Mar 12, 2017|
Opening doors for buyers and sellers with critical and credible information on the real estate market. Fast paced and fact packed with experts, interviews, call-ins, field reports, and timely market conditions.
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
This it's real estate today. The number one real estate show on. The radio. Welcome to real estate today. Backed by the professional experience of real tours from across America we are your most trusted source on the radio for up to date real estate information. Real estate today is the official radio program of the national association of real tools and it's really remembers in your neighborhood. Hi there I'm Stephen gas quick and I'm delighted you can join us today for a special show. Tax time no it's hard to believe but the filing date for your federal income taxes is just over one month away. So in today's show were hunting for every deduction homeowner can get. We'll talk to top proves about what you can do to maximize your tax savings this year. Tax time is straight ahead but first let's go to the realistic to the newsroom with Phil Thompson fared no. Hi Stephen the trump administration has signaled that a high priority will be to get Fannie Mae and Freddie Mac album government control. So what happens then to the thirty year fixed rate mortgage. David Stevens CEO of the Mortgage Bankers Association. Tell CNBC the right legislative approach to preserve what Fannie and Freddie are doing right while minimizing. What they've done wrong. Are redefined it purpose and redefined. Operating ability to a legislative reform process can. Eliminate the risk that the taxpayers ultimately inherited and this model of you know shareholder gains and tax pare losses can be permanently walled off to a legislative process. Stephen social secretary Stephen the Nugent is as he puts a paving the rallying cry that any housing stakeholder should support. Rising interest rates are cutting in to refinance activity as reflected by new figures from black Knight financial services. The company's first look at January finds that the mortgage prepayment rate was down nearly 30% from December. Prepayment speeds are considered good indicator of refinance activity still black Knight does the prepayment rate was 17% higher than it was a year ago. Coming up and half an hour flight home builders are optimistic even as home affordability dips Stephen back to you thanks bill. We have some exciting news to report today. The first time homebuyers are back. They now make up 35%. Of home buyers in America. And that's great news especially because last year. They hit an all time low at 32%. And the return of the first time buyers is the key finding in a brand new report for many are called. The home buyer and seller generational trends report 2017. Joining us now with more on the generational study is Jessica Lutz managing director of survey researching communications. At the national association of real source. Jessica thanks for joining us today. Match Jessica the first time buyers jumped into the market in a big way. Tell us about that. They Ed and and we found in nature part let me break it down by generation we actually find that millennial make up the largest faction. A first time homebuyers. In fact sixty expert and a millennial chart entering the home buying market are first time I urged. And what are they buying Jessica we're sort of homes. So it's actually one of the the price big big and we found it did here wouldn't you look at the millennial home buyer they're actually buying the single family homes that are actually in the fiber. So not necessarily your city dwellers that the media may want to purse great about it. I am they actually are buying very traditional economic structures. Well that's really interest in Jessica because you're right. You always think of the inner cities is being filled with Mullen feels you always think of the millennial generation flocking to those areas but instead. It's the suburbs. Break it heat up and purse and it's abnormal ideal buyers did purchased in the suburbs and actually look I generation. We can actually see it that the lowest share data purchased and the Roberts. Our actually our younger boomers though wouldn't you look at them they're actually more likely to protect its small town to urban areas were all areas but that. Suburbs are less popular aria Europe are. Well let's talk about the different generations you study Jessica starting with the millennial tell me about their debt. Is that affecting their ability to buy a home. It is particularly look at millennial they are they'll learn to share in Q have to manage that. But they're actually don't have the largest amount that's due to land activity look at the dollar value. That Jana actor richer today generation. I'm allergic dollar value at about 30000 dollars. Okay and now let's talk about the gen X years to generation just older than the millennial generation. What are the gen X or buying. That was one of the really interesting findings from the strip where we actually that. Can actors they're coming back from just struck failed fourteen person and every sent home buyers to our chat actors did how it foreclosure or short film the past. And so they're protecting a home that day it's close to a school district quality pulled a strict. Number they felt comfortable letting their kids because they're actually the most likely to have children under the age eighteen and our help. I vets interest and yeah I guess it makes sense that a lot of agenda extras were hit hard by the economic downturn. They worried and actually very large share of bad it's more than one and I've actually wanted to Fella home earlier if they were previously homeowner. But they actually critics because our home with underwater OK next. The baby boomers well it's really interesting that we XP didn't bite out her against her baby boomers grow older babies at first because there are much different. Light situations like Egypt and or younger baby universe they are currently parquet. They're in the midst of their career their safety cued it 61 years old but are older be the humorist art to teach you to cavity so they're actually thinking about retirement they are thinking about perhaps down painting a little bit but not really a lot. But there's you know moving look at their friends and family. Whereas our younger boomers we actually found that one and I've had that purchased a multi generational hoped that they're taking care has. I used taking care of it quotes here perhaps there are millennial children in a barrel though caring for their EG parents as well. And the oldest generation that she studied is what you called a Silent Generation tell us about them Jessica. Great that they are 71 to 91 years old and says there are solidly into retirement. I'm Wendy do you live though they're looking for a smaller place but they're also looking to be close to front that I wish it. Gary understandable they're not out tech savvy pitcher working like a Mastny and but many of them do you use the Internet to search for hometown and it's not out of bounds for dynasties that. On our iPad an air mobile to offend you can link of where they would like to. I see so Jessica as American homeowners go through the different stages of their lives. They always have a mortgage or some point they start to pay all cash. Great that we actually did find it most comment for our younger generation Q you've been mortgaged and that does actually declined they just increased. We do you find that just 58% of those turned out pilots' federation Q I can't spare their home compared to 98%. Of that your app like it. I see so there is a difference the older you get. And judge Jessica final question. Are all the generations leaning on professionals. To help them find a home and sell a home for instance. Are they are going to realtors and trying to get that local market knowledge. They are and one other really. Not surprising I think they know how great realtors. But one of the really interesting findings I would say is that even with this current and technology were nearly all millennial are using the Internet. I am the actually cute find Atmel on meals are the largest federation are actually using her real estate agent. All of that night and had our but we actually find that it doesn't matter about technology and technology used people still want that knowledge of act. Kurt and went after Rackley go to questions that are out there can't. Well Jessica I sure do appreciate you being on