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If you are being told that the REO Market is history, think again. Take a look at this news story broacast late in 2008 about the who, what, when, where, and how of the next wave of loans that are about to recast and become the next Tsunmi of foreclosures. What is hard to believe is that this story ran at the end of 2008 and no one listened. This next batch of foreclosures is expected to be 25% larger than 2007 & 2008 combined!
Courtesy of CDAR/SRCAR
Relief appears imminent for thousands of Sacramento homeowners hit with state tax bills for mortgage debts forgiven in 2009. State lawmakers said Monday they plan to cancel the state tax obligations with a vote Thursday. Shannon Murphy, spokeswoman for Assembly Speaker John Pérez, D-Los Angeles, said legislation will go before the Assembly Revenue and Tax Committee today and the Appropriations Committee on Wednesday, and will receive a full vote Thursday. A similar Senate floor vote planned Thursday would send the bill immediately to Gov. Arnold Schwarzenegger, who has repeatedly stated his support. The new bill is similar to one he vetoed March 25. But this time it omits a part he opposed – financial penalties for businesses that routinely seek state tax refunds. Democrats removed the section despite their contention that some firms “fish” for refunds whether or not they’re owed. Monday, Schwarzenegger spokesman Mike Naple said the governor “hopes the Legislature fully addresses the concerns raised in previous versions of this bill.” The new movement means that Californians who got unexpected tax bills of $10,000 or more in recent weeks could soon be off the hook. Most are borrowers who received loan modifications last year or lost their houses in short sales, in which banks accept prices below what they’re owed. In both cases, lenders forgave some of the debts owed them, a process that exposes borrowers afterward to taxes. “We want to get it done before the (April 15) tax deadline,” said Alicia Trost, spokeswoman for Sen. President Pro Tem Darrell Steinberg, D-Sacramento. “We don’t want to have people jump through hoops.” Many across the state have anxiously waited for the state to resolve the issue before the tax filing deadline – or have filed extensions. Typically the state and federal governments view forgiven home loan debt as additional income and tax it. But both have backed off amid the housing crash. The federal government has suspended taxes on forgiven mortgage debt from 2007 through 2012. California suspended it for the 2007 and 2008 tax years. But disagreements over the business tax refunds stalled a bill extending it to 2009. The bill being considered this week, Senate Bill 401, would cancel state tax obligations for forgiven mortgage debt through the 2012 tax year. The Assembly planned Monday to rewrite SB 401 from a bill regarding tax shelters to one that aligns much of California’s tax law with that of the IRS. That includes canceling taxes on forgiven mortgage debt and on recipients of federal renewable energy grants. “We haven’t done a tax- conforming bill for four years, so it’s important to get that done,” Trost said Monday.
© Copyright The Sacramento Bee. All rights reserved.
Back on the market! Situated on an established tree lined street on an oversized corner lot with RV access and parking The Floor plan is open with large bedrooms and spacious kitchen. It also has a cozy fireplace. The back yard is fenced in with an in ground pool and covered patio. There’s also an attached 2 car garage… and tons of curb appeal.
Right off of Main Street in Corona….4 bedrooms and listed @ $229,000! Call us for details…951.279.9022
Sometimes, despite objections from the IRS, taxpayers get to write off the darndest things. Here are our favorites.
Okay, admit it: As you’ve struggled with your tax return, trying to come up with some extra deductions to pump up your refund or reduce what you owe Uncle Sam, you’ve taken a few flights of fancy. “Can I claim a deduction for all those blood donations at the Red Cross?” Nope. “How about a charitable contribution for all the time I donate to the church?” No, again. “Can I count the wedding gift for my boss’s daughter as an employee business expense?” Come on!
On the other hand, over the years your fellowtaxpayers have successfully claimed writeoffs for many things that most of us wouldn’t dream of taking. Here’s our list of what we think are among the most imaginative deductions allowed, ranging from cat food to a casualty loss for a vehicle totaled by a drunk driver:
1. A “significant other.” A man hired his live-in girlfriend to manage several of his rental properties. Her duties included finding furniture, overseeing repairs and running his personal household. The Tax Court let him deduct as a business expense $2,500 of the $9,000 he paid her but disallowed the cost of her housekeeping chores as nondeductible personal services.
2. A private airplane. Rather than drive five to seven hours to check on their rental condo or be tied to the only daily commercial flight available, a couple bought their own plane. The Tax Court allowed them to deduct their condo-related trips on the aircraft, including the cost of fuel and depreciation for the portion of time used for business-related purposes, even though these costs increased their overall rental loss on the condo.
3. Cat food. A couple who owned a junkyard were allowed to write off the cost of cat food they set out to attract wild cats. The feral felines did more than just eat. They also took care of snakes and rats on the property, making the place safer for customers. When the case reached the Tax Court, IRS lawyers conceded that the cost was deductible.
