This is a summary of the tax changes in the Baucus-Reid substitute amendment to H.R. 3548:

“(1) The credit would sunset on Apr. 30, 2010, but for those who enter into a written binding contract before May 1, 2010 (to close on the purchase of a principal residence before July 1, 2010), the credit would sunset on June 30, 2010.

“(2) The credit would only be available for homes with a purchase price of $800,000 or less (currently there’s no price ceiling).

“(3) The credit would not be restricted to first-time homebuyers. It could be claimed by taxpayers who have owned and used the same residence as their principal residences for any 5 consecutive-year period during the 8-year period ending on the date of the purchase of the subsequent principal residence (i.e., the one that would qualify them for a credit). However, the homebuyer credit for these “long-time residents” could not exceed $6,500.

“(4) The modified AGI-based phaseout would be liberalized. The credit would begin to phase out for individuals with modified AGI above $125,000 ($225,000 for joint filers); currently the phaseout begins at $75,000 and $150,000 respectively.

•  
  • “To help combat abuse of the homebuyer credit (see Newsstand e-mail 10/23/09), the amendment would include in IRS’s mathematical error authority any omission of the homebuyer credit recapture (this would apply for homes bought on or after the enactment date). This authority allows IRS to summarily assess mathematical or clerical errors without conducting an audit. Additionally, the credit would not be available to taxpayers who can be claimed as a dependent, or to those under age 18. New documentation requirements also would apply along with prohibitions against certain intrafamily purchases.
  • “The homebuyer-credit recapture requirement would be waived for military personnel, including members of the Foreign Service and intelligence community, forced to sell as a result of an official extended duty of service. Additionally, military personnel serving outside the U.S. for at least 90 days in 2009 or 2010 would have one additional year to qualify for the homebuyer credit. “

As explained by Jim Turlington, CPA with Turlington, Reeves & Richard, PLLC – 16360 Park Ten Place, Suite 340, Houston, Texas 77084 – Office (281) 398-5661 Ext. 203 – Fax (281) 398-7409

2010 Census to Begin

THIS IS PRETTY BASIC ADVICE; BUT, IN TODAY’S TIMES, I CAN SEE IT COULD LEAVE AN OPEN DOOR FOR PASSING OUT YOUR PRIVATE INFORMATION.

WARNING: 2010 Census Cautions from the Better Business Bureau

Be Cautious About Giving Info to Census Workers by Susan Johnson

With the U.S. Census process beginning, the Better Business Bureau (BBB) advises people to be cooperative, but cautious, so as not to become a victim of fraud or identity theft. The first phase of the 2010 U.S. Census is under way as workers have begun verifying the addresses of households across the country. Eventually, more than 140,000 U.S. Census workers will count every person in the United States and will gather information about every person living at each address including name, age, gender, race, and other relevant data.

The big question is – how do you tell the difference between a U.S. Census
worker and a con artist? BBB offers the following advice:

If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice. Ask to see their identification and their badge before answering their questions. However, you should never invite anyone you don’t know into your home.

Census workers are currently only knocking on doors to verify address information. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the U.S. > Census.

REMEMBER, NO MATTER WHAT THEY ASK, YOU REALLY ONLY NEED TO TELL THEM HOW MANY PEOPLE LIVE AT YOUR ADDRESS.

While the Census Bureau might ask for basic financial information, such as a salary range, YOU DON’T HAVE TO ANSWER ANYTHING AT ALL ABOUT YOUR FINANCIAL SITUATION. The Census Bureau will not ask for Social Security, bank account, or credit card numbers, nor will employees solicit donations. Any one asking for that information is NOT with the Census Bureau.

AND REMEMBER, THE CENSUS BUREAU HAS DECIDED NOT TO WORK WITH ACORN ON GATHERING THIS INFORMATION.. No Acorn worker should approach you saying he/she is with the Census Bureau.

Eventually, Census workers may contact you by telephone, mail, or in person at home. However, the Census Bureau will not contact you by Email, so be on the lookout for Email scams impersonating the Census.

