Horsham Real Estate

Mortgage Interest Deduction

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Sun, 19 May 2013 07:19:12 -0700

NEXT IN OUR SERIES: MORTGAGE INTEREST DEDUCTION- USE IT OR NOT, BE AWARE

Topic Summary: In the last edition we alerted you that Congress is laying the foundation for comprehensive tax reform. (article is below) Sure to be part of those conversations is the Mortgage Interest Deduction (MID) that millions of homeowners benefit from. In this ongoing series we aim to keep you up to speed on the talks in Washington. We will give you an opportunity to get your views across to your elected officials and generally will be a valuable source of information as tax reform takes over the activity in Washington.

But I Don't Have A Mortgage. Why Should I Care?

If certain provisions in any new tax reform are counter-productive to a robust housing market, all homeowners will lose out. If you have a paid off mortgage are you still deducting state and local property taxes? They are talking about these too. For many homeowners, property taxes are their largest tax deduction, one that continues even after a mortgage is paid off. Just remember if less people can afford to buy a home, selling yours will be more difficult.

What To Believe: If you benefit or not from the MID, you should be aware of some of the myths that are floating around that distort the conversation on the merits of the tax provision. Our friends at Houselogic have added their research on 6 MYTHS ON THE MORTAGE INTERST DEDUCTION

By The Numbers. State By State Usage Of The MID

Recently the Pew Organization added some of their findings to the conversation on Tax Reform. They wanted to find out if the benefits of the MID were evenly distributed throughout the country. In other words, where do you stand in relation to other states?

The percentage of tax filers deducting mortgage interest in 2010 ranged from a high of nearly 37 percent in Maryland to a low of 15 percent in West Virginia and North Dakota. The Pew Organization's very comprehensive report can be downloaded HERE

Last Edition's Coverage of The Topic:

Topic Summary: As part of the ongoing effort by House lawmakers to craft comprehensive tax reform legislation in 2013, the House Ways and Means Committee welcomed testimony from real estate industry executives and economists on the merits of the mortgage interest deduction (MID). On the "keep things as they are side" caution was advised not to harm the very robust housing recovery by adding new tax policies that will lead to uncertainty for homeowners.

Just In: The national median existing-home price for all housing types was $184,300 in March, which is 11.8 percent higher than March 2012. The March increase is the strongest since November 2005 when it rose 12.9 percent from a year earlier, and the last time there were 13 consecutive months of year-over-year price increases was from May 2005 to May 2006.

Not If, But How: Many in Washington and real estate circles feel that something will be done to the cherished deduction this year. While pledging a "careful, thoughtful review," House Ways and Means Chairman Dave Camp asked several experts for their ideas on how to alter the MID to raise more revenue for the government. Any changes that come about or even discussed can have a chilling effect on the real estate industry and future homebuyers and sellers.

First Some Facts:

The deduction for mortgage interest has been part of the federal income tax code since its inception in 1913. Despite a century of additions, modifications, deletions and overhauls of the tax code, Congress has left the mortgage interest deduction untouched.

Current law allows a homeowner to deduct the interest paid yearly on up to $1 million in total acquisition debt for a principal residence and a second, non-rental home. Homeowners may also deduct the interest on up to $100,000 in home equity debt.

According to estimates from the Joint Committee on Taxation, (JCT) the mortgage interest deduction will cost (loss revenue) $75 billion in fiscal year 2015, real property tax deductions will cost $30.4 billion and the exclusion of capital gains on owner-occupied housing will cost $26.0 billion.

In 2012, 34 million households, or 22 percent of tax filers, claimed the home mortgage deduction. That cost the federal government $68 billion in forgone revenue, according to estimates from the JCT

Less than a quarter of the deduction's benefits, the JCT says, went to households making less than $100,000 in 2012, and the deduction is only available to the roughly one-third of households that itemize.

Ideas on The Table

There are three ways Congress could play with the home mortgage deduction: the direct way, a "back door" way and a gradual way.

The direct way to raise more revenue would be to reduce the amount of the deduction--for example, it could be limited to homes (mortgages) worth $500,000 or less, rather than the current $1 million dollar limit.

It could also be eliminated entirely for second homes. The most extreme measure would be to phase out the deduction entirely. Such attacks would be strongly fought by the real estate industry and hopefully homeowners.

The Sneaky Way. Instead of specifically targeting the home mortgage deduction, a cap would be placed on all itemized tax deductions. The Obama Administration has already proposed capping such deductions at 28% for households earning more than $250,000. This would substantially reduce the value of the home mortgage deduction for high income taxpayers.

For example, Under the President's proposal, married taxpayers with adjusted gross income greater than $250,000 would normally see a $35.00 benefit for every $100 in itemized deductions but instead they would receive only a $28.00 benefit for every $100 in itemized deductions.

The Gradual Way. Some are suggesting just wind down the value of the deduction over several years to lessen the sting on the economy and home prices.

Don't forget other deductions are also being talked about for reduction too. The ability to deduct property taxes cost the government $30 billion last year. A Home seller's ability to exclude capital gains on a home sale reduced revenues about $26 billion.

Timeframe: The tax writers indicate they want to get substantive tax reform done this year. We will be keeping a watch out for any news on this important issue facing current and would be homeowners.

contact John Handschuh for Horshjam Real Estate

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Tracking Stock Trades

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Wed, 15 May 2013 14:31:53 -0700

BE PAINSTAKING IN TRACKING ONLINE TRADES

You don't have to be a day trader to run into a potential tax trap awaiting investors who buy and sell stocks online. Many active traders don't know that every stock sale they make must be reported to the IRS - even if numerous trades are made each day.

Keep a meticulous log of your online trades. When it's time to file taxes, you will need to list each security sold, the cost, the dates, and the capital gain or loss.

You get some of this information from your broker. The problem is that many brokerage firms send 1099 forms that only record the sales price.

To calculate your gain or loss, you must track down the purchase price by looking at old statements or by contacting your brokerage firm.

Some brokers - especially full-service firms - are better than others at readily providing the data you need.

The bottom line: You don't want to scramble in April to track down the necessary information. Keep good records as you trade so you can quickly provide a summary of every stock in your portfolio. IRS auditors are targeting online traders to make sure they follow all the reporting rules.

If you're too busy to maintain the proper records yourself, find a broker to help. Some firms offer software or detailed reports that can help investors complete their tax returns. There is also software available that can help keep you organized.

Contact John Handschuh for your Horsham Real Estate john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Stocks & Taxes

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Mon, 13 May 2013 04:40:27 -0700

TRADE YOUR SPLIT STOCK FOR THE BEST TAX RESULT

Specify the Shares
You Want to Sell

Assume that, a few months ago, you bought 2,000 shares of stock in a Company A for $10 a share. The company has just announced a two-for-one split. That means you now own 4,000 shares with a basis of $5 a share.

As you can see, the split itself doesn't increase the value of your investment. But it could make a big difference in your tax bill when you trade the shares later on.

A few months after the split, the stock price starts to rise. You buy another 500 shares at $8 a share. Shortly thereafter, you sell 500 shares at $9 a share.

Your Gain

So what is your taxable gain? Is it $1 per share? It depends. Unless you specify otherwise, the IRS will assume that the shares you've sold are the original shares you purchased. In that case, your taxable gain is $2,000, or $4 per share ($9 sale price less $5 basis after the split). If you prefer to let the original shares grow in value, tell the IRS that you are selling the shares you purchased most recently. You'll have to record the stock certificate numbers in chronological order and give written instructions to your broker.

No matter which shares you sell, be sure you've held them for more than a year. That way, your profit will be taxed at the reduced capital gains rate of 15 percent. Otherwise, you'll be taxed at your ordinary rate - as high as 35 percent, plus state taxes.

Note: For 2008-2012, the rate will drop to zero. The same preferential treatment will also apply to qualified dividends received through 2012.

Contact John Handschuh for your Horsham Real Estate

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Mortgage Interest Deductions

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Sat, 11 May 2013 14:51:34 -0700

MORTGAGE INTEREST DEDUCTION FRONT AND CENTER IN CONGRESS

Not if , but how. Many in Washington and real estate circles feel that something will be done to the cherished deduction this year. While pledging a "careful, thoughtful review," House Ways and Means Chairman Dave Camp asked several experts for their ideas on how to alter the MID to raise more revenue for the government. Any changes that come about or even discussed can have a chilling effect on the real estate industry and future homebuyers and sellers.

Fist Some Facts:

In 2012, 34 million households, or 22 percent of tax filers, claimed the home mortgage deduction. That cost the federal government $68 billion in forgone revenue, according to estimates from the JCT

Ideas on The Table

There are three ways Congress could play with the home mortgage deduction: the direct way, a "back door" way and a gradual way.

The direct way to raise more revenue would be to reduce the amount of the deduction--for example, it could be limited to homes (mortgages) worth $500,000 or less, rather than the current $1 million dollar limit.

The Sneaky Way. Instead of specifically targeting the home mortgage deduction, a cap would be placed on all itemized tax deductions. The Obama Administration has already proposed capping such deductions at 28% for households earning more than $250,000. This would substantially reduce the value of the home mortgage deduction for high income taxpayers.

