IRS Institutes Chines drywall Deduction

The Internal Revenue Service (IRS) is trying to provide some relief to homeowners plagued by corrosive Chinese drywall. Issued last week, Revenue Procedure 2010-36 enables affected taxpayers to treat damages from corrosive drywall installed in homes between 2001 and 2009 as a casualty loss and provides a ”safe harbor” formula for determining the amount of the loss.

Since late 2008, the US Consumer Products Safety Commission (CPSC) has received more than 3,500 reports from residents in 38 states, the District of Columbia, and Puerto Rico regarding defective Chinese drywall. Gases emitted from Chinese drywall are being blamed for significant property damage, including damage to HVAC systems, smoke detectors, electrical wiring, metal plumbing components, and other household appliances.

According to a statement from the IRS, Revenue Procedure 2010-36 provides the following relief:

• Individuals who pay to repair damage to their personal residences or household appliances resulting from corrosive drywall may treat the amount paid as a casualty loss in the year of payment.

• Taxpayers who have already filed their income tax return for the year of payment generally have three years to file an amended return and claim the deduction.

• The amount of a loss that may be claimed depends on whether the taxpayer has a pending claim for reimbursement (or intends to pursue reimbursement) of the loss through property insurance, litigation or otherwise.

• In cases where a taxpayer does not have a pending claim for reimbursement, the taxpayer may claim as a loss all unreimbursed amounts paid during the taxable year to repair damage to the taxpayer’s personal residence and household appliances resulting from corrosive drywall.

• If a taxpayer does have a pending claim (or intends to pursue reimbursement), a taxpayer may claim a loss for 75 percent of the unreimbursed amount paid during the taxable year to repair damage to the taxpayer’s personal residence and household appliances that resulted from corrosive drywall.

A taxpayer who has been fully reimbursed before filing a return for the year the loss was sustained may not claim a loss. A taxpayer who has a pending claim for reimbursement (or intends to pursue reimbursement) may have income or an additional deduction in subsequent taxable years depending on the actual amount of reimbursement received.

For purposes of this revenue procedure, the term “corrosive drywall” means drywall that is identified as problem drywall under the two step identification method published by the CPSC and the Department of Housing and Urban Development in their interim guidance dated January 28, 2010, the IRS said.

Steve Geving
Jones and Co Realty
239-573-1400
www.nextgenerationrealtygroup.com

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Real Estate Hacking and Plundering

On this day in 1572, there occurred the kind of event that proves that human nature
can outdo even the strangest ideas of governments and soap-opera writers. But to
understand it better, you should know the background.

First, there was this big important country. And, it had a controversial leader who was
still relatively young as leaders go, who took a lot of advice from a close relative. And
there was a lot of friction in the country – some thought one group was getting ahead
of the rest. Class began to battle class. Being the 16th Century, naturally everything
was couched in religious terms.

The country was France. The young leader was Charles IX. The advisor was his
mother Catherine de Medici. And the suspect class were the Huguenots, who were
Protestant (and coincidentally, seemed socially and economically “upwardly mobile”.)
(Okay soap opera fans – ready for phase Two??)

Charles (at the direction of mum ma’) offered the hand of his sister to Henry of
Navarre, a Huguenot idol. Naturally, the crème de la crème of Huguenot society
clamored to get on the wedding invitation list. After all, the marriage would seal
religious peace. Well – not quite!!

Before the bridal bouquet had faded, the real motive for the wedding became clear.
The King and his mom intended to use the guest list as a “hit list”. (The wedding
allowed them to smoke out every prominent Protestant in Paris.)
So at 2:00 a.m., on August 24th, armed with the guest list and lots of wine, the
King’s agents began hacking to death men, women, children and servants of the well
to do Huguenots. But religious fanaticism soon yielded to consumerism, as the mobs
began collecting the jewelry and possessions of the enemy class. Soon the lists were
discarded and anyone with anything worth taking was “a Huguenot”. When many of
the King’s friends were robbed and bludgeoned (or vice versa), many of those at court
begged his majesty to halt the slaughter. So, on August 25th, the King ordered his
subjects to cease and desist.

“Thanks for the suggestion, Your Majesty, but we self-styled “have nots” are having
too much fun hacking Huguenots and plundering the possessions of presumed
protestants!”

So the killing and robbing went on for over a week. The death toll was in the tens of
thousands. History called it the St. Bartholomew’s Day Massacre. Luckily, it was a
lesson to government never to set one class against another.

