Consider an appeal if your property taxes seem too high

Home prices in many parts of the country have not fully recovered, yet many homeowners are still paying property taxes that reflect appraisals performed at the peak of the housing market. According to the Congressional Budget Office, property tax adjustments tend to lag behind changes in home prices by an average of three years. Accordingly, many homeowners — some watchdog organizations estimate over 50 percent — are paying too much property tax.

To determine whether your tax bill is a good candidate for appeal, consider the four components that local agencies use to calculate property taxes:

• Appraised value. The appraisal may be based on comparable sales, in-home visits, community-wide reassessments, computer models, even aerial photographs.

• Assessment ratio. In some states, taxes are based on a percentage of appraised value. Other locales set taxes at 100 percent of current market prices.

• Assessed value. Multiply appraised value times the assessment ratio to arrive at assessed value.

• Tax rate. Set by local governments to cover various costs, including road maintenance and school expenses, this rate varies among regions. Typically, it's figured for every $100 of assessed value. So if your assessed value is $150,000 and the tax rate is .025, you'll be charged $3,750 in annual property taxes.

Of these four components, it's wise to focus on the one that's the most subjective and controllable: the property's appraised value. Railing against exorbitant tax rates, while possibly therapeutic, probably won't yield favorable results at city hall.

To get started, find out your local taxing authority's process for filing appeals. Next, obtain a copy of the assessor's property record card, which summarizes the characteristics of your home. Compare data on the card to the physical attributes of your house. Is the square footage accurate? Does the assessor claim you have three bathrooms instead of two? Is your basement listed as "finished" when, in fact, it's a barely accessible crawl space?

Stroll through your neighborhood, taking photos and jotting down addresses of homes that have sold recently. When you get home, check the county's online tax assessment listings. If owners of larger and more amenity-laden houses are paying lower property taxes than you are, take note.

Finally, lay out your evidence to local decision makers, presenting all documents in an organized manner. Be courteous, but firm. If you don't win the appeal (and cost-benefit considerations warrant further action), consider hiring a tax attorney or property tax consultant.

aconner@atconnercpa.com

Is College Debt the Next Bubble?

Legacy Investment Advisors, LLC
Albert Sturdivant
Financial Advisor Wealth Management
3000 Atrium Way
Suite 520A
Mount Laurel, NJ 08054
Voice:(856) 751-7909
Fax: (856) 751-1141
legacy@legacyria.com
www.legacyria.com

What might a 23-year-old recent college graduate, a 45-year-old entrepreneur, and a 60-year-old pre-retiree have in common financially? They may all be hobbled by student loan debt. According to financial aid expert Mark Kantrowitz, the student loan "debt clock" reached the $1 trillion milestone last year.¹ And even as Americans have reduced their credit card debt over the past few years, student loan debt has continued to climb--both for students and for parents borrowing on their behalf.

A perfect storm

The last few years have stirred up the perfect storm for student loan debt: soaring college costs, stagnating incomes, declining home values, rising unemployment (particularly for young adults), and increasing exhortations about the importance of a college degree--all of which have led to an increase in borrowing to pay for college. According to the Federal Reserve Bank of New York, as of 2011, there were approximately 37 million student loan borrowers with outstanding loans.² And from 2004 through 2012, the number of student loan borrowers increased by 70%.³

With total costs at four-year private colleges pushing $250,000, the maximum borrowing limit for dependent undergraduate students of $31,000 for federal Stafford Loans (the most popular type of federal student loan) hardly makes a dent, leading many families to turn to additional borrowing, most commonly: (1) private student loans, which parents typically must cosign, leaving them on the hook later if their child can't repay; and/or (2) federal PLUS Loans, where parents with good credit histories can generally borrow the full remaining cost of their child's undergraduate education from Uncle Sam.

