Month: June 2010

New Bills for 2010 Home Buyer Credit and Unemployment Insurance Extension

The home buyer credit, extended and expanded over the last 3 years is set to expire at the end of this month with Congress still unable to approve the extension as part of HR 4213. However, recently released data for May 2010 shows worrying trends of sharply declining sales of existing and new homes. Further, inventory data and foreclosure activity have not shown any signs of improvement. All this suggests that the expiration of the home buyer credit may have more of an impact than people thought.

This has prompted Congress to take more action with the stalling of the HR 4123 bill in Congress, due to other provisions. As such 2 new bills have been introduced to try and extend the home buyer credit and also unemployment insurance – 2 key bills that Congress is likely to approve given their importance to their constituents. These bills are:

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Financial Reform Bill Summary – What it Means to Your Future. Free Credit Score, Bank Stocks and Consumer Protection Measures

[Updated] Approved! Congress and the President have approved the financial reform bill (detailed below) that would revamp the nation’s financial regulatory system. It will allow for the creation of a consumer financial protection bureau at the Federal Reserve, give regulators new powers to liquidate failing financial firms whose collapse would threaten the economy and create a council of financial regulators to monitor systemic risk. It is aimed at curbing risk-taking by Wall Street firms and lessening the impact of any future financial crisis.

Financial reform will continue to be clarified by the regulating bodies over the next couple of months and will post these updates when available. I encourage you to subscribe (free) via Email or RSS to get the latest news.

Congressional negotiators approved a sweeping overhaul of U.S. financial regulation reshaping oversight of Wall Street banks, brokers and investment firms. It contains new laws covering how derivatives will be traded, credit agencies regulated, investor rights and more credit card company reforms. Consumers and business will be significantly affected over the next few years by the financial reforms.

Obama today praised lawmakers for agreeing on what he called the “toughest” consumer reforms in history. “Credit card companies will no longer be able to mislead you, The new rules in the U.S. will be a model for safeguards that “can protect all nations.”

Here’s how some of the main provisions will impact your financial and investing future:

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Homebuyer Tax Credit Fraud Puts Pressure on Further Extensions

As many readers of this site await to hear about a possible extension to the home buyer credit closing date, part of the latest Jobs and Tax Bill (HR4213), it was worrying to read some of the recently released IRS statistics on fraud surrounding the credit.

The IRS  doled out more than $27 million in fraudulent claims for the home buyers’ tax credit on returns for 2008, including claims by prisoners serving life sentences and people who purchased their home before the credit was in effect, according to a U.S. Treasury Department report. One group in particular, 1200 prison inmates, including 241 serving life sentences, defrauded the government of $9.1 million in tax credits reserved for first-time home buyers.

Treasury’s inspector general also found that

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Making Money From the BP Oil Spill – Ambulance Chasing Lawyers, Adwords Advertising and T-Shirts

BP Oill Spill ShirtThe BP oil spill has been a non-stop news item and most people are probably tired of hearing and reading about this environmental disaster due to corporate negligence.  I am not going to delve into the issue, but it was kind of morbid to read that people and companies are actually making money from this tragedy and government ineptitude. No doubt the affected have been hit hard but a select few are making some serious money (the dark site of capitalism). Here are a few that I have read about. Feel free to leave a comment for any other’s you have heard about. To me, the only redeeming aspect of making money from the disaster is if the benefactors give some or most of it back to the impacted folks.

Oil Spill T-Shirts and Merchandise – One guy sold a 1000 T-shirts at $9.95 a pop on Monday after the oil spill hit national headlines. By now he has probably sold thousands more and raked in a nice fortune. But the competition isn’t far behind with a Google search revealing lots of oil spill related t-shirts and related products now on sale across the Web, taking aim at BP and its “responsibility” pledges. There’s tote bags, buttons/badges and coffee mugs on every e-tail site with a PayPal button. I just hope some of the proceeds are going to a good cause!

Wall Street Fat Cats trading BP and implicated companies stock – Whether stocks go up or down, professional Wall street traders love volatility and can make ton’s of money shorting stocks on the way down. Watching CNBC’s fast money show is a good example of this where some of the traders say “buy”, while the other half say “sell”. My advice is stay far away from BP stock. Much better to give the money you are bound to lose to relief causes and sleep better at night.

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Tax Credits and Deductions for Teachers ($250), Unemployed, Home Owners ($500/$1000) and College Tuition in 2010 Jobs and Closing Tax Loopholes Act

The recently introduced American Jobs and Closing Tax Loopholes Act (Bill: HR 4213) includes important tax cuts to put more money back into the pockets of American families and workers. This new bill extends critical tax cuts through the end of 2010 so families and workers can receive the full benefits of these tax cuts on their 2010 tax returns and, therefore, have more money to spend on the items they need like gas and groceries. The proposals are estimated to provide American families with an additional $5 billion of tax cuts in 2010. Specific tax breaks and credits include:

Tax Cut for College Tuition – This bill extends a tax deduction for qualified education expenses including college tuition and fees, so Americans can get the world-class education they deserve without going bankrupt in the process.

Property Tax Deduction – This bill extends the additional standard deduction for state and local property taxes to save families money on their federal tax returns. This deduction allows taxpayers who do not itemize their tax deductions to receive property tax relief as a standard deduction of $500 for single filers and $1,000 for joint filers.

Tax Cut for School Teachers – This bill extends a $250 tax deduction for teachers who buy

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