Federal tax changes of note

There are several changes and additions to the tax code for 2007 filings. As we know, the Senate passed an economic stimulus package last week. The high point of the deal is a special, one time payment to American taxpayers. Individuals making less than $75,000 per year and couples making less than $150,000 per year should receive from $600-$1200 from the government.

According to an article from the Wall Street Journal Online, several other major changes should bring relief to taxpayers and homeowners. The biggest in my book is mortgage debt relief for homeowners who lose their homes to foreclosure. Say that at the time of foreclosure, you owed $100,000 on your home. The bank that held your mortgage didn't sue you for the outstanding mortgage amount, and wrote if off instead. According to the IRS, that forgiven debt is tantamount to taxable income. So in addition to the traumatic experience of losing your home, you then have the even more traumatic experience of having the IRS tell you the loss of your home was actually a WINDFALL for you (yipee!), and that you should pay taxes on it. Brutal.

Thankfully, the IRS has realized the error of its ways - you no longer have to include the mortgage debt as taxable income if it is less than $2 million.

Also on the slate: a temporary reprieve for those exposed to the Alternative Minimum Tax, tougher rules for charitable donations, and an increase in the standard deduction.

See a breakdown of the biggest changes.

Where Great Things Happen

Check out http://www.wheregreatthingshappen.com/share/. This is a fun site designed to let Durhamites put their own twist on Durham's brand, "Where Great Things Happen". Read stories from your neighbors, and share your own.

We'll Miss You Bob!

Bob Bruss, real estate investor and nationally syndicated columnist, passed away on Wednesday. I read Bob's column every week. He always offered consistent and concrete advice. Through his column he taught people that you can make money in real estate if you are creative, attentive, honest, and willing to listen. In a world filled with "no money down, get rich in 90 days with no experience" real estate gurus, Bob was a class act. Here's a link to his last column.