 Biblical Principles, Inc. is a non-profit, Christ directed organization that assists churches and pastors in leading people back to God's Plan for sound stewardship. Through seminars, workshops, sermons and other biblical methods, the ministry is providing Christians with a way to breakfree of the financial bondage that enslaves many of them.
The Worker, Retiree and Employer Recovery Act of 2008 (WRER) was signed into law on Dec. 23, 2008. While it contains other provisions for defined contribution plans, such as 403(b)(9) retirement income accounts, WRER's biggest impact is essentially to eliminate required minimum distributions (RMDs).
ECONOMIC STIMULUS PLAN FEATURES
Homeowner Affordability & Stability Plan
The Homeowner Affordability and Stability Plan include two initiatives to help struggling homeowners. One is a refinancing program for homeowners with less than 20% equity in their homes, or who owe more than their home is worth. The second program attempts to lower monthly payments for homeowners at risk of losing their home. In addition, the plan includes a third initiative to support low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac. Many of the plan's details are still being worked out and will not be announced until March 4, here is an overview of the plan's main components.
- Refinancing Initiative
- Under current rules, those families who own less than 20% equity in their homes have a difficult time refinancing and taking advantage of the historically low interest rates. Therefore, the refinancing initiative in the new plan provides refinancing help for homeowners with less than 20% equity in their homes or who owe more than their home is worth. This initiative is open to homeowners who have conforming loans which are guaranteed by Fannie Mae and Freddie Mac, and who owe up to 5% more than their home is worth.
According to the plan, "credit-worthy" or "responsible" homeowners can refinance their mortgage into a 30- or 15-year, fixed-rate loan based on current market rates. The refinanced loan, however, cannot include prepayment penalties or balloon payments. For many families, this low-cost refinancing may help reduce their mortgage payments by up to thousands of dollars per year.
As with the rest of the plan, details about this initiative will be released at a future date-including what, if any, credit score requirements will be included.
- Stability Initiative
- This initiative aims at providing help to individual families as well as entire neighborhoods by helping reduce foreclosures and stabilize home prices. It is intended to help homeowners who are struggling to afford their mortgage payments, but cannot sell their homes because prices have fallen significantly.
The goal of this initiative is simple: "reduce the amount homeowners owe per month to sustainable levels." To accomplish this, lenders are encouraged to lower homeowners' payments to 31 percent of their income by lowering their interest rate to as low as 2% or by extending the terms of the loan. In addition, lenders can also lower the principal owed by the borrower, with Treasury sharing in the costs.
Homeowners who are current on their mortgages but are struggling can still apply for this program. As such, this is one of the few programs designed to help homeowners who may face delinquency soon, but are current at the moment.
Since the focus of this initiative is on helping families and neighborhoods, investment properties do not qualify. This initiative also includes a number of additional elements and incentives that benefit homeowners and lenders alike, including:
- Incentives to Help Borrowers Stay Current: To provide an extra incentive for borrowers to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.
- Reaching Borrowers Early: To keep lenders focused on reaching borrowers who are trying their best to stay current on their mortgages, an incentive payment of $500 will be paid to servicers, and an incentive payment of $1,500 will be paid to mortgage holders, if they modify at-risk loans before the borrower falls behind.
- Supporting Low Mortgage Rates
- As part of the Homeowner Affordability and Stability Plan, the Treasury Department is increasing its funding commitment to Fannie Mae and Freddie Mac to ensure the strength and security of the mortgage market and to help maintain mortgage affordability. This portion of the plan will use using funds already authorized in 2008 by Congress for this purpose. The increased funding will enable Fannie Mae and Freddie Mac to carry out ambitious efforts to ensure mortgage affordability for responsible homeowners, and provide forward-looking confidence in the mortgage market.
- Again, the government plans to unveil the final details of the plan on March 4, 2009. For now, you can download a sheet of common Questions and Answers produced by the government at:
www.treas.gov/initiatives/eesa/homeowner-affordability-plan/ConsumerQA.pdf
First time Home Buyer Benefits
- Tax Credit
First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction - a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.
- Tax Credit versus Tax Deduction
It's important to remember that the $8,000 tax credit is just that. a tax credit. The benefit of a tax credit is that it's a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a homebuyer were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, they would owe nothing.
Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a homebuyer is liable for $4,000 in income tax, he can offset that $4,000 with half of the tax credit. and still receive a check for the remaining $4,000!
- Phase-out Examples
According to the plan, the tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. To break down what this phase-out means to homebuyers who are over those amounts, the National Association of Homebuilders (NAHB) offers the following examples:
- Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase-out to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.
- Example 2: Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.