The Gradual Way. Some are suggesting just wind down the value of the deduction over several years to lessen the sting on the economy and home prices.

contact John Handschuh for your Horsham Real Estate John@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Credit Scores

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Sun, 05 May 2013 04:57:05 -0700

CRUNCHING THE NUMBERS: WHAT'S THE SCORE?

Topic Summary: Consumer Groups and Congress are advocating for consumers to receive a free credit score once per year. Also we review a popular credit checking site that we feel is worthy and gets "two thumbs up".

On March 6, Senator Bernie Sanders from Vermont and Representative Steve Cohen (TN) introduced legislation in the House and Senate, called the Fair Access to Credit Scores Act. If passed the Act would that require credit reporting bureaus provide consumers with a free credit score. There are several companies out there that will provide you a credit score for a fee or with some sort of annual membership. There is much confusion in the credit reporting industry due to the different types of credit scores that are available for credit grantors to use. So if given a credit score, a consumer could not be 100% assured that it is the same one that a credit card company would have or a mortgage company would use.

Recently, the Consumer Finance Protection Board released a study HERE that indicated major discrepancies are possible when consumers are given one score and a credit grantor has another they use to determine credit worthiness. In up to 24% of the cases, the agency found, a consumer might see a score that was one tier off from what a lender would see. That means a consumer could see a score in the "excellent" range of 740-plus, while a lender saw only a "good" score in the 680-740 range, or vice versa. In as many as 3% of cases, the scores varied wildly. Be aware of this confusion when seeking credit.

Let's hope Congress clears up this mess.

Web Site Review: Credit Reporting and Monitoring.

WWW.creditkarma.com. This site is getting rave reviews for being easy to use and free. There are some ads that come with the service but generally they are not intrusive. Once you register, CreditKarma goes to work monitoring your balances, payments and any warnings are given to you by email.

Highlights

Get Your Free Credit Score

Credit Karma believes that every consumer has a right to access their scores. You'll get four credit scores along with free credit tools to help you better understand what a good credit score is. Even better, you'll receive your free credit score without a credit card.

Get Your Free Credit Report Card

The totally free Credit Report Card is an easy-to-understand summary of your credit report details. Use the Credit Report Card to gain a better understanding of your credit history and how it impacts your credit health.

Enroll in Free Credit Monitoring

Credit monitoring can help prevent identity theft and inaccurate information from appearing on your credit report. You'll receive an email when something important changes in your credit report.

Gain Insight into Your Credit Report

Along with your free score, you'll see important details of your credit report for free. In addition to your free Credit Report Card, you can view the details on your individual credit cards, mortgages, auto loans and personal loans. You can use this section to spot any fraudulent or mistaken accounts on your credit report, maintain a record of your reported balance history, keep tabs on your credit card utilization rate, and receive recommendations for new loans and credit cards.

Contact John Handschuh for your Horsham Real Estate

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Cable TV Trends

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Tue, 30 Apr 2013 04:22:39 -0700

HOME TRENDS: WILL YOU MISS THE DISHWASHER REPAIR CHANNEL?

We all know Cable TV pricing is going through the roof. In the last 5 years, Cable TV basic level packages have gone up over 7% every year. Today's younger; more tech savvy households are ditching Cable TV and even their televisions. The industry consultant, Nielsen, just reported a new trend called "Zero TV Households", families that do not pay for ANY cable or Satellite TV plan and in fact do not have a television. There are 5 million of these residences in the U.S., up from 2 million in 2007. Most of these households access their entertainment over the internet and use services such as NetFlix and HULU.

What is prompting the consumer outrage? Prices and Principle. The Cable TV companies say their programing costs are a big part of the increases in the plans subscribers pay for. When content providers like ESPN and Bravo raise their rates they charge to carry their content, the Cable TV companies, like Comcast and Time Warner, have to put up their rates. In Los Angeles last month the Cable TV company, Time Warner Cable, signed a programming deal with the LA Dodgers baseball team estimated to be worth $7 billion over many years. Prices for all Cable TV subscribers will go up at least $5 per month even if households do not watch any sport channels. Add to that the same subscribers are paying around $6 per month for ESPN. So about $100 per year per is being spent by every household subscriber. ESPN is the costliest content provider in the Cable TV space.

But are you really paying $6 per month for ESPN. Yes and no! Cable TV plans are sold in packages or levels. Basic plans may have 30 or 40 channels. If you want local news and a few movie channels you have to take (pay for) every channel in the package. Higher tiers can deliver 600 channels or more. But when you understand the average household watches only 10 channels, you can see the disconnect. Why does the seemingly endless line of new channels keep popping up? Why does every subscriber have to pay for the dishwasher repair channel?

In the next edition we will cover "a la carte" pricing. Here, consumers would presumably pay for just the channels they want but there are downsides to this that we will get into. In the third installment, we will provide you coverage of websites and services you can try out if you are considering "cutting the cord" on Cable TV.

A recent survey indicated within the next six months, 1.3% of current pay TV customers said they plan to switch to an online service like Netflix in lieu of cable or satellite while 4% said they simply planned to drop pay TV altogether.

contact John Handschuh for your Horsham Real Estate needs john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Interesting tips

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Thu, 18 Apr 2013 06:03:15 -0700

WHILE ON THE YARD SALE THEME- A NEW CONSUMER TREND: CROWD SHARING

Topic Summary: As more and more consumers get connected and with smart phones glued to our ears, the net is powering news ways for consumers to engage in a "shareable" world. We are used to the concept of car rentals but this new collaborative trend is fueling all sorts of possibilities to rent, share and go green. Social media is also adding to the rapid expansion of the trend.

< Just In! Wal-Mart thinking about having customers drop off purchases for their neighbors- with incentives added >

Today if you have an "asset", a boat, car bicycle, 2nd home etc., there is bound to be a place on the web where you can go and let everyone know it's available for rent. From garden tools to a exotic homes, the web is making it easier to conduct commerce in ways that were non existent years ago.

About 5 years ago, in large cities, a concept called Zip Car came about. (http://www.zipcar.com) This service allows city dwellers to rent a car, in their neighborhood, just for an hour or two. This idea makes sense and is very cost effective but recently the trend is getting more pervasive.

In the same space as eBay, a site called Swap Your Stuff (http://market.swap.com) allows easy interaction to buy, sell or rent personal items without going through eBay.

But one area that can use some modernization is children's clothing. Estimates are that about 1/3 of children's clothes never get used. Now there is a market where others might take a shot at buying gently used clothing. A site called Threadup http://www.threadup.com powers this trend. For the giddy teen who must always have the latest, trendy clothes, there is http://www.swapstyle.com. This site lets you take a picture of clothing you no longer want and upload it to the web, sharing it with others who want to cut a "Swap Deal".

Dream Vacations By The Night.

Crowd sharing has not left out the vacation industry. Now it's possible to rent wonderful properties by the night. This site, http://www.airbnb.com has some great ideas for domestic and international get-aways.

Hail a Bike, Not A Taxi" One of the fastest areas where this crowd sharing is seen is bicycle sharing. It started in Washington, D.C. and now is rolling out in New York ( http://a841-tfpweb.nyc.gov/bikeshare and in Houston http://www.bcycle.com and to much smaller cities. Instead of taking a cab 15 blocks, swipe your debit card and jump on a bike. There is an obvious savings in terms of dollars but also the trend creates a positive impact on the environment.

How To Get The Trend Going Locally:
With the pervasiveness of social media there are organizations in your area that would probably help you create a space on their website to share, swap or sell just about anything. Your local newspaper is a good start.

contact John Handschuh for your Horsham Real Estate john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Spring Time Tips

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Mon, 15 Apr 2013 04:59:21 -0700

IT'S THAT TIME OF YEAR TIPS / GARDENING AND YARD SALE RESOURCES

Topic Summary: Most homeowners that get a spring itch to start planting, know that proper planning is the key to successful gardening. Here are tips on saving money on watering the garden, 7 mistakes to avoid and some unknown tips on adding to your home's value by growing the right kind of trees. These resources are from HouseLogic.com. At the bottom are some resources on getting the most out of Yard Sales and how to produce a successful one.

Saving water in your garden and yard trims your water bill and saves an increasingly scarce natural resource. Here is the Tip Sheet

Gardening is not rocket science: if you can dig a hole, turn on a spigot, and snip a dead flower off a vine, you can tend to a garden. But here are some things to avoid

Trees don't ask for much - dirt, water, sunlight. Yet they provide a wealth of benefits: They improve the air you breathe, cut your energy bills with their shade, provide a home to wildlife, and add beauty and value to your home. Get all the latest info and a calculator to see just how much value trees can deliver.

Have an Ipad? Here is a review of some of the best gardening Apps

Yard Sale Time!

Get a more productive Saturday morning with these tips.

