NEWS YOU CAN USE
APRIL 2019 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES
Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn.
No matter how long the winter, spring is sure to follow. ~Proverb~ Contents
Pg.
Dickson Realty Portola Office-The Funny Side of Taxes
2
Sales Statistics Reports
3-5
C.A.R. 2019 Economic & Market Forecast (excerpts)
6-9
Guild Mortgage Corner New Tax Guide
10 11-13
Women Ski Wear Then and Now
14
Ski Resort Mountain Information
15
April Calendar and Event Details
16-17
Photos courtesy of Sierra Booster & Derek Beverly
Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700
NEWS YOU CAN USE
APRIL 2019 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES
Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn.
The Dickson Realty Portola Team is always available to provide excellent and dedicated client service whether you are considering buying or selling a home. Our team of seasoned professionals, all Realtors®, possess the most current and comprehensive market information and, combined with their knowledge and experience, they are uniquely qualified to be expert guides in your real estate venture. Call, e-mail, visit our office, or access us on the web. We are here for you 24/7. Office Phone: 530-832-1700 Email: portolainfo@dicksonrealty.com Web: www.Dicksonrealty.com
¨ ¨ ¨ ¨ ¨
FUNNIEST TAX QUOTES "I put all my money into taxes. They're the only thing that's sure to go up!" ~Anon~ "The Government says we should be proud to be paying taxes. I think I could be just as proud for half the money.” ~Arthur Godfrey~ "Why does a slight tax increase cost you two hundred dollars, and a substantial tax cut save you thirty cents?” ~Peg Bracken~ “If Patrick Henry thought that taxation without representation was bad, he should see how bad it is with representation.” ~Farmer’s Almanac~ “I owe the government $3,400 in taxes; so, I sent them two hammers and a toilet seat.” ~Michael McShane~
¨ “The hardest thing in the world to understand is the income tax.” ~Albert Einstein~ In order to simplify tax collections, the IRS has a new, easier to use tax form with only two lines: 1. How much money did you make this year? $_________ 2. Please send it in.
Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700
NEWS YOU CAN USE
APRIL 2019 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES
Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn. The sales statistics presented are a 12 month overview and comparison of sale activities for the months of February 2018 through February 2019 covering Median Prices, Lowest & Highest Sales, Number of transactions and Average Days on Market. The sales reported are for Single Family Residential and Condo/Townhouse sales in each of the areas. (Time share and/or shared ownership are not included in the statistics presented.) The data source is the Plumas Multiple Listing Service with data pulled on March 10, 2019
PORTOLA
MEDIAN SALES PRICE
LOWEST SALE
HIGHEST SALE
RESIDENTIAL SOLD
AVG. DAYS ON MARKET
FEB. 2018
$
175,000 $
91,000 $
250,000
4
211
March
$
125,000 $
87,000 $
245,000
5
124
April
$
104,000 $
93,000 $
115,000
2
152
May
$
169,000 $
81,500 $
258,000
5
232
June
$
161,500 $
144,000 $
601,722
6
248
July
$
167,500 $
122,000 $
715,000
5
121
August
$
136,000 $
46,400 $
198,000
9
116
September
$
189,000 $
100,000 $
285,000
5
88
October
$
149,000 $
65,000 $
310,000
10
142
November
$
206,000 $
76,000 $
235,000
6
127
December
$
193,950 $
40,000 $
350,000
8
129
January
$
175,000 $
140,000 $
255,000
5
122
FEB. 2019
$
167,000 $
55,000 $
555,000
6
128
LOYALTON
MEDIAN SALES PRICE
LOWEST SALE $
FEB. 2018
$
-
March
$
294,500 $
190,000 $
April
$
315,000 $
270,000 $
May
$
262,000 $
262,000 $
June
$
-
-
July
$
169,000 $
107,500 $
August
$
382,500 $
370,000 $
September
$
-
$
-
$
October
$
-
$
-
$
November
$
150,000 $
150,000 $
December
$
265,000 $
265,000 $
January
$
300,000 $
300,000 $
FEB. 2019
$
-
-
$
$
-
HIGHEST SALE $
$
$
-
RESIDENTIAL SOLD
-
399,000
2
104
442,000
4
66
262,000
1
57
-
-
459,000
6
122
395,000
2
59
-
-
-
-
-
-
150,000
1
157
265,000
1
100
300,000
1
237
-
-
-
$250,000 $200,000 $150,000 $100,000 $50,000 $-
18 ch il y 20 a r Apr Ma une uly s t . J gu ber e r er J B M r b FE Au tem cto mb mbe uary 19 e p O e n 20 v e c a . o S J B N De FE
AVG. DAYS ON MARKET
-
-
PORTOLA 12 MONTH MEDIAN PRICE TREND
LOYALTON 12 MONTH MEDIAN PRICE TREND $400,000 $300,000 $200,000 $100,000 $-
18 ch il 20 a r Apr Ma y une uly s t . r B M J J gu be be r er r FE u b m 9 be uary A te cto e m m 01 p O e n 2 v e c a . o S J B N De FE
Effective year end 2018, the market areas for statistical reporting in Eastern Plumas and Sierra Counties have been expanded. This will provide a more comprehensive overview of sales activities in the overall market area. Dickson Realty is dedicated to helping you keep a pulse on the local market and real estate related information by providing the latest news, trends, and issues affecting the area’s real estate market.
