When You Can’t Come Home: What Does “Loss of Use” Coverage On Your Homeowner’s Policy Actually Cover?

Your homeowner’s insurance policy will pay to repair damage to your home caused by a fire, windstorm or other covered cause of loss. But when you and your family incur expenses for moving out while repairs are made, who picks up the tab? An often-overlooked but essential function of your homeowner’s policy is “additional living expenses” (also called “loss of use” or “Part D”) coverage. Additional living expenses coverage will pay the necessary increase in living expenses required to maintain your family’s current standard of living while the house is being repaired. Examples of expenses typically covered include the cost of hotel, food bills in excess of normal grocery/restaurant bills, cooking supplies and the cost of moving property into storage. The good news is that payment for these expenses usually does not stop if the policy expires. Rather, they will continue to pay until the limit is used up, the home is repaired to a habitable state, or you permanently relocate.

The bad news is that many homeowners erroneously believe that the policy covers 100 percent of additional living expenses until the home is habitable. Realistically, very few policies do this. In most cases, home insurance companies place a limit or cap on loss-of use payments. For example, many homeowner policies will only offer loss-of-use coverage as a percentage of the limit of insurance carried on the dwelling; 20 percent is common. Others may specify a flat dollar amount.

Usually, a covered loss must occur for any insurance dollars to be paid for additional living expenses. The one exception is if your home is not accessible due to civil authority or government mandate triggered by nearby damage. For example, in 2009, wildfires in California triggered mandatory evacuations that prevented tens of thousands of homeowners from going home. If homes in close proximity to yours are burning, there’s a chance the government will close roads and/or prevent you from entering your property even though it has not yet suffered a direct loss. In this situation, additional living expense payments are often limited to two weeks.
Homeowners who receive additional income by renting a portion of their home should also pay close attention to the Part D limit. This limit also applies to replacing lost rental income while the damaged house is being repaired. How do you know if your policy’s Part D limit is sufficient? The trouble is that important factors are variable. For example, how do you know how long you will be out of your house? Building codes and permits cause rebuilding efforts to proceed slowly in many parts of the country. Calling a local building contractor to gain some idea is a good start but there is no exact prediction. Further, how do you know what expenses you will incur? According to Hotels.com’s 2009 hotel price index, the average hotel room in the U.S. costs $115 per night! Add this and other expenses to a lengthy, unpredictable repair schedule and the possibility of eclipsing your Part D policy limit before your home is habitable could become a serious problem. The last thing you want to hear is that your loss-of-use coverage has run out before you can go home.
Courtesy of Priscilla Tinsley, CIC, CISR Account Representative Morrow Insurance Agency, Inc

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Posted on 3/1/2010 12:32:51 PM

The Secret to Shopping Savings

Coupons and discount codes are great for saving money on certain merchandise, but nothing beats those amazing deals you're sometimes lucky enough to find on sale. Wouldn't it be great if some sort of basic guide existed that revealed when these sales generally tended to occur. Think of the money you could save throughout the year just buying the items you already want and need.

Well, look no further. According to consumer reports experts everywhere, sales aren't always random events to temporarily boost a store's bottom line. Major sales are actually cyclical and even generally predictable to those in the know. This means that with this knowledge and a little planning, you could save big throughout the year.

With this in mind, check out this general guide to the sales cycles compiled by consumer reports experts. Print it out and, when you need to buy something from the list, plan ahead and save!

JANUARY: Christmas decorations (up to 90% off in some cases); Linens; Bikes; Outdoor gear; Furniture; Winter coats (up to 75% off in some cases); CDs and DVDs; Cookware; Swimwear; Toys. FEBRUARY: Winter clothes; Houses and Condos; Humidifiers; Small Consumer Electronics; MP3s and digital cameras; Treadmills. MARCH: Video games; China; Computers. APRIL: Electronics. MAY: Towels; Athletic apparel; Cordless phones; Small appliances; Mother's Day materials. JUNE: Tools; Father's Day materials; Computers; Swimwear. JULY: School supplies; Computers; Furniture; Swimwear. AUGUST: Pool toys; Sandals; Patio furniture; Air conditioners; Camping equipment; Dehumidifiers. SEPTEMBER: Summer clothes; Inflatable pools; Gas grills; Shrubs, trees, perennials. OCTOBER: Lawn mowers. NOVEMBER: Baby products; Toys; Halloween items. DECEMBER: Christmas items (after Christmas Day); Wedding dresses; Cars.

