The Perp?
Posted on 10/22/2009 9:52:38 AM PDT by TigerLikesRooster
Four-Year Old Buys House With Federal Money
Vincent Fernando|Oct. 22, 2009, 11:08 AM |
The stories about a return to bubble-era lending standards are getting too depressing to bear.
There are the no-down payment loans backed by the USDA, the FHA mortgage worth more than 110% of the value of the home, and now this: babies buying homes.
Georgia Congressman John Lewis is holding hearings:
“We will hear today that taxpayers claiming the credit include those: who already owned a home, who had not yet bought a home, and who are children—some as young as four years old. There are possibly hundreds of millions of dollars that have been paid to taxpayers who are not entitled to the credit. We want to, and we need to, stop this fraud and abuse.” [Quote from Rep. John Lewis at the House Ways and Means Subcommittee today]
(Excerpt) Read more at businessinsider.com ...
Ping!
Is this an admission that a four year old is smarter than Obama’s bail out finance team?
Mind you, the government says Healthcare reform won't end up costing much, because the government will squeeze out all of the waste, fraud, and abuse.
It's what they're good at. [/sarcasm]
That’s mighty racist of you to use a white child. What exactly are you saying? ;-)
The article says four-year-old.
The picture you posted wouldn’t qualify. He’s TOO young.
I never saw any age requirement in the bill, so why couldn't a 4 year old be a first time buyer? Sound like someone rushed a bill into law before reading it.
The list, ping
What is interesting is we are in the middle of buying a house with 50% down and you cannot believe the hoops we are going through to obtain the loan for the balance. They want documentation for everything including transfers into our bank accounts. I just told my wife this is so simple that even a 4 year old can too it. Hahahaha.
It would DEFINITELY be “racist” if the child in the story were black and we were attempting to deny him the right to purchase a house.
It’s amazing isn’t it?
Those who are responsible and have money to put down, good income, good credit, etc,
have to jump through all sorts of hoops,
while the “less fortunate” are getting mortgages shoved into their hands.
This is always the way with the left, and they are in power now.
Reward sloth and imprudence.
Punish responsible behavior.
There is nothing in the IRS rules that says an infant can't be a first time homebuyer. I fail to see where the fraud is in those cases. The only people excluded are non-resident aliens. Illegal aliens actually qualify for the credit if they have a green card or have lived here for more than 31 days.
Here he is...
These are probably the same idiots that claim charitable donations that never happened and have a "corporation" that can take deductions.
If some parent wants to help their 4-year-old buy a house, was congress smart enough when writing their tax dollar giveaway to keep that 4-year-old from getting a refundable tax credit?
I just want to know how many pets purchased homes under the first-home program.
"Thanks to Big Government, at age 4 I'm already $38,752.06 in debt and all I own is this doll house!!"
Most likely scenario: Parents fraudulently filed a tax return claiming the $8000 credit. This is simple tax fraud and the kid will be without parents for a couple of years. “
The $8000 credit applies to this year-2009, IIRC.
That tax return cannot be filed before Jan of next year. The forms are not even available yet.
I think it is only fair as young people and children yet unborn will have to pay off ( maybe )all these debts that they get houses too.
/sarc
this is no different than parents who buy a car in a “too young to drive” kids name.
As long as the bill is actually paid, this kid has now bought real estate AND has a tax deduction, AND has a major write off.
This is no different than putting money in an IRA for a 5yr old.
You leave my Fluffy out of this!
contracts ARE allowed, they just enforceablity issues.
How do you know this is not in a trust?
There ARE minors who have trust incomes.
There is no fraud needed, a zero income return is truth AND qualifies if dad and mom also cosign.
The tax credit can be claimed for 2008. The forms are available online.
Thanks for the ping.
Contracts entered into by minors are BY LAW in most states VOID with the exception being conctracts for necessities.
If the house was purchased by a trust, the trustee, who by law in all jurisdictions I am familiar with must be of age to contract, would be the buyer of the home not the 4 year old. In that case the TRUSTEE would be required to file the return on behalf of the beneficiary and would be subject to the same sanctions by the IRS PLUS others for breach of fiduciary duty.
If the beneficiary is recieveing income from the trust, the trustee is required to transfer the money to an adult in order to avoid the unifrom transfer to minors act which prohibits certain transfers to minors. Once you avoid that hurdle, the parents could "co-sign" for the child and "buy" the house for him, but at this point you have more issues than most mortgage brokers are willing to deal with.
Obviously you could throw in a private party mortgagee as a hypothetical in order to make it work, but in all these cases I suggest to you that without more facts, this would not have been reported if the bottom line purpose of the "purchase" was to fraudulently apply for and recieve the new home mortgage credit.
What an opportunity for the 4-year old. Buy the house, then file bankruptcy. By the time the kid reaches 18 he will have a clean slate!
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