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Something useful… and free.

The public is invited to stop by AAA’s free paper-shredding event on Saturday, May 20 from 10 a.m. to noon on the parking lot of AAA’s headquarters office in Tulsa at 2121 E. 15th St., just west of Lewis Ave. on the north side of 15th St. [/or_column_text][/or_column][/or_row][or_row][or_column width=”12/12″][or_column_text animateswitch=”no” animateevent=”onhover”] Documents will be shred on-site. There will be no need to worry about paperclips, staples or soft spirals. The machine will deal with all of those items.

Bring all materials to be shred in grocery sacks.

Meanwhile, when you consider real estate, call me with your real estate questions and when you are considering a buy or sell.

A public service announcement presented by Wayne Barnes – (918) 645-1470 Broker Associate, Coldwell Banker Select.

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 Top Ten Reasons Why
You Need an Amortization Schedule

1. Verify the interest factor used in your mortgage.

The interest factor is a number that is used at the end of each payment period to perform an interest calculation of what you owe in interest. The interest factor is also used to calculate the effective interest rate. The effective interest rate is the only way of comparing a mortgage to another financial vehicle, such as a GIC or mutual fund.

Continue Reading…

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While many of us don’t do the Black Friday shopping it is nice to know that as we prepare the  meal  if we need something there will be  some stores such as Kmart, Walmart, Dollar General, Family Dollar   which will be open early. (See list below to confirm)

DOLLAR TREE will be open at 8am but will close at 4pm if you need foil pans or paper dinner napkins and such.

You might want to make your shopping map including the times and locations of the stores you plan to visit.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

CHRISTMAS SEASON 2013 KICKOFF

  • Best Buy Stores: Open at 6 p.m. on Thanksgiving (six hours earlier than last year’s midnight opening.) until 10 p.m. on Friday.
  • Belk — all stores open by 8pm on Thursday, November 28. See the Belk leaked ad scan here.
  • CVS — Traditionally open regular hours on Thanksgiving, and the Black Friday freebies are usually also available beginning that day. Pharmacies may be closed for some of the day, however.
  • Dollar General 7 a.m. on Thanksgiving Day and continue throughout the weekend. Go here to see sales
  • Dollar Tree 8am to 4pm at the one on 71st between  Memorial and Mingo in Tulsa  (Check with the ones in your area.)
  • Family Dollar starts at 8 am! http://www.theblackfriday.com/family-dollar-blackfriday.shtml
  • J.C. Penney: Open at 8 p.m. on Thanksgiving (, although the annual freebie giveaway doesn’t go live until 4am.) They will remain open for 25  hours, until 9 p.m. on Friday.  
  • Kohl’s : Open at 8 p.m. on Thanksgiving until midnight on Saturday. (52 hours straight!)
  • Macy’s: Open at 8 p.m. on Thanksgiving until about 10 p.m. on Friday at most stores, although the leaked Macy’s Black Friday ad also has coupons good on Saturday, November 30 as well.
  • Sears: Open at 8 p.m. on Thanksgiving until 10 p.m. on Friday.
  • Kmart: Open at 6 a.m. on Thanksgiving until 11 p.m. on Friday which is 41  hours!! The chain is bragging they will have 41 straight hours of deals for bargain hunting holiday shoppers.
  • Staples: Open at 8 p.m. until midnight. Reopen at 6 a.m. until 9 p.m. on Friday.
  • Starbucks — Historically, non-mall stores are open all or partial hours on Thanksgiving Day, then close for a few hours before they start brewing coffee for caffeine-deprived shoppers on Black Friday. Look for some stores to stay open around the clock, though, especially if they’re in open-air shopping centers.
  • Target: Open at 8 p.m. on Thanksgiving until 11 p.m. on Friday. (Target will also be offering hundreds of deals online on Thanksgiving morning that will include almost all deals that will be available in the store. In addition, the discounter said it will feature 15 online-only daily discounts for two weeks beginning Sunday, Nov. 24.)
  • The Gap, which operates Old Navy, Gap and Banana Republic, is opening half of its stores on Thanksgiving morning.
  • Toys R Us: Open at 5 p.m. on Thanksgiving until 10 p.m. on Friday with some ‘Black Friday’ doorbusters only being offered until 9pm Thanksgiving night. To add to the date & time confusion, Rewards members can shop select Black Friday deals as early as Wednesday, November 27. See the leaked ad scan here.
  • Wal-Mart: Open 24 hours at most stores, although we haven’t yet heard what time the Black Friday doorbusters will go live for 2013..
  • Walgreens The Walgreens Black Friday 2013 ad leaked, and it shows that most locations will be open on Thanksgiving Day with up to 50 percent off toys
    Black Friday freebies and deals go live at 12:01 am on Thanksgiving.


