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How ‘Fiscal Cliff’ Could Affect Mortgage Interest Deduction

Sat, 17 Nov 2012 15:00:41 +0000

It is arguably one of the most popular U.S. tax deductions, and for some it is the necessary stimulus to buy a home.

The mortgage interest deduction, however, is now at risk, due to negotiations over the so-called “fiscal cliff”—the year-end deadline for large spending cuts and the expiration of tax cuts.

While it is impossible at this point to know what the outcome will be, it is certainly worth running through the possibilities.

First, let’s do a primer on the deduction as it stands now:

The deduction lets homeowners reduce their taxable income by the amount of interest paid on their mortgage. This can be on the principal residence or a second home, but not on mulitple investment properties. Taxpayers are eligible for this deduction only if they itemize. Finally, the interest deduction is capped at $1 million of your mortgage.

This deduction, which is the largest housing-related subsidy in the U.S. tax code, reduced income-tax revenue by $79.9 billion in fiscal year 2007, according to the Office of Management and Budget. (Read More: Could Housing Be the Antidote to the ‘Fiscal Cliff’?)

So what is that in real cash savings to taxpayers? Number crunchers at the Wharton business school did the math:

For those making less than $40,000 a year, the average tax savings is about $100. But in that bracket less than one-quarter of homeowners itemize deductionsl, so most don’t get anything.

For those earning up to $250,000, the average savings, based on average mortgage amounts, would be $1,200-$2,600 a year. For those earning more than $250,000, and 100 percent of them itemize, the average savings is $5,400 a year.

Now to the proposals—and they are many.

One, released by the Simpson-Bowles commission, would cap the mortgage interest deduction at $500,000 of the home’s value and limit the deduction to primary residences. (Read More: Fiscal Cliff: Complete Coverage.)

A bipartisan plan from Domenici-Rivlin would limit the deduction to just $25,000 worth of mortgage interest.

Other proposals include eliminating the deduction only for taxpayers earning $250,000 or more, ending the benefit for second homes, ending the deduction entirely or limiting the amount of all itemized deductions to $25,000. That last one was advocated by Mitt Romney, but apparently some Democrats on Capitol Hill are starting to espouse it. (Read More: Democrats Like Romney Idea on Income Tax)

Without one proposal leading the pack, again, it is impossible to boil down the real cost to homeowners, but suffice it to say that anyone in the business of home ownership is opposed to reducing the mortgage interest deduction.

“It’s chilling the market,” said Jerry Howard, CEO of the National Association of Home Builders. “Whenever there is uncertainty surrounding the value of an American home, why would you expect people to go out and buy a home? Or, just as much to the point, when there’s uncertainty about the value of a home why would someone put their house on the market to sell it, that’s why this whole debate to me is counter-productive and is only retarding the nation’s economic recovery.”

“The mortgage interest deduction is vital to the stability of the American housing market and economy, and we will remain vigilant in opposing any future plan that modifies or excludes the deductibility of mortgage interest,” said Gary Thomas, president of the National Association of Realtors. (Read More: How Will the ‘Fiscal Cliff’ Hurt You? Depends What You Earn.)

Whatever the arguments for or against the mortgage interest deduction, two things are indisputable. Going over the fiscal cliff will kill the housing recovery, but said recovery is already so tenuous that yet another barrier to entry will hurt.

—By CNBC’s Diana Olick
—Realty Check producer Stephanie Dhue contributed to this report.

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Article source: http://www.cnbc.com/id/49822678?__source=RSS*blog*&par=RSS

Bay area man facing jail after real estate scam

Wed, 22 Aug 2012 08:15:08 +0000

SAN FRANCISCO (AP) – A San Francisco man has been sentenced to five years in prison for an investment scam involving foreclosed properties.

The San Francisco Chronicle (bit.ly/RcvqiL) says 56-year-old Keith Wilson told investors that his Tribecca Properties and Lone Cedar Corp. bought foreclosed properties in Alameda, Contra Costa and Santa Clara counties and resold them for profit.

Wilson pleaded guilty last month to the $347,000 scam.

District Attorney George Gascon says Wilson used most of the money on shopping sprees and political contributions.

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Information from: San Francisco Chronicle, http://www.sfgate.com

Article source: http://www.ksby.com/news/bay-area-man-facing-jail-after-real-estate-scam/

Kidder Mathews Adds 7 Brokers to its Bay Area Offices – Virtual

Mon, 04 Jun 2012 06:02:35 +0000

Kidder Mathews continues to grow its Bay Area commercial real estate group, and recently added 5 brokers to its downtown San Jose office, and 1 each to its San Francisco and Redwood Shores offices, bringing the firm’s Bay Area roster to 73 agents.