Also if you plan on running your own yard sale, be sure to check out these tips

Contact John Handschuh for your Horsham Real Estate john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Estate Planning

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Wed, 27 Mar 2013 04:22:42 -0700

IDEA: ROTH IRAS AS AN ESTATE PLANNING TOOL

Tax Savings that Live on for Years

Roth IRAs are a great tax saving tool. The reason: Investments held in a Roth IRA are allowed to build up federal-income-tax-free. Later on, you can take federal-income-tax-free withdrawals. Obviously, a zero tax rate is the best rate going.

Tax-Free Roth Withdrawals

    There are only two requirements for tax-free withdrawals. You must:
    1. Have a Roth account that's been open for more than five years.
    2. Be age 59 1/2 or older.

In addition to being great tax saving tools for retirement, Roth IRAs also provide tremendous estate planning advantages -- especially if you can get a large portion of your wealth into an account.

Unfortunately, getting lots of money into a Roth IRA is not so easy. It can take many years of annual contributions. However, there's also one very quick way -- by converting an existing traditional IRA or SEP account into a Roth IRA. There are no limitations on the size or number of converted accounts. Naturally, under tax law, there is a price for allowing you to jump start your Roth IRA savings program with a conversion. Even so, it may be worth the price.

Roth Conversion Basics

A Roth conversion is treated as a taxable distribution from your traditional IRA. In other words, you're deemed to receive a taxable cash payout from your traditional IRA with the money going into the new Roth account. So the conversion triggers a current income tax bill. In most cases, however, this negative factor is outweighed by the following positive factors.

You don't have to pay the 10 percent premature withdrawal penalty tax on the deemed distribution that results from the Roth conversion transaction. This is true even if you're under age 59 1/2 when the conversion takes place.

Your conversion tax bill is significantly lower, thanks to the individual income tax rate cuts extended through 2012. Some people believe the tax rates we have today could be the lowest rates we'll see for the rest of our lives. No one knows, of course, but now could be a good time for a Roth conversion.

The value of the traditional IRA (or IRAs) you want to convert may still be down because of poor investment performance in recent years. However, a lower account balance means a lower conversion tax bill, which is a good thing.

Now for the Estate Planning Angle

The usual reason for converting a traditional IRA into a Roth account is to earn tax-free income that will be withdrawn after age 59 1/2 to help finance your retirement. But if you don't really need the money for retirement, there's another less-publicized advantage to converting. Let's say you would like to pass along as much wealth as possible to your heirs. If so, a Roth conversion transaction can be a great estate planning technique for you.

Don't misunderstand. Roth IRA balances are not exempt from the federal estate tax (nor are traditional IRA balances). However by paying the up-front Roth conversion tax bill, you effectively prepay your heir's future income tax bills while reducing your taxable estate at the same time. And this prepayment of income tax doesn't result in any gift tax or diminish your $5.12 million federal gift tax exemption for 2012 (up from $5 million in 2011) or any federal estate tax exemption.

But there is even more to pass on to your heirs. A big advantage of Roth accounts is they are notsubject to the required minimum distribution rules that apply to traditional IRAs. These rules force the account owner to begin liquidating his or her IRA after turning age 70 1/2. Of course, this means Uncle Sam and state tax collectors take their cut in the form of taxes on the distributions. When you don't need the IRA money, being forced to take these required minimum distributions and pay the resulting income taxes can be pretty costly.

But converting a traditional IRA into a Roth account stops required minimum distributions. Once a conversion is complete, you are free to leave the account balance untouched and accumulate as many tax-free dollars as possible to pass along to your heirs.

However, the required minimum distribution exemption ends when you die. At that point, the Roth IRA falls under a set of the required minimum distribution rules that apply to all inherited IRAs (traditional and Roth). If your heirs are disciplined enough to take only the annual required minimum distribution amounts from the inherited Roth IRA, the account liquidation process can be strung out for many years, as the following example illustrates.

Example: A taxpayer is 65 when he converts a traditional IRA into a Roth account. He lives for eight more years and never takes any withdrawals. The taxpayer's wife is age 70 when he dies. She inherits the Roth IRA because she is the designated account beneficiary.

According to the IRS single life expectancy table, the wife can expect to live another 17 years. Under the required minimum distribution rules, she can treat the inherited Roth account as her own, so she is not required to take any minimum distributions during her lifetime. Assume she doesn't take out a dime. At age 87, the wife dies and leaves the Roth IRA to the couple's daughter, who was designated as the new account beneficiary after the husband died and wife took over the account.

At that point, the daughter is 55-years-old. The IRS single life expectancy table states she should live for another 30 years. She must start taking required minimum distributions and gradually liquidate the inherited Roth IRA over that 30-year period. Of course, all of her withdrawals will be free of any federal income tax. (Her father effectively prepaid the federal income tax bill at the time of the original Roth conversion transaction many years earlier.)

Assume the daughter is smart enough to take out only the required minimum distribution amount for each year. By doing so, she preserves the inherited Roth account's tax-free earning power for as long as possible (30 years in this case, assuming she lives to her statistically expected age).

So under the facts in this example, the Roth IRA is allowed to earn tax-free income for a total of 55 years: 8 years with the husband, 17 years with the wife, and 30 years with the daughter. That's pretty good mileage for the account considering the account owner was 65 when he made the Roth conversion transaction.

What happened in this example? In effect, the husband and wife took advantage of the Roth IRA rules to establish a nice federal-income-tax-free annuity for their daughter.

For this planning technique to work as it does in the above example, you must take four steps:

Step 1 - Designate your spouse as the Roth IRA beneficiary before you die.
Step 2 - After your death, your spouse must treat the account as his or her own by re-titling it in his or her name.
Step 3 - Your spouse must also name your child as the new Roth IRA beneficiary.
Step 4 - Finally, your child must begin taking annual required minimum distributions by no later December 31 of the year following the year of your spouse's death. Otherwise, your child will be required to liquidate the inherited Roth IRA after only five years, which would end the tax-free strategy prematurely.

As you can see, a Roth IRA can be a great estate planning vehicle. However, before implementing this strategy, get professional advice about the conversion tax consequences and the estate planning considerations.

contact John Handschuh for your Montgomery & Bucks County Real Estate Requirements. john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

DIVIDING YOUR ASSETS, AND TAX BILLS, DURING A DIVORCE

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Thu, 21 Mar 2013 07:46:17 -0700

Ways to Avoid Tax Pitfalls

When a divorce happens, there are often major financial consequences and some important tax issues too. Here are the tax rules that generally apply when a couple's assets are split up in a divorce property settlement.

State Law Is Important

How assets are split up in a divorce depends largely on where the divorcing couple lives. The following nine states are community property states: California, Texas, Washington, Wisconsin, Arizona, Nevada, New Mexico, Louisiana, and Idaho. In these states, the general rule is that community property assets (i.e, assets accumulated by the couple during their marriage) are considered to be owned 50/50. Assets that were owned by one spouse before the marriage, or that were received by one spouse as a gift or bequest during the marriage, are generally considered to belong solely to that person.

All the other states except Mississippi are so-called equitable distribution states. In these states, the general rule is that the divorcing couple's assets are divided according to "whatever is fair" in the opinion of the divorce court. As a practical matter, this often works out to be a 50/50 split. However, a 50/50 split is not mandated by law in these states. (In contrast, a 50/50 split generally is mandated by law in the nine community property states.) Of course, a divorcing couple can also agree out of court on their own version of "what is fair."

In Mississippi, the general rule is that each spouse walks away with the assets that are titled in his or her own name.

Divorce Tax Basics

Now let's talk about the federal tax aspects of divorce. The general rule is that the division of property, including cash, between divorcing spouses has no immediate federal income tax or federal gift tax consequences. Why? Because Section 1041(a) of the Internal Revenue Code generally mandates tax-free treatment for transfers between spouses of real estate, personal property, investments held in taxable accounts, business ownership interests, and similar assets both before the divorce and at the time the divorce becomes final. Such transfers are considered gifts between spouses. As such, no federal income tax or federal gift tax is due.

This same tax-free treatment also applies to post-divorce transfers between ex-spouses if they are made incident to divorce. Transfers incident to divorce mean those occurring within:
1. One year after the date the marriage ends, or
2. Six years after that date as long as the transfers are made pursuant to a divorce or separation agreement.

When a transfer falls under the tax-free transfer rule, the spouse (or ex-spouse) who receives the asset takes over the existing tax basis in the asset (so a carryover basis rule applies). The spouse who receives the asset also takes over the existing holding period for the asset (in other words, a carryover holding period rule applies).

Important: The tax-free transfer rule doesn't automatically apply to tax-advantaged retirement accounts (you must jump through some hoops to get tax-free treatment). Also, the tax-free transfer rule is inapplicable to taxable investments to the extent of accrued ordinary income (more on that later). Finally, the tax-free transfer rule doesn't apply when the spouse who receives the asset is a nonresident alien.

Although the tax-free transfer rule applies to most divorce-related asset transfers, the federal income tax implications are still extremely important. Why? Because the spouse who winds up owning appreciated assets (fair market value in excess of tax basis) under the tax-free transfer rule must recognize taxable income or gain when those appreciated assets are sold (unless some exception applies, such as the exclusion for gain on sale of a principal residence).

