Finance Blog number 1

Illinois same-sex couples in civil unions are discovering an unpleasant quirk of their new status. The state of Illinois will make them do their federal taxes twice.

Illinois’ civil union boosts drudgery at tax time, and it probably won’t save same-sex couples any money.

Here’s why: Illinois law requires that same-sex couples in civil unions be treated as if they were married for tax purposes.

The state income tax form requires that they transfer numbers from their federal income tax form. To produce the proper numbers, civil union couples must fill out a federal tax form as either married filing jointly or married filing separately, and submit it with their state forms.

But the federal government doesn’t recognize civil unions. It won’t even take a married tax form from a gay couple that tied the knot in a state recognizing same-sex marriages.

To keep on Uncle Sam’s good side, both partners have to fill out the federal forms again, filing as singles.

Heterosexual married couples often save on their federal taxes by filing as married cash advances pay day loan. That’s mainly because federal taxes are progressive, and the brackets are adjusted to be kinder to those who are married. But the Illinois income tax is flat, with no progressive brackets. Generally speaking, that means no savings on state income taxes.

“I don’t think anybody anticipated this issue,” says lawyer Todd Sivia of Edwardsville, who has a specialty in tax, estate and real estate issues in civil unions.

By act of the Illinois legislature, residents starting last year were able to join in civil unions. Sivia expects that other unexpected issues may pop up in the titling of property, estate planning, and especially in divorce.

“The law on this will be evolving for the next 10 or 15 years,” he says.

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ATHENS

Stocks fell in morning trading Tuesday as investors once again turned their eyes to Greece, where talks dragged on over terms of new spending cuts.

The Dow Jones industrial average lost 44 points to 12,800 shortly after 10 a.m. Eastern. The Standard & Poor’s 500 gave up 5 points to 1,339. The Nasdaq composite fell 10 points to 2,891.

Investors are monitoring talks in Athens over new cost-cutting measures being demanded by Greece’s lenders. They’re worried that the measures may not get passed in time to release the latest installment of emergency loans for the struggling country.

Markets in Europe and Asia also fell.

In the U.S., these stocks were among those making big moves:

_ Yum Brands, which owns Taco Bell and KFC, jumped 4 percent. The company’s income surged 30 percent in the fourth quarter on strong growth overseas and a turnaround in its Pizza Hut business in the U.S.

_ Emerson Electric Co. lost 4 percent after the manufacturing and technology company said its first-quarter net income fell 23 percent as costs rose and sales took a hit from flooding in Thailand.

_ Becton, Dickinson & Co., a medical technology company, fell 4 percent. The company’s income fell 17 percent in the latest quarter on higher costs for raw materials and other expenses. The company also cut its 2012 earnings forecast.

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Lean times call for budgetary triage. But while you should clearly opt for orthodontics before Disneyland, the choice is tougher when it comes to home maintenance.

Should you get a paint job or a new furnace? "There’s no homeowner’s manual that tells you when to do what," says Naperville, Ill., home inspector and structural engineer Mark Waldman.

Emergencies aside, the project that could cause the most damage and expense if left unfixed is the priority. Below, the order in which to tackle your biggest repair needs.

1. Electrical system

Wiring problems claim the No. 1 spot for good reason: They can lead to fires and electrocution. "That trumps everything," says Waldman.

Danger signs: Circuit breakers that trip frequently, lights that dim when you turn on the vacuum or outlets that are loose, hot, or accept only two-prong plugs.

How to check: Spend $300 to $500 for a licensed electrician to open up your main panel to look for trouble and to tighten any loose connections. He’ll also spot-check switches, outlets and light fixtures to ensure that the wiring is in safe working order.

Replacement cost: $4,000 to $10,000 to rewire the house.

Prolong its life: Flip every circuit breaker off and on again once a year to prevent corrosion. Add new circuits ($100 to $500 each) to take the heaviest electrical loads, like window air conditioners, off the old wires.

