Yay! A tax refund!

It's that time of year when people hold their breath and wait for the accountant to give them the news. Good or bad? Refund or owe the IRS? There are quite a few people this year receiving a hefty tax return because of the $8000 and $6500 tax credits for home-buyers.

Buying a new home usually means buying new furniture. Is that how you're going to spend some - or all - of your refund this year?  New home, new furniture - a great time to create your personal property inventory. You'll have the manufacturer, date and cost listed on the invoices. This information isn't always easy to find or remember, so now is the perfect time to record it. Before you misplace the invoices or receipts.

If you don't want to do it yourself, investing some of your refund money to hire a professional inventory service provider will be money well spent. I can introduce you to a team of professionals if you don't know one.

Tears, sorrow and a sense of loss

February 18, 2010. That date will be embedded in the minds of many Long Island residents, especially those who attended, were employed or are parents of current students who attended South Bay Elementary. February 18 is the day South Bay no longer "was."

A fire brought tears, sorrow and a sense of loss. The fire also brought people scattered throughout the US back together as former classmates posted comments on T.J. Allcot's Facebook page.

T.J. is responsible for the I.T. needs of 3 elementary schools in the district; South Bay was one of them. I'm sure it was a difficult task for him to return to this destruction and take the photos. He is also a free-lance photographer, and I'm guessing this was the most difficult of times.



As an inventory service provider, this fire made me think of what was lost in addition to the building, what contents were damaged or destroyed. The contents that immediately came to mind are desks, computers, tables, chairs and books. But there are so many other items ... musical instruments and sheet music, art supplies, kitchen equipment, science equipment, file cabinets, gym equipment, electronics, appliances ... the list could go on and on. The loss is beyond comprehension.

Disaster does have a way of bringing out the best in people, though, and there are many stories of people stepping up. One is of a West Babylon High School graduate, now attending the University of Miami, who launched a Books for South Bay book drive. Local businesses are getting involved with drop boxes and they collected more than 1,000 books the first day.

Statistics show that fires happen approximately every 60 seconds in the US. Unfortunately, South Bay is now a statistic. I hope that all of these families touched by this loss will learn how important it is to have an inventory of the contents of their business, home or apartment. Having this information prepared will make the claims process less stressful, completed more quickly and recover a maximized settlement.

Donations are flowing in for the purchase of cash, books and supplies. If you'd like to help, more information is available at:  www.booksforsouthbay.com


Photo: T.J. Allcot

Those crazy celebrities

The blog post "Before the kiss at the altar" covers why it's a good idea for newlyweds to create an inventory of their belongings to prepare for a prenuptial agreement. This is serious stuff - especially if you end of getting hurt because you failed to have one created prior to your wedding day. 

But like most situations, there is usually a light side to offset the serious side. And who better to entertain us than the entertainers?

Check out these crazy prenup agreements as noted in the Chicago Sun Times:

• The right to perform random drug tests. Financial penalties were incurred if the results were positive.
• A claim on all frequent-flier miles should the spouse be unfaithful.
• A bonus of $100,000 each time the spouse was unfaithful.
• A husband can not watch more than one football game on Sundays during football season.
• The husband does not to have to go on vacation with his mother-in-law.

I doubt many non-celebrity types will have these type of items, but certainly special furniture passed down for generations, grandma's jewelry, an ancestor's hand-made quilt and, of course, money are some items that indicate the importance of a prenuptial agreement.

Before the kiss at the altar

Anyone who is familiar with the home inventory industry can tell you the main reason for a home or business personal property record of belongings is to ensure disaster preparedness and recovery. There are many other reasons, though, and one is to provide an inventory for the bride and groom's prenuptial agreement.

Prenups are created to protect the couple's individual financials, but are often also drawn up to protect the assets for the children of a previous marriage. Another scenario is the adult children asking their parent to get a prenup prior to his/her 2nd marriage. This helps them rest assured that if this marriage ends either by divorce or death, the children will be able to receive family heirlooms and sentimental items.

