Governor to Act on Transit Bill

As you know IAR(Illinois Association of REALTORS) has been working hard the last several months in opposition to the real estate tax increase which has been part of the proposed bailout for mass transit. Both the House and Senate approved a long-term mass transit funding bill today. The Governor has vowed to support the bill while using his amendatory veto authority to make sure senior citizens can use public transportation for free.The bill increases sales and real estate taxes in the Chicago area by more than $500 million for the Regional Transportation Authority, which includes CTA and the suburban PACE bus system.Here are some links with more information.

http://www.chicagotribune.com/news/local/chi-legis_11_webjan11,1,1176332.story?track=rss&ctrack=1&cset=true

http://www.suntimes.com/news/metro/735936,ctaupdate011008.article

SEVEN WAYS TO GET A JUMP START ON YOUR TAXES

Earlier is better when it comes to working on your taxes. Taxpayers are encouraged to get a head start on tax preparation, especially since early filers avoid the last minute rush and get their refunds sooner.

Here are seven easy ways to get a good jump on your taxes long before the April deadline is here:

1. Gather your records in advance. Make sure you have all the records you need, including W-2s and 1099s. Don’t forget to save a copy for your files.
2. Get the right forms. They’re available around the clock on the IRS Web site, IRS.gov.
3. Take your time. Don’t forget to leave room for a coffee break when filling out your tax return as rushing can mean making a mistake.
4. Double-check your math and verify all Social Security numbers. These are among the most common errors found on tax returns. Taking care will reduce your chance of hearing from the IRS and speed up your refund.
5. E-filing is easy. E-filing catches math errors and provides confirmation your return has been received and gives you a faster refund.
6. Get the fastest refund. When you e-file file early, you receive your refund faster. When you choose direct deposit, you receive your refund sooner than waiting for a check.
7. Don’t panic. If you have a problem or a question, remember the IRS is there to help. Try the IRS Web site at IRS.gov or call the IRS customer service number at 800-829-1040.

Are you concerned that your efforts to get ready early may be affected by the Alternative Minimum Tax legislation passed by Congress in December? Most individuals will not be impacted, so it is still a good idea to get an early start on your preparations. Even if you are filing one of five forms affected by the recent legislation, the IRS expects to be ready for your return by February 11. You can review a list of the impacted forms and find out the latest news about when the IRS will be ready for your return at IRS.gov.

Last day to register to vote is January 8.

You can register at various places including the county clerk's office, board of elections, city and village offices. You will need two forms of identification with one showing your current residence address. According to the State Board of Elections, you do not have to re-register unless you have moved to a different address or changed your name.

Do your lower income clients need an extra $2,000 to purchase a home?

The Illinois Department of Human Services, the Partnership for HomeOwnership and IHDA offer “Assets Illinois,” whereby potential homebuyers can start a savings account at their bank, depositing what they can afford and matching funds will be given towards their home purchase. Applicants must sign up for the program and agree to have a set amount of funds withdrawn from their savings account each month and deposited with the IDHS. Applicants have up to 18 months to save towards their purchase. To find out more, go to www.dhs.state.il.us/assets. Questions? Contact Kevin Davy, IDHS, 866-441-8540 or Kevin.Davy@illinois.gov.

No more "phantom tax."

REALTORS applaud President Bush for signing the Mortgage Forgiveness Debt Relief Act on Dec. 20, which will ensure that any debt forgiven on disposition of a principal residence will not be taxed. The National Association of REALTORS has been working for the past nine years to repeal the “phantom tax” law that forces individuals to pay income tax when a portion of their mortgage loan is forgiven after a short sale or as part of a foreclosure.

New radon law applies to residential sales of one to four-unit properties

Effective January 1, the Illinois Radon Awareness Act requires the seller of a residential property (of one to four dwelling units) to provide the buyer with two documents before becoming bound on a contract: 1) a "Disclosure of Information on Radon Hazards" and 2) a pamphlet on radon testing guidelines from the Illinois Emergency Management Agency. The aim of the legislation is to boost awareness about radon; nothing in the Act requires a seller to test for radon or to engage in “mitigation activities.”

The median home sale price in November fluctuated in a modest range across Illinois

the Chicago PMSA median home sale price in November was $247,000, up 0.8 percent from $245,000 in November 2006. Statewide, the median sale price was $193,000 for the month, down 3.0 percent. “People have been sitting on the sidelines so there remains a lot of selection on the market and it will continue to be a good market for buyers in 2008 with mortgage interest rates still at historically low levels,” said IAR President Kay Wirth.

Dawn of a new day: 2008 economic outlook

A new year always brings with it the hopeful promise of things to come, especially one following the challenging real estate year that was 2007. NAR expects to close 2007 as the fifth best year on record and that’s good news. In Illinois we’ve been averaging a 70 percent homeownership rate and sheer demand is a factor that bodes well for a stabilizing housing market in 2008. Since the 1980s—when interest rates were as high as 18 percent and financing was very creative—people will always need to buy and sell homes. No one has a crystal ball, but IAR does have a new home price forecasting model developed by leading economists from the University of Illinois Regional Economics Applications Laboratory (REAL) to provide some highly credible insights into the Illinois housing market.

Update on Mortgage Relief Plans

The government's plan to assist those with adjustable rate mortgages due to reset is moving forward. For an update, go here: Bankrate.comThere is a toll-free hotline for information: 888-995-HOPE. This hotline is operated by the Homeownership Preservation Foundation