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JANUARY 2021 MARKET NEWSLETTER Truckee, Golf Course Communities, Tahoe Donner, Northstar, Donner Summit, Alpine/Squaw, North & West Shore Lake Tahoe, CA.
Schaffer Mill Rd. Truckee Photo by Will Stewart on Unsplash
Contents Truckee Office & HAPPY NEW YEAR! Sales Statistic Reports
Pg. 2 3-6
Synergy Home Mortgage Corner
7
And The People Stayed Home Poem
8
Dickson COVID 19 Statement
9
Selling/Buying during Pandemic
10-11
Home Workspaces; Value & Tax Deductions
12-13
Snow Day Driving Survival Guide
14-15
January Calendar
16
Winter Trees Truckee Photo by Nicolas Cool on Unsplash
The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
NEWS YOU CAN USE
JANUARY 2021 MARKET NEWSLETTER Truckee, Golf Course Communities, Tahoe Donner, Northstar, Donner Summit, Alpine/Squaw, North & West Shore Lake Tahoe, CA.
The Dickson Realty Truckee 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 Info: Phone: 530-587-7444 Fax:530-587-8064 Email: truckeeinfo@dicksonrealty.com Web: www.Dicksonrealty.com
Hope smiles from the threshold of the year to come, Whispering, “It will be happier” ~Alfred Lord Tennyson~
“I can no other answer make but thanks and thanks.” ~William Shakespeare~
M OIS rpass R E EH st, o su TRU urge t ever co t t the at wha serve o n Is hers e to g r t u o All ut the ers at st B oth the co r teve a h W
The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
NEWS YOU CAN USE
JANUARY 2021 MARKET NEWSLETTER Truckee, Golf Course Communities, Tahoe Donner, Northstar, Donner Summit, Alpine/Squaw, North & West Shore Lake Tahoe, CA.
The report provided shows the monthly statistics for November 2019 thru November 2020 for Median Sales Price, Lowest/highest sales, Number of units sold and the Average Days on Market The sales shown are for Single Family Residential Condominiums and Townhouses in each of the market areas. (Time share and/or shared ownership are not included in the statistics presented.) The data source is the Tahoe Sierra Board of REALTORS® with data pulled on December 12, 2020
TRUCKEE INCLUSIVE
MEDIAN SALES PRICE
LOWEST SALE
HIGHEST SALE
RESIDENTIAL SOLD
AVG. DAYS ON MARKET
NOVEMBER 2019
$
700,000 $
200,000 $
6,050,000
81
61
December
$
632,500 $
800,000 $
8,750,000
73
78
January
$
650,000 $
285,000 $
4,975,000
55
79
February
$
646,250 $
195,000 $
4,050,000
58
78
March
$
689,000 $
417,000 $
9,500,000
43
79
April
$
639,000 $
145,000 $
5,250,000
46
54
May
$
690,000 $
195,000 $
5,200,000
45
55
June
$
695,000 $
125,000 $
7,800,000
125
58
July
$
815,000 $
137,500 $
7,250,000
181
54
August
$
860,000 $
150,000 $ 11,000,000
176
51
September
$
850,000 $
255,000 $
7,495,000
172
31
October
$
827,500 $
145,000 $ 10,200,000
162
39
NOVEMBER 2020
$
855,000 $
180,000 $
142
18
9,150,000
Truckee Inclusive shows total market activity which includes sub-markets of Tahoe Donner, Northstar, the Golf Course Communities (Old Greenwood, Gray’s Landing, Lahontan, Martis Camp & Schaffer’s Mill) and Donner Summit. Specific details of those sub-markets are shown separately on the next pages
The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
