Arizona Homeowner January | February 2013
PRESTIGIOUS GOLF COMMUNITIES PARADISE VALLEY ~ BILTMORE SCOTTSDALE ~ CAREFREE/CAVE CREEK
Featured Cover Property
In today’s market, where home values seem to be at an all-time-low, luxury homes have become more affordable. Luxury Home Buyers: This is the time to purchase your dream home in the Valley’s most prestigious communities, with the quality and the service you deserve. Turn your dreams into reality before the market changes to a seller’s market. Market trends show that to be on our horizon. Over the years, statistics have proven these cycles in our industry. Today more than ever, buyers and sellers are relying on Realtors that have proven themselves in their field. Let’s talk about the present market, your home, your goals and how we can strategize and formulate a plan to your personal circumstances. I look forward to working with you! • Second home, golf and luxury residence specialist • A reputation for personal attention and full commitment • 26 years of real estate experience with international clientele • Outstanding market knowledge, always current with available inventory • Fluent in French and Spanish
Marie Heilman ASSOCIATE BROKER
Phone: 480.570.5555 Fax: 480.634.8513 Properties@MarieHeilman.com “Real Estate is a lifetime of loyal relationships”
www.MarieHeilmanHomes.com If your home is currently listed, this is not a solicitation for that listing.
featured cover property proudly presented by marie heilman See Back Cover for Details
9913 E. Quarry Trail 3555 Sq. Ft. | 3 Bed | 3 Bath Offered at $875,000 Custom designed and built by Tierra Custom Homes, this single-level home welcomes with an inviting courtyard entrance. It has all you need for entertainment, connecting the inside and out with pocket sliding doors. High-vaulted ceilings, walls of windows, beautiful natural light and high-quality finishes throughout including custom cabinetry and stone floors. Spacious gourmet kitchen with granite surfaces and top-of-the-line appliances such as Sub Zero, Viking and Dacor. Wine cooler, beautiful curved breakfast bar, formal dining round out the area. Comfortable master suite with fireplace. Hidden access to guest suite with fireplace has a private entrance, 3rd bedroom currently used as an office. South-facing backyard is a private oasis, pool with water feature, firepit and BBQ back up to common area. Troon North Golf Membership available. Produced by Desert Lifestyle Publishing • 480.460.0996 • www.DesertLifestyle.net
Top Ten Things You Need To Know About The 3.8% Tax
PROPERTIES FOR SALE IN THE MONUMENT
Marie Heilman’s Featured Listings
1) When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will NOT be subject to this tax. 2) The 3.8% tax will NEVER be collected as a transfer tax on real estate of any type, so you’ll NEVER pay this tax at the time that you purchase a home or other investment property. 3) You’ll NEVER pay this tax at settlement when you sell your home or investment property. Any capital gain you realize at settlement is just one component of that year’s gross income. 4) If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax return)/$500,000 (married filing joint tax return) exclusion on the sale of that home. If your capital gain is greater than these amounts, then you will include any gain above these amounts as income on your Form 1040 tax return. Even then, if your total income (including this taxable portion of gain on your residence) is less than the $200,000/$250,000 amounts, you will NOT pay this tax. If your total income is more than these amounts, a formula will protect some portion of your investment. 5) The tax applies to other types of investment income, not just real estate. If your income is more than the $200,000/$250,000 amount, then the tax formula will be applied to capital gains, interest income, dividend income and net rents (i.e., rents after expenses). 6) The tax goes into effect in 2013. If you have investment income in 2013, you won’t pay the 3.8% tax until you file your 2013 Form 1040 tax return in 2014. The 3.8% tax for any later year will be paid in the following calendar year when the tax returns are filed.
9725 E. Monument Drive 3857 Sq. Ft. | 4 Bed | 4.5 Bath | $995,000
9913 E. Quarry Trail 3555 Sq. Ft. | 3 Bed | 3 Bath | $875,000
10765 E. Cinder Cone Trail | 1.29-Acre Homesite | $450,000
UNDER CONTRACT BUT ACCEPTING BACK-UPS
SALE PENDING
9742 E. Hidden Green Drive 4884 Sq. Ft. | 5 Bed | 4.5 Bath | $832,500
9652 E. Southwind Lane 3600 Sq. Ft. | 4 Bed | 3 Bath | $825,000
UNDER CONTRACT BUT ACCEPTING BACK-UPS
10698 E. Skinner Drive | 4464 Sq. Ft. | 4 Bed | 3 Bath | $1,295,000
7) In any particular year, if you have NO income from capital gains, rents, interest or dividends, you’ll NEVER pay this tax, even if you have millions of dollars of other types of income. 8) The formula that determines the amount of 3.8% tax due will ALWAYS protect $200,000 ($250,000 on a joint return) of your income from any burden of the 3.8% tax. For example, if you are single and have a total of $201,000 income, the 3.8% tax would NEVER be imposed on more than $1000.
