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Short sale sellers need to close in 2012

Rick Schuster: Real Estate - Other in Boca Raton, FL
WASHINGTON – Feb. 3, 2012 – If a bank writes off debt in a short sale, it’s a “taxable event,” and the lender tells the Internal Revenue Service about the deal by submitting a “Form 1099-C, Cancellation of Debt” at the end of the year. Home sellers must acknowledge the amount when they fill out their federal taxes. Through Dec. 31, 2012, however, the federal government forgives any tax liability associated with forgiveness of a mortgage loan.


“In general, homeowners believe the government will extend this tax provision,” says San Diego Realtor Joy Bender. “However, as evidenced by the First Time Homebuyer Credit expiration in 2010, you can’t always count on the government to bail you out.”

The government generally considers forgiven debt to be income. If a seller has signed legal loan papers to take out a $200,000 mortgage and the lender accepts $100,000 in a short sale, for example, the seller received the equivalent of $100,000 in free money by government estimates. As a result, the IRS taxes it. For tax year 2012, however, the government still forgives the debt; in 2013, it might not.

The tax amount can be significant. On a debt of $100,000, a short-sale seller in the 25 percent tax bracket could end up owing $25,000 in income taxes.

Since short sales can take months and even fall through, homeowners considering a short sale may want to start the process sooner rather than later.

© 2012 Florida Realtors®

Reprinted with permission. Florida Realtors®. All rights reserved.

Is Your Child's Backpack too Heavy?

Rick Schuster: Real Estate - Other in Boca Raton, FL

This past Friday marked the end of the first week of school for Palm Beach county students. I couldn't help but notice the immence backpacks that my children (6, 9 and 11) were carrying to school. Is this healthy? Can the weight of the backpacks injure them? I am very concerned about this as Waters Edge Elemntary School and Loggers Run Middle School do NOT have lockers and they do not allow rolling backpacks. Why?

According to an article appearing in Pediatric Views, located at http://www.childrenshospital.org, "...there's no proof that backpacks specifically cause children's back problems. However, the American Academy of Orthopedic Surgeons and the American Physical Therapy Association have set guidelines that should be followed with backpacks to reduce the potential risks associated with them."

According to an article in about.com, the weight limit for a child's backpack should not exceed 10% of the child's body weight. The same article goes on to mention that you should aim for 5%. I measured my kids backpack's and guess what -- they ranged from 12.8% - 13.5%. What can I do about it? NOTHING!! The schools will NOT allow rolling backpacks and do not use lockers. Why not allow rolling backpacks? I'd rather see the kids slowing down in the hallways because they don't want to run over one another's toes rather than seeing them hunched over when their older because of back issues.

I'm not sure whether there's an answer, but it sounds like the Palm Beach County School District may have some explaining to do if some of their student's are affected by their decision(s) not to allow rolling backpacks or an alternative that "makes sense".

If you happen to be in the same situation as I, make sure you take the necessary precautions -- such as -- making sure the backpacks have padded straps, get as wide a strap for the backpack as possible and make sure the child is using BOTH straps to carry the backpack.

Isn't is crazy that I actually have to write about this? Shouldn't the District do something about this? What do you think?

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6-Year Old - 13% 9-Year Old - 13.5% 11-Year Old - 12.8% (14 LBS)

BOCA FALLS Homes For Sale | Boca Raton Real Estate

Starfish Team: Real Estate Brokerage in Vero Beach, FL

Find BOCA FALLS Homes For Sale and BOCA FALLS Home Values. We also have information on mortgages, insurance, movers and other Boca Raton Real Estate Services for anyone looking to sell or buy a home in beautiful Palm Beach COUNTY Florida.

Boca Raton Real Estate

Paul Kitchen and Starfish Real Estate provide clients, family and close friends with professional, honest and dependable service. A resident of the Treasure Coast, Paul is extremely familiar with the local neighborhoods including BOCA FALLS, school districts and the Boca Raton Real Estate market in this beautiful Palm Beach County town.

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Stuart, FL 34994
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Waters Edge Elementary Holiday Choir Presentation

Rick Schuster: Real Estate - Other in Boca Raton, FL

This evening was the Waters Edge Elementary School Holiday Choir Presentation. The participants included 2nd through 5th graders and, as you may imagine, the venue was standing room only.

Not only were the children unbelievably impressive in their individual talents, equally impressive was the attendance of the administrative staff at the school. The Principal, Mr. Slack and his Vice Principal Mrs. Goode, were in attendance along with various teachers and other staff members.

Also in attendance were students "supporting" other students -- kinda' cool at this age and a little unexpected as well.

The children performed 8 holiday songs recognizing the major holidays of the season and 2 second graders acted as the MC's (who were incredible).

All in all the experience was one in which I will not forget anytime soon and it is a very strong reminder of all that West Boca Raton has to offer. Not only is Waters Edge a National Blue Ribbon School of Excellence, but the "extras" afforded by the staff etc. continue to propel the education to new heights. Kudos to the school for the presentation and to the parents for making sure the kids were ready for the performance.

I can't wait for the next show --- I will be sure to invite my entire family and maybe a neighbor or two as well!!

Oh yeah, Carolyn -- you did I great job. Mom and I are so proud of you!!

Oh No, My Power Went Out ---- Now What?

Rick Schuster: Real Estate - Other in Boca Raton, FL

When I pulled into the driveway at 10:30 this morning after 2.5 hours of tennis, I realized that the garage door remote control was not working. Thinking that the switch in the garage may have been flipped off by one of my kids, I let myself into the house via the front door where I quickly learned that the power was out not only in the house but in the entire neighborhood!

Immediately, I began to think of all the things I "needed" to do today which required electricity:

1. Fix the light fixture in the bathroom
2. Trim the trees/bushes with the electric chain saw
3. Help my son with his project on the desktop computer (due tomorrow)
4. Work on our title company 2011 vision plan
5. Visit Active Rain
6. Watch the Dolphins lose to the Browns

I think that you get the point. There was a lot to do today and I was afraid that the lack of electricity would cause my day to be a "lost" day. If I didn't get these things done terrible things would happen to my life ---- right?

Thankfully, the power was not out for long and I was able to accomplish much of the list above and quite a bit more as well (we cleaned the cars and the garage as well).

I must tell you, however, that during the time that the power was out ---- it was awesome. I was no longer "plugged in" (I left my Blackberry in its holster in my office). I did not feel that I had to check email every so often. I did not feel trapped by technology and forced to do things "it's way". I was relaxed, focused and got a lot of stuff done (ala the garage and cars).

Maybe it was a good thing that the power was off -- it's gotten me to remember that electricity is a convenience that we're so used to we just take it for granted and every once in a while it's good to be reminded that life can go on without certain conveniences.

(At lease for a few hours while the power is out!)