Mar 13, 2016|
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This it's real estate today. The number one the real estate show. The radio. Two real estate today. Backed by the professional experience of real tours from across America who are your most trusted source on the radio for help today real estate information. Real estate today is presented by the national association of real tools in Israel from members in your neighborhood. Hi there I'm Stephen gas weigh in if you are home buyer of home seller for a homeowner and you wanna save some money this is the show for you. Tax time. We're looking at all the tax benefits of owning a home. And making sure you know about every deduction available to you. So you can save as much money as possible when you find. And by the way did you know that this year it's not April 15. We'll have that story coming up tax time is straight ahead. But first let's go to the real estate today newsroom with Bill Thompson. Freddie Mac reported two basis point increase from the previous week although rich remain historically low. Economists tell the Associated Press there are positive signs in the new data. Stocks have begun to recoup losses bringing a decline in bond prices that means higher bond yields which mortgage rates follow. The AP reports most experts don't expect the Fed to raise short term interest rates again any time soon. Why do some homes sell so much faster than others. The number crunchers are REALTOR.com. Studied millions of recent home listings to try and identify the specific features that make some homes red hot. Here's what they found a great view is great for a quick sale interestingly Holmes with a view of a city skyline excelled fast. Stainless steel and granite big tractors and a quick sale of fireplace not so much these days. A prime location within a tractor basking press will also get to lots of page views and a quicker than average sale. And traditional style homes still draw the most buyers. You may not need all home yet to take advantage of Smart home technology. Portland based I noticed once you bring it to your apartment building. Curb dot com reports that the I noticed model provides consumers with services instead of hardware. Save pike is company's CEO and founder. What we do is we go in and how to actually be part of your infrastructure and at a party set up for you so when you move into. A specific location that I notice enabled. It's are you ready to. I notice is opening up the technology to millennial sword not only early adopters but who are less likely to be in the market soon for single family home. New Orleans is one of the city's identified last year by REALTOR.com as one of the top ten markets for millennial homebuyers. Mortgage specialist Scott frankly. Told WD SUTV that millennial in the Big Easy or a natural fit. Memorials are moving down in droves right now it's it's quite amazing. I find that there's one word that I played with more meals that really reflects. Their mentality which is resilient and and that best suits nor audits are resilient community. And got to have a high high culture and low cost way of life is really want to feel like they're they're moving here and won't in droves. Brinkley says his main message from millennial zoo is buying a home in New Orleans is not outside of your reach. Coming up and half an hour what baby boomers say they really want and home. Stephen back to you thanks bill. We have some brand new information for you know. About the nation's real estate markets and how he buyers and sellers age. Can affect what kind of property they're looking for and how they go about buying them. Fascinating information contained in a brand new report for many are called generational trends. Let's talk about those new findings now with Jessica left managing director of survey researcher and communications. At the national association of real tours. Jessica thanks for joining us today. Jessica first of all looking at people who buy and sell real estate. You examined at five different generations. From the millennial on the youngest side. To what you call the Silent Generation on the oldest side can you tell us who's in each of those groups. There out there lead to a mile Camelot ilk are looking at and it we're thirty I think I'm Eric are jam packed period are dirty pick that they eat. Are younger than repeat a bite out say younger than written all of them are apparent penchant for it becomes a typical approach into the little bit and our younger boomers are. If you want it eat our orbit that respect on the I. Our island federation at Abbott. And Jessica of all those groups who's doing the most buying and selling. A realist eight. To our jet fired power millennial youth that are interchangeably at ever art. Are actually are archived category at buyers 35 and had not been treated at that Eric back in year out we heard Chad act. Are older than our church you know artist category that Allard and they are merely would eat technique at when he aren't when he I respect. In the XTE that there originate Greek ill Alley but they're repent for Alec are obviously much different from each other and then much different RY gen Y or are actually I. So if we can Parse their for a minute what are some of the differences in the reasons that they decide to self. Jerry you've heard Chad act. Act period they opted out children and our homes pay off and I have bullied children which is very important that they're looking for old district has ticket polity that it can eating at old actress. There are actively at work or that they don't want have sort meet that and Jack spirit of the highest income they're actually buying. Arms that are at the highest paid we get well and on pick acts that can beat. And it art older boomers are hitting retirement even at 69. Inner city retirement age that they're actually probably not in doubt it it's a political. Are the different age groups buying the same kinds of real estate or. Or their generational differences they're two. They're undernourished out of it. And it's been an across the worried that a typical comment actually three badge and Q dot com make that are larger if indeed they are buying up or better off. Meat you eat it has been but it may already been a popular option. And we actually edict condos and town house but it are in the most comment about our older buyers are it perhaps that people are but being left eight and they're actually the most common by that. That's interesting. One surprising finding involves millennial. We often hear that they have a lot of student debt. That they wanna they mauled by oh and moved to the cool inner cities but. The report shows they are buying homes first of all and quite often those homes are single family homes out in the suburbs. They are and I don't batted just. They're the couple questions behind that occurred at a youth this year they get cute at that I had a job requires that they are the largest generation and Eric it's great out. We even eat that they are each at while it better now hitting thirty I've installed on the report. And in years at B hadn't Ian that they were I get strongly that occur and it strongly urged it act of an iPhone app. I think I need is as they age and that they are home buyers and they are buried in paddling down and have children. Our armed Libyan at upper become it's just a rip and about it. Also Internet used in searching for a home. So when EE Oliver buyers and PD in their search out. At Oliver buyers backed it up and I expect her are older tired you are Marley made it just go to a realty agents that they have or. It's a little bit different breed and her tired you are colonial or find the arc it appeared he outlined for the and just trying to understand all of the app but all went there are cheap. Are more Eden buyers Georgia act. There it Arab emirate are feeling are confident perhaps eight ending deeper but in the end it actually would. Own app I the week you eat I eat it it'd be used if there's a girl because it it it. One constant Jessica is that all the generations overwhelmingly. Relied on a real estate professional to help them buy and sell. So it seems the practice of using an agent. Bans all age groups. Absolutely and beat it out of all I am a Alley it. Her younger buyers if they can eating out that there's Mehdi app the bald big effort on that are out there will be equipment. Honor I'd helping them others in a and