There is More than Just Love in the Air

By
Real Estate Agent with GreatWest Realty DRE# 00827565

http://www.myrljeffcoat.com

 

 

Ah, February 14th - Valentine’s Day.  Each year, I have the feeling there is a little more in the air than benevolent pure love.  

This ‘other' feeling isn't coming from the warm caring feelings of one near and dear with the aid of Cupid's bow.  Instead it arrives with the specter of Tax Forms from our not so ambivalent Internal Revenue Service.


Each year we Americans appear to pay our government more in taxes and come away with less showing from it at the personal level, and each year we attempt to seek out just one more deduction to soften the barb.


It is at this time we realize how much we cherish owning our homes and other real estate holdings as real lifesavers in taxes.  Mortgage interest is still very much deductible as are property taxes.  If you own rental property, you may not only deduct these items, but depreciation, insurance and repairs as well.  

If you are holding a large equity in your present home, chances are your deduction for mortgage interest is very low or virtually non-existent.  Have you ever considered re-financing your home in order to pull out equity to buy an investment property; or perhaps you've wondered about selling and purchasing a more upscale home?  Chances are either of these moves would dramatically improve your tax situation.

If you are considering purchasing an investment property, or if a larger home is in your dream for the future, please contact me.  I look forward to hearing from you!

 

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Topic:
Home Buying
Location:
California Sacramento County
Groups:
Sacramento Real Estate
Bananatude
Bartender, Make it a Double
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real estate investment buying

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Rainmaker
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Using some reserves to purchase investment properties is good advice for many people.

Happy Valentine's Day!

Feb 14, 2018 07:16 AM #4
Rainmaker
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Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

HI Myrl Jeffcoat - this is a time of year that many may be thinking exactly along the lines you are writing about. Happy Valentine's Day.

Feb 14, 2018 07:25 AM #5
Rainmaker
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Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

This is great advice my friend and I actually might look into a refinance in order to purchase an investment property!

Feb 14, 2018 08:08 AM #6
Rainmaker
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Carol Williams
U.S.: I specialize in helping agents who have been in the business 2 years or less create a thriving business. - Wenatchee, WA
"Customized Mentoring & Marketing Services"

Hi Myrl,
There is certainly a lot to love about the tax advantages of owning real estate! 

Feb 14, 2018 08:49 AM #7
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Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

I get it. At first, I thought, what the heck are bringing up taxes for on Valentine's Day? Well played, Myrl.  :) 

Feb 14, 2018 09:43 AM #8
Rainmaker
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JL Boney, III
Coldwell Banker - Columbia, SC
Columbia, SC Real Estate

I am knee deep in doing taxes now. It is a process that I have yet to develop a love for, but I did get the chance to fill out the mortgage interest portion on a few properties.

Feb 14, 2018 09:47 AM #9
Rainmaker
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Myrl,

What a great way to bring up real estate, and I love how you played on those taxes, just for that, I am not going to go to the mailbox today.  Tomorrow is soon enough! 

Feb 14, 2018 09:57 AM #10
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I dream that one day the IRS will give me a picklist form with my tax return that asks me what I want my taxes to pay for.  It's one way to get Congress to listen to what Americans want to fund.  

Feb 14, 2018 10:02 AM #11
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Myrl Happy Valentine's Day.  Hope you get to do something special today!!!

Feb 14, 2018 10:40 AM #12
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Paul S. Henderson, REALTOR®,CRS,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

I wonder how many people let love evolve because it is very rewarding in the scheme of things Myrl Jeffcoat 

Feb 14, 2018 12:21 PM #13
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I have a ton of Californians who rent homes there and who buy investment homes in my city.

Feb 14, 2018 05:24 PM #14
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

We have used that principle for years andI also recommend it to clients. It works.

Feb 14, 2018 06:12 PM #15
Rainmaker
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Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Loved your Valentines Day idea:) pull out some equity and buy and investment property for your Valentine:) Endre

Feb 14, 2018 11:13 PM #16
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Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning again Myrl. This is the irony of February for sure. Hope you had a great day.

Feb 15, 2018 06:56 AM #17
Rainmaker
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Yolanda Cordova-Gilbert
Sitterle Homes - Richmond, TX
Sitterle Homes

Myrl,

 It is that time of year again and Bob is super busy with all this so I totally understand what you are saying. We pay 12K of taxes and with our good friend we just lost @2K and we do not pay as much as others in the area!

Feb 15, 2018 03:41 PM #18
Rainmaker
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Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

We lost much of our property tax deduction, Myrl. All you can deduct is up to $10,000 (whichever is greater over state taxes). I pay property taxes on our house and our house in Hawaii, and they exceed our newly allotted deduction, so rats! You get to choose which you want to deduct. State income or property taxes. And only up to $10K.

Feb 18, 2018 06:59 PM #19
Rainmaker
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Jane Chaulklin-Schott
TEAMCONNECT REALTY - (407) 394-9766 - Orlando, FL
TeamConnect Luxury Homes - Orlando, Florida, 32836

Nice post, Myrl.  Thanks for bringing up the subject on trying to find tax advantages.  As Realtors, it is important to look into any and all  legal ideas and means available to protect our hard-worked for money. 

Feb 18, 2018 10:19 PM #20
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Pat Starnes, Brandon, MS
Front Gate Real Estate - Brandon, MS
Broker Associate, ABR, 601-278-4513

I haven't received tax forms in the mail for years! That's because my CPA gets them. :) 

Our interest deduction is probably the largest deduction we are eligible for. Investment purchases by a cash-out refinance or even a HELOC is a wise investment decision.

Feb 22, 2018 07:45 AM #21
Rainmaker
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Patricia Feager
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

Myrl Jeffcoat - you are so wise, witty, and simply wonderful! Creativity flows through you well and you stimulate creative ways to increase equity. I love your idea!

Feb 23, 2018 06:18 PM #22
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Paul S. Henderson, REALTOR®,CRS,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

I was lucky the spend valentine's Day in sunny Palm Springs with my sweetheart of 38 years Myrl Jeffcoat 

Mar 07, 2018 01:45 PM #23
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Myrl Jeffcoat

Greater Sacramento Real Estate Agent
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