The ripple effect

The implications of student loan debt are ominous--both for students and the economy as a whole. Students who borrow too much are often forced to delay life events that traditionally have marked the transition into adulthood, such as living on their own, getting married, and having children. According to the U.S. Census Bureau, there has been a marked increase in the number of young adults between the ages of 25 and 34 living at home with their parents--19% of men and 10% of women in 2011 (up from 14% and 8%, respectively, in 2005).⁴ This demographic group often finds themselves trapped: with a greater percentage of their salary going to student loan payments, many young adults are unable to amass a down payment for a home or even qualify for a mortgage.

And it's not just young people who are having problems managing their student loan debt. Borrowers who extended their student loan payments beyond the traditional 10-year repayment period, postponed their loans through repeated deferments, or took out more loans to attend graduate school may discover that their student loans are now competing with the need to save for their own children's college education. And parents who cosigned private student loans and/or took out federal PLUS Loans to help pay for their children's education may find themselves saddled with education debt just as they reach their retirement years.

There's evidence that major cracks are starting to appear. According to the Federal Reserve Bank of New York, as of 2012, 17% of the 37 million student loan borrowers with outstanding balances had loans at least 90 days past due--the official definition of "delinquent."⁵ Unfortunately, student loan debt is the only type of consumer debt that generally can't be discharged in bankruptcy, and in a classic catch-22, defaulting on a student loan can ruin a borrower's credit--and chances of landing a job.

Tools to help

The federal government has made a big push in recent years to help families research college costs and borrowers repay student loans. For example, net price calculators, which give students an estimate of how much grant aid they'll likely be eligible for based on their individual financial and academic profiles, are now required on all college websites. The government also expanded its income-based repayment (IBR) program last year for federal student loans (called Pay As You Earn)--monthly payments are now limited to 10% of a borrower's discretionary income, and all debt is generally forgiven after 20 years of on-time payments. (Private student loans don't have an equivalent repayment option.)

Families are taking a much more active role, too. Increasingly, they are researching majors, job prospects, and salary ranges, as well as comparing out-of-pocket costs and job placement results at different schools to determine a college's return on investment (ROI). For example, parents might find that, with similar majors and job placement success but widely disparate costs, State U has a better ROI than Private U. At the end of the day, it's up to parents to make sure that their children--and they--don't borrow too much for college. Otherwise, they may find themselves living under a big, black cloud.

DISCOUNT LUXURY RENTALS IN ORLANDO FL AND MARTHA'S VINEYARD

Call Kendall at (267) 291-4437.  Cost is $275 per night.  Available slots filling up fast.

The Villas at ChampionsGate are nestled within the heart of Central Florida.  Surrounded by 36 holes of championship Orlando golf, the Leadbetter Golf Academy World Headquarters and 15 acres of recreation, this four-diamond resort is one of the nation's premier golf, meeting and leisure retreats. 

This luxury Resort is situated adjacent to the stunning four-diamond Omni Orlando Resort at ChampionsGate  One of our partners has extended an offer to allow our friends enjoy these accommodations at a discounted rate.  We have two (2) 2-bedroom Villas available to rent.  Each Villa sleeps up to 6 people. Whether it's a ladies spa retreat, a golf get-away for the men or a family vacation to enjoy the Disney Theme Parks, this is the place to stay!

Guests will enjoy all the resorts amenities and facilities, including access to the 10,000 square foot European-style spa and fitness facility, two Greg Norman-designed championship golf courses,  formal pool with private cabanas, heated family pool with waterslide and an 850-foot lazy river, Champions 9, par-3 golf experience, seven restaurants, eateries and lounges, and 24-hour room service. 

DATES AVAILABLE FOR 2013:

THE MONTHS OF SEPTEMBER, OCTOBER AND NOVEMBER.  

DECEMBER 1 - 26TH

Call Kendall at (267) 291-4437.  Cost is $275 per night.  Available slots filling up fast.  