There are many things that I take from this story supplied by Art Cashing such as:

1. Don’t RSVP without thinking first and if you do, don’t wear jewlery
2. Watch out for the Realtors who are hacking and plundering.  Many are trying to change their economic class by taking advantage of hard working Americans who are faced with tough times.

We look forward to earning your trust and business.  Don’t hesitate contacting us, we are here to listen and give you options.  If you decide to sell your home, we would love the opportunity to assist. 

Steve Geving
Premiere Plus Realty Co
www.nextgenerationrealtygroup.com Serving Cape Coral, Fort Myers, Bonita Springs, Estero, Sanibel, Captiva, Lehigh Acres, Pine Island and Punta Gorda

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Real Estate Jokes

The dream of the older generation was to pay off a mortgage. The dream of today’s young families is to get one.

If you think no one cares you’re alive, miss a couple of house payments.

My buyers went through debt consolidation. Now they have only one bill they won’t pay.

If you want to know exactly where the property line is, just watch the neighbor cut the grass.

This country is great. It’s the only place where you can borrow money for a down payment, get a 1st and 2nd mortgage and call yourself a homeowner.

The trouble with owning a home is that no matter where you sit, you’re looking at something you should be doing.

All jokes aside.  Buying real estate in todays market place is a wise decision.  Please call or email us with any and all of your home buying and home selling needs.  We look forward to earning your trust and SW Florida real estate business.

Steve Geving
Premiere Plus Realty Co
www.nextgenerationrealtygroup.com

serving Cape Coral, Fort Myers, Bonita Springs, Estero, Sanibel, Captiva, Lehigh Acres, Pine Island and Punta Gorda

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Florida Closing Costs Increase

NEW YORK – Aug. 16, 2010 – A study released by Bankrate Inc. finds that the costs associated with buying a home are going up.

Bankrate’s 2010 Closing Costs Survey found that the average origination and title fees on a $200,000 mortgage this year totaled $3,741, up $1,009 from $2,732 in 2009.

In Florida, the news isn’t so bad. In 2009, closing costs on a $200,000 home sale averaged $3,368, rising $381 in 2010 to $3,987.

In the study’s geographical breakdown, New York leads the nation at an average closing cost fee of $5,623, with Texas, Utah, San Francisco, and Los Angeles rounding out the top five. Arkansas is the least expensive area with an average fee of $3,007, replacing Nevada, now No. 34, at the bottom of the list. The list has 52 slots, including Washington, D.C, and breaks California into a northern and southern division.

Florida, while still expensive for closing costs, improved its rank in 2010. In 2009, the state ranked at No. 3 for total closing costs; in 2010, it dropped to No. 12.

According to Bankrate.com, one of the reasons for a dramatic rise in average estimated closing costs is related to new regulations implemented in January 2010. When providing a potential borrower a Good Faith Estimate (GFE) of costs, regulations now require lenders to provide a Title and Closing Fee estimate within 10 percent of what the final cost will be; in previous years, estimates could fall lower on the spectrum without penalty for the lender.

“The big rise in average closing costs may scare some homebuyers, but it’s important to keep things in perspective,” says Greg McBride, CFA, senior financial analyst for Bankrate.com. “Increased regulation on lenders’ GFEs means more accurate estimates and less expenses popping up for consumers on the back end.”

For the study, researchers picked a ZIP code in some of the largest cities in each state and requested information on the closing costs for a $200,000 loan. They requested fees on a 30-year, fixed-rate mortgage for a borrower with a 20 percent downpayment and good credit to buy a single-family house. Bankrate’s survey includes lenders’ origination fees and title and settlement fees, but not taxes or prepaid items.

Steve Geving
Premiere Plus Realty Co
www.nextgenerationrealtygroup.com

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Wise and Inspiring Quotes

We make a living by what we get, but we make a life by what we give.

Winston Churchill

The aim of the wise is not to secure pleasure, but to avoid pain.

Aristotle

America will never be destroyed from the outside.  If we falter and lose our freedoms, it will be because we destroyed ourselves.

Abraham Lincoln

I succeeded because I willed it; I never hesitated.

Bonaparte Napoleon

A life spent making mistakes is not only more honorable, but more useful than a life spent doing nothing.

George Bernard Shaw

Have a great and productive day.

Steve Geving
Premiere Plus Realty Co
www.nextgenerationrealtygroup.com

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