How can a mortgage help you solve the challenges of longevity?

Join host Tom Kelly and Susan McHan of Opes Advisors as they explore the role that technology, mortgage and advice will play as longevity alters everyone’s future and solving that age-old problem of house rich and cash poor on “Real Estate Today.”

What is the industry definition of a tiny home? Are all of them on wheels? How do they different from an elegant mobile home?

Tom Kelly, host of ����Xվ Radio’s Real Estate Today, and Sharon Read from Seattle Tiny Homes discuss the growing popularity of smaller shelters.

Is there ever an uptick in value following a celebrity crime? Suicide? Who typically buys a “stigmatized” home?

Bell and Tom Kelly discuss how celebrity and crime influenced the value of some famous homes, including Kurt Cobain’s former Seattle residence, on “Real Estate Today” on 97.3 ����Xվ-FM.

How much do they cost and where can they be placed?

Join host Tom Kelly and Joel Egan from Cargotecture as they address the boom in container homes and what consumers underestimate when buying them on “Real Estate Today.”

Join host Tom Kelly and Wes Jones as they discuss how to market unique homes on “Real Estate Today” on ����Xվ Radio.

With interest rates remaining low, is anybody buying a smaller home? Or, are they merely purchasing a nicer home?

Join host Tom Kelly and Mark Gray, regional president of Shea Homes, as they discuss next-move options on “Real Estate Today” at 9 a.m. Sunday on 97.3 ����Xվ-FM.

Call 1-888-973-5476 (����Xվ) with questions, comments or concerns or listen online at ����Xվradio.com or Mynorthwest.com and send a message to participate.

Join host Tom Kelly and Steve Kennedy from RE/MAX as they discuss the local building practices on “Real Estate Today” on ����Xվ Radio.

How do you tell if a home is solid, even though a ton of deferred maintenance is needed? How to make the most of your time before making an informed offer?

Join host Tom Kelly and Dylan Chalk, a certified home inspector and author of The Confident House Hunter for “Real Estate Today” on ����Xվ Radio.

If my college roommate used my truck to move his stuff home and got in an accident, will his coverage take the heat, or mine?

If I’m heading out on vacation with my family to a hotel or rental home, do I need additional coverage?

Join host Tom Kelly and Dave Taylor from FirstMark Insurance Group as they review summer insurance needs on “Real Estate Today” at 9 a.m. Sunday on 97.3 ����Xվ-FM.

Call 1-888-973-5476 (����Xվ) with questions, comments or concerns or listen online at ����Xվradio.com or Mynorthwest.com and send a message to participate.

Unfortunately many older folks simply don’t know how or where to look to find the funds that would allow them to do so, that is, keep their home. The immediate need for seniors now is supplementing the income to provide the standard of living they desire.

When first introduced more than 30 years ago, the typical reverse mortgage was taken out by a single woman, often widowed, age 75, who needed funds to fix up her home so she could comfortably age in place. The purpose of reverse mortgages has changed over the years and they are now also being used to support a more well-to-do routine.

Let’s look at an example. Frank Williams, 77, and his wife, Carla, own 35 weeks of timeshares each year in five different timeshare systems. They work points, bonus time and favored status like some people work airline miles. They know how to successfully maneuver through each different organization to gain the maximum overall benefit. They are now actively filling in their timeshare schedule into calendar year 2022. That’s organization.

The Williamses took out a reverse mortgage on their principal residence in New Mexico not to buy more timeshare weeks, but to make sure they didn’t have to skimp getting to them or cut back on activities once they arrived.

“I know a lot of people are skeptical about reverse mortgages, but it worked for us,” Frank said. “Our friends want to leave everything they have to their kids, and that’s OK. But we’re not out to punish our kids by spending all of our money. Our kids are doing fine, they own their own homes, and would rather see us enjoy the rest of our lives.”

