Are the Reforms Governor Daniels Proposed Going to Affect You?

Originally posted 2009-01-06 14:07:38. Republished by Blog Post Promoter

The Indiana general assembly will be in session soon.  Governor Daniels is planning to outline several proposed reforms.  Will these reforms affect you? Let’s examine.

Below are the outline of the proposed reforms:

• Governor Daniels is proposing replacing the county commissioner with one county executive.
• Governor Daniels is proposing combining election cycles to reduce spending.
• Governor Daniels is proposing making several now elected positions appointed positions.  Those positions include the county assessor, surveyor, coroner, and treasurer.
• Governor Daniels is proposing reducing the health care department.
• Governor Daniels is proposing consolidating smaller school districts into larger ones.
• Governor Daniels is proposing consolidating the local library to a county library.

The proposals that Governor Daniels are outlining in this session of the Indiana General Assembly is according to a Ball State University study estimated to save the state $630 million dollars.  While I happy that the Governor is attempting to save the state money, I have to wonder if there safeguards in place for all the changes that he propose.

Let’s examine each proposal seperately. 

Proposed one has to do with the county commissioners being consolidated into one executive commissioners.  The concerned here is will there be equal representation for all cities and/or all citizens in the county.   Needless to say, there is no safeguard under this proposal for the equal representation of all areas of the county.  Will there be a vote or speaker for each city or town on all issues or will there be one person who decides what is good for the whole with out hearing the whole opinion?

Proposed two is about combining election cycles.  I think this is a good idea.

Proposal three is about appointing not electing certain position to include the county assessor, surveyor, coroner, and treasurer.  I feel this to is a good idea if the people who are appointed to these position are qualified for the position.  I do feel that if this is approved there needs to be an outline of the qualification of the person appointed to these positions. 

Proposal four is about the health care departments.  According to the proposal some areas have too many health care departments.    Once again, there is no safeguard in this proposal for transportation for the low income and elder to the facility that will remain open. 

Proposal five is about consolidating smaller school districts into larger ones.  There is no safeguard in this proposal for equal funding for all schools in the new combine districts.   

 Proposal six is about consolidating the local libraries into a county district library.  I think this would be a good idea if all libraries remain open and equal funding is available to all.

I am sure the officials have their collectively hands full, but it is definitely time to bring Indiana’s government from the Dark Ages.  It is time to reform.  It is time to make changes because the future of the state depends on it.

Tax Woes for Gary Indiana

Originally posted 2008-12-10 08:05:05. Republished by Blog Post Promoter

Gary, Hammond, East Chicago, and Whiting Indiana are cities that will have to make adjustments to business as usually, but these same cities especially, Gary want the state officials to believe it will take four years for the city to cope with 30 million in tax caps.

I find it curious that according to the petition to advisory board Gary is quoted as stating that “Gary faces fiscal devastation that will affect not only its residents but surrounding communities and the state as well.”

Wow, Gary is concerned about surrounding cities, but when this legislation was in the works Gary, Hammond, and East Chicago did not attend any meetings to discuss changes or cut the fat of city Government when recent governmental studies showed there was room for such a cut. 

In addition, the City goes on to stated that major components of the city will be effected negative to include its bus agency, sanitary and storm water districts and Gary/Chicago International Airport.

The City goes on to paint a picture of loom and doom by stating that 800 employees would have to be laid off and included in this layoff will be 250 policemen and firemen.  With the latter statement, the City is wanting a life line to be throw to the City that has misappropriated several million maybe even billions of dollars.  I say no.   

Elimination of police and firemen is not an option, but the three cities Gary, Hammond, East Chicago can look at combining the service.  This option would be more feasible.

Outsourcing trash pick up is another option. 

Closing the jail may be a viable option.

As for the Gary Sanitary District, this same Mayor just voted and implemented a 85% increase in Gary Sanitary costs to residents.  The 85% was not over a period of time but effected immediately, but with this increase there was no mention of improvement to the lift station on Grant Street that is obviously over limit on it movement of wastewater not was there was a mention of how to improve the excessive amount of flood that the City experiences when it is a drop of rain. 

Lastly, I think that the airport needs a plan to may it profitable.   Why hasn’t the official approach Chicago and talk about becoming the three airport for Chicago and develop train service right from the planes to Chicago via the South Shore.  There needs to be a study to determine if air riders would concern flying out of Gary.  Gary has to content with the reptition of the city.  An image change may be implemented before the airport can have a feasibility plan for being profitable. 

