Smart Grid technology on way to Maryland
From the Cumberland Times News:
Public Service Commission must OK meter installation
tiffany march
Capital News Service
— WASHINGTON — Imagine you left town for a weekend vacation, accidentally leaving the air conditioning set on high. No sweat — you can adjust it with an application on your iPhone.
Or imagine getting to work and realizing you forgot to run the dishwasher. No problem, because another application can start your appliances remotely.
These scenarios may sound far out, but they are almost reality for Maryland residents. Thanks to $10.5 billion in stimulus funds from the federal government, the first stage of “Smart Grid” technology will come to your home as soon as this year.
The idea behind Smart Grid is that each house will have a “Smart Meter” sending and receiving real-time information from utility companies using a radio frequency. So when your home loses power, you won’t have to call the utility to complain because the Smart Meter will have already sent out an alert.
“The meter on your house really belongs in the Smithsonian,” said Stephen Sunderhauf, who works for PHI, the company that owns Pepco and Delmarva Power.
But some Maryland groups urge caution, arguing that the government hasn’t had time to create grid standards yet, the technology is untested, huge start-up costs will ultimately fall on consumers and private information about our daily routines could be misused.
Despite these issues, modern electronic devices and renewable energy sources like wind and solar power need a Smart Grid. The electric grid now in use is based on technology from the early 1900s, Sunderhauf said. “The sooner we bring (Smart Grid technology) to our Maryland marketplace, the better off our consumers will be. Embrace the future.”
Baltimore Gas and Electric Co. successfully completed a Smart Grid pilot program last year, and Pepco has already begun installing Smart Meters in Delaware, with Maryland to follow soon.
Both companies need the Maryland Public Service Commission’s approval before they can install Smart Meters for all customers or use federal stimulus grants for Smart Grid — $200 million for BGE and $168 million for Pepco.
If the commission approves BGE’s plan, it will start installing 2 million Smart Meters as soon as this year, finishing by 2014. Pepco has a similar timeline.
Smart Grid advocates say consumers will save money by being able to determine times when energy costs are highest, and choosing to run energy-guzzling appliances during off-peak hours.
Initially, customers should be able to track their energy use after a day’s lag time through a Web site. Eventually, customers will have in-home displays with instant information about their energy use and cost.
“Smart Grid technology will absolutely offer consumers options to decrease their rates,” said Maryland Energy Administration spokeswoman Christina Twomey. The Energy Administration, she said, supports BGE’s Smart Grid plan, with some recommendations.
The administration would like to see customers who are uncomfortable with technology retain regular rates, instead of instituting mandatory “time-of-use” rates, when energy costs more during peak daytime hours, Twomey said.
Another problem is that Smart Grid lacks standards, which must be determined by the National Institute of Standards and Technology, said Theresa Czarski, deputy counsel for the Office of People’s Counsel in Baltimore.
“We really felt we were rushed into this (BGE) case because of the federal money,” Czarski said, adding that major Smart Grid start-up costs will ultimately fall on consumers.
Czarski is also concerned about privacy.
“(Smart Grid) opens a portal into people’s houses,” which can be hacked into, she said.
The Future of Privacy Forum also discussed privacy issues in a November 2009 report, suggesting utility companies may be tempted to sell information about customers’ energy use.
If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350
Tax Deductions for Vacation Homes - Deep Creek Lake & Garrett County
Tax Deductions for Vacation Homes
March 12, 2010 by cloeffler
HouseLogic: NAR’s new consumer Web site, offers everything home owners need to increase, maintain and protect the value of their home.
Tax deductions for vacation homes vary greatly depending on how much you use the home and whether you rent it out. You can rent out a vacation home for as many as 14 days per year without paying taxes on your rental income.
A vacation home offers a break from the daily grind, but it can also offer a break from taxes. The IRS allows most owners to lower taxable income by taking tax deductions for vacation homes. What’s deductible depends on a number of factors, especially how often you visit and whether you allow renters.
Don’t limit your notion of a vacation home to a beach cottage or a mountain cabin. Even RVs and boats can count, as long as there are sleeping, cooking, and bathroom facilities. Tax deductions for vacation homes are complex, so consult a tax adviser.
