Only steps away from Trousdale Estates in Beverly Hills, this lovely home features
6 Bedrooms, 8 Bathrooms, 8,114 square feet and Spectacular Views!!!!
Please contact my office if you would like to schedule a showing. 424.274.1968.
Friday, November 30, 2012
Wednesday, October 31, 2012
If you knew of a way to reduce your taxes by $18,000 - $81,000 Would You Choose to Ignore It?
Why Not Save $18,876 to $81,000 in Taxes via the Mortgage Interest Deduction?
The LA Times had a fascinating article this weekend about how much money middle and upper-class American families have been able to save via the Mortgage Interest deduction. The studies show that Californians more than residents of any other state take advantage of the Mortgage Interest deduction, saving on average $18,876. For earners at the higher end of the scale, some estimates are around $81,000 in savings. WOW! (So if you're not taking this deduction, you're likely giving a comparable amount away to Uncle Sam. He appreciates your gift too.)
Check it out for yourself. http://www.latimes.com/business/realestate/la-fi-harney-20121028,0,7128558.story
I remember the days when I was a W-2 employee. As a W-2 employee without any dependents, it is difficult to look at the large difference between one's gross salary and one's net salary. The Mortgage Interest deduction allows you to get a SUBSTANTIAL amount of that money back when you file your taxes or to decide not to give a no interest loan to the government. If you knew of a way to reduce your taxes by $18,000 to $81,000 would you choose to ignore it?
I took a number of tax law classes during law school because I'm a nerd who LOVES the tax code. I know first-hand that the US Tax Code currently encourages Americans to buy homes (admittedly, bigger homes) and to start small businesses. Thus, my suggestion to those of you who are W-2 employees are:
#1 Buy some real estate and take advantage of these 30-year-fixed interest rates that are below 4%; and
#2 Start a small business on the side to get your deductions and to create more jobs for other Americans.
As always, I'm more than happy to help you develop your wealth plan! Call or email me for more information. 310-482-2414 and marcelanderson@kw.com.
The LA Times had a fascinating article this weekend about how much money middle and upper-class American families have been able to save via the Mortgage Interest deduction. The studies show that Californians more than residents of any other state take advantage of the Mortgage Interest deduction, saving on average $18,876. For earners at the higher end of the scale, some estimates are around $81,000 in savings. WOW! (So if you're not taking this deduction, you're likely giving a comparable amount away to Uncle Sam. He appreciates your gift too.)
Check it out for yourself. http://www.latimes.com/business/realestate/la-fi-harney-20121028,0,7128558.story
I remember the days when I was a W-2 employee. As a W-2 employee without any dependents, it is difficult to look at the large difference between one's gross salary and one's net salary. The Mortgage Interest deduction allows you to get a SUBSTANTIAL amount of that money back when you file your taxes or to decide not to give a no interest loan to the government. If you knew of a way to reduce your taxes by $18,000 to $81,000 would you choose to ignore it?
I took a number of tax law classes during law school because I'm a nerd who LOVES the tax code. I know first-hand that the US Tax Code currently encourages Americans to buy homes (admittedly, bigger homes) and to start small businesses. Thus, my suggestion to those of you who are W-2 employees are:
#1 Buy some real estate and take advantage of these 30-year-fixed interest rates that are below 4%; and
#2 Start a small business on the side to get your deductions and to create more jobs for other Americans.
As always, I'm more than happy to help you develop your wealth plan! Call or email me for more information. 310-482-2414 and marcelanderson@kw.com.
Thursday, September 20, 2012
How Can I Be Like Romney and Reduce My Effective Tax Rate to 15%?
Although I cannot promise you that we can reduce your tax rate to 15%, we can implement strategies that can dramatically reduce your effective tax rate.
The beauty/travesty of the U.S. Tax Code is that it is so complex and filled with so many provisions that allow us to reduce our tax liability. One such provision is the Home Mortgage Interest Rate deduction. Believe it or not, this provision was created to encourage more people to buy homes in the U.S., which arguably creates a multitude of positive results in our economy, our schools and our neighborhoods.
If you're single or married and making too much to pay only payroll taxes but not enough money to buy that Bentley or the palace in Malibu with the ocean view, then let's talk about how you can reduce your tax liability through investing in real estate. (I'm also a fan of encouraging people to set up small businesses because the tax code favors small business owners with tax credits and write-offs. Yes, true to my roots, I encourage folks to have more than one revenue stream. But that's another blog entry to itself.)
