Investors breathed a sigh of relief Wednesday when Federal Reserve Chair Ben Bernanke told Congress that interest rates are likely to remain low for an extended period. The economy, he said, "still requires support for recovery."

Investors see these low rates as a boon to a recovery of employment and business.

Bernanke’s announcement also took the edge off the news Wednesday that housing sales hit a new low in January.

"Even though nothing he said was particularly new, it was just enough to calm the ruffled feathers that were out there," said Jim McDonald, chief investment strategist at Northern Trust in Chicago.

Source: The Associated Press, Tim Paradis (02/24/2010)

http://www.realtor.org/RMODaily.nsf/pages/News2010022501?OpenDocument

The Chamber of Commerce of Southwest Indiana is launching a free application, titled Discover Southwest Indiana, for use on iPhones and certain iPod models.

Matt Meadors, the chamber president and chief executive officer, said the iPhone app strongly complements the organization’s efforts to communicate the region’s attributes as an excellent location to live and successfully operate a business while providing the chamber with a tool to connect with its members and the broader community in real time.

Designed by Agent511, an Owensboro, Ky.- and Chicago-based mobile technology company, the Discover Southwest Indiana app has a number of featured links, including Southwest Indiana Events, CCSWIN Marketplace, Business Directory, Public Policy on Twitter, Chamber CEO on Twitter, Employment, Become a Member and Contact Us.

The application is available for downloading from the Apple iTunes store.

Meadors said “The Chamber’s professional staff will now be able to continually update the business community and others on the organization’s activities, efforts and impact.

“Our new CCSWIN Marketplace feature will provide our members with a mechanism to drive customers to their businesses by providing them with a dynamic communications tool that they can modify at will to offer coupons, specials and other incentives to the consumer.

Source: http://www.courierpress.com/news/2010/feb/24/Chamber-launch/

The first-time homebuyers' tax credit, along with low interest rates and home prices, may have led to builders feeling a bit better about the market for new, single-family homes.

According to the latest National Association of Home Builders/Wells Fargo Housing Market Index, builder confidence increased to 17 in February, up from the 15 reported through the index in January.

NAHB chairman Bob Jones said that a variety of factors, including the tax credit made available to first-time homebuyers, makes it attractive for consumers to buy homes at this time.

"As a result, builders are slightly more optimistic that the housing recovery is finally beginning to take root," Jones said.

Through the tax credit, first-time homebuyers have an $8,000 incentive to purchase a home, provided they sign a contract for the home by April 30. If they do so, prospective homeowners have until June 30 to complete the purchase.

Along with first-time homebuyers, the tax credit was expanded last year to include people who are purchasing a new permanent residence. Those buyers may qualify for a tax credit of $6,500, provided they sign by April 30.

Though the index did increase in February, it is still far from a level that might indicate more wide-spread confidence in the housing market. To calculate the index, builders are asked to rate both current and expected sales of single-family homes, while also being asked to gauge the amount of traffic they are getting from potential buyers.

A reading on the scale above 50 means that the number of builders who see conditions as "good" outpaced the number who see them as "poor." Though the index is still below 50, the 17 posted in February is the highest mark seen on the index since November 2009.

Source: http://www.credit.com/news/housing-market/2010-02-17/credit-for-first-time-homebuyers-helps-improve-builder-confidence-in-home-sales.html

If you are thinking of moving into a home, building one that you can retire in, or wondering how you can make your elderly parent’s home easier to live in - there are some things to look for to make living as a Senior Adult or a person with a disability easier. Here is a list of 21 proven helpful ideas and tips.

1. Rocker style light switches and lots of ways to turn lights on/off from different locations - commonly known as 2-way or 3-way. Plenty of natural lighting, overhead lights and electrical outlets. Ideally, electrical outlets should be higher off the floor than code says and many more in number, this makes placing of lights easier, cords are less likely to be in the way too. In large spaces, consider in-floor outlets which will eliminate cords and allow for furniture placement options. This also is very handy if you have a small bedroom and someone needs a hospital bed in a living or dining room area.

2. All doors - going inside/outside and doorways into rooms should be at least 36″ for wheelchair, scooter, walker, etc. use. You need to have 18″ wall space free of clutter on the latch side of the doorway (in & out of room) so if you are in a wheelchair you can get close enough to the handle to easily open/close the door. Watch out not to block the space with furniture. Look into pocket doors - you gain footage and ease.

3. Plenty of phone jacks so phones can be throughout the house, as you age, it takes longer to get to the phone. This also is safer in case of emergency situations.

4. Railings up/down stairs both sides, railings in the bathroom for balance getting up/down on the toilet and in/out of showers/tubs.

5. Think about a security system that include an emergency button that has a wrist or neck chain you can wear or put in your pocket. These are very affordable and can even be used outside within many feet of the home.