blocking it for you on all the at all. Our older tired in any of them are the B operative and an eight iron in Aybar added air each affiliate there act very and it worked but he did. Pat if they strongly used referral and eat at each paper. Jessica fascinating report in thanks for talking to us about it today. Jessica allowed the managing director of survey research and communications. At the national association of real torched. Coming up on realistic today a present. From the Internal Revenue Service to use. People actually have electric I moved here. I'm trying to up. When when the deadline doesn't happen right on the fifteenth the content total confusion about story is straight ahead on our special show. Tax time. Real estate today. Because knowledge is power. Welcome back to real estate today and our special show at tax time. Expect countdown is off you have just slightly more than one month to file your federal income tax. And as always you're going to wanna make sure you do it right by paying your fair share but also. By making sure you get every deduction you are entitled to. So let's talk about doing it right when an expert Eric Smith with the Internal Revenue Service Eric welcome to realistic today. Page Steve good to be aware of here. Eric Wright off the bat I understand you have a little good news. For the American taxpayer. People actually have a little extra time this year in April 18. It could deadline missed here for about the deadline. Sometimes when the deadline doesn't happen right on the fifteen to pick Cotton Bowl oh confusion. So it's April 18 and not April 15 because April 15. In the District of Columbia is a legal public holiday emancipation. Day. So instead of that Friday you're moving the tax filing date to the following. Monday. Don't give people a couple of backed securities. Shall take both into account. Okay April 18 this year got it not Eric let's walk through homeownership and taxes. Starting at the very beginning when I buy a home for the very first time what should I know about that purchase and my tax return. Oh wanting homeownership is very much looked upon kindly by the tax code and by our collective lawmaker. They have provided on number of special provision for homeowners cult and probably the most important thing to know all the factored pink ears. That there are certain he tax benefits that people couldn't keep that a year after a year while they all their home. One sperm mortgage interest and the other is for real estate taxes. Now all the mortgage interest that there are similar but. The imam of the mortgage debt cannot exceed a million dollars that probably covered a majority of homeowners. And if you're in that situation. You can then claimed the mortgage interest on your return. Yet you itemized deductions those many homeowners to. The second thing is if you put he real estate tax terms. Those captains are counting you can take if you itemize the ducks. Most people who buy a house for the first time do your taxes following that purchase. And frankly they're amazed at the refund they get they've never seen anything like up before no why is that. It's going to be bearish key but certainly there are situations where the mortgage interest me be enough that it can really help apart from now. It's probably important to point out that every situation is different and if we're looking at poked their particular blocking it had he. If you're here early in the year and you're making more home purchase as many people do in the burning. And you're taking on a mortgage and if you haven't had a mortgage report. Haven't had interest. That you're claiming. You may be paying interest or a substantial part of the year and in the cage. You may end up open a model that many really have an impact on their total itemized deduction. And of course that mortgage interest you can deduct. Every single year you on the home. Every single year now sometimes you pew bar you reach in the air. Again in every situation you're about BP Europe's first time home buyer may be have been taking the standard deduction has a lot of ranchers who. And you know are moving into the home market situation. Maybe later in the year you might not how about much interest on your opponent people would do have a choice here. If you're taking not a mortgage in value and start paying the real estate taxes and your deduction that you didn't have before. You can actually trust your withholding. Well if your employer. Told that you get that benefit during the year you get a smaller refund may be no refund at all in the year. But he could be used for the money during the year. Let's talk about one of the most wonderful connections between homeownership. And income taxes the capital gains exemption. The exemption apply 62. Your main home and what the launch says. Is that as long as you lived and it and even it out of your principal residence. Or at least two out of the past five years you Paul always will be exemption from capital gains and a break applies to. The first 250000. Dollar of capital gains on the home trail. And if you're a married couple they're feeling on that exemption goes up to 500000. Dollar. The bottom line is that promote people that 250000. Not 500000. Is designed to cover the profit from the tail conducts the key here he. We're talking about the proper not necessarily. The following product. Interest and of course Eric there's one word I used to anyone who tells me. They've made either 500000. Dollars profit as a married couple or 250000. Dollar profit as a single filer. And that word is congratulations. You got to try to get him to thank you you're in that situation Kirk you'd think if you're situation may be a little more complicated we actually have a lot of publications so could you scurrying Phillips hit a bargain at twice the price saying. Publication 523. You just go to our web site owner of that he'll be. Tight in the church sparked public by 23 it'll pop right up you can either printed out. Or if you prefer you can get the ire of calling it looked under appeal in the mail. Eric there's so much more to talk about could we continue our conversation in the next hour of realistic today aren't latitude jet ski. Well thank you Eric Smith of the Internal Revenue Service and will continue that conversation in about one power. Coming up are realistic today. Understanding one of the biggest deductions you can take. We encourage all of American spirit although home it's the American dream to own a home. And it turned government report that my giving you take the deduction but here's your fair value. Put on their pulse. That story and much more is coming up. On realistic today's special show tax. But first it's time for our special segment ask the millennial. Let's talk real estate with Jane dollar interest. A genuine member of the millennial generation hi Jane. I even got to be here so Jane are you millennial. Or you'd gen Y or are you both well millennial makes it sound like apple is specifically marketing to me which makes me feel special some undergo a millennial. A health. Jane what are we talking about today well even one area type about millennial is that we are confident. That we were already believe that we can do anything and we approach most of the challenges in our lives with a high level of self assurance. However. According to new study from nerd wallet and Harris poll thirty at least one thing we're not so confident about. Taxes. The study found that. 80% of eighteen to 34 year old tax payers are fearful about some aspect of filing their taxes what's the feral about they're afraid. Of missing some think they're afraid of being late. They're afraid that they won't understand the paperwork that they're looking at scary but. Worth it right absolutely it's not just gonna get more complicated it's not gonna get a lot more profitable. Has he been discussing today on the show the interest portion of each of your mortgage payments is tax deductible. And it's important to remember that at the beginning of your mortgage most of your payment is interest. So that means that for a new homeowner as huge chunk of each payment is deductible. To make sure you get a hold of your form 1098. Known as the mortgage interest statement. And if you've never had to worry about attacks warm other than your W two you might not know to keep an eye out for so don't throw it away. Exactly. According to the most recent millennial impact report from the case foundation. 