Dickson Portola Team
289 Commercial Street | Portola, CA 96122 | 530.832.1700
NEWS YOU CAN USE
APRIL 2019 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES
Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn.
GRAEAGLEBLAIRSDEN
MEDIAN SALES PRICE
LOWEST SALE
HIGHEST SALE
RESIDENTIAL SOLD
AVG. DAYS ON MARKET
GRAEAGLE-BLAIRSDEN 12 MONTH MEDIAN PRICE TREND
FEB. 2018
$
175,000 $
175,000 $
175,000
1
54
March
$
268,000 $
81,000 $
445,000
11
150
April
$
257,000 $
172,000 $
265,000
3
172
May
$
217,500 $
90,000 $
440,000
6
264
$400,000
June
$
259,000 $
185,000 $
444,000
9
277
$200,000
July
$
235,000 $
208,000 $
460,000
7
88
August
$
282,000 $
175,000 $ 1,130,000
15
178
September
$
268,800 $
218,700 $ 1,575,000
9
131
October
$
350,000 $
250,000 $
740,000
9
121
November
$
262,500 $
213,682 $ 1,255,000
6
207
December
$
225,000 $
200,000 $
510,000
7
220
January
$
336,488 $
336,488 $
336,488
1
31
FEB. 2019
$
560,000 $
560,000 $
560,000
1
175
GOLF COURSE COMMUNITIES
MEDIAN SALES PRICE
LOWEST SALE
HIGHEST SALE
AVG. DAYS ON MARKET
FEB. 2018
$
367,000 $
March
$
-
$
April
$
-
$
May
$
500,000 $
June
$
-
-
-
July
$
330,000 $
313,000 $
418,565
3
109
August
$
442,500 $
250,000 $
845,000
6
186
September
$
950,000 $
950,000 $
950,000
1
72
October
$
390,000 $
390,000 $
390,000
1
255
November
$
462,500 $
325,000 $
600,000
2
328
December
$
303,250 $
298,500 $
308,000
2
100
January
$
547,500 $
547,500 $
547,500
1
141
FEB. 2019
$
793,750 $
462,500 $ 1,125,000
2
158
$
365,000 $ 1,133,000
RESIDENTIAL SOLD
-
$
-
$
475,000 $ -
$
3
246
-
-
-
-
-
-
2
64
525,000 -
$600,000
$-
18 ch il y 20 a r Apr Ma une uly s t . J J gu ber e r er B M r b FE Au tem cto mb mbe uary 19 e p O e n 20 v c a . o Se J B N De FE
GOLF COURSE COMMUNITIES Whitehawk, Grizzly Ranch, Gold Mountain 12 MONTH MEDIAN PRICE TREND $1,000,000 $800,000 $600,000 $400,000 $200,000 $-
18 ch il y 20 a r Apr Ma une uly s t . J J gu ber e r er B M r b FE Au tem cto mb mbe uary 0 19 e p O e 2 n v c Se Ja EB. No De F
Dickson Realty is dedicated to helping you keep a pulse on the local market and real estate related information by providing the latest news, trends, and issues affecting the area’s real estate market.
Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700
NEWS YOU CAN USE
APRIL 2019 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES
Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn. BECKWOURTH
MEDIAN SALES PRICE
LOWEST SALE
RESIDENTIAL SOLD
HIGHEST SALE
AVG. DAYS ON MARKET
FEB. 2018
$
310,000 $
310,000 $
310,000
1
83
March
$
331,000 $
331,000 $
331,000
1
561
April
$
-
$
-
$
-
-
-
May
$
-
$
-
$
-
-
-
June
$
-
$
-
$
-
-
-
July
$
-
$
-
$
-
-
-
August
$
122,500 $
122,500
1
57
September
$ 1,450,000 $ 1,450,000 $ 1,450,000
1
489
October
$
500,000 $
500,000 $
500,000
1
132
November
$
70,000 $
70,000 $
70,000
1
281
December
$
-
-
January
$
205,000 $
205,000 $
FEB. 2019
$
-
-
CHILCOOT
122,500 $
$
$
MEDIAN SALES PRICE
$
205,000
$
-
LOWEST SALE
HIGHEST SALE
BECKWOURTH 12 MONTH MEDIAN PRICE TREND $2,000,000 $1,000,000 $-
18 ch il y 20 a r Apr Ma une uly s t er . r J gu b J B M r be ber FE ry be Au tem cto m 19 m ua e p O ov e n 20 e c a . S J e B N D FE
-
-
1
227
-
-
RESIDENTIAL SOLD
AVG. DAYS ON MARKET
FEB. 2018
$
-
$
-
$
-
-
-
March
$
-
$
-
$
-
-
-
April
$
-
$
-
$
-
-
-
May
$
-
$
-
$
-
-
-
June
$
-
$
-
$
-
-
-
July
$
265,000 $
265,000 $
1
42
August
$
-
$
-
$
-
-
-
September
$
-
$
-
$
-
-
-
October
$
-
$
-
$
-
-
-
November
$
-
$
-
$
-
-
-
December
$
161,000 $
1
448
January
$
-
FEB. 2019
$
275,000 $
CLIO
MEDIAN SALES PRICE
$
161,000 $ -
LOWEST SALE $
$
275,000 $
161,000 275,000
HIGHEST SALE
181
RESIDENTIAL SOLD
AVG. DAYS ON MARKET
CLIO 12 MONTH MEDIAN PRICE TREND
$
-
-
-
$
415,000 $
415,000 $
415,000
1
213
April
$
416,560 $
190,000 $
643,120
2
148
May
$
554,500 $
375,000 $
734,000
2
302
June
$
-
-
July
$
360,000 $
360,000 $
August
$
225,815 $
225,815 $
September
$
-
$
-
$
-
October
$
-
$
-
$
November
$
-
$
-
$
December
$
110,000 $
110,000 $
January
$
858,500 $
FEB. 2019
$
-
-
-
360,000
1
382
225,815
1
45
-
-
-
-
-
-
-
-
110,000
1
32
300,000 $ 1,417,000
2
149
-
-
-
$
-
1
8 h l 0 1 rc ri a y e . 2 Ma Ap M Jun July us t er e r r B g b b be ber ary FE 9 Au tem cto m 01 p O ove e m anu 2 c . Se J B N De FE
March
$
$
$400,000 $200,000 $-
FEB. 2018
$
-
265,000
CHILCOOT 12 MONTH MEDIAN PRICE TREND
$
-
-
$1,000,000 $500,000 $-
18 ch ril y 20 a r Ap Ma une uly us t er r . J g J B M b r be ber FE ry be Au tem cto m 19 m ua e p O ov e n 20 e c a . S J e B N D FE
Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700
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APRIL 2019 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES
Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn.
