December 2000 Newsletter Highlights
Election Litigation 2000
As I write this we still do not know who will be president for the next four years. Hopefully, by the time you read this, we will know - but since there are so many attorneys involved, it may still be weeks away.
While I don't normally hide my politics (somewhere to the right of Rush Limbaugh, closer to Attila the Hun) I don't want to pick or portray a political preference in this article. I do want to make a few comments about how sickening and hypocritical the whole process is. It's a good thing that I truly feel that the presidency is a relatively irrelevant office (as it pertains to business and the economy).
- If the Republicans are so fired up about "States' Rights" then why did they file their appeals, protests, injunctions, or cases in Federal Court.
- Suggesting that anybody from Chicago with the name of Daley should even comment on the integrity of the election process is laughable.
- Can anybody really tell that there is much substantive difference between the two candidates? It's almost like one of those computer programs that will "morph" one image into another. Each candidate seems to have been created by the results of a focus group.
- If you're going to consider counting "pregnant chads" as the intent of a voter, then you should consider those absentee ballots with clear intentions but improper witnessing or missing postmarks. It needs to cut both ways. "Every vote should count."
- You shouldn't be able to pick and choose which counties to recount; it should be all or none.
- I must admit that both candidates have been reasonably professional in their silence about the process since election day. The same goes for Mr. Clinton (Make a note - I complimented Bill Clinton on something). On the other hand Mrs. Clinton should keep her mouth shut. While I agree that the electoral college is an archaically poor system that should be replaced, her timing to voice this opinion was way off base ("Well Al Gore won the popular vote.").
- I wonder who Clinton is rooting for in all of this.
- Those same people who couldn't figure out the Florida ballot can handle a dozen cards on Bingo night.
- I haven't heard anybody talk about the "voting irregularity" or "voting confusion" in Nevada's ballots. I voted and pushed the buttons of all the candidates I selected. Being totally anal retentive, I rechecked all of my selections and pushed the buttons again - just to be sure. After double checking several candidate selections including president, I noticed that pushing the button this second time "unvoted" your selection. This wasn't pushing a DIFFERENT button and taking that new choice; it was pushing the SELECTED button a second time and turning your selection OFF. Gosh, I'm not sure that my vote was counted as I intended. I think I'll file a lawsuit against the election commission over my confusion (and I can't handle more than 3 Bingo cards at once).
Lastly, even though my personal preference would be for Bush, I heard an interesting factoid recently. In the last 24 legislative sessions (covering 48 years), if one party had control of all three houses (Senate, House, and White) the economy (as measured by stock market performance) performed considerably more poorly than if the parties were split in control. Given that I don't much care who wins - Gush or Bore.
(No that wasn't a typo!)
-- Randy van Reken
The Lender's Corner
by George M. Walsh
FHA Simplified Down Payment
President Clinton signed H R 4635, which contains a 27 month extension of the FHA down payment simplification program. This program will be effective for all loans closed on or before December 31, 2002. This leaves the 3% down payment requirement in place for the borrower.
Conventional Conforming Loan Amounts
Effective December 1, 2000 the new conforming loan amounts for the 48 Contiguous States:
Permanent and Non-permanent Resident Aliens
From "A" paper lenders, the loans are generally sold in the secondary market to FNMA or FREDDIE Mac. The requirements are different from agency to agency. We are permitted to grant loans to non-citizen borrowers providing they meet certain criteria. Check with your lender to determine the programs available for their needs.
Lawful Permanent Resident Alien: Non-United States citizens who hold acceptable evidence of permanent residency issued by the immigration and Naturalization Service (INS).
Non-Permanent Resident Alien: Non-United States citizens who have no valid evidence of permanent residency, but have valid visas.
North American Free Trade Agreement (NAFTA) Workers: Canadian and Mexican citizens who are working in the United States under the terms of NAFTA. They must be treated as non-permanent resident aliens when determining their eligibility for mortgage financing.
George M. Walsh
Countrywide Mortgage
'Tis the Season
I cannot believe another year has gone by already. My mom said many years ago, as you get older, the time is going to go by quicker. How right she was! By the time you read this article, you will have less than 30 days to do your year-end tax planning (along with your holiday shopping and partying). This year did not have many changes to the tax code. For those of you who are former students of mine consider this a refresher course, and for those of you who are new to the real estate game, pay close attention.
Rule 1 - Put off receiving income until 2001 if possible. If a deal is coming down to the wire this year, try putting it of until next year. Why. If it is included in your 2000 income, you have only three and one half months to shelter it. If you get the money in January of 2001, you have until April 15, 2002 to deal with it. That's 15 and a half months away! BUT NEVER BLOW THE DEAL.
Rule 2 - Try to get as many business deductions as possible into this years "books." No, I'm not telling you to "cook the books." IRS says you are entitled to a deduction when you incur it. So if you are thinking about a new computer, cellular telephone, or even office supplies, buy before the year ends. Remember, if you don't have the available funds, CHARGE IT! You can still get the deduction this year, even if you don't pay off the credit card until next year.
Rule 3 - Make sure you keep all receipts and documents to substantiate your income and deductions. Receipts include bank statements, canceled checks, purchase invoices, auto logs, diary, credit card, and petty cash slips.
Rule 4 - If you are in doubt about the deductibility of an item tell your preparer about it. I don't think you would deduct your kid's karate lessons as a business expense. But, check with your tax advisor if you're not sure. Some of us are more conservative than others when it comes to deductibility of an item. My theory is, if they audit you, IRS might not go into the item, therefore you get the total deduction, or if they do, you might walk away with a portion of the deduction, which is much better than no portion of the deduction at all.
There are many more rules than space allows me here. If you want to get in on the others, my final class this year on Managing your Business will be given on December 13. If you have never taken the class now would be an excellent time. My friends at Accountants Stationers in California have a check sheet on business expenses for real estate professionals. If you want a sheet, send me a self addressed stamped envelope. Please no phone calls, faxes, or E mail. The forms are write-protected (printed in lite blue type, so they cannot be faxed or photo-copied). My students and clients love this form.
See you in class. Happy Holidays!
Andy Russo
Home Inspection Red Flags - The Exterior
with Mark Harger, Certified Home Inspector
December 21, 2000 - 6pm - 9pm
Home Inspections have been more and more mainstream in residential sales for years. Now that FHA strongly suggests (but doesn't yet require) home inspections by having the buyer sign several different documents suggesting a home inspection, it is all that much more important. It is probably only a matter of time before FHA makes it law.
Mark Harger of HomeSmart, Certified Home Inspector will be your tour guide through the major items of concern for the exterior of the home. Highlighting this class is Mark's slide show of inspection defects and concerns. This slide show is rated X since Mark puts a big X on the slide over any defect he spots.
Whether you are the onsite agent, or the buyer's agent, these issues are critical for your practice.
Home Inspection Red Flags - The Exterior
3 Hours of Continuing Education
with Mark Harger, Certified Home Inspector
December 21, 2000 - 6pm - 9pm
Please call or fax with reservations or enroll online at http://www.snsore.com/