“Eminent domain” is the power of the federal, state, or local governments (and, in some limited circumstances, private parties, such as utilities and railroads) to take, or to authorize the taking of, private property for a public use without the owner’s consent and upon payment of just compensation.
That right to compensation is rooted in the federal and state Constitutions.
Real Estate
Deducting The Business Use Of Your Home
The federal income tax deduction for the business use of a home has a good dollars and cents upside for those who qualify. Some detailed questions have to be answered correctly to get to that point, however. Not surprisingly, the IRS publication on the subject makes use of a complex flowchart filled with “yes or no” questions to guide taxpayers to a determination of their eligibility for the deduction.
Qualifying for the Deduction
To pass the threshold for use of the home business deduction, a taxpayer must satisfy the following two basic sets of requirements: The first set concerns the nature of the business activities, while the second set relates more to the place itself.
What Is A REIT?
If investing in real estate appeals to you but you are not so well heeled that you can go shopping for investment properties like they were appliances, you may want to give some thought to investing in one or more real estate investment trusts (REIT). As you would with shares of common stocks, you can buy and sell different REITs, and having REITS in your portfolio of investments could be a good way to add some diversification. Another attraction for REITs is that you can invest in them with relatively small amounts of money, as compared with the sums required to buy the real estate itself.
Weather The Storm
Superstorm Sandy and, before that, Hurricane Katrina were just two of many dramatic reminders that millions of us are vulnerable to destructive storms that cause injuries, deaths, and property damage on a scale that is often hard to comprehend. But even a comparatively minor storm that doesn’t dominate the headlines can wreak havoc with those unfortunate enough to be in its path. Here are some tips for preparing yourself and your family for dealing with a damaging storm and its aftermath.
Stock Up
The moment when you are in the crosshairs of an approaching storm is no time to be scurrying around town for necessities. While skies are still clear, here are some things you should do:
Home Owner’s Association Can Regulate Common Area
Kirk owned a home in a residential community that was overseen by a homeowners association. His property abutted one of a handful of lakes in the community. Legally, the lakes were regarded as common areas controlled by the association. When Kirk bought his home many years ago, the only recorded document imposing restrictions on his use of the property was a two page document with general restrictions for all homeowners in the community. The only mention of the lakes was an irrelevant limit on how far a boat pier could extend into a lake.
The association amended its rules to prohibit the use of pontoon boats having more than two pontoons on the lake next to Kirk’s property. As it happened, Kirk had planned to use just such a vessel, called a “tritoon boat,” on that lake. When the association expressed its determination to enforce its regulation, litigation ensued.
Underwater Homeowners Get A Life Raft
The travails of the housing market in recent years are well documented. The prevalent symbols of this downturn are the “underwater” homeowners, who owe more on their mortgages than their homes are worth. About 4.6 million such homeowners have mortgages backed by Fannie Mae or Freddie Mac, and fully 80% of those owners haven’t missed any mortgage payments.
Homebuyer Wins Tax Credit
The federal income tax code provides for a refundable tax credit to a first-time homebuyer of a “principal residence.” In 2008, the year that Joseph took the
plunge and bought his first home, the credit was 10% of the purchase price, up to $7,500. When he claimed the maximum credit on his 2008 tax return, the IRS
came calling to challenge his eligibility for the credit.
Borrowers, Lenders, And Processing Payments
The Real Estate Settlement Procedures Act (RESPA) is a federal consumer protection law that regulates the real estate settlement process, including the servicing of loans and the assignment of those loans. RESPA places a number of duties on lenders and loan servicers, including requirements that borrowers be given notice by both a transferor and a transferee when their loan is transferred to a new lender or servicer, and that loan servicers respond promptly to borrowers’ written requests for information.
Real Estate Roundup
Home Appraisal Fraud
Joseph and Kimberli bought an unimproved lot in a subdivision and then engaged an architect and a contractor to design and build the home of their dreams on it. The lot and finished home together would cost them about $731,000. They borrowed most of the sales price from a bank, which sought and obtained an appraisal from an appraiser regularly used by the bank. Conveniently enough, the appraisal came in at about $731,000 when conducted under both a cost approach and a sales comparison approach.
Real Estate Roundup
Joseph and Kimberli bought an unimproved lot in a subdivision and then engaged an architect and a contractor to design and build the home of their dreams on it. The lot and finished home together would cost them about $731,000. They borrowed most of the sales price from a bank, which sought and obtained an appraisal from an appraiser regularly used by the bank. Conveniently enough, the appraisal came in at about $731,000 when conducted under both a cost approach and a sales comparison approach.