Home buyers who purchased a property after Nov. 6, 2009, when the extension and expansion of the first-time and move-up home buyer tax credit took effect, have reportedly been unable to get their rebates—or even file for them—because paperwork isn’t available.
Robert Dietz, an economist with the National Association of Home Builders, says the delay is apparently caused by the Treasury Department’s inability to quickly create new documentation that filers could use to prove they actually bought a property.
Previously, all a home buyer had to do was file a form that said they’d purchased a property. No proof was required. As a result, there were thousands of reports of fraud. This time around, the IRS is seeking ways to force home buyers to prove their eligibility.
Mary Mellem of David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, says it probably will be another three months before the problem is resolved.
Source: CNNMoney.com, Les Christie (10/14/2010)
The Federal Reserve’s minutes from the Federal Open Market Committee’s mid-December meeting show that if the modest pace of economic growth slows or mortgage markets significantly deteriorate, “a few members†of the committee believe that “more policy stimulus†may be desirable. The Fed has been buying $1.25 trillion of mortgage-backed assets to ease lending markets and keep longer-term rates low — a program that is winding down and scheduled to end by March 31. The program was successful for much of last year, pushing mortgage rates below 5%, to levels not seen since the early 1950s. Many economists say the end of the program will push rates back up from a half point to a full point, adding to the cost of a house and diminishing the pool of buyers. The president of the Federal Reserve Bank of St. Louis, James Bullard, said in late November that the Fed should continue purchasing the securities. “I have advocated to keep the asset-purchase program open but at a very low level, and wait and see what happens,†he told Down Jones Newswires. (
The 2010 plan to encourage energy efficiency is the government rebate for appliance buyers. The plan lets people swap their old appliances for new energy-efficient models at very low prices.
President Obama proposed a program Tuesday that would reimburse home owners for installing energy-efficient appliances, windows, and insulation.
Federal Reserve Chair Ben Bernanke said Monday that he could make no guarantees that the current economic recovery will last, but he promised to keep interest rates at low levels for “an extended period.â€
Parents who are looking for a gift to give their kids this holiday season should consider a house.
