We've all be waiting to see what would transpire and finally it appears that the vote against the phantom tax to prevent mortgage lenders from issuing a W4 for the loss they accept in a short sale, foreclosure or rescindence of deed in lieu of foreclosure has passed. As stated below in the National Association of Realtors Daily Real Estate News, homeowners who are in financial crisis will not be faced with unfair tax liability. Up until now, homeowners who lost their homes to foreclosure and short sale would be faced with a W4 for the difference in the mortgage balance and the amount actually settled on resulting in an income tax obligation. This is the best news I've heard with regard to these pressing issues caused by the reduction in property values we have experienced in the past two years combined with the increase in foreclosures across the country.
Daily Real Estate News | October 5, 2007
House Votes to Eliminate 'Phantom Tax'
The U.S. House of Representatives voted on Thursday to get rid of a tax burden for home owners who have had a loan forgiven or foreclosed on their home because they were unable to make their mortgage payments. The Mortgage Cancellation Tax Relief Act, H.R. 3648, passed by a vote of 386 to 27. Similar legislation is making its way through the Senate.
Since the early 1990s, NAR has supported such measures to eliminate the "phantom tax" on financially-strapped home owners.
“Congress made a good decision that will affect many Americans who find themselves in a truly bad situation,” says NAR President Pat V. Combs. “Changing the IRS code is an issue of fundamental fairness. It would relieve a tax burden at a time when an individual or family has experienced a true economic loss arising from the sale or loss of their home. These families are already in financial distress and are most likely unable to pay additional taxes.”
The current tax code requires a lender who forgives debt to provide a Form 1099 to the IRS stating the amount the borrower has been forgiven. This disclosure applies whether it is a short sale, foreclosure, deed in lieu of foreclosure or any similar arrangement that relieves the borrower of the obligation to pay some portion of their debt. If the property is sold at foreclosure or is sold for less than was borrowed, that difference is considered income and is subject to the tax.
H.R. 3648 would ensure that any amount forgiven on mortgage debt secured by a principal residence will not be taxed. The legislation has a provision to safeguard against abuses. That provision is similar to one that already exists for commercial real estate owners and would treat commercial and residential property equally.
"This is not only about the subprime turmoil we are currently experiencing," Combs says. "This is also about families who have lost their home or a need to sell that home for less than the amount owed on their home mortgage because of job loss, divorce, health issues, a decrease in the value of the home or other unfortunate circumstances. Clearly it is unfair to tax people on phantom income when they most likely have no cash with which to pay the tax."
In other news, another bill has been sent to the House Judiciary Committee that would revise the bankruptcy code to allow judges to order mortgage lenders to ease terms for home owners in bankruptcy proceedings. Currently, mortgage lenders can foreclose against a home owner in default 90 days after the filing of bankruptcy.
— REALTOR® Magazine Online
Friday, October 5, 2007
Thursday, October 4, 2007
GREAT News for a Sluggish Real Estate Market!
Historically when the real estate market goes down, the stock market goes up and vice versa.
I was so pleased last night, to see that Lennar Homes had an increase in their stocks up 7.25 (mol). This is some of the first signs of a shifting market as the market actually fell as a whole by almost 76 points.
I have been saying for the past few weeks that it is imperative to buy now - well, here's some proof that what I've said is true! It is important to act now before the rest of the world jumps on board and the market becomes a seller's heaven again - and it will, rest assured.
If you have been waiting for the bottom to fall out, it has already happened. The real estate market is starting to come back and it is crucial to make your deals NOW before everyone else gets the message that they don't have to take a low offer and that there are more buyers than there were.
If you are looking for a home in Tampa Bay, I am a 20-year resident of the area and welcome the opportunity to find you the home of your dreams. If you are looking for a keen investment, now is the time to act! Don't wait for the rest of the world to jump on board or you will have passed up the best opportunites!
The market may end up slow to recover but as soon as word is out that we are on the recovery end, there will be a stampede of buyers who have been waiting for their golden opportunity.
Even though this very encouraging news is in my face, I keep seeing articles in the media that contradict this. The following article entitled "How to Play the Real Estate Bounce-Back" was printed in the October 2007 issue of Business 2.0, which states on the cover that it is their "final issue". You can read the article by going to http://mag1.olivesoftware.com/am/getBookEnc.asp?Path=QlNOLzIwMDcvMTAvMDE=&BookCollection=BSN_AM&ReaderStyle=BSNMag&browserWindowWidth=1430&browserWindowHeight=850
The article states that there are 10 cities that represent the strongest investment potential and Tampa is not listed. This may be the way it was when the article was written but our Tampa market is already experiencing an recovery so all the media had better be prepared.
I was so pleased last night, to see that Lennar Homes had an increase in their stocks up 7.25 (mol). This is some of the first signs of a shifting market as the market actually fell as a whole by almost 76 points.
I have been saying for the past few weeks that it is imperative to buy now - well, here's some proof that what I've said is true! It is important to act now before the rest of the world jumps on board and the market becomes a seller's heaven again - and it will, rest assured.
If you have been waiting for the bottom to fall out, it has already happened. The real estate market is starting to come back and it is crucial to make your deals NOW before everyone else gets the message that they don't have to take a low offer and that there are more buyers than there were.