The picture was taken in the Pisgah National Forest of a fisherman fishing for Native Trout. The beautiful Falls are Looking Glass Falls and just five or so minutes from the entrance of the Pisgah National Forest just outside of Brevard North Carolina. Come visit The Land of Waterfalls..Brevard NC

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Posted on 2/26/2010 9:30:04 AM

So you have a new home. Now what?

Practical Advice for New Homeowners

There's nothing more exciting than opening the door to your first new home and knowing that it's actually yours, that you actually own it! No landlord bothering you about every little thing. No silly rules about what colors you can paint or what renovations you want to make. Finally you can do whatever you want to do in your home!

And while this is a great feeling, and the pride you feel is natural and well deserved, don't allow yourself to get too carried away with your newfound freedom. You worked hard to earn this opportunity and you don't want to potentially jeopardize your investment by letting your emotions get the better of you.

If you've recently bought your first home or you plan to do so soon, take a few moments to think about the practical side of home ownership before you start making any major changes or renovations. Doing this will help ensure that your first home becomes the personalized place you always wanted and worked so hard to get.

Get properly insured – Before you decide to build or tear down anything, be sure that you are properly insured.Even if you enjoyed the full $8,000 tax credit for first-time home buyers (or the full $6,500 tax credit now available to qualified "repeat" buyers), sit down with your insurance provider and make sure you're covered on all fronts before you do anything. It doesn't make sense to spend your tax money upgrading your home if you're not protected in advance.

Maintenance before makeover – It's true that you no longer have a landlord looking over your shoulder for every little thing. But, you also don't have a landlord to turn to if something should go wrong. So, before you think about beautifying your new home, think first about fortifying it. Invest in necessary repairs first and avoid surprises down the road.

Go with the pros –When the time does comes to make those changes, be sure to hire the best, most qualified people. This doesn't mean you can't paint or do the little things that can make a big difference. But when it comes to the big stuff, hire the pros for the best results and to avoid injury. Remember, your new home is an investment and it deserves the highest care and attention you can give it.

Don't forget the tax credits for home improvements. I personally saved $1,500.00 by installing a new heat pump, replacing an 24 year old energy hog. And the new Heat Pump came with factory incentives of over $1,200.00

For References and more advice call me today at 828-877-3782 or Jay@HomeINBrevard.com

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Posted on 2/26/2010 9:16:47 AM

Home Buyer's Tax Credit About to End So lets get Busy

You're probably up to your neck by now in forms and paperwork as the April 15th income tax deadline approaches. Maybe you've already completed your taxes, paid your bill, or are awaiting your refund check. Either way, now is the perfect time to revisit the extended and expanded Home Buyer's Tax Credit.

Why? Because now, as you calculate your tax bill or your refund, you can finally see in real terms just how beneficial a tax credit of up to $8,000 can be to your bottom line.

Here's the basics:

Qualified 2009 and 2010 first-time home buyers can get up to 10% of the home's purchase price or a maximum of $8,000. In November 2009, legislation extended a tax credit of up to $6,500 (or up 10% of the home's purchase price) to long-time residents of the same primary residence if they purchase a new main home. To qualify, eligible taxpayers must show that they lived in their previous homes for a five-consecutive-year period during the eight-year period ending on the closing date of the new home.

Important details to remember:

1) You don't have to pay it back (as long as you stay in your qualified home for at least 36 months).

2) If you qualify for the credit, you can still apply it to this year's taxes, even if you've already filed your returns, or save it for your 2010 returns.

3) This is a true tax credit, not a deduction. If you qualify for the full credit, there will be an actual dollar-for-dollar reduction of up to $8,000 (or up to $6,500 for qualified repeat buyers) on your tax bill now or in 2010.

4) New income qualification limits have been put in place that expanded the pool of qualified buyers.

5) If you purchased a qualified home or plan to after reading this article, you must have a contract in place by April 30, 2010 (with closing to take place by June 30, 2010), so don't wait!

There are, of course, other details and qualification requirements and restrictions that you'll need to consider. But don't hesitate to give us a call if you have any questions. Also, if you happen to have your completed 2009 tax return handy, we'll help you calculate how much money you can get if you purchase a home and qualify for the full credit.

