Do You Need Special Insurance When You Rent a Hall?

Do you need special liability coverage if you rent a hall, room, the town common, etc. for an event such as a wedding, anniversary or birthday party? The answer is NO as long as you have a Homeowners Policy. The standard Homeowners Policy provides liability coverage for various "insured locations", one of which is "part of the premises occasionally rented to the "insured for personal use." It would also be a good idea to have an Umbrella Policy which would give you an extra $1,000,000 in coverage.

Make Your Computer Safe from Identity Thieves

Here are some tips to reduce the chances of compromising your computer:

• Update your computer to include the latest virus protection software and use a firewall
• Avoid downloading files from strangers or clicking on unknown hyperlinks
• Use a secure browser
• Don't store financial information on your laptop
• Avoid the use of an automatic log-in feature
• Delete personal information before you dispose of a computer
• Read website privacy policies
• Avoid phishing, which is a scam that uses spam or pop-up messages to deceive you into disclosing your personal information.

Rental Car Contract Cautions

Have you felt pressured when renting a car to purchase the Collision Damage Waiver? Most rental car contracts include provisions that will invalidate the Collision Damage Waiver (for which you pay a hefty fee) for any of the following reasons:

• if you leave the keys in the car
• if you drive on dirt roads
• if you let anyone other than drivers listed on the contract drive the vehicle (Note: this includes valets!)
• if you drive under the influence of intoxicants

Remember that Collision Damage Waivers are not insurance and therefore are not regulated by insurance departments. You are at the mercy of the rental car companies so be sure to read the contract carefully.

Energy Credits Available on Your Tax Return

This year we have had several taxpayers taking advantage of the Energy Credit on their tax returns. There are several items that can qualify – furnaces, pellet stoves, insulation, windows and doors. When purchases are made, the company you buy them through provides the documentation that states they qualify for the energy credit. In the example of windows, they must be of a certain type to be energy efficient.

A couple items that do not qualify are appliances and siding. Appliances, although they are energy star rated, are not part of the energy credit. They may have rebates from their manufacturers though. In the case of siding – vinyl siding and even insulated vinyl siding do not qualify. Siding provides structural support for the house and therefore is not part of the credit program.

The good news is even higher income earners qualify for the 30% credit this year. The credit is not unlimited, there is a cap on the maximum credit per taxpayer still.

How do I take a home inventory and why?

Would you be able to remember all the possessions you’ve accumulated over the years if they were destroyed by a fire? Having an up-to-date home inventory will help you get your insurance claim settled faster, verify losses for your income tax return and help you purchase the correct amount of insurance.Start by making a list of your possessions, describing each item and noting where you bought it and its make and model. Clip to your list any sales receipts, purchase contracts, and appraisals you have. For clothing, count the items you own by category -- pants, coats, shoes, for example –- making notes about those that are especially valuable. For major appliance and electronic equipment, record their serial numbers usually found on the back or bottom.

Don't be put off! If you are just setting up a household, starting an inventory list can be relatively simple. If you’ve been living in the same house for many years, however, the task of creating a list can be daunting. Still, it’s better to have an incomplete inventory than nothing at all. Start with recent purchases and then try to remember what you can about older possessions.
Big ticket items - Valuable items like jewelry, art work and collectibles may have increased in value since you received them. Check with your agent to make sure that you have adequate insurance for these items. They may need to be insured separately.

Take a picture - Besides the list, you can take pictures of rooms and important individual items. On the back of the photos, note what is shown and where you bought it or the make. Don’t forget things that are in closets or drawers.

Videotape it - Walk through your house or apartment videotaping and describing the contents. Or do the same thing using a tape recorder.

Storing the list, photos and tapes - Regardless of how you do it (written list, photos, videotape or audio tape), keep your inventory along with receipts in your safe deposit box or at a friend's or relative's home. That way you’ll be sure to have something to give your insurance representative if your home is damaged. When you make a significant purchase, add the information to your inventory while the details are fresh in your mind.

Wait patiently for all your tax documents

Before calling for an appointment with your tax advisor or sitting down to work on your own taxes, make sure you have all the documents that you need. At this time, January 25, 2010, some people have all their tax documents, some are still waiting and some people think they have everything. Patience is important. Companies (those you work for, banks, healthcare companies, investment companies, etc) have until January 31st to have documents POSTMARKED. This year January 31st is a Sunday, therefore they have until February 1st. This means that paperwork will still be coming in mailboxes the first week of February. It is important to be sure you have all information when preparing your return.

Major Differences between Federal and Massachusetts Income Taxes

There are a several differences to be aware of this year when preparing your 2009 taxes. The following are three examples of items that may not be taxable on your Federal 1040 tax return but ARE taxable on your Massachusetts tax return:
· The first $2,400 of unemployment benefits in 2009 (Federal you pay on $2,401 to total received, State of MA you pay on ALL benefits received)
· Relief of indebtness or cancellantion of debt
· Teacher deductions

The State of MA is choosing to make all of these items fully taxable and are not matching the Federal rules.