Never click on a link or open any attachments in an Email that are
supposedly from the U.S. Census Bureau.

For more advice on avoiding identity theft and fraud, visit www.bbb.org

PLEASE SHARE THIS INFO WITH FAMILY AND FRIENDS.

I found this information sent to me by my Texas Association of Realtors Board and wanted to share…

“UniCare, one of the largest providers of health insurance in Texas, is pulling out of our state. UniCare has made arrangements with Blue Cross Blue Shield of Texas to service Texas clients. All Texas residents currently insured under UniCare individual health/major medical policies can convert their policies to similar plans offered by Blue Cross Blue Shield of Texas on a guaranteed-acceptance basis, but only until Dec. 1, 2009. After Dec. 1, all transfer requests will be handled as new business and will be subject to full underwriting, which may penalize or disqualify some applicants for pre-existing conditions. “

If you are unsure as to how to convert your policy, please comment and I will do my best to assist.

Christi Borden is newly elected director for HAR

HOUSTON, TX – October 5, 2009 – Christi Borden, Realtor with Prudential Gary Greene, Realtors, was elected to the Houston Association of Realtors (HAR) Board of Directors for 2010. Borden was elected for a two-year term, which is effective on January 10, 2010. She was elected in the category of largest firms.

Borden and other elected board members and officers will be installed on Wednesday, December 16, during the annual REALTOR® Celebration at the Hilton Americas Hotel in downtown Houston.

One of her goals as a director is to meet with the managers and brokers of the largest firms in the community and find out how she can support their needs. “Also, one of my main goals is to advance the level of professionalism in real estate and raise the bar in terms of training and brokerage oversight of agents,” Borden said. She is excited to represent the Katy area, one of the hottest real estate markets in Houston. She looks forward to bringing the unique concerns of the area to HAR and the leadership board.

Borden joined Prudential Gary Greene, Realtors in their Katy office five and half years ago. Enthusiastic about working in the Katy office, Borden loves the professional culture of Prudential Gary Greene. “We have an incredible work environment and team support that makes it a joy because real estate can be stressful. It’s great to have that team support behind you. I’m working with collaborators instead of competitors,” she said.

As a Certified Relocation Professional, Borden enjoys acting as the conduit for information and resources to her clients and getting them settled into the Katy community. She and her family lived abroad before she was a Realtor, and she is aware of the special stresses and needs of relocation families.

Borden is also a Certified International Property Specialist (CIPS) and is trained to work with incoming and outgoing buyers and sellers. Her other designations include GRI, ABR, TRC and ALHS. She also begins her second, three-year term on the Board of Directors of Texas Association of Realtors.

Active in her community, Borden is involved in Prudential Gary Greene’s sponsorship of Sunshine Kids. In the Katy office, Borden and other staffers are preparing the fourth annual Katy Sunshine Fest, which raised more than $30,000 in 2009. She also supports Susan G. Komen Race for the Cure®, and she is a supporter of the Krause Center in Katy.

ABOUT PRUDENTIAL GARY GREENE, REALTORS

Independently owned and operated, Prudential Gary Greene, Realtors became an affiliate of the Prudential Real Estate Network in 2000. Since then, it has earned a host of honors, including, most recently, receiving the company’s 10th consecutive Gibraltar Circle Award, which recognizes the top 50 companies in the Prudential Real Estate Network. Prudential Gary Greene, Realtors ranks ninth in Gross Commission Income in the Prudential Real Estate Network and is ranked #42 nationally by Real Trends in the Top 500 Brokers by closed transactions in 2008. In 2008, Prudential Gary Greene, Realtors took more listings, sold more listings, and closed more transactions than any other company in Houston. Prudential Gary Greene, Realtors was founded in Houston in 1963 as Gary Greene, Realtors. www.GaryGreene.com.