The Home Mortgage Interest Rate deduction allows you to write off a significant portion of the amount that you would otherwise pay as rent and you also benefit from the appreciation in value of your home over time. If you want to buy something other than a single family home, you can still benefit from this provision. We can also talk about the cool ways you can use low down payment programs (like FHA, etc.) to buy a duplex/triplex/4-plex unit building (wherein you live in one unit and rent out the others) and then later on down the line do a 1031 exchange on the units that you don't live in so that you can legally defer paying taxes on your real estate gains and buy in a more expensive neighborhood or buy other investment property.
According to our current tax code, when you sell your primary residence after living in it for 2 years, the first $250K of profit for individuals and the first $500K of profit for married couples is tax exempt. The key is to buy the right property at the right time. Many real estate advisers will encourage you to buy when interest rates are low and when home prices are affordable--also known as "Our Current Market". :-)
That's a lot of information. If you want to set up a time to discuss the details of your real estate investment strategy, please do not hesitate to call or email me. My office number is 310.482.2414 and my email address is marcelanderson@kw.com
The beauty/travesty of the U.S. Tax Code is that it is so complex and filled with so many provisions that allow us to reduce our tax liability. One such provision is the Home Mortgage Interest Rate deduction. Believe it or not, this provision was created to encourage more people to buy homes in the U.S., which arguably creates a multitude of positive results in our economy, our schools and our neighborhoods.
If you're single or married and making too much to pay only payroll taxes but not enough money to buy that Bentley or the palace in Malibu with the ocean view, then let's talk about how you can reduce your tax liability through investing in real estate. (I'm also a fan of encouraging people to set up small businesses because the tax code favors small business owners with tax credits and write-offs. Yes, true to my roots, I encourage folks to have more than one revenue stream. But that's another blog entry to itself.)
The Home Mortgage Interest Rate deduction allows you to write off a significant portion of the amount that you would otherwise pay as rent and you also benefit from the appreciation in value of your home over time. If you want to buy something other than a single family home, you can still benefit from this provision. We can also talk about the cool ways you can use low down payment programs (like FHA, etc.) to buy a duplex/triplex/4-plex unit building (wherein you live in one unit and rent out the others) and then later on down the line do a 1031 exchange on the units that you don't live in so that you can legally defer paying taxes on your real estate gains and buy in a more expensive neighborhood or buy other investment property.
According to our current tax code, when you sell your primary residence after living in it for 2 years, the first $250K of profit for individuals and the first $500K of profit for married couples is tax exempt. The key is to buy the right property at the right time. Many real estate advisers will encourage you to buy when interest rates are low and when home prices are affordable--also known as "Our Current Market". :-)
That's a lot of information. If you want to set up a time to discuss the details of your real estate investment strategy, please do not hesitate to call or email me. My office number is 310.482.2414 and my email address is marcelanderson@kw.com
Tuesday, September 11, 2012
Did You Know that Tax Relief on Short Sales and Loan Modifications Will Expire This Year?
It is important to understand that the U.S. tax code treats cancelled and forgiven debts as a form of income, and thus taxpayers become liable for the additional income "received" and must pay taxes on such income.
The Mortgage Forgiveness Debt Relief Act has been a saving grace for many American homeowners who lost their shirt in the recent real estate crisis. Before this Act was enacted in 2007, homeowners would have to pay tax on the amount of debt that was cancelled or forgiven by their lender (unless such debt was discharged pursuant to a bankruptcy proceeding). Without having to file bankruptcy, the current legislation allows homeowners to sell their homes for less than the mortgage amount (which is called a "Short Sale") and not be liable for any federal taxes on the amount of the mortgage that is cancelled or forgiven by their lender. The legislation was drafted in a way that even high income Americans could qualify because it allows up to $2 Million of forgiven debt to be excluded from the homeowner's income.
The good news is that since 2007 and through the end of this year, many homeowners in the U.S. have been able to save thousands of dollars. The bad news is that this legislation is set to expire on December 31, 2012.