84% of working millennial mated charitable donation in 2014. I know that I made yearly charitable contributions and most of my friends do as well. So while it might not like it has a lot to do with homeownership. Now that you own your home it's much easier to deduct your charitable donations. Before you bought a house you may not have had enough deductions to benefit from itemize and overtaking the standard deduction. But now the your RD agonizing your mortgage insurance and real estate taxes. Your other deductions can come into play. From millennial who've been dubbed big giving generation. Is actually a huge benefit. I really am glad that you wanted to talk about this today because. Even though item rising is more complicated. Than taking the standard deduction. You'll save so much more money. And it's the money is there to be had if why leave it on the table well that Jane. Jane dollar under a genuine member of the millennial generation thanks for being with us again on real estate today. Think he even. Real estate today. Connecting you with the real us. Eight professionals. Every week. Welcome back to real estate today and our special show tax time. All about you your home tea your federal income tax how to make sure you get every deduction that is legally available through. And it has a homeowner and you might be pleasantly surprised how many there are. Tax time is straight ahead right after. We check in with Bill Thompson in the real estate today newsroom. Hi bill I Stephen. One Cleveland based company is taking an active role in helping its employees become homeowners. She NBC recently profiled a nonprofit cooperative called evergreen a worker owned and operated business. The runs a commercial laundry and a green house. Her green has launched a program to turn its employees into homeowners. On the McCann is the CEO. After some financial training in some qualifications. Are eligible employees. Are able to purchase a home that they've then paid for via payroll deduction. CNBC reports the Cleveland still has thousands of abandoned homes left over from the foreclosure crisis making it an ideal market in which should try the evergreen program. Until the millennial skim along the largest American generation of homeowners with a baby boomers. Now most of those 76 million are retired or soon will be but they're not ready for the home they want their home. And there are specific things they want in an according to a new survey by the national association of homebuilders. Boomers are active shall they want options and choices. They want wider doors and always in case they need a wheelchair or some guy. Better lighting bigger windows and first floor bedrooms and bathrooms are priorities. And they want home offices so they can keep working past 65. Without a daily commute. Coming up and half an hour has raged in replaced as America's favorite decorating color Stephen back to you thanks bill. As we all know one of the biggest tax deductions homeowners contains is for their property to. It's right there after mortgage interest as one of the big ticket items you can claim as a deduction. But your property tax bill is more than just a number on your schedule today. Because it reflects the actual value of your home in the eyes of your tax collector. Let's talk property taxes now with a pro and I mean are pro. Joining us now is Ben Anderson the tax collector of Okaloosa county Florida. That the home of Fort Walton Beach and Destin on Florida's beautiful panhandle. Ben has a real tour emeritus having worked with buyers and sellers for 42. Years. Before dedicating all his time to his duties as tax collector and how are you. They're not doing absolutely terrific and very and a wonderful to be here with fellow oil turns. And the homeowners at all America. Well Ben we're delighted that your witness now first question how is my tax bill. Created. Well that's a great question and and I think often of big question people want to know your local taxpayer was created. Byron deliberate effort between local government is trying to determine their budget and the property at that third. There's not a value on huge arsenal won the county very jointly well established the track at all on your property. God it. But here's another question Ben why is it that the assessed value of my house. Is always lower than the appraised value of my house. Well paid and there's kind of a common acceptance. And government and taxation. And that they attempt figured view. Eight net after her failed Crosby. And negotiations. Back. So often times you're gonna find that your property of rapper. Will carry anywhere from fifteen to 25%. All that pop up. Depending on the market picture him and that's where the big different compound where they Condo I'd give up their values. Based on a net. I know. You've just taught me something I never knew that the best assessment. Was considered a net price that's very interest and then tell us about the homestead exemption. We encourage all of Americans took all the home it's the American dream to own a home. And it turned government rewards that my giving you a deduction. Against cured first value for our metal and that can be a big deduction oh it is and in many areas it's around 25 album here in Florida that's been increased under. Well based 25 plus certain conditions at Spokane to another one spot for a total of fifty pound and dollar deduction. Packed house directly offer being pressed values. Of what the property appraiser for your home. Ben if fight come into Euro office and say I want to appeal my property tax bill. Can I win. Yes it's a couple of unharmed but absolutely. There'd always. Be prepared what your preparation be buried with your approach on that. And be diligent and undermining. You the truth but watcher property is worth as an individual property and not pitch well under Qatar and you know all the properties. Appealing directly appeal with the fact and that they would like their. Ben has anyone ever come to you and said my property taxes are too low sir. I think the. I do not remember that the couple. Our camp trip I would get battered job upon American grit and a fund for. Ben is always a pleasure talking to you thanks for joining us today great and thank you so much and it's a pleasure to be what you are nearly as many Anderson the tax collector of Okaloosa county in Florida. And a real chore for 42. Years. Coming up unrealistic today. Do you drive but. Turbo Egypt purchased a home you can deduct all of your weight in linked here it's purchaser calm in the Greek crazy. Your point you're divided up also don't write them off. Tax advice from Turbotax. And that's next on our special show at tax time right here. On realistic today. This is real estate today. 100%. Real estate 100% of the time. Welcome back to real estate today in our special show tax time. All about making sure you get every deduction you're entitled to when you file your federal. Income taxes. And joining us now to help you do just that is an expert on not only how to do your taxes right but how to do them yourself. Lisa green Lewis with Turbotax. Lisa is a certified public accountant and Turbotax tax expert. She has more than fifteen years of experience in tax preparation. Including positions as a public auditor controller and operations manager leave so welcome to real estate today. Keep wrapping needed Lisa let's start with the basics if I am a homeowner with a mortgage property taxes and more. In most cases they should be itemize in my deductions rather than just taking B standard deduction correct apt. The group Lee you are correct eat you know home mortgages are converted because inspections for people that I MIAs and you would be able to itemize it enables you to our power to take other deductions you need not be beach about like charitable contribution is un reimbursed in weeks and we're so. Yet but you should absolutely be anger right. You know one interesting observation would be that with today's ultra low interest rates. You're not paying as much mortgage interest as you did say five years ago so that mortgage interest deduction. Might not be as big as you stupid. Yet that is true bit you know it. You know helped people out being able to deduct their mortgage and then it may nineteenth about eight BR points. It ate it. Purchased a home they can deduct a point where he but it ain't refinance. They can