Home Tax Credits Given to 14,100 Taxpayers in Error
Government home buyer tax credit program
A report by Treasury Department showed that more than 14,100 taxpayers wrongly received home buyer tax credits. The report estimates that at least $26.7 million in tax credits went to people who did not qualify.
Also, the Treasury Department showed that 1,295 inmates filed fraudulent home tax credit claims totaling $9.1 million. In an example of fraudulent home tax credit claims, one home was used by 67 taxpayers to claim credits, according to the report.
Carlsbad real estate
Home Buyer Tax Credit Rules
home buyers tax credit
The IRS has issued guidance that spells out the revised income limits for homebuyers claiming credits: Your modified adjusted gross income must be $125,000 or less if you are single, $225,000 or less if you are married filing jointly. Above these limits the allowable credit amount begins to phase does in increments, and is eliminated completely once incomes hit $145,000 for singles and $245,000 for married joint filers.
There are pitfalls as well: An advisory posted by the IRS earlier in the month spelled out situations where recipients of tax credits may have to repay them to the government. Read more 
Home Builders Has Largest Up-Tick in Five Years
The National Association of Home Builders index rose to it's largest monthly increase in the past five years. This is great news, but it still shows that only about one in seven builders thinks business is good or fair.
The reasons behind this real estate market are really no secret: mortgage rates near all-time lows, both Federal & California state home buyer tax creditsand the optim real estate buying season.
Here in California, besides the $8,000 first time home buyer's credit, California has a 5% (max. $10,000) new home credit. This combined with home mortgage rates around 4.75%, all make for a very appealing reason to get a home of your own. San Diego Realtor