Super Recycling drop off tomorrow

One man's junk is another man's treasure.

The 2009 Fall Super Recycle Round Up this Saturday, November 21st. Preston Hollow neighbors can drop a huge variety of items to Oak Hill Academy on Midway Road between Walnut Hill and Northwest Hwy. Why put your stuff into a landfill when it can be reused?

Organizations from Goodwill to Samsung will accept electronics, building materials, tires, toys, clothes, books, batteries, computers, etc. from 10 a.m. until 4 p.m.

Is your home ready for winter?

Even in Dallas, homeowners need to be prepared before winter takes hold. You probably know that there are a handful of maintenance tasks you need to complete before cold conditions hit. A few essential must do's for your home are:

1) Have the Roof Inspected - A professional can identify roof damage while it still costs hundreds, instead of thousands, of dollars to fix. This inspection should also tell you the condition of your attic and ventilation. If you don't want to pay for a professional inspection, at the very least conduct your own visual inspection to look for signs of wear-and-tear.

2) Clean your Gutters - Probably the most common and most neglected task of the bunch, don't take your gutter cleaning for granted. Proper cleaning involves more than just throwing easy-to-reach leaves out of the channel. Flush your downspouts and keep an eye out for any signs of gutter deterioration.

3) Insulate and Seal Windows - If you don't already have double-pane windows, it's time to jump on the bandwagon. With heating costs, few home improvements pay for themselves as quickly as replacement windows. If you simply can't afford it, use thick plastic covers or blankets to help out in the meantime. And regardless of the number of panes, take a look at your window frame. It may need new sealant.

4) Seal and Inspect Doors - Some homeowners pay so much attention to their windows that they forget their doors. Take a look at your entry door for air leaks and use weather stripping to help seal the joints. Take a look at your garage door, too, for both insulation and home security value.

5) Evaluate your Heating System - This one has a ton of upside. Catching problems with your heating system before winter hits almost always saves a bunch of money and will give you some time to plan for a replacement system, if necessary. If nothing else, at least change the filter, no matter the age or condition of your system.

6) Winterize Your Landscaping - Properly close your swimming pool, winterize your sprinkler system, and prepare your garden for next year's planting.

7) Emergency Preparation - Winter can mean the possibility of snow and/or ice storms. Have an emergency kit, complete with food and water, a reliable radio, and first-aid kit. [where: 75230]

The Lowdown on Home-Buyer Tax Credits

Here are some answers to common questions about the new rules on Home-Buyer tax credits.

What has stayed the same in the new law?

1) First-time homebuyers still get a credit of as much as 10% of the purchase price, up to a maximum $8,000. "First-time" means people, including both partners of a married couple, who haven't owned a principal residence for three years before the purchase.

2) All taxpayers who claim a credit must use the home as a principal residence for the next three consecutive years.

3) The credits offer dollar-for-dollar reductions of tax and are refundable. This means that a taxpayer who doesn't pay enough tax to offset the credit can get a refund. For example, if you qualify for an $8,000 credit but only owe $5,000 in tax, you could receive a $3,000 check from the Internal Revenue Service.

4) Under the new law, as under the old, 2009 home buyers may claim the credit on either their 2008 or 2009 returns, and 2010 buyers may claim the credit on either their 2009 or 2010 returns.

5) Taxpayers do not qualify for a credit if they buy from a lineal ancestor or descendent, including parents or grandparents and children or grandchildren.

What has changed?

Several important features took effect as of Nov. 6:

1) To take advantage of the tax credits, a buyer must have a contract in place before May 1, 2010, and the deal must close before July 1, 2010. No further extension is expected.

2) The price of the house is now capped. For purchases made after Nov. 6, no credit is available for any home costing more than $800,000.

3) There is now a tax credit for repeat buyers as well as for first-time buyers. Taxpayers who have lived in one residence for five consecutive years of the past eight can now qualify for a tax credit of as much as 10% of the purchase price, up to a maximum $6,500, of a new principal residence. The new home does not have to cost more than the old one.

4) Income limits for people who qualify for a tax credit are far more generous than under the previous law. For single filers, the credits now phase out between $125,000 and $145,000 of modified adjusted gross income; for married couples, the range is $225,000 to $245,000. For most people, modified adjusted gross income will be the same as adjusted gross income.