9918 E. Monument Drive 3176 Sq. Ft. | 4 Bed | 4 Bath | $789,000
9546 E. Mark Lane 3000 Sq. Ft. | 3 Bed | 2.5 Bath | $625,000
9) It’s true that investment income from rents on an investment property could be subject to the 3.8% tax. BUT: The only rental income that would be included in your gross income and therefore possibly subject to the tax is net rental income: gross rents minus expenses like depreciation, interest, property tax, maintenance and utilities. 10) The tax was enacted along with the health care legislation in 2010. It was added to the package just hours before the final vote and without review. NAR strongly opposed the tax at the time, and remains hopeful that it will not go into effect. The tax will no doubt be debated during the upcoming tax reform debates in 2013.
9913 E. Quarry Trail | 3555 Sq. Ft. | 3 Bed | 3 Bath | $875,000
28831 N. 95th Way 3173 Sq. Ft. | 3 Bed | 3 Bath | $610,000
9478 E. Mark Lane 2268 Sq. Ft. | 3 Bed | 3 Bath | $525,000
Source: MLS. Properties on this list have been listed by various participants in the MLS. Information is deemed reliable but not guaranteed.
10040 E. Happy Valley Road 306 | 3748 Sq. Ft. | 4 Bed | 4 Bath | $685,000
Sale Pending and Sold in Desert Highlands In The Last 60 Days ADDRESS
SQ. FT. / BED / BATH
LIST PRICE
SOLD PRICE
LIST/SOLD PRICE PER SQ. FT.
COE
10040 E Happy Valley Rd 306
3,748 / 4 / 4
$685,000
$182.76 / Na
10040 E Happy Valley Rd 485
3,914 / 3 / 3.5
$880,000
$224.83 / Na
10040 E Happy Valley Rd 71
3,867 / 3 / 2.5
$645,000
$166.8 / Na
10040 E Happy Valley Rd 2051
2,635 / 2 / 2.5
$690,000
$261.86 / Na
10040 E Happy Valley Rd 1026
2,851 / 3 / 2.5
$699,000
$245.18 / Na
10040 E Happy Valley Rd 394
5,096 / 4 / 4.5
$960,000
$960,000
$188.38 / $188.38
11/09/2012
10040 E Happy Valley Rd 668
4,081 / 3 / 4.5
$999,000
$995,000
$244.79 / $243.81
12/06/2012
10040 E Happy Valley Rd 1004
4,464 / 3 / 3.5
$1,750,000
$1,600,000
$392.03 / $358.42
11/15/2012
10040 E Happy Valley Rd 1035
7,698 / 4 / 8
$9,995,000
$8,200,000
$1,298.39 / $1,065.21 12/03/2012
Source: MLS. Properties on this list have been listed/sold by various participants in the MLS. Information is deemed reliable but not guaranteed.
Top Ten Things You Need To Know About The 3.8% Tax
PROPERTIES FOR SALE IN THE MONUMENT
Marie Heilman’s Featured Listings
1) When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will NOT be subject to this tax. 2) The 3.8% tax will NEVER be collected as a transfer tax on real estate of any type, so you’ll NEVER pay this tax at the time that you purchase a home or other investment property. 3) You’ll NEVER pay this tax at settlement when you sell your home or investment property. Any capital gain you realize at settlement is just one component of that year’s gross income. 4) If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax return)/$500,000 (married filing joint tax return) exclusion on the sale of that home. If your capital gain is greater than these amounts, then you will include any gain above these amounts as income on your Form 1040 tax return. Even then, if your total income (including this taxable portion of gain on your residence) is less than the $200,000/$250,000 amounts, you will NOT pay this tax. If your total income is more than these amounts, a formula will protect some portion of your investment. 5) The tax applies to other types of investment income, not just real estate. If your income is more than the $200,000/$250,000 amount, then the tax formula will be applied to capital gains, interest income, dividend income and net rents (i.e., rents after expenses). 6) The tax goes into effect in 2013. If you have investment income in 2013, you won’t pay the 3.8% tax until you file your 2013 Form 1040 tax return in 2014. The 3.8% tax for any later year will be paid in the following calendar year when the tax returns are filed.
9725 E. Monument Drive 3857 Sq. Ft. | 4 Bed | 4.5 Bath | $995,000
9913 E. Quarry Trail 3555 Sq. Ft. | 3 Bed | 3 Bath | $875,000
10765 E. Cinder Cone Trail | 1.29-Acre Homesite | $450,000
UNDER CONTRACT BUT ACCEPTING BACK-UPS
SALE PENDING
9742 E. Hidden Green Drive 4884 Sq. Ft. | 5 Bed | 4.5 Bath | $832,500
9652 E. Southwind Lane 3600 Sq. Ft. | 4 Bed | 3 Bath | $825,000
UNDER CONTRACT BUT ACCEPTING BACK-UPS
10698 E. Skinner Drive | 4464 Sq. Ft. | 4 Bed | 3 Bath | $1,295,000
7) In any particular year, if you have NO income from capital gains, rents, interest or dividends, you’ll NEVER pay this tax, even if you have millions of dollars of other types of income. 8) The formula that determines the amount of 3.8% tax due will ALWAYS protect $200,000 ($250,000 on a joint return) of your income from any burden of the 3.8% tax. For example, if you are single and have a total of $201,000 income, the 3.8% tax would NEVER be imposed on more than $1000.
