On January 1 both the Senate and House passed H.R. 8, legislation to avert the “fiscal cliff,” the bill will be signed shortly by President Barack Obama. Below are a summary of real estate related provisions in the bill.Real Estate Tax Extenders
- Mortgage Cancellation Relief is extended for one year to January 1, 2014
Lawmakers managed to extend the Mortgage Forgiveness Debt Relief Act as part of their 11th hour deal to avoid the fiscal cliff.The extension means homeowners now will be excused from paying taxes on forgiven mortgage debt through 2013. The law, established in 2007, was set to expire Dec. 31.Without an extension, homeowners who completed short sales or mortgage modifications may have faced tax bills in the tens of thousands of dollars. Some industry officials feared that would hurt the housing recovery.
- Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012
- 15 year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012.
- The 10% tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012.
Other Provisions· Higher taxes on individuals earning $400,000 and on families making $450,000 or more. Under that threshold, the Bush-era tax cuts will be permanent for all but the wealthiest households. The $450,000 threshold for families is a significant increase from Democrats’ initial proposal to raise taxes on Americans making $250,000 or more, but it is lower than Republicans’ earlier proposal to raise taxes on households making $1 million or more.· Higher tax rates on capital gains and dividends for wealthier households. Taxes on capital gains and dividends will be held at their current levels of 15 percent for individuals making less than $400,000 and households with income of less than $450,000. They will rise to 20 percent for individual taxpayers and for households above those thresholds.· Automatic spending cuts delayed for two months. The "sequester," which would impose steep, across-the-board cuts to domestic and defense programs, will be delayed for two months.· One-year extension to unemployment insurance. Emergency unemployment benefits will be extended for a year. The extension was a priority for President Obama and congressional Democrats.· One-year "doc fix." The measure will put off scheduled cuts in physician payments under Medicare. In the absence of an agreement, the payments were going to be reduced by 27 percent in January.· Nine-month farm bill extension. Breakfast lovers, rejoice: A much-feared spike in milk prices, dubbed the “dairy cliff” because it was also set to kick in abruptly on Jan. 1, will be averted through a nine-month extension of certain portions of the farm bill.· Personal exemptions phased out for individuals making over $250,000. Personal exemptions will be phased out and itemized deductions will be limited for taxpayers making over $250,000 and families earning more than $300,000.· 40 percent estate tax. The estate tax will rise to 40 percent from its current 35 percent level, with the first $5 million in assets exempted. Democrats had earlier sought a higher increase to 45 percent and a lower exemption of $3.5 million.· Permanent fix to the Alternative Minimum Tax. The alternative minimum tax was levied to ensure the wealthiest Americans paid a fair share of taxes. It was not indexed for inflation but is usually “patched” annually to prevent an increasingly large swath of middle-class Americans from being caught in its net. As part of the fiscal deal, the AMT will be permanently indexed to inflation.· Tax breaks for working families. The deal includes five-year extensions of the American Opportunity Tax Credit, which can be claimed for college-related expenses; the Child Tax Credit; and the Earned Income Tax Credit, which is a refundable income-tax credit for low- to moderate income working Americans.· Business tax breaks. The Senate Finance Committee passed a package in August that tackled a variety of routinely expiring tax provisions known as extenders. These popular tax provisions include breaks for research and development. That package passed as part of the broader cliff deal.· Congressional pay freeze. President Obama recently authorized a congressional pay raise in a move that angered many congressional Republicans. Under the New Year's cliff measure, members of Congress won't see their pay increase.Although the legislation will avert many of the year-end tax hikes and spending cuts that were set to kick in, it failed to address some of the major issues that have divided Congress in recent months. Here’s what it left out:· An agreement to raise the debt ceiling. The nation reached its borrowing limit on Monday, and the Treasury Department has said it will use “extraordinary measures” to avert default as long as it can—likely into February. Then Congress will have to once again take up the contentious issue of raising the country’s so-called debt ceiling. Last time, the negotiations resulted in a downgrade of the U.S. credit rating and a whipsaw month in markets. This time, the stakes will be just as high.· Extension of the payroll-tax cut. A temporary, 2-percentage-point cut to the payroll tax expired at midnight on Dec. 31, 2012, and was not renewed. If you make $50,000, that’s an extra $1,000 in taxes you will be paying this year.· A grand bargain. Lawmakers didn’t address the country’s long-term fiscal issues in this bill -- namely, a complicated tax code and rising entitlement spending.
