07 Jan 2013

Personal Finance Article: Avoid These Home-seller Mistakes

By Steve Burke

By Jason Alderman

Now that the housing market has finally begun to stabilize and interest rates remain at historically low levels, more and more homebuyers and sellers are dipping their toes back in the water.

If you're planning to sell your home, you need to understand the tax implications of selling a home as well as be aware of structural and cosmetic flaws in your home and neighborhood that could undermine your asking price or keep the property languishing on the market for months.

First, the tax tips:

  • In general, if you make money on the sale, you can exclude the gain from your taxable income (as outlined below) if you've owned and used the home as your residence for two out of the past five years.
  • You may be able to exclude up to $250,000 of the gain from your income ($500,000 on most joint returns).
  • If you can exclude all of the gain, you don't need to report the sale on your tax return.
  • Gains that cannot be excluded are taxable. You must report them on Form 1040, Schedule D.
  • You cannot deduct a loss from the sale of your main home.
  • For more information, see IRS Publication 523, Selling Your Home (at www.irs.gov).

Many factors can negatively impact your being able to attract buyers and ultimately get the price you want. Sometimes there's not much you can do:

  • If you're located on a busy street or the local school district is subpar, you probably won't fetch as much as for the same house in a better neighborhood.
  • If your house is the only contemporary model in a sea of colonials or if your remodeled McMansion is surrounded by two bedroom/one bathroom cottages, many buyers might be turned off. Not everyone wants to stand out from the crowd.
  • If you started remodeling and didn't complete the job, many people won't want to take that on, even with a significant reduction in price.

However, there are many relatively minor changes that may boost your home's marketability. For example:

  • If your interior or exterior walls are painted with bold colors or textures, it might be worth toning it down with a more neutral palette.
  • If you can afford it, have your home professionally staged, since they know how to maximize space and show off a home's strong points (while hiding its defects.) But if you're using your own furnishings, thin them out.
  • Mismatched appliances, cabinetry and plumbing fixtures stand out like sore thumbs. The same goes for worn floors or carpeting. Discuss with your realtor which improvements might be worth the investment.
  • Make sure your yard is well-tended and has at least basic landscaping. Overgrown weeds and abandoned junk don't help your curb appeal. The same principle applies for common areas if you live in a condominium.

If there are foreclosed homes in the neighborhood, chances are they aren't being well-maintained. Make contacts with the lenders taking over these properties so you can report problems such as vandalism, trash or overgrown yards. If they're unresponsive, ask your city's building department whether they can charge fines or penalties.

Also, work with your neighbors to keep an eye on empty homes. Take turns mowing the lawn, picking up trash and removing graffiti. Anything you can do to bring up the quality of the neighborhood will improve your chance of selling.

04 Jan 2013

Governor, DuPage County Chairman and GOP Leaders Continue Pension Reform Push

By Leslie Wertheimer

Governor Meets with Suburban Leaders and Strengthens Bipartisan Support for Comprehensive Action

WHEATON - January 4, 2013. Governor Pat Quinn today was joined by DuPage County Board Chairman Dan Cronin and several Republican legislators to strengthen the push for comprehensive pension reform by Jan. 9, the end of the current legislative session. The governor met with suburban leaders and discussed the urgent need for action by the General Assembly. Today's event strengthened bipartisan support for comprehensive pension reform.

"Every day that urgently needed action on pension reform is delayed, the problem gets worse," Governor Quinn said. "As elected leaders, we have a responsibility to put politics aside and enact a solution that prevents skyrocketing pension costs from squeezing out core services like education, public safety and health care. We can do that now and we should not wait another day."

Without pension reform, the unfunded liability grows by $17.1 million every single day. According to the Pew Center for the States, Illinois has the worst-funded pension systems in the nation. As Illinois' $96 billion unfunded pension liability grows, it squeezes out more and more funding for crucial services such as education, health care, road repair and public safety from the state budget. Without comprehensive pension reform, all areas of the state budget including assistance provided to local communities across the state will be impacted, endangering operations and the ability of communities to improve their infrastructure.

