Rae Catanese

Prudential Tropical Realty

Cell: (813) 784-7744

Email Me

From the monthly archives:

December 2009

Relocating?  Deducting Moving Expenses on your taxes may make your relocation a little less stressful.  Here are the IRS rules to see if you qualify:

If you moved due to a change in your job or business location, or because you started a new job or business, you may be able to deduct your moving expenses.  To qualify for the moving expense deduction, you must satisfy two tests.

Under the first test, the “distance test”, your new job must be at least 50 miles farther from your old home than your old job location was from your old home. If you had no previous workplace, your new job must be at least 50 miles from your old home.

The second test is the “time test”. If you are an employee, you must work full-time for at least 39 weeks during the first 12 months right after you arrive in the general area of your new job. If you are self-employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months after you arrive in the general area of your new work location. There are exceptions to the time test in case of death, disability and involuntary separation, among other things.

If you are a member of the armed forces and your move was due to a permanent change of station, you do not have to satisfy the “distance or time tests”.

Moving expenses are figured on Form 3903 (PDF) and deducted as an adjustment to income on Form 1040 (PDF). You cannot deduct any moving expenses that were reimbursed by your employer.

For more information on deductible moving expenses, please refer to Publication 521, Moving Expenses.

See also: Tampa Bay Relocation Guide

Need help relocating to the Tampa Bay Area? Contact me to find your perfect home!  Rae Catanese, PA-Licensed Realtor-Tampa, St. Pete, Clearwater.  813 784 7744 or email

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If you purchased a home and are paying PMI (Private Mortgage Insurance) you may be able to deduct the mortgage insurance payments on your taxes!

 

Question 1:  I bought my main home in 2008 using a mortgage and I pay monthly premiums for mortgage insurance. Can I deduct these payments?

Answer:  In general, if you itemize deductions, you may deduct premiums paid for mortgage insurance provided by the Department of Veterans Affairs (VA), the Federal Housing Administration (FHA), the Rural Housing Service (Rural Housing), or private mortgage insurers in connection with a mortgage for the purchase of your main home.

The amount you may deduct is limited if your adjusted gross income is more than $100,000 ($50,000 if married filing separately).   No deduction is allowed if your adjusted gross income is more than $109,000 ($54,500 if married filing separately)

Visit the IRS website for more information and forms

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Timing Couldn’t Be Much Better for First-time Homebuyers–
Be Sure You Make the Right Moves

By Rae Catanese, PA
Prudential Tropical Realty-Tampa, Fl

First-time homebuyers dominated the U.S. real estate market in 2009, accounting for roughly half of all residential transactions, according to the National Association of REALTORS®.

That trend is likely to continue well into the new year. That’s because interest rates are hovering near all-time lows, home-price affordability is near all-time highs and a third factor – Congress’ extension of the first-time homebuyer tax credit until April 30, 2010 – make conditions quite favorable for those considering homeownership for the first time.

Still, with the prospect of making one of the largest investments you’ll ever make in your life, you can easily become overwhelmed.

Some of the questions you may be asking are:

Will I be able to afford the home of my dreams? Do I have enough money for a down payment? Will I qualify for the tax credit? Will I make smart home buying decisions? If you go into the process prepared, your first purchase – like the current timing – can be just right.

The costs involved in the purchase of a home can seem overwhelming to first-time homebuyers. There are mortgage costs, the down payment, and closing costs to think about.

1.  Affordability–By looking at your income and debt ratio, your sales professional can help you calculate how much you can afford each month in mortgage payments.  But before determining your price range, you should also take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, insurance, homeowner association dues, utilities and maintenance. And if your down payment is less than 20 percent of the cost of the home, you will be responsible for private mortgage insurance, more commonly referred to as PMI.

2.  Mortgage payment–Fear of being rejected for a home loan is one of the main concerns for first-time homebuyers. To lessen the stress, you may want to get pre-approved for a loan before looking at prospective homes. This will not only help you feel more confident, it will also give you an advantage where there are multiple offers for a specific property. In addition, the fact that your loan has already been approved is of great value to the seller because it shortens the purchase process, and there is less of a chance that the buyer will back out of the sale. If you don’t have a specific mortgage lender in mind, ask your sales professional for a recommendation.

3.  Down payment–The down payment amount varies depending on the value of the home you choose and your mortgage lender. Your real estate professional will be able to explain the different options available to you.

4.  Tax credit–The first-time homebuyer tax credit, a key component of the American Recovery and Reinvestment Act of 2009, equates to as much as $8,000, or 10% of a principal residence’s purchase price, and is available to those who have not owned a principal residence in the past three years. You can use the tax credit to help purchase your home or help pay for its closing costs, or the credit can be used to remodel, refurnish and repair your property. See your tax advisor for details about the tax-credit program and how you may benefit. 

5.  Making offers–Don’t feel pressured into making an offer on the first home you see. This is a common mistake of many first-time homebuyers. Make sure you view different homes to get a feel for the marketplace. When you decide on a home to make a bid on, work with your real estate professional to get all of your questions answered before making an offer. But don’t wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.