Beginning January 1, 2013, a new 3.8 percent tax on some investment income
will take effect. Since this new tax will affect some real estate transactions, it is
important to clearly understand the tax and how it could impact you. It’s a complicated tax, so it is unpredictable how it will affect every buyer or seller.

To get you up to speed about this new tax legislation, the NATIONAL
ASSOCIATION OF REALTORS® has developed this informational brochure.

(You can download this pdf file with the link below the picture.
You can also open the pdf file in a new window with the icon on the right of the picture and print from there.)

Continue Reading…

On November 24, 2010, in Breaking News, Law & Policy, Politics & Government, By Robert Freedman, Senior Editor, REALTOR® Magazine

Shortly after the federal government enacted sweeping healthcare reform earlier this year, there was considerable concern over a last-minute addition to the legislation: a 3.8 percent tax on investment income of upper-income households to help shore up Medicare. The tax takes effect in 2013.

Among the concerns expressed among consumers and business people, including real estate professionals, both then and today, is that the tax amounts to a transfer tax on real estate. Not true, NAR Director of Tax Policy Linda Goold says.

Here’s how the tax works. For individuals earning $200,000 a year or more and married couples earning $250,000 a year or more, certain investment income above these income levels might be subject to the 3.8 percent tax on a portion of that income. I say “might” because whether the tax applies or not depends on many factors having to do with the kind and amount of the investment income the household receives.

Investment income includes capital gains, dividends, interest payments, and, for those who own rental property, net rental income.

Importantly, the $250,000 (for individuals) and $500,000 (for married couples) capital gain exclusion on the sale of a principal residence remains in place. So, if you’re a married household that sold a house for a $500,000 gain (that’s gain, not sale proceeds), that amount remains excluded from your income calculation.

Let’s take a look at a married couple that has $325,000 in adjusted gross income (AGI), plus $525,000 in capital gains from the sale of their house. This household would be considered upper-income by most standards. Not only is their income relatively high, at $325,000 (adjusted gross income, or AGI), but they’re receiving a $525,000 gain on their house sale. Presumably, they bought their house years ago and it’s appreciated over the years, so upon selling it, their gain is a relatively high $525,000.

For this household, only $25,000 in investment income would be subject to the 3.8 percent tax. That would amount to $950. That’s because it’s the $25,000 over the $500,000 capital gains exclusion that’s taxable.

Before they would know that, though, they would have to do a calculation that involves their adjusted gross income. They would have to add their capital gain of $25,000 to the amount of their income above the $250,000 income trigger (for married couples). Since their income is $325,000, they would add the $25,000 to $75,000 ($325,000 – $250,000), which would equal $100,000. Then they would compare the $25,000 to that $100,000, and apply the tax to the lesser of the two, which is the $25,000. Thus, $25,000 x 3.8% = $950.

So, you have a household that had income of $850,000 for the year, and its tax on investment equaled $950.

This is a simplification. Other tax issues could come into play. But it shows that the tax applies to just a portion of investment income for certain upper-income households and that the capital gains exclusion remains untouched.