Key Point: When one spouse ends up with 50 percent of the couple's assets in the form of cash while the other person ends up with 50 percent in the form of appreciated assets, guess who got the short end of the stick? The person who received the appreciated assets, that's who. For this reason, divorce property settlements should be based on net-of-tax values (fair market value of assets reduced by any built-in tax liabilities). That way, the agreed-upon split (50/50 based on net-of-tax values, or 60/40 based on net-of-tax values, or whatever) won't create any unexpected or unfair tax outcomes for either party.

Splitting Up Investments Held In Taxable Accounts

Under the tax-free transfer rule, divorcing spouses can usually make tax-free transfers of investments held in taxable accounts (or in a safe deposit box or under a mattress for that matter) while they are still married

After Divorce:
Only Certain Transfers are Tax Free

Special care is required for post-divorce transfers of appreciated assets to an ex-spouse. Such transfers are tax-free only if they are considered incident to divorce.

Within one year after the divorce, transfers automatically pass this test. For a later transfer to be considered incident to divorce, it must be shown that the transfer is related to the cessation of the marriage. This generally means the transfer must:

1. Occur within six years of the divorce.
2. Be required under the divorce property settlement agreement (including any post-divorce amendments to said agreement).

If you plan to transfer appreciated assets to your ex-spouse more than one year after the divorce, the divorce papers should clearly identify such transactions as being part of the property settlement. Otherwise, you could be treated as making a taxable sale or a gift to your ex-spouse. This could result in a tax bill or it could diminish your $5.12 million federal gift tax exemption in 2012 and your $5.12 million federal estate tax exemption for 2012 (both exemptions are up from $5 million 2011).

or when the divorce becomes final. The same is true for post-divorce transfers between the parties, provided they are made incident to divorce, as explained in more detail in the right-hand box.

Remember: After a tax-free transfer, the recipient spouse's tax basis in the investment is the same as before and so is the holding period.

Example: Let's say your divorce property settlement calls for your soon-to-be-ex-spouse to receive all of your long-held stock shares. Assume the tax-free transfer rule applies. Accordingly, there's no immediate tax impact on either you or your spouse when the shares are transferred. Instead, your spouse just keeps on rolling under the same tax rules that would have applied had you continued to own the shares (i.e., carryover basis and carryover holding period).

The same results would apply if the stock shares were:

Held as community property.
Jointly owned by both you and your spouse.
Owned solely by your spouse. In any of these cases, when your spouse ultimately sells the stock shares, he or she (not you) will owe any resulting federal capital gains tax.

That's the catch. When you are the one who winds up owning appreciated investment assets, you will ultimately owe the built-in tax liability that comes attached to those investments. The bigger the appreciation, the bigger the tax bill. So from a net-of-tax point of view, appreciated investments are worth less than an equal amount of cash or other assets that have not appreciated.

Key Point: You and your soon-to-be ex-spouse should use net-of-tax figures to arrive at an equitable property settlement. For instance, let's assume the objective in this example is to divide everything 60/40 in favor of your spouse. In arriving at the 60/40 split, the value of any appreciated investments held in taxable accounts should be reduced by the applicable built-in tax liabilities.

Beware Of Investments With Accrued Ordinary Income

According to the IRS, the tax-free transfer rule generally applies only to what might be termed "capital-gain assets." (IRS Revenue Ruling 87-12 and IRS Field Service Advice 200005006)

In contrast, when you transfer investments with accrued ordinary income (for example, taxable bonds between interest payment dates, stock shares after the ex-dividend date but before the dividend payment date, U.S. Savings Bonds with accrued interest, and the like), you are taxed on the accrued ordinary income as of the date of the divorce-related transfer.

Conclusion: Like any other major transaction, a divorce can have tax implications so it's important to consult with your tax adviser before making any related agreements.

(For information on dividing retirement plan assets in a divorce, click here to read our previous article.)

Contact John handschuh for Horsham Real Estate & Montgomery County Real Estate john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

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Spring Painting tips

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Mon, 18 Mar 2013 05:46:54 -0700

PRIMER ON PAINTS- NO PUN INTENDED! -AND- TWO SLIDE SHOWS...INSPIRATION!

Note: One of the best sites on the net for homeowners is House Logic, a project of the National Association of Realtors. It can be found at www.Houselogic.com

What's New!

A Primer on paint sheens..... Do you know an Eggshell from a Semi-Gloss? Get the basics HERE

What's the color of the year? Why you will be seeing a lot of this. Your guess ends HERE

Spice up your garage floor with what you learned about paints. HERE

An inspiring slide-show of what can be done in the kitchen to create a focal point using back-splashes. Get the 12 slides HERE

When it comes to decks, the ideas can be endless. HERE is a slide-show to prove it!

Contact John Handschuh for your Horsham Real Estate john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Free Electricity for a day !!!

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Sun, 10 Mar 2013 05:43:39 -0700

HOME TRENDS: FREE ELECTRICITY FOR A DAY? HOW DO THEY DO THAT?

Topic Summary: Electric utilities are advancing their programs to swap out old inefficient power meters with new, 2 way devices. With new metering capabilities homeowners will have powerful options in energy usage and management. The big buzz now trending is time-of-use, or dynamic electricity pricing.

Most homeowners today pay a one-size-fits-all price for electricity ( the kilowatt hour is the unit of measure) and have no incentive to alter their consumption in response to price fluctuations.

As the video (click image) will indicate, the cost to produce electricity moves around all day long so understanding TIME OF DAY usage is important.

Today, with new integrated systems, homeowners are getting a text message from their smart meter, telling them to hit #99 on their smartphone to turn on the dishwasher at just the right time.

The goal of smart meters is twofold. Two way meters can communicate with the utility and provide real-time demand data. Secondly, the process of smart metering will allow homeowners to manage when they use electricity and leverage special promotions that utilities will offer. Daytime electricity generation is the most expensive but if utilities can reduce daytime generation and move it to evening or late night there is a lot of money to be saved and eventual passed on to homeowners.

Some sort of smart meters have been around for 10 years and newer technology is fueling the trend. A few years back there were health and safety concerns but the industry seems to have worked out those problems. Privacy advocates also caution on "too much info" being sent to the power company. Currently there is an estimated 10 million homes that have some type of metering technology installed. Some states that are rolling out the programs are getting push back from homeowners (Article from Texas) who say they are being forced to use the new meters against their wishes. Please contact your local Public Utility Commission to convey any concerns.

What Will The Offers From My Utility Look Like?

Let's say you pay 7.9 cents for a Kilowatt (1000 watts of electricity). Utilities will offer you 20% savings if you use electricity after 8 pm or even more after 11 pm when generation costs the least. (Click on video above) Your smart meter will communicate just how much you use and when you use it. In many states that had energy deregulation, competing energy suppliers may entice new customers with "free electricity every Wednesday for two months". It won't be long before you see offers form banks and credit card companies offering similar deals to sign up for a new service.

With rapidly advancing technology in the home automation industry, fueled by WiFi networks, your smart phone will communicate with your smart meter and tell you the optimal time to turn on the dishwasher or do the wash!

Stay tuned, this is going to be fun. Visit your electric utility's website and that of your state public utility commission. Also, if you already have a smart meter, kindly provide some feedback in the box below. Thanks

contact John Handschuh for Horsham Real Estate john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Energy saving tips

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Wed, 27 Feb 2013 07:21:50 -0800

NEW SERIES STARTING: PRACTICAL PROGRAMS TO SAVE MONEY ON UTILITIES

Topic Summary: We are kicking off a 3 part series on discussing some of the biggest costs in managing our homes- Utilities. From heat, electricity on to water and telecommunications a large chunk of income goes to these necessary services.

Water Water Everywhere

The average family of four can use 400 gallons of water every day. The bathroom is the largest consumer of indoor water. The toilet alone can use 27 percent of household water. Almost every activity or daily routine that happens in the home uses a large quantity of water. So as a daily requirement, are there products and routines that can be looked at to help us reduce our water footprint? Yes!

One aspect of water usage that many homeowners forget is that he amount of water usage is directly tied to your sewer bill. In many parts of the country your charge for sewer services is correlated to how much water comes into the house, because it has to come out of the house! Lower water usage means lower sewer bills.

For the latest on tips, trends and issues in water management we turn to our friends at House Logic.com. Houselogic has some of the best resources on home-management topics.

So let's get started by clicking on each resource!