9918 E. Monument Drive 3176 Sq. Ft. | 4 Bed | 4 Bath | $789,000
9546 E. Mark Lane 3000 Sq. Ft. | 3 Bed | 2.5 Bath | $625,000
9) It’s true that investment income from rents on an investment property could be subject to the 3.8% tax. BUT: The only rental income that would be included in your gross income and therefore possibly subject to the tax is net rental income: gross rents minus expenses like depreciation, interest, property tax, maintenance and utilities. 10) The tax was enacted along with the health care legislation in 2010. It was added to the package just hours before the final vote and without review. NAR strongly opposed the tax at the time, and remains hopeful that it will not go into effect. The tax will no doubt be debated during the upcoming tax reform debates in 2013.
9913 E. Quarry Trail | 3555 Sq. Ft. | 3 Bed | 3 Bath | $875,000
28831 N. 95th Way 3173 Sq. Ft. | 3 Bed | 3 Bath | $610,000
9478 E. Mark Lane 2268 Sq. Ft. | 3 Bed | 3 Bath | $525,000
Source: MLS. Properties on this list have been listed by various participants in the MLS. Information is deemed reliable but not guaranteed.
10040 E. Happy Valley Road 306 | 3748 Sq. Ft. | 4 Bed | 4 Bath | $685,000
Sale Pending and Sold in Desert Highlands In The Last 60 Days ADDRESS
SQ. FT. / BED / BATH
LIST PRICE
SOLD PRICE
LIST/SOLD PRICE PER SQ. FT.
COE
10040 E Happy Valley Rd 306
3,748 / 4 / 4
$685,000
$182.76 / Na
10040 E Happy Valley Rd 485
3,914 / 3 / 3.5
$880,000
$224.83 / Na
10040 E Happy Valley Rd 71
3,867 / 3 / 2.5
$645,000
$166.8 / Na
10040 E Happy Valley Rd 2051
2,635 / 2 / 2.5
$690,000
$261.86 / Na
10040 E Happy Valley Rd 1026
2,851 / 3 / 2.5
$699,000
$245.18 / Na
10040 E Happy Valley Rd 394
5,096 / 4 / 4.5
$960,000
$960,000
$188.38 / $188.38
11/09/2012
10040 E Happy Valley Rd 668
4,081 / 3 / 4.5
$999,000
$995,000
$244.79 / $243.81
12/06/2012
10040 E Happy Valley Rd 1004
4,464 / 3 / 3.5
$1,750,000
$1,600,000
$392.03 / $358.42
11/15/2012
10040 E Happy Valley Rd 1035
7,698 / 4 / 8
$9,995,000
$8,200,000
$1,298.39 / $1,065.21 12/03/2012
Source: MLS. Properties on this list have been listed/sold by various participants in the MLS. Information is deemed reliable but not guaranteed.
Arizona Homeowner January | February 2013
PRESTIGIOUS GOLF COMMUNITIES PARADISE VALLEY ~ BILTMORE SCOTTSDALE ~ CAREFREE/CAVE CREEK
Featured Cover Property
In today’s market, where home values seem to be at an all-time-low, luxury homes have become more affordable. Luxury Home Buyers: This is the time to purchase your dream home in the Valley’s most prestigious communities, with the quality and the service you deserve. Turn your dreams into reality before the market changes to a seller’s market. Market trends show that to be on our horizon. Over the years, statistics have proven these cycles in our industry. Today more than ever, buyers and sellers are relying on Realtors that have proven themselves in their field. Let’s talk about the present market, your home, your goals and how we can strategize and formulate a plan to your personal circumstances. I look forward to working with you! • Second home, golf and luxury residence specialist • A reputation for personal attention and full commitment • 26 years of real estate experience with international clientele • Outstanding market knowledge, always current with available inventory • Fluent in French and Spanish
Marie Heilman ASSOCIATE BROKER
Phone: 480.570.5555 Fax: 480.634.8513 Properties@MarieHeilman.com “Real Estate is a lifetime of loyal relationships”
www.MarieHeilmanHomes.com If your home is currently listed, this is not a solicitation for that listing.
featured cover property proudly presented by marie heilman See Back Cover for Details
9913 E. Quarry Trail 3555 Sq. Ft. | 3 Bed | 3 Bath Offered at $875,000 Custom designed and built by Tierra Custom Homes, this single-level home welcomes with an inviting courtyard entrance. It has all you need for entertainment, connecting the inside and out with pocket sliding doors. High-vaulted ceilings, walls of windows, beautiful natural light and high-quality finishes throughout including custom cabinetry and stone floors. Spacious gourmet kitchen with granite surfaces and top-of-the-line appliances such as Sub Zero, Viking and Dacor. Wine cooler, beautiful curved breakfast bar, formal dining round out the area. Comfortable master suite with fireplace. Hidden access to guest suite with fireplace has a private entrance, 3rd bedroom currently used as an office. South-facing backyard is a private oasis, pool with water feature, firepit and BBQ back up to common area. Troon North Golf Membership available. Produced by Desert Lifestyle Publishing • 480.460.0996 • www.DesertLifestyle.net