Wednesday, January 2, 2013
Fiscal Cliff results
Friday, December 28, 2012
Home Theater Tips - 12/28 Money Pit e-Newsletter
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If you received a top-of-the-line flat screen TV as a holiday gift, chances are you're itching to set it up as quickly as possible. Not so fast! Before you start, check out our TV-hanging guide and learn why careful preparation will pay off. You can do-it-yourself, but you don’t have to do it alone.
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How to Hang a Flat Screen TV
Hanging a flat screen TV is a skill few people have, and not every flat-screen TV needs to be hung. But if you decide to go with a wall-mounted flat-screen TV, don't take risks with your investment. Follow these steps to securely mount your plasma or LCD TV for years of enjoyment. read more
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Top Tips for Home Theater Design
More and more people are looking to design their very own home theaters. To make sure your new media room is a hit, check out these helpful hints and do-it-yourself solutions for all budgets. read more
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Pet-Friendly De-Icing Products
If you have pets, harsh chemical de-icers can be hazardous. They are also bad news for carpeting and wood floors when you track them indoors. Choose a de-icing product carefully and you'll keep your pets and your home in great shape all winter long. read more
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Pamper Your Pooch in Winter
Even the most outdoor-loving dog can suffer the ill effects of winter weather as easily as humans. Depending on your type of dog and your budget, there are dozens of ways to ensure your best friend stays happy and healthy. This winter, give a thought to your dog's safety and comfort with these cutting-edge pet gadgets. read more
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You Could Win a New Washer & Dryer, But Time is Running Out to Enter!
Christmas may be over, but you can still enter Santa's Home Improvement Sweepstakes for a chance to win a Whirpool Duet High Efficiency Washer & Dryer, a prize value of $1,449! And the more you share, the better your chances -- for every friend who enters, you get 5 bonus entries! Just "Like" the Money Pit on Facebook to get started. read more
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The World’s Best Places To Live
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Can there be a city that is crime and pollution free, with excellent public transport and great schools to boast?Human resources consulting firm Mercer has put together a list of cities that come closest to offering you all that. In its 2012 Quality of Living report it looks at living conditions in 221 cities worldwide and ranks them against New York as a base city in 10 categories - economy, socio-cultural environment, politics, education, and healthcare.
Austria's most populous city – Vienna – has won the title of the world's best city for quality of life since 2009. It is also one of eight European cities to make the top 10 list, showing the region's dominance in the survey.Vienna is the cultural, economic, and political center of the country. It has the highest per capita GDP among all Austrian cities at over $55,000. Vienna's ability to transform old infrastructure into modern dwellings won the city the 2010 United Nations urban planning award for improving the living conditions of its residents. Under a multimillion-dollar program, the city refurbished more than 5,000 buildings with nearly 250,000 apartments. Vienna is also the world's No. 1 destination for conferences, drawing five million tourists a year — equivalent to three tourists for every resident.The country's economy has, however, not been immune to the crisis plaguing Europe, and shrunk 0.1 percent in the third quarter of the year, as the European Union entered its second recession since 2009.
Zurich, Switzerland's largest city, keeps the number two spot from last year after holding the title of the city with the best quality of life in the world previously. It is also one of three Swiss cities to make the top 10 rankings – tying with Germany for the most number of cities on the list.Known as a global financial center, one out of every nine jobs in Switzerland is based in Zurich. Its low tax rates attract overseas companies and the assets of the 82 banks based there are equivalent to more than 85 percent of the total value of assets held in Switzerland. The city is also the country's biggest tourist destination, famous for its lakeside location and chain of hills that run from north to south, providing an extensive range of leisure activities.The cost of living in Zurich is the sixth highest in the world, according to Mercer. Both Zurich and Geneva make Switzerland the most expensive country to live in in Western Europe. The city also attracts people to buy luxury properties here, because of its low taxes, safety record and good education system, according to real estate firm Knight Frank.
