Home buyers to Repay their Home buyer Tax Credit? Who's to Blame?

Last month CNN Money ran an article titled " Homebuyer Tax Credit: 950,000 must Repay." The bottom line on the discrepancy is that the home buyers that purchased their home by the end of 2008 were allowed up to a 10% deduction (not to exceed $7500, whichever was less). This was for intensive purposes a loan. In 2009, Congress extended the program and changed the guidelines to make it a credit and not a loan. To discuss even further, the IRS is having a tough time determining the actual sale dates and assessing who owes what in taxes.

My question is this...Who's to blame in this scenario? Is it the government for changing up the programs and not making the terms of it well known? Or, is it the home buyer for either not understanding all of the details or not purchasing their home within the allotted time lines? Or, for those buyers that utilized a real estate agent to aid in helping them procure the home are the agents at fault for not helping their clients understand the different ramifications of the programs? Well, it probably is a mixture in most scenarios but at the end of the day the home buyer is the one that is affected the most by this. I hope that the real estate agents were giving their clients the proper information and whether or not the home buyers handled it correctly is between them and their accountants.

In Charlotte, NC where I work we did see an increase in sales due to this government program. I've seen evidence nationally as well of the results in pending sales increasing before the deadline dates. Please leave your comments on how you feel on this topic of tax repayment.

Mike Moulton, Broker In Charge
Bee Home Solutions, Inc.
704-885-0488