I ran across an interesting list of the best items to purchase during a recession. Of course, this article is speaking to consumers that might actually have access to cash at this time and does not suggest purchasing any of these items on already extended credit. The online article in www.Time.com presented the list but the comments are my own:

Fancy Threads: A relative bargain at this time compared to year’s past as Designer’s are finding themselves with abundant inventory and lackluster high end clientele orders. Web sites like www.Gilt.com offer many designer items (clothing, purses, and jewelry) at much lower than retail prices. This is a member’s only site and sales are offered on regularly scheduled basis. This allows the designer to knock off prices online without negatively affecting the retail value on the showroom floor. (Plus, you get a $ 25 referral fee each time one of your referrals makes a purchase… great deals and rewards, too.)

Computer Memory: You will find pretty good deals on all computers and computer products at this time. Since it is relatively inexpensive to purchase a new computer, the costs associated with upgrades are lower at this time. However, with the fast pace of technological advances… if your laptop is more than a few years old, you will be better served comparing the costs of upgrades versus new.

Cameras – I love taking photos and anyone with a passion has to feed this passion with great gear. Prices for great quality digital SLR cameras are coming down so fast that I frankly do not see any reason to use point and shoot – except for having it handy for quick party shots or when you do not want to lug around the much heavier SLR. The new cameras are so intuitive that almost anyone can handle them yet they have manual functionality for the shooter who understands what he is shooting. I am a Nikon fan but there are many different and terrific makers to choose from. Check with your local camera store (not necessarily the big box department stores as their staff may not have the experience and brand knowledge necessary to help you find the right equipment for your level of expertise and shooting style).

Stuff for your House: I recently met with the owners of www.DirectBuyHouston.com who stated that their business is usually recession proof. Why? Because today, many of us stay home for a “Staycation” or decide to stay put as opposed to move, and our home becomes a priority. This time of year is a great time to purchase furnishings. Check first with the big name stores but also visit the little guy because he may just have the perfect, unique item you are looking for and at a great price, too. Don’t forget the discount stores like The Dump and Brandon’s… they have an ever changing showroom and offer great deals if they have what you want when you want it. Google “discount furniture Houston” and you will be amazed at what you find.

Lobsters: Funny, don’t know a thing about this one except that I love Lobster. Recently,HEB had lobster tails for $ 5.99 per lb. and they steamed them while I shopped. It does not get any better than that.

New Car: It is a no-brainer that cars are a good bargain right now – even with the makers that have not been bailed out by our Government. This is certainly not the time to pay “sticker price” for any vehicle. I would research your dream car, figure out the base costs and make an offer that will compensate the dealer fairly. I usually go straight to the Fleet Manager and avoid the floor guys (sorry guys and gals) because I want to avoid “the pitch”. I am in sales and hate nothing more than a sales pitch. The more you research and know before you go, the better your deal will be. But whatever you are offered in the deal…get it in writing!

Travel: Ahhh, my favorite topic. Great travel deals are everywhere and truly benefit those with flexibility to leave on short notice. Flights can be researched through a variety of web sites but I like www.Kayak.com because it will watch the fare for you and send you notice of up or downward pricing. Another great way to go is to cruise just about anywhere. My office mates and I are taking a 7 day Carnival Cruise in a few weeks and we paid barely over $ 600 total for 7 days… Do the math, folks… no air because we drive to Galveston, all food, room, entertainment (except our 2 excursions) and all the relaxation we can stand for less than $ 100 bucks a day. WOW! Try to get that deal anywhere on land.

Country Club Memberships: Private clubs are a luxury that has been hit hard with the recession and many are seeking new members with terrific incentives. Check out your local country club and ask for discounts… all they can say is NO. Of course I am like Groucho Marx… I may not want to join any club that would have meJ.

Houses: Glad to see this on the list as this is my area of expertise. First let me state that real estate is truly “local”. Before I suggest you go out and purchase property, you really need to check with a Realtor in your area. That said, our housing market is improving all across the nation and many areas have already bottomed out and are on the incline. Foreclosures are a good buy in some areas but not so in others (due to too many factors to illustrate here.) Again, check with a professional Realtor who knows the area, the market and the ramifications of purchasing a home at this time. If you are a first time home buyer… time is running short on the Tax Credit (although I truly hope our Senators will extend this fantastic incentive) so you may get another chance. Now truly is a terrific time to buy.

