Sep 27, 2009

Moving & Tax Deductions



Some, but not all, moving expenses can be allowable tax deductions.
The IRS allows deductions for some of the costs associated with a move to accommodate a job in a new location. However, there are two tests which must be met in order to qualify for deductions.
1 - Distance Test
To qualify for a deduction, your new workplace must meet a 50 mile test. The distance between the old home and old work minus the distance between the old home and the new work must be more than 50 miles. For example, if the commute to the old workplace was 8 miles, a commute from the previous home to the new workplace must be at least 58 miles. If the person did not have a job before moving, then the new job must be at more than 50 miles from the previous home.
2 - Time Test
A person must work full time in the local area of the new workplace for at least 39 weeks during the 12 months right after the move. There are exceptions to this and other rules apply for those that are self-employed. If you are not sure if you meet the requirements to deduct your moving expenses it is best to check with a tax advisor or visit the IRS website, Publication 521, and Form 3903 for more details.
If you pass both tests, then some expenses may be deductible:
  • Costs for packing, crating and moving of your household goods
  • Up to 30 days of storage and insurance for those household goods
  • Transportation and lodging (but not meals) while traveling to your new location
If you make a move in 2009, check with a tax advisor before deducting your expenses to make sure you take the right deductions. According to Forbes magazine, one of the top reasons for IRS tax audits is claiming too much for itemized deductions, including deduction of moving expenses.
For tips on a smooth move visit my web site www.LydiaPlayer.com .
[where: 75230]

Sep 24, 2009

State Fair of Texas 2009 Discounts

The State Fair of Texas opens tomorrow, September 25th and goes through October 18th. Tickets are $15 for adults. Advance purchase tickets are $13.50. A Season Pass is $29.95.

Here are the discount deals this year:

Opening Day: Sept. 25th - Bring a full 20 oz. Coca-Cola product for donation to the North Texas Food Bank containers at the Fair admission gates and enter the State Fair for $4 admission per donation per person.
Dr. Pepper $3 Tuesdays: Every Tuesday, bring an empty Dr. Pepper can and enter for $3 admission. Some rides are discounted.
Dr. Pepper $5 after 5pm: Bring an empty Dr. Pepper can to any State Fair admission gate after 5pm and enter for $5 admission.
Kroger "Three for $1" each Wednesday: Admission is $1 for each visitor bringing 3 cans of food for area food banks.
Coke $4 Thursday: Bring an empty 20 oz bottle of a Coca-Cola product and enter the Fair for $4 admission.
FREE Thursdays for Senior Citizens: Senior Citizens 60 years and older get in to the State Fair free each Thursday.
FREE Thursday admission with a Cinemark Theater ticket stub.
Any Day - McDonald's offers $4 off General Admission with one of their State Fair coupons any day of the Fair. A free child ticket (with purchase of general admission) coupon is also distributed by McDonald's. Offer may not be combined with any other offer.
Stop by the Creative Arts building on Saturday, Oct. 3rd when I'll be judging the home made ice cream contest. Yum!
For more information on events, schedules, general information and maps visit http://www.bigtex.com/ .

Sep 22, 2009

I've been busy knocking & answering

“Even when opportunity knocks,
you have to get up off your seat
and open the door”
[where: 75230]

Sep 13, 2009

North Dallas boundaries

I've lived in North Dallas long enough to remember shopping at Sanger Harris in Preston Center and attending a moving at the theater on Inwood near Forest. I still have a skirt I bought at Lester Melnick in Preston Royal. So I can speak with some authority about North Dallas and it's neighborhoods.

For those who are not familiar with this area, North Dallas runs from Northwest Highway (where University Park ends) to LBJ Freeway (Highway 635). Anything north of LBJ is considered Far North Dallas. I know that people tend to think that North Dallas extends all the way to Frisco - but it doesn't. People just tend to lump the entire area together so that they don't have to explain where Plano and Lewisville are to outsiders. Far North Dallas ends somewhere shy of Oklahoma.

The eastern side of North Dallas is Central Expressway (I-75). Anything east of Central is considered East Dallas, Lake Highlands, etc. The western boundary is Midway Road. This boundary is a little more gray, but Realtors agree that the area west of Midway is Northwest Dallas.

Preston Hollow lies within North Dallas. I don't care if Google Maps shows that Preston Hollow is west of Midway Road - they're wrong. Zillow doesn't get it right either. "Old Preston Hollow" is basically from Northwest Hwy to Walnut Hill (encompassing a little of Bluffview & Devonshire) and from Inwood Road on the west to just east of Preston Road. The area that most people consider to be Preston Hollow today is from Northwest Hwy to Royal Lane and from Midway Road to Hillcrest. A few folks like to push the boundaries to Forest Lane.
North Dallas is laid out in one mile grids. From the south, it is a mile from Northwest Highway to Walnut Hill, from Walnut Hill to Royal Lane, and from Royal to Forest Lane. From the east, it is a mile from Hillcrest Road to Preston, Preston to Inwood, and Inwood to Midway.
[where: 75230]

Sep 10, 2009

Your mortgage & the IRS

Rumor has it that the Internal Revenue Service is more closely examining how taxpayers are reporting mortgage interest deductions. If your tax returns include high deductions for mortgage interest, the IRS may be examining it more closely. Reportedly, they are enforcing obscure rules that most homeowners and their accountants are unfamiliar with.

