Recently Moved? Check your former gas and electric accounts for overpayment. Once the meter is read and the final bill is processed, there is occasionally a refund due.

How do you get a refund? If you have your account set up to manage online, simply log in to your old account and check the balance. If you have not set up the account to manage online you still can. Go to the website of your former utility company and look for the link for new users. Make sure to have a statement that shows your former account number. You will need it to register and log in. Keep in mind that account numbers change when you disconnect service. Even if you have the same company at your new home your account number will most likely be different and a credit will not transfer. If you determine that you are due an amount call or email the company's customer service department to request a refund.

Company Contacts:
CenterPoint Energy: www.centerpointenergy.com/about/contact
Xcel Energy: www.xcelenergy.com

Investors, high-income owners prepare for 2013 fallout

By Bernice Ross, Monday, August 9, 2010.

Inman News

Flickr photo courtesy of SarahMcD ॐ.

The phasing out of the Bush administration's tax cuts, changes in reporting of 1099 income, and tax increases related to the health care bill are just around the corner. Will these have a negative effect on the fledgling real estate recovery?

Regardless of where you stand politically, there are big changes coming that can have a significant impact on the real estate industry. The biggest challenge is that thousands of pages of legislation have been signed into law, but the rules and regulations that determine how the law is administered are still being written. As a result, it's very hard for anyone to know exactly what to expect until the rules and regulations are published.

For example, the health care bill changes how "miscellaneous income" is reported. The original bill seems to require anyone who purchases $600 or more of business products to issue a Form 1099-MISC to the company from whom they purchased the product. In other words, if I buy $600 of office supplies at Staples, I have to give Staples a Form 1099.

Recently, four Democratic senators asked the Internal Revenue Service to not enforce that provision. This creates an interesting quandary: Do businesses want to run the risk of not complying?

The health care bill increases the Medicare tax. Now you may be wondering what this has to do with real estate. That provision, at least as written in the law currently, will force certain owners of real property to pay an extra 3.8 percent in taxes when they close a real estate transaction.

Currently, there appears to be quite a bit of misinformation regarding the provisions of this bill and how it will influence real estate sales. Part of this is due to e-mails circulating on the Web proclaiming, "Did you know that all real estate transactions are subject to a 3.8 percent sales tax? On a $400,000 home that would be an extra $15,200."

This statement is simply wrong. First, not all real estate sales are subject to this tax. Second, you cannot predict someone's tax liability without looking at their total income and deductions.

When does the new Medicare tax apply?
The new Medicare tax will hit a limited number of homeowners when it goes into effect in 2013. The tax applies only to single individuals who make more than $200,000 per year and married individuals filing jointly who earn more than $250,000. Clearly, only a small percentage of homeowners exceed these thresholds.

Even for these high-income individuals, however, the tax doesn't kick in on the homeowner's primary residence until the owner's profit exceeds $250,000 if single and $500,000 if married. In other words, people can continue to pull out $250,000 of tax-free profits from their primary residence if they are single and $500,000 if they are married. Any amount exceeding these limits will be subject to the capital gains provisions as well as the 3.8 percent health care tax.

The fly in the ointment
Only single-family, primary residences are exempt from this rule, provided the owners do not exceed the income guidelines and do not exceed the $250,000/$500,000 profit thresholds at time of sale. The new tax will apply on all other transactions, including luxury real estate sales, second homes and rental properties.

According to FactCheck.org, here are two examples of how individuals might be liable for the extra tax.

• A single executive making $210,000 a year who sells his $300,000 ski condo for a $50,000 profit. His tax on the sale of that vacation home would amount to $1,900, in addition to the capital gains tax he would have paid anyway.

• An "empty nester" couple with combined income of over $250,000 a year who sell their $1 million primary residence to move to smaller quarters. If they cleared $600,000 on the sale, they would be taxed on $100,000 of the profit (the amount over the $500,000 exclusion). Their health care tax on the sale would amount to $3,800 over and above the usual capital gains levy."

What's not yet clear is whether this tax will have to be collected by the closing agent as in the case of FIRPTA (Foreign Investment in Real Property Tax Act) or whether the individual will pay the tax when they report their 1040 "income."

Fallout
The luxury real estate, second home and investment real estate markets continue to be depressed in most areas due to surpluses on inventory, uncertainty in the marketplace, and lack of financing. Many investors are sitting on their cash waiting to see what will happen. What's unclear at this time is whether this tax will deter investors from snapping up substantial parts of the bank-owned (REO) and short-sale inventory (the so-called "shadow inventory") as these properties come on the market.

If investors withdraw from the market because they can't get properties "to pencil" (i.e., be profitable after expenses), then we could be facing an even larger supply of homes that will have the predictable result of causing prices to fall even further.

