Feb 15, 2008 : personal laws

Friday, February 15, 2008

Tax Law Changes That Impact Homeowners2

By: Tom Wheelwright
What other real estate related benefits are included in the new tax law?

Mortgage Insurance Deduction. The new law extends the mortgage insurance deduction to amounts paid or accrued after December 31, 2007, but only with respect to contracts entered into after December 31, 2006, or prior to January 1, 2011.

Survivor's Home Sale Exclusion The new law extends the time in which a surviving spouse may use the married filing joint $500,000 home sale gain exclusion before being treated as a single individual entitled only to a $250,000 exclusion. Before the new tax law, a surviving spouse was could use the $500,000 exclusion only to the extent he or she could file a joint return with the deceased spouse's estate, which is only in the tax year the spouse dies.

Starting January 1, 2008, the surviving spouse can use the $500,000 gain exclusion up to two years following the date of death of the spouse.

What's the catch? As you have read, this new tax law contains major tax reductions, which are offset by several tax increases included in the new law. These increases include:

An increase in the failure to file penalty for partnerships from $50 to $85 per partner per month, up to 12 months

A new failure to file penalty for S corporations of $85 per S shareholder per month, up to 12 months

Increases in corporate estimated tax payments for corporations with $1 billion-plus assets, by 1.5 percent to 117.25 percent for payments due in July, August and September 2012.

Tom Wheelwright is not only the founder and CEO of Provision, but he is the creative force behind Provision Wealth Strategists. In addition to his management responsibilities, Tom likes to coach clients on wealth, business, and tax strategies. Along with his frequent seminars on these strategies, Tom is an adjunct professor in the Masters of Tax program at Arizona State University. For more information, visit http://www.provisionwealth.com.com .

Article Source: http://www.ArticleBiz.com

Tax Law Changes That Impact Homeowners1

By Tom Wheelwright
With foreclosure rates at an all time high, new tax law was passed at the end of 2007 to help homeowners avoid unmanageable income tax debt due to income created from a foreclosure. The new law also covers mortgage renegotiations and other real estate related benefits.

How is income created from a foreclosure? Here is a common scenario:

A lender forecloses on a property and then sells the property for less than the outstanding mortgage balance. There still remains an unpaid mortgage debt, which is the difference between the outstanding mortgage balance and the sales price. What usually happens next is the lender forgives the unpaid mortgage balance.

Before the new tax law, the unpaid mortgage balance was considered taxable income leaving the homeowner with an income tax bill.

After the new tax law, the unpaid mortgage balance is excluded from taxable income up to $2 million.

What is a mortgage renegotiation? Before starting the foreclosure process, a lender typically performs a cost-benefit analysis of foreclosing on a property. The result may be that the foreclosure is not in the lender's best interest, which isn't uncommon since the typical foreclosure nets the lender only about 60 cents on the dollar. In this case, the lender may renegotiate the terms of the mortgage to get to a lower monthly payment for the homeowner.

For example, one renegotiation workout plan organized by the Bush Administration and a group of lenders would bypass adjustable rate resets for up to five years. This type of renegotiation would typically result in forgiveness of indebtedness income creating taxable income to the homeowner if it were not for the new law.

What type of debt qualifies for the exclusion? The new law applies to debt incurred for the acquisition, construction or substantial improvement of the principal residence of the taxpayer and is secured by the residence. It also includes refinancing of such debt to the extent that refinancing does not exceed the amount of the original indebtedness.

What do homeowners need to watch out for? Homeowners who did "cash-out" refinancing and did not put the funds back into the home but, instead, used the funds to pay off credit card debt, tuition, medical expenses, or other expenditures. The "cash-out" amount is indebtedness income and fully taxable unless other exceptions are met.

What qualifies as a principal residence? A principal residence is the one in which the taxpayer lives most of the time. However, the determination of a taxpayer's principal residence is based on "all the facts and circumstances." The definition is the same as the home sale gain exclusion.

This rules out vacation homes, second residences and rental properties, even if the properties were purchased with equity from the taxpayer's principal residence.

When is the new law effective? This special relief is available for three years beginning January 1, 2007, and ending December 31, 2009.

Tom Wheelwright is not only the founder and CEO of Provision, but he is the creative force behind Provision Wealth Strategists. In addition to his management responsibilities, Tom likes to coach clients on wealth, business, and tax strategies. Along with his frequent seminars on these strategies, Tom is an adjunct professor in the Masters of Tax program at Arizona State University. For more information, visit http://www.provisionwealth.com.com .

Article Source: http://www.ArticleBiz.com

Great News for Garden State—Senate Looks to Expand NJ Lemon Law

By: Paul Fleming
Jim Griffin from Politicer.com is reporting that the Senate Commerce Committee approved legislation that would better protect consumers under the New Jersey Lemon Law for new car purchases by expanding coverage from 18,000 miles to 24,000 miles. The Bill was sponsored by Senators Barbara Buono and Nicholas Scutari.

The Committee approved Bill S-454, which would amend the "Lemon Law," which protects purchasers of new automobiles and motorcycles. The Bill would expand the law from 18,000 miles to 24,000 miles or two years of ownership, whichever comes first. In addition, for those defects that are likely to cause death or serious bodily injury, the manufacturer would have just one chance to fix the defect before the car would have to be replaced. For non-lethal defects, dealers would be held to the current standard which allows three attempts to fix the defect before replacing the vehicle. This is similar in nature to the Maryland Lemon Law, with the exception that Maryland requires four attempts for non-lethal repairs.