2019 Economic & Market Forecast
REImagine October 11, 2018 Leslie Appleton-Young SVP & Chief Economist
U.S. Economy Our Biggest Strength 4.2%
3.8%
2.2%
GDP 2018-Q2
Consumption 2018-Q2
Core CPI August 2018
3.7%
1.7%
Unemployment September 2018
Job Growth September 2018
U.S. Economic Outlook
California Economic Outlook
2013
2014
2015
2016
2017
2018p
2019f
2013
2014
2015
2016
2017
2018p
2019f
US GDP
1.7%
2.4%
2.6%
1.6%
2.3%
3.0%
2.4%
Nonfarm Job Growth
3.0%
2.2%
2.7%
2.3%
1.6%
2.0%
1.4%
Nonfarm Job Growth
1.7%
1.9%
2.1%
1.8%
1.4%
1.6%
1.3%
Unemployment
8.9%
7.5%
6.2%
5.5%
4.8%
4.3%
4.3%
Unemployment
7.4%
6.2%
5.3%
4.9%
4.4%
3.9%
3.7%
CA Population (Million)
38.4
38.7
39.1
39.4
39.6
39.9
40.2
CPI
1.5%
1.6%
0.1%
1.4%
2.0%
2.5%
2.4%
Population Growth
0.9%
1.0%
0.8%
0.6%
0.8%
0.7%
0.7%
Real Disposable Income, % Change
-1.4%
2.7%
3.4%
2.7%
2.1%
2.8%
2.6%
Real Disposable Income, % Change
-2.1%
5.6%
3.9%
1.6%
1.6%
2.4%
3.0%
30-Yr FRM
4.0%
4.2%
3.9%
3.6%
4.0%
4.7%
5.2%
SERIES: U.S. Economic Outlook SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
SERIES: CA Economic Outlook SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700
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APRIL 2019 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES
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II. California Housing Market
These are report excerpts only; for the full report please go to the website: www.car.org
The CA Housing Market Recovery 100% 90%
Equity Sales
Short Sale
80%
REO
Equity Sales (Aug 2018) = 98.4%
70% 60%
Equity Sales Vs. Distressed Sales
50% 40% 30%
REO Sales (Aug 2018) = 0.9%
20%
Short Sales (Aug 2018) = 0.3%
10%
Ju l- 1 0 Ja n11 Ju l- 1 1 Ja n12 Ju l- 1 2 Ja n13 Ju l- 1 3 Ja n14 Ju l- 1 4 Ja n15 Ju l- 1 5 Ja n16 Ju l- 1 6 Ja n17 Ju l- 1 7 Ja n18 Ju l- 1 8
Ja n-
09 Ju l- 0 9 Ja n10
0%
Note: Not including transactions in foreclosure. SERIES: Distressed Sales, Not Seasonally Adjusted SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700
NEWS YOU CAN USE
APRIL 2019 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES
Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn.
2019 Sales Forecast? 37% 29%
27%
4%
3% Down down down
Down slightly
Flat
Up slightly
Up a lot
SERIES: 2018 Director’s Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
What’s your outlook for the number of transactions in California next year? (n=443)
When Will Market Conditions Shift? C.A.R. Directors Pulsenomics West Pulsenomics United States
43%
30%
28%
27%
23%
20% 18%
14% 13% 6%5%
14%
8%8%7%
6%
6% 1%
Shifted already
Prior to year-end 2018
2019
2020
2021
2022
When do you expect California housing market conditions to shift decidedly in favor of home buyers? (C.A.R. n=438, Pulsenomics US n= 98, West n=91)
Entry Level Home Price
Never
SERIES: 2018 Director’s Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
Expected Rate for a 30-Year FRM
17%
16%
1 year:
10% 5%
At cycle peak:
$1 ,0 00 ,0 00
C.A.R. Directors: 6.00% Pulsenomics Experts: 5.25%
O ve r
00 1$1 ,0 00 ,0 00
00 0
$7 50 ,
00 1$7 50 ,
00 0
What is the price of an entry-level home in your market? (n=438)
$5 00 ,
00 1$5 00 , $3 00 ,
00 0$3 00 ,
00 0
C.A.R. Directors: 5.25% Pulsenomics Experts: 5.00%
$2 00 ,
r$ 20 0, 00 0
Sometime after 2022
2%
28%
25%
Un de
10%9% 4%
SERIES: 2018 Director’s Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
The prevailing rate for a 30-year fixed rate mortgage is 4.75. What do you expect it to be One year from now? (C.A.R. n=425, Pulsenomics n=100) At the time you expect the current business cycle will reach its peak?(C.A.R. n=374, Pulsenomics n=94)
SERIES: 2018 Director’s Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700
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APRIL 2019 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES
Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn.
