Why Hillary?
By cpa | January 29, 2008
NEW YORK SENATOR Hillary Clinton She is the candidate with the strength and experience to change America.
With housing foreclosures at an all time high,oil prices continuing to rise and millions lacking health insurance, we need a president with the strength and experience to change this country. That ‘s why recommends our Senator Hillary Clinton for President.
She has never stopped fighting for working families and she has a record for more than 30 years. she ‘s got what it takes to win and to lead.
Hillary’s record of strengthening the Middle Class
*Successfully fought to raise the minimum wage and introuduced the standing with Minimum Wage Eaeners Act, requiting that te minimum wage be raised each time Congress receives a raise.
*Stood strong for retirement secuity and opposed all attempts to privatize Social Security.
Hillary’s record of supporting the Rights of workers
*Sponsored the Employee Free Choice Act(H.R.800), which protects employees’ right to form a union.
*Sponsored the Fair Wage, Competition and Investment Act of 2005 (S.14), protecting overtime pay for millions of workers.
*Sponsored the Public Safety Employer-Employee Cooperation Act (S.2123), which would allow police, firs fighters, first responders and corrections officers to have the rightr to bargain collectively.
Hillary’s recoed of fighting for working families
*Led the fight for the State Children’s Health Insurance Program(SCHIP), which provides health insurance to six million children.
*Sponsored an expansion of Family and Medical Leave Act (FMLA) to provide parents time off work to go to the doctor with their childen.
Real change takes more than words.
How you vote is a personal decision, but electing Hillary Clinton for President is right for America.
Topics: READY FOR CHANGE AMERICA | 2 Comments »
Can a home seller sell a home for less than its mortgage?
By cpa | January 27, 2008
Yes, in some case you can sell your home for less than what you still owe on the mortgage. But it is complicated and depends on the lender. This situation is known as a “short sale.” Sometimes a lender will be willing to split the difference between the sale price and loan amount, which still must be paid.A short sale may be more complicated if the loan has been sold to the secondary market because then the lender will have to get permission from Freddie Mac, the two major secondary-market players.
If the loan was a low down payment mortgage with private mortgage insurance, then the lender also must involve the mortgage insurance company that insured the low-down loan.
Topics: Owning Your Home | 3 Comments »
Lithium-ion battery wins over remodelers
By cpa | January 26, 2008
You’ve no doubt heard about lithium-ion batteries by now, and have probably heard some of the claims about what an improvement they are over past battery technologies. So what exactly is lithium-ion, and is it really any better?
Ever since the first cordless tools were introduced and professionals and do-it-yourselfers alike applauded the convenience of no longer being tied to a power cord, manufacturers have been engaged in an ongoing search for batteries with more power and less weight. Lithium-ion, the latest generation of battery technology, offers just that — and more.
Batteries made from lithium ions offer a lot of energy compared to their weight, resulting in batteries that can provide considerable power while keeping the weight of the tool down. And since much of the weight of a cordless tool is in the battery itself, lighter lithium-ion batteries have also allowed manufacturers to create tools with better balance and greater comfort, so you can use them for much longer periods without fatigue.
In addition to less weight, lithium-ion batteries have no memory, so they can be recharged repeatedly back to their full capacity, even if charged when not fully depleted. They recharge quickly, and also tend to lose less of that charge when not in use.
So, when shopping for a new cordless drill or other tool powered by a rechargeable battery, it definitely pays to look for lithium-ion batteries (sometimes abbreviated Li-ion) over nickel-cadmium (NiCad) or nickel-metal-hydride (NiMH).
WHAT TO LOOK FOR
Having embraced the potential of lithium-ion batteries, there are currently several Li-ion tools on the market. Here are examples of some quality tools from different manufacturers that utilize lithium-ion technology:
Ridgid: A manufacturer of professional quality tools that are also very suitable for the home handyman, Ridgid has several tools in its lithium-ion collection, including the Compact 18-Volt Drill/Driver. This is an excellent drill for the pro and the do-it-yourselfer alike, and it really utilizes current lithium-ion battery technology to its fullest. The smaller, lighter lithium-ion batteries clip easily into the base of the handle, and make for a drill with less weight and considerably better balance than some older cordless drills — something you’re certain to appreciate when building a deck or undertaking other big home-improvement projects. You’ll also find a tremendous amount of drilling power and driving torque; a battery that lasts a long time between rechargings; and fast, 30-minute recharge times.