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JANUARY 2021 MARKET NEWSLETTER Truckee, Golf Course Communities, Tahoe Donner, Northstar, Donner Summit, Alpine/Squaw, North & West Shore Lake Tahoe, CA. TAHOE DONNER
MEDIAN SALES PRICE
LOWEST SALE
HIGHEST SALE
RESIDENTIAL SOLD
AVG. DAYS ON MARKET
NOVEMBER 2019
$
672,250 $
275,000 $
1,845,000
36
41
December
$
649,900 $
117,500 $
1,340,000
35
48
January
$
604,500 $
285,000 $
1,560,000
20
53
February
$
612,000 $
290,000 $
1,190,000
26
65
March
$
657,500 $
420,000 $
850,000
8
38
April
$
657,500 $
183,000 $
1,415,000
12
33
May
$
658,000 $
415,000 $
1,590,000
10
41
June
$
716,000 $
142,300 $
1,450,000
44
42
July
$
762,500 $
210,000 $
2,950,000
72
39
August
$
746,500 $
229,900 $
1,995,000
44
29
September
$
825,000 $
365,000 $
2,600,000
65
9
October
$
825,000 $
145,000 $
1,675,000
50
18
NOVEMBER 2020
$
830,000 $
265,000 $
1,475,000
44
13
RESIDENTIAL SOLD
AVG. DAYS ON MARKET
NORTHSTAR
MEDIAN SALES PRICE
LOWEST SALE
HIGHEST SALE
NOVEMBER 2019
$
470,000 $
405,000 $
1,655,000
5
133
December
$
424,375 $
250,000 $
1,504,900
8
125
January
$
1,500,000 $
375,000 $
1,965,000
7
136
February
$
1,025,000 $
415,000 $
1,195,000
7
99
March
$
503,500 $
436,000 $
1,770,000
4
23
April
$
900,000 $
395,000 $
2,600,000
6
82
May
$
693,000 $
255,000 $
1,175,000
3
34
June
$
1,392,000 $
380,000 $
3,600,000
8
192
July
$
940,000 $
429,000 $
3,200,000
17
69
August
$
887,750 $
250,000 $
4,120,000
30
72
September
$
1,202,770 $
255,000 $
3,800,000
24
60
October
$
782,250 $
200,000 $
5,200,000
26
97
NOVEMBER 2020
$
838,000 $
180,000 $
2,830,000
23
27
RESIDENTIAL SOLD
AVG. DAYS ON MARKET
GOLF COMMUNITIES
MEDIAN SALES PRICE
LOWEST SALE
HIGHEST SALE
NOVEMBER 2019
$
2,400,000 $
1,080,000 $
6,050,000
7
84
December
$
2,422,500 $
1,165,000 $
8,750,000
8
225
January
$
2,200,000 $
1,315,000 $
4,975,000
7
171
February
$
1,830,000 $
1,325,000 $
4,050,000
8
124
March
$
3,803,525 $
1,225,000 $
9,500,000
8
151
April
$
2,624,500 $
1,350,000 $
5,250,000
4
61
May
$
2,250,000 $
1,000,000 $
5,200,000
8
81
June
$
1,918,750 $
1,215,000 $
7,800,000
18
101
July
$
2,775,000 $
840,125 $
7,250,000
26
117
August
$
2,100,000 $
1,145,000 $ 11,000,000
37
82
September
$
2,995,000 $
865,000 $
7,495,000
27
88
October
$
2,400,000 $
930,000 $
1,020,000
23
63
NOVEMBER 2020
$
3,000,000 $
1,325,000 $
9,150,000
17
24
DONNER SUMMIT
MEDIAN SALES PRICE
RESIDENTIAL SOLD
AVG. DAYS ON MARKET
NOVEMBER 2019
$
1,137,500 $
200,000 $
3,250,000
4
53
December
$
707,000 $
80,000 $
1,825,000
7
40
January
$
617,500 $
600,000 $
635,000
2
36
February
$
211,000 $
195,000 $
653,500
5
44
March
$
700,000 $
417,000 $
1,750,000
7
104
April
$
1,104,000 $
145,000 $
2,750,000
4
23
May
$
515,000 $
195,000 $
1,825,000
5
34
June
$
473,000 $
265,000 $
2,375,000
16
51
July
$
542,550 $
146,000 $
200,000
16
65
August
$
445,000 $
160,000 $
1,700,000
13
60
September
$
580,000 $
275,000 $
3,480,000
13
13
October
$
785,000 $
211,000 $
2,895,000
9
18
NOVEMBER 2020
$
547,500 $
290,000 $
1,375,000
12
25
LOWEST SALE
HIGHEST SALE
The Dickson Truckee Team
11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
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JANUARY 2021 MARKET NEWSLETTER Truckee, Golf Course Communities, Tahoe Donner, Northstar, Donner Summit, Alpine/Squaw, North & West Shore Lake Tahoe, CA.
