What Really Impacts Housing Prices?
by David Krebsbach
read the full article...
Friday, March 23, 2007
Sunday, February 25, 2007
Your Money
Excerpted from the Chicago Tribune
Sunday, February 25, 2007
Q: I own a condo and have been renting it to my parents. I have been deducting interest and taxes as an expense on my taxes, but I never took depreciation. I assumed that if I did, I would be setting myself up for some enormous tax bill when I sold it. Your recent column seemed to suggest I was making a mistake.
-- D.G., Chicago
A: Yes, you have been making a mistake. But you can correct it now. When you rent out a condo or are using a portion of your home to conduct business regularly, you are entitled to take depreciation. In other words, at tax time, you receive a deduction for the wear and tear on the value of your property. Year after year, you deduct a portion, and that can lower your taxes.
Some people don't deduct depreciation because they worry -- like you have -- about incurring a giant tax bill when selling the property. But you only hurt yourself with this approach. You miss out on a deduction you could use to lower your taxes each year you have the property. Then, when you sell, the IRS assumes you have been depreciating the property, even if you didn't. So you have to pay taxes on the amount you should have depreciated anyway.
If your mistake is only in the past three years, you can file amended tax returns, and maybe get some money back from the IRS.
Don't kick yourself, however, for making a mistake. Only about 22 percent of people with investment property actually depreciate it. One reason is because calculating depreciation is complex. But never fear, TRexGlobal.com is here.
It's a new, free Web site that operates like tax software such as TurboTax, only it concentrates on the complexities of depreciation and does the calculations for you in a snap.
Started by Pankaj Shukla and Narinder Sandhu, who worked for TurboTax's parent, the two blended their real estate investing backgrounds with tax software design.
Their tool, called "Depreciate 'Em," is as easy as tax software to use. It can save you thousands of dollars because it doesn't simply calculate depreciation one way. It does it multiple ways for various items that make up your property.
What you might not realize is that if you have residential rental property, you depreciate your stove one way and patio another. Even the water pipes and shrubbery have their own depreciation schedule. You depreciate the value of the water pipes over 27.5 years, but the shrubbery gets 15 years.
Obviously, doing this by hand could be maddening. But to use "Depreciate 'Em," you simply start with your closing statement from your property purchase, match words from the statement to the choices on the Web site, and the calculators do the work for you. Even your settlement costs work for you.
Then you move to items in the property. Say you have a clothes dryer, but lack a receipt. The site shows you the range of prices in the market for dryers -- from $281 to $674. The site shows you that the midpoint for dryers is $484, which you could surmise could be acceptable to the IRS.
Contact Gail MarksJarvis at gmarksjarvis@tribune.com or leave a message at 312-222-4264.
Copyright © 2007, Chicago Tribune
Sunday, February 25, 2007
Q: I own a condo and have been renting it to my parents. I have been deducting interest and taxes as an expense on my taxes, but I never took depreciation. I assumed that if I did, I would be setting myself up for some enormous tax bill when I sold it. Your recent column seemed to suggest I was making a mistake.
-- D.G., Chicago
A: Yes, you have been making a mistake. But you can correct it now. When you rent out a condo or are using a portion of your home to conduct business regularly, you are entitled to take depreciation. In other words, at tax time, you receive a deduction for the wear and tear on the value of your property. Year after year, you deduct a portion, and that can lower your taxes.
Some people don't deduct depreciation because they worry -- like you have -- about incurring a giant tax bill when selling the property. But you only hurt yourself with this approach. You miss out on a deduction you could use to lower your taxes each year you have the property. Then, when you sell, the IRS assumes you have been depreciating the property, even if you didn't. So you have to pay taxes on the amount you should have depreciated anyway.
If your mistake is only in the past three years, you can file amended tax returns, and maybe get some money back from the IRS.
Don't kick yourself, however, for making a mistake. Only about 22 percent of people with investment property actually depreciate it. One reason is because calculating depreciation is complex. But never fear, TRexGlobal.com is here.
