Debt Collection & the Fair Practices Act

A recent article in the Longmont Times-Call provided great information related to the Federal Fair Debt Collection Practices Act, which might interest those in situations in which a debt collector has been in contact ... in general, "Debt collectors cannot use abusive, unfair or deceptive practices".

First, the Act covers personal, family and household debts (including credit card debt, auto loans, medical bills, or mortgages), but not business related debts:

1. A debt collector may contact you between the hours of 8 am and 9 pm only, unless you agree otherwise. They cannot contact you at work if you tell them you are not allowed to take calls there (this can be done orally or in writing).
2. Talk to the debt collector at least once to see if you can resolve the matter first. If you do not want them to contact you any further, send a letter in writing by certified mail, stating as such. Please note that this does NOT get rid of the debt, and the company can still sue you to collect.
3. If you are represented by an attorney, the debt collector must contact the attorney only.
4. The debt collector is not allowed to discuss your debt with anyone other than you, your spouse or your attorney, but can contact others to find your phone number, address, and place of employment.
5. Within five days of first contacting you, the collector must send a written "validation notice" with all related debt information (amount owed, creditors name, and how to proceed).
6. Debt collectors are not allowed to use threats, obscene language, or false claims.
7. If the debt collector is trying to collect on more than one debt, you can dictate which debts your payments should be applied to.
8. Debt collectors can garnish a bank account or wages only by court order, if the collector has sued you and won a judgment in court. If you receive a lawsuit summons, do NOT ignore it!

If you believe that a debt collector has violated the law, you have the right to sue within one year of the violation. You might be able to recover lost wages, medical bills, attorney's fees, court costs, and up to $1,000. But please note again, that even if the debt collector violates the law, your debt does not go away!

The Act, in Full:

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf

Ten Tax Tips for Selling Your Home

Great tips provided by the IRS!!

IRS Summertime Tax Tip 2011-15, August 8, 2011

The Internal Revenue Service has some important information to share with individuals who have sold or are about to sell their home. If you have a gain from the sale of your main home, you may qualify to exclude all or part of that gain from your income. Here are ten tips from the IRS to keep in mind when selling your home:

1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.

2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint tax return in most cases).

3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.

4. If you can exclude all of the gain, you do not need to report the sale on your tax return.

5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.

6. You cannot deduct a loss from the sale of your main home.

7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.

8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.

9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5404, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year's tax return.

10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.

If you have any questions about the above information, please feel free to call or e-mail Cynthia ... I'm more than happy to answer questions regarding taxes or real estate (or I will find the answer for you!!!

Tax Update 2011

On December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which extended certain tax cuts for two additional years. The highlights of this piece of legislation are as follows:

~ Individual Income Tax Rates will remain the same, at 10, 15, 25, 28, 33 and 35 percent, based on taxable income
~ Capital Gains and Dividend Tax Rates will remain the same at a maximum rate of 15 percent (28% for collectibles)
~ The Alternative Minimum Tax (AMT) exemption amounts will increase, to help protect middle income taxpayers
~ Employees will pay less in social security taxes during the year 2011, a decrease from 6.2 percent to 4.2 percent of wages up to $106,800
~ The Estate Tax has been reinstated at a maximum rate of 35 percent, with a $5 million exclusion amount
~ The Gift Tax has been reunified with the estate tax, with a maximum rate of 35 percent, and applicable exclusion amount of $5 million
~ The American Opportunity Tax Credit has been extended
~ The following tax incentives have also been extended through 2011: State and local sales tax deduction; Teacher's classroom expense deduction; Tax-free distributions from IRA's for charity; Higher education tuition deduction

For more information, please feel free to contact me!

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Investing in Rental Real Estate

Have you ever considered getting into the business of rental real estate? This could potentially be one of the BEST times to invest in a rental property! Interest rates are low, and the market is flooded with available properties at some of the lowest prices in recent history.

What are the long-term benefits of investing in real estate?
* Cash flow from rental income
* Increase in value due to appreciation
* Increased equity as the mortgage is paid down
* Tax advantages
* Leverage (the potential for a great return with little money down)

Tax-Related Information:
* Generally, you will file a Schedule E with your Form 1040 (Individual Tax Return)
* For most taxpayers, you can deduct up to $25,000 in losses related to your rental real estate (with a phase-out if your adjusted income is over $100,000, and a carryforward of those losses until the property is sold)
* Qualified Real Estate Professionals do not have the above limitation
* Residential Real Estate is depreciated over 27.5 years, so an additional 'non-cash' deduction is taken each year
* The depreciation is 'recaptured' upon sale of the property and taxed at a special 25% tax rate
* Additional depreciation is taken for purchases of personal property, such as appliances
* You can deduct any expenses related to the rental property, including (but not limited to) mortgage interest, property taxes, insurance, homeowners dues, utilities, repairs and maintenance, supplies, travel, and management fees

It is very important to consult with your own tax advisor before investing in a rental property! Your individual tax situation will have a great impact on the immediate benefits of owning a rental property. Remember that investment in real estate always involves a high risk factor, and does not necessarily generate immediate cash flow or tax advantages ... so your goal is generally the long-term possibility of increased value and cash flow.

If you would like more information, or need the name of a great mortgage professional (your first step in considering a purchase!), please feel free to contact me at any time.

Monarch Real Estate Consulting

I'm very excited to announce that I will now be working as an Independent Broker, doing business as Monarch Real Estate Consulting!

My goal is to continue to provide real estate services - sales and consultation - for friends, family and referrals ... I have enjoyed so much working with the people in my 'sphere', and meeting new friends as well.

You can expect to receive the same great service in my new capacity as a business owner, with a lot of personal attention, and focus on the details ... and hopefully we will also have fun in the process!

Please feel free to contact me if you have any questions ~ And thank you for your support!!

cynthia@monarch-real-estate.com

Monarch Real Estate Consulting Website

Announcement

Charming Victorian in Erie Village!

Just Listed at $319,000!! This beautiful property is immaculate, and move-in ready! Designer colors and upgraded details enhance this 3 bedroom/2.5 bathroom home, and the location next to a park and professional landscaping are exceptional. Note the wrap-around front porch, hardwood flooring, 9 foot ceilings, gas fireplace with mantel, new carpet, new water heater, air conditioning, sprinkler system, and crown molding as well!!

**No longer available :(!!**