San Jose, CA (PRWEB) May 30, 2012

Kidder Mathews continues to grow its Bay Area commercial real estate group, and recently added 5 brokers to its downtown San Jose office, and 1 each to its San Francisco and Redwood Shores offices, bringing the firm’s Bay Area roster to 73 agents. All 7 brokers joined from Grubb Ellis, which is being purchased by BGC Partners.

“The agents we’ve hired bring a varied mix of specialties to enrich and expand our service lines in each of our offices,” said Reed Payne, Executive Vice President of Brokerage Services for Kidder Mathews.

Joining Kidder Mathews San Jose office are veteran brokers Joe Scuncio, an office/RD specialist, Nigel Keep, investment properties, Kristopher Blais, a retail specialist, along with James Viso and Shaun Enferadi, both industrial brokers. Mike McCormac, an office specialist, joins the firm’s San Francisco office and has been named Vice President, and Bill Kurfess, an office/RD specialist joins the firm’s Redwood Shores office and has been named Senior Vice President. “We are thrilled to have this caliber of brokers join our group,” says Payne.

Kidder Mathews is one of the fastest growing commercial real estate firms on the West Coast with over 400 real estate professionals and staff in 9 offices in California, Washington, and Oregon. We offer a complete range of brokerage, appraisal, property management, and consulting services for all property types. For more information go to http://www.kiddermathews.com.

For the original version on PRWeb visit: http://www.prweb.com/releases/prwebkidder-mathews/adds-bay-area-brokers/prweb9554108.htm

Article source: http://www.virtual-strategy.com/2012/05/30/kidder-mathews-adds-7-brokers-its-bay-area-offices

Kidder Mathews Gains 7 G&E Brokers

Fri, 01 Jun 2012 23:47:42 +0000

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Bill Kurfess, an office/RD specialist,
is the firm?s SVP in the Redwood
Shores office.

SAN JOSE, CA-Kidder Mathews continues to grow its Bay Area commercial real estate group, adding five brokers to its downtown office and one each to its San Francisco and Redwood Shores offices. The new hires bring the firm’s roster in this region to 73 agents, with all seven brokers hailing from Grubb Ellis.

The local office welcomes veteran brokers Joe Scuncio, an office/RD specialist; Nigel Keep, investment properties; Kristopher Blais, a retail specialist; and James Viso and Shaun Enferadi, both industrial brokers. Mike McCormac, an office specialist, joins the firm’s San Francisco office as VP, and Bill Kurfess, an office/RD specialist, joins the firm’s Redwood Shores office as SVP.

“The agents we’ve hired bring a varied mix of specialties to enrich and expand our service lines in each of our offices,” said Reed Payne, EVP of brokerage services for Kidder Mathews, in a prepared statement. “We are thrilled to have this caliber of brokers join our group.”

Payne tells GlobeSt.com that, while more new hires aren’t imminent, he is always seeking new agents to join the firm. In Northern California, the company is looking to grow its property-management and appraisal divisions, having in the last 60 days hired Nanci Vega as senior property manager, and Brad Paul as head of appraisal.

“The overall vision for the company is to be recognized as the premier provider of commercial real estate services in the Western U.S.,” Payne continues. “With that as the vision, the goal is to have the highest-quality agents we can get, and these hires definitely fit that goal. We’ve hired people in almost every specialty we deal with, and they are all very capable, very strong agents.”

As GlobeSt.com recently reported, earlier this month Kidder Mathews broke ground on Motion Water Sports’ 135,000-square-foot Pacific Northwest corporate headquarters in Snoqualmie, WA. Also, in April, Kidder Mathews and Binswanger were retained by Kimberly-Clark Corp. to sell its exceptionally rare waterfront industrial property in Seattle. Located on the central waterfront at 2600 Federal Ave., the property boasts more than 2,500 linear feet of deep-water industrial shoreline area and a total land area in excess of 66 acres. It is immediately adjacent to Naval Station Everett, home of the USS Nimitz carrier battle group, and the Port of Everett main terminal.

Categories:

West,
Industrial,
Office,
Retail,
Executive Moves,
San Jose

Carrie Rossenfeld Carrie Rossenfeld is a reporter for the West Coast region of GlobeSt.com and Real Estate Forum. She was a trade-magazine and newsletter editor in New York City for 11 years before moving to Southern California in 1997 to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics ranging from intellectual-property licensing and giftware to commercial real estate. She recently edited a book about profiting from distressed real estate in a down market and has ghostwritten a book about starting a home-based business.