Of course, preparing for a wedding is a very busy time. It makes sense to secure an inventory service to document the items. They will be impartial, and can complete the job quickly so you can enjoy your time planning the wedding...and happily ever after.

No insurance, no pod

If you have a need for a Portable On Demand Storage unit due to moving, decluttering, home staging, remodeling, etc., you'll  want to check with your insurance agent about coverage. There are a huge number of insurance companies and even more types of insurance policies, each with their own specific coverages.

If you find you don't have sufficient coverage for placing some or all of your belongings in a POD unit, talk to the pod company. Based on PODS' website, they require proof of insurance, and also provide insurance if you don't have it.

Besides insurance, they also suggest that you inventory all the items being placed in the storage unit. In fact, it's the number one item in their list of Easy Storage Tips.

Good idea!

1st item ... inventory

The invasion of the pod people

"The pod people are coming!" Men, women and children are all affected by this phenomenon. They're running through the streets, jumping up and down, letting other family members know they have arrived. What causes all this excitement? No, it's not the sequel to the movie "The Blob" or another "Body Snatchers." 

These pod people (those who deliver the POD and other portable storage units) provide a great service while they meet a variety of needs. Some instances one might need to rent a POD are:

• If you're remodeling, you might need to put some furniture in storage.
• If you're moving, you'll probably want to declutter, and need a place to store your "extras" while staging your home.
• If you sell your house before finding your next one, it's possible that you'll choose to rent an apartment. Most likely you'll need to store quite a bit of your belongings while living in your (usually smaller) temporary residence.

In the midst of all of the other things you need to do, there is one item that is a must - check to see if your belongings are covered by your homeowners insurance. One policyholder told me that her insurance policy only covers these items for 30 days, then she'd need to find different insurance.

We asked a couple insurance agents what type of coverage their company offers:

Jim Metzler (317-844-4402,  Jim@InsuranceInIndy.com) of State Farm said, "Generally speaking, your personal property is covered for the 'named perils' anywhere in the world.  So if someone has personal property stored in a 'storage unit, or a portable pod' they would have the same coverage extended to that unit that they have in their home. Of course the deductibles and other limitations would still apply."

As we often state, coverages are different. This is evidenced by comparing Jim's statement with the response from Barbara Hook of Sentry Insurance (317-919-1769; Barbara.Hook@Sentry.com). "There is 100 percent contents coverage while on insureds premises and 10 percent coverage when moved off insureds premises such as a storage facility."

These 3 examples show how insurance policies differ. If you're going to be calling the "pod people", be sure to check with your insurance agent to see if and how much coverage you will have for these items.

If you don't think you need an inventory, you don't know Jack

I want to tell you a story about the day the Hartman’s came to our house. I was told earlier in the day that they would be coming and to make them feel welcome. I absolutely love it when people come to visit! I, personally, work part-time from home and my job is very important but I’m always ready to welcome visitors.

I was told that Hartman Inventory comes in to take photos and count things we have in our home like the blender, the washer, the tables and chairs, Dad’s record collection and even the coats in the closet! When the Hartman’s arrived, they came with a camera, pens, papers, a tape measure and what not. At first I was a little confused because I thought they were going to be taking over for me and I was going to be replaced.

My job is very important and I wasn’t ready for retirement! After doing what the Hartman’s do best, I started to understand what they were doing and I realized that they were making my job a thousand times easier. Every day I have the huge task of making sure everything in our home is protected and unharmed. Now, thanks to the Hartman’s, we have an inventory list and if anyone should come in to our home uninvited I can rest assured in knowing that we won’t have to rely on memory of what’s in our home.

They did a great job, but for some reason, they didn’t inventory my belongings. Maybe I should hire them to come back and count the balls, bones and my chew toys. You see, I’m Jack, the radio dog and if I had an inventory I could spend more time on the radio and less time guarding all of my worldly possessions. I wonder if the Hartman’s will work for bones???

