HotelDel DownTown Sunset

 

 

Greetings from Jennifer Ross -  Realtor

 

The summer flew by and I can't believe the holidays are almost here! Real estate has kept me hopping but I managed a couple of fun vacations to the wine country & Santa Barbara.  I remodeled a 1929 Tudor home from top to bottom, then moved into the home...never a boring moment!
 
My daughter "Alex" is back in New York at Syracuse University getting ready for her second semester of school in Florence Italy!  I hope to join her in the spring for a couple of weeks.  My son Eliot is training in biopharmaceutical I.T. and seems to be enjoying his new job.
 
I'm looking forward to my favorite holiday, Halloween - I love dressing up, eating chocolate and watching the kids!

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WineThe Winner of This Month's Drawing Is... 

 

Laura and Joe Towers!

Laura and Joe have won a $50 restaurant gift card. Congratulations!


The next drawing will be in a few weeks......

 

 

News & Views 

 

The National Association of Realtors reports the median list price of a home in San Diego County hit $374,995 in September, a 4.16 percent increase from a year ago. Perhaps the most interesting item in the report showed the active inventory of homes for sale in San Diego last month was 9,519 units, down nearly 35 percent from last year at this time.

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It looks like the housing construction sector is coming back to life. The Commerce Department reported this week new home construction activity rose by 15 percent in September to an annualized rate of 872,000 units, the highest level in four years. Also, building permits, a sign of future construction activity, were up 11.6 percent with the biggest increase in multifamily housing. Housing construction has been the missing link in the economic recovery. Building is a big jobs generator and the benefits to related industries -- like home improvement centers -- has an immediate impact on the economy.

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Here's my favorite story of the day: Beth Feeback, an artist in North Carolina, paid $10 for two paintings at a Goodwill store. She was really buying the canvases because they were cheaper than new ones and she figured it would be easy to paint over what was already there. Fortunately she decided to Google the name of the artist on the paintings and it turned out Ilya Bolotowsky is a rather well-respected artist and Sotheby's told Feeback the paintings are worth up to $20,000.

 

 

Top Ten Things You Need to Know About the 3.8% Tax   


Beginning January 1, 2013, a new 3.8 percent tax on some investment income will take effect. Since this new tax will affect some real estate transactions, it is important for us to clearly understand the tax and how it could impact us. It's a complicated tax, so you won't be able to predict how it will affect every buyer or seller.


Understand that this tax WILL NOT be imposed on all real estate transactions, a common misconception. Rather, when the legislation becomes effective in 2013, it may impose a 3.8% tax on some (but not all) income from interest, dividends, rents (less expenses) and capital gains (less capital losses). The tax will fall only on individuals with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000 AGI.

  1. When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will NOT be subject to this tax.
  2. The 3.8% tax will NEVER be collected as a transfer tax on real estate of any type, so you'll NEVER pay this tax at the time that you purchase a home or other investment property.
  3. You'll NEVER pay this tax at settlement when you sell your home or investment property. Any capital gain you realize at settlement is just one component of that year's gross income.
  4. If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax return)/$500,000 (married filing joint tax return) exclusion on the sale of that home. If your capital gain is greater than these amounts, then you will include any gain above these amounts as income on your Form 1040 tax return. Even then, if your total income (including this taxable portion of gain on your residence) is less than the $200,000/$250,000 amounts, you will NOT pay this tax. If your total income is more than these amounts, a formula will protect some portion of your investment.
  5. The tax applies to other types of investment income, not just real estate. If your income is more than the $200,000/$250,000 amount, then the tax formula will be applied to capital gains, interest income, dividend income and net rents (i.e., rents after expenses).
  6. The tax goes into effect in 2013. If you have investment income in 2013, you won't pay the 3.8% tax until you file your 2013 Form 1040 tax return in 2014. The 3.8% tax for any later year will be paid in the following calendar year when the tax returns are filed.
  7. In any particular year, if you have NO income from capital gains, rents, interest or dividends, you'll NEVER pay this tax, even if you have millions of dollars of other types of income.
  8. The formula that determines the amount of 3.8% tax due will ALWAYS protect $200,000 ($250,000 on a joint return) of your income from any burden of the 3.8% tax. For example, if you are single and have a total of $201,000 income, the 3.8% tax would NEVER be imposed on more than $1,000.
  9. It's true that investment income from rents on an investment property could be subject to the 3.8% tax. BUT: The only rental income that would be included in your gross income and therefore possibly subject to the tax is net rental income: gross rents minus expenses like depreciation, interest, property tax, maintenance and utilities.
  10. The tax was enacted along with the health care legislation in 2010, and the NAR remains hopeful that it will not go into effect.

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As always, feel free to give me a call 800-913-7677 with your real estate needs.  I appreciate your referrals.
 
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Acedemic Earth 

 

Jennifer Ross

 

Experience Counts!
Over 23 years in
Real Estate sales
Serving all of San Diego

 

Office: 800.913.7677
Direct: 619.985.7340
JennRossRealtor@gmail.com

 

 

 

 

Current Mortage Rates

 (BankRate.com weekly avg)

 30 yr fixed: 3.62%

15 yr fixed: 2.91%

 

 

 

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