the show today and talking to a vote and go home buyer and seller generational trends report 2017. Much prodding me. You're very welcome. Jessica Lau managing director of survey research and communications. At the national association of real courts. Coming up unrealistic today. A special guest with last minute tax tips for homeowners. So homeowners. Right now you'd be dealing three to eat things to prepare for starting your taxes and that's next on our special show. Tax time. Real estate today because knowledge is power. You know it's hard to believe but the filing day. For our federal income tax returns. Arrives in just about one month. Now if you are an absolute roll bar and you might ever be filed yours fight between now and April 15. An estimated sixty million Americans will file their taxes. And the busiest week of all is the week right before April 15 when more than twenty million Americans will file their income tax. Not everyone of course is an early bird so for all of us who have not yet filed let's get some solid advice on what we should be doing. Between now and April 15. Joining us is Kathy Pickering with H&R block the nation's largest tax preparation service. Kathy is the executive director of the tax institute and vice president of regulatory affairs for H&R block. She has nearly twenty years of experience in taxes and she's responsible for the strategic direction and management of H&R block. Kathy welcome to real estate today. Speed you so much it's such a pleasure to be on the Syracuse. We're glad you're here so Cathy my first question. Do we really far off on April 15 this year because for the last few years it's been April 18. That's such an excellent question and yet I this year at that tax deadline is actually. April 18 and everyday and that that appeared to. It featured the District of Columbia. Celebrate in education day each and what is called on the weekend. Dan Holliday gets celebrated on the following Monday. And so this year our tax filing deadline will be on April 18. So you get three yesterday. I felt that's excellent. Debbie what's your opinion about what homeowner should be doing right now. To prepare. For filing their taxes this year. So home owner it's right now seedy dealings three key things to prepare for firing their taxes. But urged it gathering all of their document folks appear and employee you're gonna be gathering your tribute cheated. You may be getting content 99. He'll be gathering any Chevy 98. Documents your mortgage statement to those kind of things. He also wanna take time she goes through all of your record keeping if you'd made. Improvements. To your comment here you wanna make sure that each captured. All those costs. Not necessarily that you immediately claim that taxes this year but that is important for. Keeping an accurate record of the basis of your home. And then finally each. In addition to you'd capturing your documents. Updating your record keeping you can wanted cute and interrogations security check up. You can make her. That you are protecting yourself against identity asked so it's become more and more had a problem in recent years where people. Stretch at their identities stolen and then others filed soft taxi Terrence. And stroke so you'll need to do is perhaps check your credit record look it you credit card statements make sure you're not seeing. Any unusual activity. This is a good time you update your online passwords to start Eddy Cue word and he compromised. They wouldn't be able to get into here online accounts. And just make sure that you got your shots and order in that regard it well. Great advice Kathy now going back to the documents for a moment. Which documents would you recommend. That a whole owner always keep and never throw away. So the documents that are homeownership are always key and never get away our birds that document the value of the hall and so that's everywhere from your normal utter closing disclosure statements your mortgage statement and then core rush and. Substantial improvement to the harmed. The first you wanna keep forever are your tax filing documents. Typically you only need to eat for seven years by. Of the haul and short long it you own a home. And how about the state and you get from the bank saying it. When you refinanced. Their mortgage was paid off. Oh excellent point yes that is so important. Those statements from the bank at stake. This mortgage was DDoS you absolutely want Q uphold that in skate guard it would all of your other home owner records. Yet because someday you might look at your credit report and find that that home equity line of credit that you paid off. Distilled air. That's exactly right in terms of protecting yourself against. Any kind of financial fraud. Having those documents that proved. Your mortgage with cannot buy your home equity line would kiosk. Capping that statement is critical to being able to protect yourself against those kinds of fraudulent situations. These days Kathy. Wherever I am if I am I Smartphone I've got my whole office right there. Do people still have home offices and if so are people still getting the home office deduction. Yeah actually there are still at number that people can you are able to take can harm not just reduction of its. Certainly you can always. Computed a way that had been done in the past. Where it there is a whole object space it did speak to harm that it allocated strictly for business purposes that it meets all of the other tasks. You can calculate the cost Turkey it would act at perhaps percentage of the square footage at home. Or now there's this special safe harbor. Which allows qualifying taxpayers. To take that deduction. Cute 16100. Dollars. With out didn't need to track the home expenses individually you play it's a great. Well speaking at times seedings. Seats Harvard reductions. Kathy this has been such a helpful conversation. And I appreciate you joining us on realistic today. We're talking to you to Kathy Pickering the executive director of the tax institute. And vice president of regulatory affairs for H&R block the nation's largest tax preparation service. Coming up on realistic today from renters to homeowners. What happens to your taxes they don't even know what questions app on what it's sort of like. We read it there's some tax stuff that we should know about if we body that's next on our special show. Tax time. But first it's time for ask the millennial. The maligning those are the biggest demographic group in America and potentially. The biggest group of homeowners ever so let's talk real estate now with Jane dollar injure a genuine member of the millennial generation. Hi Jerry how I even happy to be here we're glad you're here so Jane what do you have on your plate today. Well Stephen recently NER released the 2016. Of green mauling impact report. The outdoor features addition. It discusses what outdoor remodeling projects will bring homeowners the most money back at resale. And which one will help them feel happier in their homes. Probably talk about what outside features millennial homeowners should be considering that's arson so what kind of projects are you talking about. Well if they're looking for resale value of making sure that the long look Mays thing. Is the most important thing. Eating your lawn can wreak to more than 400%. Of what and when you sell your house. And while most money on homeowners probably just bought their first home it really doesn't hurt to plan for the future with these kind of project. Well yes and in the meantime they can enjoy their homes that much more. Absolutely. So according to NAR at the project that brings home owners the most happiness is putting in a pool. In fact it scored eight perfect enjoy score of ten. Now joy scores ranged between one and ten. Or ten is all the joy but I grew up in Arizona and I love. Waking up on a summer morning in drinking your OJ in your pool float he is basically in my opinion is the greatest thing in the world. However according to better homes and garden millennial as a whole aren't interested in buying homes and pools. They're pretty expensive and require quite a bit of meat against which doesn't really fit in with millennial get up and go lifestyle. How Tora living rooms or what millennial on the lookout for they wanna stay outside where they can entertain relaxed and has no maintenance. If you go out of town you don't have to hire neighbor kid to look after your outdoor patio. It puts a good point Jane I mean many projects require a lot of work even after their done and that's something. All