New Zealand's largest and most populous city, Auckland, offers the best quality of life in the Asia-Pacific region, now for the second year in a row. It has been consistently placed within the top five best places to live in for the past six years.Auckland is uniquely set between two harbors, with 11 extinct volcanoes and numerous islands making it the city with the world's largest boat ownership per person. Auckland is New Zealand's economic powerhouse - its 1.4 million people account for more than 30 percent of the country's population and contribute 35 percent to the country's GDP. Auckland is also home to the most educated people in the country, with nearly 37 percent of its working population holding a bachelor's degree or higher.In March, the city launched a 30-year initiative called "The Auckland Plan" to make it the world's most livable city. The plan aims to tackle challenges in transport, housing, job creation and environment protection. However, the city has been impacted by the global economic slowdown. In the third quarter New Zealand's unemployment rate hit a 13-year high of 7.3 percent.
Munich is Germany's third largest city and one of the country's key economic centers. It is also one of three German cities to dominate the top 10 rankings for the best quality of life.Holding on its fourth spot from last year, Munich is home to some of Germany's most notable businesses, including engineering firm Siemens and insurer Allianz. The city generates nearly 30 percent of the gross domestic product of the State of Bavaria. Munich's per capita purchasing power was more than $33,700 in 2011, the highest among all German cities and 30 percent above the national average. Drawing immigrants to its industries from all over the world, more than a fifth of the city's residents are foreigners.Munich ties fellow German city Frankfurt for having the second best infrastructure in the world, according to Mercer. In total, four German cities including Dusseldorf and Hamburg dominate the top 10 infrastructure rankings highlighting the country's first-class airports and high standard of public services.
Vancouver is the only Canadian and North American city to make the top 10 list this year, similar to 2011.Vancouver has made it to a number of rankings on the world's most livable cities over the past decade and has been among the top five in the Mercer quality of living survey for the past six years. Home to one of the mildest climates in Canada, Vancouver is also its greenest city with the smallest carbon footprint of any major city in North America. Surrounded by water and snowy mountains, Vancouver's government constantly promotes green building, planning, and technology with the ambition of becoming the world's greenest city by 2020.In terms of infrastructure, Vancouver also tops the rankings for North America at ninth with Montreal and Atlanta landing in 13th place. Overall, Canadian cities still dominate the top of the rankings for North America despite only Vancouver making it into the global top 10. Ottawa comes in at 14, Toronto at 15 and Montreal at 23, while it's closet U.S. competitor is Honolulu at 28 globally.
Rare Photos of Mt Everest
Cosmonaut returns from space with extraordinary image of Mt. Everest
By: Pete Thomas, GrindTV.com
Many have looked up at Mt.Everest, in awe at its height and majesty as the world's tallest peak, one that is attainable by mountaineers but only at great risk. But only a handful of people have looked down upon the Himalayan giant from the International Space Station, and they've found that the 29,035-foot Everest, while it definitely stands out, does not look nearly as tall from 250 miles above the planet.
Russian cosmonaut Yuri Malenchenko last month captured the very rare image that accompanies this post. Peter Caltner placed the image in his Twitpic feed on Saturday, which was followed by a tweet from U.S. astronaut and former Space Station resident Ron Garan, and since then the image has hurtled through the Twitterverse.
