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Archive for July, 2009

July 30, 2009 Tax Abatement

Tax abatement is a reduction of taxes or an exemption from taxes granted by a local government on a piece of property for a specified length of time. Those who own property in Economic Revitalization Areas (ERAs) are eligible for tax abatements. To qualify, owners must make improvements to their property or purchase and put [...]

July 28, 2009 Modifications to the Home Affordable Refinance Program

Earlier this month, the Federal Housing Finance Agency announced an amendment to its Home Affordable Refinance Program, expanding refinance eligibility to help those homeowners who are at risk of being “underwater.” The Obama Administration’s Home Affordable Refinance Program loan-to-value requirement has been raised to 125%. Previously, the program, announced in February, only applied to borrowers [...]

July 23, 2009 C Corporation to S Corporation Conversion

One of the big questions you have to answer for yourself when considering incorporating your business is whether to classify yourself as a C corporation or an S corporation, also called a subchapter S corporation. This decision will have a big impact on the way your business is taxed. The main difference between the two [...]

July 22, 2009 Private Mortgage Insurance

Private mortgage insurance (PMI) is generally a requirement when a property is purchased with a down payment that is less than 20% of the value of the home or property. This insurance, provided by private mortgage insurance companies, protects lenders against the costs of foreclosure. It allows lenders to accept lower down payments than they [...]

July 17, 2009 New HVCC Appraisal Rules Blamed for “Destroying the Housing Market”

A recent AP article contends that there is strong backlash against the new Home Valuation Code of Conduct (HVCC) rules that were enacted on May 1, 2009. “The new guidelines bar mortgage brokers from ordering appraisals themselves, forcing them to do so through a mortgage lender. Lenders may order appraisals through in-house staff or appraisers [...]

July 14, 2009 Cost Segregation

If you are planning on buying or improving a building for your business, your CPA may recommend a cost segregation, which is an asset depreciation technique. This technique separates real estate into personal property, land improvements, buildings, and land, and then depreciates personal property and land improvements at an accelerated rate. This would reduce the [...]

July 9, 2009 Business Valuations and Estate Planning

Estate planning is possibly the most neglected, but arguably the most important aspect of family-owned businesses. Estate planning sets up the transfer of an individual’s property to designated beneficiaries to minimize or possibly eliminate the taxes levied by the U.S. Unified Gift and Estate Tax Program. Without estate planning, the tax liability of the business [...]

July 7, 2009 Certified Machinery and Equipment Appraisal

We have written a number of blog posts about machinery and equipment appraisals, including Common Types of Appraisal Reports, What’s It Worth?, and Insurable Value. In this post we will cover what should be included in a certified machinery and equipment appraisal (CMEA) report. A certified machinery and equipment appraisal is a comprehensive and detailed [...]

July 2, 2009 FHA Loans

In March, we wrote a post that, in part, discussed what distinguishes an appraisal for a Federal Housing Administration (FHA)-insured loan from an appraisal for a conventional loan and explained that the appraisers at Present Value are certified to conduct appraisals for both types of loans. Click here to read the full post. This week, [...]