Bosch: Another manufacturer known for professional-grade tools, Bosch also has several entries in the lithium-ion cordless tool marketplace. One way that it has taken advantage of the smaller, lighter Li-ion battery is with its great little 10.8-volt “I-Driver.” This light, compact, straight-line drill/driver has a head that rotates to five different positions, from zero to 90 degrees in relation to the handle. Even in the 90-degree position, the drill head is only 3 1/2 inches long, so it will fit into even the tightest spaces, but still with enough power to get some real work done. It has an eight-position clutch, accepts any 1/4-inch hex bit, and has a comfortable, sturdy feel. Also in Bosch’s lineup of light and powerful 10.8-volt tools are its “Pocket Driver” screwdriver and “Impactor” impact wrench, both of which are compact and light enough to drop into your tool belt, but again have enough power for real work.
Dremel: The small-tool champ, Dremel has used lithium-ion technology to create a nicely designed rechargeable screwdriver called the “Dremel Driver.” It uses a 7.2-volt motor, and recharges continuously in its docking stand. At less than 5 inches in length, the Dremel Driver can go just about anywhere, but still has enough power to handle 3-inch screws. It’s a great little screwdriver for electrical work, electronics and hobbies, and because it holds its charge for up to two years, it’s ready anytime you need it.
Skil: Lithium-ion-powered tools are certainly not restricted to just drills and screwdrivers, which Skil has demonstrated with its new Power Wrench. The Power Wrench works with any 1/4-inch socket, and recharges in its own stand. At a weight of less than two pounds and having 400 inch-pounds of torque, it’s great for carpentry work that requires lag bolts or nuts and bolts, as well as for automotive work, furniture assembly and other tasks where you used to reach for a socket wrench.
Topics: Remodeling and repair | 2 Comments »
IRS to step up enforcement of Starker exchanges
By cpa | January 25, 2008
If you are considering a 1031 exchange (also known as a “Starker exchange”), you better make sure that you do it right. The Internal Revenue Service plans to increase its audits and its enforcement of these exchanges by the summer of 2008.
Usually, when a taxpayer sells a business or investment property, the taxpayer must pay a tax on any profit that is made. If the property was owned for more than one year, it will normally be considered a long-term capital gain and the tax will be based on your income. Currently, the highest tax rate is 15 percent.
However, if the taxpayer engages in an exchange, and strictly follows the complex rules, this gain can be postponed. For example, if you purchased your investment property for $100,000 and sold it for $200,000, you would in most cases have to pay the IRS $15,000 in addition to any state or local tax. However, if this property was sold in connection with a Starker exchange and you obtained another investment property worth $300,000, you would not have to pay any capital gains tax. Instead, the basis of the old property would be transferred to the new one; you would have to pay the tax only when you ultimately sold the replacement property and did not engage in yet another 1031 exchange.
But you must understand that a 1031 is not a “tax-free” process; it only defers the time when you have to pay the capital gains tax.
In a report issued last month, the Treasury Inspector General for Tax Administration (TIGTA) advised the IRS that “there appears to be little IRS oversight of the capital gains (or losses) deferred through like-kind exchanges.”
When a taxpayer engages in a 1031 exchange, he or she must file Form 8824 with the IRS for the year in which the exchange took place. The Inspector General reported that more than 338,500 forms were filed in 2004 (the year of the TIGTA’s study). This amounted to deferred gains or losses of more than $73.6 billion. According to the report, “while this represents a doubling of the number of like-kind exchanges reported in 1998, the total dollars amounts deferred more than tripled.”
Like-kind 1031 exchanges serve a valuable function. According to the TIGTA report:
Taxpayers who take advantage of like-kind exchanges increase their purchasing power, as well as their financing and leverage capabilities, because payment of federal tax on the gains is deferred … with additional equity to reinvest, taxpayers can execute exchange after exchange to create a pyramiding effect. The tax liability may be forgiven upon the death of the investor because the heirs may qualify for a stepped-up basis on the inherited property.