4. Moving the family pet. The IRS says if you are changing jobs and meet a couple of tests, you can deduct your moving expenses — including the cost of moving your dog, cat or other pet from your old residence to your new home. Your pet — be it a Pekingese or a python — is treated the same as your other personal effects.
5. Body oil. A pro bodybuilder used body oil to make his muscles glisten in the lights during his competitions. The Tax Court ruled that he could deduct the cost of the oil as a business expense. Lest it be seen as a softie, though, the court nixed deductions for buffalo meat and special vitamin supplements to enhance strength and muscle development.
6. Restitution in a fraud case. Sometimes, crime really does pay, or at least it does for tax purposes. A dentist’s wife kept his books and, unbeknownst to him, billed insurers for services he didn’t perform. Her scheme was uncovered and she was sentenced to 18 months in jail, but she wasn’t required to pay restitution. The dentist repaid the ill-gotten gains to settle the insurer’s civil claims against his practice. Since the repayment merely compensated the insurer for its loss and wasn’t punitive, the dentist was allowed to deduct it as a business expense. In fact, the loss created by the write-off triggered a refund for the dentist of taxes paid in prior years.
7. Wrecking a car while driving drunk. A reveler drank too much at a party and had the good sense to arrange a ride home. A few hours later, after slowing down in his revelry, he thought he was okay to drive. Unfortunately, the vehicle he was operating slid off the road and rolled over. The cops arrested him for drunken driving because his blood alcohol reading was just over the legal limit. His insurer refused to pay for the damage to his car because of the arrest. Yet the Tax Court let him deduct the cost of the damage as casualty loss because it said that he had tried to act reasonably. Had he driven straight home from the party with a high blood alcohol level and had the accident, the court declared that it would have nixed his deduction because his actions would have constituted gross negligence.
8. Free beer. In a novel promotion, a service-station owner gave his customers free beer in lieu of trading stamps. Proving that alcohol and gasoline do mix — for tax purposes — the Tax Court allowed the write-off as a business expense.
9. A business meeting in Bermuda. Bermuda is a great place to schedule a tax write-off because business conventions are deductible without having to show that there was a special reason for the meeting to be held there. Why? Bermuda and the U.S. exchange tax information under international agreement. Other countries in the Caribbean region qualify, too, including Barbados, Costa Rica, Dominica, the Dominican Republic, Grenada, Guyana, Honduras, Jamaica, St. Lucia, and Trinidad and Tobago. Meetings held in Canada, Mexico and all U.S. possessions also receive this favorable tax treatment. Attend a convention in Paris or Rome or Beijing, though, and there’s no deduction unless you can show it made as much sense to travel abroad as to head to Pittsburgh.
10. Baby-sitting fees. Fees paid to a sitter to enable a parent to get out of the house and do volunteer work for a charity are deductible as charitable contributions even though the money didn’t go directly to the charity, according to the Tax Court. The court expressly rejected a contrary IRS revenue ruling.
11. Landscaping. A sole proprietor who regularly met clients in his home office was allowed to deduct part of the costs of landscaping the property, on the grounds that it was a part of the home being used for business, according to the Tax Court. The court also allowed a deduction for part of the costs of lawn care and driveway repairs.
12. Swimming pool. A taxpayer with emphysema put in a pool after his doctor told him to develop an exercise regime. He swam in it twice a day and improved his breathing capacity. Turns out he swam in the pool more than his family did. The Tax Court allowed him to deduct the cost of the pool (to the extent the cost exceeded the amount it added to the value of the property) as a medical expense because its primary purpose was for medical care. Also, the cost of heating the pool, pool chemicals and a proportionate part of insuring the pool area are treated as medical expenses.
Courtesy of Kiplinger.com
This charming home is located in Corona off of McKinley/Hidden Valley. It is 4 bedrooms and 3 bathrooms, 1672 square feet. Call us for more information….will go fast!!
$250,000
Well it has been about a month and we have continued to view houses and have put offers on a few more houses. When we placed the offer on the previous house that I blogged about we didn’t hear a response back for two weeks! It would be nice to get a courtesy call to let us know another offer was accepted but sometimes these offices get really busy and those calls are just not made..BUT..I recieved an email from them informing us that the seller did send out an acceptance already and those buyers had already found a house. We were in the running again and they communicated with us some changes that would need to be made to the offer to stay competitive. Unfortunately, another buyer beat us out BUT we have been kept as a backup offer.
We also put an offer on a great house in the Canyon Ridge neighborhood of Riverside. This house is a short sale. Nikki & Matt liked the house but are not necessarily “crazy” about it so we gave a decent offer and are gonna see what happens. And with it being a short sale we will have plenty of time to “see” what happens considering they emailed me to let me know that the process will be approximately 4-6 months with hopefully a positive outcome (I am not holding my breath). Don’t get me wrong, not all short sales are long and complicated but each individual circumstance is different and it is imperative that you have a knowledgable Realtor that will guide you thru the steps and know when to move forward or pull away and move on to the next deal. I explained to Nikki & Matt that we could go ahead and submit the offer and use it as a back up plan but we needed to continue to actively search for properties. I put some pictures of the house below.