homeowners should keep in mind. Absolutely and you know the same goes for garden millennial if you go out of town and don't water your plants they will die. It just happens. Let's avoid that. Jane dollar under a genuine member of the millennial generation thanks for joining us unrealistic today. Think he's Stevens and if you have any questions that only a millennial cancers. Please send me email at ask the millennium at radio dot realtor and if possible I'll answer mommy here. Real estate today connecting you with the real estate professionals but every week. We're back when our special show tax time. It's one month and counting until our federal taxes are due to. And on today's show we're going to get you ready and look for every single possible deductions that you can legally claim as a home. In this half hour we'll talk to the IRS about how you can avoid getting the audit tax time is coming right up. But first let's check in with Phil Thompson and the realistically newsroom I don't I Stephen. Home prices surged in December. Compared to a year earlier they were up five point 6% the fastest pace of increase in almost a year according to the latest Standard and Poor's core logic case Shiller twenty city home price index. Wall Street Journal housing reporter Laura could system says in a journal produce podcast but the single biggest factor is the lack of homes for sale. Builders aren't building enough homes people are playing their homes in the market may be because they're worried about an appeal to find another home had become the kind of vicious circle. And really what all of that adds up to is that as demand a strong economy is growing wages are rioting in young people are ready to buy homes. But there's is no homes for them to buy and so that's just pushing up prices. Chris system says the sharp rise in December was somewhat surprising. Because McCain despite rising mortgage interest rates she says is potentially bad news for buyers because of suggests that even if mortgage rates continue to rise this year. So will prices. Called affordability isn't an eight year low yet remains favorable says the national association of homebuilders. According to beat an AHB Wells Fargo housing opportunity index. The industry have been battered by a shortage of billable lots and skilled labor excessive regulations rising mortgage interest rates and high home price appreciation but. The NAHB says a new home is still affordable for many buyers. Chief economist Robert Gates says no mortgage rates are rising incomes should rise faster as well helping to keep home prices affordable. Coming up and half an hour where first time buying his easiest and works the hardest. Stephen thank you thanks bill. One of the biggest milestones in life. This is moving from the renter. To being a homeowner. So many changes. And right now we're going to talk about one of the biggest changes out there your tax. All of a sudden you're able to open the door to tax savings through item is patient and all the deductions a homeowner qualifies for. Let's talk about that now with a real Tor who works both in the rental in the sales part of the business. Someone who answers a lot of questions when first time buyers make the jump. Into a home of their own. Joining us is Zach shot it real tour and vice president with bamboo realty with locations in Dallas Houston Denver and Raleigh. And Zach joins us now from bamboo is Raleigh operation. Zach welcome to realistic today. What we're delighted you're here so Zach you do have a unique brokerage Jeanette you work with people who rent apartment. And also people who make the jump into homeownership. You've got both sides of offense there so when someone who has never owned a home before. Decides to make that leap what do you tell them about federal tax. Sure I think the biggest thing her agents to understand it is anytime that someone is buying for the first time. They are typically coming from. Renting which means they are used to talking about things in terms of monthly payment and so when you talk about annual tax credits. And you know the mortgage interest deduction and things like that it doesn't always translate to the things that they're used to so. A lot of it is in the initial meeting. Educating people on how the process works. That's very interesting so. Zach what kind of questions to those home buyers askew. They don't even know what questions to ask honestly it's sort of like hey we read that there are some tax stuff that we should know about if we body. Arm what can you tell me about it and so they typically have done a little bit of research. But there's so much information available online they come to us because they want helps. Sort of deciphering all the things that they read and they're just looking for some insight and so. You know we can't give them tax advice but at least we can explain a little bit more to amend. How it affects their mortgage and and how it may play out when they have to file that first acts return after they bought. You know that must be a really really nice conversation. When you sit down on them and say oh and by the way. You can deduct the interest. On your mortgage. And that will lower your overall tax bill in most cases they must love that. They did that sort of an eyebrow raising kind of like reaction where they say. All liked. That's really cool like. I didn't know that you know edit and it's fun to watch that real genuine reaction. When they realize it's gonna have a pretty significant financial impact on them out I don't think people truly understand. The amount of money that's typically involved in this you know especially the first few years of the mortgage when the majority of your payment goes to interest. That's a good point that's a really good point now you know of course the other big deduction that homeowners are all about is the property tax deduction. No no renter. Has to pay that directly I mean it might be folded into the amount of rent that they pay. But they don't write a check to their county for the taxes. But win they are a homeowner they do write that check but on the other end of things they do get the deduction to. Sure I think that Steve and it just an added bonus I think. The fun part is hearing you know Kazaa they may have forgotten about it by the time that First Act still cubs do you know they get it in the mail and it cost. And we explain it to him again and liquidity printed so I've already saved all this money on. My mortgage interest deduction from the paint it now like it could be duck the property taxes it's sort of this ongoing good news that we get to share with the all time they'll. It's pretty fun. Absolutely you know one of the realities of buying a house for the first time is that. When you file your taxes the following year you get a pretty good tax return because all of a sudden there's all these deductions you can take. Yet you know everybody's a little bit different but I think it's fun to come when most people dread tax time and our business and take its fun to deal the call your client. And especially you know right around the you know the tax filing time next month and all the sudden it's like. Man you get to hear good news because people are elated about how it's affecting their finances. And it it's just it's a great excuse to reach out your client and just make sure that they understand approximate. Make sure that they're taking advantage of all the things that they can. I'm you know typically won't find renters who have never met with an accountant before this is a good excuse to introduce them to someone who can really show them. All the benefits that they can take advantage out. We'll Zachary sure do appreciate you being on the show today and telling us. About the conversations you have with renters as they moved into homeownership thanks act. Some parts Zacks rabbit real tour and vice president Ed bamboo realty with locations in Dallas Houston Denver. And Raleigh. Coming up next on realistic today. How to avoid being audited by the IRS. Most of assignment mistakes most of our image something good teams battle line. There area ZoneAlarm that aren't always is clear and they could be that's next on our special show. Tax time. This is real estate today. 