Tax Time ...

Well the time is here again that you have to file those taxes. If you are like me it should be completed by tomorrow and sent out. I guess it's my way of giving the IRS a little more time to use my money!

Here are some last minute tax tips that I found that you might be interested in that I found on the IRS website:

Tips for Last-Minute Filers

IRS TAX TIP 2008-62
With the tax filing deadline close at hand, the IRS offers some tips for those still working on their paper tax forms:
Consider filing electronically instead of using paper tax forms
Put all required Social Security numbers on the return
Double-check your figures
Sign your form
Attach all required schedules
Send your return or request an extension by the April filing deadline
Choosing to e-file your tax return instead of preparing a paper tax form is the best step you can take to ensure that your return is accurate and complete.
When you file a paper return, the numbers to check most carefully on the tax return are the identification numbers — usually Social Security numbers — for each person listed. This includes the taxpayer, spouse, dependents and persons listed in relation to claims for the Child and Dependent Care Credit or Earned Income Tax Credit. Missing, incorrect or illegible Social Security Numbers can delay or reduce a tax refund.
Taxpayers filing paper returns should also double-check that they have correctly figured the refund or balance due and have used the right figure from the tax table.
Taxpayers must sign and date their returns. Both spouses must sign a joint return, even if only one had income. Anyone paid to prepare a return must also sign it.
People sending a payment should make the check out to "United States Treasury" and should enclose it with, but not attach it to the tax return or the Form 1040-V, Payment Voucher, if used. The check should include the taxpayer’s Social Security number, daytime phone number, the tax year and the type of form filed.
By the April due date, taxpayers should either file a return or request an extension of time to file. Remember, the extension of time to file is not an extension of time to pay.
Forms and publications and helpful information on a variety of tax subjects are available around the clock on the IRS Web site at IRS.gov.
Remember that for the genuine IRS Web site be sure to use .gov. Don't be confused by internet sites that end in .com, .net, .org or other designations instead of .gov. The address of the official IRS governmental Web site is www.irs.gov.
Links:
Form 9465, Installment Agreement Request (PDF 100K)
Form 1040-V, Payment Voucher (PDF 47K)
Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return (PDF 50K)
Official Payments Corporation
Link2Gov

Understanding Capital Gains -- Real Estate edition

When you sell a stock, you owe taxes on your gain — the difference between what you paid for the stock and what you sold it for. The same holds true when selling a home (or a second home), but there are some special considerations.How to Calculate GainIn real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:

1. Purchase price: _______________________

The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.

2. Total adjustments: _______________________

To calculate this, add the following:
Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage.
Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.
Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.

3. Your home’s adjusted cost basis: _______________________

The total of your purchase price and adjustments is the adjusted cost basis of your home.

4. Your capital gain: _______________________

Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.
A Special Real Estate Exemption for Capital GainsSince 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:

· You have lived in the home as your principal residence for two out of the last five years.

· You have not sold or exchanged another home during the two years preceding the sale.

· You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.

OPEN House 4/6/2008 - 172 Lemoyn Ave., Rochester, NY

Open from 1 p.m. to 3 p.m. this Sunday -- stop on down and take a look at this great ranch!!!



Thanks,



Michael Walker

Century 21 - Premier Properties

585-645-1258

http://www.mikewalkerhomes.com/

Mike@MikeWalkerHomes.com

Take the Stress Out of Homebuying

Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.

1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality. You'll be spending a lot of time with this person -- make sure that you like and trust them!

2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won’t stay on the market long.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.

4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go. This is very important during the inspection phase. Often times new buyers want everything perfect ... that's not always possible.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.

6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.

7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers. See a previous post I made about this - Click Here

8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased. I often tell buyers that you will not sleep the night you make an offer. You'll be awake by 2-3 AM saying, "What have I done?"

10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live.

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Copyright 2008. All rights reserved.

Sellers: Get an inspection first!

I'm often asked ... what's the best thing I can do to make sure that my home closes with the least hassle?

My answer: Get an Inspection First!

If you're thinking of selling ... consider a pre-listing home inspection. You will benefit so much from a thorough evaluation by a professional inspector to help get your property into tip-top shape. Sure, it’s tempting for you to assume that they know everything about your home’s condition. But even people living in a house for 25 years may not realize they’ve been living with a dangerous electrical outlet or plumbing leaks. Taking care of problems early offers a competitive edge.

Buyers are going to do the same thing and get an inspection anyways you might say ... I'll just have to pay for it too! Some may think that but actually many buyers won't get that far if they themselves find deficiencies in the house and may not present an offer. They'll often think that a house that has maintenance issues must have bigger issues too.

Secondly, there is this phenomenon with buyers I affectionately call "over reacting." Let's say that there is a problem with the roof -- they'll often say that they aren't interested in pursuing the property even though they love everything else about it. So as a seller you lose that prospect. The other alternative might be to say that they want a credit at closing. Not too bad you might say as you were expecting to have to pay out something anyways. Here's the problem though -- often the estimate that the buyer comes up with is at least 1.5 times to 2 times what the fix should cost. For example the buyer doesn't know that a toilet is only $70 at Lowe's -- they figure it has to cost about $300!

So, if you can find out about these problems ahead of time and spend the small dollars up front ... you'll save bigger ones and more importantly save deals down the road!

If you'd like recommendations ... call me at 585-645-1258 or e-mail at Mike@MikeWalkerHomes.com

Sale Pending ... 195 Hewitt St., Charlotte

This one went pretty fast as well! I was able to secure the buyer and put it under contract in about 27 days! Not too shabby. Here's a picture of the property located at 195 Hewitt St. to the right!

As a result, the seller has placed another one of his properties for sale through me and it's available as well. 172 Lemoyn -- Charlotte. If you'd like to take a closer look -- go to: http://www.mikewalkerhomes.com/ and Click on featured listings.

If you or someone you know is thinking about putting your home on the market ... call someone with the tools to help get your goals accomplished! Call ME!

Michael Walker

585-645-1258

Four Common Home Hazards

Whether you are interested in selling or not ... these are common occurrences in most home inspections and may be in your home too! Here are some of the most common hazards home inspectors often find:

FAULTY WIRING

Overloaded circuits, loose wires, missing covers on distribution boxes, abandoned appliances, or aluminum wiring (my last sale had this problem -- the seller had to credit for the replacement of the electrical service,) which can become problematic with age.

LOOSE GUARD RAILS

Stairway guardrails, especially on exterior stairways, that are not securely connected. Decks - often installed by homeowners unfamiliar with local building codes - that have loose boards.

SHOWER DOORS

Shower doors that lack safety glass and are not properly secured. A home owner who slips when stepping out of the bathtub and grabs a glass door that isn't properly fastened could be severely injured.

DRAINAGE PROBLEMS

Downspouts discharging next to an exterior wall or a negative grade that slopes toward the home (apparent on just about every home inspection I go on) and brings water toward the home, causing foundation deterioration. This can lead to water damage, often seen in the basement, and possibly mold growth. Look for cracks, foundation wall stains, and musty, damp smells.

Brought to you by:

Michael Walker and Pillar to Post

585-645-1258