Moving Season: Book Early & Be Prepared

The van line community lost a lot of drivers during the economic downturn, and that is creating a backlog this summer as van lines are unable to keep up with demand. In some cases, families are being put on wait lists for up to two months.

That can be a pretty stressful situation ... especially if a deal can fall through because the homeowners weren't able to vacate by close date.

To ensure that you have a stress-free move, and you have a stress-free closing, take our advice:
• Get quotes now. Know options so you are ready to book when you receive an offer.
• Set a date. Schedule with chosen van line as soon as possible.
• Be prepared. See the below tips to get ahead of the game and tie up loose ends.

Create a Household Inventory
One of the great benefit’s when planning a move is the opportunity it provides to take stock of the items you have acquired over the years.

This can be done by creating a household inventory, a detailed descriptive list of household goods showing the number and condition of each item.

In addition to ensuring all belongings arrive at their destination, the inventory list is invaluable in the event of natural disasters, fire or theft.

An up to date, accurate record of all important documents and household goods goes a long way to providing peace of mind on moving day – and beyond.

Important Documents
Get all critical documents together and have copies made. Keep all original documents with you throughout the move, including:
• Birth Certificates
• Marriage Licenses
• Social Security Cards
• Insurance Policies & Wills
• Deeds & Titles
• Stock & Bonds Certificates
• Household inventory list

Record Belongings
Make a record of your belongings. Use a video camera and a digital camera to create an accurate visual record of goods and their condition.
• Record total paid for an item and where it was purchased (this is where saving receipts comes in handy).
• Record serial numbers and brand names for all electronics.
• Record any distinct features regarding the items being recorded.
• Record expensive pieces of clothing, kitchen items, tools, and anything else of value.
• Make copies of your inventory list when completed. And, give copies to your insurance agent.
This inventory can be used in the event of a fire or other disaster. Serial numbers, values, where they were purchased, and photos of said items can help you in the event of a recovery need.
Save a copy in a secure location online, or give to a friend or relative in case you lose the original.
Be sure to keep the originals with you on moving day with your other important papers.
... And Don't Forget...

Houseplants
Decide what you want to do with houseplants. You can either move them yourself (look into rules and regulations regarding transport of houseplants across state lines first!) or you can give them as gifts to friends or family.

Pets
Take your pets to the vet and make sure that all of their shots are up to date. Carry all appropriate documentation with you and your pets on move day. Ensure that rabies tags are attached to your pet’s collars along with contact information in the event your pet gets away from you in unfamiliar surroundings.

Retrieve & Return
Retrieve your items from the cleaners and from storage. Return all library books and rented movies.

Return items you have borrowed and collect items that have been borrowed. Get items from safety deposit boxes and close accounts and arrange for new accounts at your destination.

Source: www.moveadvocate.com

Ten Facts about Mortgage Debt Forgiveness

IRS TAX TIP 2010-44

If your mortgage debt is partly or entirely forgiven during tax years 2007 through 2012, you may be able to claim special tax relief and exclude the debt forgiven from your income. Here are 10 facts the IRS wants you to know about Mortgage Debt Forgiveness.

1. Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence.

2. The limit is $1 million for a married person filing a separate return.

3. You may exclude debt reduced through mortgage restructuring, as well as mortgage debt forgiven in a foreclosure.

4. To qualify, the debt must have been used to buy, build or substantially improve your principal residence and be secured by that residence.

5. Refinanced debt proceeds used for the purpose of substantially improving your principal residence also qualify for the exclusion.

6. Proceeds of refinanced debt used for other purposes – for example, to pay off credit card debt – do not qualify for the exclusion.

7. If you qualify, claim the special exclusion by filling out Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and attach it to your federal income tax return for the tax year in which the qualified debt was forgiven.

8. Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the tax relief provision. In some cases, however, other tax relief provisions – such as insolvency – may be applicable. IRS Form 982 provides more details about these provisions.

9. If your debt is reduced or eliminated you normally will receive a year-end statement, Form 1099-C, Cancellation of Debt, from your lender. By law, this form must show the amount of debt forgiven and the fair market value of any property foreclosed.

10. Examine the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. You should pay particular attention to the amount of debt forgiven in Box 2 as well as the value listed for your home in Box 7.

For more information about the Mortgage Forgiveness Debt Relief Act of 2007, visit IRS.gov. A good resource is IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions and Abandonments. Taxpayers may obtain a copy of this publication and Form 982 either by downloading them from IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Source: www.irs.gov

This Month in Real Estate, January 2010

Each month, This Month in Real Estate provides expert opinion and analysis on real estate trends across the nation. The aim of the consumer-oriented segments is to provide real information on real estate.

http://www.youtube.com/watch?v=86KKIRA4gXg

Mortgage Interest Rates Expected to Rise in Spring

An expected rise in mortgage interest rates beginning in April may make it more difficult for some to qualify for a mortgage, or to qualify for the amount you need. Existing homeowners who want to take advantage of, and qualify for, the home buyer tax credit do not need to sell their current home right away, or at all. If you are financially ready, this is a great time to buy a home. Click the link or copy and paste it into your browser to read the article about interest rates.

http://www.realtor.org/RMODaily.nsf/pages/News2010011102?OpenDocument

Pre-Auction Open House in Parker

Pre-Auction Open House Sunday, January 10 11 AM - 4 PM at 11202 Glenmoor Circle in Parker. This is a potentially awesome opportunity to own a home near Canterbury Golf in Parker for pennies on the dollar. 2640 square feet, 3 or 4 bedroom, loft, 3 bath, full unfinished basement, backs to open space with horses grazing... in the pasture behind the property. Starting bid is $149,000. Non-distress comps range from $310k - $379k. For property details, click the link. Could use some updating, but this property is clean and move in ready.

http://tinyurl.com/y9g7wne

TAX CREDIT GUIDLINES

The IRS has spelled out guidelines for eligibility for the home buyer credit when co-borrowers purchase a property.

If you are single and buy a first-time home as a part owner, you can claim the full credit as long as you qualify for the credit.

For example: If you are a single person who qualifies for the credit and you have a co-signer or co-owner, such as a parent who does not qualify, you can still claim 100% of the credit says the IRS.

The IRS says the parent doesn’t qualify for any portion of the credit, but if the child hasn’t owned a home during the three years preceding the current purchase and can qualify based on income, he or she can be allocated the entire $8,000 credit.

When unmarried individuals co-purchase a home and only one of them is eligible for the credit, then the full $8,000 can be allocated to the eligible buyer.

Source: Internal Revenue Service www.irs.gov