Is your vacation home a vacation home?
If you bought your vacation home exclusively for personal enjoyment, you can generally deduct your mortgage interest and real estate taxes, as you would on a primary residence. Use Schedule A to take the deductions.
The IRS even allows you to rent out your vacation home for up to 14 days a year without paying taxes on the rental income. You might be able to deduct any uninsured casualty losses too, though you can’t write off rental-related expenses. If the home is rented for more than 14 days, you must claim the income.
Now, if you own what you consider a vacation home but never visit it, or only rent it out, other tax rules apply. Without personal use the home is considered an investment or rental property by the IRS. Time spent checking in on a house or making repairs doesn’t count as personal use.
Tax deductions for rental owners
As an exclusive rental property, you can deduct numerous expenses including taxes, insurance, mortgage interest, utilities, housekeeping, and repairs. Even towels and sheets are deductible. Use Schedule E. You can also write off depreciation, the value lost due to the wear and tear a home experiences over time.
Treat the rental property like a business, says Mark Steber, chief tax officer at Jackson Hewitt Tax Services. Keep detailed records and maintain a separate checking account. Figure you’ll spend a couple of hours a week, on average, over the course of the year managing the property.
To maximize deductions you need to be actively involved in the rental property. That means performing such duties as approving new tenants and coming up with rental terms. You also need to own at least 10% of the property. See IRS Publication 527 for details.
If your adjusted gross income is $100,000 or less you can deduct from your taxable income up to $25,000 in rental losses—that is, the difference between your rental income and your rental expenses. The deduction gradually phases out between an AGI of $100,000 and $150,000. You may be able to carry forward excess losses to future years, or use losses to offset taxable gains when you sell.
Expenses can add up. HOA fees (average: $420), routine maintenance costs ($360), and six months’ worth of utilities ($1,100) alone total nearly $2,000. By deducting $2,000 from taxable income of $100,000, a married couple filing jointly would cut their tax bill by $488.
Mixed use of a vacation home
The tax picture gets more complicated when in the same year you make personal use of your vacation home and rent it out for more than 14 days. Remember, rental income is tax-free only if you rent for 14 days or fewer.
The key to maximizing deductions is keeping annual personal use of your vacation home to fewer than 15 days or 10% of the total rental days, whichever is greater. In that case the vacation home can be treated as a rental, meaning you get the same generous deductions. To avoid going over the 10% limit, essentially you shouldn’t use your vacation home more than one day for every 10 days you rent it.
Make personal use of your vacation home for more than 14 days (or more than 10% of the total rental days), however, and your deductions may be limited. If your rental income is less than your rental expenses, for example, you can’t use the loss to offset other sources of income. There’s a worksheet that determines which expenses you can carry over to the following year.
Another big blow: The IRS requires you to divide expenses between personal use and rental use. Let’s say you have a vacation home you personally use for 25 days and rent for 75 days. That’s 100 total days of use. You can only write off 75% of the expenses as rental expenses—75 rental days divided by 100 total days of use works out to 75%. Some of the personal expenses, such as mortgage interest and real estate taxes, may be deductible on Schedule A.
IRS closes tax loophole
A popular strategy used by owners of vacation homes to avoid paying capital gains on a sale was to convert a vacation home into a primary residence. This was accomplished by living in the home for two years out of the previous five before selling. By doing so a gain on the sale of up to $250,000 for single filers ($500,000 for married filing jointly) was tax-free.
The IRS hasn’t done away with the cap-gains exclusion, but it is closing the loophole for vacation homes. Starting in 2009, you have to pay regular cap-gains taxes on the portion of the gain that’s equivalent to the time you used the home as a vacation home after 2008.
Let’s say on Jan. 1, 2010, you move into a vacation home you bought on Jan. 1, 2002. Two years later you qualify for the cap-gains exclusion and decide to sell. You’d pay regular capital gains on 10% of the gain because in 2009 the home was a vacation home subject to the new IRS rules. The other nine years—2002 to 2008, when the old rules applied, and 2010 to Jan. 1, 2012, when the home was used as a primary residence—qualify for the exclusion.