2. Basement

Structural problems downstairs mean shifting and cracking upstairs — at the very least — so there’s little point in doing other repairs until you’ve fixed the building’s foundation.

Danger signs: Bowed or split beams, rotted posts, piles of sawdust (evidence of wood-boring insects), tiny mud trails (indications of termites), or large cracks in the masonry foundation — especially if the cracks are horizontal, which tends to indicate a bigger problem.

How to check: A contractor will usually take a look free of charge. If he recommends significant repairs, hire a home inspection engineer (find one at nabie.org) to investigate ($350 to $500).

Replacement cost: Major foundation work can cost $3,500 to $8,000; new posts or beams could run $1,200 to $2,500.

Prolong its life: Water is the cause of cracked concrete, rotten timbers and wood-eating pests. So keep your basement dry by making sure the landscape slopes away from the house and maintaining the next two items on the list: the roof and gutters.

3. Roof

Water leaking into your home from above can lead to a host of pricey problems: rot, insects, electrical shorts and mold.

Danger signs: Dampness or stains on ceilings; curling, missing, or broken shingles; smooth spots where the granules have worn away; green algae growth.

How to check: Have a roofer inspect your home. This is typically free, but the pro, of course, is looking for business. So check the company’s reputation at angieslist.com ($5 a month).

Replacement cost: $5,000 to $15,000

Prolong its life: Prune tree limbs so they’re at least 10 feet from the roof to keep squirrels away and to let moisture evaporate quickly after storms. If shingles blow off, replace them immediately, and repair small leaks promptly.

4. Gutters

Your gutters are just as important as the roof. The only reason they’re lower on this list is that if you replace gutters first, they’re likely to get damaged when you reroof later. So if you need a roof too, it’s better to wait — or do both projects at the same time.

Danger signs: Dented or disconnected gutters, pooled water around your home’s foundation, or basement flooding near the downspouts.

How to check: Head outside during a rainstorm and watch the gutters in action, says Caitlin Corkins, stewardship manager for Historic New England, which maintains dozens of historic properties. "The best time to see clogs and overflows is when the system is working," she says.

Replacement cost: $1,500 to $3,000

Prolong its life: Hire a gutter company to clean, check, and repair your gutters ($100 to $200) at least once a year — two or three times if you’re in a wooded area. And have someone clear the eaves of deep snow to prevent icing, which can split open gutters or rip them right off the house.

5. Exterior walls

"People think paint is just a decorative element, so they let it go," says Robert Niemeyer, a Winston-Salem, N.C., handyman, contractor, and electrician. But without a weather-tight seal, water can infiltrate the siding, causing rot and attracting wood-damaging insects. Still, leaks from a vertical surface generally aren’t as quick or lethal as ones from a roof and gutter.

Danger signs: Paint that’s peeling, cracking or blistering

Replacement cost: $4,000 to $10,000; make sure the painters replace loose putty around the window glass and caulking gaps around molding.

Prolong its life: Hire a pro to do touchups every year. Trim foliage so it’s at least a foot from the house, and kill any mildew growth with a bleach-and-water solution.

6. Aging equipment

An old heating or cooling system is costly to operate — and the risk of a breakdown increases with age. But as long as your old furnace, boiler, or AC is operating safely, there’s no rush to upgrade.

Danger signs: The system cycles on and off frequently to hold your thermostat setting; you spot corrosion on the vent pipe; the natural-gas flames are yellow or orange instead of pure blue.

How to check: Get a repair estimate: if it’s more than a third of the replacement cost, spring for a new machine, says Indianapolis plumber Larry Howald.

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Replacement cost: Typically $2,000 to $4,000 for a furnace (forced air); $4,000 to $8,000 for a boiler (hot water); $1,000 to $3,000 for a water heater; $6,000 to $10,000 for an air conditioner.

Prolong its life: Have your systems cleaned and tuned annually, including flushing the water heater to remove sludge, replacing all filters and lubricating any pumps.