If you or someone you know is planning to do a short sale or modify a home loan, I would encourage you to read the link below and to contact a real estate broker to help you figure out a strategy that could save you thousands of dollars.
http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-Act-and-Debt-Cancellation-
The Mortgage Forgiveness Debt Relief Act has been a saving grace for many American homeowners who lost their shirt in the recent real estate crisis. Before this Act was enacted in 2007, homeowners would have to pay tax on the amount of debt that was cancelled or forgiven by their lender (unless such debt was discharged pursuant to a bankruptcy proceeding). Without having to file bankruptcy, the current legislation allows homeowners to sell their homes for less than the mortgage amount (which is called a "Short Sale") and not be liable for any federal taxes on the amount of the mortgage that is cancelled or forgiven by their lender. The legislation was drafted in a way that even high income Americans could qualify because it allows up to $2 Million of forgiven debt to be excluded from the homeowner's income.
The good news is that since 2007 and through the end of this year, many homeowners in the U.S. have been able to save thousands of dollars. The bad news is that this legislation is set to expire on December 31, 2012.
If you or someone you know is planning to do a short sale or modify a home loan, I would encourage you to read the link below and to contact a real estate broker to help you figure out a strategy that could save you thousands of dollars.
http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-Act-and-Debt-Cancellation-
Tuesday, August 28, 2012
How to Plan for 2013 Tax Increases?
Did you know that the current tax cuts are set to expire at the end of this year? What does that mean? Well, taxes are going up as of January 1, 2013 because the current tax cuts are set to expire. Ordinary income tax rates and capital gains rates are going up. The good news is that you can plan ahead.
For those who are considering whether or not to sell their home this year or next year, this impending increase in the capital gains rate could be of interest to you because the current federal capital gains rate on real estate is only 15% (which is expected to increase to 20% or more in 2013).
Sellers on the Westside and in beach communities throughout LA county are becoming aware of this tax increase and planning ahead. They understand that the market has shifted to become a Sellers' market and that a number of buyers lost in the bidding wars over the summer. So what does that mean? It means that Sellers still have a substantial amount of negotiating power during the third and fourth quarters of 2012. It is also good news for buyers because it means that there will be homes on the market during the Autumn and Winter months.
If this is the first time you're hearing about this tax increase, do not fret. The immediate impact will be on individual homeowners who will earn more than $250K in capital gains or married couple homeowners who earn more than $500K in capital gains from their sale. (Sidebar: This tax increase more often than not will affect those who are retiring and downsizing and/or those who are great real estate investors.) If you fall into this category of sellers, do not fret because there is still time to plan ahead. (www.marcel.kwrealty.com)
For more info about these tax increases, check out this article:
http://www.inman.com/news/2012/08/8/high-end-homeowners-rushing-beat-2013-tax-increase
For those who are considering whether or not to sell their home this year or next year, this impending increase in the capital gains rate could be of interest to you because the current federal capital gains rate on real estate is only 15% (which is expected to increase to 20% or more in 2013).
Sellers on the Westside and in beach communities throughout LA county are becoming aware of this tax increase and planning ahead. They understand that the market has shifted to become a Sellers' market and that a number of buyers lost in the bidding wars over the summer. So what does that mean? It means that Sellers still have a substantial amount of negotiating power during the third and fourth quarters of 2012. It is also good news for buyers because it means that there will be homes on the market during the Autumn and Winter months.
If this is the first time you're hearing about this tax increase, do not fret. The immediate impact will be on individual homeowners who will earn more than $250K in capital gains or married couple homeowners who earn more than $500K in capital gains from their sale. (Sidebar: This tax increase more often than not will affect those who are retiring and downsizing and/or those who are great real estate investors.) If you fall into this category of sellers, do not fret because there is still time to plan ahead. (www.marcel.kwrealty.com)
For more info about these tax increases, check out this article:
http://www.inman.com/news/2012/08/8/high-end-homeowners-rushing-beat-2013-tax-increase
Monday, August 20, 2012
Thinking of Buying a Fixer Upper?
Some of my clients have expressed interest in buying a "fixer upper". Often times, buying the "ugly duckling" in a nice neighborhood is a great investment because you get to buy a home that is priced well below what the house will sell for after the renovations. One hurdle with a "fixer upper" can be the cost of renovation.
Did you know that there is financing available to assist you with the renovations whether you plan to live in the house or just be an investor? I'm talking about a financing that could be less expensive than a home equity line of credit (HELOC) on the acquired property. With some loan programs, the renovation costs can be rolled into the loan you use to acquire the property.