Lam V. Nguyen
Mortgage Banker
Alpha Mortgage

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Posted on 2/26/2010 9:00:58 AM

Obama's $1.5 billion financing plan would help struggling homeowners in 5 states

Under the program, state housing finance agencies from California, Nevada, Arizona, Michigan and Florida will share the funds and test new approaches to the housing crisis. Those states have been among the hardest hit by foreclosures, with home values declining more than 20 percent. The initiative will be financed through the government's Troubled Assets Relief Program.
White House officials said the initiative is one of many efforts the administration has launched to help homeowners stay in their homes. But they also acknowledged the growing challenge that unemployment and falling home prices have posed to mortgage relief efforts, and said the state programs might generate solutions that could be applied more widely.
The administration's marquee foreclosure-prevention program, Making Home Affordable, was unveiled a year ago but has struggled to gain traction. Through January, the mortgage payments of nearly 1 million borrowers were temporarily lowered under the program, but most borrowers must prove they qualify for permanent aid and some are at risk of losing the help.
Housing advocates have complained that Making Home Affordable, which lowers payments to 31 percent of income, is not well suited for two growing groups of troubled borrowers: unemployed people who might not be able to afford any payment, and those who owe more than their home is worth.
About 20 percent of borrowers find themselves owing significantly more than their homes are worth, a situation known as being underwater. Those borrowers are at greater risk of foreclosure, and banking industry officials worry that they will abandon their mortgages.
Many borrowers are also saddled with a second mortgage, such as a home-equity loan, which can be difficult to modify. A federal program in which lenders would lower borrowers' payments on second liens has also struggled to get off the ground.
The new plan is likely to disappoint housing advocates who have been calling for greater changes in mortgage relief efforts. Housing advocates in Ohio, for example, have already called for the new program to be expanded to more states.
"I think it's a good move for those states [that are included]," said John Taylor, president of the National Community Reinvestment Coalition. "It's a help, but it's not the national solution."
This is the second administration program aimed at bolstering state housing finance agencies, which typically provide loans to low- and moderate-income borrowers. Last year, the Treasury Department injected $29 billion into the agencies. They had struggled as investors shied away from buying their debt, making it difficult for them to finance loans.
Under the new initiative, state housing finance agencies would be asked to create locally tailored solutions to the housing crisis, administration officials said.
For example, an administration official said, a more than 20-year-old Pennsylvania program that offers unemployed workers low-interest loans to pay their mortgages appears to have been successful. Under that program, borrowers are eligible for loans of up to $60,000 that can be repaid over an extended period.
Article from http://www.washingtonpost.com/wp-dyn/content/article/2010/02/19/AR2010021901354_2.html?hpid=topnews

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Posted on 2/25/2010 1:39:38 PM

History of Polk County

Polk was formed in 1855 from Rutherford and Henderson counties. It was named in honor of Colonel William Polk "who rendered distinguished service in the Battles of Germantown, Brandywine and Eutaw, in all of which he was wounded." It is in the southwestern section of the state and is bounded by the state of South Carolina and Henderson and Rutherford counties. The present land area is 237.85 square miles and the 2000 population was 18,324.

The act directed that the court and records should be kept at the home of J. Mills until a courthouse could be erected. It also named commissioners to obtain a site for public buildings, lay out a town by the name of Columbus, and erect a courthouse. Columbus is the county seat.

By 1540, some 47 years after Columbus discovered the New World, Hernando de Soto had arrived in the mountain country, probably here in Polk County, where he found the Cherokee Tribe already in an advanced state of civilization. The Indians lived in substantially-built log houses. Though accomplished hunters, they subsisted chiefly by their knowledge of agriculture. They raised corn, pumpkins, and beans.

The area was a fine place in which to live, as the first white settlers quickly learned. Several decades before the Revolution a sprinkling of families had set down their roots in the mountain coves in the midst of the Cherokee hunting lands. By 1768 traders were already traveling up the old Blackstock Road from Charleston to bargain for furs and hides. The proximity of the two civilizations resulted in many clashes and much bloodshed. The conflicts became so numerous that the Royal Governor, William Tryon, himself journeyed west from the colonial capital to parley with the Cherokees and negotiate a boundary line.

Article by: J.D. Lewis - PO Box 1188 - Little River, SC 29566

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Posted on 2/16/2010 1:10:48 PM

7 Ways to KILL the Bottom Line for Rental Property

Jewell and I have been in property management longer than at times I want to remeber. However we have excellent success as Jewell is so maticulous at checking out rental references and background checks. Have we had a bad apple or two? You bet as people change. But I saw this article and it just reinforces why you should use a qulaified full time dedicated rental agent.

