| The federal government has initiated a host of | | | | first. This is wrong and leading the IRS to start |
| programs trying to rev up the government. From Cash | | | | scrutinizing tax returns that include a claim. |
| for Clunkers to the First-Time Home Buyer tax credit, | | | | I am looking to buy my first home. My parents own |
| these programs have in fact revved up the auto and | | | | their home and a second rental property in town. |
| real estate markets. Alas, the IRS is starting to take a | | | | Given the economic mess, the rental market has been |
| keen interest in those claiming the first-time home | | | | down. After talking about it, we agree that I will buy |
| buyer tax credit and is, in fact, starting to audit returns | | | | their rental property as my first home. I claim the |
| where the credit claim is questionable. | | | | first-time home buyer tax credit, get a loan and move |
| A down payment is obviously one of the big hurdles to | | | | into my first home. Everything is fine, right? |
| buying a home. Faced with a real estate market that | | | | Unfortunately, it is not. I cannot claim the tax credit if I |
| could only be called morbid, the federal government | | | | by from a related person. Arguably, I’ve just |
| came up with the first-time home buyer tax credit. This | | | | committed tax fraud! |
| essentially provided $8,000 for a down payment so | | | | There are a host of rules that apply to the first-time |
| long as certain requirements were meant. The | | | | home buyer program. They are easy to understand, |
| program has been a huge hit and real estate markets | | | | but few people realize they exist. Make sure to cover |
| across the country are starting to come back a bit. | | | | them with your tax professional before you buy that |
| The only problem is many people just assumed they | | | | first home or you could really regret it. |
| could claim the credit so long as the home was their | | | | |