Arizona Real Estate News

 

Jan. 25, 2019

Tax Win: IRS Provides Clear Test on How 20% Deduction Applies to Rental Income, Exchanges

Tax Win: IRS Provides Clear Test on How 20% Deduction Applies to Rental Income, Exchanges

 

 

 

 

 

The Internal Revenue Service has issued final rules on the 20 percent business income deduction (Sec. 199A of the Tax Code) that was enacted in late 2017 as part of the Tax Cuts and Jobs Act.

Among other things, the rules confirm that the deduction applies to your business income, as a real estate agent or broker, if you operate as a sole proprietor or owner of a partnership, S corporation, or limited liability company. It applies even if your income exceeds a threshold set in the law of $157,500 for single filers and $315,000 for joint filers. 

In addition, the rules provide guidance that NAR has been seeking on two other provisions of importance to you: 1) whether any real estate rental income you have is eligible for the deduction, and 2) how the deduction applies to properties you've exchanged under Sec. 1031 of the tax code. 

Eligibility of rental income 
If you generate rental property income, that income can also qualify for the new deduction, as long as you can show that your rental operation is part of a trade or business. The IRS has released proposed guidelines that include a bright-line test, or safe harbor, for showing that your rental income rises to the level of a trade or business. Under that safe harbor, you can claim the deduction if your rental activities—which include maintaining and repairing property, collecting rent, paying expenses, and conducting other typical landlord activities—total at least 250 hours a year. If your activity totals less than that, you can still try to take the deduction, but you'll have to be prepared to show the IRS that your activity is part of a trade or business. 

Eligibility of 1031 like-kind exchanges
Under earlier proposed regulations, if your income was above threshold levels set in the tax law—$157,500 for single filers, $315,000, for joint filers—and you had exchanged one property for another to defer taxes under Sec. 1031 of the tax code, the amount of the new deduction might be reduced because of the swap. NAR and other trade groups reached out to the IRS to change this treatment, and the IRS has made that change. Under the final rules, you can use the unadjusted basis of the depreciable portion of the property to claim at least a partial deduction. 

"The final rules are the result of several months of advocacy and collaboration between NAR, our members, and the administration," says NAR President John Smaby. "They reflect many changes that NAR sought to ensure the new 20 percent deduction applies as broadly as possible."

Posted in Selling
Nov. 21, 2018

Happy Thanksgiving from Eric Williamson Realtor

Posted in Market
Nov. 8, 2018

October 2018 Arizona Real Estate Market update

Eric Williamson Realtor
Published by Eric Williamson
3 mins

Eric's take- the buzz right now are the i buyers- which really just is a fix and flip model of business. I find it interesting that the consumers see these services as a "quick way out" of their property and a venue by which they perceive they will net the most money on the sale of their home,this could not be further from the truth. The "ibuyer investor" is making 10's of thousands in flip equity on the property. A properly marketed and exposed property would net the home owner more money every time. I would argue that there are huge equity losses taken by the home owners that sell using these models. I would rather offer lower fees' to compete and adapt to an ever changing real estate market while at the same time providing the professional services and insight a good Realtor can bring to the table.

 

Acces the entire report here- http://armls.com/docs/2018-September-STAT-with-commentary.pdf

 

Posted in Buying
Aug. 21, 2018

Pathway to purchase in back in 2018

Attention Home-buyers!

Are you looking in these zip codes for a new home?

85041,85042,85016,85017,85301 & 85051.

You can now receive a $20,000.00 gift to be used to purchase a primary residence.

You can use the money for down payment or closing costs credit.

You can read all about it here!!!! Pathway to Purchase

There are limited funds available so there is urgency associated with this program.

To see homes that qualify in these zip codes click here-

Homes for sale in 85042

Homes for sale in 85041

Homes for sale in 85016

Homes for sale in 85017

Homes for sale in 85051

Homes for sale in 85301

Pathway to Purchase 1

Posted in Buying
July 9, 2018

June Market update

Market update-
 
Eric's take; We have seen some interesting changes in this appreciating market. With the emergence of the "investor offers" with faces and names like, offer pad, we buy ugly houses and the like they continue to grow their business models and market share. I have said this many times and still feel like homeowners who sell to these types of companies and investors are literally giving away thousands of dollars to clever marketing. Collectively they accounted for 3.05% of the market a small amount over all. Keep in mind their business model only works in an appreciating market which we have been in since 2010.
I still feel like for most people their home is the #1 wealth accumulator over time and people work very hard to earn a paycheck every week, it baffles me why they leave thousands of dollars on the table when selling? I understand convenience but at what cost?
Moving on.... The median house price was reported by ARMLS as $265/k we are back to our peak pricing pre - bubble 12 years ago.
Overall the housing numbers are strong.... very strong! This last year reports the best data on record in 17 years of reporting!
As always thank you for reading and please think of me when buying or selling!
 
read the full ARMLS reports here-
http://armls.com/docs/2018-May-STAT.pdf
http://armls.com/docs/ARMLS-Market-Watch-2018-Q1.pdf
Posted in Market
May 1, 2018

Elk Ridge Lodge

Posted in Selling
April 13, 2018

March Market update

full report here- March Market Update

 

Posted in Market
April 13, 2018

2402 E 5TH ST 1436, Tempe, AZ 85281

2402 E 5TH ST 1436, Tempe, AZ 85281
#justsold #ericwilliamsonrealtor #8281 #Villagio #tempe

http://www.flexmls.com/share/1P9A3/2402E5THST1436TempeAZ85281

 

Posted in Buying
March 14, 2018

33121 N 40TH PL, Cave Creek, AZ 85331

 

33121 N 40TH PL, Cave Creek, AZ 85331 #justsold #ericwilliamsonrealtor #85331 #CaveCreek #DoveValleyRanch #AZAgentPro This single-story home is located on a cul-de-sac at the base of the Phoenix Sonoran Preserve! Step inside and discover an open floor plan highlighting the eat-in kitchen with granite countertops, stainless steel appliances, and a pantry! Travel through the adjacent sliding glass doors and relax under the covered patio while enjoying the grassy backyard. Back inside, the Master suite with a walk-in closet and an ensuite bathroom with a spacious tub. Close to golf, shopping, and dining options!

Posted in Buying
March 6, 2018

6101 E GREENWAY LN, Scottsdale, AZ 85254

 

6101 E GREENWAY LN, Scottsdale, AZ 85254 #justsold #ericwilliamsonrealtor #85254 #Kierland #Scottsdale

Lovely 3 bedroom, 1.75 bathroom Scottsdale home.**Brand new roof!!** Open floor plan with brand new tone paint and carpet. Entry opens to family room with cozy fireplace, wood- look floors, and plantation shutters. Small room with closet off entry possible home office. Kitchen at back of home with breakfast bar, pantry, and NEW stainless steel appliances. Master bedroom with 3/4 en-suite bath plus dual sinks and large closet. Covered patio off back entry overlooks gorgeous grass yard with fenced private pool. Also a storage shed and RV gate. Plenty of room for your toys and entertaining. This rare find won't last long!! A must see!! *Seller recently paid for a 3rd party complete home inspection (attached). Home Inspection is attached including all completed repairs.

 

Posted in Buying