1-Holding on for that "home run" deal
If the area supports it and the property is $1,295 in the current market, you can loose/waste a couple months income chasing $1,395. How many mortgage payments are you willing to make trying to get a "home run"? Home runs can backfire on you too. Tenants have a knack for finding out they could have had the home next door $100 less every month (and will choose to).
2- Waiting to get repairs done
"I will paint the house if it doesn't rent in a couple of weeks". Sound good? This is actually a really bad idea! You should always consider the tenant your home will attract. If your home isn't in optimal shape to attract the very best tenants in a competitive market, you will only get tenants who don't care what their home looks like. You may get the home rented without the cost of the repair, but it may not be the tenant you want in your home for the next 12 months.
3- Ineffective marketing
A simple "For Rent" sign or independent line ad in the paper may be the quick end to your vacancy. Be careful though - most consumers depend on the internet and some the best applicants now come through online ads. You have to track your efforts to see what media produces the best (not always the most) calls per dollar spent. A "free" ad can cost you days or months of vacancies if it keeps you from finding the best tenants.
Whether you choose paper or online ads, you must have a well-written ad to get the phone to ring. You also have to be priced right, and have the home available to rent. If you aren't getting any calls, it is usually about price. If you are too high, most people won't even take a look. If you are getting plenty of lookers but no takers, check the home out to figure out what is turning people away.
4- Using an inexperienced agent
There are many reasons to use a leasing agent, but if your agent isn't experienced, there isn't much benefit at all. In any major markets, there are literally thousands of real estate agents who want a commission, but very few with enough property management and leasing experience to make them a good choice. Be prepared to do your own ads, applications, and tenant screening if you plan to lease your home yourself, or through the help of an inexperienced friend, neighbor or relative.
5- Poor (or no) tenant screening
Most evictions are the result of a poor or inadequate screening process. By extension, that means most repairs, vacancies and legal expenses are also due to approving the wrong tenant. This is an area where you MUST do your homework and not rely on first impressions or instinct. Looks can definitely be deceiving. Unless you have money to burn, screen well and know when to say NO.
Take a close look at the entire family of your prospective tenant. If you screen the parents, you might not know that their teenage son has a history of violent crime - leaving yourself open to a high risk of potential liability.
Many people who try to manage their own homes are very trusting, sometimes even skipping the use of a basic application and background checks. If you want to learn how evictions work, just go with your ‘gut' feeling on that prospective tenant and hope for the best.
6- Using a substandard lease agreement
Most leases on the market are very generic and seem to be built to not scare off a prospective tenant, rather than protecting the landlord. Do some tenants refuse to sign our lease because we have a "crime free" clause? We sure hope so. Does our "no dangerous breeds" language discourage the owner of 3 Pitbulls? You want it to. If the lease protects the tenant more than the landlord, then you are headed for trouble unless you get lucky finding the perfect tenant.
7- Lost time
Losing time is the easiest and most common mistake that we see new landlords make. Calculate the rent value of each day on your home. If your home rents for $1,395/month, then each vacant day costs you almost $50! We see people all the time who "can't afford $75/month for a professional manager", but lose a week getting their ad in the paper ($350)... or take a couple of weeks getting the house rent-ready ($700)... or feel bad for the tenant and delay the eviction for a month ($1,400).
If you aren't prepared to be completely diligent and focused on the details, then you probably can't afford NOT to use a professional property manager. Sloppy practices with your rental property can kill what should be a very profitable and rewarding experience.
SUMMARY
Managing rental property is more complicated than it looks. Do your homework and either become an expert, or hire one. Every rental property is a business and should be treated like one. The problems outlined here are easy to avoid, but expensive to experience. Give your business the time and attention it needs and it will pay you back very well over time.
Don't get tricked by a suspiciously cheap management solution; by the time you find all the hidden ways that the "cheaper" guys make money, it will be too late. The cheaper a property manager looks on the front end, the more they make up on the back. A great property manager will make your life easier and save you money. Article by Jason in Phoenix

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Posted on 2/13/2010 9:51:56 AM

Life's Interesting Humor

1. Bad things usually happen at the worst moments.

If pipes froze in July, or even September, it would be a lot better. Water repairs are always more pleasant when you’re not wearing mittens.

Livestock follow this rule religiously. They always break through fencing on dark and stormy Sunday nights. They prefer blizzards, but will settle for Class 4 hurricanes.

Similarly, water-proof boots always fail when you’re standing in water, never when they’re sitting high and dry on your mudroom floor.

Wood fires go out when you’re cold; ladder rungs break when you’re standing on them; and tires go flat when you’re driving somewhere, although recent improved models will go flat just as you’re about to go somewhere.

2. Good things resist happening when you most need them.

When you really need a nice-as-pie day, it comes in September with all the others, not January when it would lift your spirits. Rain, I should point out, rarely comes during a drought

Every farm-carpentry project sooner or later presents a philosopher’s dilemma--a choice between good character and its opposite.

The character path requires undoing what you’ve done and redoing it better to reach the point at which you currently are only different. Doing over will require a 75-cent part that you have to get from a town 35 miles away. This, however, is the proper way to do the job.

