2013 taxes

Be aware that you may owe federal income taxes in 2013 if you have a short sale, foreclosure

WASHINGTON – Jan. 9, 2012 – You may owe federal income taxes in 2013 if you have a short sale, foreclosure after this year. Now is the time to make the hard decision: Are you going to walk away from your underwater home?

Uncle Sam is still giving homeowners until Dec. 31, 2012, to go through a short sale or foreclosure without tax consequences – as long as the lender officially releases the debt.

But on Jan. 1, 2013, the rules change: The amount a lender forgives, ether in a short sale or foreclosure, on a primary residence will be taxable on federal income taxes.

So if a house sold $50,000 short of what is owed on the mortgage, then the selling homeowners will owe federal income taxes on that $50,000. Homeowners would owe $12,500 if they’re in the 25 percent bracket; $7,500 if in the 15 percent tax section.

Homeowners would be on the hook even if the house sold but the bank had not formally forgiven the loan in a letter: The banks must officially sign off in writing before Dec. 31.

“It’s a huge issue – it will be a shock to many taxpayers after 2012,” said Mark Steber, the Florida-based chief tax officer for Jackson Hewitt Tax Service.

The law first came into affect five years ago as the housing market went bust nationwide.

The Mortgage Debt Relief Act of 2007 “generally allows taxpayers to exclude income from the discharge of debt on their principal residence,” according to the Internal Revenue Service. “Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.”

Up to $2 million of forgiven debt can be forgiven this year, $1 million if married and filing separately, according to the IRS.

Homeowners declaring bankruptcy could escape paying income taxes on any cancellation of debt income if the debt is forgiven in the bankruptcy even if the debtor is solvent, said Nick Jovanovich, a board-certified tax attorney in Fort Lauderdale, Fla.

“Bankruptcy trumps everything,” he said.

Or homeowners might not have to pay income taxes on any cancellation of debt income to the extent that they are insolvent immediately before the cancellation – that is, their debts exceed the value of their assets, Jovanovich added.

Steber and Jovanovich said homeowners should decide now what they are going to do – to give themselves time.

Short sales can take a long time, said Timothy Singer of Coldwell Banker in Fort Lauderdale.

He said he knows of one that had been pending for three years.

But lenders “have been gearing up” and speeding up the process, Singer added.

But even if banks quickly approve a short sale, the would-be buyer may get cold feet and the deal fall through, Singer said.

Then the sellers have to begin again, he said.

Copyright © 2012 the Sun Sentinel (Fort Lauderdale, Fla.), Donna Gehrke-White. Distributed by McClatchy-Tribune News Service.

Please feel free to contact Marie Avery and Terri Ayers, at 941-358-1818, if you have any questions about our Florida Real Estate market.

Safe Shopping Strategies for the Holidays

In today’s difficult financially atmosphere, identity theft and credit card fraud are crimes to be very aware of, especially as the holiday shopping season nears. While many people are more aware about online shopping security, identity theft occurs offline also. In fact, according to a February 2009 study by Javelin Strategy & Research, of the 9.9 million identity-theft cases reported in 2008, online theft accounted for only 11% of incidents. Stolen wallets, checkbooks, and credit and debit cards made up almost half.

Following these simple guidelines can help prevent this type of crime occurring to you.

Don’t carry your Social Security card in your wallet. This number can be used to find out everything about you.

Before you go shopping, look in your wallet and keep only the credit card and/or ATM card you really need. Most people carry all their credit card with them and if your wallet were stolen it could be devastating.

The news is filled with stories about ATM crimes. When using an ATM machine, try to use one inside your bank’s lobby. Try to use one in a well lit area. If you’re using your ATM card at a store, make sure no one is too close when you are entering your PIN number.

Select a PIN number that no one else could easily guess what it is. Combines upper and lowercase letters and numbers. Never write your PIN number down anywhere—memorize it.

It is common for store clerks to ask for your telephone number or a business caller to ask for your address, make sure you know who you are talking to and why they are asking for the information. You are usually not required to provide this information.

Be careful about the credit cards you use for online purchases. Try using cards with smaller limits as opposed to your American Express card or checking account ATM. In case your credit card information is stolen, having a low credit limit will prevent the thieves from doing excessive damage.