MONEY magazine is researching an article on ways to reduce the financial pain of college. We’re looking for families that can talk about new and creative ways that they’re raising cash for college and cutting costs while they’re there. Sound like you? Tell us your story and you might even get your picture in the magazine! E-mail Beth_Braverman@moneymail.com. 

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Tightwad lenders are prolonging the housing bust and killing home sales, says the National Association of Realtors’ chief economist.

“If credit standards just went back to normal, you’d have a 15 to 20 percent more sales right away,” said Lawrence Yun, who spoke to the St. Louis Association of Realtors today.

Yun thinks it’s too hard to get a loan these days. Before the housing boom, and the subprime mortgage debacle, the typical person getting a loan backed by Fannie Mae loan had a credit score of 720. Now it’s 762.

The FHA used to have a typical score of 650. Now it’s 698, says Yun. The FHA is the government agency designed to back loans to people with minor credit blotches and little money for down payments.

It’s not all the bankers fault, Yun acknowledged. They’re scared that Fannie Mae and Freddie Mac will leave them holding a bag of bad mortgages.

Fannie and Freddie buy mortgages from lenders. The mortgage giants hold some of them, and package others into securities for sale to investors. After the housing bust, Fannie and Freddie were holding so many failing mortgages that the government had to nationalize the companies to prevent collapse.

Now Fannie and Freddie are trying to force the banks that originally made those mortgage to buy many of them back, claiming that the banks misrepresented the loans.

That’s frightened lenders, who could face gigantic losses. To stop it from happening again, bankers say they’re insisting that home buyers meet standards even higher than those set by Fannie and Freddie.

That shows up in the default figures. Of loans made in 2009, after the bust, 1.2 percent were in default after 18 months, Yun noted. On those made in 2007, 29 percent went bad.

The dilemma points out the conflicting goals of the government-run mortgage giants. On one hand, they’re supposed to keep mortgages flowing smoothly to aid the economic recovery. On the other, their government managers want to limit losses to the taxpayers. The government expects the Fannie and Freddie bailouts to cost $124 billion through 2014.

Lending could get tougher later this year if federal agencies go ahead with proposals to require borrowers to place 20 percent down on a home to get the best mortgage rates, Yun noted

Stingy lending and high unemployment are blocking what, by other measures, looks like a housing market ripe for a turnaround.

Housing prices are down and mortgages rates are near historic lows. “These are the best affordability conditions ever,” says Yun.

Yun suspects that pent-up demand for homes is building. America adds about 3 million people a year, and housing construction has slowed dramatically. Young people have moved back home, or taken in roommates, and they’ll want their own places. Rents are also rising, making home ownership look better.

As for the future: “Many many metrics point to the fact that it can’t get any worse than this,” said Yun.

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Drug maker AstraZeneca PLC said it will cut another 7,300 jobs as it warned Thursday of a tough year ahead, due to government spending cuts on healthcare and stiff competition, even as it reported a 24 percent increase in 2011 profits.

The Anglo-Swedish company said its full-year profit was $10 billion, up from $8.1 billion a year earlier. The profit advance was helped heavily by a $1.5 billion gain from the sale of its dental subsidiary, Astra Tech.

The company said revenue this year will be hit by government interventions on prices, generic competition and the loss of exclusivity for Seroquel IR, a drug for the treatment of depression, and hypertension drug Atacand in global markets.

Job cuts and restructuring are expected to save $1.6 billion a year by 2014, the company said. AstraZeneca said it would shortly begin consultations with affected employees.

AstraZeneca shares were down 4.2 percent at 2,960 pence just before noon in London.

Generic competition cut revenue by $2 billion in 2011 while price interventions cost another $1 billion, AstraZeneca said.

Despite its concerns over the year ahead, AstraZeneca raised its full-year dividend by 10 percent to $2.80 a share10 percent, and announced a $4.5 billion share buyback program.

