Tax Breaks for Charity Volunteers –Call Attorney Linda Fessler 213-617-8684
Tax Breaks for Charity Volunteers
If you volunteer your time for a charity, you may qualify for some tax breaks. Although no tax deduction is allowed for the value of services performed for a charity, there are deductions permitted for out-of-pocket costs incurred while performing the services. The normal deduction limits and substantiation rules also apply. The following are some examples:
• Away-from-home travel expenses while performing services for a charity, including out-of-pocket roundtrip travel cost, taxi fares, and other costs of transportation between the airport or station and hotel, plus lodging and meals are allowed at 100%. Unlike other areas of taxes, meals are not subject to the 50% limitation. These expenses are only deductible if there is no significant element of personal pleasure associated with the travel, or if your services for a charity do not involve lobbying activities. Any “significant element of personal pleasure” negates a deduction (i.e., not even partial deduction is allowed). Significant personal pleasure is assumed if the taxpayer has only minor duties and is not required to perform any duties for the charity for major portions of the away-from-home stay.
• The cost of entertaining others on behalf of a charity, such as wining and dining a potential large contributor (but the cost of your own entertainment or meal is not deductible).
• If you use your car while performing services for a charitable organization, you may deduct your actual unreimbursed expenses directly attributable to the services, such as gas and oil costs, or you may deduct a flat 14 cents per mile for the charitable use of your car. You may also deduct parking fees and tolls.
• You can deduct the cost of the uniform you wear when doing volunteer work for the charity, as long as the uniform has no general utility. The cost of cleaning the uniform can also be deducted.
No charitable deduction is allowed for a contribution of $250 or more unless the contribution is substantiated with a written acknowledgment from the charitable organization. To verify your contribution:
• Get written documentation from the charity about the nature of your volunteering activity and the need for related expenses to be paid. For example, if you travel out-of-town as a volunteer, request a letter from the charity explaining why you’re needed at the out-of-town location.
• Submit a statement of expenses if you are out-of-pocket for substantial amounts and, preferably, a copy of the receipts to the charity. Also arrange for the charity to acknowledge in writing the amount of the contribution.
• Maintain detailed records of your out-of-pocket expenses – includes receipts plus a written record of the time, place, amount and charitable purpose of the expense.
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Circular 230 Disclosure, United States Treasury regulations effective June 21, 2005 require us to notify you that to the extent of this communication, or any of its attachments, contains or constitutes advice regarding any U.S. Federal tax issue, such advice is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that can be imposed by the Internal Revenue Service.
© Copyright 2008-2013
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Checking the Status of Your Federal Tax Refund –
Checking the Status of Your Federal Tax Refund
If you already filed your federal tax return and are due a refund, you can check the status of your refund online.
Where’s My Refund? is an interactive tool on the IRS web site at IRS.gov. Whether you split your refund among several accounts, opted for direct deposit into one account, or asked the IRS to mail you a check, Where’s My Refund? will give you online access to your refund information nearly 24 hours a day, 7 days a week.
If you e-file, you can get refund information 72 hours after the IRS acknowledges receipt of your return. If you file a paper return, refund information will be available within three to four weeks. When checking the status of your refund, have your federal tax return handy. To access your personalized refund information, you must enter:
• Your Social Security Number (or Individual Taxpayer Identification Number);
• Your Filing Status (Single, Married Filing Joint Return, Married Filing Separate Return, Head of Household, or Qualifying Widow(er)); and
• The exact refund amount shown on your tax return.
Once your personal information has been entered, one of several responses may come up, including the following:
• Acknowledgement that your return was received and is in processing.
• The mailing date or direct deposit date of your refund.
• Notice that the IRS could not deliver your refund due to an incorrect address. You can update your address online using the Where’s My Refund? feature.
Where’s My Refund? also includes links to customized information based on your specific situation. The links guide you through the steps to resolve any issues affecting your refund. For example, if you do not get the refund within 28 days from the original IRS mailing date shown on Where’s My Refund?, you can start a refund trace online.
Where’s My Refund? is also accessible to visually impaired taxpayers who use the Job Access with Speech screen reader used with a Braille display and is compatible with different JAWS modes.
If you do not have internet access, you can check the status of your refund by calling the IRS TeleTax System at 800-829-4477 or the IRS Refund Hotline at 800-829-1954. When calling, you must provide your Social Security Number (or your spouse’s), your filing status and the exact refund amount shown on your return.
Refunds are sent out weekly on Fridays. If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back.
If you have any questions, call Attorney Linda Fessler at 213-617-8684.