It's a new, free Web site that operates like tax software such as TurboTax, only it concentrates on the complexities of depreciation and does the calculations for you in a snap.
Started by Pankaj Shukla and Narinder Sandhu, who worked for TurboTax's parent, the two blended their real estate investing backgrounds with tax software design.
Their tool, called "Depreciate 'Em," is as easy as tax software to use. It can save you thousands of dollars because it doesn't simply calculate depreciation one way. It does it multiple ways for various items that make up your property.
What you might not realize is that if you have residential rental property, you depreciate your stove one way and patio another. Even the water pipes and shrubbery have their own depreciation schedule. You depreciate the value of the water pipes over 27.5 years, but the shrubbery gets 15 years.
Obviously, doing this by hand could be maddening. But to use "Depreciate 'Em," you simply start with your closing statement from your property purchase, match words from the statement to the choices on the Web site, and the calculators do the work for you. Even your settlement costs work for you.
Then you move to items in the property. Say you have a clothes dryer, but lack a receipt. The site shows you the range of prices in the market for dryers -- from $281 to $674. The site shows you that the midpoint for dryers is $484, which you could surmise could be acceptable to the IRS.
Contact Gail MarksJarvis at gmarksjarvis@tribune.com or leave a message at 312-222-4264.
Copyright © 2007, Chicago Tribune
Thursday, February 22, 2007
Press Release: LAS VEGAS, NV (Feb. 14, 2007)
Local Agent at KELLER WILLIAMS REALTY - ALLEN, TX
Speaks at Las Vegas Real Estate Convention...
The Allen, Texas office of Keller Williams Realty was represented by several of its top producing agents at their annual real estate convention in Las Vegas with over 9,000 attendees on February 12-15. David Krebsbach, one of the Allen offices's Top 20% producers and a member of their Agent Leadership Council, was a speaker at an investment training session titled, "How to Build an Investor Client Base."
Mr. Krebsbach is a local Realtor and real estate investment specialist, helping many people "Invest in TEXAS!" He has mentored many new investors to get their real estate wealth building program started, and frequently works with out-of-state investors. He has also spoken several times in recent months at local investor trade group meetings in Dallas.
For more information about real estate investing, visit www.QuadStarRealty.com.
Speaks at Las Vegas Real Estate Convention...
The Allen, Texas office of Keller Williams Realty was represented by several of its top producing agents at their annual real estate convention in Las Vegas with over 9,000 attendees on February 12-15. David Krebsbach, one of the Allen offices's Top 20% producers and a member of their Agent Leadership Council, was a speaker at an investment training session titled, "How to Build an Investor Client Base."
Mr. Krebsbach is a local Realtor and real estate investment specialist, helping many people "Invest in TEXAS!" He has mentored many new investors to get their real estate wealth building program started, and frequently works with out-of-state investors. He has also spoken several times in recent months at local investor trade group meetings in Dallas.
For more information about real estate investing, visit www.QuadStarRealty.com.
Monday, February 19, 2007
The Secret...
What is the Secret!?
Watch this movie online or buy the DVD. It teaches how the Law-of-Attraction will influence your life and outcomes. I also hear the audio CD version is even better - contains more content than the movie/DVD.
If anyone has seen the movie or heard the audio CD, give us an overview of highlights and lowlights.
Watch this movie online or buy the DVD. It teaches how the Law-of-Attraction will influence your life and outcomes. I also hear the audio CD version is even better - contains more content than the movie/DVD.
If anyone has seen the movie or heard the audio CD, give us an overview of highlights and lowlights.
Recommended Reading List (business, marketing, personal growth and real estate)...
Here is a great list of recommended books to read. It includes business, marketing, personal growth, and real estate topics...
Millionaire Real Estate Agent
Millionaire Real Estate Investor
FLIP - How to Find, Fix and Sell Houses for a Profit
Gary Keller and Dave Jenk's recommended reading list <-- great list!