Accommodations and Services

• 730 guestrooms and suites
• Concierge services
• Complimentary high-speed internet access at an executive work desk with modem outlet
• Two phones, one of which is cordless with voicemail
• Safe—designed to hold laptop computers
• Fully-stocked refreshment center
• Pets under 25 pounds permitted
• Dry cleaning/laundry service
• In-room coffee
• Nine foot high ceilings
• Robes
• CD player
• Hair dryer
• Lighted make-up mirror
• Iron and ironing board
• Omni Kids Program
• On-Demand movies and Nintendo 64 video games

Restaurants

• Zen—upscale Pan-Asian Cuisine
• Croc’s Pool Bar and Grill
• David’s Club—sports bar & grille overlooking the recreation area
• Trevi’s—three-meal Mediterranean restaurant with indoor and outdoor seating
• Broadway Deli—gourmet deli offering a wide variety of snacks and refreshments
• The Lobby Bar—specialty cocktails, fine wines and tropical drinks
• ChampionsGate® Clubhouse Bar & Grill
• 24-hour room service

Recreation Facilities

• Full-service health club with 24 hour access
• Professionally staffed 10,000 square-foot European Spa and full service beauty salon
• Formal outdoor heated swimming pool with eight private cabanas and a family activity pool with waterslides (open year round)
• 850-foot lazy river winds through tunnels, gentle rapids and hidden canyons
• Video game arcade
• The Champions 9, a lighted 9-hole, par-3 golf course
• 36 holes of Championship golf on two distinctive courses, both designed by Greg Norman
• World headquarters of the David Leadbetter Golf Academy
• Billiards, foosball and dartboards available at David’s Club
• Two lighted tennis courts open seven days (racquets and balls available at towel hut)
• Sand volleyball court, basketball court
• Jogging, hiking and biking paths located within the ChampionsGate resort
• Get Fit Kit available at the front desk

 FLORIDA ATTRACTIONS:

Choose from a selection of ticket options for 3 and 4 days, including special prices for Florida Residents.  

Arts & Culture
Orlando Museum of Art – 27 miles
Morse Museum or American Art , Winter Park – 31 miles E 
Harry P. Leu Gardens – 26 miles E

Attractions
Walt Disney World® Resort – 6 miles
AMC® Theatres Complex - Downtown Disney® Pleasure Island – 13 miles
Legoland Florida – 26 miles S
Sea World Orlando – 14 miles
Gatorland theme park and wildlife preserve – 15.5 miles
Universal Studios Florida – 16 miles
Wet’ n Wild water park – 18 miles
Downtown Orlando – 22 miles
Sterling Casino – 60 miles
Busch Gardens – 58 miles
Kennedy Space Center Visitor Complex – 70 miles

Shopping
Celebration Town Center – 8 miles
Orlando Premium Outlets – 12 miles
Downtown Disney® Area – 10 miles
Pointe Orlando, shopping, dining and entertainment – 18 miles
Belz Factory Outlet Mall – 20 miles
Florida Mall – 24 miles
The Mall at Millenia, filled with a variety of boutiques and restaurants – 24 miles
__________________________________________________________________

MARTHA'S VINEYARD - OAK BUFFS

2400 sq. ft. 3 bedroom house with sun porch and amenities.  

Available for weekly rental 
September - October, 2013
May - June 2014


ABOUT OAK BUFFS

MORE ABOUT OAK BUFFS

Things To Do in Oak Buffs

Pictures coming soon!

.  

How to fix errors on your credit report,

Legacy Investment Advisors, LLC

Albert Sturdivant
Financial Advisor Wealth Management
3000 Atrium Way
Suite 520A
Mount Laurel, NJ 08054
Voice:(856) 751-7909
Fax: (856) 751-1141
legacy@legacyria.com
www.legacyria.com

I recently came across an error on my credit report. Is there any way I can fix it?

 Good credit is an important part of your overall financial well-being. It can impact everything from the interest rates you'll pay to being a prerequisite for employment. As a result, you'll want to try to fix any errors on your credit report and have them removed as soon as possible.

 Your first step should be to contact the credit reporting agency in writing to indicate that you are disputing the information contained on your credit report. The credit reporting agency usually has 30 days to complete an investigation of the disputed information. Once the credit reporting agency investigation is complete, they must provide you with written results of their investigation.