People who do things the right way the first time got good-citizenship stars in the third grade. They were the Robins. I was tracked into the Crows, a demotion from K through 2 spent in the Grackles.

The other choice is to fetch a super-sized nail, bang it in with a sledge hammer and hope that it either doesn’t double over into a yoga pose or split the nail-to wood (which will require driving for the part).

Over the years, I have usually chosen the nail after weighing four variables: 1) how disgusted I have become with the cosmic uselessness of the project at hand; 2) how angry I am at still being a Grackle; 3) the odds that my wife, Melissa, will see me fail after cheating on the right way to do things; and 4) my testosterone level.

I can report that, so far, bigger nails bend worse AND split the wood. No nail I have ever used was big enough. Failure forces me to conclude that I should have used an even bigger nail. We address many problems this way.

Fortunately, hammering a railroad spike into a frozen water pipe usually breaks the blockage.

3. Jamming the pedal to the metal almost always makes things worse.

Men understand that kicking any dysfunctional machine is always the best and cheapest way to fix it. I have kicked photocopiers, soda dispensers, freezers, ATMs and cell phones with uniformly excellent results.

It follows that stomping on a gas pedal is the gender-appropriate way to improve the performance of any stuck machine that runs on four wheels and the liquid remains of ancient ferns.

I have gunned it when I’ve been marooned in floods, hung up on stumps and wallowing in mud holes larger than Maryland. Results have varied, but rarely exclude the catastrophic, which I figure is the result of not gunning it enough.

Wet, grassy slopes are the blood-oath enemy of the heavy foot. I have personally witnessed the slope down to my creek plotting the wreck of my farm truck by calling in a cloudburst from a sunny April sky.

When facing a slope, slimy with ice or mud, flooring your truck’s gas pedal will always get you 85 percent of the way up…and not an inch more. The more times you make a run at it, the lower you get each time. Many of our finest public policies draw inspiration from the Law of Diminishing Returns, which started behind our barn.

Gas-pedal gods are easily angered. They hang out in the rear differential where they feast on wet-slope rage. Rouse them, and you will find yourself either doing a forward roll off the road or at the bottom of a ditch the size of the Panama Canal.

The ditch, by the way, is always too steep to get out of by gunning it. You are then forced to get help from a kind-hearted stranger, or your wife, who, for unknown reasons, doesn’t spend half her life in messes of her own making. It goes something like this:

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Posted on 2/13/2010 9:33:02 AM

No Pipe “Unthaws” Before It's Time

Murphy's Law Always Seems to Come Into Play

Written by: Curtis Seltzer

Like much of America, we in Blue Grass are slowly “unthawing,” which is how we phrase it out here.

For 20 days after Christmas, two-thirds of the land of the free was moaning the frozen-pipe blues as temperatures stayed closer to zero than 32.

Many Americans have at least one good frozen-pipe story in our oral histories.

The best are about hot and cold lines buried in ceilings that broke during dinner parties so that the crystal chandelier over the first-floor dining room turned into liquid performance art, and no diner asked for extra gravy.

I often discourage visits from unwanted guests by noting that the waste-water lines serving our spare bedrooms are frozen. This strategy is less effective in the summer.

Like many old farmhouses, ours was built before FDR declared indoor plumbing an inalienable right. Indoor came to Blue Grass in the late 1930s, and our pipes have been acting up ever since.

Chinese made pipes out of reeds 3,000 years ago, then bamboo. Others fashioned them from clay, lead and wood. Modern materials with the best freezing characteristics are copper and plastic, either of which can be installed directly against baseboards on uninsulated, North-facing walls for optimal vulnerability.

I have found prayer to be of little use against frozen pipes. Neither His rod nor His staff ever does as much good as a heat gun and hair dryer.

Frozen pipes always follow the Four Iron Laws of Country Life

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Posted on 2/13/2010 9:31:35 AM

Lowes discounts from Realtor Benifits Program

Now is your oportunity to take advantage of Lowes Realtor Benifits discounts by signing up with Lowes. This Free service not only in Brevard NC but nationwide is yours throught the National Association of Realtors. I have provided the link below to take advantage of all the offerings by Lowes.

As an example right now you can save an additional 10% off all in stock lighting from there already discounted prices.

Limited time 10% offer from Lowe’s

Don’t miss out on REALTOR Benefits® Program Partner, Lowe’s special 10% coupon on in-stock lighting. Through June 15, 2010, members can take advantage of this exclusive offer by logging into their LowesRealtorBenefits.com account, printing out the coupon and redeeming at any participating Lowe’s store.