DuPage County Board Chairman Dan Cronin, who also serves as chairman of the DuPage County Republican Party, served in the General Assembly for almost 20 years. Chairman Cronin is a leader among many business and civic figures who recognize the need for a comprehensive solution to Illinois' most critical financial challenge. Yesterday, a group of better government and civic organizations also endorsed the governor's call for pension reform by Jan. 9.

"Illinois' pension disaster is a statewide problem, not a Springfield problem," Chairman Cronin said. "People come up to me all the time to express their concerns about the pension crisis and ask what we can do about it. The consequences of this crisis know no boundaries and the solution should have no sole ownership or obligation. Taxpayers expect all of us who serve in public office - from the statehouse all the way down to here at the county and local level - to step up and support meaningful reform measures. The future viability of our state depends on it."

 

In April, Governor Quinn proposed a plan that would fully fund the pension system by 2042 and prevent skyrocketing pension costs from squeezing out core services. The governor also launched an education effort to build public awareness about the need for legislative action on pension reform in Springfield and empower citizens to make their voices heard. The governor and his senior staff have been meeting with legislators, leaders and their staffs for weeks to forge common ground on pension reform. The governor continues to work with legislators every day to enact a solution as soon as possible.

The following legislators attended today's meeting: Rep. Darlene Senger, Rep. Chris Nybo, Rep. Michael Fortner, Rep. Jim Durkin, Rep. Michael Connelly, Rep. Patti Bellock, Rep. Franco Coladipietro, Rep. Randy Ramey, Rep. Dennis Reboletti, Sen. Ron Sandack, and Sen. Tom Johnson. 

The legislature is scheduled to end its legislative session Jan. 9. For more information, visit www.ThisisMyIllinois.com.

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03 Jan 2013

Statement from Governor Quinn Regarding the Fiscal Cliff and the Urgent Need for Pension Reform

By Leslie Wertheimer

CHICAGO - January 2, 2013. Governor Pat Quinn today issued the following statement regarding the U.S. Congress' bipartisan action to avoid the fiscal cliff and the urgent need for pension reform in Illinois before Jan. 9:

"I salute President Barack Obama for his leadership and the members of Congress who took decisive and bipartisan action yesterday to avert the nation's fiscal cliff.

"It was encouraging for Illinois and the country to see members from both sides of the aisle step up and find common ground to prevent a devastating fiscal disaster. The historic vote they took will help maintain unemployment benefits for two million people across the country and 89,000 in Illinois, to ensure our economic recovery continues during this critical time.

"Illinois lawmakers must take heed and act quickly in this Jan. 2 - 8 session to address our state's own fiscal cliff.

"Every day that urgently needed action on pension reform is delayed, the problem gets worse. Our unfunded pension liability has reached $96 billion and without pension reform, it grows by $17 million every single day.

"Lawmakers now have the opportunity to act to prevent skyrocketing pension costs from squeezing out core services like education, public safety and healthcare.

"I continue to work every day with lawmakers and legislative leaders, and urge them to send me a bill that stabilizes our pension systems before Jan. 9.

"Illinois cannot move forward without pension reform."

 

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02 Jan 2013

Loebsack Statement on the Fiscal Cliff Legislation

By Joe Hand

Washington, D.C. - Congressman Dave Loebsack released the following statement this evening on the legislation to stop the impending middle class tax hikes and address the fiscal cliff.

"What we have seen take place in Washington over the last few months, and especially in the past few days, is nothing short of unconscionable.  This is not a way to run the greatest country on earth. The people of Iowa expect and deserve better.

"Throughout this process my number one goal was to prevent middle class and working families from seeing their taxes go up at a time when millions are struggling to recover.  I have pushed for a big, long-term deal that would also protect small businesses and family farmers.  While this deal is not what I would have preferred, I believe that we must allow it to pass in order for these tax rates to remain the same for those who simply cannot afford to see those rates increase.

"Given tonight's action merely provides a short two-month reprieve from the artificial deadline the Budget Control Act originally mandated, starting tomorrow, Congress and the President must meet to discuss how we will prevent our economy from sliding backwards and how best to resolve our long-term deficit and debt problem.   I look forward to hearing from Iowans in the coming weeks about how we can best address these issues.  We must lay the groundwork for long-term economic prosperity for hardworking Iowans who want nothing more than to provide a decent life for themselves and their families."