I want to introduce you all to my new buyers Nikki and Matt. Nikki has been a friend of mine since high school so this is especially exciting for me to be a part of this significant event! Nikki was pre-approved recently so we were able to start looking for houses. Nikki is a nurse at a hospital in San Bernandino County and Matt works in the Insurance biz in Riverside so they are open to living in Riverside and surrounding areas. We are shooting for the 200,000 price range, 3 bed/2 bath and a pool would be great!
We have looked at several houses some great, some not so great. I have encountered a lot of homes in this market that have actually been flipped by investors and they are wising up to the fact that the price needs to be extremely competitive considering all of the REO’s out there. A home like this would actually be perfect for Nikki and Matt considering that they do not want to have to do any repairs and would prefer something that in turnkey and move-in ready.
On Tuesday we walked in to a house that was adorable! Great curb appeal, nice neighborhood and the interior was completely renovated! We all loved it immediately. They didn’t say much after we left… I thought for sure they were going to jump on it! But as we all know it is pretty scary to move forward on such a large purchase. It’s a huge decision! In this market though you really need to jump in because most homes that are priced well and look like that have multiple offers within the first few days. Later that night Nikki called me and said they want to go ahead with the offer… I was so happy with their decision! We offered just over the asking price of 200,000 and are asking the seller to pay for closing costs ( which is pretty standard these days). There is a good chance there are other offers, possibly higher but we will see. One great thing the have going is the fact that they are very solid buyers. It’s very valuable when you are submitting offers to know that your client can go thru escrow with as little hiccups as possible.
Here’s a pic of my fabulous buyers:
And here is a pic of the house we are placing an offer on:
So stay tuned for all the updates!
Yours truly,
Evey Simon
What is the single most important component to any successful relationship in your business or personal life? TRUST of course! Without it we are opening ourselves up for an opportunity for disaster! By working with a close, highly reputable group of professionals, The Seif Team not only offers you our trustworthy services but we can also refer you to the people we trust when it comes to various services. We are very plugged in to our community and we are here for YOU! If you are in need of services to your home, office, vehicle, etc….let us know and we will send you in the right direction so that you are given excellent customer service by a reliable local vendor. Remember, it’s better to be SEIF than SORRY!
Speaking of trusting, local and excellent vendors I would like to give a shout out to the fabulous folks over at Triumph Carpet Care! We have been using them for simple cleanings all the way to almost irreversible carpet damage. They have done some real 360’s for us.
Triumph is offering a free trial offer and we would like to extend it to our valued clients. Click the link below to print the coupon and remember to let them know we sent you!
In light of all the Earthquakes happening around the world we wanted to pass along this helpful information on how to survive an Earthquake.
How to Survive an Earthquake — Tips From a Pro
by Dr. Mercola
Doug Copp is the rescue chief and disaster manager of the American Rescue Team International (ARTI). Here is his advice on how to survive an earthquake.
Almost everyone who simply ‘ducks and covers’ when buildings collapse ARE CRUSHED TO DEATH. People who get under objects, like desks or cars, are crushed.
Cats, dogs and babies often naturally curl up in the fetal position. You should too in an earthquake.
That position helps you survive in a smaller void. Get next to an object, next to a sofa or other large bulky object that will compress slightly but leave a void next to it.
Wooden buildings are the safest type of construction to be in during an earthquake. If a wooden building does collapse, large survival voids are created. Brick buildings will break into individual bricks, and will cause injuries but fewer squashed bodies than concrete slabs. Concrete slab buildings are the most dangerous during an earthquake.
If you are in bed during the night and an earthquake occurs, simply roll off the bed. A safe void will exist around the bed.
If an earthquake happens and you cannot easily escape by getting out the door or window, then lie down and curl up in the fetal position next to a sofa or large chair.
Almost everyone who gets under a doorway when buildings collapse is killed. If you stand under a doorway and the doorjamb falls forward or backward you will be crushed by the ceiling above. If the door jam falls sideways you will be cut in half by the doorway.
Never go to the stairs. The stairs swing separately from the main part of the building, so the stairs and remainder of the building continuously bump into each other until structural failure of the stairs takes place. The stairs are a likely part of the building to be damaged. Even if the stairs are not collapsed by the earthquake, they may collapse later when overloaded by fleeing people.
Get near the outer walls of buildings or outside of them if possible. It is much better to be near the outside of the building rather than the interior. The farther inside you are the greater the probability that your escape route will be blocked.
People inside of their vehicles can be crushed when the road above falls in an earthquake and crushes their vehicles. Get out and lie in the fetal position next to your vehicles.
Paper does not compact. Large voids are found surrounding stacks of paper.
Some agents will go to no end to close the deal. Here’s a little comic relief for you:
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