The Government Properties Income Trust has purchased the 135,819-square-foot Southpointe I office tower for $40.75 million. The three-story building has been occupied by the Internal Revenue Service since 1999. It is located at 7850 SW 6th Court in Plantation. The owner, Federal Partners, was represented by CB Richard Ellis’ Christian Lee, vice charman of the firm’s Miami office. TRD [more]

Most homebuyers who claimed the federal tax credit of up to $7,500 for buying their first home in 2008 are required to start repaying the credit in 15 annual installments, beginning with their 2010 tax returns, according to the National Association of Homebuilders. The credit — which was offered for qualified home purchases in 2008, 2009 and 2010 — has different repayment rules depending on when the home was purchased and as tax season approaches, this may cause confusion. “It is important that homebuyers consult a qualified tax professional to make sure they are receiving all the tax benefits as well as fulfilling the obligations of their home purchase,” said Bob Nielsen, chairman of the NAHB and a home builder from Reno, Nev. The Internal Revenue Service is sending a letter to taxpayers who claimed the credit that explains the repayment options. The credit for homes purchased in 2009 and 2010 does not have a repayment requirement unless the home ceases to be used as the taxpayer’s principal residence within three years of the purchase. The homebuyer tax credit program expired for the majority of Americans in 2010, with some exceptions, such as service members who were on duty. TRD

Nearly 1,300 incarcerated prisoners — 241 of whom were serving life sentences — were among those who received the popular federal homebuyer tax credit nationwide, according to a report released today by the Treasury Inspector G [more]

The first-time homebuyer tax credit may have been a little too popular, with many Americans so eager to take advantage of the incentive that they gamed the system. Almost $4 million in tax credits were granted to children as young as four years old, according to a CNN report. Some parents, it seems, applied for the first-time credit in their children’s names in attempts to work around the government’s income limits, which are $75,000 for single taxpayers or $150,000 for married taxpayers filing a joint return. Internal Revenue Service employees were among those who claimed credit they weren’t actually eligible for, the report said.

The offices of Miami attorney and accountant Lewis Freeman were raided Friday by agents of the Federal Bureau of Investigation, the latest step in the high-profile figure’s troubles with the government. The reason for the search remains sealed because criminal charges have not been filed. Freeman, who often serves as a receiver for bankrupt businesses and investors, sued the Internal Revenue Service in August over a $4.5 million civil assessment against him, but Fort Lauderdale tax litigator Martin Press, a partner with Gunster, said it’s unusual for the FBI to be raiding an office of someone involved in tax disputes. [GlobeSt]

Testing of defective Chinese-made drywall shows that toxic gases have
corroded metal fixtures and could affect residents’ health. Senator
Bill Nelson, who has led the legislative efforts to provide help for
affected homeowners, has been told by a senior Internal Revenue Service
lawyer that if it can be proven drywall emits an unusual or severe
concentration of chemical fumes causing extreme and unusual damage,
homeowners can qualify for casualty loss deductions. [more]

The government may offer tax deductions for homeowners whose properties
damaged by defective Chinese drywall pass the sniff test. The Internal
Revenue Service said the material must be found to emit an unusual or
severe concentration of chemical fumes that causes extreme and unusual
damage, but that provision could mean thousands of dollars in help,
according to the office of Senator Bill Nelson. He and other federal
legislators sought clarification on the assistance from the IRS last
month. [more]