Gunning Daily News
February 6, 2014 5:45 pm
FHA. Acronym for Federal Housing Authority, an agency created within the Department of Housing and Urban Development (HUD) that insures mortgages on residential property, with downpayment requirements usually lower than prevailing ones.
February 6, 2014 5:45 pm
A: Putting down as little as possible lets you take full advantage of the tax benefits of homeownership. Mortgage interest and property taxes are both fully deductible from state and federal income taxes. Also, making a small down payment frees up cash that you can use to meet unexpected home improvements.
Some real estate experts contend it is more economical, however, to make a larger down payment, thus reducing the amount of debt financed over the life of the loan. A borrower could potentially save several thousand dollars, maybe even hundreds of thousands of dollars.
February 5, 2014 8:03 pm
HUD. Acronym for the Department of Housing and Urban Development, an agency from which almost all of the federal government’s housing programs flow.
February 5, 2014 8:03 pm
A: Disclosure could protect you from a lawsuit. Today, home sellers in most states must now fill out a form disclosing material facts about their homes. Material facts are details about the home’s condition or legal status, as well as the age of various components.
If your state does not require a written disclosure, the real estate laws probably require sellers to disclose any known problems with the home they are selling.
February 5, 2014 7:03 pm
Nearly 150 million Americans will file federal income tax returns this year and, unfortunately, many will be shelling out much more of their hard-earned money than necessary, says veteran financial expert Jeff Gorton.
“With the ridiculous complexity of our tax code, I can understand how the average person might want to put off doing their homework, but that’ll cost you,” says Gorton, a veteran Certified Public Accountant and Certified Financial Planner™, and head of Gorton Financial Group (www.gortonfinancialgroup.com).
“When you think about all you do to earn your money, and the lengths we’ll go to save a few bucks, it doesn’t make sense to not do all we can to prepare for the inevitable – our compulsory contribution to Uncle Sam’s bank account.”
There is nothing unpatriotic about taking advantage of legal measures to reduce your tax bill, Gorton says. Most Americans, however, don’t understand the basics of how to minimize the tax burden, he says.
“If you wait until the last minute to do your taxes, you’re sure to miss out on savings,” says Gorton, who offers some basic and more advanced tax-saving options.
• Credits: Tax credits are usually subtracted dollar for dollar from the actual tax liability and may be utilized when filing for 2013. They include the Child Tax Credit, which allows up to $1,000 for children younger than 17; the American Opportunity Credit, featuring up to $2,500 in tax savings per eligible student for tuition costs for four years of post-high-school education; and the Energy-Efficient Home Improvement Tax Credit, which grants qualifying taxpayers 10 percent of the cost of certain energy-efficient building materials — up to a $500 lifetime credit. The Child and Dependent Care Credit, for those who have to pay someone to care for a child younger than 13, or another dependent, offers up to $3,000 for one qualifying individual, or up to $6,000 for two or more qualifying individuals.
• Deductions: Like tax credits, deductions have phase-out limits, so you may want to consult with a professional. Deductions are subtracted from your income before your taxes are calculated, which may reduce the amount of money on which you are taxed and, by extension, your eventual tax liability. Some examples include contributions made to qualifying charitable organizations. And, you may be able to write off out-of-pocket costs incurred while doing work for a charity. Others may include amounts set aside for retirement through a qualified retirement plan, such as an Individual Retirement Account; medical expenses exceeding 10 percent of your adjusted gross income are now deductible – expenses exceeding 7.5 percent are still deductible for those older than age 65; and, potentially, mortgage interest paid on a loan secured for your primary residence.
• Tax-favored investing: This involves both tax-exempt investments and tax-deferred investments. Tax-exempt investments, which include such vehicles as municipal bonds and certain money market funds, offer a way to grow your money that’s exempt from federal taxes. Municipal bonds are free of federal income tax and may be free of state and local income taxes for investors who live in the area where the bond was issued. Tax-deferred investments, on which taxes are postponed until you withdraw your money, include qualified retirement plans, such as traditional IRAs and employer-sponsored plans, as well as insurance products such as annuities and, sometimes, life insurance.
