RE MORTGAGE DEBT, STUDENT LOANS, CREDIT CARD IRS FORGIVENES... OR NOT

Topic Summary: Five years ago, at the start of the housing crisis,

Congress passed a law called the Mortgage Forgiveness Debt Relief Act.  The MFDRA would prevent homeowners from paying tax on the amount of any debt forgiveness.  

This provision is set to expire, as designed, on Dec. 31st.  If allowed to expire through Congressional inaction, homeowners who will get underwater workouts may be liable for paying taxes on the amount of forgiven dept. Also, a growing number of homeowners who will conduct a "short sale" in 2013 may also be liable for paying taxes. As an example almost 30% of all recent sales in California were "short sales" and in Nevada about 25% of all sales were "short."

The IRS Does Not See It The Same Way!

It would appear that homeowners who got in trouble over the last few years because of money problems probably couldn't handle the mortgage situation they were in and a "life line" (work out) was offered and excepted. Next year, homeowners who do a work out, will have a surprise tax event that may cause more long term negative pressure with what's owed to the IRS and the states. To see what is exactly covered and other tips, the IRS offers this resource HERE.

How does the tax provision work? Without the tax measure, a homeowner who owes $400,000 on his mortgage and sells his house for $300,000 would owe income taxes on the difference of $100,000, the amount that's forgiven. The $100,000 would be considered regular income by the Internal Revenue Service and in many states. The reason being, many state tax income sources the same way as the IRS.  This could take away some of the incentive for homeowners to seek a short sale.

What Would It Cost To Renew?  Renewing the provision for two years, as President Obama proposed earlier this year, would cost the Treasury Dept. $2.7 billion, according to the Congressional Budget Office.

Timeline: There will be a lot of activity in Congress after the election and overall, the spirit of "giving" is not something that is trendy in Washington these days. There has been bi-partisan support for the extension, it's just a matter of getting focus in Congress. 

This article is from my HOME ACTIONS newsletter.  It has many articles of use to homeowners.  If you would like to subscribe, email marilynfjacobs@gmail.com.

Things to Do at Daggerwing

Nature Center in November

Daggerwing Nature Center is operated by the Palm Beach County Parks and Recreation Department and is located in South County Regional Park at 11200 Park Access Road, off Cain Boulevard between Glades Road and Yamato Road, in western Boca Raton.

The following activities are planned at Daggerwing Nature Center during November.

 ANIMAL FEEDINGS
Daily at 3:15-3:30 pm
Families, all ages, free (reservations not required)
3:15 pm is feeding time. Listen to a short talk about a specific animal and then watch while they are fed.
Wednesday – alligator; Thursday – snake; Friday – skunk; Saturday – alligator

 MOMMY, MOTHER NATURE and ME: Turtles
Friday, Nov. 2, 10:30-11:15 am
Ages 2-5, $4 per child (reservations required)
Introduce your little ones to Mother Nature. Learn all about turtles through books, activities, nature walks, and crafts. During this class, get up-close and personal with several different types of live turtles.

 AMPHIBIANS
Saturday, Nov. 3, 1-1:45 pm
Families and all ages, $3 per person (reservations required)
Come and meet some live green tree and pig frogs. Find out why frogs are as important to the environment as an indicator species, and what we can do to help their wild populations.

 FALL CRAFTS
Saturday, Nov. 10, 10:30-11:15 am
Ages 5-10, $4 per child (reservations not required)
Make some festive, fun, fall crafts that will make great decorations for Thanksgiving.

MOMMY, MOTHER NATURE and ME: Turkeys
Friday, Nov. 16, 10:30-11:15 am
Ages 2-5, $4 per child (reservations required)
Introduce your little ones to Mother Nature. Learn all about turkeys through books, activities, nature walks, and crafts, just in time for Thanksgiving.

ECO EXPLORERS: Dip-Netting
Wednesday, Nov. 21, 2-3 pm
Ages 8-12, $4 per child (reservations required)

Come to Daggerwing and find out what is living in our ponds. We will go “dip-netting” and look at our findings using magnifying glasses and microscopes. Wear water shoes or shoes that can get wet/dirty.

 All programs are by reservation only, unless otherwise stated. Call (561) 629-8760 or visit the nature center to make program reservations. Fees (if applicable) are due the day of the program by cash or check only.  All participants are required to sign a program participation form for every program. If you are more than 5 minutes late to a program you have made a reservation for, your spot will be given to a person on the waiting list.

All Aboard Florida’s proposed 230-mile $1BB commuter rail line would go from Miami to Ft Lauderdale to West Palm Beach, Jacksonville, Orlando and Tampa, according to the Orlando Sentinel.   Service will be running at 2014 – with no risk to taxpayers.  Travel time from Miami to Orlando is estimated to be three hours with day long service from early morning to evening.

Anticipated are 6,000 construction jobs for Floridians and 400 jobs to operate the rail service.   Workers will also be needed to build station houses at some stops.  Amenities will include Wi-Fi internet service, gourmet meals, reserved business and coach class seating and easy-on, easy-off baggage compartments.

Annual anticipated travelers: 50MM.  It is estimated to take 3MM cars off the road whose drivers will use the rails instead, resulting in less congestion on I95..  There will be access to major international airports, seaports and existing commuter and rail systems including Metrorail and SunRail.

Bids are due by 12-7-012, then review of costs by FDOT (Florida Department of Transportation) follows, and winners will be chosen by 12-18-2012.  Interested companies must attend a mandatory meeting on 11-13-2012 at FDOT headquarters in DeLand.

All Aboard Florida is a wholly owned subsidiary of Florida East Coast Industries, based in Coral Gables, a privately owned, operated and maintained passenger rail service.  It is one of Florida’s largest full-service commercial real estate and infrastructure companies. 

This will be a solution for millions of Floridians and tourists, for both business and pleasure trips.  Expectation is to include 200 miles of existing tracks from Miami to Cocoa and a new 40-mile rail line from Cocoa to Orlando International Airport is to be built.