Price Gains Slowing Across the State 14%
Condo
Single-Family Homes
YTY% Chg. in Price
12% 10% 8% Decelerating Growth
6% 4% 2%
Ja n1 Fe 7 b1 M 7 ar -1 A 7 p rM 17 ay -1 Ju 7 n17 Ju l- 1 7 A ug -1 Se 7 p -1 O 7 ct -1 N 7 o v17 D e c1 Ja 7 n1 Fe 8 b1 M 8 ar -1 A 8 p rM 18 ay -1 Ju 8 n18 Ju l- 1 8 A ug -1 8
0%
SERIES: Median Price of Existing Condo/Townhomes SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
Price Growth Also Slowing Down California, August 2018: $596,410, +0.8% MTM, +5.5% YTY $700,000
Peak: May-07 $594,530
Aug-17: $565,320
$600,000 $500,000
Aug-18: $596,410
Trough: Feb-09 $245,230 -59% from peak
$400,000 $300,000 $200,000 $100,000
-0 5 ay -0 6 Ja n07 Se p -0 M 7 ay -0 8 Ja n09 Se p -0 M 9 ay -1 0 Ja n11 Se p -1 M 1 ay -1 2 Ja n13 Se p -1 M 3 ay -1 4 Ja n15 Se p -1 M 5 ay -1 6 Ja n17 Se p -1 M 7 ay -1 8 M
Ja n-
Se p
05
$-
SERIES: Median Price of Existing Single Family Homes SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
California Housing Market Outlook 2013
2014
2015
2016
2017
2018p
2019f
SFH Resales (000s)
414.9
382.7
409.4
417.7
424.1
410.5
396.8
% Change
-5.9%
-7.8%
7.0%
2.0%
1.5%
-3.2%
-3.3%
Median Price ($000s)
$407.2
$446.9
$476.3
$502.3
$538.0
$575.8
$593.4
% Change
27.5%
9.8%
6.6%
5.4%
7.2%
7.0%
3.1%
Housing Affordability Index
36%
30%
31%
31%
29%
28%
25%
30-Yr FRM
4.0%
4.2%
3.9%
3.6%
4.0%
4.7%
5.2%
SERIES: CA Housing Market Outlook SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700
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APRIL 2019 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES
Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn.
Guild Mortgage Corner
If you have any questions regarding loan limits, refinancing or purchasing a home, please feel free to reach out to The Rice Team. 11050 Pioneer Trail Suite 201 Truckee, CA 96161 Phone: (530) 582-9991 Fax: (530) 582-9995. Web:wwwTheRiceTeam.com
Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700
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APRIL 2019 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES
Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn.
File-with-Confidence Tax Guide Tax season is upon us once again, and to make it even more interesting this year, the tax code has changed — along with the rules about tax deductions for homeowners. The biggest change? Many homeowners who used to write off their property taxes and the interest they pay their mortgage will no longer be able to. Stay calm. This doesn’t automatically mean your taxes are going up. Here’s a roundup of the rules that will affect homeowners — and how big of a change to expect. Standard Deduction: Big Change The standard deduction, that amount everyone gets, whether they have actual deductions or not, nearly doubled under the new law. It’s now $24,000 for married, joint-filing couples (up from $13,000). It’s $18,000 for heads of household (up from $9,550). And $12,000 for singles (up from $6,500). Many more people will now get a better deal taking the standard than they would with their itemizable write-offs. For perspective, the number of homeowners who will be able to deduct their mortgage interest under the new rules will fall from around 32 million to about 14 million, the federal government says. That’s about a 56% drop. “This doesn’t necessarily mean they’ll pay more taxes,” says Evan Liddiard, a CPA and director of federal tax policy for the National Association of REALTORS® in Washington, D.C. “It just means that they’ll no longer get a tax incentive for buying or owning a home.”