This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.
Donna Fuscaldo has written about personal finance for more than 10 years at the Wall Street Journal, Dow Jones Newswires, and Fox Business. She one day hopes to own a vacation home in the Catskills of New York.
http://www.houselogic.com/articles/tax-deductions-vacation-homes/
If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350
Maple Syrup & buckwheat cakes at Herrington Manor
We just finished up an all you can eat buckwheat (and pancake) breakfast at Herrington Manor State Park. We got to see exactly how to harvest fresh Garrett County maple syrup from start to finish. There were maple trees, sap buckets, a boiling vat on a wood stove and then the finished product – warm, sticky and sweet (amazingly sweet) Garrett County maple syrup. I didn’t realize this until reading the article in the Washington Post about our maple syrup, but the everyday table syrup we use is about 2% maple syrup and then watered down. What we had today was 100% maple syrup – and you could tell the difference. Local Boy Scout Troop 1 was there volunteering, cooking the food and serving It was surprisingly crowded, too, so I am sure they were pleased with the turnout. I have a photo gallery below of some of the photos.
If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350
NAR Working to Extend Rural Development Loan Program 03/12/2010
NAR Working to Extend Rural Development Loan Program 03/12/2010
The National Association of REALTORS® (NAR) started lobbying Congressional budget committees asking them to extend Section 502 loans guaranteed by the Rural Housing Service (RHS). RHS recently announced that funding for its loan guarantees could be exhausted by the end of April. Click below to a see a sample of NAR’s letters to Congress, and revisit this site for updates on this effort.
If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350
House of Delegates Passes MAR Septic Legislation
Jay’s note: This is great legislation for us here in Garrett County, as very few areas are serviced by public sewer.
House of Delegates Passes MAR Septic Legislation
HB 62 will ensure that property owners living in Maryland’s Critical Areas will receive a grant to fund the cost difference between a conventional septic system and one using nitrogen reduction technology when replacing a failing septic system. The legislation will override the current means test now being used by the Maryland Department of Environment. The legislation take effect on October 1, 2010.
The Senate will hold a hearing on the legislation on March 23.
If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350
Maryland Housing Market Questions Answered - call Jay Ferguson!
I am always happy to discuss the Garrett County & Deep Creek Lake real estate market with you, should you ever have any questions. Think of me as your real estate consultant – there is never any obligation and I am happy to offer any real estate advice to you, your friends, your family or your co-workers. I am a licensed Maryland REALTOR and have 10 years of experience in our local market.
4 steps to lowering your property taxes
Jay’s notes: I am happy to try and assist you with the process of lowering your taxes here in Garrett County. In fact, I plan on doing it myself this year, as I highly doubt that my house is worth what the assessed value is. To top it off, there is a house in my neighborhood that is almost the same size and condition, and they pay HALF of the taxes that I am paying! I could not believe it. So, I spoke to the folks at the assessment office and they were very friendly and helpful. Our tax year begins July 1 and runs through June 30 every year – that’s just the way Garrett County is – and thats what your assessment is based on. I was told that when I receive my new assessment (should be in January of next year) that I will be able to file an appeal. Until that point, there is not much you can do – expect gather some information about comparable properties that have sold. That’s where I can help you immediately by providing you FREE comparables (properties that have sold similar to yours) from the MLS. Give me a call or drop me an email and I would be happy to help!
High property taxes? Here are 4 steps to lowering them
Appealing a real estate assessment may save you hundreds of dollars
By Candice Cholap • Associated Press • March 20, 2010
NEW YORK — Home prices are still far below their highs just a few years ago. One bittersweet perk for homeowners is that property taxes should be lower, too.
If your home’s value has tumbled, you may be able to slash hundreds of dollars from your tax bill by appealing its assessed value. That’s because local governments generally don’t reassess homes every year, meaning the values they use to levy property taxes may be outdated.
Just how much you could save depends on your real estate market. But nationally, home prices are still about 30 percent below their peak in 2006.
The appeal process varies depending on your area, but here’s a guide on the steps you’ll need to take:
Track down the paperwork
Property taxes are assessed on a local level. Most homes are only assessed by one jurisdiction, whether it’s a town, city or county. But if your home has more than one assessment — for example, if you live in a village within a town — you need to file appeals with both jurisdictions because they operate independently.
