Could you have a hidden savings account in old or lost savings bonds?
(NAPSA) A growing number of Americans are engaged in a treasure hunt and some in are in their own home. They're looking for U.S. Savings Bonds, the Series E in particular. The good news is that there's a new website designed to help them in their search.
Series E U.S. Savings Bonds that are at least 30 years old (that's nearly all E bonds) have stopped earning interest. That means bond holders can actually lose money to inflation by not cashing them, so it's in the interest of bond holders to find the bonds and get the cash.
Many of these bonds are worth at least four times their face value and sometimes much more. For example, a $100 Series E bond bought for $75 in 1960 is worth more than $700 today.
So why aren't people cashing their bonds? In many cases, they have simply been forgotten. A great number of baby boomers now in their 50s and 60s may have received the bonds when they were children as graduation or birthday gifts, or bought them using savings stamps at school. Or they may have purchased them through the Payroll Savings Plan when they first started working.
While it's a smart idea to start your search for bonds in old family "hiding places," you can also visit www.treasuryhunt.gov. The U.S. Department of the Treasury created the site to help people locate unredeemed mature bonds.
If the bonds were purchased in 1974 or later, you just have to enter the Social Security number of the owner or purchaser. The Treasury Hunt database will match the number against unredeemed bonds. There are also instructions on the site for finding bonds issued before 1974.
For the vast majority of owners, cashing bonds will not affect their tax rate, but may provide an after-tax windfall. Federal income taxes are only due on the interest earned, while bonds are completely free of state and local income taxes.
You can find out more about unredeemed savings bonds, including how to cash them at your local financial institution, by visiting www.treasuryhunt.gov. You'll also find a calculator there that tells you how much old bonds can be worth.
It's in the interest of those holding Series E Savings Bonds to cash them if the bonds have reached maturity. Otherwise, they may lose money due to inflation.
The Federal Trade Commission's ("FTC") rules banning prerecorded sales calls made without a consumer's written consent took effect on Sept. 1, 2009. Additionally, the charge for accessing the federal "Do Not Call" registry will slightly increase on Oct. 1, 2009. Below is a brief summary of the changes.
First, the FTC amended its rules last year to prohibit telemarketing sales calls through prerecorded messages, whether the call is answered by a consumer or by an answering machine, unless the seller has previously obtained the recipient's signed, written agreement to receive such calls. The consumer's permission may be obtained electronically through a lawful e-signature. The rule does not prevent companies from making prerecorded messages that are informational in nature, such as calls that reconfirm appointments or reservations. All prerecorded sales calls must also contain an automated opt out mechanism that is provided at the beginning of a prerecorded message.
Second, the fee for accessing the Registry for specific area codes rises from $54 to $55 and the total cost for the whole Registry increases to $15,058. Last year, the law implementing the Registry linked the Consumer Price Increase index to the access fee cost, and so the access fees will increase as the CPI increases. The new access fees reflect the slight rise in the CPI over the past year.
One of my housing inspectors while traveling to an inspection heard on the radio that West Nile virus was found here in Ohio, Franklin County to be more precise. This virus is transmitted via mosquitos which can be greatly reduced in number by a few simple steps. Mosquitoes lay up to 250 eggs at a time in still water, which will hatch in 7 to 10 days. If standing water is eliminated weekly, many mosquitoes will be kept from breeding in the first place, eliminating the need to use pesticides against adult mosquitoes.
Remove standing water in ditches, clogged rain gutters, flower pots, plant saucers, puddles, buckets, jars and cans. Also check kid toys left outside for water. Clogged gutters or gutters with poor slopes are the source of standing water I see frequently. If you have this issue get the gutters cleared and correct the slope.
Per IR-2009-27, March 18, 2009 - For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit.
The filing options to consider are:
File an extension. Taxpayers who haven't yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15. This step would be faster than waiting until next year to claim it on the 2009 tax return. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.
File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later. Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.
Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.
Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.
Ever since the housing bubble burst and the current recession began in late 2007, the federal government has been seeking ways to reinvigorate the slumping housing market. Beginning in 2008, first time homebuyers became eligible for a $7,500 maximum tax credit to help in the purchase of their home. Unfortunately, this credit had to be repaid over the course of 15 years. In other words, someone could claim a $7500 tax credit on their tax return but then would have to add $500 to their tax liability in each of the next 15 years!
This has changed for the better under the terms of this year's economic stimulus package. According to the IRS, under the American Recovery and Reinvestment Act of 2009 qualified first-time homebuyers who purchase a home before December 1, 2009, are eligible to receive a tax credit of up to $8,000, and unlike the previous tax credit I talked about above, people can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year, and they do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date.
Let's dig into the basics of this tax credit a little further with some basic FAQ's that will help you understand the full scope of how this credit works: (source: http://www.nahb.org/)
Who is eligible to claim the tax credit? First-time homebuyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the homeowner.
