Best of Advice: Our Home Has Cracked Walls, What Recourse Do We Have? Real Estate News | Feb 22, 2013 | By: Deidre Woollard Each week we feature some of the many questions that come in to the REALTOR®.com Q&A section. Today’s question comes from Richmond, VA: Q: We found foundation problems found after buying a foreclosure house, what recourse do we have? We bought a foreclosure house two years ago. And now we found that there are cracks shown on the wall. Also, there was a big crack outside of the attached garage which we did not notice before buying. Can I ask the bank for any compensation or do I have to eat it up since it was a foreclosure? A: Foreclosure or not, the repairs are your responsibility. The only recourse you might have would be against the home inspector, but it’s doubtful that a judge would hold even that person liable. It’s been at least two years since the home was inspected and a lot can happen to a house in that amount of time. – Stacey A: If you go back to your original contract addendum from the bank you will see that you have no recourse with them as to the foundation problems because you purchased the property “as is.” In fact – it was probably stated in more than one way on the addendum. Because the bank has no knowledge of the property’s history or condition – you assume all of the risk. That’s why the prices on foreclosures are so low. I’m sure you had a home inspection performed for your information on the property before you purchased it and you might want to review the report again to see if the inspector noted any foundation problems at that time. The cracks may be more recent since we have had some interesting weather and a earthquake in recent years. The discounted price is still low enough to compensate you for the issues you are facing now. Consult with a foundation contractor such as Stable Foundations in Richmond to see if the cracks are even serious enough to require attention at this time. I believe they may give you a free consultation or charge a very low inspection fee. It would be worth it for your piece of mind now – and for your information should you ever need to sell the property in the future. I buy and sell foreclosures all the time as they are a great bargain in this market – but you have to be very careful as there can be defects. Buyers need to hire an agent to help them assess the risks and perform a thorough inspection of the property before they enter an offer – one with a background in construction and building would be preferred. In the end, you can’t always leave it to the home inspector to find everything that might be a future issue with the house as they – like everything else – are always changing. I hope it turns out that the cracks are merely from settling and not anything that you need to be worried about. – Wayne Hare, REALTOR®, Investors Realty of Virginia
Real estate agent Farmington Valley – Best of Q&A: We Are Self Employed, Will We Be Able To Get A Mortgage? – Real estate broker Farmington Valley
Best of Q&A: We Are Self Employed, Will We Be Able To Get A Mortgage? Real Estate News | Feb 20, 2013 | By: Deidre Woollard | 1 Response Prev | Next 5 Each week we feature some of the many questions that come in to the REALTOR®.com Q&A section. Today’s question comes from Baytown, TX: Q: Will I be able to get a mortgage being self employed? My husband and I have been self employed for three years and we both have credit scores in the 640-660 range. We have been paying down our debt and currently have a credit utilization of about 45%. Still have two credit cards to pay down. Our income is just under $30,000, is it likely that we will be able to get a mortgage? A: There are many factors involved in getting a loan. However, to answer directly your question, if you are self employed and your tax returns reflect your income needed to qualify, you should be able to get a mortgage. If you are interested, I can set you up with a mortgage professional who can answer all questions you have regarding mortgages. It certainly sounds as if you are doing all things correct. – Linda Cottar, REALTOR®, Ingrid Nel Properties A: For the self-employed that are considering purchasing a home it’s important to be aware of the changes that have occurred in the world of lending. As everyone is well aware, getting a loan is not nearly as easy as it used to be. As you’ve found out, those who are self-employed are having a more difficult time borrowing money and must provide documentation that shows their income. The IRS is being contacted for income verification by many lenders and any fraudulent income claims are being dealt with. In a nutshell, if you are self-employed and applying for a mortgage loan, be prepared and: 1) Line up all of your documents showing your income before going to apply for a loan. 2) Check your credit and do what you can to improve your credit score. 