Have you heard of any of the Renovation Loan programs?
1) Homestyle Renovation Mortgage allows you to make renovations, repairs and improvements totaling up to 50% of the as-completed value of the property with a first mortgage rather than a second mortgage, home equity line of credit and other more costly financing. The funds can be used for any repairs or renovations that are permanently affixed and add value to the property. Your lender must be approved by Fannie Mae to offer this product, and there are some major players, such as Wells Fargo, that still offer it.
2) There's also the FHA 203K loan. This program is great because it could allow you a maximum mortgage amount of $729,750 with only having to put 3.5% down and possibly roll in your closing costs and repair costs. The loan cannot exceed 110% of the "as-improved" value of the property. Up to 6 months of the mortgage payments can be financed while the home is renovated and uninhabitable
If you'd like to find out more about either of these programs, I am more than happy to connect you with some of my preferred lenders. I also can help you with some of the other nuances of buying a "fixer upper". Feel free to call (310.482.2414) or email me (marcelanderson@kw.com) for more information.
Did you know that there is financing available to assist you with the renovations whether you plan to live in the house or just be an investor? I'm talking about a financing that could be less expensive than a home equity line of credit (HELOC) on the acquired property. With some loan programs, the renovation costs can be rolled into the loan you use to acquire the property.
Have you heard of any of the Renovation Loan programs?
1) Homestyle Renovation Mortgage allows you to make renovations, repairs and improvements totaling up to 50% of the as-completed value of the property with a first mortgage rather than a second mortgage, home equity line of credit and other more costly financing. The funds can be used for any repairs or renovations that are permanently affixed and add value to the property. Your lender must be approved by Fannie Mae to offer this product, and there are some major players, such as Wells Fargo, that still offer it.
2) There's also the FHA 203K loan. This program is great because it could allow you a maximum mortgage amount of $729,750 with only having to put 3.5% down and possibly roll in your closing costs and repair costs. The loan cannot exceed 110% of the "as-improved" value of the property. Up to 6 months of the mortgage payments can be financed while the home is renovated and uninhabitable
If you'd like to find out more about either of these programs, I am more than happy to connect you with some of my preferred lenders. I also can help you with some of the other nuances of buying a "fixer upper". Feel free to call (310.482.2414) or email me (marcelanderson@kw.com) for more information.
Monday, August 6, 2012
Shrinking Supply of Homes: Sellers & Buyers Are Happier!
This likely comes as no surprise to those of you who are out there as buyers, but homes throughout Los Angeles are being sold through bidding wars.
The bidding wars for the best homes often lead to the home selling for much more than its initial list price. A recent LA Times article discusses how the inventory of homes on the market this summer in Los Angeles is much less (i.e. about 49% lower) than it was last summer, while 24% fewer homes are listed across the nation this summer when compared to last summer. This may seem odd to you because most would agree that the fundamentals in the economy were not stronger than today.
http://www.latimes.com/business/realestate/la-fi-harney-20120729,0,308220.story
This is good news for both Sellers and successful Buyers in today's market. Sellers are happier because this means that their homes are appreciating in value. Successful Buyers are happy for the same reason. Given the strict underwriting standards of Lenders, the fundamentals for your home's appreciation are real.
As we go into the final stretch of the summer, feel free to contact me if you want to sell your home or if you want to win a bidding war for your dream home. marcelanderson@kw.com and 310-482-2414.
The bidding wars for the best homes often lead to the home selling for much more than its initial list price. A recent LA Times article discusses how the inventory of homes on the market this summer in Los Angeles is much less (i.e. about 49% lower) than it was last summer, while 24% fewer homes are listed across the nation this summer when compared to last summer. This may seem odd to you because most would agree that the fundamentals in the economy were not stronger than today.
http://www.latimes.com/business/realestate/la-fi-harney-20120729,0,308220.story
This is good news for both Sellers and successful Buyers in today's market. Sellers are happier because this means that their homes are appreciating in value. Successful Buyers are happy for the same reason. Given the strict underwriting standards of Lenders, the fundamentals for your home's appreciation are real.
As we go into the final stretch of the summer, feel free to contact me if you want to sell your home or if you want to win a bidding war for your dream home. marcelanderson@kw.com and 310-482-2414.
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