Stocks: Watch what the big guys do… Warren Buffett only buys when stocks are cheap and only sells when they are high. Sounds easy but when stocks are cheap (like now) most of us are still licking our wounds from recent losses and are afraid to purchase even more stocks so we tend to get conservative and put money in low yield mutual funds, CD’s, etc. Not really all that much better than putting it in their mattresses so it might just be a good time to take our heads out of the sand and dip our toes back in the stock market.

What would you add to this list?

Dear Friends and Family,

Our Prudential Gary Greene Katy office always takes on a project for National Volunteer Day. This year we are joining thousands of other volunteers in a race for life.

I recently accepted the challenge to raise a mere $100.00 funds to support the 2009 Komen Houston Race for the Cure® being held on October 3rd in downtown Houston.  For those that know me and my pitiful ankle (broken or actually “ruined” according to the Ortho four years ago and still recovering from 2 surgeries) understand if this turns into a “Hobble for the Cure” but it will be worth it.

Please join me in the fight against breast cancer by pledging your support in the Race. Your tax-deductible contribution will fund local innovative outreach, awareness and treatment programs for the medically underserved in the greater Houston community as well as national cutting-edge breast cancer research.  

Please click here to support my participation.  I truly appreciate your support and will keep you posted on my progress. I plan to post photos and a short blog about the actual event.

I am so proud of our Pink Brigade here at Prudential Gary Greene, Realtors in Katy, TX. We are all racing or walking in honor of Rosemay Derstler’s daughter Nicole and sister Linda, both undergoing treatment for breast cancer as well as Phylis and April who are living as proof of the cure.

Thank you for your generosity.  Imagine Life Without Breast Cancer.

Sincerely,

Christi Borden

Mayonnaise Jar & Two Beers…
 
When things in your life seem almost too much to handle, when 24 hours in a day are not enough, remember the mayonnaise jar and the 2 beers.

A professor stood before his philosophy class and had some items in front of him. When the class began, he wordlessly picked up a very large and empty mayonnaise jar and proceeded to fill it with golf balls. 
He then asked the students if the jar was full. They agreed that it was..

The professor then picked up a box of pebbles and poured them into the jar. He shook the jar lightly. 
The pebbles rolled into the open areas between the golf balls. He then asked the students again if the jar was full. They agreed it was.

The professor next picked up a box of sand and poured it into the jar. Of course, the sand filled up everything else. He asked once more if the jar was full.The students responded with a unanimous ‘ yes. ‘ 

The professor then produced two Beers from under the table and poured the entire contents into the jar effectively filling the empty space between the sand. The students laughed.’ Now, ‘ said the professor as the laughter subsided, ‘ I want you to recognize that this jar represents your life.
 
The golf balls are the important things—your family, your children, your health, your friends and your favorite passions—and if everything else was lost and only they remained, your life would still be full.

The pebbles are the other things that matter like your job, your house and your car..

The sand is everything else—the small stuff. ’If you put the sand into the jar first, ‘ he continued, ‘ there is no room for the pebbles or the golf balls.
 
The same goes for life. If you spend all your time and energy on the small stuff you will never have room for the things that are important to you. Pay attention to the things that are critical to your happiness. Spend time with your children. Spend time with your parents. Visit with grandparents. Take time to get medical checkups. Take your spouse out to dinner. Play another 18. There will always be time to clean the house and fix the disposal.
 
Take care of the golf balls first—the things that really matter. Set your priorities. The rest is just sand.
 
One of the students raised her hand and inquired what the Beer represented. The professor smiled and said, ‘ I ‘ m glad you asked. ‘ 

The Beer just shows you that no matter how full your life may seem, there ‘ s always room for a couple of Beers with a friend.

Unless you have been living under a rock, you may have heard that the First Time Home Buyer’s Tax Credit is due to expire at the end of November and along with that, the incentive for new buyers to enter the real estate market. There are some that say this is simply a boondoggle for buyers who would have bought anyway without the monetary bonus. I beg to differ… in my opinion as a “boots on the ground” Realtor working with first time home buyers who were happy renters and only decided to purchase a home with the help and benefit of this incentive… hey, $ 8500 goes a long way toward helping with the down payment, new furnishings or paying the mover.