Garan, who never was able to snap a decent photo of Everest, explained to The Atlantic's Rebecca J. Rosen why the task is so difficult: "The answer is quite simple, all the photos we take from space are taken in the crew's own personal time. No time is allotted in our work day normally for Earth pictures. So if we want to capture a specific point on the ground we have to first know exactly when we will fly over that spot, second be available to grab a camera and get to a window, and third have the weather and proper sun angles to get a great shot. Over the course of my six months in space I was never able to get all three of those to align for Mt. Everest."Alan Boyle, in a NBC News blog, points out that Malenchenko, who has since returned to earth, captured other gem images as well, of such iconic locations as St. Louis, Tokyo and the Sea of Brightness off South Korea. So while it was mostly work and very little play at the ISS, the rest of us are fortunate that Malenchenko managed to fit in photography as a hobby. --Top image showing Mt. Everest from space was captured by Yuri Malenchenko and is courtesy of NASA. Bottom image is a generic ground view of the Himalayan peak.
Indian sitar virtuoso Ravi Shankar dies at 92
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NEW DELHI (AP) — With an instrument perplexing to most Westerners, Ravi Shankar helped connect the world through music. The sitar virtuoso hobnobbed with the Beatles, became a hippie musical icon and spearheaded the first rock benefit concert as he introduced traditional Indian ragas to Western audiences over nearly a century.
From George Harrison to John Coltrane, from Yehudi Menuhin to David Crosby, his connections reflected music's universality, though a gap persisted between Shankar and many Western fans. Sometimes they mistook tuning for tunes, while he stood aghast at displays like Jimi Hendrix's burning guitar.
Shankar died Tuesday at age 92. A statement on his website said he died in San Diego, near his Southern California home with his wife and a daughter by his side. The musician's foundation issued a statement saying that he had suffered upper respiratory and heart problems and had undergone heart-valve replacement surgery last week.
Indian Prime Minister Manmohan Singh also confirmed Shankar's death and called him a "national treasure."
Labeled "the godfather of world music" by Harrison, Shankar helped millions of classical, jazz and rock lovers discover the centuries-old traditions of Indian music.
"He was legend of legends," Shivkumar Sharma, a noted santoor player who performed with Shankar, told Indian media. "Indian classical was not at all known in the Western world. He was the musician who had that training ... the ability to communicate with the Western audience."
He also pioneered the concept of the rock benefit with the 1971 Concert For Bangladesh. To later generations, he was known as the estranged father of popular American singer Norah Jones.
His last musical performance was with his other daughter, sitarist Anoushka Shankar Wright, on Nov. 4 in Long Beach, California; his foundation said it was to celebrate his 10th decade of creating music. The multiple Grammy winner learned that he had again been nominated for the award the night before his surgery.
"It's one of the biggest losses for the music world," said Kartic Seshadri, a Shankar protege, sitar virtuoso and music professor at the University of California, San Diego. "There's nothing more to be said."
As early as the 1950s, Shankar began collaborating with and teaching some of the greats of Western music, including violinist Menuhin and jazz saxophonist Coltrane. He played well-received shows in concert halls in Europe and the United States, but faced a constant struggle to bridge the musical gap between the West and the East.
Describing an early Shankar tour in 1957, Time magazine said. "U.S. audiences were receptive but occasionally puzzled."
His close relationship with Harrison, the Beatles lead guitarist, shot Shankar to global stardom in the 1960s.
Harrison had grown fascinated with the sitar, a long-necked string instrument that uses a bulbous gourd for its resonating chamber and resembles a giant lute. He played the instrument, with a Western tuning, on the song "Norwegian Wood," but soon sought out Shankar, already a musical icon in India, to teach him to play it properly.
The pair spent weeks together, starting the lessons at Harrison's house in England and then moving to a houseboat in Kashmir and later to California.
Gaining confidence with the complex instrument, Harrison recorded the Indian-inspired song "Love You To" on the Beatles' "Revolver," helping spark the raga-rock phase of 60s music and drawing increasing attention to Shankar and his work.
Shankar's popularity exploded, and he soon found himself playing on bills with some of the top rock musicians of the era. He played a four-hour set at the Monterey Pop Festival and the opening day of Woodstock.
Though the audience for his music had hugely expanded, Shankar, a serious, disciplined traditionalist who had played Carnegie Hall, chafed against the drug use and rebelliousness of the hippie culture.