ALPINE/SQUAW
MEDIAN SALES PRICE
LOWEST SALE
HIGHEST SALE
RESIDENTIAL SOLD
AVG. DAYS ON MARKET
NOVEMBER 2019
$
727,500 $
291,250 $
1,612,500
12
85
December
$
490,000 $
310,000 $
3,000,000
7
55
January
$
701,500 $
325,000 $
1,955,000
11
89
February
$
604,000 $
305,000 $
2,115,000
5
311
March
$
847,500 $
315,000 $
2,195,000
10
158
April
$
925,000 $
312,500 $
979,000
5
130
May
$
716,000 $
315,000 $
2,250,000
7
128
June
$
750,000 $
750,000 $
750,000
1
61
July
$
1,125,000 $
532,500 $
1,775,000
13
195
August
$
1,155,000 $
390,000 $
2,390,000
11
29
September
$
680,250 $
400,000 $
2,550,000
24
64
October
$
657,232 $
1 $
2,050,000
24
226
NOVEMBER 2020
$
729,000 $
374,000 $
2,998,000
21
89
RESIDENTIAL SOLD
AVG. DAYS ON MARKET
NORTH LAKE TAHOE, CA.
MEDIAN SALES PRICE
LOWEST SALE
HIGHEST SALE
NOVEMBER 2019
$
675,000 $
258,110 $
2,600,000
25
106
December
$
580,000 $
125,000 $
1,185,000
15
62
January
$
640,000 $
127,000 $
7,619,000
17
75
February
$
438,500 $
125,000 $
1,650,000
14
121
March
$
562,000 $
283,500 $
4,375,000
14
58
April
$
732,500 $
330,000 $
1,550,000
8
26
May
$
545,000 $
325,000 $
735,000
7
44
June
$
780,000 $
123,000 $
200,000
29
49
July
$
680,000 $
140,000 $
7,900,000
58
24
August
$
760,000 $
191,500 $
9,500,000
51
43
September
$
867,500 $
225,000 $
6,495,000
54
38
October
$
801,000 $
275,000 $
2,750,000
54
20
NOVEMBER 2020
$
859,077 $
311,000 $
2,750,000
34
27
WEST SHORE LAKE TAHOE, CA
MEDIAN SALES PRICE
RESIDENTIAL SOLD
AVG. DAYS ON MARKET
NOVEMBER 2019
$
737,000 $
330,000 $
1,950,000
20
66
December
$
830,000 $
362,000 $
3,435,000
11
136
January
$
1,000,000 $
435,000 $
7,150,000
6
120
February
$
655,000 $
400,000 $
1,450,000
6
97
March
$
535,000 $
285,000 $
2,385,000
12
58
April
$
451,500 $
320,000 $
765,000
3
53
May
$
800,000 $
275,000 $
1,680,000
5
159
June
$
667,000 $
360,000 $
4,075,000
30
83
July
$
829,500 $
290,000 $
8,750,000
42
70
August
$
750,000 $
322,000 $
4,525,000
30
60
September
$
749,000 $
312,500 $
4,886,000
40
30
October
$
782,500 $
340,000 $
4,000,804
32
20
NOVEMBER 2020
$
1,050,000 $
289,000 $
7,400,000
19
32
LOWEST SALE
HIGHEST SALE
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.
The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
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JANUARY 2021 MARKET NEWSLETTER Truckee, Golf Course Communities, Tahoe Donner, Northstar, Donner Summit, Alpine/Squaw, North & West Shore Lake Tahoe, CA.
The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
NEWS YOU CAN USE
JANUARY 2021 MARKET NEWSLETTER Truckee, Golf Course Communities, Tahoe Donner, Northstar, Donner Summit, Alpine/Squaw, North & West Shore Lake Tahoe, CA.
The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
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JANUARY 2021 MARKET NEWSLETTER Truckee, Golf Course Communities, Tahoe Donner, Northstar, Donner Summit, Alpine/Squaw, North & West Shore Lake Tahoe, CA.
And the people stayed home. And read books, and listened, and rested, and exercised, and made art, and played games, and learned new ways of being, and were still. And listened more deeply. Some meditated, some prayed, some danced. Some met their shadows. And the people began to think differently. And the people healed. And, in the absence of people living in ignorant, dangerous, mindless, and heartless ways, the earth began to heal. And when the danger passed, and the people joined together again, they grieved their losses, and made new choices, and dreamed new images, and created new ways to live and heal the earth fully, as they had been healed. ~Written in response to the Pandemic and Published March 2020 – by Kitty O’Meara, a former teacher and chaplain from Wisconsin.~
The Dickson Truckee Team
11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
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JANUARY 2021 MARKET NEWSLETTER Truckee, Golf Course Communities, Tahoe Donner, Northstar, Donner Summit, Alpine/Squaw, North & West Shore Lake Tahoe, CA.