	Low Flow Shower Head Features and Savings
	How To Choose Low Flow Toilets
	Saving Water With A High-Efficiency Toilet
	When buying products look for this label... What Does It Represent?
	7 Ways To Save In The Laundry

Mark Your Calendars!	And We Are Not Making This Up! March 18-24th is National Fix A Leak Week- with resources to educated kids on water usage. Get the ideas

contact John Handschuh for Horsham Real Estate john@johnhandschuh.com

complements of home actions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Rental Upper Dublin Schools

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Mon, 25 Feb 2013 04:17:14 -0800

Single Family Home for sale in Abington, PA

Overview
Maps
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$1,550

Single Family Home

Main Features

3 Bedrooms
1 Bathroom
Interior: 1,247 sqft
Lot: 00 sqft

Location

2989 Sunnycrest Rd
Abington, PA 19090
USA

To get updates on open home dates and other property events, please click the "Like" button below:

John Handschuh

RE/MAX Action Realty
(215) 358-1100 X 1108
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Listed by: RE/MAX Action Realty

Our recent listings

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Nearby properties for sale

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

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Insurance Tips

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Sun, 24 Feb 2013 06:28:57 -0800

IF THE SKY FALLS: ARE YOU COVERED IF YOU GET HIT BY A METEOR?

Topic Summary: When you think about it, are you covered from damage from a meteor hitting your home? Homeowner's Insurance rates are going up about 15-20% at renewal time due to natural disasters and other factors. There are some steps you can take to mitigate this increase but what follows are some resources to help you get well protected.

First, about the meteor.
From our friends at the Insurance Information Institute:

While the likelihood of actually getting struck by a satellite, a meteor or an asteroid is extremely rare, the good news is that if one of these falling objects does hit you, your home or your car, you would be you are financially protected by insurance.

If a satellite, meteor or asteroid falls on your car, coverage is provided under the optional comprehensive portion of an auto insurance policy.

In the tragic event that space debris were to strike a person, his or her injuries would be covered under health insurance and, in the event of a death, existing life insurance policies would kick in.

Disasters Adding To The Pressure On Rates

Homeowner's Insurance premium rates are increasing this year 15%-20%% or on average $128 more than in 2012. The biggest reason is a "given" in the insurance industry: disasters from last year impact this year's premiums. Last year, Superstorm sandy cost nearly $100 billion in damage and associated costs.

When talking about weather-related disasters, 2011 was a record year. A dozen disasters each caused damage costing at least $1 billion. And that was just in the US. Because our domestic insurance companies carry insurance themselves for extraordinary events ( called re insurance) Their insurance costs go up because of events all over the world. So the tsunami and earthquake in Japan literally cost you money in the end.

What To Do, What Not To Do

Around the home there are home and lifestyle situations that can cause your individual rates to go up. At the same time you may not be covered for some claims should there be an accident.

In this slide show here from MSN, you can see 12 areas that can cause rates to go up and events not to be insured.

As home values dropped in most parts of the country, consumer groups are warning homeowners not to insure on the value of your home but on the replacement value of the home. The two are very different.

Home values go up and down all the time but what never goes down is the price to build a new home comparable to the one you have now. That is what is called replacement value. The cost of raw materials and labor continue to escalate so we caution you to ask your insurance carrier about the best way to insure to replacement value.

Do-It-Yourself! New online service: Accucoverage.com. This website can provide you with your home replacement value based on the same local conditions, costs and criteria an insurance company would use. The service asks you a few questions and derives a value estimate with your zip code based cost structure. The fee for the service is $7.95.

DID YOU KNOW #1

A growing number of policies do not cover sewer backup. For about $60 per year you can add about $15,000 worth of coverage should there be damage from a backup or sump pump failure.

DID YOU KNOW #2

If you are thinking of buying a existing home, you could be in for a increased homeowners premium because of the claims history of the home. You can see the insurance claim history in a report you can buy from ChoiceTrust. Be sure to ask the home seller for a report of the home's Comprehensive Loss Underwriting Exchange report, or CLUE report, which lists the historical claims made on the home. You can look up your home's CLUE report at http://www.choicetrust.com.

Update Based On Events:

Factoid: An insurance industry report recently said that 32 million households in the U.S. own insurance policies that aren't right for them. In fact, in 2008, 58% of homes were undervalued in their policies by an average of 21%. Imagine if your home was destroyed by a fire and coverage fell 20% short.

"To make the most of your insurance dollars, it is very important that you let your insurance agent know about alterations to your home and other major events in your life," said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the Insurance Information Institute. (The III is a content partner with HomeActions)

Read on if any of these events occurred recently.
1. Have you gotten married or divorced?
2. Have you had a baby?
3. Did your teenager get a drivers license?
4. Have you switched jobs/lost Income?
5. Have you done extensive renovations on your home?
6. Have you decided to buy a retirement or vacation home?
7. Have you acquired any new valuables such as jewelry, fine art, antiques?
8. Have you signed a lease on a house or apartment (kids?)
9. Have you joined a carpool?
10. Have you retired?

1. Have you gotten married or divorced?
If you have gotten married, you may qualify for a discount on your auto insurance. Couples may well bring two cars into the relationship and two insurance companies, so take the opportunity to review your existing coverage and see which company offers the best combination of price and service.

If you are merging two households, you may need to update your homeowners insurance. And you may want to consider increasing your insurance for any new valuables received as wedding gifts, and for jewelry such as wedding and engagement rings.

After getting married, it is also important to review your life insurance needs. If one spouse is not working, he or she might be dependent on the working spouse's income; if so, reviewing life and disability insurance coverage is prudent. And even if both spouses are working, couples often make financial commitments based on both incomes so the loss of one spouse's income due to death or disability could be devastating without adequate insurance.

If you got divorced, you will probably no longer be sharing a car and may move to a smaller home. If this is the case, you should inform your insurer as you will need to set up separate auto and homeowners policies.

2. Have you had a baby?
If you have recently added a child to your family, whether by birth or adoption, it is important to review your life insurance and disability income protection. According to a MetLife study of survivors (i.e., spouses and children) of someone who died "prematurely," 39 percent had no life insurance at all. Of these families, 40 percent had children under age 18. Therefore, in about 16 percent of all cases survivors of prematurely deceased persons were families with young children of who had no life insurance.

If you are planning for your life insurance to match your survivors' expenses after your death, the new child will likely add to those expenses, requiring more life insurance to keep your family secure. If you plan to save for your child's college education, life insurance can assure completion of that plan. And if you keep your current life insurance policy, don't forget to update the beneficiary designations to include the new child.

3. Did your teenager get a drivers license?
It is generally cheaper to add your teenagers to your auto insurance policy than for them to purchase their own. If they are going to be driving their own car, consider insuring it with your company so you can get a multi-car discount. And choose the car carefully-the type of car a young person drives can dramatically affect the price of insurance. You and your teens should choose a car that is easy to drive and would offer protection in the event of a crash.

Also, encourage your kids to get good grades and to take a driver training course. Most companies will give discounts for getting at least a "B" average in school and for taking recognized driving courses.

If your teenagers move at least 100 miles from home-for example, to go to college-you can get a discount for the time they are not around to drive the car (assuming that they leave the car at home).

4. Have you switched jobs or experienced a significant change in your income?
If you had life and disability insurance through your former employer, and your new employer does not provide equivalent protection, you can replace the "lost" coverage with individual policies.

In the case of an income increase, you may have taken on additional financial commitments that your survivors will depend on. Make sure to review your life and disability insurance to ensure it is adequate to maintain those commitments.

If your income decreased, you may want to cut your household expenses, including your life insurance premiums. Fortunately, term life insurance rates have been dropping, so if you bought your life insurance more than five years ago, shop around-you might be able to pay less for the same protection. If you have two or more policies you might be able to replace both with a single policy at a lower rate because you may reach a "milestone" amount of insurance. (For example, at many companies, $500,000 of insurance costs less than $450,000 because of the milestone discount.) But don't drop existing life insurance until after you have a new policy in place.

5. Have you done extensive renovations on your home?
If you have made major improvements to your home, such as adding a new room, enclosing a porch or expanding a kitchen or bathroom, you risk being underinsured if you don't report the changes to your insurance company.

And don't overlook new structures outside of your home. If you have built a gazebo, a new shed for your tools or have installed a pool or hot tub, you should speak to your agent.

If, as part of a renovation, you purchase furniture, exercise equipment or electronics, you may need to increase the amount of insurance you have on your personal possessions.

6. Have you decided to buy a retirement or vacation home?
If you are searching for your dream vacation home or a second home you might retire to, make sure you research the availability and cost of homeowners insurance before you commit to the purchase. Often, the very factors that make a vacation home seem ideal, whether it is a waterfront property or a mountain retreat, can introduce risks that, together with the fact the home is likely to be vacant much of the time, can make it costly and difficult to insure.

In the event you have already bought a vacation home, don't skimp on the insurance. The risk of theft or disaster is just as significant, if not more so, in a second home as in your primary residence.

If your new property is close to the water, be sure to ask about flood insurance. Damage to your home or belongings resulting from flood is not covered under standard homeowners insurance policies. Flood insurance is available from the National Flood Insurance Program (NFIP), as well as some private insurers, and is generally sold through private agents and brokers. You can ask your agent or representative whether your home is at risk for flood, or enter your address on the NFIP Web site to find out whether your home is in a flood zone. If you have a very valuable home, some homeowners insurers offer excess flood coverage over and above that provided by the NFIP policies.