Consumers can choose how to receive and spend the money from a reverse mortgage. The options include a lump sum, fixed monthly payments (for life), a line of credit or a combination of the above. The most popular option – chosen by more than 60 percent of borrowers – is the line of credit, which allows consumers to draw on the loan proceeds at any time.

The size of the reverse mortgage depends on the age of the borrower at application, the loan type and home value. In general, the older the consumer and the more valuable the home (and the less amount owed), the larger the reverse mortgage.

A reverse mortgage can be viewed similarly to a home equity loan but without a monthly payment. Owners do not repay the loan as long as the home remains the principal residence. Income and credit rating are not considered when qualifying for the loan. There is no requirement that owners re-qualify during the term of the reverse mortgage yet property taxes and home insurance must remain current.

With a home equity loan, borrowers must make regular payments to repay the loan. These payments begin as soon as the loan is originated. To qualify for such a loan, the borrower must earn a monthly income great enough to make those payments. If payments are not made, the lender can foreclose, forcing the sale of the home.

The Williamses took out a home equity loan to do a major remodel on their home. Frank repaid most off the debt by selling some lackluster bonds then paid off the remainder with a reverse mortgage. The couple also receives $1,500 a month, tax free, for the next 20 years from funds remaining in the reverse mortgage.

“I had some assets that I didn’t really want to sell because I thought they would rebound and do quite well,” Frank said.  “So, I looked at the reverse mortgage as a way of buying us some time for those assets to come back. The bonds that I did sell were not yielding anything close to the interest rate we were paying on the home equity loan, so I sold them and paid it down.”

In winter, the Williamses spend up to five consecutive weeks in the same timeshare unit on the Big Island of Hawaii. They then will hop over to Kauai for a couple of weeks and then maybe hit Palm Springs and San Diego before drifting back home to New Mexico. Northern Idaho is a favorite summer spot.

But why would they want to pay $22,000-$23,000 in annual fees for the timeshares rather than simply plunk that amount down on a mortgage for a second home?

“I have no delusions about timesharing being a good investment. They’re a lousy investment,” Frank said. “But we enjoy doing what we do, going where we go. We have no regrets and wouldn’t change anything.”

New book: Follow real estate agent and basketball coach Ernie Creekmore as he attempts to solve another murder – this time a “helicopter” parent constantly prodding his star athlete son. Tom Kelly’s “Hovering Above a Homicide” is now in print and E-book form. Get a signed copy at TomKelly.com or purchase at bookstores everywhere and online.

Unfortunately, many older folks simply don’t know how or where to look to find the funds that would allow them to do so, that is, keep their home. The immediate need for seniors now is supplementing the income to provide the standard of living they desire.

When first introduced more than 30 years ago, the typical reverse mortgage was taken out by a single woman, often widowed, age 75, who needed funds to fix up her home so she could comfortably age in place. The purpose of reverse mortgages has changed over the years and they are now also being used to support a more well-to-do routine.

Let’s look at an example. Frank Williams, 77, and his wife, Carla, own 35 weeks of timeshares each year in five different timeshare systems. They work points, bonus time and favored status like some people work airline miles. They know how to successfully maneuver through each different organization to gain the maximum overall benefit. They are now actively filling in their timeshare schedule into calendar year 2022. That’s organization.

The Williamses took out a reverse mortgage on their principal residence in New Mexico not to buy more timeshare weeks, but to make sure they didn’t have to skimp getting to them or cut back on activities once they arrived.

“I know a lot of people are skeptical about reverse mortgages, but it worked for us,” Frank said. “Our friends want to leave everything they have to their kids, and that’s OK. But we’re not out to punish our kids by spending all of our money. Our kids are doing fine, they own their own homes, and would rather see us enjoy the rest of our lives.”

Consumers can choose how to receive and spend the money from a reverse mortgage. The options include a lump sum, fixed monthly payments (for life), a line of credit or a combination of the above. The most popular option – chosen by more than 60 percent of borrowers – is the line of credit, which allows consumers to draw on the loan proceeds at any time.