Jack Ray is better known as "The XRB Radio Dog" for XRB 1610 Radio Brownsburg.

Jack LOVES the listeners! He also loves working with "Dad" and they thoroughly enjoy each other's company. The only time there are conflicting views is when Jack can't get on the desk and close to the mic, so Dad normally pulls a chair up beside his for Jack.

Jack splits his time between guarding the house and working at the radio station. Now that the Hartman's have relieved the pressure of guarding the house, he can devote more time to radio where he feels his true calling might be.

IRS frowns on taxpayers basing loss on personal recollection

Our guest today is Susie Keaton, CPA. She is a Senior Manager in Somerset's Tax Team. She specializes in estate planning and trusts. During her 17 years of experience as a CPA, she has worked extensively with privately-held businesses in the manufacturing and proefssional service area as well as on tax planning and financial statements for a variety of restaurants and retail establishments.

SKeaton@SomersetCPA.com   .   (317) 472-2124   .    Somerset CPAs

Tragedy strikes. Flood, tornado, fire, theft, vandalism or natural disasters hit your home or business, and you find your personal property is either uninsured or underinsured. Devastating though it may be, did you know that you may be able to claim tax deductions for at least some of your loss?

Improving the ability to support the deduction usually requires a professional valuation of your property before and after the loss or damage. Having detailed records and an inventory of your property and possessions helps to strengthen your claim for a loss. You will calculate your "adjusted basis" on the property - this is your original cost and additional capital improvements for which you have paid during your ownership, less depreciation deductions and any previous casualty write-offs that you have claimed.

If you have insurance coverage, subtract anything you have received or expect to receive from your insurance company. Also subtract $100 from each theft or casualty loss, as the IRS disallows write-offs for the first $100. Lastly, subtract 10% of your AGI (adjusted gross income) for the same year as your loss to reach your final tax deduction.

The process is tricky, but it is good to know that you may not be incurring a total loss. However, many exceptions and complications may apply, and good record keeping will benefit the claimants, as the United States Tax Court emphasizes that it will "bear heavily" against taxpayers basing their loss estimates on personal recollection.

For more information on the tax deductibility of uninsured personal property, please contact me or visit www.irs.gov and download publications 527 and 2194.

Finding your true love

Valentine’s Day takes me back to grade school days when everyone brought the flimsy little paper valentines to give to everyone in class … even the boys who punched you and the girls who snubbed you. But that one day, everyone “felt the love” for everyone else. And that love we proclaimed was just as meaningless as many other statements of love.

I believe the word love is SO overused, evidenced by statements I've heard recently that people …

love filet mignon and lobster,
love watching sunsets in Florida,
love their favorite TV show,
love it when it snows big, beautiful flakes,
love it when there’s no line at the grocery store,
love the smell of a new car … and so on.

We all love, love, love, love, love so many things, we’ve loved the word love to death! Has the true meaning of love lost its luster, its impact and even its depth?

I don’t have the answer to that. But there is one love - in addition to the love I feel for those special people in my life - when the word love is very appropriate. In fact, it's even necessary. That situation is loving what I do for a living. And if you don’t, it’s time to make a change.

Whether you earn minimum wage or 6 figures, work for yourself or someone else, if you love what you do, it isn’t work. Small company, large corporation or entrepreneur, if you don’t love what you do, it’s the wrong thing to be doing. Life is too valuable to spend countless hours a day in misery - or at the very best, just “doing” a job, marking the days until you can retire.

What’s your passion? What’s your purpose? What do you love to do? Discover that, then find a way to get paid for it, and you’ll never work another day in your life! Click here if you don’t know how and you'll create a whole new life to love.

I have completed the Secret Abundance Files and am currently in the International Mastermind Group and an affiliate member. Because of the growth I've achieved personally and professionally through this program, I highly recommend it. The money I receive when you buy the course is a mere fraction of what YOU will receive when you master its principles. The cost is only $197 and comes with a 100% guarantee. (You'll "love" it!)

