Houses cost more than ever

significant barrier for Black folks looking to get started on the path.

“Often, because of that [history], we don’t want to dive into something. We’re overly careful, so to speak, and we overanalyze our situations, which oftentimes leads to a further delay in us accomplishing the goal —which is homeownership,” said Derrick Nutall, vice president of Citi Mort- gage’s Community Lending Team.

Homeownership is a lot like investing. The harms of the past by the government, banks, realtors, and anyone involved in the process causes a natural distrust.

Moving From Hope to a Plan Williams says, in addition to the history, there’s a lack of Black loan officers or loan officers who understand these problems enough to assist potential Black homebuyers.

Trust is enormous for the Black community. Black respondents in the Citi survey said speaking with a realtor or friends and family who’ve purchased a home could help them feel more knowledgeable or prepared to buy a home.

“Yes, there have been systemic challenges that have prevented us from really taking advantage of the American dream as it’s been put out there. But cur- rently, what I see as the biggest challenge is really just putting your foot forward to take that first step, which is finding out where we stand in the process,” said Nuttall.

To save up for a down payment, Black folks make meals at home more often, take on a second job or work overtime, avoid online shopping, and cut back on memberships and subscriptions.

On the federal level, the Biden administration made several changes to existing ous type of audit that can require in-person appearances, which Williams referred to as “audit court.” federal programs designed to make homeownership accessible, including a reduction for FHA-insured mortgages. The administration’s fiscal budget also included $10 billion to launch a first-generation down payment assistance program for firsttime buyers whose parents have never owned a home and are at or below their area’s median income.

“It’s similar to going to court for a traffic ticket or anything else, it’s just a little bit more personal because it’s you and it’s more examination of your documents,” she said. This type of audit is more common for business expenses.

Though the bias in tax auditing can’t be blamed on any specific choice made by an individual, especially for single fathers, Williams did say that Black parents sometimes are audited because of complicated family situations. If a child’s last name is different from the person caring for them, or if the address they live at is different from the one registered with a school, it can raise a flag.

Williams said an audit usually just means the IRS needs clarifying documents. But if it’s complicated or a person doesn’t understand what they might have done wrong, they can talk to a tax preparer.

“Work with a tax professional that knows and understands all of the tax laws because they change every year, and that understands how to apply them to their situation,” she said.

She also said if the kind of audit that requires in-person meetings is received, one can work with an enrolled agent, or a person qualified to represent clients before the IRS.

She said living in the Sacramento area can ease things because the IRS has an office locally where taxpayers can ask questions.

Especially if you’re Black, you might be audited because of bias in the system, not because there’s something wrong with your taxes.

(The post Bias in Tax Auditing Impacts Black Americans appeared first on The Sacramento Observer.)

Proving there’s hope— and a plan—51 percent of

Black survey respondents say they are currently saving for a down payment, and a majority believe they can purchase a home in the next three years or more.

“Developing a plan is simple,” Nutall says. “Implementing it can be challenging, but if you’re committed to it, you can continue forward and accomplish it.”