The size of the reverse mortgage depends on the age of the borrower at application, the loan type and home value. In general, the older the consumer and the more valuable the home (and the less amount owed), the larger the reverse mortgage.

A reverse mortgage can be viewed similarly to a home equity loan but without a monthly payment. Owners do not repay the loan as long as the home remains the principal residence. Income and credit rating are not considered when qualifying for the loan. There is no requirement that owners re-qualify during the term of the reverse mortgage yet property taxes and home insurance must remain current.

With a home equity loan, borrowers must make regular payments to repay the loan. These payments begin as soon as the loan is originated. To qualify for such a loan, the borrower must earn a monthly income great enough to make those payments. If payments are not made, the lender can foreclose, forcing the sale of the home.

Where to look? Many storage facilities are happy to help including SpareFoot.com, a company that aggregates available local storage space so consumers don’t have to call every facility in the area to find room for their extra stuff. A company spokesman indicated that May and June were two of the busiest moving months of the year.

“In fact,” said John Egan, SpareFoot.com spokesman, “the day after Memorial Day is the busiest moving day of the entire year.”

Really. I thought families didn’t move until school got out in June.

“A lot of families do wait until late June,” Egan said, “but not all of them are leaving their schools and they choose to move right after Memorial Day. For whatever reason, that’s the day that gets more moving activity than any other day.”

When I tossed my friend’s no-move-twice rule into Egan’s court, he replied that more people would be better served by using that guideline.

“You would be surprised at the number of times people pack stuff they haven’t seen in years,” Egan said. “Sometimes, they don’t even open the box. I’ve been known to tell people to give it away if they haven’t used it in a year.”

Egan then passed along SpareFoot’s five biggest mistakes consumers make when packing and moving.

1. Packing too much stuff.

Do you really need those old boxes of baby clothes that you haven’t laid eyes on since your six-year-old was in diapers? Before you move, you need to asses your belongings. Think about giving them away to family, friends or a local family who might need what you have. Hold a garage sale to clear out some of the clutter.

 2 . Failing to schedule your move well in advance.

During the summer months, good moving companies become extremely busy. Rather than waiting till the last minute, make sure your move is scheduled weeks – or, better yet, months – in advance. You don’t want to be scrambling to find a mover the day before you’re supposed to head out. Moving already is stressful enough without adding that frustration.

3. No solid cost estimate

If you hire a mover, you should be able to have someone from that company come to your home or apartment for an in-home moving estimate. If a moving company won’t do an in-home estimate, you should think about shopping around for another mover.

Don’t rely on just one quote from one mover. Contact several movers for quotes. If you really like one mover over another but your favorite company is a little pricey, try negotiating for a lower price. Always make sure to get a moving estimate in writing.

4. Hiring a shady mover.

We’ve all heard horror stories about moving scams, and perhaps maybe you’ve been the victim of a moving scam yourself. You can steer clear of a less-than-upstanding mover by doing your homework. The Better Business Bureau, Angie’s List, your state transportation regulator and the U.S. Department of Transportation – and even your relatives, friends, neighbors and colleagues – are all good sources of information about whether a moving company is on the up-and-up. Doing some homework online can save you a lot of heartache on moving day.

If you’ve done your research and still aren’t confident in the movers you’ve come across, you always can go the DIY route – just be sure you’re up for the task.

5. Actually packing ahead of time.

You’ll find very few people who’ll say that packing is fun. You can lessen the load by beginning to pack well before the movers show up at your door. Start with stuff that you won’t need right away. For instance, if you’re moving in the summer, pack up your winter clothes so that they’re out of the way.

If you get down to the wire and need help with packing, enlist friends, neighbors, relatives or colleagues to lend a hand. Make sure you’ve got plenty of food and beverages as a “thank you” for your volunteer helpers.

