Dave Harbison's Long Beach CA Real Estate Update: March 2012

Due to the fact, tax time is right around the corner, I came across some great information from an attorney that specializes in Real Estate taxes, G.M. Filisko.  Here's what she summarizes as the top 10 sins homeowner's are making on their tax returns.

Sin #1: Deducting the wrong year for property taxes
You take a tax deduction for property taxes in the year you (or the holder of your escrow account) actually paid them. Some taxing authorities work a year behind — that is, you’re not billed for 2011 property taxes until 2012. But that’s irrelevant to the feds.

Enter on your federal forms whatever amount you actually paid in 2011, no matter what the date is on your tax bill. Dave Hampton, CPA, tax manager at the Cincinnati accounting firm of Burke & Schindler, has seen home owners confuse payments for different years and claim the incorrect amount.


Sin #2: Confusing escrow amount for actual taxes paid
If your lender escrows funds to pay your property taxes, don’t just deduct the amount escrowed, says Bob Meighan, CPA and vice president at TurboTax in San Diego. The regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. Your lender will adjust the amount every year or so to realign the two.

For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200. Your lender will send you an official statement listing the actual taxes paid. Use that. Don’t just add up 12 months of escrow property tax payments.


Sin #3: Deducting points paid to refinance
Deduct points you paid your lender to secure your mortgage in full for the year you bought your home. However, when you refinance, says Meighan, you must deduct points over the life of your new loan. If you paid $2,000 in points to refinance into a 15-year mortgage, your tax deduction is $133 per year.


Sin #4: Failing to deduct private mortgage insurance
Lenders require home buyers with a down payment of less than 20% to purchase private mortgage insurance (PMI). Avoid the common mistake of forgetting to deduct your PMI payments. However, note the deduction begins to phase out once your adjusted gross income reaches $100,000 and disappears entirely when your AGI surpasses $109,000. Also, unless Congress acts to extend the PMI deduction again, 2011 is the last tax year for which you can take this deduction.


Sin #5: Misjudging the home office tax deduction
This deduction may not be as good as it seems. It's complicated, often doesn’t amount to much of a deduction, has to be recaptured if you turn a profit when you sell your home, and can pique the IRS’s interest in your return. Hampton’s advice: Claim it only if it’s worth those drawbacks. If so, here's what to know about what you can write off.


Sin #6: Missing the first-time home buyer tax credit
While the original home buyer tax credit deadline passed in April 2010 (and isn’t available in 2012), military families and some government workers on assignment outside the U.S. were given an extension until April 30, 2011, to get a home under contract and take advantage of up to $8,000 in tax credits for first-time buyers and $6,500 in credits for repeat buyers.


It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.


Sin #7: Failing to track home-related expenses
If the IRS comes a-knockin’, don’t be scrambling to compile your records. Many people forget to track home office and home maintenance and repair expenses, says Meighan. File away documents as you go. For example, save each manufacturer's certification statement for energy tax credits, insurance company statements for PMI, and lender or government statements to confirm property taxes paid.


Sin #8: Forgetting to keep track of capital gains
If you sold your main home last year, don’t forget to pay capital gains taxes on any profit. However, you can exclude $250,000 (or $500,000 if you’re a married couple) of any profits from taxes. So if you bought a home for $100,000 and sold it for $400,000, your capital gains are $300,000. If you’re single, you owe taxes on $50,000 of gains. However, there are minimum time limits for holding property to take advantage of the exclusions, and other details. Consult IRS Publication 523.


Sin #9: Filing incorrectly for energy tax credits
If you made any eligible improvement, fill out Form 5695. Part I, which covers the 30%/$1,500 credit for such items as insulation and windows, is fairly straightforward. But Part II, which covers the 30%/no-limit items such as geothermal heat pumps, can be incredibly complex and involves crosschecking with half a dozen other IRS forms. Read the instructions carefully.


Sin #10: Claiming too much for the mortgage interest tax deduction
You can deduct mortgage interest only up to $1 million of mortgage debt, says Meighan. If you have $1.2 million in mortgage debt, for example, deduct only the mortgage interest attributable to the first $1 million.

This article is the copyright property of G.M. Filisko is an attorney and award-winning writer. A frequent contributor to publications including Bankrate, REALTOR Magazine, and the American Bar Association Journal, she specializes in real estate, personal finance, and legal topics. Read more about G.M. Filisko at: http://www.houselogic.com/authors/G-M-Filisko/#ixzz1qRyzpEUY

The above provides general information about tax laws and consequences, but shouldn't be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction.