deduct a weight you don't really increasing merit it's actually. Mortgage interest in property taxes yes they can be deducted on your federal income taxes now. Say they also have a second home not a rental. Just a home or use from my family and myself can it also deduct the mortgage interest and taxes on that property. Yet he cannot expect you to. You are able to detect. IC so it's just like the first except I have to deductions on my properties not just one yet you don't and in part. No leash so what other deductions should homeowners be looking for you mentioned a few a few minutes ago. They should be looking for aggregates and around. Points to Egypt purchased our home you can deduct all of your waist in a year itch you purchased your palm Palin did you read great aunt. Your point you're divided up all about like about wrong mortgage insurance premium right now. Some people may not be happy because apparently there are required didn't beat it additional mortgage insurance. I they are able to detect. Thank you congress ability in December EXP any ActiveX and if people. Made in her GE is an improvement of their home bear some great tax credit for. Miki improvement right including Intel lakes in and Arlene energy issued when he goes. Or our water heater that could be your credit report that are under armored. Those will really add up. So Lisa many of our listeners also own. Rental properties let's talk about those investments I mean the rent okay that's pure income but what expenses can I deduct. With the goal of reducing the tax hit on that income. Any being the eight Utah in my knee high and it helps keep rental property he did Robert tried being you were looking forward can it. Channel your advertising car and he got I eat perches. Reps here and eat meat on the property that they had to paint what are pretty or are eating paint our landscaping like her. Regular EE EEE utility. India gold cock in really Arafat in you can get back though and while it is still able to it like on your property eat Europe. Mortgage insurers which gay or property practice. But added I attacked you know you can deduct inserted. Aren't your rental property which is one it's cat that acts. Aren't your principal rent again. Excellent also Lisa with a primary home and full time employment. Nor can see doing my taxes myself but if I also have that second home and rental properties and more. Can I really navigate that level of tax return on my phone. Yet he can each have products that that they can whatever your situation had been he actually simple questions. Up front about you you know are you a homeowner. Can you mark rental property in the program at peeler TU. And it is actually simple question you don't need to know packet warm our tax are. In. Write your characters to your question did meet the calculation from the Becky Ann and put it for economic wrecked the war. I always admired people who did their own taxes. Yeah I mean he can definitely beat Daniel. We're making it more simple are trying. Lisa thank you for being whether. Please agree Lewis whipped Turbotax a certified public or come with more than fifteen years of experience in tax preparation. Coming up unrealistic today. Filling up a gray. Big envelope with money saving tax deductions. That story and much more is coming up on realistic today's special show. Tax time. If you're hungry for real estate information to follow real estate today on Twitter to share segments listened to them again. And be the first to know what's on next weeks ago. Just search real estate today on Twitter. This is a real estate today. Location. Location. And information. Welcome back to real estate today. And our special show about homeownership in taxes. Tax time continues now with a look at what homeownership documents you'll need right there on the kitchen table. As you get ready to file your 2015. Texas. And what do you do them yourself or have an accountant do them for you. Either way you'll still need to hunt and gather some important paperwork. For starters you might wanna get a heavy Manila file folder and start filling it up. I know it sounds like a hassle but think of it this way. Every document you'll put in that folder could represent tax savings so imagine your stuffing that envelope would money. Because in a way you war. And the first document to put inside. If you bought a house in 2015. You'll need your Hud one. Of course that the spreadsheet you've got at closing. It shows where every penny went. Now if you settled later in the year you might have received the closing disclosure and the loan disclosure instead. Whichever when you have put them in that folder. They contain important information you'll need to do your tax including points you pay and mortgage interest you paid in advance. Any property taxes you paid in advance and mortgage insurance premiums. Next up any mortgage statement she received since buying the house especially the one labeled 2015. Tax information. The mortgage interest deduction is the biggest single deduction most homeowners get. It can be huge and reduce the taxes you go by hundreds if not thousands of dollars. Plus if you bought a house with less than 20% down. You might be paying mortgage insurance which is also deductible. If those payments are listed on your mortgage statement or some other statement you'll need those two. Put those statements in the envelope. Next property tax bill. You should have a tax bill from the local tax office. That's another big deduction which will save you money on your federal taxes put it right there in that Manila ample. Now if this is your first time firing your income taxes after buying a house. Get ready. Because it could be a really good experience. You might get back a substantial refunds compared to when you're renting when you just used the standard deduction. Now for homeowners that have been in their places for years. Well you already know the drill mortgage interest statements mortgage insurance premiums property tax bills and possibly point if you refinanced. But talk to your accountant about that you might have to spread those out over the lifetime of the loan. Now finally if you're selling your home depending on how long you've had as you might need two or three Campbell looks or maybe just one really big one. For one thing as always you'll need the mortgage statements the property tax bills and the mortgage insurance bills to. You'll still need die hard one from when you bought the house that shows how much you paid for the place way back win. Compare that to the new hood one or the new closing disclosure for sellers. And you'll see how much profited. Now thanks to the capital gains exemption that profit is tax free up to 500000. Dollars as a married couple. Or 250000. Dollars if you're firing single. But if your prophet is higher than that. Well first of all congratulations. Satin and the improvements you made over time might help bring it back down. A new roof a new decked a new kitchen a new bath. Put those receipts in the envelope because you might be able to some tracked them from your prophet. Again talk to an accountant about that and let me emphasize that you want to talk to an accountant about everything we've discussed today. We can't give you financial advice but they can't. And with a house in your portfolio and whether it's new old or recently sold when you and your accountant open up that big Manila envelope. You might just have a delightful conversation. About what tax time means to you. Before we leave you this hour don't forget to change your clocks spring forward one hour this weekend. Sunday morning to area around daylight savings time begins it's also a great time to check the batteries in your smoke detectors. But if you'd like to hear more realistic today's special show Cox time either stay tuned or join us online get RET radio dot com. And from all of us here realistic saying thank you for listening. It's here realtor you can see entire real estate today show on your website. The best real estate still on the Radio One 100% free to any our members. Just go to RE ET radio dot com. And click. This isn't real estate today. The number one really a stage show on. The radio the. Welcome back to real estate today. Backed by the professional experience of real torch from across America where your most trusted source on the radio for help today real estate information. Real estate today is presented