You can start by searching for your assessor’s Web site, where you’ll find the form to file an appeal. It probably will be a page or two and ask for basic information and your home’s parcel or lot number. The latter should be listed on your mortgage or property tax bill, or you might be able to look it up on the assessor’s Web site.
Deadlines for appealing an assessment in a particular year are often in the spring, so get moving if you’re seriously considering it.
Filing fees vary; it could be free, or it may cost a flat fee of $15 or so.
Understand the process
You need to understand two important technicalities, but they’re simple to grasp and shouldn’t daunt you.
The first is your home’s assessed value. This is the basis for your property tax, and it isn’t always the same as your home’s market value.
Some local governments assess homes at a fraction of their market value. For example, if the assessment rate is 60 percent, the assessed value of a $1million home would be $600,000.
If your home’s value has tumbled, you may be able to slash hundreds of dollars from your tax bill by appealing its assessed value. That’s because local governments generally don’t reassess homes every year, meaning the values they use to levy property taxes may be outdated.
Just how much you could save depends on your real estate market. But nationally, home prices are still about 30 percent below their peak in 2006.
The appeal process varies depending on your area, but here’s a guide on the steps you’ll need to take:
Track down the paperwork
Property taxes are assessed on a local level. Most homes are only assessed by one jurisdiction, whether it’s a town, city or county. But if your home has more than one assessment — for example, if you live in a village within a town — you need to file appeals with both jurisdictions because they operate independently.
You can start by searching for your assessor’s Web site, where you’ll find the form to file an appeal. It probably will be a page or two and ask for basic information and your home’s parcel or lot number. The latter should be listed on your mortgage or property tax bill, or you might be able to look it up on the assessor’s Web site.
Deadlines for appealing an assessment in a particular year are often in the spring, so get moving if you’re seriously considering it.
Filing fees vary; it could be free, or it may cost a flat fee of $15 or so.
Understand the process
You need to understand two important technicalities, but they’re simple to grasp and shouldn’t daunt you.
The first is your home’s assessed value. This is the basis for your property tax, and it isn’t always the same as your home’s market value.
Some local governments assess homes at a fraction of their market value. For example, if the assessment rate is 60 percent, the assessed value of a $1million home would be $600,000.
The appeal form will likely ask for assessed values, so you may have to do a little math once you’ve collected market values on comparable homes.
Assessment rates can change from year to year, too, depending on the area’s funding needs.
It’s also important to know the date your area’s assessments are based on. In New Jersey, for example, homes are assessed by local governments Oct. 1 of the previous tax year. So if you’re requesting a new assessment for 2010, you’d need to research home prices from about Oct. 1, 2009.
If you’re having trouble finding either the assessment rate or date, don’t be afraid to call your assessor’s office to ask.
Collect your evidence
Most of your work will be collecting the evidence to make your case.
You can do this several ways. The first is to go to your assessor’s office, which might keep a database of sales in the area. It’s best to get actual sale prices, but listed prices should provide a good baseline if there haven’t been any recent sales in your area.
Collect data on three to five properties. Make sure they’re similar in size and style and were built around the same time. Point out why the houses are comparable to yours, and note any significant differences that could affect values, such as proximity to a busy street.
Also note if your home is near any foreclosed or vacant homes, which are known to lower property value.
It’s important to show you did your homework, but there’s no need to submit a 50-page appeal, said David Wilkes, an attorney who specializes in property taxes and assessments at Huff Wilkes & Cavallara in Tarrytown, N.Y.
Given all of the information online now, most people should be able to put together an appeal on their own. But if you’re truly daunted, you can pay for a new appraisal. Just be sure the appraiser you hire is licensed. Many real estate brokers offer appraisal services but may not have official licenses. On the high end, Wilkes said an appraisal might cost about $500.
Follow up on your appeal
Check on the status of your appeal a few weeks after you file, but don’t panic if you don’t hear back right away. Local assessor offices are often swamped with appeals and may take months to get back to you.