Be cautious of any suspicious emails that ask for your personal information. Sometimes you will be contacted and they will ask you for your information to verify their so-called information on file. Be leery of giving any information away unless you have verified the source first. Unsubscribe from any “junk” email.

Always check your bills and credit card bills for accuracy. It is very easy for someone who gets you credit card number and expiration date to put a charge and even an ongoing charge on your card unless you check it every time. Contact your credit card company immediately and report the charge.

Be sure to get rid of all the receipts and mail that you do not need that may have your personal information on them. Shredding them is the safest way to eliminate them.

Hopefully these few tips will help to keep you safe in this holiday shopping season and throughout the year.

Bank of America encourages distressed homeowners to explore a short sale as a viable option for avoiding foreclosure. To that end, for a limited time we are offering enhanced relocation assistance to help motivate homeowners to engage with us on a pre-offer short sale. An additional benefit for these pre-offer programs – such as the Home Affordable Foreclosure Alternatives (HAFA) and Bank of America’s proprietary program – is that deficiency may be waived for the homeowner.

Homeowners with property in Florida

Short sales initiated without an offer between September 26 and November 30

The customer will have to be eligible for one of the without offer programs such as the HAFA program or our proprietary program (specific investor participation and eligibility criteria do apply to these programs)

Successful closing of the eligible short sale by August 31, 2012
Minimum relocation assistance is $5,000 and maximum is $20,000, with the specific amount calculated based on the unpaid principal balance

Ginnie Mae, FHA, VA and USDA loans are ineligible for participation
Lot loans are ineligible for participation

Properties outside the state of Florida are ineligible for participation
Short sales initiated with an offer are not currently eligible for the enhanced relocation assistance

Frequently Asked Questions:

Q: How can I find out if my client/homeowner qualifies for this relocation assistance?
A: Call a Bank of America short sale specialist at 1.877.459.2852.
Monday – Friday 8 a.m. – 10 p.m.; Saturday 9 a.m. – 5:30 p.m. Eastern

Q: Do I have to do anything differently when initiating or completing the short sale?
A: No. As long as the homeowner’s short sale is initiated between September 26 and November 30, 2011, and the property closes by August 31, 2012, they will be eligible.

Q: Will the relocation assistance funds be reported on the HUD-1?
A: Yes, they will be documented on the HUD-1, and a 1099-MISC will be issued.

Q: Can the relocation assistance funds be used to pay off existing liens?
A: Yes, if the investor approves it.

Q: Is the relocation assistance added to any other incentives, such as the HAFA or Bank of America proprietary program incentives?
A: No. A homeowner will receive the $5,000 to $20,000 in place of the typical incentive paid out by these programs. The relocation assistance is essentially an enhancement to the standard payout offered on these programs.

Q: Is the enhanced relocation assistance available for other programs?
A: Currently, the enhanced relocation assistance is only available to short sale programs initiated without an offer. However, as we gauge the success we may extend this incentive to other programs.

Q: Which real estate team can help me market and sell my short sale property?
A: Avery-Ayers & Associates has the knowledge and experience to assist you with your short sale. Contact them at 941-358-1818 or email at Homes@AveryAndAyers.com.

Questions?

Homeowners may call 1.877.459.2852 to speak to a Bank of America short sale specialist about this exciting relocation assistance offering.

* The relocation assistance payment is calculated based on the unpaid principal balance of the homeowner’s loan and the type of short sale that the homeowner completes, but will not be less than $5,000 or more than $20,000. The payment amount will be calculated based on the homeowner’s loan balance as of August 2011 and the short sale program in which the homeowner is eligible. The payment will be delivered at the time of closing if the homeowner complies with all terms and conditions of the Short Sale Agreement, including the satisfaction of all second liens and presentation of clear title for the property (the relocation assistance payment can be used to clear those liens). If the homeowner does not comply with all terms and conditions of the Short Sale Agreement, the homeowner will not receive the relocation assistance payment. Even if the homeowner receives relocation assistance, Bank of America, N.A., and their successors and assigns may reserve and retain the right to pursue collection of any deficiency following the completion of the short sale, unless otherwise prohibited by law. The amount of the deficiency and relocation assistance will be reported to the Internal Revenue Service (IRS) on the appropriate 1099 Form or Forms. We suggest that homeowners contact the IRS or their tax preparer to determine if they have any tax liability. This offer is for Florida properties only. To receive the relocation assistance, the property must close by August 31, 2012.