by the national association of real torch and Israel for members in your neighborhood. And today it's tax time our special show about homeownership and taxes. Coming up in this hour the jump from renting to pony. And what that might mean to your federal income taxes and here's a hint. It's going to be good. Tax time is straight ahead but first let's go to the realists are today newsroom with bill Thompson's farm bill. I Stephen the 20s16 presidential campaign so far has been characterized by skirmishes over immigration gun control health care. But the substantive discussion of housing has been missing in action so straight shorts senior vice president for government affairs at core logic. She says candidates in both parties need to step up and offer ideas when it comes to the issue of housing and government sponsored enterprise reform. Everyone is on record as being for it and when you add an FHA and VA US TA Berle the US taxpayer still on the hook for more than 70%. A mortgage originations today it's seems to me that it's fair to ask what each candidate intends to do about this and how quickly it will be addressed in new administration. Schwartz says she wants to hear how the candidates plan to bring private capital back into the housing finance market. Most people would say gray is a gloomy dole color we even use the word greater describe something Dolan gloomy. But we are so wrong. Graham turns out is the hottest color and home decor according to dean slaughter a color brand manager for glue isn't banks. She tells the Washington Post gray in all variations. Is the perfect neutral. It's compatible with almost every other color slaughter says gray plays well with other colors. Coming up on half an hour good news if you're looking for a way to get your Smartphone devices to all talk to each other to come back to you. Thanks bill. Had you know we're getting close to our federal income tax filing day. How much you are you done with your taxes yet or are you still looking for a few extra deductions. Well how about cat food. Or how about your swimming pool or. Our gambling trip to Vegas. Yep those are actual deductions people went four and some were actually granted. Let's find out which ones joining us now is Sandra block with kiplinger's personal finance. Sandra has been a personal finance columnist for more than eighteen years. Kiplinger's of course is one of America's leading sources for personal finance news and business forecasting. Sandra welcome to realistic today. Sandra recently kiplinger's published a couple of articles on absolutely. Crazy deductions. Some that made it through others that didn't let's start with the people who claimed cat food as a tax deduction. An option but her leg in a couple of a jump art and they won it she attract wild cat. Erekat. Q why not take a crack at an air act. So they put cat food out pretty Eli in our state deducted the cot and we indicate what attacks were higher at heated bedding was. A deductible is expect because it's you have got Garrett. You want to get rid of Brad said it with tight unit that both net predicted that the boat that. Deduction granted next up. The man who claimed his entire swimming pool. Yeah you paint it this would not an attack but what happened let's look at any bank or. At a packed gear with your cheese development exit I repeat recommended by Q doctor beacon theater at the it went and it's why we ate at a VA intricate reading the Catholic. And the tax court about it to admit that the cost of the rule at the medical expect because our great purpose. What a bet or Q. Okay senator next up the man who tried to deduct the cost. Of his body oil. Competing a a bit of rent eight professional bodybuilder. Can't use body oil should bake you a who shined a light during competition. The tax court that they could deduct the cost that the oil that is expect. Think perhaps I get furious that the body or are very unique chip pictures and say here's what it was not upper body oil that I bought. A nice. Now how about that gambling trip to Vegas. Intimate situation where he beat both are Arctic a bust tricks that they get trapped in a bloody week popped. We're only would that collection contact market right debate it. No formal business meeting would get killed everybody at both the that we can't gamble. Chip what they're raping except it has its eco per barrel up or is there but it can be. By the tax court indicted deduction at that jacket because it is the respect. Passions were able in the inch apart at the chipped everybody is actually much right to it that. Then there's the lady who tried to deduct the cost. Of the pizza she bought her children. It's been pushed it did with this look of worry about it what they actually hear it eat the cat here are acting out is that she hired curt it. Thank age eight he keeps helper. Much wrap it up opera that you are not opt opt. Actually bought a pay tax prepare it sheik would be hours accused were not I'd cheat sheet that that he Q4. What it and it came to keep cash to pay then repeat it in cash and paid tribute to her she tried it back those. Clocked in wages at the expense that the act or it by its debt service is the children were formed. Were war for. Parental training and discipline part of the typical activities inquiry though the ire write out what. Finally. Someone tried to deduct. The cost of an affair. It but the. Yes and you know that Barry. Each act figured that can bet that lawyers that the higher at. I did back lire. It's run anybody you can rat edit it there. She is married and I have barely junket that beat up on what happened was at least I'll pick Derrick white tactic it it was or not there. He confronted a doctorate trek but lost it. The doctor agreed to pay twenty backed out ballot the battle batter and it would stop their client when he backed out on what the tax speak yet. Tax court it's now McCain didn't tax would think not because it was offered to settle the doctors to contact. A lot of things like that. Like its heyday people think it yet it was chaotic that he can't inherit the that the ride that we shouldn't think about that you'd think big is attacked we'll use data about the. So Sandra what's your personal advice if I have are crazy deduction. Should I go for it or should or not. I think if it's at is they're relate it it. Egg you'd really legitimately don't eat it in Egypt's secret if it's meant to write your fitness. I would bet steep but it act that would come back again and again any X ample it. I kept good records are vehicle group. It is a legitimate expect a guy with Mr. Big or I suspect it's. Even able to show if you doctor recommended cool dad actually wouldn't keep healthy keep you wanted to take. It would actually that the she met there went a little bit to make sure that you have brought it back up case. Great advice. Sandra block with kiplinger's personal finance handwritten thank you for joining us. On realistic today. Coming up on realistic today we'll ask the IRS. What's new if you have gone mortgage insurance that you're having to page you'll be able to claim that. Only here on your track features. Schedule a if you itemized deduction. That's straight ahead. Right here. On real estate today. This is real estate today. Because it's not just a house. It's home. Welcome back to real estate today in our special show tax time. You might know that the filing date for your federal income taxes is not April 15 this year. It's been pushed back to April 18. The recent Friday April 15 is a holiday in the District of Columbia emancipation day. And in observance of that the RS has pushed a farming date passed the weekend to Monday April 18. Oh yeah have a few more days to get that return finished and filed. The date change is not the only thing that's new this year and for that let's continue our conversation with a national expert in New York income taxes. Joining us once again is Eric Smith with the Internal Revenue Service Eric thanks for joining us again on real estate today. Now I Eric let's talk about what new I understand. The itemized deduction for mortgage insurance premiums is still around it was extended. Yes you're watching it why should the one of the provision for Oakland extended. They've spent a temporary provision congress reinstated it won't happen you know deep numbers shall if you kind of in the low to moderate income range Qatar income limits that apply here if you have a mortgage