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First-time Home Buyers tax credit fraud
Posted by: clayfox
Date: June 29, 2009 01:55PM

A few difficulties to get past:
- You must be a first-time home buyer.
- The credit is for $8000 or 10% of the home value, whichever is less.
- The house must be your primary residence for at least 3 years.

Here's the fraud scheme: Person A buys a house for $80,000 from Person B. Person B gives all but their fee (less than $8000) back to Person A. Person A claims the $8000 tax credit. Person A is a first-time home buyer. Person B gets all mail at the address for the bought house and forwards it on to Person A. Person A lives quietly under the radar for 3 years.

Primary residence is difficult to determine, so mailing address, drivers license, and voter registration address are common things to determine validity of primary residence status.

There might be some gift tax problems with this scheme.

-clayfox

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Re: First-time Home Buyers tax credit fraud
Posted by: thrill
Date: June 29, 2009 02:40PM

And if the first-time home buyer does not sanitize his input, it may be possible to shell out of the database and gain root.

--thrill

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It is not the degrees you hold, but the mind you possess. - thrill

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Re: First-time Home Buyers tax credit fraud
Posted by: wireghoul
Date: June 29, 2009 07:47PM

The margin on a $8k refund for a $8k (10% of $80k) return doesn't sufficiently outweigh the cost of 3 years worth of mail forwarding in the scenario you outlined. There is also the problem of finding someone who is willing for sign their house over to you for free for 3 years so you can scam a few bucks, and each participant can only buy one house. Even as a pyramid scheme that is a far cry from riches.

If they bought the house for $8k, got $7,2k back and then claimed $8k it would make sense as you almost double your money, but then you would need a friend in the IRS when they audit you for buying a house for $8k...

[www.justanotherhacker.com]

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Re: First-time Home Buyers tax credit fraud
Posted by: sirdarckcat
Date: June 30, 2009 06:09AM

Where are the ponies?

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http://sirdarckcat.blogspot.com/ http://www.sirdarckcat.net/ http://foro.elhacker.net/ http://twitter.com/sirdarckcat

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Re: First-time Home Buyers tax credit fraud
Posted by: clayfox
Date: June 30, 2009 08:20AM

Perhaps we should just create fake identities for our Ponies and use them as the first time home buyers.

The lucrative part of this scheme would be selling 1000 one square foot lots each for $80,000, giving $79,000 back to each buyer who then gets $8000 for a net gain to the buyer of $7000, and a net gain to the seller of $1,000,000.

What other fraud schemes have you all encountered or thought up? I am in an organization that cuts checks and accepts electronic check payments. Someone finally figured out that they could take the numbers on the bottom of the check that we cut to them and use it in the electronic check payment site. It seems like there are a lot of simple fraud schemes out there and I bet the folks on this site have the right kinds of brains to think them up.

Might as well disclaimer: Fraud is bad. 'nuff said.

-clayfox

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Re: First-time Home Buyers tax credit fraud
Posted by: wireghoul
Date: June 30, 2009 08:21AM

I believe they are being painted...

[www.justanotherhacker.com]

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Re: First-time Home Buyers tax credit fraud
Posted by: marvin-r
Date: July 05, 2009 04:18AM

What if...i didnt use my first time homebuyer credit on buying a home?
Pinnacle Security

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