--- Dave Harbison Long Beach REALTOR® Coldwell Banker Coastal Alliance (562) 494-4600 ext 2281 --- Long Beach Realtor® / Real Estate Agent Long Beach Homes for Sale, Condos and Investment Properties Long Beach Relocation Expert ---

Labels: April 14, Deduction, Home, Long beach Taxes, Savings, Tax man, Taxes, Uncle Sam

Long before "Modernism" was in vogue, a renowned architect, Raphael Soriano began designing a beautifully modernistic home.  The home is somewhat compact, two stories is situated overlooking the Colorado Lagoon.  A long, continuous, metal-encasement window runs along the front of the home providing more than enough light throughout the day and an open airy feeling synonomous with the California lifestyle.  The flow of windows extends to the back where you view a courtyard on nearly a 1/4 acre plot.

Walking through it the other day brought me back into the mid 1950's only this home was completed in 1940 (about 15 years before it's time).  Originally from Greece, Raphael made his way to Southern California a the age of 20.  In his 35+ years as an architect he was driven to novel solutions for middle-class housing in postwar America.  He eventually designed over 150 buildings -- a small portion of which were built and completed.  Today, it is estimated that only a dozen or so still remain.

Although it is over 70 years old, it has only had two owners, the first of which, Dean & Marion Kimpson, only stayed 1 year.  The Nixon family has owned it ever since.

It is currently on the market, listed for $699,000, but is sure to fetch more due to its Historical Landmark status.



--- Dave Harbison Long Beach REALTOR® Coldwell Banker Coastal Alliance (562) 494-4600 ext 2281 --- Long Beach Realtor® / Real Estate Agent Long Beach Homes for Sale, Condos and Investment Properties Long Beach Relocation Expert ---

Labels: Alamitos Heights, Belmont Heights, Colorado Lagoon, Historical Landmark, Long Beach, Modern, Modernism

Trend #1: Remodeling scales back
A new focus on moderation and value has entered the remodeling mind-set. Trends that are likely to show up in your kitchen next year include:

You’ll repair your existing appliances instead of replacing them, extending their life with good maintenance and care. If you’re replacing cabinets, you’re likely to build around your current appliances rather than choosing new models.

You’re scaling back your cabinetry purchases, with an increased emphasis on kitchen storage and functionality over elaborate decoration. For example, rather than stacked crown moldings throughout the kitchen, you’ll put your money into practical roll-out trays and drawer organizers.

Small-scale kitchen projects are big news. Changing out cabinet hardware, replacing a faucet, and refacing your cabinets upgrades your kitchen without major expense.

Trend #2: Simpler, warmer styles dominate

Fussiness and excess have faded away in favor of pared-back looks that present a more timeless, value-conscious style.

Cabinet decoration continues to streamline. For example, massive corbels, once fashionable as undercounter supports, will give way to sleeker countertop supports and cantelivered countertop edges. Stacked moldings will pare back or disappear entirely. Elaborately glazed finishes will yield to simpler paints and stains.
Kitchen finishes will continue to get warmer and darker, and feature natural and stained woods. Walnut especially is growing in popularity.

Laminate countertops will continue to surge in popularity, especially in contemporary design. The latest European-inspired laminates offer more textured and naturalistic finishes than ever before. While exotic wood kitchen cabinets are out of reach for most home owners, glossy, look-alike laminate versions can be had for about one-third the price.

Trend #3: Technology expands its kitchen presence

Many of the techno products and trends that relate to your smartphones and tablets have just started making their way into your local showrooms and home centers.

Appliances will be equipped with USB ports and digital screens so you can display your family photographs and kids’ artwork.

Smart, induction built-in cooktops ($500-$3,000) remember your temperature settings as you move your pans across their entire surface.

One light finger touch is all it takes to open the electronically controlled sliding doors of your kitchen cabinets — a boon to people with limited mobilities. You’ll pay 40% to 70% more for cabinets with electronically controlled doors than standard models.

You’ll be able to use your smart phones and tablets to control lights and appliance settings from anywhere you have a wi-fi connection, as well as to shop for appliances from major manufacturers.

You’ll be opting for LEDs for your recessed lights, under-cabinet task lighting and color-changing accent lighting. You’ll see more LED-powered pendants and chandeliers from major manufacturers as inefficient incandescent bulbs continue their march toward extinction.

A wide selection of affordable microwave ovens with convection and even steam features gives owners of smaller kitchen spaces more high-end cooking power.
Want to know more about Jamie? click this link.  She is quite an accomplished professional.  AND she has her first kitchen design book coming out later this year (2012)  http://www.houselogic.com/authors/Jamie-Goldberg/#ixzz1qRUL5YzP


--- Dave Harbison Long Beach REALTOR® Main Street Realtors (562) 618-9770 --- Long Beach Realtor® / Real Estate Agent Long Beach Homes for Sale, Condos and Investment Properties Long Beach Relocation Expert ---

Labels: Belmont Heights, Belmont Shorts, California Bungalow, Craftsman, Kitchen Remodel, Long Beach, Park Estates, Real Estate

I had a client talk to me about their roof the other day.  They plan to put their home on the market soon and they wanted recommendations as to what they should do - New Roof or not.  As a Realtor representing them, my job would be a lot easier selling their home with a new roof.  However, what really needs to be asked -- "Is the investment going to turn into top dollar for their home?"