However, I find it curious that the very things that are not being provided well are the things that they claim will be lacking if they do not get the same funds.  I also find it curious that now there is a plan, but they need four years to implement. 

I say denied on the four years.  Gary, you have had over 20 years to figure this out.  I think that the citizens are tire of paying for misappropriation of funds.  It is time that the City’s feet be held to the fire.

Your Bailout May Come In Through Tax Credits

Originally posted 2009-04-11 05:00:45. Republished by Blog Post Promoter

Did you know that a misfortune such as getting laid off may yield you tax credits?  How?

Due to the newly revised recovery rebate credit, some taxpayers who did not qualify for a tax credit due their income being above or below a certain level may not qualify for this credit due to a reduction in income in 2008.

In addition to the above credit, taxpayers can look forward to more money in their pockets due to the first-time homeowner credit.  The individuals that are eligible for this credit include individuals who brought their first home between April 9, 2008 and June 30, 2009.

This credit may yield a maximum of ten percent of the purchase price or seven thousand five hundred dollars ($7,500).  If you are married, though, the maximum this credit will yield is three thousand seven hundred and fifty dollars ($3,750).

It is important to not, this credit is considered a loan. It has to be repaid over the next fifteen (15) years.  It is simple to pay the loan back, though, a taxpayer has the option to owe more taxes over the next fifteen (15) years or receive a smaller refund over that same period of time.

Another credit that has received improvement or increase is the child tax credit.  In previous years a parent was eligible for three thousand five hundred dollars ($3,500) exemption for each dependent.  Now, a parent can get an additional one thousand dollars ($1,000) per child as long as the child is under seventeen (17) at the end of 2008.

With most of these upgrades to the tax credit, there is an upgrade to non-qualification for the credit, as well.  In this case, the extra child tax credit is based on your income.  It, however, promises to make more middle income families eligible with its new widening of income brackets.

The last tax credit that received a face lift was earned income credit.  Many more taxpayers may qualify for this credit due to a job loss.

The criteria are as follows:

• A family of two (2) or more children making less than $41,646 may qualify for the credit.
• A family with one (1) child making less than $36,995 may also qualify for the credit.
• Still yet, a family with no children making less than $15,880 may qualify for the credit, as well.
• The amounts that the families qualify for are $4,828, $2,917, and $438, respectively.

For details on any of these credits, please consult an accountant.

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Great News, the End to High Property Taxes Is Almost Here

Originally posted 2009-02-13 06:00:44. Republished by Blog Post Promoter

On February 10, 2009, the Indiana Senate passed an amendment for the permanent cap to property tax bills. The bill passed the Indiana Senate with an overwhelming majority of 34 to 16 vote.  The bill goes to the House for consideration, but House Speaker, Patrick Bauer, suggested that the House representatives wait until next year’s session to vote on the amendment.

With the property taxes being an important issue to the residents and the forefront of the Indiana residents’ mind it may not be wise for the House to postpone their voting on the amendment. 

This amendment will cap the property taxes for homeowners, investors, and business owners, alike.  The homeowners would be able to benefit from only paying one percent of the assessed value of the home.  Whereas, the investors would pay only two percent of the assessed value of the property.  Still yet, the business owner will pay only three percent of the property’s assessed value.

If the amendment is passed by the House, Indiana’s resident can look forward to voting on the amend law in 2010.

Hopefully, the amendment will be approved in the House, as well.  If lower property taxes is important to you contact your congressmen and tell them so.  Your voice does have power.

It Is Pass Time To Make Your Voices Heard

Originally posted 2009-03-25 12:02:00. Republished by Blog Post Promoter

Today is a great day.  Today, there is a group that is taking a stand for the entire state of Indiana on the issue of property taxes. Today, March 25 at 11:30 am. I, too, have taken a stand by promoting their efforts.  Today, you can march on the State House in Indianapolis.  I would have been there, but due to needing repairs to my vehicle and other things I was not able to be there.  I did, however, speak to one of the organizers he explained the reason for the march.

“Revolt at the State House”

He stated that it does not seem to be enough people voicing their displeasure with government activities.  I agree with him.  As a citizen, you have the right to free of speech.  The increase in property taxes is a great reason to voice that opinion.  Let’s examine why?

With over inflated property taxes, the state can not hope to get new industries to come to this state.  Therefore, there will not be any jobs.  Next, there may be the possibly of citizens moving to another state for better opportunities and lower taxes.  No longer is a citizens going to continue to just watch their finances walk out of the door, so state of Indiana wake up.