Everyone’s health and well-being matters to us These are challenging and unprecedented times, but even during uncertainty, people will continue to buy and sell real estate for many reasons. We want to assure you of our continued efforts to meet all COVID 19 compliance directives and will continue to do so as long as is necessary. The health and well-being of our clients, agents, employees and community is of the utmost importance to us. We take the continued coronavirus outbreak very seriously and we continue to take steps to ensure that we, as an organization, are as prepared, organized and proactive as possible. Here are some of the things we have initiated and adhere to with the goal to keep our team, our clients and our community safe. We will continue to enhance these actions as we learn more. ●
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We are verbally screening every buyer and renter who wants to see a home. This means asking every buyer and renter questions about where they have been, if they have been exposed to anyone who has been exposed to the coronavirus, and if they have anyone who is at high risk at home or in their care. We are asking our sellers these same questions. We respect MASKS AND MANDATORY and SOCIAL DISTANCING to be practiced in every setting. We are utilizing the latest technology to make searching and showing property easy and safe. While we love to see our clients and customers in person, in today’s environment, we understand that buyers and sellers may prefer to do their transactions and showings remotely, which is why we want to highlight a few of the alternatives we offer: - Virtual Showings - Online 3D Virtual Tours - Detailed Property Video Tours - Online Document Signing - Online Transaction Management - Closings via Conferencing We will be posting signage at our listing clients’ homes asking all parties to respect each space they view. This will include instructions asking guests to refrain from touching countertops, door handles, appliances, lighting and using restrooms. We are recommending our agents and clients do not hold Open Houses at this time. We are recommending our sellers wipe down all hard surfaces and handles after every showing. We are always available by phone or email. Contact information for all of our REALTORS is available on our website, dicksonrealty.com. We have coordinated with local title companies and entities and are continuing as usual with modified procedures including e-signing, mobile notaries and limiting those meetings that need to meet in person. If you choose not to buy or sell immediately, we will be here when it is the right time for you. As REALTORS, we are also concerned about our families, especially those who are caregivers for elderly family members. We have modified our normal business operations as follows: - Our REALTORS are mobile and are working from home most of the day. - We are operating our offices with a small staff who are social distancing per public health guidelines. - We are following the CDC guidelines for sanitizing our equipment and our facility and encouraging frequent hand washing and sanitizing. - We are holding all meetings and training sessions using virtual meeting software. - We are practicing social distancing in all our offices. We know this is going to be a hard time for our local small business owners. We will post ways we can all support each other on our blog and social media. Please feel free to share any ideas or needs you might see in our community. We are blessed to live in a community where people are supportive and caring of each other.
The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
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JANUARY 2021 MARKET NEWSLETTER Truckee, Golf Course Communities, Tahoe Donner, Northstar, Donner Summit, Alpine/Squaw, North & West Shore Lake Tahoe, CA.
Home Buying and Selling During the Pandemic: What You Need to Know
Technology and good-old-fashioned creativity are helping agents, buyers, and sellers abide by COVID19 health and safety practices while getting deals done. Some buyers are touring houses virtually. Others visit in person while remaining at least six feet from their agent. Sellers are hosting open houses on Facebook Live. Appraisers are doing drive-by valuations. Buyers are watching inspections via video call. Masked and gloved notaries are getting signatures on doorsteps. Here’s what home buying and selling during the pandemic looks like. Showings Go Virtual The rules around in-person showings vary by city, county, and state. Some allow them and some ban them. Check with your state, county, and local government to get the latest on business closures and shut-down rules. Agents have conducted home tours via FaceTime and other similar tools for years. But these platforms have proven invaluable for home buying and selling during the pandemic. Real estate sites report a surge in the creation of 3D home tours. In places where in-person showings are allowed, agents wipe down door handles, spray the lockbox with disinfectant, and open up the house, closets, everything for a client. Tip: Leave all the lights on so no one touches switches, don’t touch cabinets or doors during showings. Safe-Showing Guidelines The NATIONAL ASSOCIATION OF REALTORS®, which produces House Logic, recommends only one buyer enter a home at a time, with 6 feet between each guest. NAR also recommends agents have potential buyers wash their hands, or use hand sanitizer when they come in the door. They should also remove their shoes. No children should be present at showings, either.