If you are looking for a home in Tampa Bay, I am a 20-year resident of the area and welcome the opportunity to find you the home of your dreams. If you are looking for a keen investment, now is the time to act! Don't wait for the rest of the world to jump on board or you will have passed up the best opportunites!
The market may end up slow to recover but as soon as word is out that we are on the recovery end, there will be a stampede of buyers who have been waiting for their golden opportunity.
Even though this very encouraging news is in my face, I keep seeing articles in the media that contradict this. The following article entitled "How to Play the Real Estate Bounce-Back" was printed in the October 2007 issue of Business 2.0, which states on the cover that it is their "final issue". You can read the article by going to http://mag1.olivesoftware.com/am/getBookEnc.asp?Path=QlNOLzIwMDcvMTAvMDE=&BookCollection=BSN_AM&ReaderStyle=BSNMag&browserWindowWidth=1430&browserWindowHeight=850
The article states that there are 10 cities that represent the strongest investment potential and Tampa is not listed. This may be the way it was when the article was written but our Tampa market is already experiencing an recovery so all the media had better be prepared.
Tuesday, October 2, 2007
Happenings this month in Channelside District, Tampa
I found this article at Fangoria.com about an upcoming event that will be taking place in Channelside soon for Halloween! I hope you find it interesting!
October 1: Founder talks FL Halloweenpalooza horror fest
Festival founder and coordinator Rick Danford of Enigma Films contacted Fango to give us the details on his Halloweenapalooza 2007/Halloween Horror Picture Show, which runs October 19-20 in Tampa, FL. Produced in partnership with Channelside Cinemas and IMAX, the first annual Halloweenpalooza and fifth annual independent horror film festival will feature celebrity guests (including scream queen Tiffany Shepis and screenwriter/actor Trent Haaga) doing the signing-and-picture thing, trick-or-treating, a scavenger hunt, vendors, live music and more.
Danford says of the festivities, which kick off at 6 p.m. on Friday the 19th at Channelside Cinemas (615 Channelside Drive), “Every year, we try to bring to the Central Florida area the very best the indie horror world has to offer. We’ve featured films from all over the world, and many have made their festival debut with us. Our basic function is to provide an outlet for the indie horror filmmaker to screen his or her work in front of the fans and to also give them a chance to meet, greet and network with those fans, as well as other filmmakers.”
Films screening this year at HHPS07 include Marcus Koch’s killer-clown pic 100 TEARS (with the director set to introduce), Alan Rowe Kelly’s THE BLOOD SHED, Anthony Falcon’s 99 PIECES, Alex Orr’s BLOOD CAR, THE BUNKER (including a Q&A with Miami-based director Joe Monks), DEATH ON DEMAND (introduced by star Krista Grotte), GIMME SKELTER, GHOST MONTH, HOODOO FOR VOODOO (debut of a re-edited version), the titillating-sounding strippers-vs.-the-undead flick ZOMBIES! ZOMBIES! ZOMBIES!, a short film program and more.
“I am just a huge fan of the genre,” says Danford of his approach to the festival, “and I love giving as many of these hardworking filmmakers their chance to get some feedback and to allow their films to be seen by the people who appreciate them most. They deserve it.” For more info, visit the fest’s official site linked above. —Sean Decker
October 1: Founder talks FL Halloweenpalooza horror fest
Festival founder and coordinator Rick Danford of Enigma Films contacted Fango to give us the details on his Halloweenapalooza 2007/Halloween Horror Picture Show, which runs October 19-20 in Tampa, FL. Produced in partnership with Channelside Cinemas and IMAX, the first annual Halloweenpalooza and fifth annual independent horror film festival will feature celebrity guests (including scream queen Tiffany Shepis and screenwriter/actor Trent Haaga) doing the signing-and-picture thing, trick-or-treating, a scavenger hunt, vendors, live music and more.
Danford says of the festivities, which kick off at 6 p.m. on Friday the 19th at Channelside Cinemas (615 Channelside Drive), “Every year, we try to bring to the Central Florida area the very best the indie horror world has to offer. We’ve featured films from all over the world, and many have made their festival debut with us. Our basic function is to provide an outlet for the indie horror filmmaker to screen his or her work in front of the fans and to also give them a chance to meet, greet and network with those fans, as well as other filmmakers.”
Films screening this year at HHPS07 include Marcus Koch’s killer-clown pic 100 TEARS (with the director set to introduce), Alan Rowe Kelly’s THE BLOOD SHED, Anthony Falcon’s 99 PIECES, Alex Orr’s BLOOD CAR, THE BUNKER (including a Q&A with Miami-based director Joe Monks), DEATH ON DEMAND (introduced by star Krista Grotte), GIMME SKELTER, GHOST MONTH, HOODOO FOR VOODOO (debut of a re-edited version), the titillating-sounding strippers-vs.-the-undead flick ZOMBIES! ZOMBIES! ZOMBIES!, a short film program and more.
“I am just a huge fan of the genre,” says Danford of his approach to the festival, “and I love giving as many of these hardworking filmmakers their chance to get some feedback and to allow their films to be seen by the people who appreciate them most. They deserve it.” For more info, visit the fest’s official site linked above. —Sean Decker
Subscribe to:
Posts (Atom)