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Posted on 2/3/2010 2:40:12 PM

Tax Breaks 101: New Deductions and Credits to Stimulate Economy

RISMEDIA, February 3, 2010—(MCT)—This may be the tax season where even die-hard do-it-yourselfers break down and hire a preparer or at the very least invest in some tax software.
Taxes are more complicated than usual with all the new deductions and credits created last year to stimulate the economy. And in some instances, Congress went back to revise and expand the tax breaks. The popular home buyer credit, for instance, is on its third version.
“You can’t just sit down with last year’s return and make sure you fill in the same lines and think you got everything coming to you,” says Harris Abrams, a senior tax analyst with Thomson Reuter’s Tax & Accounting.
Fortunately, many of the new tax breaks are credits, which are better than a deduction because they reduce your bottom-line tax bill dollar-for-dollar. So before you fill out your return, here’s a refresher on some of the key tax breaks this season:
Donations to Haiti
If you made a charitable donation for earthquake relief in Haiti, you can deduct it on your 2009 itemized return instead of waiting until next year. This applies to cash gifts—not clothes or other property—made by check, text message or credit cards before March 1, 2010. As usual, donations must go to qualified charities, and you’ll need a receipt. For donations made via text message, a phone bill with the name of the charity and details of the gift will suffice.
Making work pay credit
This credit is worth up to $400 a year for singles and $800 for joint filers within certain income limits. It was designed to put money quickly into consumers’ hands by having employers reduce the amount of taxes withheld in paychecks.
Even though you got some or all of the money last year, you will need to fill out the new Schedule M if filing a Form 1040 or 1040A to officially claim the credit.
That said, more than 15 million taxpayers are in for an ugly surprise, according to an estimate by the Treasury Inspector General for Tax Administration. Their refunds may be reduced or they might owe more in taxes because their employers wound up taking out too little for taxes. This can happen to workers with multiple jobs, two-income couples or dependents with wages, says Melissa Labant, technical manager for the American Institute of Certified Public Accountants. Something similar can happen to workers with multiple employers reducing withholdings, Labant says. And dependents don’t qualify for the credit, so they may have to make up for a shortfall in tax withholdings, she says. The Making Work Pay credit is in effect for this year, too. If you didn’t have enough taxes withheld last year, adjust your W-4 now so your employer increases your tax withholdings.
Home buyer credit
Originally, the $8,000 credit was only for first-time home buyers. Now, long-time homeowners can get a credit of up to $6,500 if they bought a new principal residence after Nov. 6 and lived in their old homes for at least five years in a row in the past eight years. The income limits for eligibility also were raised late last year and the deadline extended. You now must have a house under contract by the end of April, and close the deal by the end of June, and you can claim the credit on your 2009 return. But you won’t be able to file a return electronically when claiming the credit. Blame all the fraudulent home buyer claims last year—that cost taxpayers millions of dollars. To fight fraud, the IRS requires that you file a paper return and submit proof that you bought a house. If you’re claiming the $6,500 credit, you’ll need to document that you meet the five-year residency requirement. The IRS will start processing these paper returns in mid-February, and the earliest refunds will go out toward the end of March. If you don’t provide full and accurate information, count on your refund taking longer.
Car sales tax deduction
If you bought a new car, motorcycle or mobile home between Feb. 17 and the end of 2009, you may be able to deduct the sales tax paid on the first $49,500 of the purchase price. You don’t have to itemize to get this deduction. The tax break starts phasing out once income hits $125,000 for singles and $250,000 for joint filers.
Energy credits
Congress expanded these for energy-conscious homeowners. For 2009 and this year, claim a credit worth up to 30% of the cost—not to exceed $1,500 over the two years—of adding energy-efficient windows, doors, heaters, air conditioners, water heaters and heating systems. Add a solar water heater, wind turbine, geothermal heat pump, solar electric systems, and the credit is worth 30% of the cost with no dollar limit.
Help for the unemployed
For 2009 only, you won’t have to pay income taxes on the first $2,400 of unemployment benefits received. Also worth noting is the recent expansion of the COBRA subsidy, although this isn’t a tax break. Uncle Sam has been paying 65% of the health insurance premiums for unemployed workers buying coverage under COBRA, the federal law that allows ex-employees to remain on an old employer’s health plan for up to 18 months. This subsidy was recently expanded by six months so unemployed workers can receive assistance for a total of 15 months. It applies to workers who lost their jobs from Sept. 1, 2008, through the end of next month.
Education credit
The $2,500 American Opportunity Tax Credit for higher education improves upon the old Hope Scholarship credit. “For most people, it’s going to be the credit of choice in the education area,” says Mark Luscombe, principal tax analyst with CCH, publisher of tax information. The Opportunity credit covers the first $2,000 spent on tuition, fees, books and required materials, and 25% of the next $2,000 in expenses. You can claim it in any of the first four years of college. And 40% of the credit is refundable, so if you don’t owe any taxes you can get as much as $1,000 back in a refund. The credit begins to disappear once income reaches $80,000 for singles and $160,000 for joint filers.
Boost your savings
For the first time, you will be able to direct the IRS to use all or part of your refund to buy U.S. Savings Bonds. You can buy up to $5,000 worth of Series I bonds designed as a hedge against inflation. The bonds, sold in multiples of $50, will be mailed to you later. To buy the bonds or have the IRS split your refund among different bank accounts, fill out Form 8888.

