Getting out of a Lease
If you've leased a vehicle and regret has set in, there may be a way out. Web sites now exist that help businesses and consumers find people who are willing to take on the remainder of a contract.
These sites charge a fee for helping you make the connection—usually less than $100 to both the buyer and the seller. In addition, you will pay to transfer the vehicle title (this could be as much as $250).
It's estimated that this year 170,000 leases will change hands through these sites. To take a look, go to LeaseTrade.com, LeaseTrader.com or Swapalease.com.
Comparing Mortgage Rates
If you're mortgage shopping, a new online tool makes it much easier. Freeratesearch.com is unique because it gives you local lender rates, which are updated daily.
CCC Loan Repayment Discounts Count as Gain
If you repay a Commodity Credit Corporation loan at a discount this year, you should get a 1099-G from the IRS. This form will report the discount, or market gain. The 1099 will be issued whether the loan was repaid in cash or with CCC certificates.
When a CCC loan is repaid, the difference between the original loan amount and the lesser repayment amount is market gain. This gain is either taken into account as income or as an adjustment to the basis of the commodity.
Farmers who treated the CCC loan as gross income the year received will need to subtract the market gain from the tax basis in the crop that secured the loan. Those who did not make that election will report the market gain as income.
For more details on this, go to www.irs.gov and search for Notice 2007-63, "Repayment of Commodity Credit Corporation Loans."
Check Your Deductible
When your homeowners insurance renews, be sure to check the small print for a change in how that company calculates your deductible.
Many of the major insurance companies are trying to steer customers to a percentage deductible based on home value.
In some areas, especially where wind and water damage is more common, it's more of a shove than a steer. The news that your coverage has changed can show up in a declarations page or in a notice.
With a percentage deductible, you commonly will pay the first 1 to 5% of the repair bill. That percentage can vary with the type of damage and where you live. And it can quickly add up to far more than the flat deductible to which customers have grown accustomed.
On the positive side, adopting a percentage deductible often means a lower annual premium, depending on the market and type of coverage. But it also means your nest egg should be bigger to make sure you can cover the cost of a catastrophe. Consider that with a $250,000 home and a 5% deductible, the portion you might pay before insurance kicks in is $12,500.