Above all, remember there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction. Your real estate professional can be an invaluable asset in helping you make educated decisions so that your first home purchase is a rewarding experience.

Need a Buyer’s Agent? Questions? Email me or Call: 813 784 7744

Search all homes in Tampa Bay!

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What does it take to advertise your home? Don’t be left in the dark!
 
The Real Estate Industry has seen many changes in the last few years.  Not only do Real Estate Agents need to be tech savvy, using social media tools like twitter and Facebook, they also need to advertise on numerous websites like Realtor.com, Trulia and Zillow to promote your home.
 
 I received an email today from Zillow.com stating that I would now need to pay to advertise my clients’ homes for sale on their website.  I’m wondering what percentage of agents will spend the money for this once free service? 
Wilderness Lake PreserveThe challenge is that you don’t know which sites potential buyers use and it seems everyone has their favorite. In today’s real estate market, your home needs to be listed on all of them to capture every buyer possible. 
 
Why is advertsing your home on Zillow important?
  
Since 85% of home buyers start their search online, this could be unfavorable for sellers, as home buyers may never see your home.  
 
Zillow is selling the service for 9.95 per listing for 180 days.  Since more than 8 million people visit Zillow each month, Featured Listings will get incredible exposure at a cost-effective price. Plus, the millions of buyers who come to Zillow will enjoy a greatly improved shopping experience by viewing higher-quality listings.

Before you list your home, ask the agent if they pay to advertise on Zillow!!
Have Questions regarding listing your home for sale?
Contact me at 813 784 7744
Rae Catanese, Real Estate Agent
Prudential Tropical Realty
Tampa, St. Pete, Clearwater
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South Tampa Canal Dredging Update-Tampa Tribune -The original plan was to asses the residence a minimum of 8K, now the City of Tampa will move ahead with the project without taxing homeowners, with the help of federal funds.

Now waterfront communities in Beach Park, Sunset Park and Davis Islands will benefit,  making canals navigable in these desirable communities.

TAMPA – A thick bed of foul-smelling muck blankets the bottom of a dozen canalsalong Old Tampa Bay, caused by decades of stormwater runoff and over development.

City officialsand residents have wrangled for years over whose responsibility it is to clean up the canals, many of them carved into the coastline by developers in the early 1960s after the West Shore area was annexed into the city from Hillsborough County.

At one point, Tampa planned to tax residents who live along the canals at least $8,000 per household to pay for a dredging project – a proposal that drew fierce opposition from West Shore property owners who argued that the city should foot the bill for the work.

Since then, though, city officials have scrapped those plans and decided to move ahead with the project without taxing homeowners, with the help of federal funds.

The city plans to submit the required paperwork and applicationsfor dredging permits to Hillsborough County’s Environmental Protection Commissionbefore the holiday break and is expected to put the project out to bid sometime next year, said Chuck Walter, director of the stormwater department, who will oversee the dredging project.

The new plan calls for dredging a 20-feet-wide by 3- to 5-feet-deep channel on a dozen canals in the West Shore area and a small portion of one canal on Davis Islands.

Funding for the dredging will come from a $1.3-million federal grant and $1 million in matching funds from the city. City officials have already spent about $600,000 of that money on engineering studies needed to apply for permits from county regulators.

south tampa canal dreding

Walter said cost estimates for the project, previously estimated at more than $6 million, have been lowered and that the city has enough money to get the job done.

One reason for the lower cost is that city officials weren’t aware until recently that some of the canals are not in as bad of shape as preliminary surveys suggested.

Another is that the original project called for cleaning out more canals, including two on Davis Islands, and dredging them all down to a deeper level for navigational purposes.

“We’re trying to get this done the cheapest and most surgical way possible,” Walter said.

Residential development and stormwater runoff have contributed to the deterioration of the canals, many of which have never been cleaned out. Walter said removing the muck from the bottom will improve water quality in the canals by increasing the tidal flow.

The dredging will also benefit homeowners who live on the canals and benefit the city by increasing property values in one of Tampa’s most affluent neighborhoods, he said.

Marlin Anderson, president of the Sunset Park Homeowners Association, welcomed the news. He said homeowners have been waiting years for the project to get under way.

“If they can go ahead and dredge these canals, it would be great,” he said.

Councilman John Dingfelder, whose district encompasses the West Shore area, said he had a “mixed reaction,” considering how long the project has taken to get going.

“It’s long overdue,” he said. “But it’s unfortunate that we didn’t figure this out earlier. We spent a lot of time talking to people about the assessments. It was very divisive issue.”

Some homeowners got tired of waiting for the dredging project to get under way.

This year, a group of Beach Park Isles residents chipped in $45,000 to dredge a canal in their neighborhood. The project removed 12,000 cubic feet of muck and silt.

That canal has been taken off the list for the city’s project.
City officials still need to talk with about a dozen homeowners who have docks that need to be temporarily moved, so contractors can dredge a clear path down the canals.

Homeowners would have to pay for the cost of removing the docks, Walter said.

Sam Mirabella Jr. lives along one of the canalsand opposed the special tax assessment. He was one of many homeowners who argued that the city should pay for the work because stormwater runoff has contributed to silt clogging the canals.