7. Have you acquired any new valuables such as jewelry, electronic equipment, fine art, antiques?
A standard homeowners policy offers only limited coverage for highly valuable items. If you have made purchases or received gifts that exceed these limits, you should consider supplementing your policy with a "floater," a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss. Before purchasing a floater, the items covered must be professionally appraised. Keep receipts and add the new items to your home inventory.

8. Have you signed a lease on a house or apartment?
If you are renting a home, your landlord is responsible for insuring the structure of the building, but not for insuring your possessions-that is up to you. Nevertheless, nearly seven in 10 renters say they do not have renters insurance, despite the fact that, according to the U. S. Bureau of Justice Statistics, rented households are burglarized at rates about 50 percent higher than owned households. If you want to be covered against losses from theft and catastrophes such as fire, lightning and windstorm damage, you should invest in renters insurance. Like homeowners insurance, renters insurance includes liability, which covers your responsibility to other people injured at your home, or elsewhere, by you and pays legal defense costs if you are taken to court.

Regardless of whether you are an owner or renter, you will have the following options when it comes to insuring your possessions:

* Actual cash value pays to replace your home or possessions minus a deduction for depreciation.
* Replacement cost pays the cost of rebuilding or repairing your home or replacing your possessions without a deduction for depreciation.

Think carefully about what your financial position would be in the aftermath of a disaster, and make sure you have the type of policy that is right for you.

9. Have you joined a carpool?
If you are a frequent carpool driver, whether it is to work, or ferrying kids to school and other activities, your liability insurance should reflect the increased risk of additional passengers in the automobile. Check with your agent or representative to make sure your coverage is adequate.

10. Have you retired?
If you commuted regularly to your job, then in retirement your mileage has likely plummeted. If so, you should report it to your auto insurer as it could significantly lower the cost of your premiums. Furthermore, drivers over the age of 50-55 may get a discount, depending on the insurance company.

As part of your annual review, it is always a good idea to talk with your insurance agent or company representative.

The I.I.I. is a nonprofit, communications organization supported by the insurance industry.

contact John Handschuh for Horsham Real Estate john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Tax Time Is Right Around The Corner

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Sat, 23 Feb 2013 12:22:00 -0800

TAX TIME TIPS- NEXT IN THE SERIES.

Topic Summary: No matter what stage you are at, finished or in process, these tips can help you meet your responsibilities for state and federal tax purposes.

1) I already filed but where is my refund? The IRS makes it very easy HERE to see where your refund is.

2) "I know I am going to be in trouble and I just don't have the money". The IRS is getting very friendly if you come to them first with a problem. They may set up an installment agreement so you can pay over time. Also you may think about an Offer In Compromise. The Details are HERE.

3) I was in a area that was declared a disaster. What's the latest? For taxpayers that were impacted by natural disasters there is an updated resource page HERE that will help you with answers.

4) I just need more time! There are a few ways to get you an extension of time to file if you start HERE.

Just going through the shoe box of receipts? We are not tax experts but the tips on these pages can get you off to a good start and save you some money when you do finish!

Getting Help, in person or with software, A review from Forbes Mag. HERE

The AARP offers 10 tips for those over 50. HERE

TurboTax has the 10 most overlooked deductions. HERE

Kiplingers has even more often missed deductions(slideshow). HERE

contact John Handschuh for Horsham Real Estate john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Tax Scams Be Alert

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Fri, 22 Feb 2013 03:23:03 -0800

CONSUMER WATCH TAX-TIME SCAMS ARE IN FULL SWING

Topic Summary: This time of year brings out many tax--scam artists who prey on low-income consumers and unknowing seniors. Here are few tips that can hopefully keep you aware of the scams.

The "IRS" sends you an email. The IRS doesn't send unsolicited email to taxpayers.
The IRS calls you and offers filing help over the phone... "if you will just get your social security number we can start now". The IRS would never call in a situation where you do not have ongoing communications with them.
You get a text message or note on your social networking site from the "IRS." They will never contact you this way.
You see an offer from an unfamiliar for-profit tax service selling refund and credit schemes.
You get internet offers for tax help directing you to call toll-free numbers... and they ask for your Social Security number.
There is an offer of free money from the "IRS" (or Social Security) with no documentation required.
You see a promise of refunds for "Low Income - No Documents Tax Returns."
You're offered a way to make a claim for the expired Economic Recovery Credit Program or for economic stimulus payments.
You get an offer for free tax preparation for a split of the refund.
You get offers for help on your taxes from firms outside your immediate area.

Like most scams, sometimes the caller says your bank account information is needed to send you a direct deposit for the expected tax refund. Instead of sending you a cash refund, they will drain your account.

Another version: An e-mail states you have a tax refund owed to you and they'll deposit it directly to your Visa or MasterCard. All you have to do is fill out an attached form. Don't do that either.

Common Sense: Why would a website, e-mailer or phone caller whom you never heard of, want to help you!

contact John Handschuh for your Horsham Real Estate Needs john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Q AND A - LIVING IN SOME SORT OF COMMUNITY?

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Sun, 17 Feb 2013 04:37:56 -0800

These Q and A's are managed by Richard Thompson from www.regensis.net. Richard has been involved for many years with various aspects of community living. He provides consulting services to community groups and industry vendors. He also takes questions from online consumers with HOA issues.

For answers to your own questions and more innovative homeowner association management strategies, see Regenesis.net.

Question: Recently, I received a proxy attached to a meeting notice to vote on a governing document amendment. The notice stated that if the proxy was not returned, the board would vote on my behalf. Can the board do that?

Answer: The board cannot take or use someone's voting right just because they don't respond to a proxy request. A proxy should be provided to every member well in advance of the meeting (whatever the governing documents require) to be completed, signed and returned. A member may designate whoever they choose (a neighbor, a family member...anybody) to represent them at the meeting. That person, of course, must be able to attend the meeting.

If the proxies aren't returned within several days of the meeting, the board needs to round them up by making calls, going door to door to pick them up or whatever it takes. At the meeting, if the required quorum is not represented by the proper number of members and their proxies, a legal meeting cannot be held.

This is how the proxy process works. Don't let the board ramrod any proposal through, especially a bylaw change, without proper member representation.

Question: Some of our members want to control the number or percentage of units which may be rented. Their concern is that having a relatively large number of rental units will change the character of the condominium and reduce property values. Can the HOA enact a rule or by-law restricting rentals?

Answer: The HOA can enact rental restrictions but it should be carefully thought through. The ability to rent one's property is considered a basic right. And it's not just investors that rent their property. Someone that has lost their job, a down real estate market and military deployment are all valid reasons for needing to rent. Any rental restriction policy should provide for exceptions like these.

Having a large percentage of rentals (percentage varies) can affect lender financing options and reduce resident owner appeal. Avoid having a policy that allows some to rent and others not. If a restriction against rentals is desirable, it should apply to one and all. To do otherwise grants a privilege to some not enjoyed by all and inevitable conflict will ensue. To achieve uniformity, allow, say, up to a one year grace period for those currently renting out their property to comply.

Finally, the board should not enact a rental restriction policy on its own. It should be done by an amendment of the governing documents approved by a appropriate majority of members. Once amended, the governing documents should be recorded to put all potential purchasers on notice of the restriction. (There are several sample Rental Restriction policies in the Policy Samples section of www.Regenesis.net available to Gold Subscribers.)

Question: Our governing documents date back to the 70s. How do we go about updating them and do we need to? Also, several of our rules and regulations clearly contradict the bylaws. What do you advise?

Answer: The board does not have the authority to amend bylaws. Bylaw amendments may be proposed by the board (or any member, for that matter) but must be approved by the members by written ballot. This is usually done at the Annual Meeting unless there is a particular urgency to the amendment. The Board has the authority to enact rules and regulations that are in keeping with the bylaws. Any that currently contradict should either be eliminated or the bylaws amended to make them legal.

Question: The board recently decided that each owner should maintain the fence that adjoins the property even though the fences belong to the HOA. They say it's to save the homeowner association money. Is this true?

Answer: If the fences are common elements, the board cannot unilaterally reassign maintenance responsibility to the owners. To do this, an amendment to the governing documents must be approved by the owners. But even if it could be done, this is ill advised. One of the advantages of an HOA is reducing the cost of maintenance by joining together and making sure the maintenance gets done properly and in a timely manner. Requiring individual owners to be responsible is more expensive and bound to fail due to inadequate or improper maintenance.

Question: Our HOA has a strict policy in order to preserve the streetscape and prevent clear-cutting. The board gets requests, from time to time, from members asking permission to cut trees. We will inspect and sometimes approve the cutting if there is disease or damage. If not, the requests are denied.

We now have a resident who is requesting to cut two tall pine trees that are close to his house due to the potential of those trees falling. He is stating that the HOA will be liable if the trees fall. Is the HOA exempt from such liability if the governing documents state that significant trees cannot be cut?

Answer: Besides the falling tree issue is the potential fire hazard. Trees should be located at least 30 feet from the structure; especially highly flammable trees like the pine tree. There is also the issue of tree limbs damaging the roof and the trees causing foundation damage when they sway in the wind.

