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Boy do I have a story for you. (Home purchase tax credit rejected)

Old 03-30-10, 07:27 AM
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Boy do I have a story for you. (Home purchase tax credit rejected)

A distant relative of mine told me over the summer that he will take advantage of the government tax credit of $8,000 to purchase a home this fall which he did. Now come tax time when he is to collect he is rejected by the government because of a loophole that said that if you buy from someone in your own family you can not collect the tax credit. He did buy from someone in his family.
Funny thing is nobody knew of this until tax time, not the realitor, him, or the tax preparer. He was livid, as I might guess. I would be too.
He bought a crappy house with dreams of using the tax credit to help fix it up.
He was going to buy new windows with the money and take advantage of that tax credit. Now he can do NOTHING to his house.
Now he's stuck with a crappy piece of sh*t of a house that he can do nothing with. Even more funny thing is he's a devoted Democrat who voted for the same government that is screwing him, fancy that.
With all of the money Washington is throwing around these days they deny him that?
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Old 03-30-10, 07:39 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

So he's pissed off because of his own ignorance? Sounds like he should have had a better Realtor.
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Old 03-30-10, 07:40 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Yeah, it's the law so relatives don't just pass around property to get tax breaks.
Learned this a couple years ago, when I bought a piece of property from my dad.
Hard to believe that neither realtor or the tax preparer were aware of the law!
Amateurs!
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Old 03-30-10, 07:43 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Will $8,000 do much to fix up a "crappy piece of sh*t of a house" ?
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Old 03-30-10, 07:53 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

most realtors are morons who don't know much and usually tell you second hand info. your friend should have google and gone to the government website that spells out the conditions required for getting the tax credit
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Old 03-30-10, 08:12 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by al_bundy View Post
most realtors are morons who don't know much and usually tell you second hand info. your friend should have google and gone to the government website that spells out the conditions required for getting the tax credit
http://www.irs.gov/newsroom/article/...206291,00.html

<b>Q. Who cannot take the credit?</b>

A. If any of the following describe you, you cannot take the credit, even if you buy a new home:

Your income exceeds the phase-out range.

<b>You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.</b>

You do not use the home as your principal residence.

You are a nonresident alien.
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Old 03-30-10, 08:18 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Love this was posted in World Events!

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Old 03-30-10, 08:32 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Fucking Obama!
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Old 03-30-10, 08:34 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

That's a pretty obvious restriction. If $8000.00 is at stake, take the time to read the (not-so) fine print.
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Old 03-30-10, 08:38 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by Groucho View Post
That's a pretty obvious restriction. If $8000.00 is at stake, take the time to read the (not-so) fine print.
C'mon. Obviously The Google is in league with Socialist Obama Empire and is hiding this information in the deceptively named website wendersfan uncovered.
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Old 03-30-10, 08:40 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

That's a serious bummer and I'm sorry to hear it. The sad truth, as others have pointed out, is that the government isn't "screwing" him. It unfortunately wasn't a legitimate tax cut to expect in this case. Hope things work out with the home.
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Old 03-30-10, 08:42 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

The man who buys real estate from his own family has a fool for a client!
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Old 03-30-10, 08:50 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by CRM114 View Post
Fucking Obama!
I heard that in addition to personally denying the illegal tax credit, he also came to the crappy piece of sh*t home and personally sodomized their dog.
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Old 03-30-10, 08:59 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

From: JOE29
To: Distant Relative
Subject: Home Tax Credit

Hello, Distant Relative. I was sorry to hear about your tax credit woes. Although I can't get you your money, I can lend a sympathetic ear. Call me any time. Also, I've created a thread with the good folks at DVDTalk this morning:

<a href="http://forum.dvdtalk.com/politics-world-events/571569-boy-do-i-have-story-you-home-purchase-tax-credit-rejected.html">http://forum.dvdtalk.com/politics-world-events/571569-boy-do-i-have-story-you-home-purchase-tax-credit-rejected.html</a>

I'm headed into work now, so I won't be able to check the thread. But you should definitely read it. The posters at DVDTalk normally give people a hard time about this sort of thing, but for me I'm sure they'll give an exception and offer nothing by empathy and compassion!

-Joe
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Old 03-30-10, 09:40 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

My wife's grandmother said that it took a long time to get her state refund this year from ny state. Never mind that she paid nothing in taxes. For a while she gave up hope and said Obama took the money for himself.
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Old 03-30-10, 09:44 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Related party transactions almost always have different tax treatment. I can't believe one person didn't think to question that.
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Old 03-30-10, 09:46 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by spainlinx0 View Post
Related party transactions almost always have different tax treatment. I can't believe one person didn't think to question that.
It's far easier to absolve yourself of personal responsibility and blame the government instead.
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Old 03-30-10, 09:51 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by wendersfan View Post
It's far easier to absolve yourself of personal responsibility and blame the government instead.
To be fair to the purchaser, we often rely on the advice of experts. I would expect a tax preparer to know tax law (unless it was a an H&R block type operation).
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Old 03-30-10, 09:54 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Sucks for him, but I'm closing in about 3 weeks (not buying from a relative), so I'm looking forward to the $6,500. The G has taken plenty from me over the years, so it'll be good to get a small fraction of it back.
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Old 03-30-10, 10:38 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Well, maybe you have a malpractice case against the realtor and the tax preparer.
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Old 03-30-10, 10:45 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by orangecrush View Post
To be fair to the purchaser, we often rely on the advice of experts. I would expect a tax preparer to know tax law (unless it was a an H&R block type operation).

tax preparers are usually CPA's. even if a drone does the grunt work, a CPA will usually sign off on it. in NY State the current requirements are a master's degree and sit for the CPA exam. Anyone can become a realtor by attending a class and taking a test anyone can pass

i'm waiting to close on selling my co-op and buying another one and almost got screwed by a realtor as well. she told me one thing and when i went to the bank i found the standards were much higher, but in fairness i never to told the entire story to the realtor.

Last edited by al_bundy; 03-30-10 at 10:50 AM.
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Old 03-30-10, 10:47 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Wait just a damned minute, H&R Block doesn't know tax law?
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Old 03-30-10, 10:56 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by JOE29 View Post
Even more funny thing is he's a devoted Democrat who voted for the same government that is screwing him, fancy that.
Anyone else think getting this slam in was the entire point behind this thread, and not some concern about a "distant relative"'s home purchase?
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Old 03-30-10, 11:21 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

How did they know it was someone in his family? Same last name?
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Old 03-30-10, 11:25 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by Dr Mabuse View Post
Wait just a damned minute, H&R Block doesn't know tax law?
You have to go to Jackson Hewitt for that level of expertise.
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