Myth or fact: The 3.8% tax on real estate is an Internet hoax?
Well, it’s not entirely true, not entirely false. First of all let’s understand its origins. Congress enacted legislation which will take effect at the beginning of 2013 in hopes of generating over $200 billion as part of the health care and Medicare overhaul plans. It imposes a 3.8% tax on some but not all income from interest, dividends, net rental income and capital gains.
Who is impacted? Individuals with adjusted gross income of less than $200,000 can breathe easier, as can couples filing jointly with AGI under $250,000. For the rest of you still reading, there are complicated details which will determine whether you might be affected by the new tax.
It is not our objective to offer tax advice. We are not CPA’s – that is not our expertise. However, we know that we have many clients who could be impacted by this legislation but are not aware of it. Since it does not take effect until January 1, 2013, now may be the time to investigate further. If, for example, a high-income individual is considering selling the old, highly appreciated family homestead, cottage or second home in the next few years, sooner might be better than later. This tax alone is not a reason to sell, but might be considered in the mix with other factors.
CLICK HERE for an article and video prepared for REALTOR Magazine which may help you determine whether additional personal planning is warranted. If you would like to receive a copy of the 11-page brochure referred to in the video, The 3.8% Tax – Real EstateScenarios and Examples prepared by The National Association of Realtors, just get in touch with any Danberry agent.
‘Tis the season for many things, and keeping your home and family safe should be right near the top of the list. What could possibly go wrong when we bring dead trees into our homes, light lots of extra candles, plug dozens of additional cords into our outlets and leave fires burning in the fireplace while we catch a few winks on the couch?
These are tough economic times and we want to keep our fire fighters and police officers employed, just not working. So let’s be sensible about hazards that are common this time of year. If you buy a live tree, make sure it’s fresh and that you give it plenty of water, probably a couple times a day. You’ve probably heard this freshness test before – just bend a needle in half and if it snaps, keep looking.
Now the tree is in the house – make sure your lights are in good working order and you haven’t overloaded circuits. Same rules outdoors, Clark!
OK, I’m off to Gramma’s house now. . . well, not really, but this raises another point. How many times have you read on Facebook or other social media something like “Yippee, we’re off to Florida for a week!” What do you suppose that tells a bad guy who reads that post? It’s a sad commentary, but home burglaries are on the rise during the holidays, sometimes because we announce to the world that “Nobody will be home at our house for several days, so come and get it!” And some of us have perfectly functional alarm systems but don’t even bother to set them. Let’s use common sense!
Finally, it’s a season to entertain – let’s drink responsibly, and keep an eye on each other. Have a wonderful, safe holiday!
When homes go on the market we can find many conflicting opinions from “industry experts” about the degree to which a home should be decorated for the holidays, or even personalized to their family. Some will argue that even family photos are distracting to house hunters, but isn’t that part of what transforms a house into a home? Like anything else, an “optimal amount” should be the goal, not too much, not too little, but just right. A professional Realtor can help sellers determine what is right, and they should be prepared to objectively look through the eyes of the buyer. It’s probably time to package up the beer can collection and Star Trek memorabilia!
So now the question of how much to decorate for the holidays is upon sellers. It’s probably safe to say that owners shouldn’t go over the top like retailers who started putting up Christmas displays on Halloween! At the other end of the spectrum, doesn’t a stark, sterile non-holiday look shout “Bah, Humbug!” at prospective buyers?
If you find yourself debating how much is too much, a middle-of-the-road approach probably makes sense – neither be Clark Griswold nor the Grinch, instead be tasteful, perhaps even elegant. More than a fire in the fireplace can provide a welcoming warmth to a home. Lighting, the right aromas or other inexpensive but effective techniques can accomplish the job. I found what I thought was sensible advice on this topic in REALTOR Magazine Online. Click here to read the article in its entirety. There are probably good tips here even if you’re NOT selling.
What are your thoughts on these topics? We’d love to know how the Toledo Real Estate Market and the surrounding communities feel about this topic, and we encourage you to comment below!
Even if you hate raking in the fall, I’ll bet you would agree that a home site with nice trees has greater appeal than one that appears to be a former corn field.
A recent study by the U.S. Forest Service says the presence of street trees increases home values by an average of $7,000. That’s an awfully broad generalization, but any REALTOR will tell you that they in fact raise property values.
Way back in the 70’s I had a client ask me to provide him with an estimate of the value of a large tree in his front yard that was lost in a storm (he intended to make a claim on his homeowners insurance). That was a difficult exercise, however in the Internet age there are some interesting tools out there. In case you ever wondered about the value of a particular specimen in your yard, the Arbor Day Foundation offers an interesting tool on their site. Go to www.arborday.org/calculator and enter your ZIP code, the name of the tree and its diameter to learn the annual benefits of your tree. While you’re at it, you might want to browse their tree store. It’s an inexpensive way to get your next generation of trees going!
Federal tax credits ranging from $6,500 to $8,000 will no longer be available to buyers unless they have a fully executed real estate contract by midnight Friday, April 30th.
Most BUYERS understand that this is a rare opportunity to have Uncle Sam help them buy a new home, but what about home SELLERS who currently have their homes listed? Consider this: nobody wants to be the proud owners of two mortgage payments, so the natural sequence is to sell first, then buy. But if an owner has the ability to purchase prior to selling, execute a contract this week and specify a closing on or before June 30th (to comply with the tax credit criteria). That allows 2 more months in which to work with your Danberry Real Estate Agent to get the first home sold, and IF you qualify for the $6,500 tax credit (that would otherwise disappear Saturday), sellers can use that to cover the additional costs for a substantial period of time.
Don’t let the time run out! Find Toledo homes for sale with Danberry. If you are buying or selling a home, find an experienced Danberry Real Estate agent to help you have a successful real estate purchase or sale. Our inventory includes Maumee homes, Sylvania homes, Monroe homes and many other fine communities.
In this week’s CEO Podcast-Special Friday Edition! Lynn Fruth shares his warm weather thoughts on getting your home ready to show potential buyers in the rapidly approaching spring market.
Do you have any tips to add to Lynn’s list? Leave a comment for us, we’d love to hear your suggestions!
The fact that you’re reading this means you are on our web site, and that suggests that you are considering either buying or selling a home. You are precisely the ones for whom spring has sprung! The spring real estate market, that is.
Traditionally the market is hottest from spring through early summer, but it’s coming early this year. RIGHT NOW is the time to take the plunge if you intend to buy or sell any time this year, primarily because of the tax credit incentives that will disappear after April 30th. From $6,500 to $8,000 of real money is available not only to first-time buyers, but also to current homeowners who have owned their home for 5 consecutive of the last 8 years. But this rare “bonus” that Uncle Sam is offering disappears on May 1st.
So, Mr. Seller, it’s time to get serious about selling your home in the next couple months. That usually means pricing it to the market rather than the price you hope to get. This is often a bitter pill for sellers to swallow, but it shouldn’t be if you then become a buyer and take advantage of the same discounted pricing on your next home. For those “moving up”, you can actually save more on your next home than you will “lose” on the current one. A rising tide lifts all boats, so if you wait for the value of your home to rise, remember that all others will have risen as well.
And you, Mr. Buyer, what are you waiting for? If you are buying a home over $800,000 or if your income is beyond the upper limits of the credit you may not qualify, but many buyers can grab the tax credit if they act soon, and while interest rates are at historically low levels.
If you need information about the tax credits, that’s what we’re here for! Call or email one of Danberry’s Real Estate professionals soon. If you are unsure of your mortgage qualifications, just click on the “Financing” button above to contact one of our Home Loan Consultants. Enjoy the spring air!