The mortgage deduction rules are mind-boggling and the calculations are so complex and require precises records that many home owners may have trouble producing and translating them. Don't try this at home by yourself.
If you have borrowed more than $1 million in mortgages and/or home equity loans since 1987 (the year deductiblity limits were enacted), experts are advising that you consult a tax expert as to which loans are tax deductible.

I'm not an accountant, but I know the IRS folks are not ones that you want to mess with. People can file bankruptcy, leave creditors holding the bag, walk away from their debts, etc. Most believe their homestead can't be touched - and they are mostly right. But the IRS will always get their money - and they can take your home.
[where: 75230]

Sep 8, 2009

Headlines heard around the world

If you missed the news over the long weekend, our mortgage friend Barbara Meager provides her version of the important news from around the world.

Here's the latest:

  • No uniform recovery for housing.
  • Loan sharks circle credit-starved consumers.
  • Students borrow more than ever for college.
  • France and Germany vow to rein in bankers' bonuses.
  • Life policy sales drop is sharpest in 67 years.
  • Bottled-water price war heats up as demand falls.
  • Car makers upbeat as sales rebound.
  • Commercial real estate lurks as next potential mortgage crisis.
  • Larger thighs may reduce the risk of heart disease.

Now you know.

[where: 75230]

Sep 7, 2009

Smells like a Sale

Never underestimate the power of the scent. I've said it a hundred times: It doesn't matter how beautiful your home is, if it doesn't smell beautiful as well. Whether you know it or not, your home has an aroma. And when you're selling, that aroma needs to be pleasing to everyone.

Stewart Lytle's story in the Dallas Morning News about the affects of odors when selling your home should be included in every new home listing packet.

An unpleasant smell in a home will stop buyers in their tracks - in the foyer. And while air fresheners can help, the source of the offending odor must be remedied. When selling your home, give it a complete cleaning - from carpets to air filters. Open the windows and air it out.

The best air freshener scents for selling your home are fresh linen or fresh rain aromas. Stay away from floral scents, however vanilla or pumpkin pie are both agreeable to most people's noses. Stock up in the fall on the pumpkin scent because it can be difficult to find the rest of the year. And 'clean' is always a nice smell.
[where: 75230]

Sep 4, 2009

Texas Economy Continues to Outperform the Nation

New reports released this week from the Texas Comptroller’s Office support a positive outlook for the Texas economy, which is the world’s 11th largest!
Although both the U. S. and Texas economies have contracted in 2009, Texas continues to perform better than the nation. Positive indicators highlighted in the Comptroller’s Report include:
  • The gross product of Texas expanded almost twice as fast as that of the U.S. economy in 2008. The Texas rate was 2.0% compared to 1.1% for the nation.
  • Texas added 37,900 jobs in July 2009, which was the first month-to-month job increase in the state since October 2008.
  • The 7.9 percent unemployment rate in Texas for July was significantly lower than the U.S. rate of 9.4 percent.
  • The unemployment rate for Texas has been at or below the national rate for 31 consecutive months.
  • Consumer confidence in Texas is also stronger than across the U.S. In July 2009, the U.S. index was 46.6. The regional index, which includes Texas, was 73.3.
This report from the Texas Comptroller’s Office follows the announcement last week that both new and existing home sales in North Texas increased in July. New home sales increased in July 9.6 percent to 433,000 sold; existing home sales increased 7.2 percent to 5.24 sold.
[where: 75230]

Sep 2, 2009

I have a little beef

Recent reports about the real estate market suggest improvements on several fronts. Prices of single family homes rose in June, recording an increase for the second month in a row. New home sales were up and the available home inventory is decreasing. The rise in the consumer confidence index by 7 points in August was also a positive signal.

So why are so many media reports crediting only the first-time home buyer program for the increase in sales? Its the same gloom and doom headlines we've been reading for over a year.
First time home buyers typically purchase the least expensive properties - which would reduce the average home price for recent sales instead of increasing the average sales price. I think people looking for great buys across the board are making their moves.

Whether the improving market will continue will depend on several factors outside of the first-timer's incentive. The specter of uncertainty still looms large. Unemployment claims remain high, personal income is flat, and spending rose only marginally in July. Even more significantly, the federal budget deficit is expected to balloon to an incredible $9 trillion. That needs to be brought down slowly with minimal impact on economies across the globe. The government has to find new avenues to earn revenue other than tax increases and ensure job growth on a longer-time horizon.