February 5, 2014 7:03 pm
With reports of the unemployment rate dropping to 7 percent, lower than it was even five years ago and down from a peak of 10 percent in October 2009, many are breathing a sigh of relief. But the effects of a long bout of high unemployment are sure to have thrown off the balance of employee well-being, says former Exxon executive Bob Epperly.
“Of course, the rate does not take into account those who are underemployed, including over-skilled workers in menial jobs and those with too few hours. For those lucky enough to have decent employment, many feel insecure and are willing to skew their work-life balance into a tailspin, with exaggerated emphasis on their career,” says Epperly, a CEO who realized at age 55 that even a very successful career cannot fulfill every aspect of life.
“Most people cannot afford to simply refuse the demands of their job, so what’s a worker to do?”
Epperly, author of “Growing Up After Fifty: From Exxon Executive to Spiritual Seeker,” (www.bobepperly.com), offers tips for correcting lifestyle imbalance.
• It’s never enough. Ambition is admirable, but if it’s all that drives you, no matter how much you accomplish, it will never be enough. If professional ambition is more important to you than anything else in your life, that’s a red flag that your life is dangerously unbalanced. The consequences will be painful feelings of emptiness, lack of fulfillment, and having missed out. Take steps now to restore balance, beginning with personal, non-work relationships.
• No one ever says, at the end of their life, that they should have worked longer and spent less time with family. When it’s all said and done, life is short, and many realize that time is life’s most precious resource. Intense focus on work tends to deprive professionals of opportunities with their loved ones – moments and memories that cannot be replaced. Set goals for how much time you’ll spend giving your family 100 percent of your attention each day and week, and stick to them!
• Make communication a top priority! The importance and value of real communication cannot be overemphasized. “More important than speaking is listening,” Epperly says. “My relationships immediately improved when I began listening very carefully to what was being said.”
• Only you are responsible for your life. The Serenity Prayer goes a long way in work-life balance; it reads: “God, grant me the serenity to accept the things I cannot change, the courage to change the things I can, and the wisdom to know the difference.” Epperly says that recognizing he is responsible for his life and focusing on the aspects of it over which he has influence while recognizing those he needs to let go has been pivotal.
• Accept who you are. This can be challenging; it demands courageous self-reflection and letting go of the need for external approval. “When a friend asked me, ‘Do you think the world is ready to accept Bob Epperly just as he is?’ I suddenly saw that I had always felt I had to accommodate; that I wasn’t okay as I am,” he says. “I started to give myself permission to be me.”
February 4, 2014 2:45 pm
BPT—When it comes to vehicle maintenance there are two schools of practice: the "do it for me" and the "do it yourself." The majority fall under the first category, meaning they opt to take their vehicle in for maintenance, mostly because having the ability to lift your vehicle for an oil change or having the proper tools for a tire rotation are not common in an average garage. We all know about the basic maintenance you should be doing, like getting your oil changed and checking the belts and hoses for wear. But did you know there are other aspects of your vehicle you can easily maintain and, by doing so, will extend the life of your vehicle?
Spark plugs - The role of the spark plug is to ignite fuel in the cylinders. Spark plugs that aren't working to their full capacity can reduce gas mileage or cause damage to other parts of the vehicle that can result in expensive repairs. If you choose to replace your own spark plugs instead of having the shop do it, the cost is less than $10 per spark plug.
Fuel injectors - Similar to spark plugs, fuel injectors are an important component to the life of your engine and car, particularly if you make a lot of short trips or have many miles on your vehicle. Fuel injector openings are half the size of a pinhole and can become blocked from sediment that gets into your vehicle via the gasoline. Why keep your fuel injectors clean? Driving with dirty fuel injectors can lead to poor acceleration, lower power, reduced fuel economy, rough idling and high carbon monoxide emissions. An easy way to maintain your fuel injectors is to use a fuel injector cleaner and stabilizer like Royal Purple's Max-Clean. Use a bottle of Max-Clean by simply pouring it into your gas tank before your fill up at the gas station. Good for both gasoline and diesel vehicles, it can restore fuel economy and clean injectors.
Air filter - How often you change your air filter depends on where you drive. Regular travel in rural areas will require you to change your air filter more often than you would if the majority of your driving is on the highway. Driving with a dirty air filter can cause a pressure drop that restricts airflow, reducing fuel economy, performance and emissions. A good way to determine if your air filter is dirty is to remove it and hold it up to the light. If it is caked with dirt you should replace it. Shaking or blowing it out will not clean it, but only embed the dirt further into the fibers.
