Kirkwood Neighbors

Help for the distressed homeowners started with the 2009 tax filing season. These three options take away the previously inflexibility of the IRS as far as negotiation with homeowners.  IF you qualify for one or more of these you could obtain serious tax relief from the IRS.  See what I mean?  Hopefully as diligent Realtors we are advising our clients to seek the services of a CPA, tax attorney, etc, before making decisions that could affect their property and liability, as this sounds hopeful for many.

"Internal Revenue Service News Release (January 6, 2009) The Internal Revenue Service today kicked off the 2009 tax filing season by announcing a number of new steps to help financially distressed taxpayers maximize their refunds and speed payments while providing additional help to people struggling to meet their tax obligations. Among the areas where the IRS can provide assistance:

Postponement of Collection Actions: IRS employees will have greater authority to suspend collection actions in certain hardship cases where taxpayers are unable to pay. This includes instances when the taxpayer has recently lost a job, is relying solely on Social Security or welfare income or is facing devastating illness or significant medical bills. If an individual has recently encountered this type of financial problem, IRS assistors may be able to suspend collection without documentation to minimize burden on the taxpayer. (Personally I have clients that have received this benefit...so it's worth the time and trouble to send in your documentation if you fit this criteria for postponement.)

Added Flexibility for Missed Payments: The IRS is allowing more flexibility for previously compliant individuals in existing Installment Agreements who have difficulty making payments because of a job loss or other financial hardship. The IRS may allow a skipped payment or a reduced monthly payment amount without automatically suspending the Installment Agreement. Taxpayers in a difficult financial situation should contact the IRS. (Personally I know people who have exercised this option as well, with no berating or negativity on the phone by the IRS, they are a kinder, gentler government agency these days.)

Additional Review for Offers in Compromise on Home Values: An Offer in Compromise (OIC), an agreement between a taxpayer and the IRS that settles the taxpayer’s tax debt for less than the full amount owed, may be a viable option for taxpayers experiencing economic difficulties. However, the equity taxpayers have in real property can be a barrier to an OIC being accepted. (This can be a huge benefit to taxpayers who made lots of money in previous years and didn't have the cash left to pay the tax.  Realtors, loan agents, independent contractors and others on commission income are being assisted with this provision.) 

The NEW Kinder, gentler IRS is doing it's part to ease the burdens this economy has thrust upon us.  Hopefully none of you need this assistance, but it's nice to know it's here for you or any of your clients that could benefit from the provisions.  There are more, so check out the IRS website...for details.  http://www.irs.gov/newsroom/article/0,,id=202244,00.html

The Cost of going Green (Sustainable) just keeps getting more affordable.  Did you know that per the IRS news release on 10/28/09 "Energy-Saving Steps This Year May Result in Tax Savings Next Year".  The notice goes on to say: 

"Home Energy Credits Updated 10/28/09 The Internal Revenue Service today reminded individual and business taxpayers that many energy-saving steps taken this year may result in bigger tax savings next year. The recently enacted American Recovery and Reinvestment Act (ARRA) of 2009 contained a number of either new or expanded tax benefits on expenditures to reduce energy use or create new energy sources.

Tax Credits for Home Energy Efficiency Improvements Increase Homeowners can get bigger tax credits for making energy efficiency improvements or installing alternative energy equipment. “These new, expanded credits encourage homeowners to make improvements that will make their homes more energy efficient,” said IRS Commissioner Doug Shulman. “People can improve their homes and save money over the long run.” ARRA provides for a uniform credit of 30 percent of the cost of qualifying improvements up to $1,500, such as adding insulation, energy-efficient exterior windows, and energy-efficient heating and air conditioning systems. The new law also raised the limit on the amount that can be claimed for improvements placed in service during 2009 and 2010 to $1,500, instead of the $500 lifetime limit under the old law. In addition, the new law has increased the energy efficiency standards for building insulation, exterior windows, doors, and skylights, certain central air conditioners, and natural gas, propane or oil water heaters placed in service after Feb. 17, 2009.

The new law also eliminates the cap on the 30 percent tax credit for alternative energy equipment, such as solar water heaters, geothermal heat pumps and small wind turbines, installed in a home. The cap generally has been eliminated for these improvements beginning in the 2009 tax year. The IRS today issued Notice 2009-41, which explains the effects of this change. "

I've been wanting that Toto Toilet, new 90% efficient furnace and SOLAR, maybe now is the time to look into the REAL cost of purchasing such items.  The tax break can make it attactive and doable in the near future.  Let's give it a look, shall we? For more information go to the IRS website   http://www.irs.gov/newsroom/article/0,,id=206869,00.html

• Police in Wichita, Kansas arrested a 22 year old man at an airport hotel after he tried to pass two counterfeit $16 bills
• The Chico, California City Council enacted a ban on nuclear weapons, setting a $500 fine for anyone detonating one within city limits
• A bus carrying five passengers was hit by a car in St. Louis, but by the time police arrived on the scene, 14 pedestrians had boarded the bus and began to complain of whiplash, injuries and back pain
• When two service station attendants in Iona, Michigan refused to hand over the cash to an intoxicated robber, the man threatened to call the police. They still refused, so the robber called the police and was arrested

Statistics

• The city with the most Rolls Royces per capita: Hong Kong
• Men can read smaller print than women; women can hear better
• The amount American Airlines saved in 1987 by eliminating one olive from each salad served in first class: $40,000
• State with the highest percentage of people who walk to work: Alaska
• Percentage of Africa that is wilderness: 28%
• Percentage of North America that is wilderness: 38%
• Percentage of American men who say they would marry the same women if they had it to do all over again: 80%
• Percentage of American women who say they would marry the same men if they had it to do all over again: 50%
• The cost of raising a medium size dog to the age of eleven: $6,400
• Average number of people airborne over the US any given hour: 61,000
• Percentage of Americans who have visited Disneyland/world: 70%

Thanks to:
Rex Lock & Safe
3511 Clayton Road, Concord, ca
1-800-901-LOCK

Bode & Bode Lock & Safe
1215 21st Street, Sacramento, ca
916-443-1967

Tracy Lock & Safe
1020 B Street, Tracy, ca
209-839-6557

The tale of a Short Sale - Sold by a Realtor who believes in Staging

Series...So this is the Bathroom!

The Short Sale bathroom - drab to potential fab

This is a short sale listing I took this past month.  I know the lender will not give credit for repairs or clean up.  This one needs both, and more.  The a/c and dishwasher don't work, the disposal leaks.  The walls are dinged, corners chipped and the paint is dingy, carpet stained, pet odor and stains (eek clothes pins provided at the door) and it's dirty, debri, cobwebs, etc.

BUT I espouse to my clients, my collegues, everyone I have talked to in the last almost 20 years that EVERY home needs to be staged.  Perhaps the distressed properties need it more than any others.  SO, how much money am I the Realtor willing to invest in a property where the short sale may not be approved, I may not get any reimbursement ? (I'm going to create a presentation piece for the lender to show the results the staging brought them and see if they'll relent, I figure it's worth a try and that's another blog post.)

SO, having said all that This is the bathroom.  The mirror is delaminated and ordinarily we would probably paint the cabinets, polish the cabinets, and the room would it look better painted, yes?  But does staging better make it look like you MIGHT want to live here? 

More on the cost of all this and the other things in the rest of this series.