What is the definition of a first-time homebuyer? The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the homebuyer and his/her spouse.
For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time homebuyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time homebuyer.
How does someone claim the tax credit? Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, homebuyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns). No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time homebuyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase.
How is the amount of the tax credit determined? The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
Are there any income limits for claiming the tax credit? Yes. The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return.
What types of homes will qualify for the tax credit? Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.
It is important to note that you cannot purchase a home from your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse. Please consult with your tax advisor for more information. Also see IRS Form 5405.
What is the $10,000 tax credit that I've heard about? Californians can take advantage of a state tax credit passed by the state legislature as part of the budget deal in February. This $10,000 credit applies to homebuyers who purchase a newly built home as their primary residence between March 1, 2009 and March 1, 2010. Unlike the $8,000 federal credit, the California credit is not limited to first-time homebuyers!
If I've already filed to receive the $7,500 tax credit on my 2008 tax returns for a home purchased in 2009, can I claim the new $8,000 tax credit instead? Yes, homebuyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.
I bought a home in 2008. Do I qualify for this credit? No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit. Please consult with your tax advisor for more information.
Is there any way for a homebuyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return? Yes. Prospective homebuyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the down payment.
Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective homebuyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.
In addition, rule changes made as part of the economic stimulus legislation allow homebuyers to claim the tax credit and participate in a program financed by tax-exempt bonds. As a result, some state housing finance agencies have introduced programs that provide short-term second mortgage loans that may be used to fund a down payment. Prospective homebuyers should check with their state housing finance agency to see if such a program is available in their community.
The Secretary of Housing and Urban Development has announced that HUD will allow "monetization" of the tax credit. What does that mean? It means that HUD will allow buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 income taxes to receive a refund. These funds may be used for certain down payment and closing cost expenses.
Under the guidelines announced by HUD, non-profits and FHA-approved lenders will be allowed to give homebuyers short-term loans of up to $8,000.
The guidelines also allow government agencies, such as state housing finance agencies, to facilitate home sales by providing longer-term loans secured by second mortgages.
Housing finance agencies and other government entities may also issue tax credit loans, which home buyers may use to satisfy the FHA 3.5 percent down payment requirement.
In addition, approved FHA lenders will also be able to purchase a homebuyer's anticipated tax credit to pay closing costs and down payment costs above the 3.5 percent down payment that is required for FHA-insured homes.
You can't buy old growth wood at your local building supply, but it was the standard material a century or so ago. Thanks to a renewed appreciation for the quality of old wood and the eco-conscious desire to reuse it, you can buy reclaimed wood from de-constructed homes, barns and old factories. Reclaimed wood is centuries old and rich with resin and the patina that only comes from age. This wood was center-cut from trees that grew slowly in dense forests, producing tight inner rings that yield strength and beauty that current fast-growth trees can never rival. The reclamation process of removing nails, sawing and re-milling old wood is usually more expensive.
Reclaimed wood is a worthy investment for any home, but if your budget will not allow for it, you might obtain it by good old initiative and sweat equity. Ask friends, put an ad in the paper or online like Craigslist, and take frequent drives in the country looking for falling-down structures. Ask the owner of such a structure if he will allow you to take the wood in exchange for cleaning up the site.
Be forewarned that deconstruction is a huge and sometimes dangerous undertaking, and it helps if you know what you are doing. Wear safety gear and gather several friends who will share the proceeds for their help and contribution of equipment needed, like a tractor, trucks, pry bars and claw hammers. Make sure that you make safety your number one priority.
Salvaged Building Material Suppliers
Baseboard, crown molding, fireplace mantels and solid wood doors are available at a salvaged building materials supplier. Search online for a local salvaged materials supplier. Similar options exist through the following websites:
www.PlanetReuse.com - A nation-wide free source for anyone in the construction business, both professional and layperson. You can advertise or browse listed materials, then click on an ad to let Planet Reuse set up an interface between you and the seller.
www.Freecycle.org - Available in most major cities, the great thing about Freecycle is that everything is free, even membership. You can make requests or offer unwanted items. Freecycle sends daily emails, so be prepared for an overloaded inbox. Be ready to respond quickly if you see what you want.
Finding inexpensive sources of wood is a great bargain, especially for someone who loves to work with it!
Is It Best to Repair or Replace Your Car? When is it time to buy a new set of wheels?
(NAPSA) - A growing number of people are finding that the economy has them debating whether it's best to buy a new car or repair the one they have. If you are trying to decide between buying and repairing, here are some tips that may help:
Comparing Costs
It is typically less expensive in the long run to repair the vehicle you already own rather than purchasing a newer one. Financing even a $2,000 repair typically means lower payments (or similar payments for a shorter time) than those incurred when purchasing a newer vehicle.
The 50-Percent Rule
After receiving the estimate of a major repair, consider the "50-percent rule." When the cost of a needed repair approaches 50 percent of the vehicle's value, it is time to seriously consider replacing it.