3) Pay your bills on time. 4) Most importantly, tell the truth, misrepresentation can cost you. Many lenders are hiring more loan officers. They are convinced that current low rates are going to bring many more new and refinance loans in the next 18 months or so. Mortgage rates are at their lowest, closely tied to the unsteady economy where wary investors are putting their money in safe investments like Treasury Bonds. As these yields go down interest rate goes down as well. In other words, the unsteady global economy equals good news for the home buyer acquiring a mortgage and home owners who are refinancing their home loans. Even though you are self-employed, as long as you can provide decent and accurate documentation there is no reason you shouldn’t be able to secure a home loan. – Lee Dworshak, REALTOR®, Keller Williams LA Harbor Realty
Farmington Valley real estate agent – Annual Home Values Rise 6.2 Percent Nationwide in January – Farmington Valley real estate broker
Annual Home Values Rise 6.2 Percent Nationwide in January Date:February 21, 2013|Category:Market Trends|Author:Cory Hopkins The strong momentum the housing market built up in 2012 has officially carried over into 2013, as home values rose to $158,100 last month, up 0.7 percent from December and 6.2 percent from January 2012, according to the January Zillow Real Estate Market Reports. January marked the 15th consecutive month of home value gains. The 6.2 percent annual gain is the largest since July 2006, when home values rose 7.5 percent year-over-year. The last time national home values were at this level was in June 2004. Home value appreciation was widespread in January, as all of the top 30 metros covered by Zillow experienced year-over-year gains. Major markets where home values rose the most over January 2012 included Phoenix (21.9 percent), San Francisco (17.2 percent), San Jose (16.8 percent), Las Vegas (16.2 percent) and Sacramento (13.7 percent). On a monthly basis, 27 of the top 30 metro markets showed home value appreciation in January. The St. Louis and Orlando metros were the only markets that fell month-over-month. Baltimore was flat. Because of seasonality, national rents fell slightly in January compared with December, down 0.2 percent to a Zillow Rent Index of $1,271. Year-over-year, national rents were up 4.3 percent. Foreclosures, while falling, still remain an important and significant part of the market. Completed foreclosures slowed in January, falling to 5.54 homes foreclosed out of every 10,000 homes nationwide. That was down 0.8 homes over December and down 2.3 homes year-over-year. “The winter months are typically when things cool off in the housing market, but high demand and continued tight inventory in many markets have helped keep things at a boil through the early part of 2013,” said Zillow Chief Economist Dr. Stan Humphries. “Demand will continue to be high throughout 2013, which will help home values and rents alike continue to rise. Foreclosure activity remains high, despite recent drop-offs. This will have the dual effects of nurturing rental demand, as displaced former homeowners seek new lodgings, and of adding supply to many markets, as foreclosed properties re-enter the market.” Zillow Home Value Index Zillow Rent Index Metropolitan Areas Jan. 2013 ZHVI Month-Month % Change Year-Year % Change Jan. 2013 ZRI Month-Month % Change Year-Year % Change United States $158,100 0.7% 6.2% $1,271 -0.2% 4.3% New York $346,100 0.3% 1.4% – – – Los Angeles $421,800 1.4% 9.7% $2,296 0.0% 2.9% Chicago $162,200 0.1% 1.6% $1,512 -0.3% 4.1% Dallas-Fort Worth $131,800 0.5% 5.9% $1,318 -0.2% 4.2% Philadelphia $188,700 0.4% 1.6% $1,474 -0.3% 0.6% Washington, DC $327,100 0.7% 6.5% $2,054 0.0% 3.1% Miami-Fort Lauderdale $155,900 1.3% 10.9% $1,618 0.4% 2.7% Atlanta $115,500 1.0% 1.9% $1,125 0.0% 0.7% Boston $319,500 0.2% 4.8% $1,950 -0.3% 6.3% San Francisco $538,900 2.0% 17.2% $2,522 0.2% 5.4% Detroit $82,600 1.3% 11.3% $1,030 -1.8% 3.8% Riverside $201,300 1.7% 12.0% $1,578 0.2% 2.9% Phoenix $159,300 0.9% 21.9% $1,152 0.0% 2.3% Seattle $273,000 0.8% 7.6% $1,610 -0.3% 2.2% Minneapolis-St. Paul $175,000 0.2% 