But to address a specific request, it would be prudent to get a licensed arborist to review the trees in question. If the arborist believes they are a danger, they should be removed. The board is not responsible for acts of God, only for handling business in a prudent manner

Question: We are trying to determine how to handle an insurance claim caused by an overflowing toilet flood. Is this a case of negligence and, if so, should the unit owner of the toilet in question pay for the damage?

Answer: "Negligence" in insurance terms means the occupant somehow caused the problem, like leaving the bathtub running, as opposed to a spontaneous pipe break. If there is negligence, the unit insurance may pay for damage to the common area or other affected units.

However, normally each unit owner is responsible to repair his own unit's damage. The HOA's insurance is typically broad and will often pay for this kind of claim; however, the board should set limits on which claims the HOA will pay because if the HOA files too many claims, it may get its insurance cancelled or premium increased substantially.

For more innovative homeowner association management strategies, subscribe towww.Regenesis.net.

Contact John Handschuh for Horsham Real Estate john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

WHEN YOUR STOCK IS WORTH . . . NOTHING

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Wed, 13 Feb 2013 04:48:35 -0800

Take a Loss
While Shares are Still Listed

When you own stock in what's now a bankrupt company, one thing is for sure: It was a lousy investment. Unfortunately, that doesn't automatically mean you can write off the cost of your shares for tax purposes. Here are the basic rules.

No Theft Loss
for Insider Trading Victims

    If you claimed a tax loss for a decline in stock value resulting from accounting fraud or misconduct by corporate insiders, there could be more bad news: The IRS says you cannot claim a theft loss for stock that you purchased on the open market. Adding insult to injury, some taxpayers may be slapped with accuracy-related penalties for deducting such losses. (IRS Notice 2004-27)
    Background: The tax law allows you to deduct losses from thefts and casualties, such as natural disasters, to the extent the losses are not compensated by insurance or other means. These losses are deductible on your personal return, subject to limits. However, it is well-established that you cannot deduct a loss occurring solely because of a decline in the stock market or a similar cause.
    Due to a rash of highly-publicized "insider trading" violations and other acts of misconduct in the past few years, many taxpayers who own stock in these companies sought some solace by deducting a resulting decline in stock value on their personal tax returns. The IRS notes that the courts have consistently denied theft losses relating from corporate misconduct when the stock was purchased on the open market and not from officers who may have made representations. As result, it has officially declared that these losses are not deductible.
    Silver tax lining: You can still deduct a worthless stock or a capital loss attributable to a decline when you sell the stock, as described in this article.

You can claim a capital loss deduction when you sell shares for less than you paid for them. However, your write-off is limited to the amount of your capital gains for the year (if any) plus $3,000 ($1,500 if you use married filing separate status). Any excess loss carries over to the next year, subject to the same $3,000 (or $1,500) limitation.

Under the tax law, you can also claim a capital loss deduction when your shares become wholly worthless. The same dollar limitations apply in this case. However, you get no deduction for "partial worthlessness."

Bottom line: To claim a tax write-off, you must either:

Sell the shares for whatever they can fetch and claim the resulting capital loss right now.

Wait until the shares become completely worthless and claim your capital loss at that time.

Beware: Relying on the worthless stock deduction rule can be a tricky business. Shares of "delisted" bankrupt companies often continue to trade for a few cents (or even fractions of a cent) via the so-called Pink Sheets system. As long as the shares are still being traded, the IRS can say you are not entitled to a worthless stock deduction.

The tax-smart strategy is generally to simply sell your shares while they are still listed on the NYSE, NASDAQ, or American Stock Exchange, claim your rightful tax loss, and move on. Don't wait until your shares are "delisted." At that point, it may be difficult to get any tax benefit from them.

Contact John Handschuh foir your Horsham Real Estate needs john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Check Your Elected Officials

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Tue, 12 Feb 2013 02:14:14 -0800

YOU SENT THEM TO CONGRESS - NOW YOU CAN TRACK WHAT THEY ARE DOING!

Topic Summary: The power of the internet allows us track a lot of useless information. Now we can harness some of thatpower to track everything our elected officials say or do. In a few seconds you can set up TRACKERS to monitor what they say, and how they vote in issues important to you. From their latest YouTube video, (they all have their own channel) to how they work on legislation, you can now follow the activity of your elected officials in Congress.

The service is from GovTrack.us - a Washington, D.C. based watchdog organization. Depending on how you set up alerts, you can request email updates on the member's desired activities.

Here is how to do it.

Click on http://www.govtrack.us/

Up on top right click TRACK :

Then in the form that looks like this... type your desired legislation key word for example "immigration" or your Representative's name, for example "CASEY"

Then set your desired alert schedule, give the service your email address ( set up an account- takes 10 seconds) and start tracking your Congressperson!

Now you can see what they are doing, or not doing!

contact John Handschuh for your Horsham Real Estate needs john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

AGE 50 OR OLDER? CONSIDER EXTRA RETIREMENT CONTRIBUTIONS

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Mon, 11 Feb 2013 05:07:37 -0800

It Pays To Play Catch-Up

Here's an important reminder for those who want to max out before-tax contributions to employer-sponsored

2012	Contribution Limits
Traditional and Roth IRAs	$5,000 (in 2011)
401(k), SARSEP, 403(b) Plan Deferrals & 457 Plan deferrals	$17,000 (up from $16,500 in 2011)
SIMPLE deferrals	$11,500 (unchanged from 2011)

salary retirement plans, which include 401(k), 403(b), 457 and SIMPLE plans, as well as traditional and Roth IRAs. If you are age 50 or older at the end of this year, you are generally eligible to make "catch-up" contributions for the current tax year.

You also have until the due date of last year's tax return (April 15 or, if it falls on a weekend, the next business day) to make IRA catch-up contributions for that year. In other words, you can make contributions for the 2012 tax year right up to April 15, 2013. These contributions are above and beyond the regular contribution limits listed in the right-hand box that apply to salary reduction plans and IRAs.

Why should you make catch-up contributions? Because studies show that many Americans have not been saving enough for retirement. This shortfall becomes more critical as retirement age approaches. Extra contributions are intended as a tax incentive to spur people to make up the difference while they can.

Here is a table of the catch-up contributions currently scheduled:

Tax Year	401(k), 403(b) and 457 plans *	Traditional and Roth IRAs**	SIMPLE deferrals
2012	$5,500 (unchanged from 2011)	$1,000 (unchanged from 2011)	$2,500 (unchanged from 2011)

* Note: Depending on your salary level and terms of your employer's plan, your personal maximum contributions may be less.

** If you are married, and both you and your spouse are age 50 or older, you can each generally contribute the listed amounts to your separate IRAs.

How Much of a Difference Can Catch-Up Contributions Really Make?

Good question. To find the answer, let's assume that you turned 50 in 2005 (when the limits for employer-sponsored salary reduction 401(k), 403(b), or 457 plans were $14,000 and $4,000 for catch-up contributions) and take full advantage of the maximum contributions allowed for 2005 and the following 15 years. The analysis below shows how much extra you could accumulate by age 65.

At 5% Return	At 7% Return	At 9% Return
$116,624	$137,454	$162,686

Note: These are before-tax numbers

The next analysis shows how much extra you could accumulate in your IRA by age 65, assuming you turned 50 in 2005 and make maximum catch-up contributions starting with the 2005 tax year (when the limits were $4,000 plus $500 catch-up) and continuing for the following 15 years.

At 5% Return	At 7% Return	At 9% Return
$21,729	$25,406	$29,825

Again, these are before-tax numbers

The final analysis shows how much extra you could accumulate by making salary deferral catch-up contributions plus IRA catch-up contributions, assuming you turned 50 in 2005 and make maximum catch-up contributions starting with the 2005 tax year and continuing for the subsequent 15 years.

At 5% Return	At 7% Return	At 9% Return
$138,353	$162,860	$192,511

Once again, these are before-tax numbers

Anyway you look at it, that's a lot of extra money. If you are married, your spouse can make catch-up contributions (if eligible), and double these amounts.

contact John Handschuh For your Horsham Real Estate needs john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Remodeling in Horsham check these values

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Sun, 10 Feb 2013 04:58:43 -0800

This month sees more remodeling projects getting hatched than at any other time of the year. Like any investment, due diligence is required to make sure your expected outcome meets your requirements. When it comes to major or minor remodeling projects most homeowners think they will break even at selling time. Many wrongly feel that adding the in-ground pool will make the home more marketable.

There is a huge amount of data to consume and the fastest way to get at your local data is by clicking on your closest covered city in the pull down window on:

Here is the Widget ( large)

another way of getting it....

http://www.remodeling.hw.net/2013/costvsvalue/national.aspx

Contact John Handschuh for Horsham Real Estate john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

TRENDING IN HOMEOWNERSHIP- TWO STUDIES WE FOUND INTERESTING

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Mon, 04 Feb 2013 10:35:17 -0800

Topic Summary: We are always looking at trends in home-ownership and saw two that, while technical, have some easy to understand findings.

