax credit that they were loaned interest free. READ FULL ARTICLE: Homebuyer Tax Credit: The IRS Has Apparently Dropped the Ball

Homebuyer Tax Credit

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Stimulating the Economy or Fueling False Hope?

Recently CNNMoney.com reported that pending home sales fell a whopping 30% in May, according to the National Association of Realtors. Although experts are shocked by this seemingly large decrease, any decrease should come as no surprise in light of the lapse of the homebuyer tax credit on April 30th. However, to fully understand why home sales suddenly sank, we must understand the true purpose behind the Homebuyer Tax Credit.

Initially, the Homebuyer Tax Credit was passed to stimulate the economy by bribing first-time homebuyers into purchasing the American Dream. A bribe is simply something that serves to induce or influence. In the midst of the mortgage crisis where millions of Americans are losing their homes in foreclosure for various reasons, such as being bribed into no-money down, interest only, adjustable rate, ballooning home loans, that have sucked the life out of so many families READ FULL ARTICLE: Homebuyer Tax Credit: Stimulating the Economy or Fueling False Hope?