About Real Estate: Tax refunds to be delayed

More than 50 million homeowners and other taxpayers who itemize their deductions won't get their tax-refund checks until late spring or perhaps even early summer because the Internal Revenue Service must update its forms and computers.

Q. We purchased our first home in March and were looking forward to getting a big tax refund based on our new mortgage-interest and property-tax deductions in January or February. Now we're told that the IRS is going to delay refunds for people like us. Is this true?

A. Sorry, but yes, it's true.

All taxpayers who want to deduct their mortgage-finance charges and related real estate costs must file a lengthy itemized return, rather than the simple 1040-EZ Form that can be completed by those who take the preset standard deduction. However, the Internal Revenue Service recently announced that it won't be able to begin processing returns for the roughly 50 million taxpayers who itemize because the agency has to print new forms and update its computers.

Regular readers of this column know that I'm not a big fan of the IRS. But in fairness, the agency was blindsided by both Congress and President Barack Obama: It had most of its forms and computers ready to begin processing this month, but then had to start all over again after the controversial Bush tax cuts that were slated to expire at the end of 2010 were extended by our elected officials in late December.

The required updates will take several weeks to complete, the IRS says, so it won't be able to begin processing itemized returns until mid or late February. The delay means you'll likely need to wait until April, May or even June to receive your refund check.

Despite the government's holdup, you should file your return as quickly as possible so it will land on top of Uncle Sam's 50-million stack rather than the bottom. The sooner you file, the faster you'll get your refund.

Q. I have heard there are some good bargains to be found among homes that have been foreclosed on by the federal government. Is there an “official” Internet site that the government operates to advertise these properties?

A. Yes. It's www.homesales.gov.

The site features homes that have been foreclosed upon by the U.S. Housing Department, which operates the Federal Housing Administration's loan program, as well as homes that were foreclosed by the Veterans Affairs. It even has farms and other rural properties that were taken back by the federal Agriculture Department.

Q. I was looking at some real estate ads on the Internet and saw a big two-story home that was advertised as a “historic ‘carpet joint' from the 1930s.” What does this mean?

A. A “carpet joint” is the term used about a century ago to describe a gambling parlor where people could make a wager and know they wouldn't be cheated. That was different from the “clip joints” or “sawdust joints,” where the games were often rigged.

The creator of the first carpet joint is widely believed to be Meyer Lansky, a mathematical wizard who figured out that the “odds” — whether in cards, dice or roulette — would always favor the house's owner and therefore no cheating was necessary.

Lansky used his mob connections to create several carpet joints in the Prohibition Era, from Cuba to Miami and New York to Chicago. And in the 1940s, he teamed with Benjamin “Bugsy” Siegel to start the first high-class gambling resort in a small desert town called Las Vegas.

Q. You recently wrote about how homeowners can keep a dog from wandering onto their property. I have a Rottweiler and always keep him in my yard, but a friend of mine says that the cautionary “Beware of Dog” sign on my front fence could set me up for a lawsuit if he bites an intruder. Could it?

A. Maybe so. A handful of judges in dog-bite cases have ruled that the simple act of posting a “Beware of Dog” sign indicates the homeowner knows a dog is dangerous and that the plaintiff who was bitten — whether a postal-service worker or a common burglar — is entitled to monetary damages.

Not surprisingly, a judge is more likely to award money to someone who has been bitten if the dog has taken a chunk out of another person's leg before.

Your letter states you securely keep the dog in your yard. Though he apparently hasn't attacked someone previously, it would be wise to replace your current sign with a less-threatening “Dog on Premises” sign you can find at most hardware and home-improvement stores for less than $10. Doing so will alert the mail-carrier or (unwanted) visitors that you have a pet, without suggesting they need to beware that your dog may bite them.

• For the booklet “Straight Talk About Living Trusts,” or “Free and Clear: Getting the Mortgage Monkey off Your Back,” send $4 and a self-addressed, stamped envelope to David Myers/Trust, P.O. Box 2960, Culver City, CA 90231-2960.

© 2011, Cowles Syndicate Inc.