insurance that you're having to pay. It step by actively. He can't in the same way. This mortgage interest. So you'll be able to claim that on your tax return on schedule K if you itemized deductions. Plus there were residential energy credits available for homeowners who invested in energy efficiency. Can you tell us about those credit. Well you should keep their actually true credit. And go 100 people probably heard the most about. He is that applies to things like storm would go to installation and beat by a new earners those kind of ping. For most things this Karen per don't know what he's been there are few things prepared to compete dollar amount of that but. Think of it as a tax credit particular. Or limited credit that she yet are making. Energy feeding investments in your home. Now a patient outcome of the commercial he'd come restrictions apply in one of the key what I'm here. He is the pinch credit have been around since 2000 next pennant. The limit is 500 dollars and not a life time went shellfish. YouTube even bad beef. Or it has been on the books actually it's just so it's been kind of off and on but effectively it spent on for every year except to golf and feet. A tank shell if you've used it before can make these kind of improvements. For you it may be gone or immediate partially gone chulk. If you're not sure that you wonder even why it could be people tax return ski. And check back in your record but if you look back and find that you haven't claimed it for 2000 text. And you made these kind of improvement to your home. This can be a work while about it you fell off form if he's fiction 95. Or you know very even talk shop where a lot of people do it it's very often incorporated and Eric I'll. But the form music good music ID five and that's where you figure that credit. He uttered. Credit and it's really more substantial if you call collect. And that is. If you make alternative energy improvement to your home. So this huge hole are we and geothermal. Energy what we think about alternative energy repeat dueling both kind of Lincoln really. You know that you know he'd won more people aren't we talking a lot in recent years about how full our control of these other. Not good energy could become much more competitive shell if you go that route and you're making those kinds of investments. There is a credit probably would 30% of what you spend. But that also could claimed on form of Dietrich 95. And are really important program people should know about mortgage debt forgiveness program that has helped millions of homeowners who lost their homes. And either a short sale or foreclosure. For giving the taxes on the debt their lender lost what should people know about that. Well this is another one of those provisions he gets kind by daughter not at such. But it's been on for several years and it what it does is it provides a special break for homeowners who. Have had their home piquant and foreclosure. Or less compassionate. They've had a mortgage workout with the lender. Or cut short trail what ever it is pure Maine home that that work out can ball. Congress has provided an exclusion or an exemption. For up to one million dollars. Or for a married couple it can be as much as two million dollars on net debt that sport you know and Albert and special reporting requirements. And again from restrictions apply presumably to get the only applies to regular. Home mortgage debt doesn't apply to credit card data or you're using the financing program purpose for. Those kind of things. There are definitely and special rules. But if you qualify. There's a couple flying could you fill out on your attacked or there's a couple of little formed in 1982. That you need to get. We also have a publication with a worksheet to come help you with that and I believe if I can quote the number here 2681. Anyway if you put in mortgage forgiveness they're desperate give him. Into our church tension on the higher dot gov you'll find that publication and that in fact help you do the calculation that. Eric before we leave you anything else in our buyers sellers and homeowner should know about. When they file their taxes this year. BP needs more time to involve people do particularly Contra coming down here to the last month or so. Of the tax season. Particularly at critiquing or an obligation that they aren't as familiar where. What could the first time homeowner or somebody with other new obligations. Maybe you feel like you need extra time to get the return done. Get an extension it's been no excuse for this kind of a thing. If you use a paper former wanna do it on paper. You can do it that way it's a form 4868. But you can actually do it electronically. You can go on IRS that he'll be. Check the link for pretty wild. Anybody can use the pre filed with them to get an extension and to get that fixed additional months. If you get that you'll have until October 17 he get the job done while we encourage people don't feel panicky if you don't need more time off or. And that's advice direct from the Internal Revenue Service that's Eric Smith with the IRS thanks for being with us today on our special showed. Tax time scheme to hundred no mind. Coming up unrealistic today what happens to your taxes. When you make the jump. From renter to homeowner. The community homeowners what all of them you get it through our relations aren't worth it can be anymore deduction. That's story and much more is coming up on real estate today's special show. Tax time. But first it's time to get real sore. A special segment unrealistic today. In which we give one real tore one minutes to answer one question. A question that can help you get the best possible results when you buy and sell properties. And today's question is something that's being asked in some of the hottest markets in the country. Joining us now is today medicine sky real tour and sales manager for a long and Foster real estate in Washington DC. Am a member of real time magazine's thirty under thirty today welcome thanks so much from me. Are you ready to get real tour I'm excited. Today if you and your clients are in aged bidding war. Multiple contracts on the property vague and want to draw. How do you win. It's a tough one it's certainly pray pray you know. Cash is king right so it would you couldn't meet together and find that price that work back. But I think it also did different terms you know certainly let's terms that you have our conditions and contingencies and and that offered the better. You know often people think while I paid the highest price and I'm 101000 over last thank you have a low and money deposited and so attending home inspection and then every don't inspection lead paint. Not to say that you shouldn't to go links as we would never you know. Tell you not to check that your home is an act on condition but it's how do we do it in a way that's gonna benefit you most maybe instead of doing meant home inspection you do a general and action. You're not going to be asking the seller to we remedy certain items that come up you either decide to move forward and purchased the property or not. That's a short timeframe like the next day Burt Manning get in there and you're going to have the home inspected and you decide that neither you want to move forward or you don't and you just don't negotiate on terms. And that is one minute. Today you did it well. To name Madison sky real soaring sales manager for long and Foster real estate in Washington DC. And a member of realtor magazine's thirty under thirty. You know since we launched get real chore unrealistic today we've built up a pretty good library of segments. Every one. Is a one minute answer to an important realistic question. If you'd like to hear debate medicines guy again or any of the other get real for segments you can find the right there on the front page of our website. Www. Org ET radio dot com. And also if you have a question for get real tour. You can email us at questions at all our ET radio dot com we love to hear from. Once again. That's questions at RET radio. This is really easy today. All real estate all the time. Welcome back to real estate today I'm Stephen gas quite. And today it's tax time are you ready to file your taxes the deadline is just over one month the west and on today's show we're going in depth about. The taxes you pay the expenses you can deduct and the strategies to take to make sure you save