Now that the city is paying for the project itself, he doesn’t have a dog in the fight.

“If they want to do that, that’s fine,” he said. “As long as they don’t tax us to pay for it.”

If you are thinking of buying a waterfront home in S. Tampa or Davis Islands, now is a good time to take advantage of increased appreciation when the dredging project is complete.  Living on the water and the value of having a boat in your backyard is what motivates home buyers.

If you have any questions, or you are considering listing your home, please don’t hesitate to contact me.  Rae Catanese, PA, Real Estate Agent 813 784 7744

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Short Sales Tips for Sellers in the Tampa Real Estate Market

If you’re thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale.   A short sale is one where the net proceeds from the sale won’t cover your total mortgage obligation and closing costs, and you don’t have other sources of money to cover the deficiency.   A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

 Selling a Short Sale Tampa

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:

  • Your property is worth less than the total mortgage you owe on it.
  • You have a financial hardship, such as a job loss or major medical bills.
  • You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales.  Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won’t try to take advantage of your situation or pressure you to do something that isn’t in your best interest. A qualified real estate professional can:

  • Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
  • Help you set an appropriate listing price for your home, market the home, and get it sold.
  • Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
  • Ease the process of working with your lender or lenders.
  • Negotiate the contract with the buyers.
  • Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include: 

  • A hardship letter detailing your financial situation and why you need the short sale
  • A copy of the purchase contract and listing agreement
  • Proof of your income and assets
  • Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you’re well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:

  • If you have only one mortgage, the review can take about two months.
  • With a first and second mortgage with the same lender, the review can take about three months.
  • With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don’t expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

  • You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.
  • Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
  • Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.

 If you are thinking of selling your home as a short sale, please contact me:

Rae Catanese, Pa  813 784 7744

Prudential Tropical Realty

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Economists’ Commentary: Housing Forecast for 2010

By Lawrence Yun, Chief Economist

In all, 4.4 million Americans look to take advantage of the home buyer tax credit before it expires by the middle of next year. From the enactment in February of this year through October, NAR estimates 1.8 million households would have qualified to claim the first-time home buyer tax credit.  Now with the tax credit deadline extended till the end of June 2010 (for closings, with contracts signed by the end of April, 2010) and also available to many move-up buyers, an additional 2.6 million families would likely claim the home buyer tax credit.The expected boost to existing home sales by more than 20 percent in the first half of 2010 from comparable period one year before will sufficiently trim away inventory such that home values will begin to show increases by the middle of next year in many parts of the country. The median existing home price could rise by 2 to 4 percent in 2010.

New home sales could jump by nearly 50 percent, though from very depressed levels to figures that would be less than half the pace as during the peak sales year in 2005.

All signs are showing an increase in sales in the Tampa Bay area!

Search all homes, condos, and lofts for sale in Tampa Bay

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 WASHINGTON, D.C. — – Homeowners stuck with tainted Chinese drywall could be eligible for big tax breaks.
The Internal Revenue Service said Thursday it would  consider granting a tax deduction for homeowners who can prove they have suffered “sudden, unusual and unexpected” damage because of the building material.

In a market where many houses are already depreciating in value or even facing foreclosure, houses that have defective drywall are being rendered valueless, exacerbating the current housing crisis. Houses with defective drywall may even depress the property value of adjacent homes. One estimate is that the cost of remediation might be around $100,000 per home.

Toxic drywall

As more and more people from across Florida and elsewhere are reporting problems in their homes built with imported drywall, I’ve proposed legislation aimed at initiating a recall and imposing an immediate ban on tainted building products from China.  You can find out more about that legislation here, but in the meantime, I wanted to give you some resources so you can find out if you have a problem with the drywall in your house, and if so what you can do.

How do I know if I have “Chinese drywall”?
 
  1. There is presence of sulfur-like or other unusual odors
  2. Confirmed presence of Chinese manufactured drywall in the home
  3. Observed copper corrosion, indicated by black, sooty coating of un-insulated copper pipe leading to the air handling unit present in the garage or mechanical closet of home
  4. Documented failure of air conditioner evaporator coil (located inside the air handling unit)
  5. Confirmation by an outside expert or professional for the presence of premature copper corrosion on un-insulated copper wires and/or air conditioner evaporator coils (inside the air handling unit)

Florida Department of Health

 

The Florida Department of Health has set up a website specifically for people who are wondering if they may have the hazardous imported drywall in their house.  It has a section for frequently asked questions and a list of local, state, and federal agencies where you can file a consumer complaint

The federal Consumer Product Safety Commission (CPSC) has put up a website with information about the status of their investigation of hazardous drywall, including a section to answer many of the questions you may have.  To report a complaint of toxic drywall to the CPSC, you can fill out a form on their website.

 

 

“If the facts and circumstances show that a taxpayer’s home has had a sudden, unusual and unexpected damage, and that this damage was caused by Chinese drywall, and that all of the other requirements of the deduction are met, the taxpayer is entitled to a casualty loss deduction,” IRS spokesman Bruce Friedland told Scripps Howard News Service.

See Also: Signs of Chinese Drywall

Consumer Product Safety Commission

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