100%. Real estate 100% of the time. Welcome back to realistic today in our special show. Attacks on the countdown is on you have just more than one month to file your federal income taxes. Here's a question for you what's the worst thing about tax. Paying them doing them well how about being audited yet that's worse than any thing. Let's talk now of an expert about how to avoid an audit when you do your taxes this year and every year. Joining us now is Eric Smith with the Internal Revenue Service in Washington Eric's a forty year tax veteran and we're delighted he could join us today hi Eric. Peace Stephen you know what it's good to keep podcast today. With the that I started and it seems like even though it a year ago you and I talked to keep like asking me to Mexico. Where you're absolutely right and a really good record here so Eric tell me what the fastest way. For media get audited. The biggest problem is unreported income that certainly is situations where people are in cash business and list. And have a lot of cash going through their system that can be an issue. But the key is to file that correct and complete return. Make sure you take a look at the year end statements. That you get from your employer premiere saying from your mortgage company. Make sure the information on there is correct disappointment things that we do is we match up. Blood EU report on your return. With what we're told by these various third parties to come up there mismatches. We're gonna contact you'd see what's going on here. When the IRS audits tax payers in America. Is it usually because of an honest mistake the taxpayer has made or are they trying to commit tax fraud. Most of kind of mistakes most of the time it's something that seems out of line there areas on the law that aren't always as clear as he could be so all of those things factor into that good. We think most people are doing the right thing most of the time. Eric you said the number one thing that could lead to an audit is on reported income. Let me ask you about a couple of other things too at first the numbers on your tax return. Don't matched the numbers on 1090 nines and other financial documents. It. It could result in an audit yes but initially probably interest can be resolved in. A letter from the IRS saying any we discovered this discrepancy. May go to propose that I changed to your taxes. But you have an opportunity to upstate take a look at it maybe we made a mistake maybe you made a mistake. But that's where we come to a meeting of the minds and you have an opportunity to come back to us and take take a guess that did report that and it's aligned such and such. Or do they yup I did forget to reported it and pop it attacks. Second save that one year you had one income and the next year it just skyrocketed. Could that cause an audit. Could be a factor but probably not in another shelf you can return looks ripe age of the deduction in the N com and that reporting looks like it's been within a normal range would probably just gonna except to return files. Next are decided man air B&B. Home away I'm gonna rent out my house for short term rentals all year long. In Jamaica a ton of there. Audit or not. This is really important Steve and trying to just two. While we were talking about before. When you're involved with any kind of like cash business you still have the same obligation. To report your income in the same way that other people do if you get a 1099. It may be pretty straightforward. If you don't used to publish seem obligation to follow the law. OK so no matter what the income sources you need to reported to be RS now Eric another issue. The headlines now we're saying that the RS is short on people and if that right there will lower your chance of being audited is that accurate. Your chance of being audited by the IRS last year was less than 1%. And good about that the reform but. It is an issue that's out there that there's some concern about. Shall we have to do what we do whatever resource is forgiven and we're gonna try to use them this past weekend that the decision for our elected leaders. But when all said and done but the system that we have we have to figure out how to make prosecution of those resources. Once those decisions are made. Eric. Can you come back and our next hour or talk a little bit about deductions are listeners might not know about video perfectly. Thank you Eric Eric Schmidt. Forty years of tax experienced. Andy's spokesperson for the Internal Revenue Service in Washington. Coming up next unrealistic today how to not file your taxes in April. We'll have that story straight ahead on our special show. Tax time. If you love listening to us talk about real estate and join the conversation. Buying real C today radio on FaceBook. We can't wait to hear from you that's real estate today radio on FaceBook. This is a real estate today is location. Location. And information. Back again where their special show tax time. All about use your house and all the deductions you can take when you file your income taxes this April. And let's of course you don't file this April as in the just letting it slide for May be six months. Yep you can and it's something that many self employed people know. Very well because many people who are self employed independent contractors or basically have income but not a W two. Many of those people wait until October 15. To file. Is illegal yes it is so let's talk about filing not when the tulips are blooming but when the leaves are turning colors this fall. Nearly fifteen million Americans wait until October 15 to file their taxes. The main reason is in many cases they don't have tax is withheld. So instead of getting a tax refund they have to write a check may be a really big Jack. And many of those people have to save up month after month in order to come up with a all that money. No of course if you're self employed the right way to do it the way the IRS wants you to do it. As you write checks to the RS every quarter signature paying your taxes in a timely manner but many people don't do that. They don't pay anything all year long and then they discovered they have a huge tax bill coming their way. And so they push back the farming date six month to save it all up here's what the IRS sets about filing on October 15. First of all it's perfectly fine to do that. But if you do you still need to tell the RS but you're going to wait. You do that by firing IRS form 4868. The application for automatic extension. And you have to file that on or before the April deadline okay. So you can't just ignore it and say hey I'll fire in October. No you have to fire of the extension form by the deadline. Which this year is April 18. And now another point you do not have to tell the RSY. You're going to wait. No need to do that and they won't ask you for any explanation. Unless. They denied the extension now remember the form is called an application. That's because the RS reserves the right to deny it if they do. You probably have to tell them why you need more time. Now on that form you have to enter your name address Social Security number and information about your spouse if you have one. He'll also have to estimate how much tax shall have to pay when October 15 Doug's role around. Then the IRS asks you to write a check for as much as you can now. You don't have to pay anything. But if you don't you'll be charged interest and maybe penalties for the period between April 18 in the day you actually pay up. So. That's just about it but there's one more thing because there is one way to just skip the April deadline. Do nothing and then fire of two months late. And that is if you're out of a country if that's the case you can fire look to two months later no extension form required. So how about you when you may have already filed your tax is so well done. Or you may be among the majority of US taxpayers who file in April. But if you're truly not ready and you do need more time to save up over some other reason. Don't stress that because in that case the IRS will cut you some slack by letting you fire for the extension. And especially for the self employed that can be really helpful at tax time. If you'd like to hear more realistic today's special show tax time. Either stay tuned for join us online at radio start real tour. And don't forget you spring forward this weekend setting your clocks ahead one hour don't forget and from all of us here realistic today. Thank you for listening. If you're real hazard you can put the entire re was C today show on your website. The next real deep chill on the Radio One 100%. Free to any our members just go to our new web address. Radio dot realtor and play. How we. This is. Real estate today. The number one the real estate show on. In the radio. Welcome back to real estate today. Backed by the professional experience or