If, during its investigation, the credit reporting agency confirms that your credit report does contain errors, the information on your report either must be removed or corrected.

 If the investigation does not resolve the issue, you still have a couple of options. First, you can try to mitigate the disputed information by adding a 100-word consumer statement to your credit bureau file. Even though consumer statements are often dismissed or ignored by potential creditors, it can at least provide you with a chance to tell your side of the story. You can also try to resolve the issue with the creditor that submitted the inaccurate information in the first place. The creditor will be obligated to investigate the disputed issue and notify you of its findings.

 If you believe that the error is the result of identity theft, you may need to take additional steps to try and resolve the issue, such as placing a fraud alert or security freeze on your credit report. You can visit the Federal Trade Commission (FTC) website at www.ftc.gov for more information on the various identity theft protections that might be available to you.

 Finally, due to the amount of paperwork and steps involved, fixing a credit report error can often be a time-consuming and emotionally draining process. If at any time you believe that your credit reporting rights are being violated, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at www.consumerfinance.gov.

Home Office Deduction Rules Get a Remodel

Legacy Investment Advisors, LLC
Albert Sturdivant Financial Advisor Wealth Management
3000 Atrium Way Suite 520A
 Mount Laurel, NJ 08054
Voice:(856) 751-7909 Fax: (856) 751-1141
egacy@legacyria.com
www.legacyria.com

 If you run a business out of your home, it's important to understand the associated federal income tax deductions that you might be entitled to. That's especially true this year, with new rules that make it easier than ever for some to claim a deduction.

 What's a home office?

 A home office is generally a room in your home, a portion of a room in your home, or a separate building next to your home (such as a converted garage or barn) that you use to conduct business activities. In order to deduct associated expenses, though, certain requirements apply.

Basic requirements

 Your home office must be used regularly and exclusively as your principal place of business, or as a place where you meet or deal with clients, patients, or customers, in the normal course of your business. If you have a business outside your home, but conduct substantial administrative and management tasks for your business at home (e.g., billing clients, keeping books and records) you may qualify, provided that you have no other fixed location where you could conduct these activities.

 The portion of your home used for business purposes (i.e., your home office) must be used exclusively for business purposes. You will not qualify for a deduction if the portion of your home is also used for personal purposes. There are two exceptions, however, relating to the storage of inventory and product samples, and the use of part of your home as a day-care facility.

 Separate structures 

 What if your home office is in a separate unattached structure next to your home, like a shed or garage? In this case, the office doesn't have to be your principal place of business, or a place where you regularly meet with clients. However, to qualify for the deduction, you must use that office regularly and exclusively in connection with your trade or business.

Employees can claim deduction 

 If you're an employee and use part of your home for business, you may qualify for the home office deduction. You'd have to meet all other requirements (i.e., your home office must be used regularly and exclusively as your principal place of business), and in addition, your home office must be for the convenience of your employer. You also can't have an arrangement in which you're renting that portion of your home to your employer.

 Regular method of determining allowable deduction 

 Under this method, you determine your actual expenses relating to your home office. Deductible expenses can include both direct expenses and indirect expenses. Direct expenses are costs that apply only to your home office, like the cost of a second telephone line used exclusively for your business.

 Indirect expenses are costs that benefit your entire home. Only the business portion of your indirect expenses is deductible as part of the home office deduction (even if you don't claim a home office deduction, some of these indirect expenses may be deductible as itemized deductions on Schedule A of Form 1040). Some examples of indirect costs include rent, deductible mortgage interest, real estate taxes, and homeowners insurance. The business percentage of your home is determined by dividing the area exclusively used for business by the total area of the home. For example, if your home is 2,000 square feet and your home office is 200 square feet, your business percentage is 10% (200 divided by 2,000). In such a case, if you rent your home, you can deduct 10% of your rent as part of your home office deduction.

