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What's This 3.8% Tax
Anyway?
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According to the National Association of Realtors, here are the top
10 Things You Need to Know About the 3.8% Tax
* 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. * 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. * 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. * 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. * 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). * 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. * 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. * 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.
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Wednesday, November 14, 2012
The 3.8% Tax - News from the National Association of Realtors
November 2012 Summit County Colorado Good Deals
The good deals are disappearing. For many months now I have been featuring good deals by pulling out of our MLS those listings that are bank owned, foreclosures, REO, short sales, along with those that have motivated sellers and say "bring all offers." In the past I would have as many 75 properties in the search. This month, there are 14. While there still are good deals to pick up, it's like being 2 hours late to the Filene's Basement Annual Bridal Sale. What's left are the ugly dresses or those that need a lot of work.
Click on the link below to see the good deals!
RES - Client Detail Report
Click on the link below to see the good deals!
RES - Client Detail Report
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| www.123rf.com - photo credit. |
Summit County Real Estate Notes
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| Breckenridge, CO 80424 |
With
respect to the Summit County residential market, as I have been saying for
months now, we are seeing a slow and steady climb out of the recession pit. I
am seeing well-priced properties moving and buyers who think they have plenty of
time, may lose their top property picks to another buyer. Also, buyers who try
to "push the envelope" too far will not get the concessions they could have
expected only a short time ago. Noticeable price
appreciation isn't happening just yet, but distressed properties are all but
gone, and as sales continue, prices will climb. With interest rates at all time
lows, it's the "perfect storm" buying opportunity: low interest rates,
pre-appreciation pricing, and just out of the bottom timing.
Another
sign of recovery is the fact that vacant land is the one sector where we are
seeing price appreciation. Builders and developers are feeling confident that
the market is returning. New construction is appearing in Summit County and
when it is completed, developers are hopeful the market will have
returned.
Amy Nakos, JD, GRI
anakos@yourcastle.org
970-389-8388
Summit County Colorado Real Estate Market Statistics - November 2012
Real
Estate Statistics
September 2012 best month of 2012.
Vacant land average price increase;
higher priced residential sales increase.
August 2012 had a total of 129 residential improved transactions, with a total dollar volume of $61 million up from July’s 99 transactions and $51.7 million in dollar volume. September 2012 had a total of 124 residential transactions with dollar volume at $77.6. While there were less transactions in September than in August, the dollar volume was up $16M or a 27% increase.
Dollar volume for all types of
property was $68.8M in August, up from July’s $63.1M. August 2012 total dollar
volume was up 4% from August 2011 dollar volume which came in at $65.9M – a
steady increase, divergent from July’s increase of 77% over the previous year. August’s total number of transactions came in
at 159, up 33 from July’s 126. September’s
total for all real estate was $88.1M with a total of 158 transactions.
September dollar volume year over year increased by 10% while the number of transactions
year over year went down by 1 transaction, indicating that the average price
for property sales are increasing.
October 2012 residential sales
from our MLS indicate 135 residential properties sold with dollar volume at $73.3
million – a nice jump from June and July. Most of the August closings fall within the
$100K-$600K price range.
August’s strongest price point was the $200,000-$300,000
price range with 28 total sales. The
$400,000-$500,000 price point came in second with 21 sales and the $300,000-$400,000
price point had 20 sales. With more
higher priced properties closing, the $500,000-$600,000 price point closed
August with 17 sales.
September showed an interesting trend of 11
properties closing in the $1.0-$1.5M price range. As usual, the leaders in sales volume was the
$200,000-$300,000 price point at 24 sales, the $300,000-$400,000 price point at
21 sales, under $200,000 at 14 sales and the $600,000-$700,000 price point at
13 sales.
Average prices from 2006 to 2011 are as follows;
2012 numbers are year to date averages through September 2012:
Single Family Homes:
2006 - $737,253
2007 - $798,889
2008 - $835,803
2009 - $905,030
2010 - $770,797
2011 - $734,262
2012 - $758,340
Multi Family:
2006 - $333,501
2007 - $406,529
2008 - $463,633
2009 - $398,051
2010 - $425,080
2011 - $367,280
2012 - $360,718
Vacant Land:
2006 - $311,951
2007 - $391,587
2008 - $470,260
2009 - $399,025
2010 - $336,625
2011 - $246,478
2012 - $314,185
As of November 7, 2012, there
are 1,177 active residential listings in Summit County
With respect to residential listings, average days on the market is 397; median days on the market is 230 – these numbers jumped from September given the fact that many properties were taken off the market.