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Posted on 2/3/2010 2:33:36 PM

Is your home ready for winter weather?

Is your home ready for winter weather? Many consumers don’t realize that lack of preparation could mean unwelcome home damage and unexpected repair expenses.
Snow or ice is the fifth leading cause of homeowners’ insurance claims. Also, according to the Insurance Information Institute, the average homeowners’ claim for water damage and freezing is a whopping $5,531. Follow these tips to protect you and your home from serious financial liability:
Prevent Ice Dams —An ice dam is a build-up of ice that blocks water drainage from the roof and the gutters. Ice dams can cause leaks from ceilings and walls that can ultimately lead to mold and other problems. To prevent ice dams, remove leaves, sticks and other debris from gutters or install gutter guards (available in most hardware home stores) that will prevent debris from getting in the gutter and interfering with drainage.
“Watch Out for That Tree!” —Trees and branches weakened by snow, ice and wind can snap and seriously hurt a person on your property as well as cause serious damage to your home or car. Trimming trees and removing dead branches can help prevent serious damage and injuries.
Roof Care and Repair —High winds, snow and ice can damage a roof. Check the structural ability of the roof to sustain unusually heavy weight from the accumulation of snow and ice. After a heavy storm, check for water stains in the attic and on any overhangs. Lastly, repair or replace split or loose shingles and fix any leaks.
Pipe Dreams…and Nightmares —First, the bad news: Frozen or broken water pipes disrupt hundreds of thousands of American lives every winter. You can prevent frozen pipes by following these tips:
Keep the inside temperature of your home at 65 degrees or warmer. If you are away, make sure someone checks on the home to keep the heat on.

Wrap heating tape and/or standard insulation around pipes wherever possible.

Look for pipes with cracks or leaks —they freeze first.

newspost561-is-your-home-ready-for-winter-weather.aspx

Posted on 1/29/2010 6:46:37 AM

A Little Organization Can Save a Lot of Money

By Gregory Karp

RISMEDIA, January 25, 2010—(MCT)—Do you find that money “slips through your fingers” or you’re constantly surprised it runs out before the month ends? That might be a signal that you earn too little, spend too much—or maybe you’re simply disorganized.

Poor planning and disorganization can cost you big-time, said Russell Wild, a financial adviser and co-author with Regina Leeds of One Year to an Organized Financial Life. “I’m often astonished by people who come in and are well-organized in other areas of their lives but are completely disorganized when it comes to finances,” he said. “They’re bleeding money.”

Poor organization is expensive in countless ways: Credit card late fees and checking account overdrafts, paying additional taxes, overspending on last-minute gifts because you didn’t plan ahead, failing to brown-bag a lunch, not filing for a cash merchandise rebate, paying for memberships you don’t use, losing out on discounts at retail stores and the supermarket and paying more interest on loans than you need to.

“Spending time taking care of finances is an investment just like putting away cold cash,” Wild said.

The following tips will help you get your finances in order and save you money along the way.

-Bill paying: Does your system work? Have you checked out online bill paying? Do you at least have automatic deposit of your paycheck? Don’t be afraid to spend a little money on file folders or a label-maker or other inexpensive tools that will help you stay organized and avoid clutter. Develop a system for keeping receipts. You might need them to return items, file for rebates or claim tax deductions. Couples should determine clear responsibility for bill paying.

-Credit: If you won’t get organized about anything else, pay careful attention to your credit cards. Paying interest on balances, incurring penalties and damaging your credit score will hurt your money health. Look up your credit report at AnnualCreditReport.com. Mistakes on those reports are rampant and can lower your credit score, which means you will pay more than you have to for loans. You’re entitled to one free report a year from each of the three credit reporting agencies. Pull one every four months to keep constant tabs on your credit.