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Circular 230 Disclosure, United States Treasury regulations effective June 21, 2005 require us to notify you that to the extent of this communication, or any of its attachments, contains or constitutes advice regarding any U.S. Federal tax issue, such advice is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that can be imposed by the Internal Revenue Service.
© Copyright 2008-2013
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3 More Judgements Against Countrywide—-Call Linda Fessler 213-617-8684
Well the judgements keep rolling in against Countrywide and Bank of America. Some private cases, some brought by state attorneys general, some brought by the Justice Department. It is pretty safe to assume that if you ever had a mortgage with Countrywide, your situation is the subject of one of these lawsuits. Even if you have already lost your home to foreclosure you may be entitled to damages or you may be able to get the foreclosure reversed and your home returned to you. Give me a call at 213-617-8684, tell me your story, and I will tell you which cases may apply to you. No charge. And that is not to say the other mortgage companies do not have lawsuits or judgements against them: Wells Fargo, Chase, Aurora—–just to name a few. So if your home is worth less than you owe (under water), pay an interest rate above 4%, are in foreclosure or have already lost your home, give me a call 213-617-8684.
Read More2 WEBSITES THAT MAY HELP IN THE NEW YEAR
2 WEBSITES THAT MAY HELP IN THE NEW YEAR
I hope you had a great holiday season, but now we must come back to the real world. I wanted to pass along two websites that I thought might be helpful to my clients or their friends.
CREDIT KARMA—–(creditkarma.com) All their services are free. No hidden charges. You can get your credit score updated as many times as you want free of charge. They give advice on what to do and what not to do to improve your score.
ANNUAL CREDIT REPORT—-(annualcreditreport.com) This is the only place where you can get a free credit report from each of the three credit bureaus. Under law, you are entitled to the free reports once a year. You can even contest certain entries online using this site. This site does not provide you with your credit score, but remember creditkarma.com will give you your credit score.
Hope this is of some help to you in the new year. If you have any questions, call Linda Fessler at 213-617-8684.
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1 Way To See If You Qualify For A Modification Or Refinance
Do you want to know whether you qualify for a Home Affordable Loan Modification or Refinance? Mortgage Relief Online is a solution designed to help consumers determine if they may be eligible for mortgage relief under the Making Home Affordable program. It’s completely free and brought to you by myFICO, Money Management International and the Homeownership Preservation Foundation.
myFICO is the consumer division of FICO. myFICO is a trusted source of consumer credit education and products to help consumers get their credit scores.
The Homeownership Preservation Foundation is a 501(c)(3) nonprofit which creates partnerships with local governments, nonprofit organizations, borrowers and lenders to help families overcome obstacles that could result in the loss of their homes.
Money Management International Money Management International (MMI) and its family of Consumer Credit Counseling Service (CCCS) agencies make up the largest nonprofit, full-service credit counseling agency in the United States.
So What’s Different About Mortgage Relief Online?
If you qualify, they will actually submit your information to your lender for you.
How it Works
Mortgage Relief Online helps US homeowners determine if they are eligible for a loan modification or a refinancing option under the MHA guidelines.
Go to mortgagereliefonline.com
1. Click the “Start Now” button and complete a short online form about your current housing and mortgage situation.
2. Based on the information you enter, they will present you with one of the following options:
a. Eligible for a loan modification and credit counseling Homeowners who appear to meet the guidelines for a loan modification under the program will be provided with step-by-step instructions for gathering the information they will need to request a loan modification and be asked to provide contact information.
b. Eligible for refinancing Homeowners who appear to meet the guidelines for a refinancing option under the program will be provided with information they will need prior to contacting their mortgage servicer and requesting to refinance.
c. Eligible for credit counseling Homeowners eligible for credit counseling will be asked for contact information. A certified professional counselor will contact you to discuss possible debt and budget solutions based on your specific circumstances. If you are eligible for credit counseling, you will also participate in steps 3 & 4 shown below. If you meet the requirements for a loan modification, you’ll also participate in steps 3, 4 & 5.
3. Your information will be securely transmitted to Money Management International – the largest nonprofit consumer credit counseling agency in the US who employs certified professional counselors.
4. A certified professional counselor from Money Management International will contact you and assist you through the loan modification process. There is no charge for these services.
5. Money Management International will submit your mortgage relief information to your servicer. Your servicer will then work with you to determine the best next step.
If you have any questions, please feel free to call Linda Fessler, Attorney, at 213-617-8684.
Read More1 REALITY CHECK REGARDING YOUR HOME
1 REALITY CHECK REGARDING YOUR HOME
The background
It seems all the focus in the press and on the Internet these days is about homes in foreclosure and what you can do to exit foreclosure. But what if you’re not in foreclosure yet? What if you haven’t missed any payments? What if you’re struggling every month to put food on the table and pay all the bills but so far you’ve been able to do so?