Desktop, Drive-By Appraisals Appraisers are essential workers in many areas, so home valuations are continuing. But often remotely. New, temporary rules from the Federal Housing Finance Authority allow drive-by and desktop appraisals for loans backed by the federal government. In a desktop appraisal, the appraiser comes up with a home estimate based on tax records and multiple listing service information, without an in-person visit. For a drive-by, the appraiser only looks at the home's exterior, in combination with a desktop appraisal. The Appraisal Foundation has put out guidelines for handling appraisals during the pandemic. On the other hand, some private lenders still require in-person appraisals, which are allowed even in areas with shutdown orders. Private lenders hold about 35% of first-lien mortgages, according to the Urban Institute When appraisers come to your home, they should adhere to Centers for Disease Control guidelines, including wearing gloves and a face mask, keeping at least 6 feet apart from anyone in the home, and asking if the homeowners have been sick or traveled recently to a COVID-19 hotspot. Inspections Via Live Video Inspectors are now often working alone, no buyers in tow, and using hand sanitizer and alcohol wipes. The National Association of Certified Home Inspectors advises inspectors to videotape their inspection so clients can watch it at home later, or to use FaceTime or other live video chat apps to take their clients along on the inspection, virtually. They can also call clients with their findings after they’re done. The American Society of Home Inspectors has also issued guidelines for inspectors so they keep themselves and the homeowners safe while providing an accurate assessment of a home's condition.
The Dickson Truckee Team
11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
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JANUARY 2021 MARKET NEWSLETTER Truckee, Golf Course Communities, Tahoe Donner, Northstar, Donner Summit, Alpine/Squaw, North & West Shore Lake Tahoe, CA. Mortgage Rates and Locks With mortgage rates fluctuating quickly and closing times taking longer than usual, some lenders are extending mortgage rate lock periods. You can grab a good rate and hang on to it even if your lender takes longer than usual to process your loan. But the protocol depends on the lender and the loan. Some lenders are offering this for all loans; others for refinances. Check with your lender about its policy.
Employment Verification An important step in getting a mortgage is proving the borrower has a job. In pre-coronavirus days, lenders called the borrower’s employer for a verbal verification. The Federal Housing Finance Authority, which oversees Fannie Mae, Freddie Mac, and federal home loan banks, has relaxed the rules for loans backed by the federal government because so many businesses are closed. Lenders for federally backed loans now accept an email from an employer, a recent year-to-date paystub, or a bank statement showing a recent payroll deposit as proof of employment.
And, of course, when the buyers take possession, they should disinfect.
Remote Notarization Depends On Where You Live About one-half of states have permanent remote online notarization (RON) policies. These allow a notary and signer in different locations to sign electronic document, usually by use of video apps like Zoom or FaceTime. Notaries will watch you sign either a paper document or do an electronic signature on an e-doc, via camera. Some states have rolled out temporary rules allowing RON. The number of states allowing remote notarization could grow as federal and state pandemic legislation expands. Closings Get Creative Traditional closings, where everybody gathered around a big table to sign the final papers, are no longer possible. Title companies and banks are getting super creative in dealing with the limitations. Then there are drive-by closings, where the entire transaction takes place in cars. Masked and gloved notaries meet buyers in parking lots and pass documents through car windows. Tip: Find out if your county recording office can complete the deal online. So, Should You Buy or Sell?
Walk-throughs Home buying and selling during the pandemic means real estate agents can conduct the final walk-through via video with their clients. Or they can just open the home and have buyers walk through on their own.
The real estate industry is creatively and safely responding to the situation, and mortgage rates remain low. Your agent is a great source of information about home buying and selling during the pandemic to help you feel comfortable. But, ultimately, it's a question only you can answer!
The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
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JANUARY 2021 MARKET NEWSLETTER Truckee, Golf Course Communities, Tahoe Donner, Northstar, Donner Summit, Alpine/Squaw, North & West Shore Lake Tahoe, CA.
Do dedicated at-home workspaces increase property value?