-Shop smart: Disorganized people don’t use coupons, store loyalty cards or online promotional codes. They don’t seek out store sales, comparison shop or try to negotiate prices- that wastes money. If you haven’t re-examined your TV-Internet-phone package, insurance, investment fees and monthly subscriptions, you might be spending more than you need to. “People are busy these days, which leads them to take a default position with their finances,” Wild said. “By blocking off time to comparison shop, people can often save a lot of money. I think people tend to overestimate the time involved.”

-Budget: “Most people know where their money is coming from; few people know where their money is going,” Wild said. For just a few weeks, keep a log of where your money is going. If you mostly use debit and credit cards, much of that spending will be recorded for you on a statement. Don’t get hung up on methods. Pencil and paper, spreadsheet, finance software or budgeting websites all work.

Armed with real information about spending, you can develop goals, which involves nothing more than answering a simple question: Is my money going where I want it to? If not, get organized and make changes.

newspost560-a-little-organization-can-save-a-lot-of-money.aspx

Posted on 1/25/2010 1:23:53 PM

Home tips and special uses for Coffee Filters

Better than paper towels and a lot less expensive...


COFFEE FILTERS

Coffee filters .... Who knew!   And you can buy 1,000 at the Dollar Tree for almost nothing even the large ones.

1. Cover bowls or dishes when cooking in the microwave. Coffee filters make excellent covers.

2. Clean windows, mirrors, and chrome... Coffee filters are lint-free so they'll leave windows sparkling.

3. Protect China by separating your good dishes with a coffee filter between each dish.

4. Filter broken cork from wine. If you break the cork when opening a wine bottle, filter the wine through a coffee filter.

5. Protect a cast-iron skillet. Place a coffee filter in the skillet to absorb moisture and prevent rust.

6. Apply shoe polish. Ball up a lint-free coffee filter.

7. Recycle frying oil. After frying, strain oil through a sieve lined with a coffee filter.

8. Weigh chopped foods. Place chopped ingredients in a coffee filter on a kitchen scale.

9. Hold tacos. Coffee filters make convenient wrappers for messy foods.

10. Stop the soil from leaking out of a plant pot. Line a plant pot with a coffee filter to prevent the soil from going through&nb sp; the drainage holes.

11. Prevent a Popsicle from dripping. Poke one or two holes as needed in a coffee filter.

12. Do you think we used expensive strips to wax eyebrows? Use strips of coffee filters..

13. Put a few in a plate and put your fried bacon, French fries, chicken fingers, etc on them. It soaks out all the grease.

14. Keep in the bathroom. They make great "razor nick fixers."

15.   As a sewing backing. Use a filter as an easy-to-tear backing for embroidering or appliqueing soft fabrics.

16. Put baking soda into a coffee filter and insert into shoes or a closet to absorb or prevent odors.

17. Use them to strain soup stock and to tie fresh herbs in to put in soups and stews.

18. Use a coffee filter to prevent spilling when you add fluids to your car.

19. Use them as a spoon rest while cooking and clean up small counter spills.

20. Can use to hold dry ingredients when baking or when cutting a piece of fruit or veggies.. Saves on having extra bowls to wash.

21. Use them to wrap Christmas ornaments for storage.

22. Use them to remove fingernail polish when out of cotton balls..

23. Use them to sprout seeds. Simply dampen the coffee filter, place seeds inside, fold it and place it into a plastic baggie until they sprout.

24. Use coffee filters as blotting paper for pressed flowers. Place the flowers between two coffee filters and put the coffee filters in phone book..

25. Use as a disposable "snack bowl" for popcorn, chips, etc.


OH YEAH THEY ARE GREAT TO USE IN YOUR COFFEE MAKERS TOO.

newspost559-home-tips-and-special-uses-for-coffee-filters.aspx

Posted on 1/25/2010 1:21:40 PM

What is a true Friend?

1. When you are sad,
I will jump on the person
who made you sad
like a spider monkey
jacked up on Mountain Dew!!!

2. When you are blue,
I will try to dislodge
whatever is choking you.

3. When you smile,
I will know you are
plotting something
that I must be involved in.

4. When you're scared,
we will high tail it out of here.

5. When you are worried,
I will tell you horrible stories about how much worse
it could be until you
quit whining, ya big baby!!!!

6. When you are confused,
I will use little words.

7. When you are sick,
Stay away from me
until you are well again.
I don't want whatever you have....

8. When you fall,
I'll pick you up
and dust you off--
After I laugh my rear off!!

9. This is my oath....
I pledge it to the end.
'Why?' you may ask;
-- because you are my FRIEND!
***********************
Friendship is like peeing your pants,
everyone can see it, but only YOU
can feel the true warmth..

newspost558-what-is-a-true-friend.aspx

Posted on 1/3/2010 6:45:01 PM

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