How do I deal with my mortgage company when I’m not behind yet?
The answer to this has changed over the past 18 months or so. It used to be that mortgage companies wouldn’t even talk to you unless you were behind. The commonly accepted train of thought behind this was simple:
If you can still pay your mortgage payment every month, you must be OK financially. If you weren’t OK, you wouldn’t be able to pay your house payment every month.
These lenders have learned that by dealing with proactive homeowners that contact them, they can save everyone a lot of time, energy, and frustration by simply working together. More importantly, though, lenders have learned they can save themselves a lot of money by being proactive rather than waiting until homeowners are several months behind.
What does this mean for you?
As with all mortgage workouts, your options are completely dependent upon your lender or servicer and the loan you have. There are no guarantees and there is no one-size-fits-all solution.
The best thing you can do is contact your lender and ask them what programs exist to help homeowners in your situation.
What can you do now?
- Call your servicer and explain your situation
- If the person you talk to is unresponsive, ask for a supervisor or the loss mitigation or foreclosure prevention department
- Ask what programs are available to help homeowners in your situation
- Ask them how to obtain a hardship package and then fill it out completly including the hardship letter and return it to them quickly
- Follow up
In the final analysis, it is your home and it will be your effort that saves it. No one will be as proactive or care as much as you do. Your lender doesn’t have to deal with you until you are past due on payments. Luckily, though, many are beginning to realize it’s in their best interest to do so.
If your servicer or lender will not deal with you until you’re past due, write your state’s attorney general and your Senators and/or Congressperson and explain your situation.
Hardship Letter
When you turn in your hardship package to get the ball rolling with your servicer or lender, you will have to write a hardhship letter to explain your situation. While the rest of the package describes your financial situation, the hardship letter is your opportunity to tell your side of the story.
Any Questions?
Call Linda Fessler at 213-617-8684 for a free consultation.
Read More5 Secrets to Getting Your Home Back After the Foreclosure Sale
5 Secrets to Getting Your Home Back After the Foreclosure Sale
Buy it Back
Your first option is to buy your house back from whoever bought it at auction. This is more likely to happen if it was your lender that bought the home back, but is possible even if it was someone else. You’will probably need 3rd party financing (which may be difficult or impossible to get). Sometimes, your lender will refinance your purchase, so you should at least ask the question if you have the income to support the payments.
Right of Redemption
Some states also have a “statutory right of redemption” after a foreclosure sale. This is a period where you (as the previous homeowner) can repurchase the home by paying the total purchase price plus interest and any allowable costs to the person that bought your home at the sale. Filing a bankruptcy can give you even more time to take advantage of your redemptions rights, but this varies from state to state. Talk to a bankruptcy attorney if you have questions.
Military Service Has It’s Perks
Active duty military personnel have additional, specific rights regarding redemption periods and other foreclosure and credit-related issues. You should research the Soldiers and Sailors Civil Relief Act if you are or were in the military or called to active duty.
Legal Avenues
Under certain circumstances, a court can set aside the sale of your home. If your lender did not follow the correct procedures during the foreclosure process, including properly notifying you, you may be able to get the court to set the sale aside, which will make it so the sale never legally happened. If you think this is the case, discuss your situation with a lawyer experienced in these matters.
Don’t Leave Your Equity Behind
Finally, if there was equity in your home after it was sold, you may be legally entitled to it. You should expect your lender to deduct appropriate fees for servicing your account and processing the closing of your loan, but go over every fee very carefully to make sure they make sense. Some lenders have been known to tack on fees simply to eat up all the equity so they don’t have to pay you what you are owed. If you are in this situation, contact a local lawyer familiar with foreclosure law.
ONE WAY TO GET YOUR SHORT SALE APPROVED
ONE WAY TO GET YOUR SHORT SALE APPROVED
Using a “Short Sale Expert” Doesn’t Help
A third party doesn’t usually help homeowners get short sale approved faster.
Most lenders feel that there is little success in dealing with 3rd party short sale companies. Most successful short sales have come by working closely with the sellers and their real estate agents. There may be some 3rd party models that add value, but usually it is found that they add an extra layer of confusion to the transaction. SO DON’T PAY A COMPANY TO WORK ON YOUR SHORT SALE.
Why Short Sales So Often Fail
Short sale transactions often fail because of unrealistic expectations. To address this, buyers need to be better educated on short sales and prepared for the non-traditional buying process. Sellers need to realize that the best way to complete the transaction is to partner with their lender or servicer. Too many times the seller’s agent is trying to hold the deal together on his or her own, while the actual seller removes himself from the process. This will likely cause the sale to fall apart.