Our MLS is showing 212 residential properties currently Pending with a total dollar volume of $98.9M.
According to Summit County
Industry experts also say that more than 6
months of inventory is a sign of a weak or “buyers” market. With 124 residential
properties selling in September and inventory of 1,177, it will take around 9.49
months to sell the entire residential inventory.
Below are the total dollar amounts of sales in September
from 2004 to 2012:
September 2004 $116.1M
September 2005 $161.3M
September 2006 $219.9M
September 2007 $168.7M
September 2008 $127.1M
September 2009 $81.0M
September 2010 $78.2M
September 2011 $79.8M
September 2012 $88.1M
September 2004 $116.1M
September 2005 $161.3M
September 2006 $219.9M
September 2007 $168.7M
September 2008 $127.1M
September 2009 $81.0M
September 2010 $78.2M
September 2011 $79.8M
September 2012 $88.1M
Total Dollar Volume for 2004-2011 is as follows:
2004 $1.12B
2005 $1.47B
2006 $1.63B
2007 $1.63B
2008 $1.06B
2009 $683M
2010 $698.4M
2011 $684.2M
The year 2006 had the most dollar volume totaling $1,637,874,800.
If you would like to see the statistics from
Land Title that provides the source for this newsletter, here is a link:
What does all of this mean to
you?
Buyers: Higher priced inventory is moving through the
sales process as lower priced inventory continues to disappear. Vacant land costs have taken a jump and
developers are building new product, feeling bullish that when their projects
are done, demand will be in place to purchase the new units. As each day
passes, you will see that prices will continue to increase and desirable, well
priced product will be purchased quickly.
Sellers: Certain market segments are moving quickly
and others are still stagnant. If you
purchased at the height, don’t expect to recoup your costs anytime soon. If, however, you have been thinking about
selling for some time, there is a chance that your property might be able to
bring you a return.
Tuesday, September 18, 2012
Summit County Real Estate Market - Slow and Steady Stabilization
Slow and
Steady Stabilization
The aspens are changing color and the summer has come to an
end. Sure signs are that football season is here, the smell of
burning wood is in the air, and my warm weather-loving dog doesn't
want to go outside in the morning because it's cold.
This spring, I noted that Summer 2012 would tell the story of
whether the Summit County real estate market was in a recovery. July
numbers showed signs of improvement with July 2012 increasing 77% in dollar
volume over July 2011. August closings as shown in MLS will prove to
increase over July. It appears that our market is in a stabilization
stage and that improvements are happening slowly. For a Summit Daily
news article discussing the current valuations of the Summit County real
estate market according to the county assessor, click
here.
If you are
looking to get in on sale pricing for Summit County real estate, there aren't
many more clearance sales.
And as I mentioned last month, good deals, featuring bank owned,
short sales, and motivated sellers, continue to shrink every month, indicating
that our distressed inventory is whittling away. I recall at one
time having over 50 properties in the mix, but in September we are down to
26. Once distressed properties are cleared out of the market, we
will begin to see a recovery of market priced properties.
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Good Deals September 2012 - Summit County Colorado Real Estate
September good deals feature Bank
Owned, REO, Foreclosures and Short Sales along with Motivated
Sellers! If you are looking for a great deal in Summit County,
start here!
As I mentioned above, the good deal list is
SHRINKING!!!! Act now or forever hold your peace.
RES - Client Detail Report
Summit County Colorado Real Estate Statistics September 2012
Real
Estate Statistics
July 2012 dollar volume increases 77% from July 2011.
Pending Properties increase to over $150M.
July 2012 had a total of 99 residential improved transactions, with a total dollar volume of $51.7 million up from June’s 85 transactions and $47.5 million in dollar volume.
Dollar volume for all types of
property was $63.1M in July, up from June’s $52.1M – an increase of 21.1%. July
2012 total dollar volume was up 77% from July 2011 dollar volume which came in
at $35.5M. July’s total number of
transactions came in at 126, up 17 from June’s 109.
August 2012 residential sales
from our MLS indicate 135 residential properties sold with dollar volume at $73.3
million – a nice jump from June and July. Most of the August closings fall within the
$100K-$600K price range.