we'll tours from across America where your most trusted source on the radio for help today real estate information. Real estate today is the official radio program of the national association of real tours and it's real for members in your neighborhood. Hi again I'm Steven Geist great and I'm glad you witnessed today as we look down the road just over one month and help you get ready for tax time. Most American taxpayers filed between right now and April 15 so we're here to look at how your home can help you lower your tax bill. When you find when you sell and every tax year in between. Tax time is straight ahead but first let's go the realistic to the newsroom with Bill Thompson cargo. Stephen has the trump administration set its sights on housing reform Treasury Secretary Stephen the Nugent says. He is already set up a group to study reforming the mortgage market. But Newton told CNBC. I'm committed that under this administration we're gonna have housing reform so that we don't just leave these entities. The way they are they've been sitting there for too long of a period of time. And we need a solution parent we're gonna look at this I think this will be one of the areas where hopefully we will have a bipartisan. Solution. The Newton also says however that housing reform. We'll have to wait until there is tax reform he said in Nazi NBC interview not to expect to see anything on housing right away. If your first time home buyer in California Hawaii or New York. You're gonna have a much harder time getting into a home and you will in Iowa you tall or Minnesota according to a new study by Bankrate dot com. The company ranked the fifty states based on several factors including home affordability credit availability market tightness and homeownership percentage among millennial. Iowa is the easiest state for first timers Bankrate says due largely to which most affordable home prices in the country. A new and socialist of FHA performance data suggests that the agency's reserves are now healthy enough to sustain a cut in the mortgage insurance premium. The Obama administration reduced the premium by core point just days before Donald Trump took office but mr. trump been rescinded that reduction on his first day in office. Well now Brian Chappelle Washington based mortgage policy consultant notes that FHA reserves are above 2.3 percent. Congress is set a minimum reserve of 2%. Chappelle's and now also supports the position of the National Association of Realtors but a premium reduction is justified. The Federal Reserve meets again next week amid growing expectation that they'll raise interest rates again. The Chicago mercantile exchange's fed watch website now forecast the odds are two to one in favor of a rate hike which would be the second in three months. The Federal Reserve's actions don't correctly determine mortgage interest rates but they can move the bond market and that in turn can move mortgage rate. The US treasury. Owes taxpayers is getting billions of dollars from Fannie Mae and Freddie Mac both of which posted healthy profits in the fourth quarter of 2016. Fannie Mae says it'll pay the treasury a five and a half billion dollar dividend Freddie Mac is running the treasury trek for four and a half billion. Both government sponsored enterprises have been paying dividends to the treasury since their government bailouts during the recession. Nimby not in my backyard is typically associated with homeowners who often resist new housing developments close to their homes. But new research by Michael hang concern at the joint center for housing studies at Harvard. Suggest that renter nimby ism helps explain why housing has become increasingly difficult to build in cities with high housing prices. Hankins and says he discovered that renters living an expensive cities say they support an overall increase in the city's housing supply but not. If it's too close to where they live. Those renters in fact shall a nimby attitude toward market rate housing at a level that matches homeowners. Coming up and half an hour more top realistic news thanks bill. And now we have some good news for you today on the outlook for commercial real estate. The latest projections from the national association of real worst. Showed that across America commercial real estate is expected to be on solid ground in 2017. And investors in everything from residential to retail to industrial real estate should have a good year. Joining us now to talk about the latest commercial real estate market survey is George for two. The director of quantitative and commercial research at the national association. Of real torched. George welcome to realistic today. Thank you espionage and very good to be here. We're glad you're here it's a George starting out at the big picture. How's commercial looking for 2070. Commercial is looking pot that we expect demand to continual bribing. They can do is lower across all properties that would be exceptional apartment in a few top level market rents are going up and he continued investor interest. Especially in smaller secondary tertiary markets. So far you invest in residential real estate here in 2017. It. How's it looking for me. Looking a little bit societal what we're seeing right now is a market that is basically he had hideout in terms of the inventory very limited supply of inventory. Underwriting standards for mortgages are still tight lid that a lot of first time buyers a new households are being. I'll walk out of the market so what they're doing their training course these are the multifamily space and their continued to pushed demanded that space. Strong move forward with accompanying rent increases in some markets were looking double digit rent increases for apartment like. Seattle and even national. So it looks like a good year for apartment landlords. It certainly does very rare exceptions namely ending pop market so Washington DC New York San Francisco. I'm rent increases have peaked and working landlords are beginning to offer concessions. But if like your landlord in a smaller market like embassies Gallup national. Come and help Portland even Atlanta Dallas. And Chattanooga Tennessee you'll continue to see a strong appreciation immigrants and I'm talking 5% and about. Interest saying. Now George let's turn to the retail market how's that looking for 2070. The retail market has had a good year in 2016 and then nick petitioned for the for veterans to continue now the dark with poverty goes over twelve million square feet in addition completion sort of matched it which brought the vacancy rate bombard them. Interesting news out of the legal basis the asking rents. I'm Lou reached double over sixteen point five dollars per square foot which was the highest threat level in seven years. So public that a lot of investors are. Finding the fundamentals slogan these seats inside very attractive. How about off this base Georgia and have been a lot of people in America. Owned the office space and it provides a good income. How about those investors in 2017. Traditionally office has made the largest component of investment dollar volume all the blacks to use the apartment properties due to be increased demand. Has taken the number one spot. However looking at the demand for office space we see what we haven't seen quite a few years suburban office driving a lot of the growth. Vacancies are finally bounded off 13%. And in tandem without completions. Are well below that that is sort of figure so going forward we expect it to continue especially as we pointed in our computing industry is on the upswing. George one more question for him. I know that you and I have talked before. About lending standards for commercial investment. And you said that sometimes the money is just not flowing. How's that looking for 2017. Certain point we'd had a landscape in which our special the last two years a lot of money has been chasing commercial properties for a simple reason. Yield in the global environment in which more. Government bonds offer a little hair welcome your percent with the exception of the year treasury. Investors had owned the commercial real estate that sector particularly attractive. So in that piece private investments sold at an equity you've read the pension fund life insurance companies. Had been very active patent and very strong competing for deals either large cap market. In the smaller. Secondary tertiary markets for a lot of our members are active dead. Bulk of funding comes from banks and specifically over 50% of the members reported. Regional