7.4% $1,439 0.0% 4.1% San Diego $381,900 1.8% 12.9% $2,101 -0.1% 0.9% Tampa, FL $116,300 2.0% 9.1% $1,186 -0.1% 2.7% St. Louis $126,700 -0.2% 1.4% $1,094 -0.6% 1.0% Baltimore $222,100 0.0% 2.4% $1,662 -0.4% 4.1% Denver $229,800 0.6% 12.6% $1,528 0.9% 7.5% Pittsburgh $112,900 1.0% 2.9% $942 -4.4% -3.0% Portland, OR $231,500 0.5% 8.1% $1,390 0.5% 5.1% Sacramento, CA $228,600 1.5% 13.7% $1,456 0.0% 3.5% Orlando, FL $125,000 -0.4% 7.1% $1,204 0.0% 1.7% Cincinnati $122,100 0.1% 0.9% $1,073 0.4% -2.4% Cleveland $109,800 0.2% 0.8% $1,087 0.5% 1.6% Las Vegas $131,100 1.3% 16.2% $1,142 -0.3% -1.0% San Jose, CA $639,500 1.2% 16.8% $2,668 0.8% 5.5% Columbus, OH $127,600 0.6% 4.5% $1,153 1.7% 0.3% Charlotte, NC $138,100 0.4% 3.4% $1,138 -0.1% 6.3
Granby CT realtor – 3 Tips for Avoiding House-Hunt Heartbreak – Granby CT broker
3 Tips for Avoiding House-Hunt Heartbreak Date:February 12, 2013|Category:Tips & Advice|Author:Brendon DeSimone It’s been said over and over and over: House hunting is like dating. A buyer sees a series of homes, much like going on dates, before finding “the one” and settling down, or purchasing. How will you know when you’ve found “the one,” and how can you determine when it’s time to move on? It’s important to keep your eye on the prize. “The one” doesn’t show up overnight. Much like dating, house hunting is an evolution. A buyer needs to see many houses, learn about the market and maybe even have a heartbreak or two. All of these experiences will inform the buyer and provide serious context when “the one” presents itself. Here are three tips for not getting your heart broken in the home search process. Prepare to get your feelings hurt by a seller The seller doesn’t have to sell to you. It’s entirely possible that, especially given the lack of inventory and the influx of home shoppers today, even if you offer the seller their list price the home may not be yours. Another buyer may offer more than you, may have a larger down payment or may offer the seller a swift closing and more favorable terms. Even if you think this is the perfect home for you and your family, starting a love affair with it in your head will only lead to disappointment down the road. Don’t obsess over one home Most buyers begin their home search with a list of wants, needs, must-haves and nice-to-haves as well as deal-breakers. You will never get it all, so it’s important to know when to compromise. Often the “perfect” home will come along, but the buyer loses sight of their objective. Saw a home with a designer kitchen that you can’t get out of your head? That might be great, but if the home doesn’t have room for two cars, doesn’t have the required square footage or lacks that all-important second bathroom, you need to move on. Harboring feelings for a home that you know won’t work only serves to get you sidetracked and out of focus Don’t fall too hard It’s no longer a done deal once the contract is signed. Many times a buyer and seller come to an agreement on terms and price, even sign a contract, only to have a series of issues come up in the disclosure and inspection phase. Don’t fall hard once you have a signed contract. This will only make the discovery process more heartbreaking. Know that dozens of issues can come up in escrow. If it’s not working out, be ready to move on. The longer you hang around and obsess over one home, the bigger the chance that you’ll miss out on Mr. or Ms. Right around the corner. Know upfront that the home shopping process will be a journey. Expect to see a lot of homes and learn a lot along the way. No matter how frustrating the process is, believe that the journey will eventually come to an end and that “the one” will present itself. Much like dating, touring many homes will allow you to play the field, see what’s out there and learn the market. The more you see, the more you will know when the right “one” comes along and you’re ready to seal the deal. Related: 3 Things Home Buyers Should Know About Today’s Sellers What to Expect When You’re Inspecting Bidding War? 5 Ways to Beat Out the Competition Brendon DeSimone is a Realtor licensed in both California and New York. He has collaborated on multiple real estate books, and his real estate expertise is regularly sought out by print, online and television media outlets like FOX News, CNBC and Forbes. An avid investor, Brendon owns real estate around the U.S. and abroad. You can find Brendon online or follow him on Twitter and Google + Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.
Farmington Valley realtor – 5 Design Tips to Cure ‘Model Home Syndrome’ – Farmington Valley broker
5 Design Tips to Cure ‘Model Home Syndrome’ Date:February 21, 2013|Category:Tips & Advice|Author:BobVila.com Source: raleighdurham.about.com By Chris Gardner Most homes built in the U.S. these days are done by developers, which can be great — contractor-built homes are energy efficient, contain the latest features and technologies, and look brand new! But depending on your taste, that brand-new look can be awesome… or totally bland. So if you want all the benefits of contemporary living but prefer an old-home feel, check out these tips for adding some architectural details to give a new house lots of character. 1. Install (lots of) architectural molding Source: Greenside Design Build, LLC Built-in decorative features are an almost guaranteed escape from “model home syndrome.” Crown molding, ceiling coffers, baseboards, chair rails, transoms, cornice molding, wainscoting and recessed panels all impart new drywall with loads of vintage charm. Note: The earlier you install molding in a new house the better, as walls and floors are likely to become less square over time. 2. Change up your cabinet pulls Source: Cabinet Cottage You know what they didn’t have in the days of antique houses? Brushed aluminum and acrylic. So you know what you should replace in your house? The same! In your kitchen and bathroom, consider using glass knobs, which came to popularity in the early 1900s (when metal was in short supply due to the Great Depression and world wars). To echo the look throughout your home, do the same with your door knobs, desk-drawer handles and dresser pulls. 3. Address your staircase Source: Gast Architects Most new houses are modeled after colonial-era homes with the staircase front-and-center and the various rooms stemming off a main hall. Consider replacing the handrails and newel post with more elegant woodwork. Check local salvage yards, classified ads and online sites to snag pieces that will make an impression. And if you really want to go for it, rip up your wall-to-wall carpeting and install a stair runner for a signature-antique look. 4. Upgrade your light switch and outlet plates Source: My Knobs For very little time and money, you can easily upgrade all your switch plates and outlet covers. Look for nickel and brass finishes to stay era-appropriate. You can check antique shops if you’re a purist, but there are plenty of reproduction pieces that’ll do just fine. 5. Switch up your lights Source: Free House Interior Design Ideas Nothing screams contractor-built home like contractor-grade lighting. Though energy-smart and inexpensive, such fixtures make everything look as generic as can be. Neutrality is the goal when you’re trying to entice buyers, not when you want to create a beautiful space. Look for antiques like chandeliers — but old wiring can be problematic, so consider reproductions. Wall sconces especially will evoke the era you’re after. Related: 10 Great Looks in Tin Ceiling Tiles 5 Things to Do… With Beadboard 11 Sneaky Storage Ideas Bob Vila is the home improvement expert widely known as host of TV’s This Old House, Bob Vila’s Home Again, and Bob Vila. Today, Bob continues his mission to help people upgrade their homes and improve their lives with advice online at BobVila.com. His video-rich site offers a full range of fresh, authoritative content – practical tips, inspirational ideas, and more than 1,000 videos from Bob Vila television. Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.