Please feel free to contact Marie Avery and Terri Ayers, at 941-358-1818, if you have any questions about our Florida Real Estate market.

Alot of families move in the summer. Many families, especially those with young children want to get settled in to their new home before the school starts. The Move.com experts offer several tips for making your move a seamless and stress-free experience as possible.

1. Get written estimates from at least three licensed moving companies when hiring professional movers. For a few extra dollars, consider buying moving insurance. Investing in full value protection means any lost or damaged articles will be repaired or replaced.

2. Take photos of every room in the new home while they are vacant. Then write down every item from your current home and which room those items will go before you begin packing them.

3. Begin packing early, even if it’s one room or one cabinet at a time. Toss or donate any items you don’t need. And remember to fill out change-of-address notices and schedule utilities ahead of time.

4. If you have children or pets, consider hiring a sitter or daycare for moving day, or find a safe place for them so they’re not underfoot.

5. When breaking down larger items, like shelving units, into smaller pieces, put the screws, washers and other small components in a sealed baggie and label it clearly. Keep all baggies with small parts in one box and carry it with you on moving day.

6. Take pictures of electronic hook-ups for TVs, DVRs, home theater systems and computers before unplugging them. Print out the pictures and label them in detail, so you will be able to set up the systems properly once you are in the new home. Also keep all loose wires in separate baggies or boxes that are clearly labeled.

7. Dispose of any household products you no longer use, such as paints, pesticides and detergents. Contact the city’s waste disposal department for guidelines on how to dispose of them safely. For items that you plan to take with you, like laundry detergent or cleaning products, pack them in a small box within a larger box to protect against leaks and seal the boxes securely.

Plan ahead and start packing early, so you can enjoy the moving experience with less stress.

Please feel free to contact Marie Avery and Terri Ayers, at 941-358-1818, if you have any questions about our Florida Real Estate market.

re/max above the crowd

A question imany nquiring home buyers and home sellers have when they want to use the top real estate agency, in any market is “who’s #1?”.

Many real estate companies market and advertise in the media stating that they are number 1 in the area. An independent survey can prove to be the best determinant.

J.D. Power and Associates announced July 27, 2011 that RE/MAX ranked highest in customer satisfaction, for both BUYERS and SELLERS, in its 2011 residential real estate survey.

The J.D. Power and Associates survey was performed with a national study of 4200 evaluations from 3,680 respondents showing that factors such as agent/salesperson, office, marketing and additional services offered to be the most important factors in real estate customer satisfaction.

RE/MAX offers national marketing tools to their agents to help them assist homebuyers and homesellers acheive a successful outcome and outperform their competition. One of RE/MAX best tools is its comprehensive educational platform. RE/MAX University offers over 1,100 educational programs on-demand, and is available online, on smart phones and in classrooms around the world.

In two other 2011 industry surveys of the country’s top real estate brokerages, RE/MAX agents averaged more transaction sides than agents at other national franchises. The RIS Media Power Broker Survey and the REAL Trends 500 both showed that RE/MAX agents averaged more than double the average of many competitors.

Our local RE/MAX Alliance Group is ranked #1 in sales in the Manatee and Sarasota market. Avery-Ayers & Associates at RE/MAX Alliance Group ranks as one of the top real estate teams in the office.

Please contact us, Marie Avery and Terri Ayers, at 941-358-1818 or email Homes@AveryAndayers.com if you have any questions about our Florida Real Estate market.

What is the true sign of real estate in today’s market?

An index of home prices in big metro areas has reached its lowest level since 2002, driven down by foreclosures, a glut of unsold homes and the reluctance or inability of many to buy. Many economists think prices nationally will drop at least 5 percent more by year’s end.

Prices fell from February to March in 18 of the metro areas tracked by the Standard & Poor’s/Case-Shiller 20-city index. The nationwide index fell for the eighth straight month.

After adjusting for inflation, the home-price index has sunk to a level not seen since 1999.

“Folks are having so much difficulty in getting financing for a home,” said Mark Vitner, senior economist at Wells Fargo. “It may be early next year before prices hit bottom.”

Another obstacle to prices: A delay in processing foreclosures. Homes in foreclosure sell for, on average, 20 percent discounts. When they do, they pull prices down further.

The housing sector is struggling even as the overall economy is in the midst of a steady but slow recovery.