6. Hang a tennis ball on a string from the ceiling in the garage to hit your windshield at the right parking spot. Makes life easier. Make sure that if you have electric garage door openers, that if the power goes out, a “short” and not physically strong person can open the door to get the car out. Think about an on-demand generator….takes care of so many obstacles and dangers.

7. Have drawers for all of your under cabinets in the kitchen, makes finding things easy, less lifting and actually uses space more efficiently.

8. Washer/Dryer on floor near bedroom as this is where most laundry is generated.

9. Make sure house is one floor, or if two-story, has a staircase extra wide so a stair-chair climber can be installed. They now have home elevators at affordable prices that work like a bank air tube and thus they even work when there is no power coming downstairs.

10. Windows should be able to be cleaned from inside the house, both sides.

11. Really spend time looking at the bathroom and how you can make it usable if you broke your leg, if you had severe arthritis or if you were weak. Tub/shower/faucets/sprayers/slipping/room for equipment and mobility equipment.

12. Door knobs and faucet knobs should be lever type.

13. Maintenance free as much as you can, inside and outside of the home.

14. Is the home located near important resources such as grocery store, doctor/medical, pharmacy, friends, and church/clubs/activities? Consider this in case you can’t drive at night or very far or if you couldn’t drive at all. How far to fire/rescue/police services too.

15. Open space vs. a house with many tiny rooms is best for flexibility as you age. Consider how far you have to walk in the home just to do daily living activities.

16. Think about a doggie or cat door, if appropriate and the animal will be safe. It could go into a fenced in area, they can be closed off at night and they make living much easier.

17. Re-think flooring. Does it have to be washed often, is it slippery, can a wheelchair go on it easily, and is it easy to care for and maintenance.

18. Stairs whether they are inside or outside the house can quickly become large obstacles, consider placement, width & rise, how often need to use, number, etc. for your future being to access areas of your home, getting in/out of your home and being safe.

19. Higher toilets are available and they make it easier to get up/down. There are now combo shower/tubs you walk into and they keep coming down in price too.

20. Having paved driveways and walkways is very helpful for safety, use of devices if necessary and in a snow climate, melt faster. Consider fire escape plans too, we just don’t move as quickly or as easily as we age or when you have limitations.

21. If you can just look at a home through aging eyes or have someone with a disability or who is a Senior Adult look at things for you, you can have a much happier, safer and easier life in your home.
Vocational Rehabilitation, which is in every state and usually located in the Department of Labor or Human Services, has at least one person fully trained in accessibility. (They are responsible for the Americans with Disabilities Act) and would be able to answer questions about your home in the sense of what can be done to make things easier.

Some disability organizations may have a trained person in accommodations/adaptations too, or contact The Practical Expert for Tonia who is well trained in this area and who also lives it.

If you belong to a club, think about having it reviewed for suggestions of making it easier to access. This helps Senior Adults, people with disabilities and even people with a temporary injury (such as a person with a broken leg) to attend things like school graduations, belonging to civic organizations, for volunteering at places and going to many types of activities. Many accommodations/adaptations have no cost or little cost that can make a huge impact in people utilizing the place. Example, # of handicap spots at a school and how far to walk to the gym, etc.

Keeping your eye on how life can be more accessible and safer for senior adults, elderly parents and people with injuries or disabilities, means it is easier and safer for everyone, not just for today but for the future too.

Tonia Boterf - The Practical Expert(TM) is there to lend you a hand with some of life’s tougher challenges. Through coaching, articles, books, and other resources, we provide you with the information and the tools you need to help you live your life fully. Try a free trial coaching session today!

Distributed by Content Crooner

Brought to you by one of our Real Estate Authors from http://www.realestatelocalexperts.com, a multi-authored blog about real estate.

Keeping track of the cost of capital improvements to your home can really pay off on your tax return when it comes time to sell.

It’s no secret that finishing your basement will increase your home’s value. What you may not know is the money you spend on this type of so-called capital improvement could also help lower your tax bill when you sell your house.

Tax rules let you add capital improvement expenses to the cost basis of your home. Why is that a big deal? Because a higher cost basis lowers the total profit—capital gain, in IRS-speak—you’re required to pay taxes on.

The tax break doesn’t come into play for everyone. Most homeowners are exempted from paying taxes on the first $250,000 of profit for single filers ($500,000 for joint filers). If you move frequently, maybe it’s not worth the effort to track capital improvement expenses. But if you plan to live in your house a long time or make lots of upgrades, saving receipts is a smart move.

What counts as a capital improvement?

While you may consider all the work you do to your home an improvement, the IRS looks at things differently. A rule of thumb: A capital improvement increases your home’s value, while a non-eligible repair just returns something to its original condition. According to the IRS, capital improvements have to last for more than one year and add value to your home, prolong its life, or adapt it to new uses.