and local bank that the main source of funding. And over the last six hit what we've seen the lending standards setting proved how are torn sixteenth marks a reversal of that. Our regulators have been putting pressure on particularly smaller banks in the wake dog frank regulation. What we unbeaten sixty for the first time members reported the banks tightened their underwriting standards in large part. Because commercial risk it makes up a large portion of their portfolio. George thanks again for being here on the show we sure appreciate you joining us thank you. George or two with the director of quantitative and commercial research at the national association. Every two hours. Coming up on realistic today. The man who tried to deduct it. Bobby your own a pro bodybuilder was able to deduct the cost of body oil makes its muscles with it that's next on our special show. Tax time. Real estate today. Connecting you with the real estate professionals. Every week. As we get closer to the deadline for filing our federal tax returns. Let me ask your question. What do these things have been common. An illegal drug lab burns down. Traveling in order to play a standup bass and body you'll. The answer is each one of them was claimed as a tax deduction. That's right a tax deduction on federal income tax returns. And those are the only crazy tax deductions out there turns out people will claimed just about any thing. But did they win. Let's find out joining us now is cinder block with kiplinger's personal finance. Sandra has been a personal finance columnist for more than eighteen years. And kiplinger's of course is one of America's leading sources for personal finance news and business forecasting. Sandra welcome to realistic today. Well senator recently kiplinger's published an article called seventeen tax deductions. You won't believe. No we don't have time for all seven team but let's walk through maybe the top five beginning with the man who deducted the cost of body oil. Eight pro bodybuilder was able to deduct the cost of body oil to making a full clip from it big red. The tax court ruled that he can deduct the cost that will ask a business expects. Out. But what did calculations or there's some limit he I'll says this bodybuilder. Also wanted she'd be adapted. The Costa buffalo meat and special vitamin supplements can enhance strength and muscle development. And who knows why does the ire at appeals court said you can deduct oil but not to buffalo meat so I guess that there are limits to pick which. By age you're body Dodik can keep your oil apparently is deductible. That is awesome. Alexander how about the person that deducted expenses. Associated with a barking. Dog. Who hasn't been annoyed at a parking dot great ranked and self employed consultant who worked at home. To her neighbors and the Condo association. Alleging that her work with constructed by Deloitte from plant construction embarking blocks she deducted 26000. Dollars an attorney fees. Associated with the proceedings and different extensions. The direction that these were personal content that the tax court allocate half. They write off because she's 50% of the Condo for business. And they hired failed to prove that the blade didn't adversely affect your business she said the residence so which he concurred neighbors to court because they're barking dog. She was able T deduct at least part of that cost. Interesting. How about the man who tried to deduct his travel expenses on his way to playing the standup bass. Eight based clear. Immediate professor. Traveled PG ads rehearsals and performances keeping skilled start. So he could play with what other well that musicians ire at city could deduct it trapper caught because it actually playing debate. And performing was upgraded teaching duties but when he appealed to the tax court allowed to the right off because. He train it created what he saw and heard at these sixteen and caught it change is steeped. What about the guys who had an illegal drug lab in his house. Can cause the whole house to burn down. And he claimed tax deduction. Extract a uniter not the parent has just filed under it's breaking bad file but if I purchased it dish detergent that building. And turned it into the drug glass out. Unfortunately hot creek in not ignited his ultra chemicals and the fire gut of the buildings. Rendering it I usable. Patton at eight in any a classic case to cut back he claimed he was entitled to a 9000 dollar casualty locked. And even though he was involved in an illegal activity contracted make urgently good. The tax court allowed in to claim they ride up cash and at that bigger issue this speaks to is that the Irish would kind of agnostic on. Crying maid through it bit deep reverse of that is if you are arrested for us feeling. IRS will expect GT pay taxes on those illegals gain. The and that often happens people you know will go to jail for stealing our. That they embezzlement or something like that minute by debt in addition to dig jail time they owed taxes on the money that they stole. Oh my gosh. Will that make sense because you know it's all about the income when it comes and RS that right. That's an I or keep it happened they get to get it's written into the code it's that the fact that she did not report the income. And that it was illegal did not mean they needed excused from taxes you still have to pay taxes. Oh my gosh this is fascinating on one more for your the man who is locked up in prison are mistake. They were innocent. And afterwards they were compensated for the asked. And they RS. Try to tax money. A cage yet it actually accurate timely one because you know we hear of it every day. About someone who was wrongly imprisoned thanks in part to advances in. DNA testing and it helped wrongfully incarcerated keeps people with their freedom. Compensation that these victims received. Is now fully exempt from federal taxes. That this change came in 2000 to keep a lot of people might not be aware that that I think. Debt is important to know because often times he's people do received. Significant amount of compensation that they shed. And that they keep it counterattacked with that thinking it would be a welcome relief because a lot of times. Bearish types of legal work they are not eccentric. We'll Sandra I sure do appreciate you being on the show and talking about some crazy tax deductions that actually. Made it through tax court thank you. Thank you. Cinder block with kiplinger's personal finance. Coming up unrealistic today. What owning your home means steer federal income tax. The first thing to think about it actually is a property tax deduction. Consistently warm you'll always have and never go away that's coming up right here on realistic today. But first it's time for real knowledge. A special segment on realistic today designed to help you have a better understanding of what's happening in realistic. And today we're talking global not buying or selling. Bucked the fact that any are works with real estate associations. And real estate professionals all around the globe sharing information. We learn from them they learn from costs let's talk about that now with NAR's liaison to France. Bill Armstrong vice president of Macintosh real tours in Frederick Maryland. Bills the former president of the Maryland association of real torch and he served as treasurer for NER three times bill welcome to realistic today. Well thank you even restore order stick quick we're glad you're here what. Is involved in being NAR's liaison. To the nation of France. Well it's generally an ambassadorial type of position and they are hands GDP plus international. Member countries so we oftentimes say its largest professional trade association in the world we have countries all around that are members and said represented destroy our national meetings and belong to the National Association of Realtors and a lot of that is so that they can learn from what we do. And we don't spouse you know everything we learned from them as well everybody's got things and some of their systems a good place for. A thousand years. But some of November or in their infancy I was in Dubai and a couple of years ago and they don't. Borrowed everything from all the countries around and learn didn't set up a new system there and it's a very good efficient system. Excellent so what do you hope to bring it. To France and also bill what do you hope to bring back. From France. Well we were just there in December for a large meeting and it's called an item once test and the K account for not