So if you’re in the middle of a short sale or considering one, stay engaged through the whole process. What often works is to have a real estate agent handle dealing with the other agents, showing the house, countering offers, and everything else dealing with the actual real estate deal. Then you deal with the lender in making sure to turn in all the paperwork and calling for follow- ups and keeping pressure on the lender.
The real estate agent can deal with the lender to fax in the HUD-1s or other transaction-related paperwork and to ask specific, transaction-related questions.
Dealing With Second Mortgages
What seems to confuse agents and borrowers is when a lender or servicer holds more than one lien against the subject property, yet cannot approve the short sale simultaneously. In many cases, an institution may quickly approve the short sale for the senior lien, but move much more slowly on the approval for the junior lien. The two loans have to be handled separately. The lenders deal with the first mortgage first and then, once the decision is made on that, will deal with the second mortgage.
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1 Reason why Principal Writedowns are not coming to Fannie and Freddie this year
1 Reason why Principal Writedowns are not coming to Fannie and Freddie this year
Eleven state Attorneys General Write FHFA
The attorneys general from eleven states wrote a letter to the Acting Director of the FHFA to urge him to allow Freddie Mac and Fannie Mae to incorporate principal writedowns into their foreclosure-avoidance models. Congress has also been pressuring the FHFA to allow them.
And Edward DeMarco, the Acting Director, has agreed; with the stipulation that Congress must first change the laws the govern FHFA, which is unlikely to happen especially in an election year.
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According to a recent report from the Office of the Comptroller of the Currency, loan modifications by Fannie and Freddie have performed far better than those on privately held mortgages. Since the taxpayers took over the companies, re-default rates have been consistently lower at Fannie and Freddie than among privately held mortgages, the report shows.
In addition, Freddie and Fannie are already the nation’s leaders in modifying loans for homeowners and making them more affordable. Their efforts have kept more people in their homes than any other servicer and they’ve done it by offering principal forbearances rather than writedowns.
Here’s how a principal forebearance works.
Say you owe $300,000 on your loan right now. Based on your current income and HAMP qualification, the bank would figure how much of a home loan you can afford to pay. For our example, let’s say you can afford a $200,000 mortgage.
Freddie or Fannie would modify your loan so your payment would be based on the $200,00 and then set aside the remaining $100,000 at zero percent interest for a set numbers of years. In certain cases, if you’re underwater on your mortgage, FHFA will set aside most of what you’re underwater on at zero percent interest as well.
Read More1 Thing that can Happen to your Credit Score with a Mortgage Loan Mod??
1 Thing that can Happen to your Credit Score with a Mortgage Loan Mod?
Someone Finally Did a Credit Score Study!
Everyone’s heard of Fair Isaac’s, of course…they’re the folks behind the wonderful FICO credit scores we all hear so much about. But did you know there’s a new system coming out that’s going to replace FICO? It’s called a VantageScore and is now being used by more and more lenders every day.
The three credit bureaus (Equifax, TransUnion, and Experian) have formed a partnership to develop the VantageScore and think that it better represents an accurate representation of your likeliness to repay a debt better than FICO scores do. But we’re not here to talk about the VantageScore.
This partnership just finished up a study of over 400,000 credit files to see what the impacts of different foreclosure workouts are.
How Much Does a Loan Modification Hurt My Credit?
The study found that if you had excellent credit before the modification, the negative impact to your score would be minimal…typically about a 30 to 40 point drop. even if you had to defer your mortgage payments for 3 months!
And if your lender writes down your mortgage balance and chooses not to report the writedown as a chargeoff, you could actually see an increase in your score! About 10 to 30 points. It’s because you have less total debt and your debt to income ratio won’t be as high.
Even if your lender recapitalizes your past due payments into the loan, you could see a minor increase in score too…according to the study.
Credit Score Impacts for Short Sales, Foreclosure, and Bankruptcies
Short sale – typically about a 130 point drop.
Again, all of these assume you’re starting from excellent credit.
Foreclosure – about 140 point drop.
Bankruptcy – approximately 365 point drop!
Obviously, you should avoid bankruptcy if at all possible. The reason for the huge difference is because short sales, foreclosure, and modifications only affect one or two accounts. A bankruptcy, on the other hand, affects all of your credit accounts.
A great number of websites offer “free” credit reports that are not free.
However, if you go to annualcreditreport.com you can receive a credit report from each of the three credit agencies, once per year.
Completely free of charge.
If you have any questions, please call Attorney Linda Fessler at 213-617-8684.
