LOCAL NEWS: FBI says it has identified the thieves in Gardner heist

In a stunning development, federal law enforcement officials said today they had identified the people who stole $500 million worth of masterworks from the Isabella Stewart Gardner Museum in 1990.

The officials also said they had tracked the paintings’ movements after they were sold, but they did not know where they are now and were appealing to the public for their help.

“The FBI believes with a high degree of confidence in the years after the theft the art was transported to Connecticut and the Philadelphia region and some of the art was taken to Philly where it was offered for sale by those responsible for the theft. With that confidence, we have identified the thieves, who are members of a criminal organization with a base in the mid-Atlantic states and New England,” Richard Deslauriers, the special agent in charge of the Boston office of the FBI said in a statement.

Deslauriers said that after the attempted sale of the paintings about a decade ago, the FBI did not know where the paintings had gone.

“Unfortunately, we haven’t identified where they are right now and that’s why we are coming to the public for their help,” Geoff Kelly, the special agent who spearheaded the investigation in the Boston office, said in a statement.

The FBI said that it was continuing its search both in and beyond the Connecticut and Philadelphia areas and launching a public awareness campaign that would include outreach through both billboards and the Internet.

“With this announcement, we want to widen the aperture of awareness of this crime to the reach of the American public and others around the world,” said Deslauriers.

Law enforcement officials have been puzzled for years by the 1990 heist.

The Globe recently reported that investigators, after years of frustration, are focusing on evidence that former museum night watchman Richard Abath may have been in on the crime — or may know more about it than he has admitted.

http://bostonglobe.com/metro/2013/03/18/feds-reveal-investigative-developments-publicity-campaign-gardner-heist-probe/fdplwk1vSL1SPtaTdAZVIJ/story.html

TAXES: 6 Home Deduction Traps and How to Avoid Them

Get an “A” on your Schedule A Form: Dodge these tax deduction pitfalls to save time, money, and an IRS investigation.

Trap #1: Line 6 - real estate taxes

Your monthly mortgage payment often includes money for a tax escrow, from which the lender pays your local real estate taxes.

The money you send the bank may be more than what the bank pays for your taxes, says Julian Block, a tax attorney and author of Julian Block’s Home Seller’s Guide to Tax Savings. That will lead you to putting the wrong number on Schedule A.

Example:

• Your monthly payment to the lender: $2,000 for mortgage + $500 escrow for taxes

• Your annual property tax bill: $5,500

Now do the math:

• Your bank received $6,000 for real estate taxes, but only paid $5,500. It may keep the extra $500 to apply to the next tax bill or refund it to you at some point, but meanwhile, you’re making a mistake if you enter $6,000 on Schedule A.

• Instead, take the number from Form 1098—which your bank sends you each year—that shows the actual taxes paid.

Trap #2: Line 6 - tax calculations for recent buyers and sellers

If you bought or sold a home in the middle of 2012, figuring out what to put on line 6 of your Schedule A Form is tricky.

Don’t simply enter the number from your property tax bill on line 6 as you would if you owned the house the whole year. If you bought or sold a house in midyear, you should instead use the property tax amount listed on your HUD-1 closing statement, says Phil Marti, a retired IRS official.

Here’s why: Generally, depending on the local tax cycle, either the seller gives the buyer money to pay the taxes when they come due or, if the seller has already paid taxes, the buyer reimburses the seller at closing. Those taxes are deductible that year, but won’t be reflected on your property tax bill.

Trap #3: Line 10 - properly deducting points

You can deduct points paid on a refinance, but not all at once, says David Sands, a CPA with Buchbinder Tunick & Co LLP. Rather, you deduct them over the life of your loan. So if you paid $1,000 in points for a 10-year refinance, you’re entitled to deduct only $100 per year on your Schedule A Form.

Trap #4: Line 10 - HELOC limits

If you took out a home equity line of credit (HELOC), you can generally deduct the interest on it only up to $100,000 of debt each year, says Matthew Lender, a CPA with EisnerLubin LLP.

For example, if you have a HELOC for $200,000, the bank will send you Form 1098 for interest paid on

RETIREMENT: All-retiree housing isn’t for everyone

There seems to be a rule that if retirees move to a communal environment, it must consist only of other retirees. But some are challenging that notion by choosing intergenerational cohousing, living side by side with people of all ages, including singles, childless couples, and families with children.

Residents of cohousing make major decisions collectively, but these are not communes. Group meals and activities are optional, and members maintain separate residences.

“You have a choice between privacy and community,’’ said Charles Durrett, 57, an architect who has designed more than 50 cohousing communities.

Some communities that live by cohousing principles are for retirees only, and that is the best choice for some, Durrett said. Children can be raucous, and sometimes people want to spend their time in peace with like-minded friends and a glass of wine.


