CHRISTMAS IN ULSTER COUNTY NEW YORK

For a lot of people this is a very hard holiday season. Many people have lost their jobs. Lots of people have lost their faith in human beings due to very dishonest people taking advantage and robbing people of their life savings in many different ways.It seems like every day there is more and more bad, sad news. I want to and need to speak of the wonderful things and the wonderful people I encounter in my travels to counteract all the negative that seems to dominate the scene these days. I invite anybody who is reading this to comment as well on any positve experiences or people you would like to share about this holiday season. So, now unto the wonderful people:

I work with a great bunch of people but I want to talk about one such person. She is always there to help. We had our office holday party the other day and she not only offered her restaurant "The Would" for our party but attended to it like it was one of her "paid" parties. I sit across the way from her at the office and for that I am grateful.

My 87 year old mother lives with me. Our area experiences a lot of outages and I was very worried about this seasons outages and a client suggested to me a person who installs generators. Well, this angel appeared as one Chris Peone, Master Electrician. From our first communication I knew I had an angel on my hands. Not only did he go out of his way to tell me everything I would ever want to know about generators, he was kind enough to offer to bring over one of his extra generators should I experience an outage and lack of heat, free of charge!!!!! My client(and now a good friend) Holli told me he was wonderful and special and now I am experiencing it first hand. So if you need a heating system or air conditioning system or anything electrical call Chris at The Rosendale Hardware Store 845-658-3142(he is the proprietor) and experience a class act of the highest caliber. (Click on photos to enlarge).




THE HAMLET OF HIGH FALLS - I love to go to High Falls. Every store owner has such pride of ownership, the way they decorate their stores, their creativity, the personal attention. It's like all of the great shopping and eating in New York City with out the hassle of crowds and the insane prices. I mean, just look at Jeff and Larry's window at the High Falls Mercantile, need I say more?

Trust me when I say you have to visit each and every store and restaurant in this sweet hamlet to experience the flavor of sweet perfection. Thank you to all of you for creating such delicousness.

I want to praise my friend and manager of my website April Destefano. Not only is she one of my friends and angels, she loves the lord so much it has been so wonderful to be in her company. She also is totally of service to her clients.

Some of my clients will be guest blogging in the near future on the quality of life for them in The Hudson Valley. I look forward to it.

Happy Holiday to all and to all a good night.

Details of Mortgage Forgiveness Debt Relief Act.

This has been reprinted to share with you, my friends, from Rismedia.

Know the Details of the Mortgage Forgiveness Debt Relief Act

RISMEDIA, Dec. 2, 2008-No matter the circumstances, there’s a lot of stress a homeowner goes through in a foreclosure or a short sale.

Brief Background

Prior to December 2007, if a homeowner lost his house due to a bank foreclosure, and the bank forgave any difference between the price it was sold for and what was owed, the homeowner would owe additional income tax on that portion. Yes, it’s hard to believe, but true.

Let’s say the homeowner owed $300,000 on the mortgage, but the foreclosure sale only brought in $200,000. Then the bank forgave the $100,000 shortfall. The homeowner would have been liable for the income tax on the $100,000 debt forgiveness from the bank.

The IRS considered this money effectively paid to the homeowner, and it would be taxable in their top bracket.

Now, because of the unique stresses in the housing industry lately and on our whole economy, in December 2007, Congress stepped in to provide temporary relief in the form of forgiving this debt, but only for the 2007, 2008 and 2009 tax years. After that, the old rule applies again.

To be eligible for this tax relief, the mortgage must be for your principal residence. It does not apply to vacation, investment or other properties. And no more than $2 million of forgiven debt can be excluded from taxable income.

Home Equity Loans

Another very important detail in this temporary tax break is if part of the forgiven debt was a home equity loan and used for purposes other than to build, buy or substantially improve the property, that portion is still taxable. In other words, home equity loans used for vacations aren’t included.

Short Sales

Now, what happens in a short sale? In brief, this can occur when a borrower is behind on the mortgage payments and the lender agrees he can sell his house for less than what is owed on the mortgage. But all proceeds must be turned over to the bank.

The portion of the mortgage the bank forgives, plus any commission expenses or other selling costs, are taxable income if this debt is canceled. Yes, even the commission and selling expenses count.

A homeowner can now receive a $250,000 (single) and $500,000 (married) capital gain exclusion on the sale of their primary residence.

While $7,500 capital gains tax is surely a lot less than the $100,000 canceled by the lender, the homeowner may not think of this or be aware it could happen down the road, perhaps just prior to retirement. And capital gains taxes are always subject to change.

Mortgage Insurance Affected

It is important to also note this act extended mortgage insurance as an itemized deduction all the way through 2010. Yes, there’s a restriction. The mortgage contract has to be entered into between December 31, 2006 and January 1, 2011.

Chris Kaucnik is marketing director for Home Warranty of America. For more information, please visit www.hwahomewarranty.com. Michael J. Greenen is a certified public accountant and certified financial planner located outside of Chicago, Illinois.