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Seller-Funded Down Payment Assistance Programs Are Not Tax-Exempt
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Seller-Funded Down Payment Assistance Programs Are Not Tax-Exempt

Organizations that provide seller-funded down payment assistance to home buyers do not qualify as tax-exempt charities, according to recent IRS guidance. Why is the IRS focusing on down payment assistance programs of exempt organizations?

What is the IRS doing to stop abuses involving down payment assistance programs sponsored by exempt organizations?

Is down payment assistance includable in the homebuyer’s income?

Additional resources:

News release IR-2006-74

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