every penny you can. Tax time continues right after we check in with Bill Thompson in the realistic today newsrooms hard health. I statement. New figures showed 2015 was a good year for the luxury home market in Las Vegas and 2016 to be just as good experts say. I've insurers with the Shapiro ensured team of Berkshire Hathaway home services Nevada properties he told the Las Vegas review journal he's very optimistic we're. Buying lots and lots of looking to do their own custom build jobs suddenly just gonna be Cintron over in in homes and inventory. Sher says 2015 was the best cure his company's ever had. Anyone who watches law and order knows the name Rikers Island since the location of New York city's jail complex. But as with Robin island in South Africa or Al to present San Francisco. Rikers Island may be too valuable not to use for something besides general. Cranes New York invited architects planners and dreamers to imagine a future for the 413 acre property with a breathtaking views. Some envisioned a new community completely affordable housing and schools. The head of one architecture and planning firm says quote the potential that site is enormous it would give the city great growth through it could be phenomenal. But do. Thanks bill. One of life's biggest milestones he's moving from renting. To owning your home. It changes so many things from your ability to grow equity to the ability to control costs would be fixed rate mortgage. And also the ability to take enormous deductions when you filed your income tax let's talk about going from renter to homeowner. And what that would mean to your tax bill with an expert joining us now is Evan Linear the director of tax policy at the national association of real torched. Evan is also a certified public accountant Evan welcome to realistic today but it Adam let's start at the very beginning. If one of our listeners is a renter what tax form will they typically used to file their taxes. Probably turned forty you're transported easily welcome memberships what art forms and are quite easy to follow. IC. OK so then they buy a house for the first time. I guess the first changes the way they file their taxes. Yes for most people becoming homeowners what opened the gates. To all the promotional and word there can be many more deductions. You know Evan Disneyland is great but personally I'd rather go to item decision land. I thought six or fifth. This is because once people who read this type of we move forward called the Big Three tax reductions Kurdish state and local taxes and charitable contributions but somebody just want the kids usually not a not to allow somebody to ought to Mars dirt deductions. But when you borrow home. And you start using a mortgage to console application preferred spoke to three which is what mortgage interest deduction Oshawa can take you over the threshold little argued all itemized deductions like your tax return. It's interesting you know one comparison involves property taxes renters. They don't have to pay that at all homeowners do. But then they get to deduct those taxes on their federal income tax return. So what do you think in that scenario is that a draw or does the renter come out ahead produced a homeowner come out ahead. Well actually renters do pay pro projections but this sport all over repetitive and directly through rent payments but they're getting nothing out of them attacked on. But every homeowner pays property can actually politically even after they appear to offer mortgage but major Ford deductibles along as a homeowner did the Audubon toward spirit clues that the whole war comes your way zhelev national. No heaven hours wondering if we could ask you to do some math you take two people. With these same income and the same filing status. One as a renter another is a homeowner and say they both pay a thousand dollars a month but for one it's rent and the other it's a mortgage. Roughly how much will one pay in taxes. Vs the other. Well our shot down tribute to show up but slowly but you have a rancher named Rick and Barbara. Who's a borrower must assume that there are sure to war and each one earned shift towards total or in here. Mortgage payment of just a word tells you want to Barbara can get along little bought 200 Karr to boulder to report card check interest this would give her mortgage interest reduction of 8000 literature to dole pushed the first year in addition she's going to be played crop protection on the whole. No range from about 16100 years to huge columns or you are depending on what should have pushed restrict the average of demonstrators thirty I don't Porsche. Pushed for ownership of the bold red cab Barbara Perry are pushed it on local taxes 4000. I had my contribution to charity and about 2000. Border homeowner who's going to have a tax bill of 6346. Source. All Rex will be 9400. Produced or root GAAP terms of 3000 immediate goal Roche. This comes out to almost 260 door pretty much savings per border to border. I don't know where it working out it was a blunt brutal potential harm to keep promote to a whole world record 101000. Would produce. That's a big savings this year. Another big difference between renting and buying happens when you eventually move on for the renter. They give notice they move out and they probably hopefully get their security deposit back. For the owner they might make a good profit and they might not have to pay taxes on that profit thanks to the capital gains exemption. But council would correct what sort Barbara from the poor example live to her home particularly urged the national mood profit of torture people ourselves most. All of our Gary will be cash rate her. Discussion I don't pay any tax until we came over to them they can tell you borscht. I wish you were married probably try to return if not doubled to 400000. We performed the best time to do in order student but they're they're all more content you guys that want to stay in the ultra loose two years. You know Evan as we all know sometimes it's right for someone to buy and sometimes it's better for them to rent but. It's good to know that when they do make the jump into homeownership. There's a lot of tax savings waiting for individual stroke. Evan thank you very much for joining us once again on realistic today. Where do you thank you Evan Linear did director of tax policy today. Coming up unrealistic today if you're using a voice activated device. You really talking to your. Yourself you can talk to it doesn't voice recognition I think is a big things in the space that's next right here. On realistic today. This is a real estate today. Because your home might be your biggest investment. Welcome back to real estate today and our special show tax time. And right now we're going to take a quick break from talking taxes to talk check. In a special expanded version of our regular series Smart home technology. And you know many homeowners who were. Interested in making their home he's Smart home wonder about the first step. How to begin the process of connecting my home to the Internet of things. It's a good question so let's ask an expert. Joining us now is Chad curry the managing director of the center for real Tor technology at the national association of real torch. Chad welcome to real estate today Stephen I can't tell you how excited them and to be here thank you so much we're delighted you're here Chad now if our in my homeowner and I want a really get my house Rolen with Smart home technology. What's your recommendation on the number one thing I should get. You know this no surprise some people to Amazon echo. They've made some amazing head way in a very short amount of time have yet to itself is a speaker that is Bluetooth enabled which means can connect your phone connect to other Bluetooth devices. You can talk to it does voice recognition I think he's a big thing in the base and when you talk to you can say things like Alexa. Play so Miles Davis. Oh its name is Alexa who now you can change the name so but you can change the name to echo or Amazon or Alexa you can't change it to Syria or courts found -- for a trip ride teammates threw a fit for a the echo itself comes from 179. But what's great about that as recently in your police to other products in this line echoed dog which goes for about ninety dollars who's also a Bluetooth speaker. Looks like a hockey puck and this is a way for Amazon to insinuate themselves