5) The new law contains anti-abuse measures designed to stem fraud, which became a problem with the previous home-buyer tax credit. Most buyers must be 18 or older, and no taxpayer may take a credit if he or she is claimed as a dependent on someone else's return. Taxpayers taking the credit will also have to furnish proof of purchase. According to Robert Dietz of the National Association of Home Builders, this will usually be a HUD-1 form.

6) People taking the tax credit, as under the old law, aren't allowed to buy a home from a lineal ancestor or descendent. The new law, applying to purchases made after Nov. 6, also says a person may not take a credit if the home is purchased from a spouse or the spouse's lineal relatives.

If I bought a house last spring or summer, can I get a tax credit?

You qualify if you are a first-time buyer and meet the other requirements, but not if you are a repeat buyer. The new credit for repeat buyers applies only to purchases made after Nov. 6.

Does the person who claims the credit have to use the home as a principal residence?

Yes.

If I buy a new home and live in it, do I also have to sell my old one in order to take advantage of the credit?

This is unclear. The law appears to allow repeat buyers to retain their old home, for which no tax credit was given, while claiming a credit for the new one. What is clear is that if you buy a new home using the credit, you must use it as your principal residence.

How may the credits be allocated among two or more unmarried buyers?

This also is unclear. But if the IRS adopts the rules that applied to the previous tax credit, which are detailed in IRS Notice 2009-12, there is room for planning. The notice says that taxpayers may use "any reasonable manner" to allocate the credit. It even provides an example in which two unmarried buyers allocate the credit to the lower earner in order to qualify for it.

I need the credit refund to help make the down payment. What can I do?

There's no rushing the IRS. But one option is to adjust your current withholding from your paychecks to reflect the fact that you will be taking the credit later. But be careful: If you don't make the purchase, then you may owe interest and penalties. Consult a tax adviser.

Is it possible to qualify for a credit if I am building a home on a lot I already own?

Yes, according to the National Association of Home Builders. The purchase date is usually considered to be the date of first occupancy, so you would need to move in before July 1, 2010.

May I take a credit if I am building a large addition to my home?

No; these credits apply only to the purchase of a home.

Where can I get more information?

Go to federalhousingtaxcredit.com, a Web site sponsored by the National Association of Home Builders. You can also look for links from the IRS's home page, www.irs.gov, or search for Homebuyer Credit. Another option is to consult a professional tax adviser.

[where: 75230]

Dallas House Hunters

Today was an exciting first day of filming a Dallas episode for HGTV's House Hunters. This reality show is one of my favorites and I'm filming it with one of my favorite buyers ever.

Exhausting but fun, I think it will make for a great show. Stay tuned for the air date in 2010!

[where: 75230]

Aristotle & the Economic Outlook

Greek philosopher Aristotle

wrote to his son;

.

.

"For one swallow does not make a spring,

nor does one day;

and so too one day, or a short time,

does not make a man blessed and happy."

Aristotle believed that happiness isn't a temporary feeling experienced over a limited period, but the cultivation of virtue and accomplishment over a lifetime.

Today, the National Bureau of Economic Research (NBER) follows Aristotle's approach in determining the beginning and end of an economic cycle. The economy peaked and the current recession began in December 2007, but the NBER didn't conclude this publicly until 11 months later. It may be that this spring, the NBER will declare July 2009 to have been the end of the current recession, with the U.S. resuming a growth course at that point.

In three of the previous four recessions, the economy experienced a quarterly blip of positive growth followed by at least one more negative reading before the recession was finally over. We won't really know where we are now until the dust has settled in six to nine months.

[where: 75230]

Neighborhood Lost & Found

Two separate neighborhoods have lost and found an unusual combination of pets today.

A friend on Waggoner drive has found a domesticated black & white rabbit in their yard. A different neighbor is missing their 13 lb. black & white cat Oreo.

And the moon looks full.

[where: 75230]

Super-Offend-onomics

I used to like the thought-provoking guys who made economics cool with their best-selling book Freakonomics. They are back with a sequel, Super-Freakonomics. And their offensive comparison of Realtors and pimps just stinks.