we went there and I listened to a lot of their concerns they've got similar issues like we do they are now just realizing that much of what we do in terms of advocacy. On behalf of the consumer. And on behalf of our members is such a value head. For membership. And what we're doing at and they are in the United States it is actually representing the interests of consumers there are no groups out there that are looking at Turk. Preserving the mortgage interest deduction and maintaining good each and 31 tax deferred exchange. Abilities. Their number potentially do and the consumer and I'm just talked about a homeowner or an investor they're not organized. To the degree that we are and we've got a team here of those on Capitol Hill. We'll go thank you for joining us and talking about any ars global reach. It's my pleasure thank you student. This is really easy today. All real estate all the time. And we are back when our special show tax time. Strategically planned to air just over one month before your federal income taxes. And in today's show we're looking high and low to find every deduction out there for every homeowner listening today. Is that you know we're trying to save you money tax time is coming right up. But first let's check in with Bill Thompson in the realistic today newsroom Pardo. Stephen it's only march but the housing market in Los Angeles is already overheated. CNBC reports on one recent open house that had a dozen potential buyers lined up even before the door opened. 120. People marked bath home is a favorite on red fringe web site Fabrizio parry the reds and agent showing the property talked to CNBC. This spring rash has officially begun. And sellers to price their homes competitive we can expect to see a lot of action typically it's for a home like this you expect to see upwards of fifteen to twenty offers. Perry so she was on a similar listing recently that had 66. Offers. Appealing a property tax assessment may seem a daunting task for most homeowners. Source Chicago based technology start up called Turbo appeal has launched a software application a place they put the homeowner quote in more control of low. After paying a flat fee of 29 dollars. You typing your address and Turbo appeal says its software will then compare your property with others nearby to see if an appeal is awarded for the current year. Herbal appealed and gives you access to those comparable properties official forms and educational resources. For now although Turnbow appeal was available only in selected large cities. She liked you. Thanks don't. We're continuing our countdown to April 15 now on our special show. One month out from filing your federal income tax returns. It's getting close but there are still plenty of time to make sure you get it all right especially. As a homeowner. So let's take a look at your taxes if you own your own home. And let's get some practical advice on how to pay your fair share of taxes. But no more than that. Joining us now is Evan Linear senior policy representative for federal taxation at the national association of real tours. Evan welcome to realistic today and I didn't do Richard and English student from bottoming. You're very welcome we're glad you're here and let's start of the very beginning if one of our listeners is a new homeowner and they've never filed before. As the actual owner of our house. What should they be looking for when they file their income taxes. Well there are a couple of essential things first offered going to want to put the papers or receive dramatic close on the property in the first place where the confinement again. The tax talk. Chart condition would perceive some important tax documents in the mail. Early in the year which would indicate how much it paid in property taxes and mortgage interest. Finally is also Smart idea to keep track ball paperwork you get in connection infection upper improving her home just to prove to be important later off. Attacks targeted toward bill put your hands on this paperwork to help you thought the Thai exports. Because. Quite often before people buy a house but used the standard deduction and women buy a house what happens. Well that's what usually opens the door to organizational and still people which means lower taxes. Interesting. So Evan let's stick with that new homeowner for a minute there are things they can deduct that first time. That won't happen every single year points for instance. Can you tell us about that in other one time deductions they might have the first time they've trial after purchasing a house. Certainly don't mostly disappointed many who purchase a home worth of mortgage corporation points. Which is essentially just prepaid interest groups charged lower the interest rates. Then of course a monthly payments along with a pointer specifically distraught about such on a settlement statement. Or separately paid for. Berlin deducted from all proceeds mission will be deductible back Kabila a big number. IC and now Evan let's take a look at the long run. Every year a homeowner can rely on the mortgage interest deduction and the property tax deduction can you tell us about those big ticket items. The first thing to think about actually is a property tax deduction because listen to warm you always have and never go away even if you purchased a home to cash. Group paid off the mortgage and overtime miss a payment usually goes out. The second one is almost as common the massive amount of interest with the tail on the mortgage law. This is often the biggest reduction people can taken especially in the early years. But the mortgage when most of the payment goes to pay for interest. Suffer most people. Mortgage interest just fully deductible. There are limits but the most people's four deductible. That's interest in. In it and also let's look at one of the best tax benefit. Of all the capital gains exclusion. Evan tell us about that. We rushed a delicious one of the best provisions in the tax law for homeowners. If you sell your main home at a profit you Paul who wanted to play any capital gains tax on the gain. This is because since 1997. The tax law allows single people to exclude or not pay tax on. Up to 250000. Or to gain on the sale all the principal residence. Mr. married filing a joint return the total exclusion doubled to 500000. Have a cold for a not troop all of them lived in the home pro was two years. The five year period. And the other day initial hole. But in some cases these rules are relaxed in case would hardship for example sold at a partial about this equation has developed these hardship rule fall under the categories of change or place of employment. Health reasons. We're enforcing circumstances sole dissenter Monica happens even if you don't lived in the house for two out of five years you can get a partial exclusion. It took me to test but the really beneficial role to most homeowners would missile. Well Evan I'd really appreciate you talking to us about homeownership and taxes. And I appreciate you being on the show and it aren't aren't always enjoyed it thank you. Evan letting your senior policy representative for federal taxation. At the national association of real sports. Coming up unrealistic today we'll talk to the IRS. About deductions. You might not know about to cheer. In new wrinkle to keep. Our standard amount. If people could claims to qualify for this deduction that's next on our special show. Tax time. This is real estate today. Because your home might beat. Your biggest investment. And we're back with our special show. Tax time as we count down to the deadline for filing your federal income tax. There's just a little bit more than one month ago and we're going to continue our conversation now with Eric Smith puff. Forty year tax veteran and a spokesperson. For the IRS in Washington DC. And right now we're going to talk to him about deductions. You might not know about that's a good topic is and it hi Eric thanks for coming back. I'm ready I'm glad to be actually will thank you Eric so Eric most homeowners know about the mortgage interest deduction. About the property tax deduction and when they sell their house the capital gains exemption. But here's a question for what deductions. Might our listeners not know about. When it comes to owning a home. Well huge one Stephen and clearly just doesn't apply to everybody and it's one that people probably occurred around under the new wrinkle in the last couple Hancock may not have heard about it that's the home office deduction. This misuse of your home deduction. As