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While this bill expands government (the IRS specifically) and increases administrative costs to taxpayers to the tune of 3.3 billion dollars per year, its stated intent was to help small businesses. Unfortunately landlords have got caught in a political crossfire and now have a significant new tax reporting burden. Here’s how to comply. This law takes effect for all payments made after December 31, 2010. Be prepared by following these steps. 1. Before hiring anyone who may bill for services greater than $600 during the year for their service, have them fill out and provide you with a W9 form. Do not do business with them until they return the form otherwise the IRS has heavy new penalties they will be imposing next year. Retain these forms, or best yet, scan and upload them to your file library for safe keeping. Remember, these rules are for tax year 2011. This means any transaction after December 31st, 2010. CPAs, accountants, and tax preparation firms typically charge from $50 – $100 per form, plus hourly for research to compile information which can cost landlords thousands, possibly tens of thousands in tax preparation costs if you have them do this task on your behalf. By being prepared and following the simple steps above you can eliminate this potentially massive cost in your 2011 tax return.
Earlier this year, a bill named H.R. 5297: Small Business Jobs Act of 2010 amended tax reporting rules for landlords. Section 2101 establishes that, “a person receiving rental income from real estate shall be considered to be engaged in a trade or business of renting property”. