Wall Street Journal Reports: What should we do with Estate Taxes?

Estate Taxes?

 

Should the government take a big bite out of inheritances? Does taxing big estates help or hurt the economy and the country? And is such a tax fair to heirs, not to mention the people who worked and saved over the decades to build up those assets?
The estate tax has always been contentious—but now the debate has taken on new life. Because of Senate inaction, the estate tax lapsed at the end of last year. While there's no estate tax this year, heirs of those dying in 2010 may owe full capital-gains tax on sales of inherited property and may actually face a bigger tax bill than they would have if they had inherited in 2009.

Many believe Congress will tackle the estate-tax question in the weeks before it adjourns, along with a slew of other tax matters. What's likely to happen? Many think lawmakers will return the estate tax to its 2009 level—a $3.5 million exemption per individual and a top rate of 45%—and possibly raise the exemption. Heirs of those who die in 2010 may also get the choice of using 2009 rules. If lawmakers don't step in, the tax will return in 2011 with a $1 million exemption per individual and top rate of 55%.
So in the meantime, the debate rages on. And a huge amount of money hangs in the balance.

Foreclosures will continue to rise

No mortgage mods for many of the jobless
  
By Tami Luhby, senior
writer September 23, 2010: 12:11 PM ET

NEW YORK (CNNMoney.com) -- Unemployed homeowners cannot count jobless benefits as income when applying for mortgage modifications if they have loans backed by Fannie Mae. That could greatly limit their ability to get a long-term reduction in their monthly payments.
Because the jobless benefits can't be considered permanent income, the lender will instead evaluate troubled borrowers for forbearance plans of up to six months. The new guidelines, released Tuesday, will take effect Nov 1.  "We don't want to set up borrowers to fail, said Amy Bonitatibus, Fannie Mae spokeswoman. CLICK HERE for Full Article

Washington post Reports: Contractors Making Deals to Stay in Business

Homeowners looking to remodel will find contractors willing to negotiate

By Sandra Fleishman

Special to The Washington Post
Saturday, September 25, 2010 

 With homeowners holding on tighter to their hard-earned dollars -- or trying the do-it-yourself route -- remodelers are fighting to hold on to business by offering to do more for less, said remodelers and experts at this month's annual Remodeling Show in Baltimore.

Some remodelers are cutting their margins sharply; others are willing to do competitive bidding again; and some are offering faster completion dates or more services than before, said industry experts such as Sal Alfano, editorial director of Remodeling magazine, a co-sponsor of the show. "This market is good for homeowners, but not for remodelers," Alfano said.
For a while this summer, it seemed the worst was over. Harvard University's Joint Center for Housing Studies in July issued its Leading Indicator of Remodeling Activity (LIRA), projecting that national homeowner spending for improvements would be up 5 percent in 2010 over 2009 and that the market would continue to improve in the first quarter of 2011.

CLICK HERE for full article

7801 Whiterim Terrace- Our Beautiful New Listing in Woodrock!

7801 Whiterim Terrace, Potomac Md 20854

MC7445431

Offered at $684,900

 3 Bedrooms

4 & 1 Half Bathrooms

3 finished Levels

Large End Unit Townhome

Thoughtful Upgrades Throughout 

Click HERE FOR HD VIRTUAL TOUR

 

New Listing in Holly Park! 7234 Joplin St

Check Out Harrison's New Listing in Holly Park!

 

 7234 Joplin St, Capitol Heights Md 20743

 Offered at $165,000

MLS# PG7442286

3 Bedrooms

1.5 Bath

Gleaming Hardwood Floors, Granite Counters, Recessed Lighting- Main Level

 3 Bedrooms With Plush, Wall to Wall Carpet &  Switched Lighting w/Ceiling Fans-Upper Level

Family Room with Updated Recessed Lights, New, Contemporary Fireplace & Convenient Access to Backyard & Deck

COMPLETELY RENOVATED! MUST SEE!

Click Here for HD Virtual Tour

New Rental Listing in Town of Chevy Chase!