Follow real estate agent and basketball coach Ernie Creekmore as he attempts to solve another murder – this time a “helicopter” parent constantly prodding his star athlete son. Tom Kelly’s “Hovering Above a Homicide” is now in print and Ebook form. Get a signed copy at TomKelly.com or purchase at bookstores everywhere and online.

Unfortunately many older folks simply don’t know how or where to look to find the funds that would allow them to do so, that is, keep their home. The immediate need for seniors now is supplementing the income to provide the standard of living they desire.

When first introduced more than 30 years ago, the typical reverse mortgage was taken out by a single woman, often widowed, age 75, who needed funds to fix up her home so she could comfortably age in place. The purpose of reverse mortgages has changed over the years and they are now also being used to support a more well-to-do routine.

Let’s look at an example. Former Puget Sound residents Frank Williams, 77, and his wife, Carla, own 35 weeks of timeshares each year in five different timeshare systems. They work points, bonus time and favored status like some people work airline miles. They know how to successfully maneuver through each different organization to gain the maximum overall benefit. They are now actively filling in their timeshare schedule into calendar year 2022. That’s organization.

The Williamses took out a reverse mortgage on their principal residence in New Mexico not to buy more timeshare weeks, but to make sure they didn’t have to skimp getting to them or cut back on activities once they arrived.

“I know a lot of people are skeptical about reverse mortgages, but it worked for us,” Frank said. “Our friends want to leave everything they have to their kids, and that’s OK. But we’re not out to punish our kids by spending all of our money. Our kids are doing fine, they own their own homes, and would rather see us enjoy the rest of our lives.”

Consumers can choose how to receive and spend the money from a reverse mortgage. The options include a lump sum, fixed monthly payments (for life), a line of credit or a combination of the above. The most popular option – chosen by more than 60 percent of borrowers – is the line of credit, which allows consumers to draw on the loan proceeds at any time.

The size of the reverse mortgage depends on the age of the borrower at application, the loan type and home value. In general, the older the consumer and the more valuable the home (and the less amount owed), the larger the reverse mortgage.

A reverse mortgage can be viewed similarly to a home equity loan but without a monthly payment. Owners do not repay the loan as long as the home remains the principal residence. Income and credit rating are not considered when qualifying for the loan. There is no requirement that owners re-qualify during the term of the reverse mortgage yet property taxes and home insurance must remain current.

With a home equity loan, borrowers must make regular payments to repay the loan. These payments begin as soon as the loan is originated. To qualify for such a loan, the borrower must earn a monthly income great enough to make those payments. If payments are not made, the lender can foreclose, forcing the sale of the home.

The Williamses took out a home equity loan to do a major remodel on their home. Frank repaid most off the debt by selling some lackluster bonds then paid off the remainder with a reverse mortgage. The couple also receives $1,500 a month, tax free, for the next 20 years from funds remaining in the reverse mortgage.

“I had some assets that I didn’t really want to sell because I thought they would rebound and do quite well,” Frank said.  “So, I looked at the reverse mortgage as a way of buying us some time for those assets to come back. The bonds that I did sell were not yielding anything close to the interest rate we were paying on the home equity loan, so I sold them and paid it down.”

In winter, the Williamses spend up to five consecutive weeks in the same timeshare unit on the Big Island of Hawaii. They then will hop over to Kauai for a couple of weeks and then maybe hit Palm Springs and San Diego before drifting back home to New Mexico. Northern Idaho is a favorite summer spot.

But why would they want to pay $22,000-$23,000 in annual fees for the timeshares rather than simply plunk that amount down on a mortgage for a second home?

“I have no delusions about timesharing being a good investment. They’re a lousy investment,” Frank said. “But we enjoy doing what we do, going where we go. We have no regrets and wouldn’t change anything.”

New book: Follow real estate agent and basketball coach Ernie Creekmore as he attempts to solve another murder – this time a “helicopter” parent constantly prodding his star athlete son. Tom Kelly’s “Hovering Above a Homicide” is now in print and E-book form. Get a signed copy at TomKelly.com or purchase at bookstores everywhere and online.

