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Lawmakers Find A Way To Outfox 4-Year Old Tax Cheats

The DC braintrust may be onto something this time when it comes to the home buyer tax credit. Faced with an outbreak of fraudulent claims from home buyers using their 4-year olds as means to an $8000 reduction in their tax bill, the time had clearly come to throw in some safeguards for the next phase of the program. So lawmakers got together and did some serious thinking about how to stay one step ahead of the diabolically clever mind of the average four year old.

An agreement reached yesterday by the Democrats would let homeowners who buy a new home qualify for a $6,500 credit if they have lived in their prior residence for five years, according to Regan Lachapelle, an aide to Senate Majority Leader Harry Reid.

Homebuyer Tax Credit Would Expand to Owners Under Senate Plan [Bloomberg]