a general rule this have to be in the situation where you're making money profit making business if you're losing money is not can help you make Jamaican money. And you do this on a regular basis. You're running a business that meeting with client care for those kind of things. This can help you here's the new wrinkle Steve. Our standard amount that people could claim to qualify for this deductions. And it's five dollars per square foot putt to 300 square feet so I could very multi 15100. But if it's a smaller space under 200 is going to be an equivalent multiple. What Eric that's sounds much simpler than the old way of calculating your home office deduction. So that's great news so what other deductions dia have their listeners might not know about. Well the moving expense deduction is certainly available for people who. Typically moved to take a new job or a changed jobs. In typically what you're talking about is morning. Across state or across the country may be around the world could beat any adult should give it hell local moved to within the metropolitan area probably in October qualified but for these other moved chances are if you have out of pocket expenses moving yourself moving your stuff to a new location. You can claim that. As a movie expense deduction. Looking at his next question is not about a deduction but about a credit. You know energy tax credits. Seemed to be on again off again you never really know if there are in place what's the situation. For the tax year 2016. And it but he say it's an on again off again thank god people are planning ahead kind of pay attention. The other two different ones and money is essentially four more energy efficiency like installations. Energy efficient doors windows. Furnace is okay good things it's kind of a limited credit though Steve. It's only up to 500 dollars and that whole lifetime credit. So if you cheek in this credit before. Because you replaced your windows or whatever. It may be a chance that you don't have anything left over. But you may have to look at back at that patrolled returned to figure that out but. If you do it is potentially something they can't help you the other one. That's more generous is more geared to alternative energy for wind geothermal those kinds of things. If you do that in 2016. You may qualify to keep you're not sure. The type of equipment that you put in qualifies. As a way that the manufacturers. Can self certifying and they can give you the information that you need either on the web side torque. Some of the packaging error or whatever time and electric getting. And generally speaking. The law allows them to self certify that equipment meets the standards under the law. Excellent advice or Eric before I let you go. This year it's not April 15. Is the eighteenth correct. Well April 18 and that happens to be. Our holiday in the District of Columbia and there's a very old provision of the law that says if there's a holiday in DC. It affects the deadline nationwide this company called emancipation day. So that's some Monday the seventeenth Kodak is everybody no matter where you live till Tuesday April 18 to file. All right then it's always a pleasure to have you on the show and I really appreciate you talking about deductions that people might not know about. I'm glad to be reduced thanks Erik Erik Smith who brings forty years of tax experience to the show. And who is right now these spokesperson for the Internal Revenue Service. In Washington DC. Coming up on realistic today. What can you do if you don't have enough money to pay your taxes. Well help is available we'll talk about it next right here on realistic today. If you're hungry for real estate information follow real estate today on Twitter. Shares segments listened to them again and be the first to know what's on next weeks ago. Just search real estate today on Twitter. Real estate today. Because you love real estate. We're back again now whether or special show tax time. There's just a little bit more than one month left before your federal income tax return just do. And as we mentioned a little earlier the vast majority of Americans will file between now and April 18. That's right this year is not April 15. The deadline is the eighteenth. So you have a few extra days. Now as we wrap up today's show on taxes or wanted to talk with you about how are you actually pay those taxes and what to do if you can't. No sure most people have their taxes withheld automatically. At work. No that's great in a lot of ways because for one and you never see the money so you can't blow it. To the government gets its money and that allows them to function. And three many people have a little bit more with held the NAFTA. And so they get a tax refund that's one of the best things about the whole tax process the refund. But that only works if you actually have taxes withheld. Or if you make quarterly payments all yearlong. Many self employed people or independent contractors. Don't do either Juan but that only works if you actually have taxes withheld. Many self employed people or independent contractors. Don't. They either write checks throughout the year to the Ira is religious weight and they read a much bigger check at tax time. Which is great if you have the money but what if you don't what if you really don't have enough cash to pay your federal income taxes. What can you do. But the fact is it happens but there's no need to panic. Because the RS understands. That sometimes people just don't have enough money when it comes time to file. And it's important to note that if that's you you have options. First you can just go ahead and fire your income tax return and send as much money as you can. If it's not the full amount the IRS will bill you for the rest. However there is a better way if you don't have enough money to pay all or even part of your tax bill. You can start a payment plan with the Internal Revenue Service. Did you know that no it's true. In most cases the IRS will allow you to start an installment payment plan. You have to apply either over the telephone or online but it legit and it helped millions of people get through a financial pinch. In many cases they'll let you name the amount that your able to pay so say your tax bill is 2400 dollars. You Mike Tobin you can afford to pay 200 dollars per month. That way and you'll be all paid up within one year. Maybe a little longer though because should be paying interest to but if the RS agrees. A where you ago. Now a couple of points one. You still have to file your tax return you can't get back filing that federal income tax return is required no matter how you pair. The other thing is your tax bill has to be less than 50000. Dollars. Plus what if you have a payment plan for one year and then the next year you get a refund. Well you won't get it because the higher wrestle automatically applied at refund to the balance due on your payment plan. That's important and a and also what do you miss a payment well in that case. The entire tax bill will be due. This is one installment plan. You cannot play around. In one last thing. There is a fee associated with doing an iris payment plan and those fees went up on January 1 of this year. How much is it. Well it depends on your financial situation and how are you pay. The cheapest that he is for direct debit at 31 dollars the most expensive. Is if you write the IRS a check every month that's 225 dollars. But even so it's important to note that if you are expecting a big tax bill you do have options. You just have to be upfront about it file your return and then apply for the payment plan. And hopefully. You can avoid stressing out when tax time comes. Coming up next week unrealistic today we'll look at the spring market. Spring is almost here and when it arrives it'll bring the hottest the busiest and the fastest real estate market of the entire year. We'll have expert advice on how to navigate the spring market where the Europe of buyer or seller or homeowners. The spring market is next week right here on realistic today. And remember you can always listen online radio start realtor and one last word. Don't forget this is the weekend. You'll lose one hour of sleep. But you have an extra hour of daylight to get stuff done and from all of us here realistic today. Thank you for listening. If you're realtor you can thirteen tie your really see today's show on your web site. Then that's real deep show on the Radio One 100% free and they are members. Just go to our new web address radio dot realtor and click. How real.