What are the benefits of buying a vacation home?

Does it make sense to buy now in a place you see spending your leisure years? What are the costs, how do you finance such a purchase and will the property appreciate?

Join host Tom Kelly and Jim Donahoe, a veteran second home specialist, as they discuss second homes and attractive getaway on “Real Estate Today” at 9 a.m. Sunday on 97.3 ����Xվ-FM.

Call 1-888-973-5476 (����Xվ) with questions, comments or concerns or listen online at ����Xվradio.com or Mynorthwest.com and send a message to participate.

Corporations, public agencies and institutions routinely liquidate “real estate owned” (REO) portfolios to free up cash for other projects. These sellers are not usually affected by interest rates or economic environments, but the past few years have been atypical and the conditions have definitely added more properties to inventories. The acceptance and success of real estate auction sales has become a primary method of choice in disposing property.

Traditional auction companies are enjoying a brisk business, not only from companies and individuals looking for a swift disposition but also from savvy buyers looking for a long-term bargain property. Some investors have taken advantage of real estate opportunities by pulling their funds from other shaky investments and restructuring their portfolios to include a great deal on a home, apartment, vacant lot or timber parcel.

One of the largest Northwest real estate auction companies, Realty Marketing/Northwest, is holding its annual Spring Auction in three components again this year. The oral auction is scheduled for May 14 with sealed-bid auctions on different properties due May 26 and June 8. Some of the properties in the auction are offered with seller-financing, allowing investors to not have to shop for credit. The company also pays a cooperating broker’s a fee if a broker has a buyer participating in the auction.

Realty Marketing/Northwest has acted as the auction marketing agent for huge national corporations such as Weyerhaeuser and The Nature Conservancy. The company not only represents individual owners of small recreational and residential properties, but also regional lenders, builders and developers with commercial, industrial, ranch and timber parcels.

Realty Marketing was founded 30 years ago and is now the oldest, continuous real estate auction marketing program in the western United States. The company was recently ranked No. 4 in America’s top 25 auction houses by The Land Report, a publication specializing in disposition of surplus lands throughout the country.

Realty Marketing typically holds major auctions in the spring and fall every year along with supplemental campaigns featuring entire resorts. On the auction block in the company’s spring sale are properties in Washington, Oregon, Idaho, California, Texas, Arkansas, Louisiana and Florida.

Traditional auction houses bundle several dozen properties, charge sellers an up-front fee (often 10 percent of the sales price) and then conduct an intense marketing campaign aimed at a specific sale date. Their message to sellers is that they can put an end to insurance, tax and maintenance costs by selling on a predetermined day.

Auction catalogs typically contain descriptions and photos of the properties, site and unit plans and location maps. Terms and conditions of the auction sale are provided in detail, including financing, hours for inspection, deposits required and closing procedures.

The auction is also a way of determining what a property is worth. Different people bidding openly against one another is a genuine method of establishing true market value.

If you are heading to an auction in search of your first home, dream getaway or rock-solid investment, thoroughly inspect the property before making any offer. A small percentage are “distressed properties,” which may bring more problems than benefits. Study all appraisals and don’t let your competitive juices carry you away if the bidding gets moving. Stick to your price. Here are the different types of bids:

• Minimum bid: Seller has agreed to accept the highest bid that is equal to or greater than the published minimum bid for each property.

• Absolute bid: The property is sold to the highest bidder; no minimum bid has been set.

• Reserve bid: When the bidding equals the amount of a published reserve, the seller is committed to sell to the highest bidder. If the bidding falls short of the published reserve, the seller reserves the right to accept, counter or reject the bid.

Most of the auction sellers will carry financing with a 20-25 percent down payment. As usual, cash talks, so keep that in mind when negotiating terms with the seller.