Post Comments on your Fav's...
Millionaire Real Estate Agent
Millionaire Real Estate Investor
FLIP - How to Find, Fix and Sell Houses for a Profit
Gary Keller and Dave Jenk's recommended reading list <-- great list!
Post Comments on your Fav's...
Sunday, February 18, 2007
Where to Do Your Research Before You Invest!?
Here is an investor Research Link you can use to find extensive information about various local Dallas, TX communities in which you might consider investing.
Dig through the link list thoroughly - there are many resources available, including those at the bottom of the list.
Dig through the link list thoroughly - there are many resources available, including those at the bottom of the list.
Top 10 Reasons to Invest in TEXAS!
1. Low Interest Rates - (currently we all have historically low interest rates - a great time to buy/invest).
2. Buyer's Market - (the local Dallas, TX area is still in a Buyer's market - a great time to buy/invest while prices are still low).
3. Price Discounts - (some local Builders and Sellers are accepting price discounts for investors).
4. Low Closing Costs - (local Builders and Sellers sometimes pay part or all of the Buyer's closing costs).
5. Stable Economy - (the Dallas, TX market has a very stable economy and real estate market).
6. Growth - (the Dallas, TX market is currently experiencing very strong growth - supported by population growth, new employment, road construction, commercial/residential construction, etc).
7. Timing - (many parts of the U.S. have already peaked in price and investors are selling at a profit to re-invest their $$$ in the Dallas, TX market; a.k.a. Buy Low, Sell High... then Repeat).
8. Rental Rates - (the Dallas, TX rental market supports favorable rental rates to generate cash flow. e.g.: a typical $150k SF home rents for $1100-$1300/mo. And property taxes are being reduced again in 2007).
9. Property Management - (access to full-service property managers offers you freedom of time and worry).
10. Killer Resource - (you have found an investor-savvy Realtor team that makes it all happen for you)!
And, if that’s not enough reasons, here’s a few more…
· Texas enjoys being the 1st or 2nd top state in the U.S. for NET influx of people!
· A 2006 article identified the Dallas area as one of the 2-3 most undervalued cities in the U.S! No real estate bubble here in our local market!!!
· Texas is very "landlord friendly."
· Texas has one of the best "Affordability Index" ratings, which means more residents (over 60%) can afford to rent / buy compared to most cities.
2. Buyer's Market - (the local Dallas, TX area is still in a Buyer's market - a great time to buy/invest while prices are still low).
3. Price Discounts - (some local Builders and Sellers are accepting price discounts for investors).
4. Low Closing Costs - (local Builders and Sellers sometimes pay part or all of the Buyer's closing costs).
5. Stable Economy - (the Dallas, TX market has a very stable economy and real estate market).
6. Growth - (the Dallas, TX market is currently experiencing very strong growth - supported by population growth, new employment, road construction, commercial/residential construction, etc).
7. Timing - (many parts of the U.S. have already peaked in price and investors are selling at a profit to re-invest their $$$ in the Dallas, TX market; a.k.a. Buy Low, Sell High... then Repeat).
8. Rental Rates - (the Dallas, TX rental market supports favorable rental rates to generate cash flow. e.g.: a typical $150k SF home rents for $1100-$1300/mo. And property taxes are being reduced again in 2007).
9. Property Management - (access to full-service property managers offers you freedom of time and worry).
10. Killer Resource - (you have found an investor-savvy Realtor team that makes it all happen for you)!
And, if that’s not enough reasons, here’s a few more…
· Texas enjoys being the 1st or 2nd top state in the U.S. for NET influx of people!
· A 2006 article identified the Dallas area as one of the 2-3 most undervalued cities in the U.S! No real estate bubble here in our local market!!!
· Texas is very "landlord friendly."
· Texas has one of the best "Affordability Index" ratings, which means more residents (over 60%) can afford to rent / buy compared to most cities.
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