MLS #: MC7435942

7620 Lynn Drive Chevy Chase Md 20815

3 bedrooms 2 full 1 half bath

$3100/month, Immediately available

 Call Harrison- 301-448-6569

Click Here for HD Virtual TOUR

CNN Money Reports: 950,000 must repay Homebuyer tax credit

Homebuyer tax credit: 950,000 must repay


By Les Christie, staff writerSeptember 9, 2010: 2:40 PM ET

NEW YORK (CNNMoney.com) -- Nearly half of all Americans who claimed the first-time homebuyer tax credit on their 2009 tax returns will have to repay the government.
According to a report from the Inspector General for Tax Administration, released to the public Thursday, about 950,000 of the nearly 1.8 million Americans who claimed the tax credit on their 2009 tax returns will have to return the money.  CLICK HERE FOR FULL ARTICLE

John Nalls From Counselor's Title Guest Blogging On MD Power of Attorney

Major Revision to Maryland Power of Attorney Act Effective October 1, 2010 will have substantial Impact on Real Estate Transactions Using a Power of Attorney




The Maryland Legislature has made a major revision to its Power of Attorney statute which could have a significant impact upon real estate transactions wherein a Power of Attorney is being used. The new Maryland General and Limited Power of Attorney Act (Annotated Code of Maryland, Estate and Trusts Article, Sections 17-101 through 204), which applies to every power of attorney executed on or after October 1, 2010, will require that, in addition to being signed before a Notary Public, every Power of Attorney be “attested and signed by two or more adult witnesses who signed in the presence of the principal and in the presence of each other.” This will essentially require the same (or arguably greater) formality for a Power of Attorney as is presently required for execution of a Last Will and Testament. The Notary Public may serve as one of the required adult witnesses. Interestingly, the Real Property Article was not revised and still requires only that Powers of Attorney have the same formality as a Deed. In spite of this, we believe that compliance with the new law is required to have a valid Power of Attorney.

The bill does provide that a power of attorney executed in a foreign state or a military power of attorney will remain valid and enforceable in Maryland provided that, at the time it was executed, it complied with the law of the jurisdiction in which it was signed (for out of state Powers of Attorney) or federal law (for military Powers of Attorney).

The new statute also provides two optional statutory power of attorney forms, stating that “a person may not require an additional or different form of a power of attorney for any authority granted in a statutory form power of attorney” and providing penalties for a refusal to accept one of these forms. However, the statute does not preclude the use of other Power of Attorney forms provided that they are properly executed. These forms do contain specific provisions for real estate transactions, but are not as comprehensive as those prepared by real estate professionals. To read more about the Act and see the forms, you may visit: CLICK HERE FOR MORE INFORMATION

Lastly, the bill provides that a photocopy or electronically transmitted copy of an original power of attorney is as valid and binding as the original but permits a clerk of the court to refuse to record a copy. In light of this language, it is our opinion that it is highly questionable that clerks will accept copies.

Accordingly, Real estate practitioners should ensure that any Powers of Attorney executed after October 1, 2010 be properly witnessed and notarized. It is also highly recommended as a best practice that, in spite of the availability of the statutory forms, parties to a real estate transaction continue to obtain approved real estate specific Limited Power of Attorney forms from the title company to ensure compliance with all legal and lender requirements and title insurance underwriting guidelines in the transaction.

 

John G. Nalls, Esq. Counselors Title, LLC
4400 Jenifer Street, NW, Suite 2
Washington, DC 20015
202-683-1572 office direct
202-686-7223 fax
240-498-8290 cell

New Listing in Gaithersburg! 731 Lake Varuna Drive

731 Lake Varuna Dr, Gaithersburg Md, 20878

Listing Price: $799,000

MLS #: MC7433014

Click HERE for an HD virtual tour

Virtual Tour of New Rock Creek Forest Listing

MLS#: MC7429617

$710,000

 2636 COLSTON DRIVE CHEVY CHASE MD 20815

Click Here for HD virtual Tour

New Prospertity Loan Product Under 3%?!

Ny Times reports: Let the market Crash

Housing Woes Bring a New Cry: Let the Market Fall

By DAVID STREITFELD

Published: September 5, 2010

The unexpectedly deep plunge in home sales this summer is likely to force the Obama administration to choose between future homeowners and current ones, a predicament officials had been eager to avoid.
Over the last 18 months, the administration has rolled out just about every program it could think of to prop up the ailing housing market, using tax credits, mortgage modification programs, low interest rates, government-backed loans and other assistance intended to keep values up and delinquent borrowers out of foreclosure. The goal was to stabilize the market until a resurgent economy created new households that demanded places to live.
As the economy again sputters and potential buyers flee — July housing sales sank 26 percent from July 2009 — there is a growing sense of exhaustion with government intervention. Some economists and analysts are now urging a dose of shock therapy that would greatly shift the benefits to future homeowners: Let the housing market crash.
When prices are lower, these experts argue, buyers will pour in, creating the elusive stability the government has spent billions upon billions trying to achieve. CLICK HERE FOR FULL ARTICLE

Renovation of Historic Howard Theatre Contributes More to Shaw Neighborhood

Howard Theatre: History in the Making - Again

Restoration of the historic theater is set to begin

By MARK STEPHENS 

 

Listen closely and you can still hear the near-perfect voice of Ella Fitzgerald echo in the halls.

The keystrokes of Duke Ellington's piano resonate in the rubble.