Granby CT realtor – Using Gift Money for a Down Payment – Granby CT real estate agent
Using Gift Money for a Down Payment Date:January 16, 2013|Category:Finance|Author:Justin McHood It’s not uncommon for first-time home buyers to ask: “Can my mom and dad give me money to help me buy this house?” The good news is yes, you can receive a gift from your parents to buy a house, but the way that you actually receive the gift is very important. Mom and dad can’t just leave money under your pillow like the Tooth Fairy did when you were younger. The process of accepting a gift for your down payment isn’t complicated, and by following these simple rules, you can be sure that the underwriter who is reviewing your file will look at it with an approving eye. Write a gift letter If someone is going to be gifting you money to help you buy a house, you’ll first need a gift letter. The gift letter needs to be a short, sweet letter that is hand-signed by you and the person giving the gift. It needs to contain the following: The relationship between the home buyer and the person giving the gift. The amount of the gift. The address of the home being purchased. A statement that the money is a gift and not a loan that must be paid back. Establish a paper trail Next, you’ll need to create a paper trail. This is important because underwriters will look for where the money came from and where it went. In simple terms, they will look for proof that the money came from your parents’ account and went into yours. Each situation will be slightly different, but be ready to provide paper proof of your parents’ account having money in it, money coming out of that account, a deposit into your account and proof that your account now has the money in it. Accuracy matters when creating this paper trail, so make sure each transaction is for the exact amount of the gift. Write a gift letter and use this shortcut Creating a paper trail correctly has proven to have its fair share of hassles. Getting copies of transactions is time-consuming, and underwriters seem to question every little thing in the process (“where exactly did the $10,000 transfer that I see coming into mom and dad’s account come from?”). The good news is that there’s a shortcut when it comes to gift letters — one that makes the entire process easier. Simply add one sentence to the letter that says: “Will wire the gift directly to escrow at time of closing.” If you add this line to your gift letter, you can avoid all of the paper chasing that most underwriters will require. A day or two before closing, you can get wiring instructions from your escrow agent for mom and dad to wire the exact amount of the gift directly to the escrow company working on your transaction.
Granby CT realtor – $166,000 a Year Is Middle Class? Only in Manhattan – Farmington Valley realtor
$166,000 a Year Is Middle Class? Only in Manhattan Date:February 7, 2013|Category:Finance|Author:LearnVest It’s hard to pinpoint the American middle class, but an income $166,000 per year probably isn’t it — except in Manhattan. The New York Times recently published a piece, “What’s Middle Class in Manhattan?” that’s either fascinating, appalling or just factual, depending on where you live. It explains how, due to the exorbitant cost of living in New York, the city’s residents exist within a social structure unique to the city and eons away from most of the country. Basically, the traditional markers of a middle-class lifestyle — a solid job (police officer or teacher) and a mortgage — don’t apply in New York. Due to the cost of living in the Big Apple, people in such occupations don’t fall in the middle of the pack income-wise as they would in other cities, and the astronomical cost of housing erases the stigma of renting. Among the points made by The Times: Rent for the average Manhattan apartment is $3,973 a month, $2,800 more than the average rent nationwide. Last year, the average Manhattan home sold for $1.46 million, compared to the nationwide price of a little under $230,000. The Pew Research Center found that, in terms of purchasing power, a $70,000 annual income is considered middle class for a family of four, but that same family living in Manhattan would need to make $166,000 to achieve the same purchasing power. To be considered part of the 1 percent in Manhattan, you must make more than $790,000 per year. To most Manhattanites, the numbers inspire more resignation than shock. For the rest of us, it adds some hard facts to those stories about one-percenters feeling poor or unable to keep up. Of course, they aren’t poor, but it’s quite possible that, living in New York City, they’re unable to keep up with their neighbors. Not that their myopia is necessarily excused — about half of the world’s 1 percent live in the United States. Above all, The Times article is a conversation piece, so let’s have a conversation: Where do you live? How does your home compare to New York? And if you live in Manhattan, how do you feel about the high cost of living?