The company reported double-digit sales gains for cholesterol drug Crestor, Symbicort for asthma and Seroquel XR freecreditscore.

U.S. revenues were up 5 percent despite the negative impact of health care reform, while revenue in the rest of the world was down 3 percent, including a 15 percent slide in Europe.

AstraZeneca said it was reshaping its research and development activity to focus on neuroscience, employing 40 to 50 scientists in a new Innovative Medicines unit based in Boston in the United States and Cambridge in England.

The company will close its facility in Montreal and lay off some staff in Soedertaelje in Sweden.

“We’ve made an active choice to stay in neuroscience though we will work very differently to share cost, risk and reward with partners,” said Martin Mackay, the company’s president of research and development.

Linda McCulloch, a national officer for Britain’s Unite union, said the cuts were a blow to the research and development base.

“If the company can afford a 10 percent hike in its dividends, then it can afford to retain these roles,” McCulloch said.

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U.K. retail sales rose in December as stores cut prices to lure consumers during the year-end holiday shopping season.

Sales including fuel rose 0.6 percent from November, when they fell a revised 0.5 percent, the Office for National Statistics said today in London. The December increase matched the median forecast of 21 economists in a Bloomberg News survey. From a year earlier, sales were up 2.6 percent.

The gain may not be maintained as U.K. unemployment rises, inflation outpaces wage increases and consumer confidence falls. With global growth cooling and the euro-area crisis damping export demand, concerns are growing that Britain is heading for another recession. A report today indicated Chinese manufacturing shrank for a third month in January.

Officials say a German woman who was listed among the missing from the cruise ship grounding off Italy has been located alive in Germany, bringing the number of people still unaccounted for to 21.

The Grosseto prefect’s office says Gertrud Goergens identified herself to police. Her name was removed from the official list of missing late Wednesday.

Italian authorities released the names of the missing Wednesday as the search for passengers and crew aboard the Costa Concordia was suspended because the ship shifted slightly from its perch on rocks off the Tuscan island of Giglio.

So far eleven bodies have been recovered; 21 people remain unaccounted for.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

ROME (AP) _ The first victim from the Costa Concordia diaster was identified Wednesday _ a 38-year-old violinist from Hungary who had been working as an entertainer on the stricken cruise ship.

Sandor Feher’s body was found inside the wreck, and identified by his mother who traveled to the Italian city of Grosetto, according to Hungary’s foreign ministry.

The $450 million Costa Concordia cruise ship was carrying more than 4,200 passengers and crew when it slammed into a reef Friday off the tiny Italian island of Giglio after the captain made an unauthorized maneuver. The death toll stands at 11, with 22 people still missing.

Italian rescue workers suspended operations Wednesday after the cruise ship shifted slightly on the rocks near the Tuscan coast, creating deep concerns about the safety of divers and firefighters searching for the missing.

Jozsef Balog, a pianist working with Feher on the ship, told the Blikk newspaper that Feher was wearing a lifejacket when he decided to return to his cabin to pack his violin. Feher was last seen on deck en route to the area where he was supposed to board a lifeboat.

According to Balog, Feher helped put lifejackets on several crying children before returning to his cabin.

Italian authorities earlier released the names of 24 passengers and 4 crew still missing, a list that includes six bodies which have been pulled from the ship since Monday. The missing included 13 Germans, six Italians, four French, two Americans and one person each from Hungary, India and Peru.

Instruments attached to the ship detected the movements early Wednesday even though firefighters who spent the night searching the area above water for the missing could not detect any movement.

“As a precautionary measure, we stopped the operations this morning, in order to verify the data we retrieved from our detectors, and understand if there actually was a movement, and if there has been one, how big this was,” said Coast Guard Cmdr. Filippo Marini.

By late afternoon, officials still did not have enough data to reassure them that the ship had stopped resettling. The latest victims were discovered after navy divers exploded holes in the hull of the ship to allow easier access.