In addition to following a regular maintenance schedule for your vehicle, checking less thought-of items can result in better fuel economy, and therefore, result in money savings and longer life of your vehicle.
February 4, 2014 2:45 pm
With tax season upon us, you might be wondering who doesn't have to file federal income taxes.
Whether or not a taxpayer is required to file income taxes depends on your age, filing status, and gross income. It doesn't matter if you're unemployed; what matters is if your income (from all sources) is above a certain amount as specified by your age and filing status (i.e., married, single, etc.).
So who must file? And is it a good idea to file taxes, even if you aren't required to?
Gross Income Thresholds for Filing Taxes
Many people assume that if they earned any amount of income last year, then they're required to file a tax return. However, depending on your gross income, you might not have to file at all.
If your income in 2013 fell below a certain threshold amount, then you likely don't need to file taxes. Here are some examples of income thresholds for different types of people:
- Single adults under the age of 65 who earned less than $9,750 in 2013.
- Married couples under 65, filing jointly, who earned less than $19,500 in 2013.
- Dependent children whose gross income was less than $6,100 in 2013.
Non-citizens aren't totally exempt from filing income taxes either. In fact, nonresident aliens also have to file income taxes if they were involved in trade or business in the United States in the past year. However, there are several exemptions the IRS allows, like when the sole source of U.S. income is less than the personal exemption or if the noncitizen is a fiduciary for a nonresident alien estate or trust.
Should You File Even If You Don't Have To?
Even if you aren't required to file federal income taxes, it may be beneficial to do so. The IRS may still issue tax breaks or credits even if your income is below the required filing level. For example, you may be entitled to a refund for excess holdings or for the earned income tax credit, according to Forbes.
For more information on who doesn't have to file income taxes, the IRS has a click-through guide to help you. If you're still stuck, consider contacting a local tax attorney for more personal guidance.
February 4, 2014 2:45 pm
I checked in with Stuart Robarts at gizmag.com recently about his take on the 2014 CES. He blogged that cookie sensors were one of the hottest treats drawing attention at the international electronics exposition.
Sen.se Founder and CEO and renowned industry pioneer Rafi Haladjian, has led the pack with his new technology, called "Mother".
According to a release on Mother, the adaptable and programmable device received a 2014 CES Innovations Design and Engineering Award in the “Technology for a Better World” category.
The Mother cookie sensor system is anchored by a benevolent looking base unit that resembles a puffy snowman, or “snow-mom.” Sen.se says Mother can learn and monitor many areas of daily life including "fitness, health, security, well-being and comfort" through its Motion Cookies.
These low-profile, multi-purpose, autonomous sensors connect real-life actions, detecting and understanding movements, temperature and more, the company's website states.
Small and slick, yet powerful with the exceptional ability to analyze, find patterns, learn and continuously readapt, Sen.se's Motion Cookies connect automatically to any application assigned to them.
Once affixed, Cookies transmit data to the nearest Mother, but they don’t have to be housebound.
Even with no Mother in sight, they have the capacity to memorize up to 10 days of data and upload it as soon as they encounter the base unit. Up to 24 Motion Cookies can be connected simultaneously to each Mother system.
Mother can send alerts and notifications about desired activities, or when something urgent occurs via push notifications, text messages, emails, phone calls, sounds and light, and Senseriver, a continuous real-time stream.
All data the Mother collects is transmitted to a Senseboard that can produce trends, prioritize information or statistics, and take action if necessary like changing thermostat settings to make the house toasty warm by the time you get home.
And there are no concerns about privacy because all data collected belongs to the owner.
Mother's initial launch will include 12 applications - a bundle including one Mother base unit and four Motion Cookies. Once they have the system installed, a user can order additional Motion Cookies - each four pack costs $99.
Go to Sensemother.com for additional information.
February 4, 2014 2:45 pm
Grace period. Specified period of time to meet a commitment after it becomes due, without penalty or default. For example, most lenders allow a two-week grace period after the due date of the mortgage payment before a late fee is imposed.