“Nothing in the world is more dangerous than sincere ignorance and conscientious stupity”

Two bills passed by Congress promise long-awaited relief by easing mortgage financing and revising the tax code.

By Kenneth Harney, Washington Post Writers Group

Last update: December 28, 2007 - 5:22 PM

Overcoming months of inaction in a single day, the Senate passed two major bills Dec. 14 that could help thousands of homeowners now struggling with unaffordable mortgages or heading for foreclosure.

http://www.startribune.com/homes/12837866.html

Our thanks go out to KillerStartUps.com for doing a profile about Webdigs. Thanks also to our customers who have made comments about your experiences with us. To read it all, go to:

http://www.killerstartups.com/Comm/WebDigscom—Find-Your-Dream-Digs

“Reputation is what other people know about you. Honor is what you know about yourself.”

We have had many inquiries about how the IRS will treat the 2/3 commission rebates which we give to our customers. While we are not CPA’s or Attorneys and can not give tax advice, below is an article about the IRS ruling which online broker Redfin of Seattle, received by request. We wish to thank Redfin for making this request and gaining clarity for us all. Redfin is very similar to Webdigs except that, at Webdigs, we provide full real estate and other services such as mortgage and insurance. Congratulations Redfin on this IRS ruling and on your success.

IRS Rules That Redfin Does Not Have to Report
Commission Refunds as Taxable Income

SEATTLE - March 7, 2007: Online real estate broker Redfin Corporation today announced a ruling from the U.S. Internal Revenue Service that Redfin does not have to issue Form 1099 to customers that receive commission refunds because such amounts generally are not taxable as income. Redfin is notifying all of its home-buying customers by mail that the company will not report their commission refunds to the IRS.

Redfin Direct combines an e-commerce application with the services of a local, experienced Redfin agent who handles home tours, pricing advice, offer presentation, negotiations, inspections and the closing process. Home-buyers who can find a home to buy on their own get two-thirds of Redfin’s commission refunded at closing.

Across Washington and California, Redfin’s average commission refund is more than $10,000. Redfin customers typically apply their refund to closing costs, which include loan fees, local property taxes and escrow-related costs as well as an initial mortgage payment. As the commission refund usually exceeds closing costs by thousands of dollars, Redfin often issues its customers a check for the excess.

Prior to Redfin Direct, commission refunds in excess of closing costs were relatively rare, and no ruling existed as to whether such amounts were required to be reported on Form 1099. Accordingly, Redfin petitioned the IRS in November 2006 for a ruling, which Redfin received from the IRS last week.

Because an individual or corporation can only petition the IRS on its own behalf, Redfin could only seek a ruling to clarify its own reporting obligation, not to address the individual circumstance of each customer’s tax return. The ruling does however state that “a payment or credit at closing from [Redfin] represents an adjustment to the purchase price of the home and generally is not includible in a purchaser’s gross income.’

In support of its ruling, the IRS cites guidance addressing a non-profit’s down-payment assistance to low-income families buying houses or a manufacturer’s rebate on a car, neither of which are taxable. The full text of the ruling is available on Redfin’s blog.

“Seeking a ruling from the IRS is not an insignificant undertaking,” said Redfin VP of Real Estate Operations David Wilner. “Rather than having hundreds of customers make inquiries with the IRS on a case-by-case basis, we felt it was the right thing to do as part of our commitment to supporting customers through every phase of the home-buying process from offer to close and beyond.”

“It is a mistake to look too far ahead. The chain of destiny can only be grasped one link at a time.”

When Selling your home – here are some green ideas that are relatively low-cost solutions to help add value to your home and help keep pace with the green trends more and more buyers are looking for:

· Seal Windows – plug all air leaks with caulk or weather stripping

· Consider Recycled insulation if any needs to be replaced or added – helps show buyers possible energy cost savings

· Consider updating old appliances with new Energy Star Label efficient ones

· Consider choosing eco friendly materials such as bamboo flooring – for any remodeling projects

· When replacing any bathroom fixtures use low-flow toilets, showerhead, and faucets –

· Replace all light bulbs with energy efficient ones

“When one door of happiness closes, another opens; but often we look so long at the closed door that we do not see the one which has opened for us.” Helen Keller

How I Sold It
’Tis the Season to Think Outside the Box

Unfazed by a tough market and cash-strapped holiday shoppers, a creative practitioner brings festive cheer to a dated rental property.

http://www.realtor.org/rmomag.nsf/pages/HowISoldIt200801?OpenDocument&WT.mc_t=LS010208&WT.mc_n=Sales