Premier Mario Monti offered his first comment on the disaster Wednesday, telling a press conference in London that it “could and should” have been avoided.

Monti also thanked the residents of Giglio, which has a wintertime population of about 900, for opening their doors to the 4,200 refugees who struggled ashore with nothing and were given clothes, food and shelter.

And he acknowledged concerns about the 500,000 gallons of fuel still aboard the ship.

“Everybody can be assured that the Italian authorities are both taking care of the prevention and limitation of any environmental negative implications of this accident, as well as in the first place providing all the necessary help to those affected.”

Passengers were still making their way home, with consistent claims that crew members were ill-prepared to handle an emergency evacuation.

“The crew members had no specialized training _ the security man doubled as the cook and bartender, so obviously they did not know what to do,” passenger Claudia Fehlandt told Chile’s Channel 7 television after being embraced by relatives at Santiago’s airport.

“In fact, the lifeboats, even the ones that did get lowered, they did not know how to lower them and they cut the ropes with axes,” she said.

Much of the focus has been on the cruise ship captain’s actions.

In a dramatic phone conversation released Tuesday, a coast guard official was heard ordering Capt. Francesco Schettino, who had abandoned the ship with his first officers, back on board to oversee the evacuation. But Schettino resisted, saying it was too dark and the ship was tipping dangerously.

“You go on board! Is that clear? Do you hear me?” the Coast Guard officer shouted as the Schettino sat safe in a life raft and frantic passengers struggled to escape after the ship rammed into a reef off the Tuscan coast. “It is an order. Don’t make any more excuses. You have declared ‘Abandon ship.’ Now I am in charge.”

The officer confronted him with an expletive-laced order to get back on board, which has quickly entered the Italian lexicon. The four-word phrase has become a Twitter hashtag and Italian media have shown photos of T-shirts bearing the command.

Schettino, later in the same exchange, denied having abandoned the ship, replying that he had tripped and fell.

“I did not abandon a ship with 100 people on board, the ship suddenly listed and we were thrown into the water,” Schettino said, according to a transcript published Wednesday in the Corriere della Sera paper.

Jailed since the accident, Schettino appeared Tuesday before a judge in Grosseto, where he was questioned for three hours. The judge ordered him held under house arrest _ a decision that federal prosecutors are planning to challenge.

Schettino’s lawyer, Bruno Leporatti, told a news conference Wednesday in Grosetto that house arrest made sense given there was no evidence the captain intended to flee. He cited the fact that the captain coordinated the evacuation from the shore after leaving the ship.

“He never left the scene,” Leporatti said. “There has never been a danger of flight.”

Leporatti added the captain was upset by the accident, contrary to depictions in the Italian media that he did not appear to show regret.

“He is a deeply shaken man, not only for the loss of his ship, which for a captain is a grave thing, but above all for what happened and the loss of human life,” the lawyer said.

Criminal charges including manslaughter and abandoning ship are expected to be filed by prosecutors in coming days. Schettino faces a possible 12 years in prison if convicted of the abandoning ship charge alone.

_____

Barry reported from Milan.

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U.K. factory output prices unexpectedly fell in December for the first time in 18 months as the cost of petroleum products such as gasoline plunged.

The cost of goods at factory gates declined 0.2 percent from November, the Office for National Statistics said today in London. Annual price growth slowed to 4.8 percent, the least in a year. On the month, economists had forecast a 0.1 percent gain in December, according to the median of 17 estimates in a Bloomberg News survey.

Declines in prices for commodities such as oil may ease inflation pressure in the economy as producers and manufacturers pass lower costs onto consumers. The Bank of England, which maintained its bond-purchase target at 275 billion pounds ($422 billion) yesterday, has forecast that consumer-price growth will ease

(Corrects number of electoral votes in next to last paragraph. For more campaign news, see ELECT)

President Barack Obama called yesterday