Reliability and Maintenance History
The best way to know a vehicle's condition is by maintaining it on a regular basis and using the same repair shop. If a repair shop knows the service history of a vehicle, consumers can look to its technicians for guidance on when their vehicle likely will need major repairs.
"Following the vehicle manufacturer's maintenance recommendations can greatly increase the life span of vehicle," said John Nielsen, director of AAA Approved Auto Repair and Auto Buying.
Cosmetics
The cosmetic condition of a vehicle can greatly affect its value and a motorist's desire to hold on to it. Motorists should take a critical look at their vehicle for signs of wear and tear and evaluate how important their vehicle's cosmetics are to them.
Lifestyle
Changes in lifestyle can be a large factor in changing vehicles. Family size, commute length, recreational usage and business needs are all legitimate reasons to consider purchasing a newer vehicle that is better suited to a consumer's driving routine.
Outside Factors
Several outside factors may impact the decision between repairing and replacing a vehicle, such as reduced pricing and special offers from manufacturers. A vehicle that could become a valuable classic might be worthy of extraordinary repairs and maintenance.
One of my home inspectors, Jim Troth, had a very interesting event happen in one of our houses. I thought I should share this story.
Encouraging your clients to have a home inspection is a great way to show that you care about their well being. Making extra efforts is another way.
The other day at a home inspection while traversing an attic, Jim squeezed through an opening to get to the other section of the attic. While there he saw what is imaged. It is charred roof sheathing. It is charred because the gas water heater vent is disconnected and the exhaust is not being directed safely outside, slowing buring the wood.
If Jim's extra efforts of actually climbing through a hot dirty attic was not made then who knows what would have happened eventually. I am certain that the clients are very happy he saw this.
REALTORS® give back to their communities year-round through personal investment of time and funds.
REALTOR® Care Day is an opportunity for members to work collectively to improve housing in our communities. From cleaning up a main corridor or local park to making repairs/improvements for a rental community or deserving homeowner, this effort improves the living conditions, increases the value of homeownership and enhances the community for all.
The fifth annual REALTOR® Care Day is set for Wednesday, June 10, 9 a.m. to 4 p.m. in conjunction with National Homeownership Month (June).
CBR Main Project - North of Broad (NoBo) This year, the CBR Main Project for REALTOR® Care Day will again focus on CHP's North of Broad community - referred to as NoBo - located in the King Lincoln District, specifically North 21st Street between East Long Street. and Mt. Vernon Avenue. We have eight different site projects including: creating a community green space garden and vegetable garden; fence removal/relocation; and beatifying various houses in the area.
For questions, contact our Volunteer Coordinator, Janet Thiede at (614) 507-4313.
Several Projects to choose from! A description of CBR's Main Project is above. In addition, there are several Area Realty Associations participating with projects all over central Ohio. If you would like to get involved in any of these projects, please contact the Association name listed below.
Cleaning up Bexley/Eastmoor/Berwick neighborhoods, including the intersection of Cassady and Alum Creek. Meet at the Rusty Bucket, 2158 East Main St. for assignments.
1. Check local classifieds for repairmen who want old electronics and appliances. Sell working appliances, or give
to a friend in need. Take remaining appliances to the landfill and pay a small fee.
2. Gather scrap metal and salvaged electrical wire and store until prices for copper and steel rise again. When prices are
no longer rock bottom, sell scrap metal to a salvage yard.
3. Reuse untreated wood (studs, shelving) removed during demolition in future remodeling and carpentry projects. Do not
reuse wood with mold, rot, or lead-based paint.
4. Save sawdust and wood shavings (from untreated new wood) for mulch. Save old carpeting for a weed barrier in the
garden.
5. Have leftover paint from former owners? If it's still good even though the lid is rusty, save for use in out-of-the-way
places and the future doghouse.
6. Contact Habitat for Humanity to see if they are interested in any of the carefully-salvaged items (cabinets and bathroom
vanity) or leftover new materials.
7. Sell anything of value that will not be used in the renovation or future projects: light fixtures, vintage hardware, antique furniture, mantelpiece, mirrors, intricate door trim or molding. Contact salvage companies who specialize in vintage materials, or sell through Internet auctions (eBay) or classifieds (craigslist.com).
8. Have a yard sale for the rest. Carefully removed ceramic tile, leftover plumbing materials, electric switch plates and
outlet covers, miscellaneous screws, nuts and bolts, etc. Advertise in local papers with a special alert to handymen and
contractors.
9. Recycle glass, paper, and plastic when possible. www.Earth911.com is a helpful resource to locate recycling
plants in your area.
Some landfills will not accept construction waste from anyone but a contractor, so do-it-yourselfers should always find out
what permits they will need. If they cannot obtain a permit, they can hire a construction waste removal company, some of
whom bend over backwards to ensure the good leftovers will be reused or recycled, and not just automatically sent to a
landfill.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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