Article source: http://www.globest.com/news/12_363/sanjose/office/-322045.html

Kidder Mathews Adds 7 Brokers to its Bay Area Offices

Wed, 30 May 2012 17:34:10 +0000

Kidder Mathews continues to grow its Bay Area commercial real estate group, and recently added 5 brokers to its downtown San Jose office, and 1 each to its San Francisco and Redwood Shores offices, bringing the firm’s Bay Area roster to 73 agents.

San Jose, CA (PRWEB) May 30, 2012

Kidder Mathews continues to grow its Bay Area commercial real estate group, and recently added 5 brokers to its downtown San Jose office, and 1 each to its San Francisco and Redwood Shores offices, bringing the firm’s Bay Area roster to 73 agents. All 7 brokers joined from Grubb Ellis, which is being purchased by BGC Partners.

“The agents we’ve hired bring a varied mix of specialties to enrich and expand our service lines in each of our offices,” said Reed Payne, Executive Vice President of Brokerage Services for Kidder Mathews.

Joining Kidder Mathews San Jose office are veteran brokers Joe Scuncio, an office/RD specialist, Nigel Keep, investment properties, Kristopher Blais, a retail specialist, along with James Viso and Shaun Enferadi, both industrial brokers. Mike McCormac, an office specialist, joins the firm’s San Francisco office and has been named Vice President, and Bill Kurfess, an office/RD specialist joins the firm’s Redwood Shores office and has been named Senior Vice President. “We are thrilled to have this caliber of brokers join our group,” says Payne.

Kidder Mathews is one of the fastest growing commercial real estate firms on the West Coast with over 400 real estate professionals and staff in 9 offices in California, Washington, and Oregon. We offer a complete range of brokerage, appraisal, property management, and consulting services for all property types. For more information go to www.kiddermathews.com.

For the original version on PRWeb visit: www.prweb.com/releases/prwebkidder-mathews/adds-bay-area-brokers/prweb9554108.htm

Article source: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/05/30/prweb9554108.DTL

Bay Area Property Management Company, Stokley Properties Inc., Announces a …

Sat, 25 Feb 2012 20:31:33 +0000

Stokley Properties Inc. discusses the state of the rental market, which is still red hot in the Bay Area, the greater Walnut Creek and the Contra Costa area.

Walnut Creek, CA (PRWEB) February 24, 2012

Stokley Properties Inc., a Bay Area property management company that handles properties in Concord, San Ramon, Brentwood, Martinez and Oakland, offers advice for landlords and property owners. The rental market is still hot; however, some landlords are still making the mistake of pricing their properties too high and at a price that is not warranted.

Many owners are not experienced property managers. They believe that because the market is hot, they can get the price they want for their property, regardless of its condition. This is absolutely not true. Clients who are well off will pay top dollar but only when the property deserves the price. Many property owners may only own one rental property and have not had the opportunity to truly understand the dynamics of the property management industry.

Prospective renters must be aware that rental is a highly competitive market. They need to be prepared.

Stokley Properties has been offering expertise and valuable advice to tenants and property managers throughout the East Bay since 1989. It is more than just a property management firm. It also specializes in investment properties throughout the East Bay and Northern California. Stokley will offer sound investment advice to assist investors in achieving real estate goals. Whether the client is looking to buy or sell an investment, Stokley Properties will lend its expertise to maximize a client’s investment value.

“It’s not easy to find the right property management company. Most companies lack the true dedication and attention to detail it takes to achieve success with the properties, the tenants and the landlords. But, Stokley Properties is different. From the first phone call to the follow-up, property prep and ultimate securing of an appropriate tenant, Joe Stokley and team take care of business from A to Z,” Debbie Rossetto of Legacy Real Estate Associates said.

For more information about Stokley Properties Inc., call 925-658-1415, or visit the company on the web at www.stokleypropertieseastbay.net and www.stokleyproperties.net. Stokley Properties Inc. is located at 1630 North Main St., Suite 54, in Walnut Creek.

About Stokley Properties Inc.

Stokley Properties Inc. is a licensed property management company and California real estate brokerage firm. It provides property management services in Contra Costa and Alameda counties in the San Francisco East Bay Area.

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For the original version on PRWeb visit: www.prweb.com/releases/prwebproperty-management/bay-area/prweb9224566.htm

Article source: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/02/24/prweb9224566.DTL