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02 Jan 2013

Loebsack Statement on Failure to Avoid the Fiscal Cliff

By Joe Hand

Washington, D.C. - Congressman Dave Loebsack released the following statement today after the House of Representatives failed to pass legislation to stop the impending tax hikes and going over the fiscal cliff at midnight tonight.  Earlier this year, Loebsack introduced compromise legislation that would preserve tax cuts for middle class families, small businesses, and family farms in order to avoid going over the fiscal cliff.

"The failure by Congress to act and avoid going over the fiscal cliff is deeply disappointing. Unless a fair resolution to this crisis is found immediately, this inaction will undercut our struggling economy and the foundation of economic growth - middle class families. By refusing to act, Washington is once again taking our economy to the brink. Washington must be working to boost our economy, not undermining economic growth.

"We reached this point because of Washington's failure to act. Our economy is not a political game. I remain hopeful that a deal can be reached and middle class Iowans will be spared."

  ###

27 Dec 2012

Loebsack to Boehner: Bring the House Back to Stop Middle Class Tax Hikes

By Joe Hand

Washington, D.C. - Congressman Dave Loebsack today demanded that the Speaker of the House, John Boehner, put aside his political posturing and bring the House back into session and vote on commonsense legislation to stop the impending tax hikes and going over the fiscal cliff.  Loebsack has remained in Washington since Congress recessed, prepared to work on a bipartisan solution, and has introduced compromise legislation that would preserve tax cuts for middle class families, small businesses, and family farms.

"I call on you to immediately bring Members of the House back to Washington, DC and to vote on commonsense legislation to stop these tax increases and the fiscal cliff," Loebsack wrote in a letter to Speaker Boehner.  "Iowans cannot afford more of the same, and they cannot afford any further delay. It's time for the House to move forward with a compromise. I have remained in Washington and stand ready to work with anyone who will put posturing aside and pass a commonsense, balanced solution."

The Honorable John Boehner
Speaker of the House

US House of Representatives
H-232, The Capitol
Washington, DC 20510

Dear Speaker Boehner:

There are five days left until our country reaches the fiscal cliff and middle class Iowa families see their taxes go up. Congress cannot waste one additional minute with political posturing. The  House must act immediately to stop tax hikes on the middle class, sequestration, and the fiscal  cliff from octzurring'

Over the past year, Congress has taken one undeserved vacation after another. It is the height of  irresponsibility that the House of Representatives is taking yet another vacation with just five  short days to address the critical challenges that have been kicked down the road by this Congress again and again. There is no time to waste. The House cannot continue to sit on the sidelines while the clock runs out and Iowa families face looming tax increases they cannot  afford.

I call on you to immediately bring Members of the House back to Washington, DC and to vote on commonsense legislation to stop these tax increases and the fiscal cliff. Iowans cannot afford  more of the same, and they cannot afford any further delay. I introduced compromise legislation months ago that would preserve tax cuts for middle class families, small businesses, and family farms. It's time for the House to move forward with a compromise. I have remained in Washington and stand ready to Work with anyone who will put posturing aside and pass a commonsense, balanced solution.

Sincerely,

Dave Loebsack
Iowa's Second District

27 Dec 2012

7 Tips for Keeping Your Financial Fitness Resolution

By Ginny Grimsley
CFP Shares Easy Ways to Start 2013 Off Right

The new year is a great time to get yourself pointed in the right direction financially.
"Making small improvements at the beginning of the year is a lot easier than trying to play catch-up," says financial planner Rick Rodgers, author of "The New Three-Legged Stool: A Tax Efficient Approach To Retirement Planning" (www.TheNewThreeLeggedStool.com).

"Just as you would embark on an exercise program to lose weight and get physically fit, there are simple steps you can take that will lead to being financially healthy and fit."
Here are Rodgers' seven tips for improving your financial life in 2013.