There's little doubt 2020 has ushered in some major shifts throughout the world. The rise in working from home (WFH) has been one such big change that has impacted countless people. With thousands of people now working from the comfort of their own home, lots of homeowners are looking for ways to create a good working environment. In many instances, people are redesigning their homes to make space for desks, larger IT networks and more ergonomic or conducive work ecosystems. Those with more resources have gone so far as to remodel their houses to incorporate more efficient workspaces. In some cases, developers and builders are also now designing new homes with remote work in mind. But the question for many homeowners is: Does this trend make homes more valuable or attractive to buyers? The answer, it turns out, is yes. A realtor.comÂŽ survey from Sept. 2020, found that houses listed with a home office average a 3.4% higher price premium and sit on the market for nine days less than those listings lacking one. Further, 63% of respondents said they plan on buying a new home that can accommodate a WFH option. Will the WFH trend last? One factor to keep in mind involves how long the work-from-home trend will last. If next year the vast majority of employees went back to work in an office, the appeal might not be the same. However, the rise in the remote workforce was already on the rise before the pandemic shifted an even larger percentage of employees into a workfrom-home situation.
Stanford Institute for Economic Policy Research reported that 42% of the U.S. labor force now works full-time from home, with only 26% of employees working on-premise at a business, mostly essential service workers. This isn't a recent trend either. The remote work in the U.S. has risen by 173% between 2005 and 2018. The realtor.comÂŽ survey found that 52% of respondents prefer working remotely, with this preference holding across demographic characteristics. With many business owners noticing a productivity increase amongst workers, and a decrease in travel costs, the trend seems like it might remain a popular option even in a post-pandemic workingfrom-home economy. Should you add a home office? Although the signs point to a slight increase in home value and a larger number of homebuyers seeking out properties with home offices, it might be too soon to say where the higher value will offset remodeling and construction costs. For now, already having the extra space for a home office is boosting properties' marketability, but building an entire addition onto a home might not fully recoup the extra costs. Market analysts still need more data to make this determination. However, a home office can still be a great option for homeowners who plan to continue working from home even once the economy opens back up. This can be especially helpful for remote workers who need more privacy and calm within a chaotic household.
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11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
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Home Office Tax Deduction: 2 Very Different Ways to Claim It One way lets you deduct home office expenses easily; the other is harder, but might mean a bigger deduction.
If you're self-employed and work from home, you may be able to save some bucks at tax time by using the home office tax deduction. You have two choices on how to claim it, and those choices depend on your preference for time savings or money savings. Home Office Deductions: Choose the Simple or Complicated Way 1. The complicated way. Fill out IRS Form 8829 — all 44 lines of it. Figure the proportion of your home's overall space devoted to your office and then calculate how much of your overall home expenses went toward your home office. Lots of math happening here. An example: If your home office takes up 300 square feet in a 3,000square foot house, you're using 10% of your home for your work. So, you can take 10% of costs like utilities, homeowners insurance, homeowners association fees, security, and general repairs and maintenance.
Pro Tip: Not sure how big your house is? Check the documents you got when you bought your home — there's probably a detailed rendering. Or measure it. Or check your property tax bill. 2. The simplified way. Take $5 multiplied by your home office's square footage up to 300 square feet or $1,500 maximum deduction and, boom, you're done. You won't have to keep track of your actual expenses. Very little math happening here. If you take the simpler math option, you may not be able to deduct as much as you can with the regular method. You can't depreciate your home office, for example. So consider the value of your time against potential tax savings if you believe you're eligible for more than the $1,500 cap. Here are some other things you need to know. A room or defined area of your home you use just for business. It can't double as your craft room or home gym. Also, that space must be your principal place of business, or the place where you see customers. Pro Tip: If you use your home as the sole location of your business and store your inventory there, the place where you store your products does not have to be just for business. Let's say you run a business selling jewelry from a room in your basement. If you store your jewelry inventory in another part of the basement that is separate and identifiable, you can deduct that space even if you use the rest of the basement as a man cave, home gym, or guest room.
Home Deductions When You Travel for Work You don't have to do all your work from home to take the home office deduction. If you're a freelance journalist, you probably spend a lot of time outside of your office interviewing people. As long as your home office is essential to your business, and you spend substantial time there, doing your writing or other work, you're good. Use Your Separate Structures for Home Deductions Separate structures on your property, like a detached garage you've converted to an office or studio, are eligible for the home office deduction. Unlike an office inside your home, a separate structure doesn't have to be your main place of business to qualify for a deduction. Home Office Deductions for In-Home Care Providers Why, yes. We're glad you asked. If you provide in-home daycare services for children, the elderly, or disabled persons as a licensed or authorized business, you don't have to use the space exclusively for the daycare business to take the home office deduction. You calculate your deduction by dividing the number of hours you used your home workspace to provide daycare services during the year by the total number of hours during the year. For example, if you do daycare 40 hours a week for 50 weeks a year, that's 2,000 hours a year, divided by the 8,760 hours in a regular year equals 22.8%. So you could take 22.8% of the ($1,500 maximum deduction — $5 per square foot times 300 square feet maximum) simplified deduction for your daycare workspace.