Here are a few things, in my opinion, that should consider:

1. It's a Buyer's Market
   
   We have been in a buyer's market for quite some time.  Good Realtors will guide their buyers to properties that provide the most home for the money.  I always tell my clients the two most important things to look at when considering buying a home is foundation and roof.  After all, these can be the most costly if not in the best condition.  Third and forth on the list would be plumbing and electrical.
   
2. State of the Roof
   
   The roof sheathing and outer roof over 20+ years of age most likely has experienced deterioration regardless of type of roof (composition, tile, wood shake, even metal).  The cost of replacing your roof may provide a worthwhile investment to conscious buyers who are looking to get the most for their money in addition to "peace-of-mind" knowing the cost of replacing the roof will not be out-of-pocket.  In my experience that lenders also put more positive weight on a new roofs than ones at the end of their life.
   
   Before any decision is made, have more than one roofing professional out to take a look at your roof and provide a detailed report of the state of your roof and recommendations (have them include photos if possible).
   
3. Competitive Market Analysis
   
   Today, you not only have to convince buyers that the price they are paying for your home is worth it.  You also have to convince the Bank!  Homes that are priced quite a bit higher than others in the neighborhood, regardless of upgrades and updates, may not be able to capture the value they deserve.  Banks are much more conservative than in the past and appraisers have tightened up their practices as well.

There are several situations in my recent past where, when asked, I recommended against a new roof and my clients opted for roof repair.  The recommendation I would make is to know the state of the homes that have sold in your neighborhood, have intimate knowledge of the state of your roof (where there are leaks, drainage issues and deterioration) and have your Realtor or trusted Real Estate professional provide their view of value with and without a new roof.  An informed seller is always more powerful these days!


--- Dave Harbison Long Beach REALTOR® Main Street Realtors (562)618-9770 --- Long Beach Realtor® / Real Estate Agent Long Beach Homes for Sale, Condos and Investment Properties Long Beach Relocation Expert ---

Labels: Craftsman, Dave, edison, Future of Real Estate, Home Seller, Long Beach Architecture, Long Beach Bungalow, Long Beach Heritage, Long Beach Seller, Naples, roof, Virginia Country Club

Last week I was driving through Virginia Country Club on my way to meet a client to preview a home.  On the corner of Pacific and Country Club Drive I stumbled on a beautiful California Bungalow that looked absolutely fabulous. 

Eager to find out more, I scoured the internet and found a treasure trove of information anoub the home. The Jennie A Reeve House as it is referred to by the Long Beach Historical Society, was originally a 4 bedroom two story bungalow built for an activist and progressive woman's movement in the Long Beach and LA basin.  The original architect, Greene & Greene, set out to build a home that incorporated a multi-gable design with deep, overhanging eaves that threw strong shadows across the planes of the house. Originally built with a modest landscape plan, the property evidently incorporated a simple post-and-rail fence and low gate at the path from the sidewalk. In the entry, there was a square entry hall gave access to the living room on the right, and to a short passage at the foot of the stairway, which led to the dining room on the left.

Alot has changed since 1902 when the original home was built and Ms. Reeves lived there.  Last sold in 2004 it was listed as having 7 bedrooms, 3 baths, a huge 60 ft. living room with two fireplaces overlooking the grounds including pool & meandering stream. Spacious formal dining room, St.Charles kitchen with center island and custom cabinetry. Hardwood floors throughout, rich handcrafted wood paneling and french doors. Absolutely Stunning!!!

I have not had an opportunity to walk through the home but will definitely put it my bucket list.

If you want to explore more about the Jennie Reeves home.  Visit the following web sites and see for yourself:

http://en.wikipedia.org/wiki/File:Jennie_A._Reeve_House.jpg

http://www.usc.edu/dept/architecture/greeneandgreene/232a.html

http://www.gamblehouse.org/nnb/object/415.html

--- Dave Harbison Long Beach REALTOR® Main Street Realtors (562) 618-9770 --- Long Beach Realtor® / Real Estate Agent Long Beach Homes for Sale, Condos and Investment Properties Long Beach Relocation Expert ---

Labels: Bungalow, Craftsman, Historical Landmark, Jennie Reeves, Long Beach Architecture, Long Beach Bungalow, Long Beach Heritage, Long beach Historical