Bernice Ross, CEO of RealEstateCoach.com, is a national speaker, trainer and author of the NAR #1 Best Seller, "Real Estate Dough: Your Recipe for Real Estate Success." Hear Bernice's five-minute daily real estate show, just named "new and notable" by iTunes, at www.RealEstateCoachRadio.com. You can contact her at Bernice@RealEstateCoach.com or @BRoss on Twitter.

Daily Real Estate News  |  May 28, 2010

The near-record low mortgage rates seen during the past few weeks may not be around much longer.

Signs of improving economic conditions could lead Federal Reserve Chair Ben Bernanke to raise key interest rates, driving up mortgage rates, says Stephen Stanley, chief economist at Pierpont Securities LLC.

The evidence includes more consumers are paying their bills on time. Past-due accounts at American Express declined 34 percent compared to a year ago, and Target Corp. reported its lowest delinquency rate in two years during the second quarter.

In another sign of economic improvement, fewer banks reported tightening lending standards this month, one reason consumer borrowing rose for the second time in three months.

"If lending standards start to stabilize, that'll be another reason to remove the emergency measures, including the zero rate," says Jay Bryson, a senior global economist at Wells Fargo Securities LLC in Charlotte, N.C., who formerly worked at the Fed in Washington.

Source: Bloomberg, Bob Willis and Anthony Feld (05/28/2010)

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By: Richard Koreto
 

Originally Published: November 18, 200
 

Whether a first-time buyer or a longtime owner, you may be eligible for a homebuyer tax credit if you meet these IRS guidelines: 

• You meet IRS income and homeownership rules.
• You sign a binding contract by April 30, 2010.
• You close on a home purchase by June 30, 2010.

If you receive a tax credit, it will come in the form of a reduced tax bill or an increased refund.

Some first-time buyers and longtime owners may be able to claim a federal homebuyer tax credit on a principal residence bought in 2009 or early 2010. Eligibility depends on a number of factors, including income, homeownership status, and the exact purchase date of the home.

To be considered a first-time buyer by the IRS, you mustn't have owned a home for the three years prior to your purchase. Longtime owners must've lived in their homes for five consecutive years during the past eight years. Revised rules apply to those who buy between Nov. 7, 2009, and April 30, 2010. Buyers who made purchases on or before Nov. 6, 2009, are covered under an older set of guidelines.

New rules for first-time homebuyers
First-time buyers who purchase a home between Nov. 7, 2009, and April 30, 2010, may be entitled to a federal tax credit worth 10% of the sale price or $8,000, whichever is lesser. Income restrictions apply. The tax credit for joint filers begins to phase out at a modified adjusted gross income of $225,000 ($125,000 for individual taxpayers). The credit disappears entirely at $245,000 for joint filers ($145,000 for individuals).

While first-time buyers must enter into a binding contract to purchase a principal residence by April 30, the closing can take place as late as June 30, 2010. The home can't cost more than $800,000.

Qualifying purchases in 2009 can be claimed on your 2008 or 2009 return. File an amended return for 2008. Purchases in 2010 can be claimed on your 2009 or 2010 return. To get the credit for the 2009 tax year on a purchase that closes after April 15, 2010, either request an automatic filing extension or file an amended 2009 return.

The first-time homebuyer tax credit is "refundable," according to Ken Burstiner, a CPA at Weiser LLP in New York City. That means you can earn it even if you owe no federal tax, the credit exceeds your total tax liability, or you have little income. Claim the credit on IRS Form 5405, which should take less than an hour to fill out. It's a good idea to consult a tax adviser. H&R Block's average fee to prepare a tax return is $187.

Old rules for first-time homebuyers
First-timers who bought a home between Jan. 1, 2009, and Nov. 6, 2009, may also be eligible for a federal tax credit worth up to $8,000. A tax credit reduces your tax bill or increases your refund dollar for dollar. In general, whether under the old rules or the new rules, you'll be required to repay the full value of the credit to the IRS if you don't maintain the home as your principal residence for three years.

First-time buyers subject to the old rules face tighter income limit. The phase-out kicks in for joint filers when modified adjusted gross income hits $150,000 ($75,000 for individual taxpayers). It disappears entirely at $170,000 for joint filers ($95,000 for individuals). Married filing separately taxpayers can claim only up to half of the $8,000 credit.

First-time buyers in 2008 were subject to a different tax-credit program. Homes purchased after April 8, 2008, and before Jan. 1, 2009, were eligible for a credit worth the lesser of $7,500 or 10% of the home's purchase price. Income limits and phase-out ranges were the same as those for first-time buyers between Jan. 1, 2009, and Nov. 6, 2009.

The biggest difference between 2008 and 2009 was that the tax credit in 2008 really functioned as an interest-free loan that must be paid back over 15 years. The first of the annual installments should come due on the 2010 tax return filed in 2011. With few exceptions, if your home ceases to be your main residence during those 15 years, you have to pay back the outstanding amount with the subsequent tax return.