• Review your credit report - Borrowing money isn't the only reason to check your credit.  Employers check credit reports and so do insurance companies.  Your credit score can have a profound effect on the amount you pay for auto and homeowners insurance -- and perhaps on health and life insurance in the not-too-distant future. Order your free credit report at AnnualCreditReport.com.

• Set up an Automatic Savings Plan (ASP) - If your employer doesn't offer this through payroll deduction you can set one up through your bank or brokerage account.  Simply have a certain amount of money withdrawn from your checking or savings account each month and deposited into your investment account. That way, you save it before you ever have a chance to spend it. Try to increase the amount you invest at least once a year.

• Establish a cash flow plan - Business owners know you can't control what you don't track.  Take the time to forecast your income and expenses for the year, and put it in writing. Then adjust those numbers to reach your goals, such as paying down debt or replacing a car.  Track your progress on a regular basis by holding a monthly family finance meeting to review the plan.

• Pay off your credit cards - It's especially important to take action on debt in 2013.  Cash doesn't earn much interest sitting in a deposit account (less than 1 percent) and even "low interest" credit cards charge 10 to 12 percent.  So if you're sitting on any extra savings, consider using it to pay down credit card debt.  Your cash flow plan should include a schedule to eliminate credit card debt as quickly as possible.

• Shop your insurance - Insurance agents are often paid commission based on premium levels, so they have no incentive for finding existing customers lower premiums. However, there is a huge incentive for a competing agent to find you the lowest premium in order to win your business. Make note of the coverage levels you have for your homeowner's and auto policies and use them to comparison shop. Look at ways to save on your health insurance coverage, too, such as switching to a high-deductible plan and opening a Health Savings Account.

• Write an estate plan - At a minimum you need to have a valid will, power-of-attorney (POA) for your finances and health-care decisions, and a living will (Advanced Healthcare Directive in some states).  Decide who will be your personal representative in the event you become incapacitated (POA) or at your death (executor).  If you have minor children, choose who will raise them in your absence and establish a testamentary trust for their finances.

• Meet with a financial adviser - An adviser is to financial planning as a personal trainer is to an exercise program.  Allow yourself to be held accountable by a third party who will push you to help yourself.  Good advisers will help you develop a budget, look at your debts, tax situation, retirement and college savings, estate planning and insurance. You don't have to be a high-net-worth individual to seek the assistance of a financial adviser.  Go to the National Association of Personal Financial Advisors (NAPFA) and search for one in your area.

Don't just make a vague resolution to save money. According to Psychology Today, of the millions of American's who make a New Years resolution, 40 percent have already failed by Jan. 31.  Let 2013 be the year you make lasting changes to improve your financial life.

About Rick Rodgers

Certified Financial Planner Rick Rodgers is president of Rodgers & Associates, "The Retirement Specialists," in Lancaster, Pa. He's a Certified Retirement Counselor and member of the National Association of Personal Financial Advisers. Rodgers has been featured on national radio and TV shows, including "FOX Business News" and "The 700 Club," and is available to speak at conferences and corporate events (www.RodgersSpeaks.com).

27 Dec 2012

Retirement Plan Limits Increase in 2013

By Jason Alderman

By Jason Alderman

Benjamin Franklin once declared, "Nothing can be said to be certain, except death and taxes." Although I don't have any updates on the former, where taxes are concerned I do have news:

As it does every year, the Internal Revenue Service announced 2013 cost-of-living adjustments to many of the amounts you and your employer can contribute toward your retirement accounts. These new limits mean most people will be able to contribute more money in tax-advantaged accounts for their retirement savings.

Here are highlights of what will and won't change in 2013:

Defined contribution plans. The maximum allowable annual contribution you can make to workplace 401(k), 403(b), 457(b) and federal Thrift Savings plans increases by $500 to $17,500. Keep in mind these additional factors:

  • People over 50 can also make an additional $5,500 in catch-up contributions (unchanged from 2012).
  • The annual limit for combined employee and employer contributions increased by $1,000 to $51,000.
  • Because your plan may limit the percentage of pay you can contribute, your maximum contribution may actually be less. (For example, if the maximum contribution is 10 percent of pay and you earn $50,000, you could only contribute $5,000.)