But housing also affects the broader economy. Homes account for about a third of household wealth. So when prices fall, they have “important spillover effects on other sectors of the economy,” said Yelena Shulyatyeva, an analyst at BNP Paribas. Those sectors include consumer spending and state and local property tax collections.

An article by
By DEREK KRAVITZ – AP Real Estate Writer stated that

Read more: http://www.bradenton.com/2011/06/01/3237915_p2/home-price-index-at-lowest-since.html#ixzz1PGSNZmtg

Existing Home Sales Ease (Click Here)

Please contact us, Marie Avery and Terri Ayers, at 941-358-1818 or email Homes@AveryAndayers.com if you have any questions about our Florida Real Estate market.

Manatee County is located just south of the Tampa Bay area. Surrounded by water from the Gulf of Mexico, Palma Sola Bay and the Manatee River, Manatee County is a fabulous place for water sports, beautiful white sandy beaches and enjoying the cool breezes off the water.

Manatee County has it’s own airport for access from many cities. The Sarasota-Bradenton International Airport (SRQ). It is surrounded by waterways. On the north, the Manatee River which is brackish and visited by many Manatees. On the northwest side of the city, it is bordered by Palma Sola Bay with the barrier island of Anna Maria Island. It is connected to St. Petersburgh on the north via the Sunshine Skyway. To the south, it borders Sarasota. I-75 makes it an easy commute to Tampa, approximately 45 minutes northeast.

Bradenton is the largest city and is the County seat of Manatee County. To the north across the manatee river lies the city of Palmetto, Ellenton and Parrish. To the east of Bradenton is the up and coming area of Lakewood Ranch. To the west, is the barrier island Anna Maria, known world wide for it’s laid back charm and inviting beaches.

Click on Our Newsletter to get up to date information on market trends.

Read More About Manatee County
Contact Us to assist you with all your Manatee County Real Estate needs!

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So much to do when you live, work and play in Sarasota. Location of many cultural events, museums and theatres. Our expert team can offer you countless ways to get to know Sarasota & her Islands!

Sarasota is a city located in Sarasota County on the southwestern coast of Florida. It’s current official limits include Sarasota Bay and several barrier islands between the bay and the Gulf of Mexico.

There are several islands that are part of Sarasota County. They are separated from the mainland Sarasota city by Sarasota Bay. These islands that are commonly known as keys include Siesta Key and Lido Key. And also the longest and most famous, Longboat Key, who’s northern most point stretches into Manatee County. These keys are famous worldwide for the quality of their sandy beaches.

Sarasota is a widely known cultural mecca. It offers opera, plays, international cuisine restaurants and an active downtown, that has frequent, streetside art shows and musicians.

It has beautiful, warm, florida sunshine weather with spectacular water views.

Click on Sarasota Real Estate News to get up to date information on market trends.

Contact Us to assist you with all your Sarasota Real Estate needs!

Click here to start your search for your dream home in Sarasota

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Comparing the team approach to the single agent model can illustrate the advantages of combining and leveraging resources, individual talents, office systems and synergy to provide superior real estate transactions.

Contrary to popular belief, Realtors are not on call 24/7. In today’s market of labor intensive task such as managing short sales, a single agent can easily be overwhelmed with just a few transactions.

Real estate teams can share and delegate this task to provide seamless customer relationships. At Avery-Ayers and Associates each task is optimized to form a system of office procedures designed to track and produce consistent results for our clients.

By combining a professional group with individual specializations, our sales team can far exceed the reach of a single agent. As these talents are brought to the table, customers are better served through collective knowledge. Home buyers can be better matched with the specialty of buyer’s agents. Sellers, on the other hand, can leverage the creative collaboration of a group in the listing and marketing of their property. Sellers and buyers can also have the benefit of multiple years of combined experience during the negotiating process that leads to a successful outcome. All clients benefit from the structure and synergy of the team environment.

As today’s consumer rebounds and the real estate industry adapts to market recovery, more teams will emerge as traditional agents consolidate. Our group of real estate professionals at Avery- Ayers and Associates are well positioned to meet increasing demand and provide the transparency and accountability necessary in today’s real estate sales transaction.

Please contact us, Marie Avery and Terri Ayers, at 941-358-1818 or email Homes@AveryAndayers.com if you have any questions about our Florida Real Estate market.