New simplified option available 

 Starting in 2013, a new simplified option is available for calculating the home office deduction. Under this method, instead of determining and allocating actual expenses, you calculate the home office deduction by simply multiplying the square footage of the home office by $5. There's a cap of 300 square feet, so the maximum deduction available under this method is $1,500. You can't use this method if you are an employee with a home office and receive advances, allowances, or reimbursements for expenses related to the business use of your home under an expense or reimbursement allowance with your employer. Each year, you can choose whether to use the regular or simplified method of calculating the deduction. If you use the simplified method in one year, and in a later year use the regular method, special rules will apply in calculating your allowable depreciation deduction. Additionally, if you are carrying forward an unused deduction from a prior year (because your business deduction exceeded your business income in a prior year), you will not be able to claim the deduction in any year in which you use the simplified method--you'll have to wait for the next year you use the regular method to claim the unused deduction.

REFER A FRIEND

Legacy Investment Advisors, LLC (“Legacy”) is a registered investment advisor located in Mt. Laurel, New Jersey, in the suburbs of Philadelphia. Legacy and its representatives are in compliance with current registration and/or notice filing requirements imposed upon registered investment advisors by those states in which Legacy maintains clients. Legacy may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Any direct communication by Legacy with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. Legacy does not make any representations or warranties as to the accuracy, completeness, or relevance of any information prepared by an unaffiliated third party provider. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. The information contained herein does not represent a recommendation or offer to buy or sell securities. The value of an investment and the income from it may fall as well as rise and investors may not get back the full amount invested. Past performance is no guarantee of future results.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2013.

Just my thoughts on the School District

This morning I woke up thinking about the fact that Philadelphia boasts 3 black mayors. Each one left a dark spot oh this city. Wilson Goode Sr. still is a force working with the incarcerated masses, but he will always be remembered as the mayor who dropped a bomb in a residential neighborhood. Mayor Street who leaves a legacy of making minority participation on public contracts mandatory, but he will be remembered mostly as the mayor on whose watch “Pay to play” came under investigation, Ron White died and poor Cory Kemp took the downfall.

This present mayor – Michael Nutter – will also leave a legacy. I can’t think of one positive contribution he’s made to the city in the last 7 years. In my opinion, his legacy is the most heinous of all. His legacy hurts the most innocent citizens of this city – and our future. His legacy hurts the children. Before I tear into Nutter, let me say this. In my opinion, all the mayors mentioned walked into a situation that was already into existence. They just became the fall guys. I believe that to be true with Nutter as well. What makes me so angry about him is that he knows it. He knows he’s a puppet and allows himself to be used - Him and Dr. Hite. This issue with the school district ain’t nothing new. I said it before and I’ll say it again…THEY GAVE US A BLUEPRINT OF THEIR PLAN IN 2009 WHEN THEY RELEASED THE FACILITIES MANAGEMENT PLAN. They told us they were planning to close 27 school 4 years ago. Nobody paid attention. They’re using Dr. Hite (and paying him quite handsomely) to act as the fall guy/scape goat to move the plan forward to make public schools in Philadelphia non-existent. I’m heartbroken for the kids. For too many students, school was an outlet for them - A kind of haven for them to go for 7 hours each day to get away from the madness at home. It was a place where they knew they’d at least receive one meal that day. Yes, sadly the schools had become a place where kids could get the social services they so desperately needed. That’s what Dr. Ackerman realized and that’s why she worked so hard to put the mechanisms in place to help save our children. And it worked!!! But once she started tampering with the good ole boy network and gave a contract that normally went to them to one of our own…that was the beginning of her end.

I said all this to say what? I don’t really know. My oldest daughter just received her Master’s in Education this year. What’s she gonna do with that? What are these kids gonna do this school year? It wasn’t bad enough that they were combining schools and lacking in support staff, now they’re talking about just not opening until October? Where’s the money? You can’t tell me there’s no money. I don’t believe it. Oh, that’s right. They’re building more prisons. That’s the new education system for Philadelphia kids.