But because of the lack of enforcement by the IRS, taxpayers have been taking advantage of these favorable tax rules. For example, the Government Accountability Office (GAO) conducted a similar survey and found that taxpayers often made misrepresentations of the assets that were being exchanged. In order to have a successful 1031 exchange, real property must be exchanged for like-kind property. While this is a very broad category — you can exchange a single-family investment property for raw land, an office building for a shopping center, or a condominium unit for a cooperative apartment — the exchange will not be accepted if you want to exchange your principal residence for some other kind of property. Nor can you exchange a business for real property: it is not “like-kind.”
However, the Inspector General discovered that the IRS generally will not impose any penalties if a taxpayer does not file Form 8824.
The report also highlighted other abuses, such as related party exchanges, incorrect basis figures, and partial, step and bartering exchanges. These are highly complex technical issues that will not be discussed or explained in this column.
Based on its findings, the Inspector General made three specific recommendations, all of which have been accepted by the IRS.
1. The IRS should study tax-reporting and compliance issues involved with like-kind exchanges The IRS agreed to conduct research studies and complete its work by Aug. 15, 2008. Based on the outcome of this research, it appears likely that exchanges that take place this year will be given greater scrutiny.
2. The IRS should provide better information and guidance to taxpayers on how to conduct a proper 1031 exchange. The IRS has agreed that by Jan. 15, 2008, it will provide more information on a number of its publications and forms so as to assist taxpayers in understanding how the exchange process works. Specifically, Publication 17 (entitled Your Federal Income Tax) will be updated to specifically remind taxpayers that they must file Form 8824 with their income tax return if they have been involved in a 1031 exchange during the previous year.
3. The IRS must provide clear guidance to taxpayers regarding the rules and regulations governing like-kind exchanges with respect to second and vacation homes that were not used exclusively by owners.
This is an area that is extremely complex. According to the Inspector General, “the absence of clarification on this issue leaves unrebutted the sales pitch of like-kind exchange promoters who may encourage taxpayers to improperly claim deferral of capital gains tax by selling nonqualified second and vacation homes through ‘tax-free’ exchanges.”
Here, too, the IRS agreed. By March 15, 2008, the IRS will provide additional information to consumers and to tax practitioners about the filing requirements for Form 8824. More importantly, the IRS will increase its “consumer warnings” so as to caution taxpayers to be “wary of individuals promoting improper use of like-kind exchanges.”
The IRS will not discourage the use of the Starker exchange. This process is specifically authorized in Section 1031 of the Internal Revenue Code. But investors must be on their guard against deceptive and fraudulent promotional schemes. Keep in mind that a Starker exchange is not a “tax-free” exchange; it is a “tax-deferral.” If done properly, it will allow the taxpayer to use the moneys that otherwise would go to Uncle Sam for additional investments.
If you plan to get involved in a 1031 exchange, you should make sure your own lawyer and accountant review the process at every step.
In fact, depending on the amount of your gain, it may be best to just pay the capital gains tax and not become a landlord on the new replacement property. Your financial advisors will be able to assess and assist you in making this important decision.
(Note: The entire report can be located on the Web at www.tigta.gov; click on 2007 audit reports. It is report 2007-301-72).
No legal relationship is created by this column.
Topics: Starker exchanges, TAX | No Comments »
Top 10 ways to repair credit, boost score
By cpa | January 23, 2008
When it comes to repairing your credit, you’re the best person for the job.
Credit repair scam artists will charge you anywhere from $500 to $1,500 or more upfront, and promise you everything from a new Social Security card to perfect credit.
But these companies can’t do anything for you that you can’t do for yourself — for free — and they might ultimately do more harm than good.
What should you do if you have bad credit? Here are 10 tips that are designed to improve your credit history and raise your credit score:
1. Pull a copy of your credit history from AnnualCreditReport.com. Sponsored by the three credit-reporting bureaus, Equifax, Experian and TransUnion, AnnualCreditReport.com is the only place you can go to get a truly free copy of your credit history. Each credit-reporting bureau is required to give you one copy once a year. You should pull copies from each of the bureaus, since they sometimes collect different data.
