Interesting Article on the Homebuyers credit fraud

[kcjenkins]

http://blogs.smartmoney.com/tax/2011/02/15/homebuyer-credit-tax-fraud-for-fun-and-profit/

[Margaret CPA in OH]

I had a handful of these last year and was extremely careful in gathering all the documentation. After tax season last year my son mentioned that his new sister-in-law and her live-in boyfriend and baby daddy had gotten the $8000 credit because she 'bought' the house they were living in from her honey. Her honey's parents had bought the house for them because they were thrilled to become grandparents despite the circumstances. Since it was seller-financed (no proof of income required) and purchased from an 'unrelated' party, the sister qualified for the credit and promptly spent it on a huge television.

They have since split for good, she is attending school on Pell grants, he works as a bartender, etc. My son shakes his head as does his wife. She loves her sister and nephew but is so dismayed at her life choices and, frankly, the ripoff to other taxpayers, including her and my son and their parents, etc. by her sister and baby daddy.

I just don't understand the mentality that drives people to be so selfish. Then again, when our illustrious lawmakers enact such things to win votes and bring home the bacon to constituents, I guess an example of 'me first' is set for all to see. So sad when the country and a people as a whole are not the beneficiaries.