Nobody likes taxes, and this tax was inserted into the legislation at the 11th hour as a “pay-for,” that is, as a revenue generator to help offset some of the costs of the reform. It’s expected to generate $325 billion over eight years.

NAR has prepared a brochure that looks at how the tax might apply under eight income scenarios: 1) sale of principal residence (which we just looked at), 2) sale of a non-real estate asset, 3) gain, interest, and dividend from securities, 4) real estate investment income, 5) rental income as sole source of earnings, 6) sale of second home with no rental use, 7) sale of inherited investment property, and 8. purchase and sale of investment property.

You can download the brochure for free. It’s written in plain language and I think you’ll find it organized efficiently, so you can see at a glance the potential considerations for the different scenarios. Of course, it’s just guidance: each household’s situation will be different, so you would want to suggest to your customers and clients that they consult with a tax advisor to make sure the tax is applied correctly in their case.

You can also get a good sense of how the tax works in the video above, in which Goold walks through a sample income scenario.

The Philosophy of Renting

Top 6 reasons to rent an apartment rather than buy a house:

  1. I like moving.
  2. I like the surprise of rent increases.
  3. I don’t need any tax deductions.
  4. I don’t want a yard.
  5. I don’t want a garage.
  6. I want to make payments forever.

Did you know that you can own a home and probably have lower payments than your current rent?

 Renting is hazardous to your Wealth!

Look at the chart to see how much money you’re losing …..

 WHILE YOU OWN NOTHING!

Your
Monthly Rent

After 3
Years

After 4
Years

After 5
Years

$500

$18,000

$24,000

$30,000

$600

$21,600

$28,800

$36,000

$700

$25,200

$33,600

$42,000

$800

$28,800

$38,400

$48,000

$900

$32,400

$43,200

$54,000

$1000

$36,000

$48,000

$60,000

$1100

$39,600

$52,800

$66,000

 WHY ARE YOU STILL RENTING?

You can even get help with down payment and closing costs!!

Call me today to find out more or get a FREE consultation.
I’ll show you how to make your money work for you
by owning your own home!!

Take your savings and buy a new car!!!

Contact:  Wayne Barnes — 918-645-1470.
Broker Associate Coldwell Banker Select
Visit www.come2ok.com

 

I have been in several conversations with parents who are planning for future years of college for their children. I always mention that one of the ways to cut some expenses could be to invest in a house for campus life.

One of the advantages would be no dorm costs. Another would be the possibility of roommates to help with expenses. In any case, the house could be sold at the end of the college term with potential equity and interim tax deductions on rental property.

Well, I recently had this article in my monthly newsletter.

Continue Reading…

Invest in College Housing

Have you considered investing in housing for your college student? Living off campus by buying a rental property or condo may be an option worth considering.  With high dorm costs and the opportunity to create a tax shelter for your hard earned money, this is a strategy many parents have found to be beneficial.

An investment property is an excellent opportunity to put your money to work for you, and may even help offset some of the income invested into your child’s education.  However, there are various factors you should consider before making any final decisions.

Continue Reading…

IRS 1040 Tax Form

Ask a roomful of homeowners what’s so great about owning versus renting, and you’ll hear them holler in unison: “the tax deductions!” And it’s true – homeowners who itemize their taxes are able to deduct 100% of their mortgage interest and property taxes from their income tax returns.

That means that if you’re in a 28% tax bracket, Uncle Sam effectively subsidizes about a third of your borrowing costs or more, making your home more affordable or allowing you to buy a larger home than you could have otherwise. Also, big chunks of your closing costs are tax deductible, and hundreds of thousands of dollars of any profit (or capital gains) that you realize when you sell your home are exempt from income taxes.

At tax time, it’s critical to know what you’re entitled to, so you can claim it. So, here are five essential need-to-knows about home-related income tax tips to help you get the most tax-reducing bang out of your home-owning buck – and to avoid hefty home ownership-related tax traps.