Lack of Property Taxes Tops News in Northwest Indiana

Originally posted 2008-12-27 09:35:31. Republished by Blog Post Promoter

The Times has an article named, Lake Commissioners Pledge Veto for Food, Beverage Tax.   According to this article the Lake County Commissioners plan to veto the increase in tax on food and beverage.  Alot of the commissioners state that they do not want to go back on their word of “no new taxes”.  The idea of a commissioner trying to be true to campaign pledges is refreshing in an of itself.    One of the commissioner believes that the local government still has not done enough to cut the fat.  I, too, believe that not enough fat has been cut in government. 

One area that needs fat cutting is township assessors. There are over a 1000 township assessors and that is more than California, Texas, Ohio, and Florida.  Now, if you have not noticed Indiana is in some cases half the size of the states mention.  The reduction in township assessors not only save money, but it also is proposed to create fair property tax assessment.

The cutting of assessors is only one area that needs trimming.  Other areas that may need review is the amount of items that is on the property taxes.  The amount of taxes paid need to re-appropriated and it will take all of us to determine the best mode of action to get that done fairly.

Outraged Over Property Taxes

Originally posted 2009-03-23 09:20:57. Republished by Blog Post Promoter

Why isn’t the Indiana property tax assessment making front page news?  I am sure it is making front page news with all the citizens of Porter County who on March 27 is going to have to pay higher property taxes.

I am appalled that the local paper has given little attention to the plight of Porter County’s property tax over-assessment.

Is it that the County Assessor John Scott does not see a problem with the higher taxes?

The assessor simply said, “let the appeal process determine if the taxes are too high.”

Why is it that the Local Government Finance Office care more about the citizens outrage over property taxes than the assessor?

Even local real estate brokers have had increase calls from outraged citizens about recent market values.  

Business owners believe that property taxes have went up 100 percent. 

Do not let yourself be taxed out of your home or business without a fight.  The assessor is not going to fight for you.  You can file an appeal.  You have until April 13 to file that appeal.  Visit www.in.gov/dlgf to get the forms needed to file that appeal.

I have include some helpful video to help with the process, as well.  See the links below:

Good Indication That You Need to File a Property Tax Appeal

Property Tax Appeal Review Video 1 of Section 1

Evaluation of Property Tax Appeal Findings

Indiana Property Tax Appeal (Part 2)

Indiana Property Tax Appeal

What is Assessed Value and How Does it Influenced My Property Taxes

Lack of Property Taxes Tops News in Northwest Indiana

Seniors Deadline Quickly Approaching

Effective Anti-Recession Tips for Your Taxes

Tips for Effective Tax and Personal Anti-Recession Steps

Ask an economist to define recession for you and chances are, they’ll tell you that it is a state of the economy where it declines for at least 6 months.  But that’s just a pretty, picture-book definition.  Recession can affect not just cities and countries, it can also affect individuals and families on a more personal level.  To help you implement tax and personal anti-recession steps, here are things you can do:

Start saving.  Now.

If you have a nest egg stashed somewhere, good for you.  Boost it with more savings.  If you don’t, it’s time to start immediately.  Implement tax and personal savings steps in order to fight the effects of recession.

Cut back on spending immediately.

If you think you need everything you buy, gather your last few weeks’ worth of receipts and rate each item according to necessity.  Chances are, there are a few things there that you’ll realize now that you didn’t really have to buy.

If you see the same pattern in most of your receipts, that’s a sign that you ought to cut back on your expenses and seriously implement a budget or spending plan.  You could, for example, cancel gym memberships and take up running or home exercises instead, buy items on sale instead of at regular prices and put off any large purchases – cars, TVs, video equipment, furniture, etc.

Take big chunks out of your debt.

Your debt can get you down and it will not hesitate to do the same thing to your credit score.  During a recession, a bad credit rating is just not something you want to have.  If you have debts in some form (loans, credit cards, mortgage, etc.), try to pay off as much of your debt as possible.  The earlier you do this, the better it will be for your finances.

Clearing your debts is an excellent anti-recession step because it helps save you money in terms of interest.  It will also give you peace of mind and the personal satisfaction of being in charge.

Consider investing?  Ask a professional.

An experienced financial adviser can help you understand the kind of options you have, given your own resources and the type of risks you are willing to take.  Recession can make investing much more of a challenge, particularly for the uninitiated.  That is why you’ll need all the help you can get in order to find the best places where to put your money in.