Follow real estate agent and basketball coach Ernie Creekmore as he attempts to solve another murder – this time a “helicopter” parent constantly prodding his star athlete son. Tom Kelly’s “Hovering Above a Homicide” is now in print and E-book form. Get a signed copy at TomKelly.com or purchase at bookstores everywhere and online.

A few months ago, some friends became victims of credit-card fraud. Some scammer got access to their account and charged thousands of dollars of computer equipment on their card, via telephone, at a popular outlet in the San Francisco Bay area. They discovered the bogus charges after they had returned from a short vacation and quickly informed the bank that issued the card. Our friends also stipulated that they would not pay the charges that they did not make.

By the time the mess was sorted out, they were judged to have been late on a credit-card payment for the month that they refused to pay the phony charges. That blemish, coupled with another late charge when the bill-paying husband was out of town, sent their FICO score lower.

FICO scores (generated by Fair Isaac Corp.) typically range from a high of 850 to a low of 300. These numbers are compiled by the three national credit agencies. Most of the time, consumers who grade out above 760 get the best mortgage rates, those between 760 and 700 are in the middle and those under 630 usually pay the highest rates, if they can get financing.

To compound the problem, the husband chose to apply for a new credit card late last year when the preferred airline carrier tied to his card had a bad stretch of on-time service. He wanted to shift his frequent flier miles to another carrier, so he received another card supporting a different airline.

Really bad timing. When you apply for credit, or have lenders-creditors-companies inquire about your credit, your FICO score tends to go down. The lender for the proposed line of credit basically said “what have you guys been doing?” after the application had been filed and the new FICO score had arrived.

The good news is that many states, including Washington, have specific timelines in which creditors and reporting agencies must act on credit challenges. For example, a credit agency has 30 business days to reinvestigate any contested blemish on your credit report and then contact you with the findings. If the credit bureau cannot verify the delinquency in question, the delinquency must be removed. You must contest to delinquency to begin the 30-day clock.

The Washington law was passed in an attempt to get creditors and reporting agencies to clean up their files and speed up processing. It also requires that the credit-reporting agency contact the creditor within five days to verify the debt.

Before the law passed, my wife and I had a similar experience and spent months getting the challenge squared away. Several years ago, we had applied for a mortgage. We quickly received a credit report showing two delinquent payments to department stores. The “30-day lates” had occurred nearly seven years before then – about the time we were moving into a new home. I wrote the stores, explained what happened, and both companies removed the delinquent notices.

However, the letter from one store did not get to the credit bureau. The same delinquent notice showed up on my report the next time I considered a refinance. I dug out the original letter, called the credit agency, and demanded an explanation. Needless to say, I also called the department-store chain and spoke to a credit agent. I read her my letter over the phone and explained someone had dropped the ball. What added fuel to my fire was the long-distance call (no 800 number) and the time it took away from work.

Credit reports are powerful vehicles. Jobs, homes, reputations and future credit often depend on them. If an incorrect item appears on a credit report, it’s up to the consumer to see that it is corrected. For example, I once had two mortgages with the same lender. Both payments were once credited to one account, and I got a delinquency notice on the other. It took two letters and numerous phone calls to get the 30-day delinquency removed from my credit report.

Merely telling the agency is not enough. You should submit the explanation or proof in writing. People often don’t understand that a credit agency cannot remove something from a credit report without the authorization of the company filing the delinquency. Delinquencies include tax liens, judgments and repossessions.

(For a copy of your own credit report, contact the reporting agencies: Experian, (888) 397-3742, experian.com; Equifax, (800) 685-1111, equifax.com; and TransUnion, (312) 408-1077 transunion.com). The Fair Credit Reporting Act (FCRA) requires each of the companies to provide you with a free copy of your credit report, at your request, once every 12 months.

If you have additional problems regarding your credit report, contact the Consumer-Protection Division of the state Attorney General’s office. The telephone numbers are 1-800-551-4636 and 464-6684 (Seattle).