Personal Exemption Repealed One caveat to the increase in the standard deduction for homeowners and nonhomeowners is that the personal exemption was repealed. No longer can you exempt from your income $4,150 for each member of your household. And that might temper the benefit of a higher standard deduction, depending on your particular situation. For example, a single person might still come out ahead. Her $5,500 increase in the standard deduction is more than the $4,150 lost by the personal exemption repeal. But consider a family of four with two kids over 16 in the 22% tax bracket. They no longer have personal exemptions totaling $16,600. Although the increase in the standard deduction is worth $2,420 (11,000 x 22%), the loss of the exemptions would cost them an extra $3,652 (16,600 x 22%). So they lose $1,232 (3,652 – 2,420). But say their two kids are under 16, giving them a child credit worth $2,000. That offsets the loss resulting in a $758 tax cut. The takeaway: Your household composition will probably affect your tax status. Mortgage Interest Deduction: Incremental Change The new law caps the mortgage interest you can write off at loan amounts of no more than $750,000. However, if your loan was in place by Dec. 14, 2017, the loan is grandfathered, and the old $1 million maximum amount still applies. Since most people don’t have a mortgage larger than $750,000, they won’t be affected by the cap. But if you live in a pricey place (like San Francisco, where the median housing price is well over a million bucks), or you just have a seriously expensive house, the new federal tax laws mean you’re not going to be able to write off interest paid on debt over the $750,000 cap. State and Local Tax Deduction: Degree of Change Varies by Location The state and local taxes you pay — like income, sales, and property taxes — are still itemizable write-offs. That’s called the SALT
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Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn. deduction in CPA lingo. But, the tax changes for 2019 (that’s tax year 2018) mean you can’t deduct more than $10,000 for all your state and local taxes combined, whether you’re single or married. (It’s $5,000 per person if you’re married but filing separately.) The SALT cap is bad news for people in areas with high taxes. The majority of homeowners in around 20 states have been writing off more than $10,000 in SALT each year, so they’ll lose some of this deduction. “This is going to hurt people in high-tax areas like New York and California,” says Lisa Greene-Lewis, CPA and expert for TurboTax in California. New Yorkers, for example, were taking SALT deductions around $22,000 a household. Rental Property Deduction: No Change The news is happier if you’re a landlord. There continue to be no limits on the amount of mortgage debt interest or state and local taxes you can write off on rental property. And you can keep writing off operating expenses like depreciation, insurance, lawn care, and utilities on Schedule E. Home Equity Loans: Big Change You can continue to write off the interest on a home equity or second mortgage loan (if you itemize), but only if you used the proceeds to substantially better your home and only if the total, combined with your first mortgage, doesn’t go over the $750,000 cap ($1 million for loans in existence on Dec. 15, 2017). If you used the equity loan to pay medical expenses, take a cruise, or anything other than home improvements, that interest is no longer tax deductible. Here’s a big FYI: The new rules don’t grandfather in old home equity loans if the proceeds were used for something other than substantial home improvement. If you took one out five years ago to, say, pay your child’s college tuition, you have to stop writing off that interest. 4 Tips for Navigating the New Tax Law • Single people may get more tax benefits from buying a house, Liddiard says. “They can often reach [and potentially
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exceed] the standard deduction more quickly.” Student loan debt is deductible, up to $2,500 if you’re repaying, whether you itemize or not. Charitable deductions and some medical expenses remain itemizable. If you’re generous or have had a big year for medical bills, these, added to your mortgage interest, may be enough to bump you over the standard deduction hump and into the write-off zone. If your mortgage is over the $750,000 cap, pay it down faster so you don’t eat the interest. You can add a little to the principal each month, or make a 13th payment each year.