"When safety is a concern, three repair attempts are two too many," explained Senator Scutari to Griffin. "There is a major difference between an inconvenient oversight like a malfunctioning radio and the possibility that your car won't stop when you hit the brakes. Our drivers shouldn't have to put themselves at risk two or three times before they get a car that provides the safe transportation we expect when buying a new car."

The Bill also requires that dealers make sure consumers receive the State's "Lemon Law" protection Owner's Warranty Rights Notification booklet. The bill passed the Committee by a vote of 5-0 and now awaits consideration by the full Senate. This is great news for New Jersey consumers, which already has one of the strongest lemon laws in the Nation, according to the Center for Auto Safety. The Center for Auto Safety ranked the NJ Lemon Law as the second most effective lemon law in the Country and in a letter to state legislators, CAS Executive Director Clarence Ditlow specifically said the state could strengthen their Lemon Law provision by requiring only one repair attempt if a defect threatens death or serious bodily injury, covering a vehicle that has many different problems at once, and penalizing auto manufacturers who willfully violate the Lemon Law.

The New Jersey Lemon Law also provides fee-shifting provisions which enable consumers to receive 100% cost-free legal representation. If the consumer prevails, the manufacturer must pay all attorneys fees and legal costs on top of what the consumer receives.

For more information regarding the New Jersey Lemon Law, contact the Cherry Hill, NJ-based lemon law firm of Kimmel and Silverman at 1-800-LEMON-LAW (1-800-536-6652) or visit http://www.lemonlaw.com

Article Source: http://www.ArticleBiz.com

In the Bible but not in the Quran (32): Kill the man who sleeps ...

By Dr. Ibrahim Khalil
Kill the man who sleeps with his daughter-in-law in the Bible:

Leviticus 20:12 is talking about the man who sleeps with his father's wife,
The verse is talking about the penalty of the man, who commits adultery with his daughter-in-law.
In this case,
The Lord commands to kill both the man and the daughter-in-law must be put to death; their blood guiltiness will be on their own heads; they are responsible for their own deaths.
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Leviticus 20:12 in different versions of the Bible:

New International Version (NIV)
'If a man sleeps with his daughter-in-law, both of them must be put to death. What they have done is a perversion; their blood will be on their own heads.

New American Standard Bible (NASB)
If there is a man who lies with his daughter-in-law, both of them shall surely be put to death; they have committed incest, their blood guiltiness is upon them.

English Standard Version (ESV)
If a man lies with his daughter-in-law, both of them shall surely be put to death; they have committed perversion; their blood is upon them.

Darby Translation (DARBY)
12And if a man lie with his daughter-in-law, both of them shall certainly be put to death: they have wrought confusion; their blood is upon them.

King James Version (KJV)
12And if a man lie with his daughter in law, both of them shall surely be put to death: they have wrought confusion; their blood shall be upon them.
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Kill the man who sleeps with his daughter-in-law in the Quran:

There is nothing like that in the noble Quran.
Allah does not command anything like that.
However, Allah Commands: "do not come anywhere near adultery"
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Verse 17:32 says that:
And do not come anywhere near adultery secretly or openly.
This form of expressing it is more effective than saying ‘Do not commit it’.
Adultery is indeed an indecency, an abomination, a transgression, a sin and an evil way to choose. Allah will punish those who commit adultery on the Day of Judgment.
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Verse 17:32 in different translations:

QARIB:
Do not draw near to fornication, for it is an indecency, and its way is evil.
SHAKIR:
And go not nigh to fornication; surely it is an indecency and an evil way
PICKTHAL:
And come not near unto adultery. Lo! it is an abomination and an evil way.
YUSUFALI:
Nor come nigh to adultery: for it is a shameful (deed) and an evil, opening the road (to other evils).
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In this series, the LORD in the Bible commands to kill many kinds of people. What if the Quran was the Book which commands to kill anyone who 1) is Uncircumcised, 2) curses his parents, 3) is a gay, 4) is Zoosexual 5) works in the Sabbath! 6) tries to turn you away from the LORD, 7) lives in that town, 8) is a false prophet, 9) is a Midianites, 10) is the Owner of the ox, 11) is adulterer, 12) eats leavened bread, 13) eats the meat of the sacrifice of peace, 14) eats blood, 15) approaches the holy gifts, 16) does not eat the Passover, 17) touches a dead body, 18) sins defiantly and/or blasphemes the name of the LORD, 19) are old men, young men and maidens, women and children, 20) the Murder, 21) whoever gives his seed to Molech, 22) the medium, the spiritist, the necromancer and the Fortune-Teller, 23) whoever touches the Mount Sinai, 24) whoever kidnaps another and either sells him or still has him, 25) whoever does not listen to the Priest or the Judge, 26) who worships Baalpeor, 27) the man who sleeps with his father's wife and the woman too, 28) anyone who approaches the sanctuary and 29) the man who sleeps with his daughter-in-law and the daughter too.
None of these Biblical Commandments are present in the Noble Quran. However, what the Western Media would have said if the Quran was the book which commands these 29 Commandments? What names they have given the Quran in such case?
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Back to the main issue of my series of articles; this is my question to you smart readers: "Is the Quran quoted from the Bible?"

About the author:
Professor Dr. Ibrahim Khalil
Prof. of Clinical and Chemical Pathology,
Head of Clinical Microbiology and Infection Control Unit,
Ain-Shams University., Egypt.
And, President of The Egyptian Society of Inventors.
Member of the Egyptian union of Writers

personal laws