A look out from the stage reveals the faces in the crowd -- some young, some old and almost all brown.

One hundred years ago, The Howard Theatre opened in D.C.'s Shaw neighborhood, becoming the first full-sized threater built for black audiences. It attracted the best in black talent.

"You know them," said D.C. Delegate Eleanor Holmes Norton. "Ella Fitzgerald, Billy Eckstine, Shirley Horne, Redd Foxx himself, even Moms Mabley. Such talent could not be suppressed. It had to find a home. That home was The Howard."

The historic theater flourished until the late 1960's, but because of desegregation and the 1968 riots, The Howard's attendance began to decline. It closed its doors in 1970, was reopened in 1975, then closed again just weeks later. It was only used sprodically through the early-1980s and sat shuttered and in a state of disrepair for years afterwards. CLICK HERE FOR FULL ARTICLE

MSNBC reports Plan Launched to assist Underwater Borrowers

Federal assistance for homeowners in trouble on their mortgage

By ALAN ZIBEL

WASHINGTON — The Obama administration is trying to jump-start its sputtering attempts to tackle the foreclosure crisis with an effort to assist homeowners who owe more on their properties than their homes are worth.

Starting Tuesday, the Federal Housing Administration will permit lenders to give these borrowers refinanced loans backed by the government. The lenders will be required to forgive at least 10 percent of the original mortgage amount. Investors who have control over the mortgages as part of their large portfolios will select which borrowers are invited to participate.
The plan was first announced in March. Its rollout represents the latest of numerous efforts by the administration to address the housing bust. So far, the government has only nibbled around the edges of the crisis, as its programs have run into numerous problems.
The lending industry was ill-prepared for a crush of distressed homeowners, the economy worsened and millions of homeowners had taken on so much debt that their financial woes have been nearly impossible to resolve.
Nearly half of the 1.3 million homeowners who have enrolled in the Obama administration's main mortgage-relief program — overseen by the Treasury Department — have already fallen out over the past year.CLICK HERE FOR FULL ARTICLE

Our New Potomac Listing Getting Some Positive Feedback on Another Blog!

 A Google search of the neighborhood turned up  this  blurb about our new listing featured HERE on our blog.  8221 Buckspark lane, in Potomac.


Heres what  a fellow Blogger had to say about our new listing:

"My favorite section of the "East Gate of Potomac" subdivision is on the south side of Democracy Boulevard. These homes were built in the mid-1970's and did not follow the contemporary bent of the rest of East Gate. With great schools, location and the Potomac zip code - the community is a winner.
This home is larger than it looks from the outside. The home is currently being spruced up for sale and looks great from the curb. The foyer is large with nice hardwood floors which carry throughout the main level. Updated powder room and nicely re-done kitchen will save time and money for the new owners. Granite counters and island open into a breakfast area and the family room. A slider leads to a large deck overlooking a lovely backyard.
The upstairs has 5 bedrooms and 3 full baths. The baths have been updated but not fully renovated. The yellow, blue and pink tile in these baths remind you the homes were built in the 1970's. The cabinets and fixtures HAVE been updated and do not need immediate attention. Overall a great upstairs.
The basement is large and freshly carpeted. Plenty of space here to utilize in any way you like. A half bath and "bedroom" can house overnight guests and a separate storage area has plenty of room for shelves and boxes."

Pending home sales rise 5.2% in July Msnbc Reports

Pending home sales rise 5.2% in July

But signed contracts are still well below last year's levels

WASHINGTON — The number of buyers who signed contracts to purchase previously occupied U.S. homes increased in July but remained well below last year's levels, a sign that demand for housing remains weak.

The National Association of Realtors said Thursday its seasonally adjusted index rose 5.2 percent from a month earlier to a reading of 79.4. Economists surveyed by Thomson Reuters had expected the index would fall to 74.9.
The index was still down 19 percent from the same month last year. June's reading was the lowest on records dating to 2001. It was revised slightly downward to 75.5.
The index provides an early measurement of sales activity because there is usually a one- to two-month lag between a sales contract and a completed deal.

Click Here for full article

 

New Listing in East Gate of Potomac!

 8221 Buckspark Lane Potomac, MD. 20854

$974,000 

6 Bedrooms, 3 full 2 half Baths

MC7425735 (Click HERE for HD Virtual Tour)

Ground Breaking for O street market in the Mount Vernon/Shaw Neighborhood

GroundBreaking: O St Market

Ever since we reported back in June that the long stalled O Street Market project (pictured) was finally back on, we have been excitedly waiting for work to get started… and as of today Roadside Development has broken ground on the CityMarket at O!

Click here for Full Article & More Great articles from DCMETROCENTRIC