Tax credit for longtime homeowners
If you're a longtime homeowner-meaning you've lived at your principal residence for five consecutive years out of the last eight-you may qualify for a homebuyer tax credit worth up to $6,500. You must purchase a new principal residence between Nov. 7, 2009, and April 30, 2010. Like the first-time homebuyer tax credit that applies to these dates, you can settle as late as June 30, 2010, as long as you have a binding contract by April 30.

The same $800,000 cap on the purchase price applies to longtime homeowners, as do the same income restrictions. The credit begins to phase out for joint filers at modified adjusted gross income of $225,000 ($125,000 for individuals), and disappears at $245,000 ($145,000 for individuals). Married couples filing separately are eligible for up to half of the $6,500 credit.

For both first-time and longtime buyers who want to claim the tax credit for a purchase made after Nov. 6, 2009, the IRS requires proof. Attach a copy of the settlement statement you received at closing to your return. You must be at least 18 years old.

Other restrictions and provisions
As long as they serve as principal residences, single-family homes, townhouses, co-ops, and condos are all eligible for a tax credit. Mobile homes may be eligible for the credit, even if the land itself is leased. Owning a vacation home or rental property doesn't disqualify you as a first-time homebuyer, but you do have to make it clear such properties were never your principal residence.

You won't be eligible for the tax credit if you're buying from a close relative. For example, if your mother goes into a nursing home and you buy her house from her, you can't claim the credit. Close relatives include parents, grandparents, children, grandchildren, your spouse, and your spouse's family.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

Richard J. Koreto, a freelance writer, is the former editor of several professional financial magazines and the author of "Run It Like a Business," a practice management book for financial planners. He and his wife own a pre-Civil War house in Rockland County, N.Y.

"Leader's Leader Award" presented to Tami Bonnell

February 05, 2010

Mississauga, ON (Grassroots Newswire) - As a 30-year veteran in the real estate field, Tami Bonnell continues to lead the way when it comes to her vast knowledge and understanding of the industry.  From her background in mergers and acquisitions to her countless speaking engagements, her passion is relentless and EXIT Realty is proud to have her on their team.
 
"Tami Bonnell's leadership goes above and beyond the call of duty", commented EXIT Realty Corp. International Founder and CEO, Steve Morris, "She commands the absolute respect, reverence and esteem of every EXIT Realty associate at all levels of the corporation throughout North America.  She sets the tone and tempo for our leaders and radiates an example of the finest quality as a clear pathway for others to follow."
 
Since becoming President of the US Organization for EXIT Realty Corp. International, her focus is on growth and profitability for Regions, Brokers and Agents. Bonnell has been featured several times in major industry publications, including Real Estate Magazine, Bay State REALTOR® and Frog Pond Communications. She is a much sought-after international speaker, addressing thousands at events such as RISMedia's Leadership Conference in NY, Inman News Conference in San Francisco and the Top 500 Power Brokers at The National Association of REALTORS® Convention, and regularly speaks at Women's Council of REALTORS® meetings across the country.  "Tami is a relentless communicator, her experience naturally comes through and there is nothing artificial about her" says Jeff Lobb, EXIT Realty Trainer and Technology expert, "She has a very logical approach and the innate ability to motivate people to take action."
 
At EXIT's Annual Convention in Washington DC, this past October, Bonnell was presented with the Leader's Leader award for her hard work, dedication, knowledge and professionalism.
 
"In my forty years in real estate I've had the opportunity to know and work with many executives and leaders.  Tami Bonnell speaks boldly from her heart with strong convictions about what she believes is needed to improve our industry and works harder that anyone I have ever known.  Her heart, vision and a strong work ethic earns my utmost respect," said Bob McKinnon, EXIT Realty's Senior Regional Consultant.
 
Ms Bonnell's upcoming speaking engagements include an address to the Women's Council of REALTORS® in New York in March entitled "Prepare for Change".

The Federal Government has spent nearly a trillion dollars over the last year to keep mortgage rates low. As of March 31st that participation will end undoubtedly sending rates higher. The imminent increase in rates coupled with the expiration of the up to $8000 tax credit for home buyers and ever rising foreclosures are all likely to spell trouble for the housing market for the rest of 2010 and most likely well into 2011. Add on the further changes to mortgage qualifications, higher required down payments, less people gainfully employed, the expiration this year of the tax cuts, and it may be a couple of presidential elections until the market even begins to resemble what it once was. 

I should also mention the recent changes in RESPA (real estate settlement practices act). These changes favor banks and lenders which will effectively put thousands of mortgage brokers out of business. Less competition means higher costs to borrow and more difficulty finding financing for your next home.

Bottom Line?
If you are in a position to buy do it by May of this year.
RESPA changes are already in effect.
Rates will be higher after March.
The Tax Credit ends in May.

Talk to a lender you can trust to tell you what you can afford.
As always, make sure you consult tax experts about tax consequences and your attorney about legal issues.

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