1099 Repeal Advances 

 http://www.naahq.org/publications/units/2011/03_11/Pages/1099RepealAdvances.aspx

 Political Insider

 

Congress is moving on a relatively fast track to repeal the onerous 1099 reporting requirements enacted in the healthcare reform legislation. Repeal is a priority for NAA/NMHC. Present law requires that businesses remit a Form 1099 only when they purchase more than $600 of services, not goods, and only from unincorporated entities.  Under the healthcare legislation, beginning in 2012, businesses would have to file 1099s for $600 or more for both goods and services and to incorporated and unincorporated entities.

On Feb. 17, the Senate approved the FAA reauthorization bill (S 223) that includes a provision repealing the health care law's 1099 requirements. Also on Feb. 17, the House Ways and Means committee passed two 1099 bills. The first (HR 4) would repeal the 1099 requirements enacted in the health care legislation.

The second measure (HR 705) would repeal the health care provisions as well as separate changes enacted last year under a small business law (PL 111-240). Those changes went into effect in 2011 and require passive real estate owners to comply with all present-law 1099 requirements.

While Obama initially called for repeal in his State of the Union speech, his FY 2012 budget proposal actually retains the requirement that 1099s be issued for all services purchased in excess of $600 from both unincorporated entities and corporations. It would simply eliminate the need to issue a 1099 for goods purchased in excess of $600.

An NAA/NMHC guidance document on the two different 1099 provisions is available at www.naahq.org/governmentaffairs.

2011 Tax questions

Question:
      We haired a roofing company(Licensed) changed roof for our house(investment property). If we do not need to file 1099, how to claim the tax? Should we ask for their tax ID?

Answers:

• My accountant said: "For corp, ask for W-9. If Home Depot that's obvious enough.
  1099 for everybody else over $600."
  
   
• For 2010, only for services, not goods purchased
• my accountant said, most likely that IRS 2011 decision will be repealed...

• the new requirement for 2011, you must issue a 1099 to all vendors, for goods and services over value of $600, including LLC/LLP, but S-corp and C-corp are exampted..
  the house and senate are both try to repeal the IRS requirement as we speak.
  
  http://taxes.about.com/od/businesstaxes/qt/1099-Misc-Reporting-for-Miscellaneous-Payments.htm
  more to read..
  http://www.naahq.org/publications/units/2011/03_11/Pages/1099RepealAdvances.aspx
   

• It depends:
  
  
  unless the repair bill is less than $600, otherwise you need to issue a 1099, thus, you need their SS# or EIN.
  further, whether you can claim as expense or must depreciate over life the property, here is what IRS said..
  

  How Do You Treat Repairs and Improvements?

  
  If you improve depreciable property, you must treat the improvement as separate depreciable property. Improvement means an addition to or partial replacement of property that adds to its value, appreciably lengthens the time you can use it, or adapts it to a different use.
  You generally deduct the cost of repairing business property in the same way as any other business expense. However, if a repair or replacement increases the value of your property, makes it more useful, or lengthens its life, you must treat it as an improvement and depreciate it.
  

  Example.

  You repair a small section on one corner of the roof of a rental house. You deduct the cost of the repair as a rental expense. However, if you completely replace the roof, the new roof is an improvement because it increases the value and lengthens the life of the property. You depreciate the cost of the new roof.
  
  http://www.irs.gov/publications/p946/ch01.html  

Craigslist Renting Ad Tips

1. If no response may mean that that price you ask for is too high.Lower it gradually in $30 to $50 increments. Once you find the sweet spot, there will be lots of responses.
2. Title is very important:
   Example:
   newly renovated 3 bedrooms convenient to all ONE MONTH FREE 1000/month
   
   

Lead Paint Abatement

http://www.lowellma.gov/depts/dpd/services/housing/lead

http://www.ieetrains.com/
LEAD-BASED PAINT COURSES

Childhood Lead Poisoning Prevention Program

 http://www.mass.gov/dph/clppp

Lead Related Topics

• Lead and Your Child’s Health 
• The MA Lead Law and Legal Documents 
• Frequently asked questions about deleading
• Lead Research and Statistics

Quick Links

• What deleading can I do on my own? (Low-Risk, Moderate-Risk and Encapsulation)
• Educational Materials
• Frequently Asked Questions
• Find an Inspector, Private Risk Assessor, or Deleader
• Database of Lead Inspections for Homes in MA
• Ordering Materials and Additional Resources
• Información en Español

Cash out refi for investment properites Experiences

Case 1:

• I just did it in June with TD-Bank
• 4.875%, no point, cashed out 80% equity. They keep loans in house so they can offer better deals than others. I think you should check your local banks.