Capital improvements can include everything from a new bathroom or deck to a new water heater or furnace. Page 9 of IRS Publication 523 has a list of eligible improvements. There are limitations. The improvements must still be evident when you sell. So if you put in wall-to-wall carpeting 10 years ago and then replaced it with hardwood floors five years ago, you can’t count the carpeting as a capital improvement. Repairs, like painting your house or fixing sagging gutters, don’t count. The IRS describes repairs as things that are done to maintain a home’s good condition without adding value or prolonging its life.

There can be a fine line between a capital improvement and a repair, says Erik Lammert, tax research specialist at the National Association of Tax Professionals. For instance, if you replace a few shingles on your roof, it’s a repair. If you replace the entire roof, it’s a capital improvement. Same goes for windows. If you replace a broken window pane, repair. Put in a new window, capital improvement. One exception: If your home is damaged in a fire or natural disaster, everything you do to restore your home to its pre-loss condition counts as a capital improvement.

How capital improvements affect your gain

To figure out how improvements affect your tax bill, you first have to know your cost basis. The cost basis is the amount of money you spent to buy or build your home including all the costs you paid at the closing: fees to lawyers, survey charges, transfer taxes, and home inspection, to name a few. You should be able to find all those costs on the settlement statement you received at your closing.

Next, you’ll need to account for any subsequent capital improvements you made to your home. Let’s say you bought your home for $200,000 including all closing costs. That’s the initial cost basis. You then spent $25,000 to remodel your kitchen. Add those together and you get an adjusted cost basis of $225,000.

Now, suppose you’ve lived in your home as your main residence for at least two out of the last five years. Any profit you make on the sale will be taxed as a long-term capital gain. You sell your home for $475,000. That means you have a capital gain of $250,000 (the $475,000 sale price minus the $225,000 cost basis). You’re single, so you get an automatic exemption for the $250,000 profit. End of story.

Here’s where it gets interesting. Had you not factored in the money you spent on the kitchen remodel, you’d be facing a tax bill for that $25,000 gain that exceeded the automatic exemption. By keeping receipts and adjusting your basis, you’ve saved about $3,750 in taxes (based on the current 15% tax rate on capital gains). Well worth taking an hour a month to organize your home-improvement receipts, don’t you think?

Watch out for these basis-busters

Some situations can lower your basis, thus increasing your risk of facing a tax bill when you sell. Consult a tax advisor. One common one: If you take depreciation on a home office, you have to subtract those deductions from your basis. Any depreciation taken if you rented your house works the same way. You also have to subtract subsidies from utility companies for making energy-related home improvements or energy-efficiency tax credits you’ve received. If you bought your home using the federal tax credit for first-time homebuyers, you’ll have to deduct that from your basis too, says Mark Steber, chief tax officer at Jackson Hewitt Tax Services.

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’s currently remodeling her home—and aiming to make a profit on it one day.

Source: http://www.houselogic.com/articles/tax-breaks-capital-improvements-your-home/

EVANSVILLE — As international efforts continue to heal, feed and shelter victims of the earthquake that killed more than 200,000 Haitians and displaced millions more, an Evansville couple are helping supply clean drinking water.

Five days after the Jan. 12 earthquake struck, Joe and Jenny Smith flew from St. Louis to work with Potters For Peace, an organization that teaches locals to make, assemble and distribute inexpensive ceramic filters that provide families with safe drinking water now and for years to come.

Even before the earthquake, illnesses and death from dirty water plagued Haiti, one of the world's poorest countries.

The situation is critical now and will become worse, the Smiths said. A volunteer physician told them, "For all we can do for these people now, they'll still die if they don't have clean water."

The couple recently returned after three weeks working in Haiti and the Dominican Republic with Potters For Peace, a nonprofit organization based in Brisbee, Ariz.

Joe Smith took leave from Oakland City University, where he has taught ceramics for 31 years. He spent his time outside Santiago, Dominican Republic, working 13-hour days with local potters in an established ceramic filter operation to expand operations and increase production.

Jenny Smith, a former international aid worker who most recently operated an art gallery in Evansville, moved into a massive tent city in Jacmel, Haiti. She helped distribute the clay filters made 150 miles away at the factory in Santiago where her husband was working.

Since the quake, an estimated 2,000 clay water filters have gotten to Haitians, more are waiting to be shipped and the Santiago operation has double production, promising an increased flow of filters moving into Haiti in the future, said Jenny Smith.

Raising funds

The couple plan to return this summer to help set up one or two new local operations to make clay purification systems in Haiti. While they're home, they'll work to raise money for the factories, estimated to cost about $60,000 each.

That's nothing compared to what it will take to build water systems for the cities, suburbs and villages that eventually will rise from Haiti's rubble. The ceramic filters do offer an immediate solution for families.