Individual Retirement Accounts (IRAs). The maximum annual contribution to IRAs increases by $500 to $5,500 (plus an additional $1,000 if 50 or older - unchanged from 2012). Maximum contributions to traditional IRAs are not impacted by personal income, but if your modified adjusted gross income (AGI) exceeds certain limits, the maximum amount you can contribute to a Roth IRA gradually phases out:

  • For singles/heads of households the phase-out range is $112,000 to $127,000 (increased from $110,000 to $125,000 in 2012). Above $127,000, you cannot contribute to a Roth.
  • For married couples filing jointly, the range is $178,000 to $188,000 (up from $173,000 to $183,000 in 2012).

Keep in mind these rules for deducting traditional IRA contributions on your federal tax return:

  • If you're single, a head of household, a qualifying widow(er) or married and neither spouse is covered by an employer-provided retirement plan you can deduct the full IRA contribution, regardless of income.
  • If you are covered by an employer plan and are single or a head of household, the tax deduction phases out for AGI between $59,000 and $69,000 (up from $58,000 to $68,000 in 2012); if married and filing jointly, the phase-out range is $95,000 to $115,000 (up from $92,000 to $112,000 in 2012).
  • If you're married and aren't covered by an employer plan but your spouse is, the IRA deduction is phased out if your combined AGI is between $178,000 and $188,000 (up from $173,000 to $183,000 in 2012).
  • For more details, read IRS Publication 590 at www.irs.gov.

Retirement Saver' Tax Credit: As an incentive to help low- and moderate-income workers save for retirement through an IRA or company-sponsored plan, many are eligible for a Retirement Savers' Tax Credit of up to $1,000 ($2,000 if filing jointly). This credit lowers your tax bill, dollar for dollar, in addition to any other tax deduction you already receive for your contribution.

Qualifying income ceiling limits for the Retirement Savers' Tax Credit increased in 2012 to $59,000 for joint filers, $44,250 for heads of household, and $29,500 for singles or married persons filing separately. Consult IRS Form 8880 for more information.

21 Dec 2012

Schilling Statement on House Passage of NDAA

By Brian Smith
Thursday night, the House passed the H.R. 4310 - National Defense Authorization Act (NDAA) for Fiscal Year 2013 Conference Report, by a bipartisan vote of 315-107.  The final bill included a number of provisions Congressman Bobby Schilling worked hard to include in this year's NDAA.  

Schilling is the only Illinois member of Congress on the House Armed Services Committee (HASC).  During his term he has fought for common-sense policies that promote public-private partnerships, create jobs and provide care and support to our warfighters and their families.

The NDAA authorizes $640.7 billion in funding for defense and national security priorities, provides a 1.7% pay increase to military personnel, and prevents Guantanamo Detainees from being moved to U.S. soil.  According to the Congressional Budget Office, this legislation would reduce the deficit by $52 billion over the next 10 years.

In May, with the support of Congressman Schilling, the House approved H.R. 4310.  The final bill approved yesterday includes a number of House provisions Schilling worked to include :

Language authored with Congressman Dave Loebsack (IA-02), also a member of HASC, to ensure the Department of Defense (DOD) recognizes the critical manufacturing work done at facilities like the Rock Island Arsenal (RIA)  in our overarching national security strategy, and reviews how to maintain those skills and therefore the people who do the work.  Schilling and Loebsack built on their historic, bipartisan work to strengthen the arsenal in last year's NDAA.

Language in Section 735 authored with Congressman Steve Stivers (OH-15) to better shape the policies and practices of TRICARE to efficiently and effectively account for the specific health care needs of children.  TRICARE is the military health care system covering 9.6 million, including military retirees, the children and families of active duty soldiers, and National Guard and Reservists.  As the program's reimbursement structure is based on Medicare, TRICARE often adopts policies and practices from Medicare that do not account for pediatric health care delivery and settings.  This Schilling and Stivers language will convene a working group to review and make recommendations for improving TRICARE policies and practices to account for children's needs, and work jointly with specialty providers of children's health care.