Case 2:

• Quicken Loans
• 5.626%, $2000 closing close

Standard Gas Mileage for investment properties

Log your travel date, time, milage, and reason.

Experiences: cash out refinance

After one year, you can cash out refinance your property at it's market value, regular loan, not line credit. General conditions: you have a steady job, credit score>790, the income/debt ratio is <35-40 (depending on state), your property is at fair condition and is rent out and you have less 4 loans (in my state).Not easy process, but it can be done. You need to persistently talk to local small banks.

Another one:
           I just did one @ Amtrust, took two months

Another Closing Cost Example

Question: 

  Closing costs for $330K loan:

• Appraisal Fee     $ 350.00
• Credit Report Fee $ 15.00
• Flood Certification $ 10.00
• Settlement Fee - Borrower $ 750.00
• Title Insurance $ 650.00
• Recording Fee - Deed $155
• == Total $1930

Answer 1: 

• Appraisal Fee:   $ 350.00  --Ok
• Credit Report Fee $ 15.00  --OK
• Flood Certification $ 10.00  --OK
• --Above three are charged by your bank.
• Settlement Fee - Borrower $ 750.00--what's this, Your attorney fee? than that's OK
• Title Insurance $ 650.00--Seems too low for 330K house, what state are you in?
• Title insurance for a 330K house, in NJ/NY, if you buying a house, it is about1450, refinance 770, Other state could by similar amount.
• Seems it is missing:
• title search/survey, avg $500 here in NJ
• Recording for all(plus other small charges), avg $500 in NJ
• Usually bank would charge origination fee/commitment fee etc, total could be 400-700.

Answer 2:

• Very cheap. Usually around $3000
• Should also have: 
• lender underwritting fee $895 to $1000
• broker fees $495
• Appraisal $350 is cheap. Usually 485
• If NO Point NO fee，rate would be 0.125% higher for Primary Residence
• For Investment property, it would be difficult. Bank would charge for 1.75 point.  

Kindly Reminder: Property Tax Deduction

if you bought the home or properties in 2010, you may be able to deduct more property taxes than you think. Don’t forget to include any taxes you may have reimbursed the seller for.  These are taxes the seller had already paid before you took ownership. You won't get a 1098 report listing these taxes. Instead, that amount will be shown on the HUD settlement statement.

http://seattlebubble.com/blog/

http://seattlebubble.com/blog/

National Home Prices Are Close to the 2009Q1 Trough According to the S&P/Case-Shiller Home Price Indices

S&P/Case-Shiller Home Price Indices chart
February 22, 2011

• San Diego and Washington DC as the only two cities where home prices are

increasing on a year-over-year basis, +1.7% and +4.1%, respectively

• Despite improvements in the overall economy, housing continues to drift

lower and weaker.

• California is doing better with gains from their low points in Los Angeles, San Diego

and San Francisco.

• At the other end is the Sun Belt – Las Vegas, Miami, Phoenix and Tampa. All four

made new lows in December.

Home prices continue to drop?

Observations:

• This spring is much slower than last year. 
• Same here in North California
• Same here in South California. Close to the lowest of 2009!
• The tri-state area is getting worse as well. The situation is worsening day-by-day in Connecticut, New Jersey and New York.
• If it breaks the lowest of 2009, it would be a huge warning. 

Life Insurance Question

Q: How about 20 Year 500K Term life @ $280? 36 Year Old and Healthy.

A 1:  Try to get a quote from American General for preferred plus rate. I heard they are very reasonable.
A 2:  Pretty Good: 0.5m, 15yrs term at my age of 35yrs old, I paid 270/year.. so yours is pretty good...
A 3: Your insurance premium is good, but your coverage is a bit too low. When you are young, it's cheap to buy term life insurance. If you have kids, I think you should buy $1m.