If your appeal is denied, you’re usually given a time window to request a hearing in tax court.
This isn’t as intimid
ating as it sounds, and you probably still won’t need a lawyer, Wilkes said. It may just be that you have to state your case more clearly to the review board.
“It’s another bite at the apple,” he said.
In the meantime, continue paying your property tax bills. If you ultimately win your case, any money you overpaid should be refunded.
If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350
GC Homeowners' Tax Credit Program Is Now "Enhanced"
GC Homeowners’ Tax Credit Program Is Now “Enhanced”
Mar. 18, 2010
The Board of Garrett County Commissioners has approved an enhancement to the current County Supplemental Homeowners’ Tax Credit Program. The current program benefits those taxpayers who are age 65 or older and have lived in Garrett County for 10 years or longer.
The applicable county credit is calculated at 25 percent of the State Homeowners’ Tax Credit. The enhancement to the current County Supplemental Homeowners’ Tax Credit Program will benefit those taxpayers who are age 65 or older, have lived in Garrett County for 10 years or longer, and who have combined gross household income of $25,000 or less.
To apply for the county program, taxpayers are required to file a Homeowners’ Property Tax Credit Application (Form HTC-60) with the state of Maryland. Applications for 2010 are available and can be obtained by accessing the state Department of Assessments and Taxation web site at dat.state.md.us, at the state Department of Assessments and Taxation office located in the Garrett County courthouse, or by calling the local state Department of Assessments and Taxation office at 301-334-1950 and requesting that an application be sent by U.S. mail.
The application filing deadline for 2010 is Sept. 1. Garrett County administrator Monty Pagenhart or the Garrett County Department of Financial Services staff is available to answer questions regarding the County Supplemental Homeowners’ Tax Credit Program by calling 301-334-8970.
If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350
Commissioners Ask Residents To "Take 10" In 2010
Commissioners Ask Residents To “Take 10” In 2010
Mar. 18, 2010
As the 2010 Census draws near, Garrett County government is partnering with the U.S. Census Bureau to encourage everyone to complete and mail back their census forms.
“Participation is important to the future our community,” said a county spokesperson.
As a result, the Board of Garrett County Commissioners is issuing a challenge to everyone living in the county to “take 10” and beat the area’s mail participation rate from the 2000 Census.
“Taking 10 minutes to complete and mail a census form is the easiest and most efficient method of participate in the 2010 Census,” said the spokesperson. “For each census form returned by mail, the Census Bureau saves $60 to $70, or about $85 million for every 1 percent increase in mail participation.”
As mandated by the U.S. Constitution, everyone in the United States must be counted in the census. This includes people of all ages, races, and ethnic groups – citizens and noncitizens.
Conducted every 10 years, the census is more than just a population count.
“The 2010 Census will present a new portrait of America, showing us how our nation has changed in the past decade, and helping to determine what our communities need for the next 10 years,” the spokesperson said.
Census data provide numerous benefits to the people of this nation and the places we live. For example:
•Census data are used to reapportion seats in Congress and ensure proper district representation in state and local governments.
•Every year, the federal government distributes more than $400 billion to tribal, state, and local governments based on census data.
•Information from the census helps determine locations for childcare and senior centers, new roads, hospitals, schools, and community centers.
If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350
Work Progressing On Garrett County Trade/Exhibit Hall
Work Progressing On Garrett County Trade/Exhibit Hall
Mar. 18, 2010
Now that spring-like weather is finally here, work can continue on the 30,000-square-foot Trade Center/Exhibit Hall at the Garrett County Fairgrounds in McHenry. A ground-breaking ceremony was held in September, signaling the formal start of the construction.
Following a lengthy planning and bid process, Callas Construction of Hagerstown was awarded the contract valued at $2.9 million.
The building is designed to accommodate a wide range of events, including commercial exhibits, entertainment acts, school and civic related functions, weddings, fundraisers, auctions, and more.
The building includes office space and a commercial kitchen in addition to a platform for performing groups. The facility is projected to accommodate seating for 4,000+ people.
Shelley Missimer of Lakeside Architecture Inc. is serving as the principal designer for the project.
Read the rest of the article here.
If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350