The filter, developed in Guatemala in the early 1980s, looks something like an oversized terra cotta flower pot without drain holes. It's made from clay mixed with prescribed amounts of sawdust, rice husks or other suitable combustible materials available locally.

When fired, the combustible material burns out, leaving a porous vessel that allows water to pass through while filtering out particles. A coating of colloidal silver painted on the inside kills bacteria.

How effective are they? The filters "effectively eliminate 99.88 percent of most waterborne disease agents," according to Potters For Peace's Web site, www.pottersforpeace.org.

Fitted with a plastic lid, the fired clay unit slips like an oversized coffee filter into a large manufactured plastic storage bucket equipped with a spigot at the bottom. Each can hold several gallons of water, which filters through at a rate of up to 21/2 quarts per hour.

"If you fill it up at night, by the morning you'll have enough water ready for a family," Jenny Smith said. "We used one in Haiti, in the tent camp and we never got sick. As a matter of fact, I thought the water tasted better than what we drink (from the tap) here in Evansville."

Depending on the region and local resources, the entire unit costs between $15 and $25, and replacement filters typically run between $4 and $6, according to Potters For Peace.

The Smiths first worked with Potters For Peace in 1999, when the organization helped set up ceramic filter operations in Managua, Nicaragua, as that city struggled to recover from Hurricane Mitch.

Since then, the organization has helped set up operations throughout Central America and in areas around the world lacking clean water.

The factories often are open-air structures consisting of mixing areas, clay presses (using concrete molds and hand-pumped hydraulic truck jacks), drying racks and kilns.

Locals own and operate them as businesses, providing not only clean water, but also employment for the potters and others needed to make and distribute them.

Jenny Smith said she's heard stories about looting in neighborhoods and violence at food distribution points, "but I never felt endangered and I never saw any violence," she said. "I think about how the Haitians I saw helped us and helped each other."

She doesn't blame starving people for being angry.

"There were warehouses full of water and food and it was not being distributed, and there were a lot of communities not getting what they needed," she said.

"I found it very frustrating. Once, when I held a child, I remember thinking, 'This child may not be living in two weeks.'"

Source: http://www.courierpress.com/news/2010/feb/14/couple-helping-supply-clean-water-to-haiti/

• Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.
• Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.
• Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
• Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.

EVANSVILLE — In addition to Tri-State residents donating more than $100,000, area businesses are giving however they can to Haiti earthquake relief efforts.

"There have been a number of businesses that have stepped up," said Greg Waite of the American Red Cross for Southwestern Indiana.

Within days of the earthquake, Mead Johnson Nutrition shipped $100,000 worth of baby formula to Haiti. The company, whose corporate offices are in Evansville, also has operations in the Dominican Republic.

"Having a neighboring business was so beneficial because we were able to act so quickly," said Susan Wedeking, a spokeswoman for Mead Johnson. "We will provide additional assistance as we can. Each disaster is different, but oftentimes we are able to provide help."

The company is also one of several in the area that is matching their employees' donations to relief efforts.

Other companies doing so include Vectren, Duke Energy, Toyota and several banks.

AmeriQual, which specializes in the production of shelf-stable food products that don't require cooking, is ramping up production to replace all of its reserves it had in stock to help during a disaster.

Tim Brauer, the company's president, said it has distributed close to a million meals and another million to the American Red Cross.

"That's a lot of meals moving around that are hopefully getting to the people who need them," he said. "We maintain in the range of a million to 2 million meals in storage just for events like this."

Designed to assist in disasters, the American Red Cross has been a leading organization with relief efforts in Haiti.

The national organization's focus has been on three areas:

n Sending food to those in need, including 3 million pre-packaged meals and funding for World Food Program efforts that will enable them to feed up to 1 million people for a month.

- Providing clean drinking water.

- Distributing shelter items, such as blankets, tarps, sleeping mats and tents to homeless families.

Locally, Waite said, the Tri-State has donated more than $100,000 to the agency to help with relief efforts.

"That's from people who've walked in through a chapter door or made a donation online," he said. "(The community) has been amazing, and they're asking, 'What else can we do?'"

Waite said a key part is making sure the community is up to date on efforts in Haiti, "so when they see those images, they're reassured" about where their donation is going.

Source: http://www.courierpress.com/news/2010/jan/31/tri-state-businesses-provide-relief/

The city of Evansville enters 2010 looking to continue to manage the recession. Mayor Jonathan Weinzapfel says the area's unemployment rate has consistently remained under the state average, currently by a full two points. He says companies like Mead Johnson and Berry Plastics have been adding jobs and that several construction projects are underway, led by the new $125 million downtown arena.

Weinzapfel says the city also made the decision to bring management of local water and sewer utilities back to local government, which is expected to save an estimated $14 million over the next five years.

Source: Inside INdiana Business http://www.insideindianabusiness.com/newsitem.asp?ID=39894