Sign of the times - mortgage assistance and income taxes

From Bankrate.com comes this question and its answer;

Is mortgage payment help taxable?

By George Saenz • Bankrate.com

Dear Tax Talk,

I am receiving money from my mortgage lender as part of a job loss mortgage protection insurance program. Are these payments taxable and if so, how would I report them?  -- Karen

Dear Karen,

I'm sure you had enough bad news when you lost your job. However, more bad news is that the mortgage assistance payments are considered other income by the Internal Revenue Service. The good news is that you can still deduct your mortgage interest as long as you itemize your deductions on Schedule A.

According to IRS Publication 525, if you receive benefits under a credit card disability or unemployment insurance plan, the benefits are taxable to you. These plans make the minimum monthly payment on your credit card account if you cannot make the payment due to injury, illness, disability or unemployment. Report on Form 1040, line 21, the amount of benefits you received during the year that is more than the amount of the premiums you paid during the year.

I don't see that there would be any distinction between credit card and mortgage insurance that would change the tax consequences. However, unlike credit cards, the interest on your mortgage is tax deductible.

Read more: Is mortgage payment help taxable?

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Stephen's Title Agency, LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-227-4724 - Fax 973-556-1628

E-mail Stephenstitle AT comcast.net - www.stephenstitle.com

FDIC bank closures - and they're off!

The FDIC announced the closing of three banks this week, raising the total this year to 14.  While the banks are located in Georgia and Illnois, they are of the so-called "community bank" family.  They're banks that, well, get their money from folks in their operating neighborhood and lend it likewise.

Commercial loans are the bane of community banks.  A problem with a large loan or one given to a start-up business is quick to have an impact on the bank's financial operations.

Read the full report from the New York Times, Regulators Close 3 Failed Banks in Georgia and Illinois.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Stephen's Title Agency, LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-227-4724 - Fax 973-556-1628

E-mail Stephenstitle AT comcast.net - www.stephenstitle.com

WaMu deal in trouble?

From the Seattle Times, bad news about the WaMu settlement. Too early to predict the fallout.

Washington Mutual Inc., former parent of the biggest U.S. bank to fail, missed the deadline for approval of its bankruptcy plan, making a related, $10 billion settlement subject to cancellation, a company lawyer said.

The missed deadline means the parties involved in the settlement, JPMorgan Chase and the Federal Deposit Insurance Corp., have the option to cancel the agreement, said Brian Rosen, a WaMu attorney.

The settlement, which splits billions of dollars worth of tax refunds and cash, is the central feature of WaMu's bankruptcy-exit plan, and JPMorgan and the FDIC are unlikely to pull out of the deal, Rosen said.

Read the full article, Deadline passes for WaMu

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Stephen's Title Agency, LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-227-4724 - Fax 973-556-1628

E-mail Stephenstitle AT comcast.net - www.stephenstitle.com

6 House repairs to tackle

From Bankrate.com.

In this economy, you may be tempted to delay or even skip minor home maintenance repairs, cleaning jobs and inspections in your home. But don't be penny-wise and dollar-foolish. That $200 or $300 you save today could result in expenditures of $3,000 or even tens of thousands next month or next year if hidden problems in your home go unnoticed and become worse.

Consider coughing up a little dough to take care of these small jobs before they morph into gigantic, expensive jobs later.

Here’s the list of repairs:

1. Annual HVAC inspection in spring or fall. Why?

"Things that happen often happen at the worst possible time in the worse possible conditions and you're looking at the maximum rate," says Terry Townsend of Townsend Engineering in Chattanooga, Tenn., and former president of the American Society of Heating, Refrigerating and Air-Conditioning Engineers. Remember, continual maintenance prolongs the life of the equipment. "You're sitting there with an investment of thousands in your HVAC system and you're investing a few hundred dollars in maintenance."

2. Chimney inspection, annually. Why?

"A simple chimney cleaning can prevent chimney fires and damage to your entire house," says Ray Gessner, a licensed professional engineer and owner of A Step in Time Chimney Sweeps, with offices in the eastern U.S. "Water is the No. 1 problem with chimneys. With water damage, you might need to have your whole chimney rebuilt."

3. Termite inspection, annually, in spring or early summer. Why?

"Termites eat the wood from the inside out," Curtis says. "A typical homeowner would not be aware they are even in their home until months or years after they get in and start causing damage. A lot of people don't realize that termites don't just feed on the home. They'll eat flooring, insulation, books -- I've even seen them penetrate through swimming pool liners."

4. Power washing and sealing of your wood deck. Every 1 -3 years depending on amount of traffic, mildew and mold. Why?

Power washing gets rid of stains, algae, mold, mildew and moss. Algae and mold can make your deck slippery and dangerous, says Justin Lee of JL Power Washing in Williamsburg, Va. Sealing your deck after it is cleaned helps prevent water damage. Wood soaks up rain like a sponge, expands and then shrinks, Lee says. Sealing makes the water bead up and roll off. And let's not forget -- your deck will look nicer, too.

5. Dryer vent cleaning, annually. Why?

     Once the vent gets clogged, the dryer can overheat and start a fire.

6. Carpet cleaning every 12 months. Why?

Your home also will be healthier with pollen, bacteria, insecticides and dirt removed, says Howard Partridge, founder and president of Clean as a Whistle, a cleaning company outside Houston.

Read the full article from Bankrate.com.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Stephen's Title Agency, LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-227-4724 - Fax 973-556-1628

E-mail Stephenstitle AT comcast.net - www.stephenstitle.com