Tag Archives: 2017

New Real EstateTax Law – 5 Effects to Home ownership and 1 unchanged

Have you heard about the new tax laws? Congress’ recently passed tax reform, has five changes that might effect homeowners.

  1. Mortgage Interest Deduction

The mortgage interest tax deduction is touted as a way to make homeownership more affordable. It cuts the federal income tax that qualifying homeowners pay by reducing their taxable income by the amount of mortgage interest they pay. Beginning in 2018, the deduction is scaled back to interest on debt up to $750,000, instead of $1 million, for people who buy homes on or after Dec. 15, 2017.

  • Tax Law Through 2017: You may deduct the interest you pay on mortgage debt up to $1 million ($500,000 if married filing separately) on your primary home and a second home.
  • Tax Law Beginning in 2018: For homes bought before Dec. 15, 2017, no change. But for homes bought Dec. 15, 2017, or later, you may deduct the interest you pay on mortgage debt up to $750,000($375,000 if married filing separately).

 

2. Property Tax Deduction

The former tax law eased the pain of paying property taxes by allowing qualifying taxpayers to reduce their taxable income by the total amount of property taxes they paid. Beginning in 2018, the deduction is limited to a total of $10,000 for the cost of property taxes, and state and local income taxes or sales taxes.

  • Tax Law Through 2017: You may deduct the property taxes you pay on real estate you own.
  • Tax Law Beginning in 2018: You may deduct up to $10,000 ($5,000 if married filing separately) for a combination of property taxes and either state or local income taxes or sales taxes.home-167734__340

3. Home Equity Deduction

On top of the mortgage interest deduction, the former tax law added a deduction for interest paid on home equity debt “for reasons other than to buy, build, or substantially improve your home.” So, for example, if you borrowed from a home equity line of credit to pay tuition, the interest you paid was tax-deductible. Starting in 2018, the deduction is eliminated for interest paid on home equity debt.

  • Tax Law Through 2017: You may deduct interest on up to $100,000 of home equity debt ($50,000 if married filing separately).
  • Tax Law Beginning in 2018: Eliminates the deduction for interest on home equity debt.

4. Mortgage Interest Deduction For Second Homes

You may deduct interest on mortgage debt on your primary home and a second home. The new law keeps this part of the former tax law in place, although it reduces the amount of eligible mortgage debt, as seen in item No. 1 above.

  • Tax Law Through 2017: Deduct the interest you pay on mortgage debt up to $1 million ($500,000 if married filing separately) on your primary home and a second home.
  • Tax Law Beginning in 2018: Deduct the interest you pay on mortgage debt up to $750,000 ($375,000 if married filing separately) on your primary home and a second home.

 

5. Moving Expenses

Under the former tax law, you could deduct some moving expenses when you moved for a new job. You had to meet complex criteria involving distance and timing of the move. Beginning in 2018, only active-duty members of the armed forces will be allowed to deduct moving expenses.

  • Tax Law Through 2017: Deduct some moving expenses if you meet distance and time requirements.
  • Tax Law Beginning in 2018: Only active duty members of the armed forces may deduct moving expenses.

 

Capital Gains rule has NOT changed

Changing the capital gains rule was on the chopping block, but thankfully it has not changed. When you sell a house, the capital gain is the difference between the price you paid for it and the price you sold it for. This capital gain is treated as taxable income. If you owned the house long enough, you’re allowed to exclude up to $500,000 (for married couples) of this capital gain as income so you don’t have to pay federal income tax on it. (The exclusion is capped at $250,000 for taxpayers filing separately.)

  • You must have owned the home, and used it as your primary residence, during at least two of the five years before the date of sale. You cannot have used this exclusion in the two years before the sale of the home.

Would you like to know more? I’m not an accountant, but I can give guidance on home values, market conditions, buying, selling, and a couple great recommendations. For more information the new tax laws contact tour favorite CPA or call me and I’d be happy to refer you.

Five Star award recipient 2011-2018 honoring the top 7% of real estate professionals in Oregon.

IT’S A GOOD LIFE!!

Rachel Sheller, Principal Broker, Realtor, CRS, ABR, GRI, SRES, MASTERS CIRCLE, Earth Advantage Broker, Diversity Specialist-HOWNW, CSA-Certified Staging Agent

Oregon First, Realtors, Direct 503.380.9634, Email-   homesforyou@frontier.com

View ALL available Houses on the market on my website

Licensed in the State of Oregon

***I’M ALWAYS HAPPY TO HELP YOU AND YOUR REFERRALS***

Thanks you Lewis Holden for the original article sited here.