Know your deductibles.

Review your tax code for the types of items that you can include in your deductibles.  Remember that not all expenses can be used as deductions.  Only if you can prove them ‘ordinary and necessary’ will the tax man consider them.

Keep all receipts for deductions.

Audit or no audit, it pays to have documents that support your tax claims, especially if they refer to deductions.  Get organized regarding your files, particularly those that pertain to your business or work.  Keep things where you can readily access them and use for reference later.

Consider leasing your business vehicle.

If you want to give yourself better tax performance, a good anti-recession tip to follow is to lease that car of yours.  This will help get you better deductions compared to what you’ll receive if you purchased the vehicle.

When in doubt, always refer to a professional.

The personal anti-recession tips you obtain will usually work seamlessly but some steps involving taxes might have certain limitations.  Before implementing these steps, you might want to consult a basic taxation guide or see an accountant or bookkeeper.  They can guide you on what you can and should do based on your own unique circumstances.

Related articles

• Simple Ways to Recession Proof Your Home (taylorbrownrealestatetalks.com)
• How to Write Off Sales Taxes (turbotax.intuit.com)
• Four Tax Tips to Reduce Your 2006 Taxes (turbotax.intuit.com)
• Video: Federal Tax Deductions for Home Renovation (turbotax.intuit.com)

Seniors Deadline Quickly Approaching

Originally posted 2008-12-15 05:07:16. Republished by Blog Post Promoter

December 31 is the deadline for qualified senior to file for two percent cap on his or her property taxes.   This credit is for seniors in Lake and Porter Counties in Indiana; however, the auditor’s offices in both counties are reporting low or limited interest by seniors.  I am sure this is because most seniors may not know about the need to apply for the credit. 

Under House Bill 1001, seniors will receive a tax credit if his or her adjusted gross income is no more than $30,000 or combined income of $40,000.  In addition, the gross assessed value of the home must be less than $160,000.

The Bill ensures that the qualified homeowner will not receive a property tax increase of more than two percent.  It is important to note that this credit is in addition to statewide property tax caps of 1.5 percent and 1 percent that is scheduled to take effect in 2009.

For example, if the assessed value is $100,000, the statewide cap for next year will result in a tax bill of $1,500.   The senior will enjoy a cap of two percent on his or her assessed value especially if the assessed value increases from one year to the next.

So seniors please apply if you qualify.

Real Estate Investor, Beware

Originally posted 2009-01-01 22:53:35. Republished by Blog Post Promoter

The IRS made changes to the tax that will affect 2007 tax returns if the investor claims a loss. In addition, just reporting a loss may cause your taxes to be audited.

The new law has to do with the real estate investor classification. The investor can be classified as a real estate professional. Under the new law, the investor qualifies as a professional, regardless if licensed real estate agent or broker by working at least 750 hours on real estate activities. The IRS considers real estate activities to be renting, leasing, converting, operating, developing, redeveloping, managing, constructing, and acquiring of real estate.

In addition, as a real estate investor you are limited on your deduction to your passive income in the amount of $25,000. That amount decreases as your passive income increases and tops $100,000. Still yet, the eligibility for the deduction disappears as your income goes over $150,000.

The reason this change came about was due to the increase in number of investors during the market “boom”.

The ramification of these modifications to the tax law hit the investor who works a full time W2 job the hardest. Remember, the losses can only be taken on passive income.

However, under that same law there are two classifications for passive losses. There is material participating passive loss and passive loss.

The material participating rule requires that the investor work on each property for 500 hours. The work can be any or all the qualifying activities listed above. The investor can also opt to combine all properties under one 500 hour block, but the election must be made at the beginning of the tax year.

Another tax law change is that in the designation of a limited partnership’s interest. The properties owned and/or held under this entity is no longer considered material participating, so are not eligible for the deduction if there is a loss.

It is important to note that no longer can research of potential properties that the investor is considering adding to his or her portfolio a valid passive activity.

Keeping accurate records is crucial. The investor needs to keep date, time, location, and activities and in some cases it may be helpful to have photos to show evidence.

The changes mention above came out in December of 2007 and are retroactive to 2007 and may be earlier tax returns. Have your accountant review your current and previous returns to make sure you are in compliance.

Related Real Estate Investing Articles

• Help Offered for Indirect Investors With Madoff (nytimes.com)
• House Flipping Makes a Comeback (online.wsj.com)
• Homebuyer Tax Credit Provides Incentives for Buyers Says Elika Associates (prweb.com)

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