The shame of it all ... #3

Another fire, another jail sentence, another insurance fraud "winner" on the 2009 Hall of Shame created by the Coalition Against Insurance Fraud. Evidenced by Lewis Drayton's misplaced show of family togetherness, torching a house is not the way to obtain much-needed money. This Miami man burned his family’s home with the hopes of an insurance payout.

When the house mysteriously went down in flames, Drayton quickly became a suspect - his excuses and alibis seemed terribly muddled. He blamed his uncle for setting the fire, but he was in prison at the time.


Drayton finally confessed when investigators found his gas-soaked clothing. His creative explanation was that family members who owned the house were having financial problems. He figured that if he burned down their house, the money from their homeowner policy would help.


In addition to the arson, Drayton's grandmother was in the house at the time. He claimed he didn’t know she was inside the home when he lit the fire, but investigators didn't believe him. Drayton had just visited, and her car was parked out front. Another motive stacking up against Drayton...she had an  $8,000 life insurance policy he stood to collect. Drayton's family members weren’t charged, but Drayton was slapped with life in prison.

Though the 3 stories relayed this week are not fun reading, they help to explain the severity of insurance fraud. There are 4 more stories of the 2009 "winners". However, these are so disgusting I will not include them in my blog. If you have an interest, you can read them here.

I do hope these horror stories made the point that fraud is prevalent no matter what type of insurance. We discuss homeowners insurance and the coverage for the contents of your home and/or business in this blog. These crooks, and their stories, will certainly help everyone understand why insurance companies question so many items on a claim form. Having an inventory of your belongings will make your claim process much easier, less stressful and you'll most likely recover with a higher insurance check. That results from being able to refer to photos and the written report of what you own.

Fight against the crime of insurance fraud - if only by ensuring you'll be able to prove your claim when that time comes.

The shame of it all ... #2

"The shame of it all ... #1 introduced you to an insurance agent who stole $150,000 from his policyholders. On the other side of the desk, this policyholder concocted a plan to steal from his insurance company.

Meet another dishonorable member of the Coalition Against Insurance Fraud's 2009 Hall of Shame, Live Oak, California resident, Juan Jose Luna. His arson plot resulted in a klutzy ending.

According to the Coalition, he simply sloshed gasoline around his home. What he intended to be a carefully managed house fire turned into an explosion. Glass shards and other debris flew throughout the neighborhood, endangering anyone who happened to be nearby.

Fire fighters arrived at what amounted to a small-scale war zone, but they wouldn’t go near for hours until the explosive blaze quieted down.

Luna was found wandering in a daze around the neighborhood. Fingers were badly broken and his clothes smelled of gasoline. He received nine months in jail.

The shame of it all ... #1

Friday's post introduced you to the Insurance Fraud Hall of Shame. It was created by the Coalition Against Insurance Fraud in response to the increasing rise of this "white collar crime" in the U.S.

What kind of crimes? This case shows how policyholders can be victims of crime from a trusted professional.

Pictured here is Michael Howell, an insurance agent from Charlotte, N.C. As the Coalition explains, " He was stealing premiums from clients and not buying them the promised coverage. After several complaints, the state insurance department decided it was time to investigate. Auditor Sallie Rohrbach never returned home after she met with Howell and got too close to the truth.

He never confessed to killing Rohrback, but Howell's wife stated he confessed to her. Howell was convicted of stealing over $150,000 in premiums from hundreds of clients. Of course, that left them dangerously uncovered. He'll serve up to 35 years.

Agents scam policyholders throughout U.S., and it is becoming an increasing problem. Sallie Rohrbach discovered that some of these illegal activities turn from theft into murder.

They're brazen, vicious and just plain klutzy

Each year the Coalition Against Insurance Fraud publishes an "Insurance Fraud Hall of Shame" that includes insurance crooks dishonored (rather than honored) for their "brazen, klutzy or vicious convicted schemers of the year." This year, 7 were convicted for crimes that range from murder to shakedowns to home burner - all for the "prize" of money they anticipated to receive through insurance fraud.