in your home and actually how voice recognition happening throughout the entire home. We have a portable speaker called the Amazon top and that comes from 129 to these are some great products that are on the market from Amazon. And I think there are good way to start getting into the Smart home because you can actually connect to the many different systems that's a great thing about them. That's fascinating and you know one area that real torch talk to us about. Is home security what's out there in battery. Absolutely yeah so there's actually three security cameras on it talks about really quickly but will cost 199 and you might think the price one that puts money but here's the thing. What they do is pretty impressive. The first I want to talk about is the canary in the carrier itself. I think is the best and mark Reno because it does some other stuff we do some environmental sensing and who's your temperature humidity here air quality. But they also have a ninety decimals iron built in in an emergency call but. Not an emergency call but not here in Washington DC today but if my home Chicago some bricks and in my home I can actually hit the emergency call and call Chicago and 911. Could this localized to that device that's amazing cycle don't talk about is the net dot Mo welcome. What's cool about type device to welcome it does facial recognition so does your family comes home it recognizes them so your daughter son come home from school. The senior text message thomas' homer elvis' home. And let you know stranger horizon program unknown presence in your home. So you'll be able look at the video and know somebody's in your house. Who doesn't belong to excellent yeah and the third camera is enough scam and you might know the name nest from the thermostat in the also have a smoke detector. But the most chemist so what's cool about that is you can talk to people through you can actually have an interaction without person I didn't know that absolutely. If I have in my house that would you know be able to talk to my kids is a sitting on the couch when I'm here. Take your shoes off you know that kind of thing bills are three great devices on the market right now. If I'm a homeowner in America. And I have a few Smart devices here a few bear. What will my home look like now five or ten years down the line. Soon your home's going to look like fewer devices really so let me tell you a little bit about tap and went to the university of Michigan's lab eleven. I held my hand to computer the size of green sand. And had a sensor built into it now. What we think is things like drywall wind news the you have sensors embedded into. So imagine if you had drywall or wallpaper even in your home. And that wallpaper has temperature humidity light air quality sensors all green throughout sewn into us right. You could actually watch we did a light travel across the room you could years there was a leak behind your wall in the specific areas that you can know where to go to repair. And I think things like thermostats are gonna fade away from the walls I think actually we're gonna have. Hot swap mobile devices. In our in our walls soon. Plugs that you can take in inaudible won't plug back in I think we're gonna have a more. A modular type home and I think it's all going to be driven and how much talked about new belt on compliment existing homes and I think that's going to be our time. And exciting future ahead for the American Holmes absolutely I'm very excited for we're very glad that she could join us today thanks for being with us unrealistic to sixty minutes and a pleasure thank you very much. Jack during the managing director of the center for real toward technology at the national association. Of real torched. Coming up unrealistic today which homeownership documents you should never. Ever throw away. That story and much more is coming up on realistic today's special show at tax time. If you're hungry for real estate information and don't really see today on Twitter. Shares segments listened to them again. And be the first to know what's on next week show. Just search real estate today on Twitter. Real estate today. Because you love real estate. Welcome back to real estate today and our special show tax time. All about the taxes you pay and don't pay when you own a home a bureau. And right now we're going to talk about an important issue and that is how long do you need to keep the documents concerning the purchase. Ownership and sale of your home. Here's a pretty important subject if you wanna make sure you always get every deduction that's available to you. If you toss the wrong document you might also be tossing the money saving deductions they can get you so let's take a look at that. The first one might surprise you it's your tax return. I know it's not exactly a homeownership document but it does mapped out every homeownership deduction you'd talk. And that's something worth keeping. Plus if you refinance our move and buy another place the lender will ask for 12. Maybe even three tax returns. So there's a good reason right there to keep it. Plus the IRS says at a minimum you should keep your tax returns for three years but they also say to be on the safe side. Keep them seven to ten years. Along with all the documentation you had. For incumbent deductions. All of it. Next whenever you do any kind of improvements around the house keep those receipt. You might need them way down the road when you sell the place as we've discussed today on the show. Thanks to the capital gains exemption profit up to 500000. Dollars as a married couple is tax free. And profit up to 250000. Dollars if your filing single is also tax free. But if you keep your place for a really long time. Or if you experience a crazy run up in values. Your profit might be more than that the amount of money you paid for the home improvements you made it might be able to be subtracted from that profit. And they might bring it back down under the 500. To fifty threshold. So keep those receipt as long as you own that house next up the mortgage satisfaction letter ever received one of those. You get it when you've paid off a home loan. They've the letter during the mortgage has been paid off. Why because sometimes record keeping gets sloppy. If you know the place the court records might show that you still have an active mortgage on the place end. The when you replaced it with when you refinanced. The mortgage satisfaction letter will prove that the original loan is gone. Finally keep everything you have the proves the home is yours that means the deed and everything else you received when you bought the place. And keep that property surveyed to might come in handy if you ever want to put up offense again keep both documents until you sell. Finally you might think about scanning every one of the documents we've discussed and put them in a secure file up in the cloud. And while erratic might as well include your insurance policies and your cars pink slipped to. That way if you ever lose the original you have copies but it might not be legal copies I mean a photocopy of a deed is not legally binding. But those copies could help you when you go to replace the documents you lost. And finally one more thing when I was researching this segment I came across something that was fascinating. The IRS says and I quote keep records indefinitely. If you file a fraudulent return. Really that's exactly what it says so if you plan on cheating the IRS please keep all the evidence indefinitely. It's good to see that even the IRS has a good sense of humor at tax time. And once again before we leave you today don't forget to change your clocks spring forward one hour this weekend. Sunday morning to area around daylight savings time begins. It's also a great time to check the batteries and all your smoke detectors. Coming up next week gone realistic today were celebrating the hottest real estate market of the year in our special show thus spring market. Wentworth expert advice from buyers sellers and you can. As we explore how to thrive in the spring market. And remember you can always listen online at party TV radio dot com. And from all of us here realistic today thank you for listening to. If you're real turn. You can put the entire realists say today's show on your website the best real estate show on the Radio One 100% free and they are a member. Just go to RET radio dot com and click perfect.