Tax Deductions for Landlords Many rental home expenses are tax deductible. Save receipts and any other documentation, and take the deductions on Schedule E. Figure you’ll spend four hours a week, on average, maintaining a rental property, including recordkeeping. In general, you can claim the deductions for the year in which you pay for these common rental property expenses: •Advertising •Cleaning and maintenance •Commissions paid to rental agents •Homeowner association/condo dues •Insurance premiums •Legal fees •Mortgage interest •Taxes, including property taxes •Utilities Less obvious expenses that also may be deductible include fees charged by an accountant to prepare your Schedule E. And don’t forget that a rental home can even be a houseboat or trailer, as long as there are sleeping, cooking, and bathroom facilities. Moreover, the location of the rental home doesn’t matter. It could even be outside the United States. Travel Expense Deductions You can deduct expenses for local travel to a rental home for activities such as showing it,
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Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn. collecting rent, or doing maintenance. If you use your own car, you can claim the standard mileage rate, plus tolls and parking. For 2018, it’s 54.5 cents per mile. Traveling outside your local area to a rental home is another matter. You can write off the expenses if the purpose of the trip is to collect rent or, in the words of the IRS, “manage, conserve, or maintain” the property. If you mix business with pleasure during the trip, you can only deduct the portion of expenses that directly relates to rental activities. Repairs and Improvement Deduction Another area that requires rental homeowners to tread carefully is repairs vs. improvements. The tax code lets you immediately write off repairs — any fixes that keep your property in working condition — as you would other expenses. The costs of improvements that add value to a rental property or extend its life must instead be depreciated over several years. (More on depreciation below.) Think of it this way: Simply replacing a broken window pane counts as a repair, but replacing all of the windows in your rental home counts as an improvement. Patching a roof leak is a repair; re-shingling the entire roof is an improvement. You get the picture. Depreciation Depreciation refers to the value of property that’s lost over time due to wear, tear, and obsolescence. In the case of improvements to a rental home, you can deduct a portion of that lost value every year over a set number of years. You can begin depreciating the value of the entire rental property as soon as the rental home is ready for tenants and you hold it out for rent, even if you don’t yet have any tenants. In general, you depreciate the value of the home itself (but not the portion of the cost attributable to land) over 27.5 years. You’ll have to stop depreciating once you recover your cost or you stop renting out the home, whichever comes first. Depreciation is a valuable tax benefit, but the calculations can be tricky. Read IRS Publication 946, “How to Depreciate Property,” for additional information, and use Form
4562 come tax time. You may need to consult a tax adviser. Profits and Losses on Rental Homes The rent you collect from your tenant every month counts as income. You offset that income and lower your tax bill by deducting your rental home expenses including depreciation. If, for example, you received $9,600 in rent during the year and had expenses of $4,200, then your taxable rental income would be $5,400 ($9,600 in rent minus $4,200 in expenses). You can even write off a net loss on a rental home as long as you meet income requirements, own at least 10% of the property, and actively participate in the rental of the home. Active participation in a rental is as simple as placing ads, setting rents, or screening prospective tenants. If your modified adjusted gross income (same as adjusted gross income for most persons) is $100,000 or less, you can deduct up to $25,000 in rental losses. The deduction for losses gradually phases out between income of $100,000 and $150,000. You may be able to carry forward excess losses to future years. Let’s say that for the year rental receipts are $12,000 and expenses total $15,000, resulting in a $3,000 loss. If your modified adjusted gross income is below $100,000, you can deduct the full $3,000 loss. If you’re in a 22% tax bracket , a $3,000 loss reduces your tax bill by $660, plus any applicable state income taxes. Tax Rules for Vacation Homes If you have a vacation home that’s mostly reserved for personal use but rented out for up to 14 days a year, you won’t have to pay taxes on the rental income. Some expenses are deductible, though the personal use of the home limits deductions. The tax picture gets more complicated when, in the same year, you make personal use of your vacation home and rent it out for more than 14 days.
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289 Commercial Street | Portola, CA 96122 | 530.832.1700
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APRIL 2019 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES
Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn.
That was then, this is now!
Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700
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APRIL 2019 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES
Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn. This season’s snow fall makes Spring Skiing and Riding ideal. We hope you have the opportunity to enjoy the slopes in your favorite way. Most resort closings have all been extended into May, so there is plenty of time to get out there and make it good day!
Resort
Acres
Lifts
Trails Beginner
Trails Intermediate
Trails Advanced
Trails Expert
Bear Valley 9:00 am – 4:00 pm
1680
10
6
23
26
2
Boreal 9:00 am - 9:00 pm
380
6
9
10
15
0
Heavenly Valley 8:30 am – 4:00 pm
4800
28
10
52
28
7
Homewood 8:00 am – 4:00 pm
1260
8
10
27
20
10
Kirkwood 9:00 am – 4:00 pm
2300
14
7
29
37
11
Mt. Rose 9:00 am – 4:00 pm
1200
8
12
18
24
6
Northstar California 9:00 am – 4:00 pm
3170
20
11
54
33
0
Soda Springs 9:00 am – 4:00 pm
200
4
4
3
6
0
Sugar Bowl 9:00 am – 4:00 pm
1650
12
17
45
38
0
Squaw Alpine 9:00 am – 4:00 pm
3600 2400
18 10
43 25
77 40
51 35
0 0
Tahoe Donner 9:00 am – 4:00 pm
120
2
7
10
0
0
Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700
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APRIL 2019 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES
Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn.