2. While you’re there, buy a copy of your credit score from Equifax.com. Equifax offers a FICO score, also known as a Beacon score, which is from Fair Isaac, the company that created the concept of credit scoring. Most creditors will pull a FICO score, so you should see what they’re seeing. Your credit score will give you a snapshot of what your credit information means to your creditors. The FICO score runs from 350 to 850. The higher the number, the better. Your target should be to have a credit score of at least 720.
3. Check your credit history thoroughly. You’re looking for errors, misinformation and negative information that might count against you. File a dispute with the three credit-reporting bureaus if you spot any errors. Some credit reports have serious errors in them, so fixing these will boost your score.
4. Understand what kind of debt you’re facing. Make a list of everything you owe, the interest rate each debt carries, and the minimum payment due each month. Then, prioritize your debt: mortgage, real estate taxes, credit cards and medical bills should be paid in that order.
5. Negotiate with your creditors for a lower interest rate. Paying less in interest means more of your payment each month goes toward paying down your balance. If you have a good credit score (over 720 is a starting point), you should be able to find other credit cards featuring zero percent to 5 percent in interest for the first year, or for the life of a balance transfer (check out sites like CardRatings.com and CardTrak.com to compare credit-card offers.) Just be sure you read the fine print: Some credit cards require you to charge on the new account each month or face a stiff fee.
6. Pay down the debt with the highest interest rate first. Pay your mortgage and home equity loan and lines of credit in full each month. Then, make sure you have enough cash to make all of the minimum payments due on your debt each month. Then, throw any spare cash at the debt that carries the highest interest rate first. Once you’ve paid down that debt, transfer all of the extra cash you’re paying each month to the debt with the next-highest interest rate, and so on.
7. Pay everything on time, even if you can make only the minimum payment. The most crucial component of your credit history and credit score is your ability to pay your bills on time each month. Paying on time shows your creditors that you take your debts and obligations seriously. Even one late payment can seriously damage your credit history and credit score, even though it can take a year’s worth of on-time payments to start to heal your credit history and raise your credit score. It doesn’t seem fair, but that’s how the credit industry works.
8. Don’t charge more than 25 percent of your maximum available credit limit. If you carry a credit-card balance that is a higher percentage of your available credit limit, your credit score will go down. Why? Because creditors believe if you charge the maximum on your credit cards, it means you can’t properly manage your credit. You’re better off spreading out your debt between three or four different cards than having it all piled on one card.
9. Don’t open and close a lot of accounts. Again, a credit score tells current and future creditors how likely it is that you won’t pay back your debts. It assesses how risky a borrower you are today. Every time you apply for a new credit card, that creditor pulls a copy of your credit history from the credit-reporting bureaus. That “inquiry” gets reported on your credit history. Too many inquiries in a short period of time signals that you may be getting low on your available credit and need more cash. Even though you might be interested in getting 10 percent off your first purchase for opening a new account, it looks different to a prospective creditor.
10. Don’t share credit (except with a spouse). It’s easy to tell someone that you’ll “co-sign” a credit card, student loan or a mortgage loan application, especially if it’s someone you’ve known for a long time. But it’s also easy to wind up in a situation where that friend or relative stops paying his or her bills (for whatever reason) and your credit will take a big hit. Once you’re a co-signer for a loan, you’re legally obligated to make those payments — whether or not you can afford them. So think carefully before you agree to co-sign a loan, and nip the problem of bad credit before it begins.
Topics: Credit | 1 Comment »
Fed Cuts Interest Rate Amid Global Stock Sell-Off and Fears of Recession
By cpa | January 22, 2008
The Federal Reserve, confronted with a global stock sell-off fanned by increased fears of a recession, slashed a key interest rate by three-quarters of a percentage point on Tuesday and indicated further rate cuts were likely.
The surprise reduction in the federal funds rate from 4.25 down to 3.5 percent marked the biggest funds rate cut on records going back to 1990.