Remember, these are general examples. You should always consult your tax advisor for information relating to your specific circumstances.
- Homes that Qualify
The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying homes include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify.
- Higher Loan Amounts
More good news - there is an extension on the additional tier of conforming loan amounts which had been first established in 2008. These tiers of home loans are those greater than $417,000, and with a maximum that depends on the area, but is not greater than $729,750. These loans will again be eligible for rates that are slightly higher than conforming loan rates, but less expensive than the standard "jumbo" loan rates.
- Additional Housing-Related Provisions
- Tax Incentives to Spur Energy Savings and Green Jobs - This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
- Landmark Energy Savings - This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.
- Repairing Public Housing and Making Key Energy Efficiency Retrofits to HUD-Assisted Housing - This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.
- Expanding Housing Assistance - This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.
- More Help for Homeowners in the Future
Another thing to keep an eye on in the coming weeks is President Obama's plan to help struggling borrowers before they are faced with a default on their mortgage. According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.
While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That's because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.
Recent Church Reference from FBC Helen GA
My name is Jim Holmes and I am the pastor of Helen First Baptist Church in Helen, Georgia. Recently, Bill Prince of Biblical Principles Inc. conducted a focus on biblical stewardship in our church. He spoke during our Sunday School hour, preached, taught in the afternoon and then consulted with sixteen families throughout the week. He will return in a few weeks to continue his consultation with at least six more families.
I understand he and the GBC are currently working on a collaborative agreement to make his material available to a greater number of pastors and churches. Let me give you my complete endorsement for Bill and his ministry. It was biblical, simple, powerful and liberating. He is a tireless servant that wants to serve Christ through serving His Body. I have no doubt that our Lord has raised him up in this unique and needed ministry to our churches. In times such as now, strong leadership in the area of biblical stewardship falls upon thirsty souls. Our people were blessed to have him.
Please feel free to call me if you have any questions. My numbers are: 706 878-2089 Church office
706 338-9661 Cell
Individual Reference
Mr. Prince, I just wanted to put into print my “Thank You” for the counseling and sermons our Church received last week of January 2009. I am the lady who spoke up during your Budget Workshop on Sunday afternoon, giving the perspective of a widow whose Financial Manager is now in Heaven, feeling the lack within myself to go forward successfully in Stewardship. I learned what I needed to do to get out of the feeling of Lethargy that has been the last effects of Grief carried far too long. Your down-to-earth presentation and easy listening style made the content seem more attainable. On Sunday, 1st February, I took the first step on your Plan called “Six Biblical Steps to Financial Freedom” ~ with the change in me being the word “CHEERFULLY” ~ as I confess I had never before felt cheerful in giving so I knew this was the evidence of Holy Spirit Guidance in place. Though I had tried tithing in the past, I never succeeded in being consistent because my understanding of these principles was incomplete back then. You have succeeded in more fully opening my eyes to the Mind of Christ and I thank you ~ I have passed your wisdom and information now to my two grown children who are making the same mistakes that I made, but hopefully they will be touched as I have been by your Ministry. God bless and keep you in this important Work. Kathy Cherry
Billie Katherine Cherry ("Kathy")
University Library Specialist
Dec 4, 2008
IRS Announces 2009 Standard Mileage Rates
WASHINGTON — The Internal Revenue Service today issued the 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on January 1, 2009, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 55 cents per mile for business miles driven
- 24 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than rates for the second half of 2008 that were raised by a special adjustment mid-year in response to a spike in gasoline prices. The rate for charitable purposes is set by law and is unchanged from 2008.
The business mileage rate was 50.5 cents in the first half of 2008 and 58.5 cents in the second half. The medical and moving rate was 19 cents in the first half and 27 cents in the second half.
The mileage rates for 2009 reflect generally higher transportation costs compared to a year ago, but the rates also factor in the recent reversal of rising gasoline prices. While gasoline is a significant factor in the mileage rate, other fixed and variable costs, such as depreciation, enter the calculation.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
News Story
Here’s a Helpful News Tip
REMEMBER: Cell Phone Numbers Go Public today
REMINDER.... all cell phone numbers are being released to telemarketing companies tomorrow and you will start to receive sale calls.
.... YOU WILL BE CHARGED FOR THESE CALLS
To prevent this, call the following number from your cell phone: 888-382-1222.
It is the National DO NOT CALL list. It will only take a minute of your time. It blocks your number for five (5) years. You must call from the cell phone number you want to have blocked. You cannot call from a different phone number.
HELP OTHERS BY PASSING THIS ON TO ALL YOUR FRIENDS.. It takes about 20 seconds.
Bill Prince
IRS Increases Mileage Rates through Dec. 31, 2008 |
The Internal Revenue Service announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008, as set forth in Rev. Proc. 2007-70.