Mid-Year Reality Check: Covering Your Bases in Uncertain Times

Legacy Investment Advisors, LLC
Albert Sturdivant Financial Advisor Wealth Management
3000 Atrium Way Suite 520A Mount Laurel, NJ 08054
Voice:(856) 751-7909 Fax: (856) 751-1141
legacy@legacyria.com
www.legacyria.com

Imagine playing a complicated game, but the rules of the game are changing, and the new rules have yet to be announced. That's what income tax planning is like this year. In fact, if there was ever a year to spend some quality time with your financial professional, this is it. Here are a few items to discuss. How will higher rates next year affect you? Federal income tax rates are scheduled to jump in 2013, with the bottom (10%) rate disappearing, and the top rate increasing from 35% to 39.6%. Starting in 2013, high wage earners--those with wages exceeding $200,000 ($250,000 for married couples filing jointly and $125,000 for married individuals filing separately)--will also have to pay an additional 0.9% in the hospital insurance (HI) portion of their payroll tax, commonly referred to as the Medicare portion.

Could the current federal income tax rates be extended again? Of course, but it's far from a certain bet, and the odds are that any action would not take place until after the presidential election. That means any financial plan you put in place has to account for this uncertainty. And the uncertainty extends beyond just tax rates, because a number of popular tax breaks are also scheduled to expire at the end of the year, while others have already expired. So, any potential moves have to be considered in the context of several "what if" scenarios. For example, if you have the opportunity to defer compensation to next year, you have to really think about whether that makes sense, or if you would be better off paying tax on the income at this year's rates. Potential investment moves.

In addition to increased tax rates on earnings, the rates that apply to long-term capital gain and qualifying dividends are scheduled to increase in 2013. The maximum rate on long-term capital gain will jump from 15% to 20%. And while qualifying dividends currently benefit from being taxed at the rates that apply to long-term capital gain, in 2013 they'll be taxed at ordinary income tax rates. Also beginning in 2013, a new 3.8% Medicare contribution tax will be imposed on the net investment income of individuals with modified adjusted gross income that exceeds $200,000 ($250,000 for married couples filing jointly and $125,000 for married individuals filing separately). That means someone in the top tax bracket could potentially end up paying tax on some investment income at a total rate of 43.4%. Potentially higher rates in 2013 could be a motivating factor in your investment strategy. For example, you might want to consider selling investments that have appreciated in value to recognize long-term capital gain in 2012, before the maximum rate is scheduled to increase. Alternatively, you might consider timing the sale of an investment to postpone the recognition of a capital loss until 2013, when it could be more valuable. Roth conversions--is this the year?

If you've been on the fence about converting traditional IRA funds or pretax 401(k) contributions to a Roth account, you ought to give the matter one last hard look before the year ends. That's because when you convert a traditional IRA to a Roth IRA, or pretax dollars in a 401(k) plan to a Roth account, the converted funds are subject to federal income tax (to the extent the funds represent investment earnings, tax-deductible IRA contributions, or pretax 401(k) contributions) in the year that you make the conversion.

If tax rates go up next year, so will the effective cost of doing a Roth conversion. Additionally, qualified distributions from Roth IRAs and Roth 401(k)s are free from federal income tax. That could make a big difference in retirement if you're paying tax at a higher rate at the time. Whether a Roth conversion is right for you depends on a number of factors. If it makes sense for you, though, it might pay to think about acting now, rather than later.

To find out more click here

Legacy Investment Advisors, LLC (“Legacy”) is a registered investment advisor located in Mt. Laurel, New Jersey, in the suburbs of Philadelphia. Legacy and its representatives are in compliance with current registration and/or notice filing requirements imposed upon registered investment advisors by those states in which Legacy maintains clients. Legacy may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Any direct communication by Legacy with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.
Legacy does not make any representations or warranties as to the accuracy, completeness, or relevance of any information prepared by an unaffiliated third party provider. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. The information contained herein does not represent a recommendation or offer to buy or sell securities.
The value of an investment and the income from it may fall as well as rise and investors may not get back the full amount invested. Past performance is no guarantee of future results. Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2013.