Federal Reserve Chairman Ben Bernanke and his colleagues took the action after an emergency video conference on Monday night, a day when global markets had been pounded by rising concerns that weakness in the world’s largest economy was spreading worldwide.
Despite the Fed’s bold move, Wall Street plunged at the opening. The Dow Jones industrial average was down 311.99 points in the first hour of trading.
In a brief statement explaining its move, the Fed said that “appreciable downside risks to growth remain” and officials pledged to “act in a timely manner” to deal with the risks facing the economy. The action was approved on an 8-1 vote.
Analysts said the fact that the Fed did not wait until its meeting next week to cut rates underscored the seriousness of the situation.
Topics: STOCK | No Comments »
Fed’s call for stimulus may be too little, too late
By cpa | January 20, 2008
Markets have entered a panicky freefall, the common precursor to at least a temporary rebound. Mortgages reached 5.75 percent, approaching the 5.25 percent all-time lows of ’02-’04 from which rates vee’d up every time. Of course rates could go lower, even set a new record, but this is a bird-in-hand moment for refinancing.
This adventure began in August with the onset of The Crunch. Through September the markets were aware of a modest crisis, one of those odd, transient, Fed-bank-plumbing things. Only credit market insiders were worried, staggered by the magnitude of potential loss. By October even the Fed had relaxed. Concern renewed and spread on news of defaults and losses in November and consumer weakness in December, but financial market opinion, especially in stocks, was still cool about the whole thing.
In the last three weeks, painted plainly on stock market charts, everyone has waked to danger, and the hazard itself has grown. Once confined to mortgages and very strange “structured” IOUs, an economic pullback threatens defaults in a wide range of credits, the typical victims of an economic slowdown, hitting a badly impaired system.
After this week’s massive write-downs at Citiand Merrilland elsewhere (about $30 billion), the Wall Street Journal totes the aggregate write-down since August at $107 billion. Some say we are past halfway in the adventure, but credit people laugh bitterly at the suggestion.
New economic data are not as bad as the fear of what will come: December retail sales fell 0.4 percent; inflation numbers were OK, just above the 2 percent “core” bound; new-home construction indicators in December were awful; the Philly Fed’s index went to recession level (a big Thursday mover); and indices of the global economy are sinking. Then a pair of positive surprises: New claims for unemployment insurance are way down, and January consumer confidence rose from the December pit.
Topics: STOCK | No Comments »
Stocks Extend Plunge; Dow Falls 306
By cpa | January 18, 2008
Stocks Extend Plunge As Manufacturing Index Falls; Bond Insurers Fall Amid Fears of Losses
Wall Street extended its 2008 plunge Thursday, sending the Dow Jones industrials down 306 points and to their lowest level since last March after a regional Federal Reserve report showed a sharp and unexpected decline in manufacturing activity. Downgrades of key bond insurance companies added to the market’s black mood, with investors fearing an escalation of months of credit market problems.
The Dow lost nearly 2.5 percent, giving the index its worst three-day percentage decline since October 2002. The Standard & Poor’s 500, the index closely watched by market professionals, fell nearly 3 percent Thursday. The Dow, S&P 500 and the Nasdaq composite index have now given back all of the gains they achieved in 2007.
Topics: STOCK | No Comments »
How is a home’s value determined?
By cpa | January 16, 2008
You have several ways to determine the value of a home.An appraisal is a professional estimate of a property’s market value, based on recent sales of comparable properties, location, square footage and construction quality. This service varies in cost depending on the price of the home. On average, an appraisal costs about $300 for a $250,000 house.
A comparative market analysis is an informal estimate of market value performed by a real estate agent based on similar sales and property attributes. Most agents offer free analyses in the hopes of winning your business.
You also can get a comparable sales report for a fee from private companies that specialize in real estate data or find comparable sales information available on various real estate Internet sites.
Topics: Investing in Real Estate | No Comments »
Are taxes on second homes deductible?
By cpa | January 16, 2008
Mortgage interest and property taxes are deductible on a second home if you itemize. Check with your accountant or tax adviser for specifics.
Topics: Property Taxes | No Comments »
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