First up, for years many homeowners though that investing in "green" technologies when improving their homes would never pay off at selling time. Well, there is new evidence out. Second, economists that track how mobile homeowners are, claimed in the early 80's that the average household moves every 7 years. In 2009 the data indicated every 12 years. There is a new study out that updates this estimate. Read on!

Does investing in "green" pay off at sale time?

In a recent study, two researchers wanted to know if there was an increase in home sale price for homes that had a "green" designation or certification. Long-held views were that green improvements would lower energy bills but had no measurable impact on home sale prices. This study, while using California data, is the first ever to do such an exhaustive study over many home sale transactions. All the data is here and the findings can be generally applied across the country. (The NAHB has a website dedicated to the Green Certification Program)

In summary:

Putting Down Roots:
But For How Long?

A study just released by the National Association of Home Builders provides a long- run calculation that averages how likely a household will leave the existing home they are in. The study, in cooperation with the Census Bureau, came up with a new estimate of 13 years. For first-time buyers, the expected length of stay in a single- family home is somewhat shorter (about 11 and a half years). If you are into "the Numbers" the study can be found HERE

Contact John Handschuh for Your HORSHAM REAL ESTATE requirements john@johnhandschuh.com

complements of homeactions.net

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

Horsham Township Statistics

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Tue, 29 Jan 2013 05:06:04 -0800

Community InformationCompare Places

Get information for any place in the USA

OverviewPeopleHousingEducationVotingTransportationClimate

Statistic	Horsham, PA remove	United States
Population	14,842	308,035,306
Population Change -2000	-1.66%	8.07%
Home Appreciation	-0.66%	1.62%
Single	48.27%	52.98%
Married	51.73%	47.02%
Male	48.23%	49.27%
Female	51.77%	50.96%
Air Quality 100 = Best	31.1	82.8
Water Quality 100 = Best	2	55
Unemployment Rate	6.40%	8.60%
Future Job Growth	32.28%	32.10%
Household Income	$71,495	$50,935
Median Home Cost	$224,200	$153,800
Homeowner %	68.44%	57.69%
Million $ Homes	0.60%	1.64%
Sunny Days	202	205
Avg. July High Temp.	88	86.5
Avg. January Low Temp.	20.7	20.5
Avg. Commute (minutes)	28.9	28.1
% Car Pool	8.58%	10.67%
Cost of Living Index	122.4	100
Democrat	59.990%	52.870%
Republican	39.190%	45.620%

Statistic	Horsham, PA remove	United States
Population	14,842	308,035,306
Pop. Density	2,713	87
Pop. Change	-1.66%	8.07%
Median Age	40.4	37.3
Households	5,868	116,716,292
Household Size	2.51	2.58
Male Population	48.23%	49.27%
Female Population	51.77%	50.96%
Married Population	51.73%	47.02%
Single Population	48.27%	52.98%

The 2012 Horsham, PA, population is 14,842. There are 2,713 people per square mile (population density).

Family in Horsham, PA

The median age is 40.4. The US median is 37.3. 51.73% of people in Horsham, PA, are married. 8.88% are divorced.

The average household size is 2.51 people. 33.83% of people are married, with children. 10.83% have children, but are single.

Race in Horsham, PA

86.49% of people are white, 4.68% are black, 5.84% are asian, 0.17% are native american, and 2.82% claim 'Other'.

98.22% of the people in Horsham, PA, claim hispanic ethnicity (meaning 1.78% are non-hispanic).

Statistic	Horsham, PA remove	United States
Median Home Age	39.7	35.1
Median Home Cost	$224,200	$153,800
Home Appreciation	-0.66%	1.62%
Homes Owned	68.44%	57.69%
Housing Vacant	4.72%	11.38%
Homes Rented	26.84%	30.93%
Property Tax Rate	$16.80	$11.20
OWNER-OCCUPIED BY VALUE
Less Than $20,000	0.55%	2.72%
$20,000 to $39,999	0.65%	4.03%
$40,000 to $59,999	0.00%	5.58%
$60,000 to $79,999	0.00%	7.09%
$80,000 to $99,999	0.12%	8.80%
$100,000 to $149,999	4.24%	21.26%
$150,000 to $199,999	13.90%	14.87%
$200,000 to $299,999	49.48%	16.82%
$300,000 to $399,999	19.63%	7.83%
$400,000 to $499,999	7.66%	4.04%
$500,000 to $749,999	2.79%	4.05%
$750,000 to $999,999	0.39%	1.26%
$1,000,000 or more	0.60%	1.64%
BY YEAR STRUCTURE BUILT
1999 to 2005	2.87%	13.71%
1995 to 1998	6.71%	14.31%
1990 to 1994	6.71%	14.31%
1980 to 1989	25.85%	13.87%
1970 to 1979	14.52%	16.17%
1960 to 1969	21.57%	11.70%
1950 to 1959	17.58%	11.08%
1940 to 1949	6.73%	6.02%
1939 or Earlier	4.17%	13.15%

Statistic	Horsham, PA remove	United States
School Expend.	$7,653	$5,691
Pupil/Teacher Ratio	14.5	15.3
Students per Librarian	684	803
Students per Counselor	342	513
2 yr College Grad.	6.39%	6.48%
4 yr College Grad.	21.73%	16.02%
Graduate Degrees	10.84%	8.97%
High School Grads.	91.19%	80.82%

Click on a State on the map below, to see a list of communities and their schools.

Statistic	Horsham, PA remove	United States
Democrat	59.990%	52.870%
Republican	39.190%	45.620%
Independent Other	0.822%	1.510%

Statistic	Horsham, PA remove	United States
Commute Time	28.9	28.1
COMMUTE MODE
Auto (alone)	83.14%	75.83%
Carpool	8.58%	10.67%
Mass Transit	2.49%	4.78%
Work at Home	2.48%	4.07%
COMMUTE TIME TO WORK
Commute Less Than 15 min.	31.90%	28.58%
Commute 15 to 29 min.	32.60%	36.13%
Commute 30 to 44 min.	17.43%	19.69%
Commute 45 to 59 min.	8.80%	7.50%
Commute greater than 60 min.	9.28%	8.10%

Statistic	Horsham, PA remove	United States
Rainfall (in.)	48.6	36.5
Snowfall (in.)	22.7	25
Precipitation Days	94	100
Sunny Days	202	205
Avg. July High	88	86.5
Avg. Jan. Low	20.7	20.5
Comfort Index (higher=better)	44	44
UV Index	4.1	4.3
Elevation ft.	293	1,443

Contact John Handschuh for your Horsham Real Estate requirements john@johnhandschuh.com

complements of homeactions

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

Click on the link below and subscribe to my free e-newsletter. Tons of great information

http://hstrial-homeactions.intuitwebsites.com/johnhand.html

HOME IMPROVEMENT TAX SAVER

John Handschuh Realtor ABR SRES Horsham Real Estate (RE/MAX Action Realty) — Mon, 28 Jan 2013 08:44:58 -0800

Cut Tax Bill
by Increasing
Your "Basis"

With any luck, you might be able to walk away from the sale of your principal residence without paying any capital gains tax. The current law allows qualified married couples filing jointly to pull down a tax-free profit of up to $500,000 ($250,000 for single filers).

Tax Break

for Home with a View
You can add the cost of home improvements to the basis to reduce your taxable gain when you sell a home. But can you increase your basis when you make related improvements on "common" property? That was the issue raised in an IRS private letter ruling
A taxpayer bought a residence on a bluff of land overlooking a river. When he found out the bluff was eroding and the home was at risk, he obtained permits from local authorities to build a bulkhead and shore up the property. The actual improvements were made on common land that the taxpayer didn't own. Later, the taxpayer sold the home at a sizeable gain.
The IRS determined that the construction project improved the home by stabilizing the shoreline and protecting the structure from future damage. Therefore, the improvements were capital in nature and can be added to the home's basis. (IRS PLR 200229014)

But you could still owe tax on a home sale. That's because your "gain" for tax purposes is the difference between the sale price (less certain selling expenses) and your "basis" in the home.

If your gain exceeds the home sale exemption limit, or if you owe capital gains tax due to the business use of your home, you could wind up with a tax bill.

Tip: Scour your records and files for home improvements and other outlays that can be used to increase your basis. It doesn't matter if the costs were incurred years ago. The more you can add to your basis, the less your taxable gain.

The list of home improvements includes new additions, installation of central air conditioning, fencing, decks, heating or plumbing systems and landscaping. But the cost of repairs, such as repainting the house or fixing roof shingles, can't be added to the basis.

"Selling expenses" can also be subtracted. These include attorney's fees, title search and insurance, broker's commissions, survey and appraisal fees, and fees for recording deeds and mortgages.

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Horsham Real Estate contact John Handschuh john@johnhandschuh.com

HORSHAM REAL ESTATE

John Handschuh Accredited buyers representative, Seniors Real Estate Specialists®

RE/MAX Action Realty Maple Glen, Pa. 19002 office 215-358-1100 direct 215-358-1108

visit www.johnhandschuh.com for current listings and additional information

john@johnhandschuh.com email questions, requests for information

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