New book: Follow real estate agent and basketball coach Ernie Creekmore as he attempts to solve another murder – this time a “helicopter” parent constantly prodding his star athlete son. Tom Kelly’s “Hovering Above a Homicide” is now in print and E-book form. Get a signed copy at TomKelly.com or purchase at bookstores everywhere and online.

(Yes, the regular tax return filing deadline is usually April 15. However, due to the Washington D.C. Emancipation Day holiday being observed on April 15 instead of April 16, tax day is on the following Monday.)

For example, if you are considering making your vacation home your permanent residence, or vice versa, you should begin planning for a change in primary residence status.

If you have been using your vacation home as a rental, consider converting it to a primary residence for a period of at least two years. That way, if you have to sell unexpectedly, you can keep up to $500,000 in gains tax free. However, use caution and keep a paper trail.

Some people who retain homes and remain active in business or community affairs in their original states are finding that state tax officials are challenging their change of personal residence. Officials contend that these folks are still residents for income or estate tax purposes because they have not abandoned their original personal residences.

When intent conflicts with facts and circumstances, determining which residence is actually an individual’s primary residence can be confusing. The determination is usually based on the individual’s objective and facts such as:

•     Registering to vote
•     Having bank accounts and securities accounts
•     Payment of local taxes
•     Time spent in state of residency
•     Continuous car registration and driver’s license
•     Furnishing a primary residence more extensively
•     Using state of residence address in registrations and application

If you do move to a different state, know that some states impose a tax on the fair market value sale of intangible personal property owned or controlled by their residents. The intangible personal property that is subject to tax generally includes:

•     Stock options
•     Commodity futures and contracts
•     Notes, bonds, and other obligations for payment of money
•     Stocks and shares of incorporated or unincorporated companies, business trusts, and mutual funds.

States have numerous statutory exemptions from the intangible tax for particular assets such as money and cash equivalents, securities issued by the U.S. government, and interests in partnerships that are not publicly traded.
Persons who relocate to states that have enacted sales and use tax laws might be liable for use tax on their purchases. For example, if you purchase goods from an out-of-state vendor that are shipped into your new home state, you might be responsible for paying use tax on those goods.

Some states have become more aggressive in enforcing their sales and use tax laws. They have gone to great lengths––examining U.S. Customs reports, personal checkbooks, and credit card statements and sharing that information with other states. Some states have enacted strict filing responsibilities and record retention statutes with respect to individuals who are subject to sales and use tax laws.

According to Rob Keasal, residential tax specialist in the accounting firm of Peterson Sullivan, P.C., taxpayers often already own the property and would not have to pay a use tax for changing residency and bringing personal property to another state.

“In some states, when a rental is sold with tangible personal property, like a stove and refrigerator, it is considered incidental to the real property and no sales or use tax is paid when the property changes hands,’’ Keasal said. “However, many states are getting tougher. I’ve seen at least one state that even has a use-tax reminder on its income tax return.’’

Tax planners say you can eliminate your intangible tax liability if you structure your planning strategies correctly and implement them on a timely basis. Consider timing your move to avoid the initial year’s tax or by restructuring the ownership of tangible assets.

You will also want to consider the state income tax consequences of a change of residence. If you have bonuses coming, stocks options, or other deferred compensation (as is the case for example, with many professional athletes), carefully plan how you receive these funds relative to your move to avoid excessive state income taxes.

If you plan to move, especially to another state, take time to do the research on the tax ramifications before you get there.

Follow real estate agent and basketball coach Ernie Creekmore as he attempts to solve another murder – this time a “helicopter” parent constantly prodding his star athlete son. Tom Kelly’s “Hovering Above a Homicide” is now in print and Ebook form. Get a signed copy at TomKelly.com or purchase at bookstores everywhere and online.

The move has allowed thousands of borrowers since then to avoid paying tax on short sales or a foreclosure proceeding otherwise known as the “cancellation of indebtedness income.”

