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

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New Listing in Holly Park! 7234 Joplin St

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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

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New Rental Listing in Town of Chevy Chase!

MLS #: MC7435942

7620 Lynn Drive Chevy Chase Md 20815

3 bedrooms 2 full 1 half bath

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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