It’s no longer the $8000 First Time Homebuyer Credit. It’s now the $8000 First Time Homebuyer Credit or $6500 if You Have Lived in Your Home for Five of The Last Eight Years and Buy a New Home Credit (if you qualify). The Senate voted last night and the House voted today (403-12) on H.R.3548 so the bill moves to President Obama for his signature; possibly tomorrow. Sections 11 and 12 of the bill specifically deal with The Credit.
The revised credit will take effect on December 1st and is not retroactive. Changes include raising the maximum income for qualified couples to $225,000. The $6500 credit is only valid for primary residences.
On October 22, the Treasury Inspector General for Tax Administration released a report that includes:
As a result of the IRS’s inaction, TIGTA’s report found that 19,351 taxpayers claimed $139.4 million in credits for homes they had not yet purchased but would allegedly purchase in the future. In addition, 70,005 taxpayers claimed more than $479 million in credits, despite indications that they were not first-time homebuyers. TIGTA also identified 582 taxpayers under 18 years of age who claimed almost $4 million in First-Time Homebuyer Credits. The youngest taxpayers receiving the Credit were 4 years old. (emphasis added)
The new law makes provisions to go after those fraudulently claiming the credit.