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.
The new six-month rate for computing deductible medical or moving expenses will also increase by eight (8) cents to 27 cents a mile, up from 19 cents for the first six months of 2008. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.
Mileage Rate Changes |
Purpose |
Rates 1/1 through 6/30/08 |
Rates 7/1 through 12/31/08 |
Business |
50.5 |
58.5 |
Medical/Moving |
19 |
27 |
Charitable |
14 |
14 |
SAMPLE ACCOUNTABLE REIMBURSEMENT POLICY*
In accordance with IRS regulations 1.162-17 and 1.274-5T(f), the ________________ Baptist Church hereby establishes a reimbursement policy for all ministers and employees with the following terms and conditions:
1. The church will reimburse only reasonable ministry-related business expenses incurred by a minister or employee. Subject to budget limitations, such expenses will include:
- Business use of automobile, up to the current IRS standard mileage rate;
- Business travel away from home: transportation, lodging and meals on overnight trips;
- Convention conference and workshop expenses;
- Educational expenses, if otherwise qualified as an itemized deduction and within IRS limits;
- Subscriptions, books, and tapes, if related to ministry or employment;
- Entertainment/hospitality expenses, if business connection requirement is met.
- Cell phone charges if cell phone is required by the church and not used for personal use by the minister or employee.
2. The minister or employee will account for each allowable expense in writing at least every 60 days. Documentation will include the amount, date, place, business purpose and business relationship of each expense. A receipt will accompany the documentation.
3. The minister or employee will return advances that exceed actual business expenses within 120 days.
Under this accountable arrangement the church will not report reimbursed amounts as taxable income on the minister’s or employee’s Form W-2. The minister or employee should not report reimbursed amounts as income on Form 1040.
Biblical Principles Exceeds 4000 Hours in Consultation
During 2007, the amount of private session consultation time Biblical Principles, Inc has provided to God’s people through churches went past 4000 hours. The actual session where the milestone was achieved involved ministry at DaySpring Church in Evans, Georgia, a suburb of Augusta. The pastor is Jackie Perkins. So far as we are aware there is no other ministry that has delivered the amount of private session counseling to help move God’s people from financial bondage towards financial freedom as has Biblical Principles.
Biblical Principles, Inc. Executive Minister Serves as Officer of Evangelist Conferences
For the fiscal year 2007-2008 Bill Prince has been elected at the national level to be Parliamentarian of the Conference of Southern Baptist Evangelists, COSBE. At the same time, for the fiscal year 2008 and 2009, Bill Prince id serving on the state level as President of the Conference of Georgia Baptist Evangelists, COGBE. In both places of service Bill has the goal to promote the Office of the Evangelist, Ephesians 2:11.
3000 Hours of Faith Based Financial Fine Tuning
During August in a meeting at Haven Baptist Church, in Kansas City, Kansas, Bill Prince completed hour number 3000 of what we started out calling Biblical Budget Counseling, now labled Faith Based Financial Fine Tuning. Typically this is a two hour consultation guided to accomplish the goals of the clients which are established at the beginning of each session. People give many reasons for scheduling and participating in a session. It is surely doubtless that many marriages have been strengthened and some saved from disaster by these sessions. God's people come to learn about many aspects of life reaching beyond the financial issues that people struggle to master.
Probably the greatest of all successes that could be named as a result of these four thousand hours of life changing ministry are the twenty nine souls that have prayed to receive Christ as a result of coming to a financial meeting. In every session every client is required to present a pre-written faith statement or present their salvation testimony orally in the session. The faith must be in order before we can get the finances right. Praise God and give all glory to Him who can save. Please rejoice with us we celebrate the completion of 3000 hours in the counseling room with God's people.
21st Century Consumers
Buy more stuff: The typical American spends about 3 hours a week hunting and gathering in stores.
Median Income: $40,818 per household, in 53% of married couples both spouses work.
Debt: $63,939 on a mortgage, $7,564 on an average of 12 credit cards per household, $19,813 on new cars, and $14,410 on used cars
(read more)
What's the only thing less fun than being disinherited?
Answer: Acknowledging your own mortality and preparing a will. A crop of new tools, from LastWillShop.com to Quicken WillMaker Plus, promise to help do the task without the expense and hassle of using a lawyer.
Research from the Wall Street Journals says that the products are useful for people who want to leave their estate in its entirety to an heir, with no strings attached.
- More complex wills should probably be handled by a live lawyer.
- You should also head straight to an attorney if you're looking for a way to put conditions on an inheritance.
- If you insist on being a do-it-yourselfer with your legal documents, here are some sites to explore:
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