But other s prefer the energy and variety of cohousing, he said. The arrangement has value for younger residents, too: Children learn to respect their elders and ‘‘everybody’s seeing all of life,’’ Durrett said. That includes ‘‘what the end game looks like,’’ he said.

Cohousing is a way to avoid the isolation and depression that older people can face when they live alone, Durrett said. Cohousing residents are also more likely to check up on and care for their neighbors, he said.

Meg Palley, 95, lives in a four-bedroom house in Nevada City she shares with two caregivers, who receive reduced rent in return for services like driving and shopping. She said she chose

TAXES: How to Get Your PMI Deduction

Deducting PMI premiums can save you hundreds of dollars. Here’s what you need to know to get the deduction.

Do You Qualify for the Deduction?

Just because you have PMI premiums doesn’t mean you can deduct them. Here’s what qualifies you:

• You got your loan in 2007 or later.

• Your mortgage is for your primary residence or a second home that’s not a rental property.

• Your adjusted gross income is no more than $109,000. The deduction begins to phase out once your adjusted gross income (AGI) exceeds $100,000 ($50,000 for married filing separately) and disappears entirely at an AGI of more than $109,000 ($54,500 for married filing separately).

How to File for the PMI Deduction

You’ll have to itemize and use Schedule A.

If you make no more than $100,000 a year, put the amount of insurance premiums you paid last year on Line 13. Don’t include pre-paid premiums for this year. You’re doing taxes based on last year’s income and expenses, so this year’s premiums don’t count even if you pre-paid them last year. (More about deducting prepaid and upfront mortgage insurance here.)

If your adjusted gross income is between $100,000 and $109,000, use the worksheet included with Schedule A to figure out how much you get to deduct.

How Much Can You Save?

It depends on how much you’re paying. A good rule of thumb industry experts use: You'll pay $50 a month in premiums for every $100,000 of financing. Keep in mind, though, that the amount of the down payment, type of loan, and lender requirements can all affect your actual cost.

For example, if you put 5% down on a $200,000 house, you’ll pay monthly PMI premiums of about $125. Increase your down payment to 10%, and you’ll pay less than $80 a month.

So how does this affect your tax bill? Let’s say your adjusted gross income is $100,000. You bought a $200,000 house in 2012, put down 5%, and paid $1,500 in PMI premiums ($125 times 12 months). The deduction for PMI cuts your taxable income by $1,500. If you’re in the 15% tax bracket, you save $225 on your tax bill ($1,500 x 15%), and if you are in the 25% tax bracket, you save $375 ($1,500 x 25%).

The Best Savings of All: Canceling Your PMI

Although the tax deduction is nice — at least while it lasts — getting rid of PMI altogether is even nicer.

You can cancel your PMI when you have 20% equity in your home. Lenders are required to automatically cancel it once you have 22% equity. If you think you’re at that threshold, find out more about canceling your PMI.

Get more tax tips with our complete Home Owner’s Guide to Taxes.

This article provides general information about tax laws and consequences, but shouldn’t be relied on as tax or legal advice applicable to particular transactions or circumstances. Consult a tax pro for such advice; tax laws may vary by jurisdiction.

BUYING A HOME: How to Assess the Real Cost of a Fixer-Upper House

1. Decide what you can do yourself

TV remodeling shows make home improvement work look like a snap. In the real world, attempting a difficult remodeling job that you don’t know how to do will take longer than you think and can lead to less-than-professional results that won’t increase the value of your fixer-upper house. 

• Do you really have the skills to do it? Some tasks, like stripping wallpaper and painting, are relatively easy. Others, like electrical work, can be dangerous when done by amateurs.

• Do you really have the time and desire to do it? Can you take time off work to renovate your fixer-upper house? If not, will you be stressed out by living in a work zone for months while you complete projects on the weekends?

2. Price the cost of repairs and remodeling before you make an offer

• Get your contractor into the house to do a walk-through, so he can give you a written cost estimate on the tasks he’s going to do.

• If you’re doing the work yourself, price the supplies.

• Either way, tack on 10% to 20% to cover unforeseen problems that often arise with a fixer-upper house.

3. Check permit costs

• Ask local officials if the work you’re going to do requires a permit and how much that permit costs. Doing work without a permit may save money, but it'll cause problems when you resell your home.

• Decide if you want to get the permits yourself or have the contractor arrange for them. Getting permits can be time-consuming and frustrating. Inspectors may force you to do additional work, or change the way you want to do a project, before they give you the permit.

• Factor the time and aggravation of permits into your plans.

4. Doublecheck pricing on structural work

If your fixer-upper home needs major structural work, hire a structural engineer for $500 to $700 to inspect the home before you put in an offer so you can be confident you’ve uncovered and