Lewis, Holden, and Holden Lewis Holden is a personal finance writer for NerdWallet. He previously covered mortgages and real estate at Bankrate. Read more twitterTwitteremailEmail. “Tax Plan Compromise: What Happens to Homeownership?”NerdWallet, 20 Dec. 2017,

 

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The very latest Portland-Metro real estate numbers…and what they mean

 

WOW! We ended 2016 in a BANG! The real estate market is really ‘up and humming!’ The market was a strong sellers market last year, but with the low-interest rates combating the rising prices the market saw a lot of movement last year, enabling many to jump in and take advantage of the great opportunities.

We ended out the year with 1.3 months of inventory (6 months is a balanced market) making it a seller’s market. Think-low inventory, high demand.

The average price jumped 11.5%, which is HUGE!! 3%-5% is a really good appreciation, but double digits is amazing! This appreciation number is an average. Some Locations/Neighborhoods saw lower or higher appreciation rates.

The market time (how long it takes to get an offer on your house) is hovering at 42 days. This is assuming your house is fairly priced. Believe it or not, there are homes that are overpriced and not selling, but the reasonably priced (reasonably priced for its location and condition) homes can expect to receive and offer in the 42 day average amount of time, depending on the property  & location.

2017 is forecasted to be another really good year in our Portland-Metro real estate market (This includes all our suburbs). The appreciation is expected to be a little lower but still good. Heck! Where can you get even 2% return on your investment anymore? Real Estate! That’s where!

A few of the factors that make 2017 appealing to sellers AND buyers is Interest rates are holding steady right now, FHA fees are reduced, we have positive appreciation, and more homes will hit the market very soon. Time to make that move….or “flip” if you’re so inclined!!

If you are thinking of making that move this year, please call, email, or text me for current information. This will be a fabulous year to make the move! I’ll help you get the very most for your property and help you find the perfect property for you. Call me! you’ll be glad you did!

Also, I’m also one of the very few realtors who are a “stager.” I’ll help you use your existing stuff to stage your home. Staging really pays off on in increasing the ultimate sales price. IT WORKS!

***I’M NEVER TOO BUSY FOR YOU AND YOUR REFERRALS***

IT’S A GOOD LIFE!!

Rachel Sheller, Principal Broker, Realtor, CRS, ABR, GRI, SRES, MASTERS CIRCLE

Diversity Specialist, HOWNW, CSA-Certified Staging Agent, Oregon First, Realtors

Direct 503.380.9634, Email-    homesforyou@frontier.com

View ALL available Houses on the market on my website

Licensed in the State of Oregon

Five Star award recipient 2011-2017 honoring the top 7% of real estate professionals in Oregon.

 

 

2017 HOUSING MARKET FORECAST

R3_10402_HUD_IG

2017 Real Estate forecasts are rolling in and we are on the top 10 short list for the top 10 hottest markets (keep reading for more info)!  According to realtor.com®‘s latest forecast,  the 2017 National housing market will be a year of slowing, yet moderate growth, slight increase in interest rates and two demographics to dominate the market:  Baby boomers and Millennials.

There are five key trends (NATIONALLY) we expect in 2017:

1. Millennials and boomers will dominate the market

2. Midwestern cities will continue to be hotbeds for millennials

3. Slowing price appreciation

4. Fewer homes on the market and fast moving markets

5. Western cities will continue to lead the nation in prices and sales– THIS IS US PEOPLE! See photo above.

What does this mean for us in the Portland-Metro areas?  It means we are expected to have another good year in 2017. It means appreciation (how much your home value increases-what you can sell it for) will still increase, but at a little slower pace. It means our market is looking so good we made it to the top 10 list Nationally. This means 2017 is your year to make that move you have been waiting for! If you lived through the “crash” and have been waiting for the time to sell, buy or invest, or if your ready to buy your first home, down size or “move up,” then 2017 is going to be YOUR year! Call, email, Text or Message me! I can show you all of your options to enable you to make a smart, successful, and financially sound investment in Real Estate! I have years of experience helping many people win in our real estate market. Are you ready?

Five Star award recipient 2011-2017 honoring the top 7% of real estate professionals in Oregon. 

IT’S A GOOD LIFE!!

Rachel Sheller, Principal Broker, Realtor, CRS, ABR, GRI, SRES, MASTERS CIRCLE

Diversity Specialist, HOWNW, CSA-Certified Staging Agent, Oregon First, Realtors

Direct 503.380.9634, Email-    homesforyou@frontier.com

View ALL available Houses on the market on my website

Licensed in the State of Oregon

***I’M NEVER TOO BUSY FOR YOU AND YOUR REFERRALS***