There are several versions of this bill before our legislators at the moment seeking an extension … which is supported by the National Association of Realtors. I know what you are thinking and yes, that does sounds a bit self-serving for Realtors to support a bill that will help sell real estate. Very much like if GM or Chrysler lent its support for the extension of the infamous Cash for Clunkers program.  But it goes a bit deeper than simply trying to protect real estate transactions. Another version not only seeks an extension but also broadens the coverage to any buyer – which would be a boon to the move-up segment of our society but may prove too costly to pass. Personally, I would love this version to pass but at a minimum, the first time home buyer is the consumer who will benefit the most from an extension of the existing plan.

According to the NY Times Online in a recent article released on September 15th,

“Mark Zandi, chief economist of Moody’s Economy.com, favors expanding the credit to all home buyers, even investors, into next summer. “The risks of not doing something like this are too great,” he said. “I don’t think the coast is clear.” James Glassman of JPMorgan Chase echoed those views but said he favored continuing to restrict the credit to first-time buyers.

On the other side of the issue is the Tax Policy Center, a joint venture of the Brookings Institution and the Urban Institute. It labeled the original credit as one of the worst provisions of the stimulus package, on the grounds that the money is a bonus for people who would buy a house anyway. The center has an even dimmer view of extending the credit to all buyers. “Is this the best way to spend money we don’t have?” asked senior fellow Roberton Williams.

Dean Baker of the Center for Economic and Policy Research called the credit “a questionable redistributive policy” from renters to home buyers, but said that he used it himself when he bought a house.”

Our nation’s economic health has been and will always be driven in part by our housing market. I agree with Mr. Zandi that while the costs for the credit is high, the cost of doing nothing is so much higher. We are sitting on the edge of recovery and this extension will help push us further toward the brighter future that exists around the corner. Be sure and drop an email or note to your legislator to let them know how important this issue is to your nation’s recovery.

If you would like more information about who qualifies for the current program, click here to visit my previous post “Understanding the First Time Home Buyer’s Tax Credit Before it is Too Late!”

I ran across a great article in Builders magazine about recent home builder activity in our area highlighting both a start up builder and an oldie but goodie that has recently reorganized with local owners and local financing and how they are finding success in our master planned communities… all things point to postivie news for our area.

“…The startup, J. Kyle Homes, expects to complete construction of its first model by November at Park Place, a new neighborhood within Cinco Ranch, Houston’s top-selling master-planned community. Jason Hammonds, J. Kyle Homes’ president (Kyle is his middle name), says that market conditions have reduced lot prices to where his company can now get into a premium location that would have been out of its reach two years ago….”

While over 20 builders (Royce, Kimball, David Powers, etc.” have shuttered their doors, some abandoning lots and inventry, homes are still being built and sold everyday in our area. In fact, several of our communities and developers have received national recognition for increased sales in what has been considered a down-turn market.

“…Newmark Homes has already closed its first homes since it repurchased its brand from TOUSA on June 15. Newmark has operated in the Houston market for 26 years, but a clean break from TOUSA—the Florida-based builder that is winding down its business under Chapter 11 protection—is allowing this builder “to hit the reset button,” observes Jarvis. Indeed, Newmark’s president, Mike Moody, speaks of 2009 as his company’s “startup year…”

Newmark is currently building in only the strongest of master-planned communities: Cinco Ranch, Lakes of Bella Terra, etc. as these areas tend to attract buyers who are concerned about future appreciation and quality of life – which have a history of being stronger or more positive in highly controlled master-planned communities.

With positive economic indicators on a national level, our still strong job market, highly rated public schools, abundant commercial/retail for shopping, dining, entertainment… things still look good for the healthy suburbs of West Houston: Katy, Richmond, Sugar Land and more.

Quotes from Builder http://www.builderonline.com/local-markets/houston-remains-accommodating-to-builders-and-buyers.aspx