According to the Coalition, insurance fraud is an $80 billion-a-year crime. Unfortunately, its research shows that "consumer tolerance for insurance fraud has risen in recent years. Many view fraud as a harmless prank, but these culprits put a human face on insurance fraud." 

“They remind us that fraud is far more than a victimless prank. People suffer, and sometimes die. Families are broken. Children feel pain and cry. Trusting seniors lose their life savings. Everyone’s insurance premiums rise.”

I'll introduce you to some some of these crooks over the next few days. I encourage you to read their stories. As the Coalition says, "they're stealing from all of us. Get mad. Feel outrage. Even laugh—a little—at the klutziest cons. They remind us the gene pool doesn’t have a lifeguard."


Let me say this one more time...Insurance fraud causes everyone's insurance premiums to rise.

The king is singing our song

Our furry little friend in Pennsylvania claimed on Tuesday that we'll have 6 more weeks of winter. I am glad we don't look to him for financial weather reports, because I - and many others - see signs of the economy coming out of hybernation, so to speak. With spring comes feelings of renewal and growth. Many get busy on their dream of owning their own business. 

The Franchise King's blog post, Another Good Reason To Buy A Franchise has some great insight I would like to share with you.

Joel Libava states that the "need for speed" in our current culture drives the need for a franchise or "business package" (business opportunities, license agreements or a turnkey package like our Hartman Inventory Systems). The speed he talks about is speed to market. He's often asked why anyone would pay a fee to buy a franchise (or other "package") when they could start their business on their own.

Joel's answer: "You probably could. But, how fast could you get to market? How many mistakes will you be making that you could have avoided just by investing in the franchise? How many extra months of economic hardship would you like?"

And now, Joel's question: Do you feel that it's important for you, as a prospective new small business/franchise owner, to leverage all you can from those who have developed a system that can enable you to get to market quickly?(Like a franchise, or a licensing opportunity) Or, would you rather save the cost of a franchise fee, and do it yourself?"

Joel's a pretty smart guy!

Don't be put off!

"Would you be able to remember all the possessions you’ve accumulated over the years if they were destroyed by a fire?" This sounds like me, doesn't it? Well, actually, this comes directly from the Insurance Information Institute website. They also say that, "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.

Creating an inventory can be time consuming and many don't have this information because they just don't have the time, don't know how or have always had the best of intentions, but just can't seem to get to it. The task "can be daunting," says the III website, but they also suggest ... "Don't be put off!" by the task.

That's easy for THEM to say! Wouldn't it be great if there was an inventory service to help you with this much-needed information? If you call one, I'm sure they'll be happy to serve you; they won't put you off!

High value or just old

Do you have some "old stuff" laying around the house? Do you have a lot of collectibles? Or are you a collector just for the love and fun of it? You might be wondering what these items are worth - if anything at all. Often when talking to customers while providing an inventory service, we have conversations about the value of this or that. A recent job piqued our interest to see what a Beatles Album might be worth.

For the greatest value, you'll need the paper sleeves for the 45s and mint condition covers for the albums. Top dollar comes to those which are still sealed.
Unfortunately, according to Continental Records Company, LTD, the value of common, best-selling phonograph records from any year (1901-1999) were pressed in the millions and have no value at all. However, if you have any "rare" records, titles sought after by record collectors, then that could be another story. Thousands of records made in the past 60 years sell for more than $100 each - the vast majority from the 1950s and early 1960s. A few very rare records regularly sell for more than $10,000 each!

I checked on eBay and found 45s starting at 98 cents and albums - with bids - over $100. For example, one item is ... "BEATLES With The UK 1st Press STEREO LP Nr MINT Superb" condition, with a top bid to date of $128.

Check your garage, your basement and your attic - you just might find one of those gems. If not, you'll have had a nice stroll down memory lane...and that's worth something!