Language in Section 587 authored with Congressman Dan Lipinski (IL-03) to encourage cooperation between the DOD and universities to uncover the remains of American troops who died in action overseas. This bipartisan provision will help provide closure for families with lost loved ones, and will honor those who gave so much for our country.  Universities such as the University of Illinois are already working to reduce the backlog of cases that have been reported but not investigated or for which remains have been located but not recovered, but there is bureaucratic red tape that complicates coordinating efforts with the DOD.  This provision will help DOD be more cost effective and increase the speed at which we can bring our warfighters home from more friendly countries, allowing the DOD to focus on its recovery efforts in more dangerous areas of the world.

Language in Section 1641 authored with Congresswoman Judy Chu (CA-32), who serves with Schilling on the Small Business Committee, to reform small business contracting and make it easier for small contractors wishing to do business with the federal government.  Small businesses have proven that they can perform a service or produce goods for the government at a lower cost and often at a faster pace than their larger counterparts, but many challenges remain for businesspeople seeking to break through the bureaucracy.  This bipartisan provision allows the Small Business Administration to oversee civilian mentor-protégé programs (programs intended to partner small businesses with established mentors to improve the small business' ability to win contracts and subcontracts), facilitating inter-agency agreements, guaranteeing that programs benefit small businesses, and encouraging equal treatment among all small businesses, including those owned by women and minorities. 

The legislation includes a number of broader provisions as well, including:  

Provisions providing for the warfighter and military families: The NDAA seeks to provide our warfighters and their families with the care and support they need, deserve, and have earned.  It ensures that our military is robust, flexible, and capable.  The NDAA rejects Administration proposals to increase some TRICARE fees and establish new TRICARE fees; authorizes a 1.7 percent pay increase; and extends bonuses and special pay for our servicemen and women.  It also reflects a bipartisan effort actively supported by Schilling to provide new regulations and procedures to combat and prosecute sexual assault within the military.

Provisions to maintain and rebuild our military: The NDAA does not authorize additional rounds of Base Closure and Realignment Commission (BRAC) in either FY2013 or FY2015, as had been called for by the Department of Defense.  Schilling strongly opposed efforts to authorize a BRAC.  The bill includes and restores vital systems, platforms, and authorities to maintain America's combat power after a decade of war.

Provisions pertaining to detainees: The FY2012 NDAA reaffirmed U.S. authority to pursue terrorists who are part of or substantially support al Qaeda, the Taliban, or associated forces.  The FY2013 NDAA, though the incorporation of the Right to Habeas Corpus Act, makes clear beyond a shadow of a doubt that every American will have his day in court.  It also prohibits the transfer of Guantanamo Bay detainees to the United States.

# # #
To send Congressman Schilling an e-mail, click here
21 Dec 2012

National Women's Clothing Retailer, maurices, Plans to Move to New NorthPark Location

By Sarah Troutwine

(Duluth, MN) A nationwide clothing store for young women, known for trendy fashions that don't break the bank, announces plans to relocate the maurices store currently located at Northpark Mall, 320 W Kimberly Road in Davenport.

maurices' fashion attitude will appear in force when the new store opens in the Northpark Mall, Space 0058. The store will continue to be open for business while the new location is under construction. The new 5,190 square footage store will grand open planned for end of February 2013. Neil McPhail, SVP - Stores, adds, "We look for the best opportunity in each market. The new space we are moving into looked like the perfect opportunity to continue to reach maurices target customer and continued success of our business.

"We are very excited about opening a brand new store that will offer our customers an exciting new fresh décor and design that is easy and fun to shop," says Store Manager Sarah Troutwine.

maurices has been inspiring young women since 1931 and will continue to sell adorable, affordable fashions in sizes 1-24.

brands of Studio Y and Wear @ Work, plus some of the best-known brands in denim, including Silver®.

About maurices
maurices, a brand of Ascena Retail Group, Inc. (NASDAQ - ASNA), is the leading hometown specialty store and authority for the savvy, fashion-conscious girl with a twenty-something attitude. Today, maurices operates over 833 stores in 46 states and Canada. maurices stands for fashion, quality, value and customer service. Offering sizes 1-24, our styles are inspired by the girl in everyone, in every size. For store information and to shop online, visit maurices.com.

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