Farmington Valley Realtor – 2 Million Homeowners Freed From Negative Equity in 2012; 1 Million More to Come in 2013 – Farmington Valley Real Estate
2 Million Homeowners Freed From Negative Equity in 2012; 1 Million More to Come in 2013 Date:February 20, 2013|Category:Market Trends|Author:Cory Hopkins Almost 2 million American homeowners were freed from negative equity in 2012, and the overall percentage of all homeowners with a mortgage in negative equity fell to 27.5 percent at the end of the fourth quarter, according to Zillow’s fourth quarter Negative Equity Report. The falling negative equity rate is good news for struggling homeowners and is largely attributable to a 5.9 percent bump in home values nationwide last year to a median Zillow Home Value Index of $157,400 (when home values rise, negative equity falls). At the end of 2011, 31.1 percent of homeowners with a mortgage were underwater, or more than 15.7 million people. In the fourth quarter, Zillow determined where American homeowners freed from negative equity in 2012 were located. Among the nation’s 30 largest metro areas, those with the highest number of homeowners freed from negative equity last year were Phoenix (135,099 homeowners freed in 2012); Los Angeles (72,936 homeowners freed in 2012); Miami-Fort Lauderdale (70,484 homeowners freed in 2012); Dallas-Fort Worth (59,461 homeowners freed in 2012); and Riverside, CA (58,417 homeowners freed in 2012). Still, despite more than 1.9 million homeowners nationwide finding their way back above water last year, 13.8 million American homeowners are still struggling with negative equity. Many remain so far underwater that even the very high rates of appreciation experienced in many markets still can only bring them so far. In the Phoenix metro, for example, despite more than 135,000 freed homeowners last year, more than 300,000 homeowners — or 40.4 percent of homeowners with a mortgage — remain trapped in negative equity. This is largely attributable to the fact that although home values in Phoenix rose 22.5 percent last year, they remain more than 44 percent below their peak. So for those who bought at the peak, even with rapid appreciation, they still have a long way to go. The graph below shows the loan-to-value (LTV) distribution for homeowners with a mortgage nationwide in 2012 Q4 vs. 2011 Q4. You can see that even though many homeowners are still underwater and haven’t crossed the bold 100 percent LTV line into positive equity, they are moving in the right direction. The 2012 Q4 buckets on the 100 percent+ LTV side (the red bars) are getting smaller compared to 2011 Q4, and the black bars are getting larger. U.S. homeowners with a mortgage are slowly gaining equity back in their homes. We also wanted to know how many more homeowners would be freed in 2013 and where they would be located. New this quarter, the Zillow Negative Equity Forecast predicts the negative equity rate among all homeowners with a mortgage will fall to at least 25.5 percent by the fourth quarter of 2013, freeing more than 999,000 additional homeowners nationwide. Of the 30 largest metro areas, the majority of these newly freed homeowners are anticipated to come from Los Angeles (72,696 homeowners freed in 2013); Riverside (62,407 homeowners freed in 2013); Phoenix (43,044 homeowners freed in 2013); Sacramento (33,356 homeowners freed in 2013); and Dallas-Fort Worth (31,434 homeowners freed in 2013). Zillow forecasts negative equity by applying anticipated appreciation or depreciation rates to a home, according to the most current metro and national Zillow Home Value Forecasts, and by assuming all other factors remain constant. “As home values continue to rise and more homeowners are pulled out of negative equity in 2013, the positive effects on the housing market will be numerous. Freed from negative equity, homeowners will have more flexibility, and some will likely choose to list their home for sale, helping to ease inventory constraints and moderating sometimes dramatic, demand-driven price increases in some markets,” said Zillow Chief Economist Dr. Stan Humphries. “But negative equity is still very high, and millions of homeowners have a very long way to go to get back above water, even with current robust levels of home value appreciation in most areas. As a result, negative equity will remain a major factor in the market for the foreseeable future.” Also, new this quarter, users can zoom in on a portion of our Negative Equity visual and embed only that portion on their website. So, for example, if you were in Seattle and wanted to post the interactive tool to your site, we would be happy to show you how. Tags: Zillow Negative Equity Forecast, Zillow Negative Equity Report
East Granby real estate – Tax Benefits of Rental Property – East Granby realtor