Using some bizarre comparisons from two completely unrelated studies, they’ve decided that a pimp provides more value than a real estate agent. Basically, they determined that Chicago prostitutes working with a pimp earn more money for less work that those working solo. The authors declared that even after paying a 25% commission, prostitutes with a pimp are better off.

They also site a Wisconsin study that says real estate agents don’t fetch higher prices. National statistics contradict that report. However, citing those studies, these bozos claim that "... a pimp's services are considerably more valuable than a Realtor's."

While I don’t personally know any pimps, I think our services and products are vastly different. Their warped comparisons lead me believe that the authors have had more success with pimps than with good real estate agents.

Mortgage Limits Passes

Extension of the Higher Temporary Mortgage Limits has passed. It is now on the way to President Obama for signature. The net effect will be that the mortgage limits would remain at the same level today through 2010. They could, of course, increase in areas with higher house prices (like Dallas).

And the tax credit proposal (included in the unemployment extension bill) may be finalized next week. Some people believe this is a very positive step. Others feel it won't get buyers 'off the fence'. Details of the new tax credit program are:

• First-time homebuyers will continue at $8,000
• Tax credit for “move up” purchasers will be up to $6,500
• Those buyers must have used their previous home as a principal residence for 5 of the 8 previous years.
• Income limits increased and are the same for first-time and “move up” purchasers: $125,000 for single filers/$225,000 for joint filers
• Limitation on eligible home prices has been increased to $800,000
• Time Frame: December 1, 2009 to April 30, 2010 plus 60 day extension if binding contract is in place by April 30, 2010
• Anti-fraud measures have been added

Below are some of the highlights (as they pertain to homebuyers) of the Emergency Unemployment Compensation Extension Act. It is supposed to be considered by the Senate early next week and will still have to be passed by the House.

Homebuyer credit - Under current law, the First-Time Homebuyer Tax Credit is a refundable tax credit available to an individual buying a principal residence for the first time. The credit phases out for individuals with income between $75,000 and $95,000 and for joint filers with income between $150,000 and $170,000. For purchases made on or after January 1, 2009 and before December 1, 2009, the tax credit is equal to the lesser of $8,000 or 10 percent of the purchase price of the residence. Individuals must repay the credit only if the principal residence is disposed of within 36 months of purchase. For purchases made on or after April 9, 2008 and before January 1, 2009, the tax credit is equal to the lesser of $7,500 or 10 percent of the purchase price of the residence. Individuals purchasing homes in 2008 are also required to repay the credit over 15 years. This proposal would extend the availability of a homebuyer credit to homes under a binding contract before April 30, 2010, allowing 60 days to close.

The other modifications are as follows:

1) The credit is phased out for individuals with income above $125,000 and for joint filers with income about $225,000.

2) An $8,000 credit is available to all first-time homebuyers.

3) A $6,500 credit is available to homebuyers who have been in their current residence for the last five years or more.

4) The credit is available only for the purchase of principal residences with a purchase price of $800,000 or less.

5) The proposal incorporates Senator McCaskill’s proposal in the Service Members Home Ownership Tax Act of 2009 to eliminate the recapture requirement 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 and to allow military personnel serving outside the United States for at least 90 days in 2009 or 2010 one additional year to qualify for the credit.

6) The proposal includes anti-fraud language.

7) The proposal also includes math error authority for the IRS.

This proposal is estimated to cost $10.8 billion over 10 years.

[where: 75230]

Too Soon For Christmas?

I drove the neighborhood this past weekend and took photos of homes decorated for Halloween for the Preston Hollow Halloween web page. Lots of spirited homes ranging from the cute to the scary.

But what a surprise to see two homes already decorated for Christmas. I'm no Scrooge, but this seems kind of silly. While Christmas decorations are already in some stores, I didn't think that folks actually started decorating their homes. Anyone else a little offended by what seems to be a rush past Thanksgiving and straight to the big commercial season? [where: 75230]

Preston Royal 7-11 closing

Say good-bye to another local icon. Our only neighborhood convenience store is closing at the end of this week. First our last full service gas station and and now our twinkie supplier!

No more watching the St. Mark's boys risk their lives running across Royal Lane for a slushie. And I don't know where we'll buy our lottery tickets. No news on what will happen to the site, but I'll let you know as soon as I find out.

[where: 75230]