July’s strongest price point was the $200,000-$300,000
price range with 21 total sales. The
$300,000-$400,000 price point had 15 sales, and the under $200,000, $400,000-$500,000,
and $500,000-$600,000 price points all had 12 sales..
Average prices from 2006 to 2011 are as follows;
2012 numbers are year to date averages through June 2012:
Single Family Homes:
2006 - $737,253
2007 - $798,889
2008 - $835,803
2009 - $905,030
2010 - $770,797
2011 - $734,262
2012 - $720,254
Multi Family:
2006 - $333,501
2007 - $406,529
2008 - $463,633
2009 - $398,051
2010 - $425,080
2011 - $367,280
2012 - $364,389
Vacant Land:
2006 - $311,951
2007 - $391,587
2008 - $470,260
2009 - $399,025
2010 - $336,625
2011 - $246,478
2012 - $291,947
As of September 10, 2012, there
are 1,507 active residential listings in Summit County
With respect to residential listings, average days on the market is 368; median days on the market is 211 – these numbers dropped slightly from last month.
Our MLS is showing 259 residential properties currently Pending, up 30 from 229 last month, with a total dollar volume of $152.3 million, up from $129.2 million. As can be expected, pending properties at the end of the summer selling season have increased.
According to Summit County
Industry experts also say that more than 6
months of inventory is a sign of a weak or “buyers” market. With 99 residential
properties selling in July and inventory of 1,507, it will take around 15.2
months to sell the entire residential inventory.
Below are the total dollar amounts of sales in July
from 2004 to 2012:
July 2004 $89.3M
July 2005 $122.0M
July 2006 $122.1M
July 2007 $138.3M
July 2008 $80.6M
July 2009 $47.4M
July 2010 $38.6M
July 2011 $35.6M
July 2012 $63.0M
July 2004 $89.3M
July 2005 $122.0M
July 2006 $122.1M
July 2007 $138.3M
July 2008 $80.6M
July 2009 $47.4M
July 2010 $38.6M
July 2011 $35.6M
July 2012 $63.0M
Total Dollar Volume for 2004-2011 is as follows:
2004 $1.12B
2005 $1.47B
2006 $1.63B
2007 $1.63B
2008 $1.06B
2009 $683M
2010 $698.4M
2011 $684.2M
The year 2006 had the most dollar volume totaling $1,637,874,800.
If you would like to see the statistics from
Land Title that provides the source for this newsletter, here is a link:
What does all of this mean to
you?
Buyers: Have you missed the summer buyer season? There is still time in September to take
advantage of properties on the market before the winter rental season
approaches and sellers take their properties off the market. We have seen an uptick in sold properties in
July, and pending properties as of early September. This summer has seen some improvements since
the recession and if the trend continues, the winter months will hold strong
with steadily increasing sales. This summer
may be the last summer to take advantage of the softening market created by the
recession.
In this article, I have provided an expert’s
analysis of the Denver metro market from Charles
Roberts, managing broker of Your Castle Real Estate in Denver . Your Castle Real Estate conducts
extensive statistical market research in the Denver
market and provides timely analysis on the Denver metro marketplace. Understanding that
the Summit County resort market historically lags behind the Denver market by
12-18 months, and with the Denver market being “red hot,” it may be the right
time to consider purchasing a Summit County property. Next summer you might be said, “Shoulda,
coulda, woulda.”
Sellers: I just got off the phone with a broker whom I
respect and enjoy speaking with and she said the funniest thing: “Good sellers make good sellers because they
want to be good bye-ers.” I
could not have said it better myself!
Today I saw a new listing come across my desk and two years ago it was
listed for $339,000 and today it came on the market for $249,000. That’s right, a decrease of $90,000 or almost
27%. If you are a seller who wants to be
a good bye-er, you need to have the same mindset. We are seeing more transactions taking place,
but we still have over 15 months of inventory, which means your property has a
one in 15 chance of selling each month. If you can wait it out, and don’t need to be a
good-bye-er, trends indicate that the market is improving, and you may be able
to get a higher price for your property next summer. As always, I continue to see beautifully
remodeled properties, that aren’t inflated too radically because of the
remodel, sell first. Buyers don’t want a
project when they are buying their second home – they want to move in, and head
to the slopes.
As always, thank you to Land Title Guaranty
Company and Brooke Roberts for these amazing statistics! www.ltgc.com.
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