"I was shocked to see people dressing so flamboyantly. They were all stoned. To me, it was a new world," Shankar told Rolling Stone of the Monterey festival.
While he enjoyed Otis Redding and the Mamas and the Papas at the festival, he was horrified when Hendrix lit his guitar on fire.
"That was too much for me. In our culture, we have such respect for musical instruments, they are like part of God," he said.
In 1971, moved by the plight of millions of refugees fleeing into India to escape the war in Bangladesh, Shankar reached out to Harrison to see what they could do to help.
In what Shankar later described as "one of the most moving and intense musical experiences of the century," the pair organized two benefit concerts at Madison Square Garden that included Eric Clapton, Bob Dylan and Ringo Starr.
The concert, which spawned an album and a film, raised millions of dollars for UNICEF and inspired other rock benefits, including the 1985 Live Aid concert to raise funds for famine relief in Ethiopia and the 2010 Hope For Haiti Now telethon.
Ravindra Shankar Chowdhury was born April 7, 1920, in the Indian city of Varanasi.
At the age of 10, he moved to Paris to join the world famous dance troupe of his brother Uday. Over the next eight years, Shankar traveled with the troupe across Europe, America and Asia, and later credited his early immersion in foreign cultures with making him such an effective ambassador for Indian music.
During one tour, renowned musician Baba Allaudin Khan joined the troupe, took Shankar under his wing and eventually became his teacher through 7 1/2 years of isolated, rigorous study of the sitar.
"Khan told me you have to leave everything else and do one thing properly," Shankar told The Associated Press.
In the 1950s, Shankar began gaining fame throughout India. He held the influential position of music director for All India Radio in New Delhi and wrote the scores for several popular films. He began writing compositions for orchestras, blending clarinets and other foreign instruments into traditional Indian music.
And he became a de facto tutor for Westerners fascinated by India's musical traditions.
He gave lessons to Coltrane, who named his son Ravi in Shankar's honor, and became close friends with Menuhin, recording the acclaimed "West Meets East" album with him. He also collaborated with flutist Jean Pierre Rampal, composer Philip Glass and conductors Andre Previn and Zubin Mehta.
"Any player on any instrument with any ears would be deeply moved by Ravi Shankar. If you love music, it would be impossible not to be," singer Crosby, whose band The Byrds was inspired by Shankar's music, said in the book "The Dawn of Indian Music in the West: Bhairavi."
Shankar's personal life, however, was more complex.
His 1941 marriage to Baba Allaudin Khan's daughter, Annapurna Devi, ended in divorce. Though he had a decades-long relationship with dancer Kamala Shastri that ended in 1981, he had relationships with several other women in the 1970s.
In 1979, he fathered Norah Jones with New York concert promoter Sue Jones, and in 1981, Sukanya Rajan, who played the tanpura at his concerts, gave birth to his daughter Anoushka.
He grew estranged from Sue Jones in the 80s and didn't see Norah for a decade, though they later re-established contact.
He married Rajan in 1989 and trained young Anoushka as his heir on the sitar. In recent years, father and daughter toured the world together.
The statement she and her mother released said, "Although it is a time for sorrow and sadness, it is also a time for all of us to give thanks and to be grateful that we were able to have him as part of our lives."
When Jones shot to stardom and won five Grammy awards in 2003, Anoushka Shankar was nominated for a Grammy of her own.
Shankar himself won three Grammy awards and was nominated for an Oscar for his musical score for the movie "Gandhi." His album "The Living Room Sessions, Part 1" earned him his latest Grammy nomination, for best world music album.
Despite his fame, numerous albums and decades of world tours, Shankar's music remained a riddle to many Western ears.
Shankar was amused after he and colleague Ustad Ali Akbar Khan were greeted with admiring applause when they opened the Concert for Bangladesh by twanging their sitar and sarod for a minute and a half.
"If you like our tuning so much, I hope you will enjoy the playing more," he told the confused crowd, and then launched into his set.
___
Nessman reported from Bangkok. Associated Press writer Julie Watson in San Diego contributed to this report.
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