According Rob Keasal, a partner in the Seattle accounting firm of Peterson Sullivan LLP, the indebtedness relief benefit applies only on a primary residence – not second homes or investment properties – and is limited to the first $2 million of mortgage indebtedness on foreclosures on or after January 1, 2007, and before January 1, 2013.

Refinances made between the time of purchase and foreclosure can cloud the relief indebtedness waters. For example, if you refinanced your loan and took cash out of the property to pay for cars, vacations and other real estate, the amount of your loan when it went into foreclosure could have been far greater than the original debt. The relief limit stops at the amount of the original debt, minus what you have paid in principal. Money borrowed for capital improvements can be added to the original debt figure.

There is no relief or tax deduction, however, for selling your home at a loss.

Most homeowners are now clear on the ability to pocket up to $500,000 of tax-free capital gain ($250,000 for single people) on the sale of a primary residence. The huge benefit, which can be used every two years, was made possible by the Taxpayer Relief Act of 1997.

But the tax law that provided the capital help did nothing for capital losses. There still is no benefit for folks who bought at the peak or made expensive remodels, then had to sell in a hurry and actually received less money for their home than the cash they had invested in it. Long-term capital expenditures usually pay off over time, but the cost of improvements over the short term are difficult to recover.

If you are hoping for some help on your 2015 return before April 15, don’t count on chalking up a capital loss as a big tax deduction. There still is no deduction for a capital loss on the sale of your primary residence. This often causes confusion and provokes questions from consumers, but Uncle Sam will not let you show a loss if you sell for an amount less than the purchase price.

Why? The principal residence has always been viewed as a personal asset. The gain on the sale of a principal residence has been taxable as a capital gain but losses have never been allowed. Although the capital gain thresholds have been increased, proposals to address capital losses have been defeated.

The capital loss proposals first surfaced in the 1990s when complaints from homeowners in the Sun Belt and New England said they were left with huge losses and no federal tax help when home values plunged – especially when the declining oil industry in Texas really shook the housing market around Houston.

Also discussed at tax time is the deductibility of loan fees. You can deduct the loan fees (“points”) paid to buy or improve your main home in the year of purchase. You cannot deduct these fees in the year you refinanced if you refinanced only to obtain a lower interest rate on your loan.

The term “points,” once used to describe only prepaid interest on government loans, now is used to describe charges paid by an owner to secure any mortgage. These points can be loan origination fees or prepaid interest to “buy down” an interest rate. To be deductible, these charges – or points – must represent interest paid for the use of money and must be paid “before the time for which it represents a charge for the use of the money.”

According to the Internal Revenue Service, most points paid when you are refinancing an existing mortgage must be written off over the life of the new loan. For guidance on closing costs, the best source may be the settlement sheet from the original loan.

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The Federal Trade Commission and the National Association of Realtors issued a warning to consumers to be mindful of a growing mortgage closing phishing scam that could leave home buyers with no down payment.

In the warning, FTC and NAR said that scammers are hacking into the email accounts of consumers and real estate professionals in order to access information about the closing date. The hackers will then send an email to the buyer and pose as the real estate professional or title company.

In the email, hackers will say there’s been a “last minute change” to the wiring instructions for the funds for closing. They will then instruct the buyers to send the funds to a different account, which really belongs to them.

A buyers’ bank account could be cleared out in a “matter of minutes,” and they aren’t likely to get it back, according to the FTC.

“If you’re buying a home and get an email with money-wiring instructions, STOP,” the FTC posted in its bulletin. “Email is not a secure way to send financial information, and your real estate professional or title company should know that.”

Have residential inspectors become too picky?

Join host Tom Kelly and Geff Spry of Hawks Eye Home Inspection as they discuss the state of structural inspections on “Real Estate Today” at 9 a.m. Sunday on 97.3 ����Xվ-FM.

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