Tax Benefits of Rental Property Tax Deductions for Owner-Occupied Rental Property How to Calculate Rental Property Appreciation for Income Tax Purposes Tax Deductions for Condo Fees on Rental Property Tax Implications of Owning a Residential Rental Property The Definition of Gross Receipts for a Rental Property 65 and Over Property Tax Benefits in North Carolina Owning rental property brings you a number of benefits. Many properties offer an attractive mix of equity growth and cash flow, but the tax shelter is probably the most appealing benefit. Since rental properties straddle the line between investments and businesses, you typically get liberal write-offs and tax advantages, including tax deferrals for exchanging rental properties. Tax-Sheltered Growth Most real estate investors hope their properties will gain value every year. Some of the growth comes from monthly payments on your mortgage, which increases your equity ownership in the property. Additional growth comes from your property increasing in value due to a healthy market or, in the case of rental properties, due to growing net operating income. Since the Internal Revenue Service does not recognize capital gain until you sell the property, your money continues to grow as long as it stays in the property. Sponsored Link 12% Yield Stocks to Buy These stocks yield 12%, yet most US investors don’t know they exist. www.GlobalDividends.com Tax-Sheltered Cash Flow The IRS only requires you to pay tax on the profit that you earn from your rental properties. To calculate your profit, add up all your rental and other income and subtract all your expenses. Your rental property expenses include obvious things like mortgage interest, repairs, property taxes and management fees. It can include expenses related to travel. For instance, if you own a beach house in Hawaii and spend a week there to work on it, the entire trip would be tax deductible. Depreciation of your property allows you to write off a portion of the property’s purchase price every year as a way of acknowledging that it gradually wears out. You don’t spend anything to get the depreciation deduction; it just helps to cancel out other income, reducing your tax liability. Passive Activity Loss Deductions With all the expenses you can claim on your investment property, it’s not that hard to end up with a taxable loss. In most cases, you can’t use losses from passive activities, like investing, to offset active income that you earn from your job. However, the IRS will allow you to claim up to $25,000 in passive activity losses from rental real estate against your regular income. To qualify for the tax benefit, your modified adjusted gross income must be below $100,000 — or below $50,000 if you are married and file separately. For income over the modified adjusted gross income threshold, your ability to claim a passive activity loss falls $1 for every $2 of income. Tax-Free Exchanges If you sell your rental property and use the proceeds to buy more investment property, even if it is of a different type or located in a different state, you can structure the sale as a tax-deferred exchange. By following the IRS’ rules, you can carry your cost basis from your old property forward into your new property. Since the IRS doesn’t look at this type of transaction as a sale, you won’t have to pay any capital gains taxes or depreciation recapture taxes on the exchange. Contact Santa Realty a Real Estate Company in Granby, CT
East Granby Real Estate Broker – When Is a Real Estate Agent a REALTOR®? – East Granby Real Estate Company
When Is a Real Estate Agent a REALTOR®? A real estate agent is a REALTOR® when he or she becomes a member of the NATIONAL ASSOCIATION OF REALTORS®, The Voice for Real Estate®, the world’s largest professional association. The term “REALTOR®” is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and abides by its strict Code of Ethics. Founded in 1908, NAR has grown from its original nucleus of 120 members to more than 1 million today. NAR is composed of REALTORS® who are involved in residential and commercial real estate as brokers, salespeople, property managers, appraisers, counselors, and others who are engaged in all aspects of the real estate industry. Members belong to one or more of 1,700 local associations/boards and 54 state and territory associations of REALTORS® and can join one of our many institutes, societies, and councils. Additionally, NAR offers members the opportunity to be active in our appraisal and international real estate specialty sections. REALTORS® are pledged to a strict Code of Ethics and Standards of Practice. Working for America’s property owners, the NATIONAL ASSOCIATION OF REALTORS® provides a facility for professional development, research, and exchange of information among its members. Check out the Public Awareness Campaign television and radio spotsthat encourage consumers to rely on the expertise and integrity of REALTORS®. The NAR advertising campaign runs February through November on network and cable television and network and satellite radio, helping consumers understand the real value of working with REALTORS®. From their voluntary adherence to a Code of Ethics to their incomparable knowledge of real estate processes, REALTORS® are the experts of residential and commercial property transactions. Santa Realty are REALTORS located in the Farmington Valley, proudly serving all of Hartford County, and surrounding areas. Contact the #1 Real Estate Company in CT today for all of your real estate needs!