Mike’s Real Estate Show

Proposition 8 which allows for a reduction of your property taxes due to market values going DOWN. This is a nightmare for every county government budget! This is happening throughout the state with the major areas being Sacramento, Fresno, Modesto, Stockton and many, many other communities. Here in Sonoma County I have seen property values drop 30-50% over prices sold in 2004,2005. But here’s the issue–you have to get the County to re-appraise your property and get your valuation down. They have rules for this.  The biggie is they need to see a major downward “trend” in your neighborhood. We have areas of the Southwest/Northwest of Santa Rosa which took major hits and are ground zero for foreclosure activity. The assessor is finally acknowledging this and is accepting the wide price adjustments. However, one foreclosure on the Eastside in a neighborhood will NOT be used as a comparable for the assessor in re-appraising a property. You need to show a thread of sales at lesser prices than the subject property. Read the rest of this entry »

   Capital Gains Tax 
Q 18.  What are the basic capital gains tax rates?

A  The 2003 Act reduced the maximum rate on the net capital gains rate of an individual (net long-term capital gains less net short-term capital losses) from 20 percent to 15 percent.  Net capital gains previously taxed at 10 percent were reduced to 5 percent.

Q 19.  Has the holding period for long-term capital gains changed?

A  In order to qualify for long-term capital gains treatment, property must be held for more than 12 months. Read the rest of this entry »

We had a listener who had purchased a retirement home in Ashland, Oregon but has second thoughts and has decided to stay here in Sonoma County. Unfortuneatly she refinanced her home down here and does not like having a rental in Ashland and her home with a big mortgage on it down here. She thought she could sell and pay off her loan with no tax consequences–NOPE! Ain’t gonna happen. I referred he to frequent show guest Christine Cromwell of Cromwell Bookkeeping. Christine is an “Enrolled Agent” and knows her stuff. Christine’s number is: 707-544-0606 and she is located at 1516 4th Street right here in Santa Rosa. Read the rest of this entry »

Tax Law Changes for 2008 from my friend Pam Winterbauer–Obviously you should rely on your Tax Professional for any Tax Advice but this may provide you with some questions.

One of the questions that I am asked most frequently at the beginning of the year is “What tax changes have been made this year?”  First, there really are not too many changes to report this year other than the usual increase in standard deduction rates and personal exemption amounts.  There are however, a number of provisions in the tax code that would have expired had not congress voted to extend them.  They are: Read the rest of this entry »

I took this quote from a blog regarding the plight of the homeowner in New Jersey and New York.

“Homeowners in western New Jersey’s Hunterdon County. Last year, the median yearly property tax bill amounted to a whopping $7,999 here, according to the Tax Foundation, a nonpartisan research group in Washington, D.C, which compiled data based on 2006 figures.

Things aren’t much better in New York. In Nassau County, Long Island, the median homeowner drops $7,706 a year, while up north, Westchester County residents pay $7,626 a year.

In fact, New York and New Jersey residents can expect to pay up to $6,500 more in yearly property taxes than the national average. The reason: The region’s homes are among the priciest in the country, and tax rates there are high as well. Read the rest of this entry »

Proposiion 8, Decline In Market Value

Property tax assessment review process

County property tax assessments may be reduced by meeting the following criteria: Read the rest of this entry »

A first look at tax rates and deductions for April 15th. It’s not too early to learn what’s ahead!

First In Our Tax Prep Series

Most homeowners will see some tax relief next April 15th as Congress has extended some tax programs and others are set to be “indexed” to provide for more relief. Unlike many changes to the tax laws, which are in effect for only limited periods of time, indexing has become a settled part of the tax code, according to George Jones, JD, CCH senior tax analyst.

“Some tax cuts in recent years are only temporary, and are scheduled to be followed by increases down the line, indexing works year after year, and it’s likely to be a part of the tax laws for the foreseeable future irrespective of whether Congress plans to tinker more with the tax rates themselves,” Jones noted. Read the rest of this entry »