Tag Archives: rachel shelly

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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Facing the Lenders!

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Facing the Lenders: How to Get Approved for a Mortgage

Whether you’re a first-time buyer or have bought and sold several homes, proving to a lender that you are financially prepared to take on a new mortgage payment can be complex. Doing your research and being prepared for their offers will help ease the stress.

Begin by gathering all your information. You need to know your monthly income, the sum of all your monthly debts (student loans, credit card payments, car payments, etc.), your credit score, how much cash you can put toward a down payment, and how much house you can afford. There are free online calculators to help you find any one of these totals. MortgageCalculator.org is a good place to start.

Calculate your income and debt before meeting with a lender to get a grasp on what you can reasonably afford. For the increasing number of millennial buyers, personal finance expert and founding editor of MoneyUnder30.com, David Weliver suggests buyers reserve 25 percent of their gross income for a total housing payment. CNNMoney.com offers this rule of thumb: aim for a home that costs about 2 1/2 times your gross annual salary.

Decide how much you can afford for a down payment. Expect any lender to require at least a 10 percent down payment, unless you plan on getting a special program loan such as an FHA loan. A minimum of 20 percent down is typically required to avoid paying mortgage insurance. Having your desired down payment in mind helps you when you start house-hunting, and is a great launching point for a conversation with your lender.

Have your paperwork ready to hand over. Expect to provide enough pay stubs to cover 30 days of employment. If you’re paid weekly, for example, you’ll need the last four. If you are self-employed or have various employers, they may ask to see previous tax returns.

Remember that you can get prequalified by a lender any time just to see where you stand financially. Getting prequalified is nonbinding and informal, but it will give you an idea of the types of homes you will be in the market for when you start your search.

Be sure to shop around for the best rates before making your decision. This is a major financial commitment, and you should be confident you’re working with people who want the best for you.

If you are looking for a great lender, I can recommend one.

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

See ALL available houses at my website!

Licensed in the State of Oregon

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

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***

Gallery

NEW GRESHAM LISTING- 2501 SE Hacienda $259,999

This gallery contains 13 photos.

ON MARKET 3-18-2016 RMLS# 16118431 WELCOME HOME! This gorgeous home features a very open floor plan, 3 full bedrooms, 2 updated & sparkling clean bathrooms, 2 car garage, RV parking, large living room with pellet stove, BIG kitchen with island, … Continue reading

RACHEL IS AWARDED THE FIVE STAR AWARD FOR 2015

5star-logo_2015-2

THANK YOU!!! I have been awarded the FIVE STAR AWARD for 2015. This is for the top 7% of Portland-Metro Agent but this award is especially meaningful because its for ALL AREAS and my 5th year receiving this. I’m really grateful & Honored. Thank you!