Home Deductions for Remote Employees Although freelancers can realize tax benefits, full-time remote employees who use their home exclusively and regularly for business can't. The benefit for remote workers was excised in the Tax Code revamp enacted by Congress in late 2017. Home Office Deduction: Don't Forget Depreciation Depreciation is based on the idea that everything — even a home — wears out eventually. Here's how to figure out home office depreciation: 1. 2. 3. 4. For example:
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Add the home's purchase price to the cost of improvements. Subtract the value of the land it sits on. Multiply that cost basis by the percentage of your home used for work. This gives you the tax basis for your home office. Divide by 39 years (this is the standard number required by the tax law.) Purchase price: $100,000 Value of land: $25,000 Cost basis: $75,000, plus cost of improvements you’ve made Tax basis: $75,000 x 10% = $7,500 Depreciation deduction: $7,500/39 years*
For a crash course on depreciation, tax to a tax pro or read IRS Publication 946. If you opt for reading the IRS pub, make a large pot of coffee. Pro Tip: Depreciation deductions on your home office may increase the amount of profit on a home sale that's subject to taxes. Most taxpayers don't owe income tax on up to $250,000 of profit if you're a single filer, $500,000 for joint filers. Talk to a tax professional on how depreciation deductions affect your tax liability when you sell. Courtesy HouseLogic, brought to you by REALTORS®
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JANUARY 2021 MARKET NEWSLETTER Truckee, Golf Course Communities, Tahoe Donner, Northstar, Donner Summit, Alpine/Squaw, North & West Shore Lake Tahoe, CA.
Even the slightest bit of ice on the roads can make for treacherous driving conditions. It's always best to avoid the roads in these conditions, but here are five tips to keep you safe on the road if you need to go out for that bread and milk during this weekend's winter weather.
Be prepared: Clear ice and snow off the car before you start driving. Snow left on top of the car can slide off and obstruct your vision and that of those around you. Stock the car with blankets, food and water. Don't forget your phone.
Charging your phone: Yes, the car is a great place to charge your phone if there's a power outage in your home. But when doing so, don't run your car in a closed garage, and make sure your tailpipe is clear of any snow or ice to avoid carbon monoxide poisoning.
The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
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JANUARY 2021 MARKET NEWSLETTER Truckee, Golf Course Communities, Tahoe Donner, Northstar, Donner Summit, Alpine/Squaw, North & West Shore Lake Tahoe, CA.
How to take a hill: Get some momentum before you start up a hill, and let it carry you to the top. Avoid hitting the gas pedal on the way up because it can cause your wheels to spin. Once you're at the top, reduce your speed and descend slowly.
Skid recovery: If your car starts to skid, steer it in the direction you want the car to go. Avoid slamming or pumping the brake pedal.
Getting stuck: Stay with the vehicle and don't walk outside in severe weather. Keep the dome light on, because it uses a small amount of electricity and attach brightly colored cloth to the window. Conserve gas by turning the engine on only periodically to warm the car. Again, make sure the tailpipe is clear of snow. The Dickson Truckee Team
11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
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JANUARY 2021 MARKET NEWSLETTER Truckee, Golf Course Communities, Tahoe Donner, Northstar, Donner Summit, Alpine/Squaw, North & West Shore Lake Tahoe, CA.
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Inauguration Day 2021 January 20, 2021 in the USA The inauguration of the president of the United States takes place on January 20, 2021. The only inauguration element mandated by the United States Constitution is that the president make an oath or affirmation before that person can "enter on the Execution" of the office of the presidency. However, over the years, various traditions have arisen that have expanded the inauguration from a simple oath-taking ceremony to a day-long event, including parades, speeches, and balls. In addition to the public, the attendees at the ceremony generally include Members of Congress, Supreme Court justices, high-ranking military officers, former presidents, living Medal of Honor recipients, and other dignitaries. The text "Inauguration Day" has been taken from www.cute-calendar.com
The Dickson Truckee Team 11836 Donner Pass Road | Truckee, CA 96161 | 800.541.4440