1. You Have to Itemize Your Return to Claim Your Deductions

During the recent debate on Capitol Hill about whether the mortgage interest deduction should be eliminated (it won’t be, not anytime soon), it came out that nearly 40% of homeowners lose out on their major tax advantages every year when they fail to itemize their income taxes. If you own a home and otherwise have a fairly simple return, it might be tempting just to take the standard deduction – and if your mortgage, property taxes and income are low enough, the standard deduction might outweigh your homeowners’ deductions. But you’ll never know if you’re losing out on the tax advantages of itemizing unless you try; before you grab a pen and start filling in that 1040-EZ grab those forms from your mortgage company and answer the questions on tax software like TurboTax, which will automatically do the math on whether itemizing or taking the standard deduction will result in the lowest tax bill – or the highest tax refund – for you.

2. Plan Ahead and Be Strategic When Taking a Home Office Deduction

According to the Small Business Administration, the average home office deduction is $3,686 – multiply that by your tax bracket – 15%, 20%, 30% or whatever it is, and that’s what you’ll save on your taxes by writing off your home office. Know, though, that the space you designate as your home office cannot be exempted from capital gains tax when you sell your home later. The $250,000 (single)/ $500,000 (married filing jointly) income tax exemption for capital gains is only good on your personal residence, after all – not including any space in your home you’ve claimed as your tax-advantaged office. If you foresee selling your home for much more than you bought it in the future, near or far, discuss this with your tax preparer to see if the few hundred bucks you save is worth the capital gains complication later.

3. Tax Relief for Loan Modifications, Short Sales and Foreclosures Is Only Around Through 2012

While the long-term housing outlook is beginning to look up, 2011 is projected to be the peak year for foreclosures during this market cycle. Distressed homeowners who are on the brink of a short sale, loan modification or foreclosure should be aware that normally, any mortgage balance that is wiped out by one of these outcomes is taxed as what the IRS calls Cancellation of Debt Income, or CODI.

Under the Mortgage Debt Forgiveness Relief Act of 2007, the IRS is currently not charging income taxes on CODI incurred through a loan mod, short sale or foreclosure on most primary residences through 2012. But right now, banks are taking many months, or even years, to work out mortgages in all of these ways; the average foreclosure in New York state right now occurs only after 22 months of missed mortgage payments. If you foresee any of these outcomes in your future, don’t put things off. Do what you can to get to closure on your distressed home and loan, ASAP, while you won’t have income taxes to add as the insult on top of your significant housing injury.

4. Project the Income Tax Consequences of a Refinance or Property Tax Appeal

Homeowners everywhere are working on applying for a lower property tax bill on the basis of the last few years’ decline in their home’s value. Those who have equity have flocked en masse to refinance their 7% home loans into the 4% to 5% rates of the last few months. These strategies offer some of the heftiest household savings out there for the corresponding investment in time and money they take. But here’s a caveat for savvy homeowners who slash these costs: remember that property taxes and mortgage interest, the very costs you’re minimizing, are also the basis for the major tax benefits of being a homeowner. So plan ahead for your income tax deductions to go down along with your taxes and interest.

5. Don’t Forget Those Closing Costs

If you bought or refinanced your home in 2010, you may be so focused on your mortgage interest and property tax deductions that you forget all about your closing costs. Any origination fees or discount points that were paid to your mortgage lender at closing are tax deductible on your 2010 return, get this – even if the seller paid your closing costs. If you can’t figure out exactly what you paid, look for your HUD-1 settlement statement, that legal sized paper full of line item credits and debits that you should have received from your escrow provider or title attorney at, or just after, closing. Can’t find it? Drop your real estate agent or mortgage broker an email; they can usually get a copy to you quickly.

Note: This post first appeared on WalletPop.com on 2.28.2011.