APRIL 2019 SUN
MON 31
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April Fools Day 07
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06 Indian Taco Feed, Grange Hall Vinton 13 Annual Taste of Plumas
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20 Plumas Audubon Society Tour Roberti Ranch
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27 Loyalton Spring Craft Show
28 Audubon Society Bird Watching Event
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The Romans gave this month the Latin name Aprilis but the derivation of this name is uncertain. The traditional etymology is from the verb aperire, "to open", in allusion to its being the season when trees and flowers begin to "open", which is supported by comparison with the modern Greek use of anixi (opening) for spring. Since some of the Roman months were named in honor of divinities, and as April was sacred to the goddess Venue, it has been suggested that Aprilis was originally her month Aphrilis, from her equivalent Greek goddess name Aphrodite.
Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700
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APRIL 2019 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES
Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn. Date and Event April 6th ANNUAL INDIAN TACO FEED FUNDRAISER
Where Held Sierra Valley Grange Hall Vinton, CA
Time 5:30 pm 7:30 pm
Contact Info. Betty Dellera (530) 993-4621
Sierra Valley Volunteer Fire Department Building
April 13th
Plumas Sierra County Fairgrounds
5:30 pm 8:30 pm
13th ANNUAL TASTE OF PLUMAS Sponsored by PLUMAS ARTS This event is one of the primary fundraisers for Plumas Arts, the region's most active cultural programming organization. Plumas Arts brings art programs to the county schools, great events and performances to local audiences.
April 27th
Please buy your tickets by April 10th This deadline gives the restaurants enough lead-time to prepare and, hopefully, it will also give you the incentive to purchase in advance to help everyone make those plans. Since the event has sold out for the last several years, it is not anticipated that there will be any tickets after that date. $35/General admission $30/Member discount
Loyalton Senior Center
10:00 am 2:00 pm
PLUMAS AUDUBON SOCIETY TOURS AND BIRD WATCHING FOR THE ROBERTI RANCH TOUR ONLY PLEASE CALL JILL SLOCUM
Rare offering to tour AT (530) 414-6438. Roberti Ranch; buses IT WILL MEET AT 9:00 A.M. AT and food provided. A/70/A23
ANNUAL FUNDRAISER BENEFIT FOR SIERRA VALLEY VOLUNTEER FIRE DEPARTMENT. One of the communities most anticipated annual fundraising events. All proceeds go to the SVVFD. Adults $10.00; Children $5.00; little ones under 5 yrs. Free FOOD, RAFFLE AND AUCTION Fun for the whole family.
Make sure you get your seat at the table for the 13th annual Taste of Plumas-- one of the most anticipated and generally soldout events of the season. The taste allows you to tour of most of the best culinary establishments in Plumas County all in one location at one festive community gathering. Meet chefs and owners who will graciously entice you to seek out more extensive dining experiences with thoughtfully prepared, lovingly presented delectable delights. Attendees are also welcome to vote for their favorites as part of the highly coveted People's Choice Awards.
( 530) 993-4770
Always a fun event with lots of home made goodies to see that are made by talented local seniors. The proceeds support the Senior Center.
All trips are free and open to the public unless stated otherwise. Participants should bring food and water and dress appropriately. Please check the events calendar for trip changes at: www.plumasaudubon.org/calendar
April 20, Saturday - Roberti Ranch Tour. A guided field trip to the beautiful Roberti Ranch in Sierra Valley. Space will be limited and advance reservations will be required. More details to come. Absolutely NO DOGS. April 28, Sunday - Four Directions of the Compass Birding. Led by Bob Battagin. Meet at 8:00 AM junction of Quincy Junction Road and Chandler Roads with open fields, barnyards, oak trees, bird feeders and a farm pond. Plan on seeing woodpeckers, finches, sparrows, orioles, and hummingbirds. All four directions at this intersection offer excellent birding opportunities.
SPRING CRAFTS SHOW April 20th April 27th
Details
FOUR DIRECTIONS EVENT:
Call Suzanne at 530-375-0199 for questions.
Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700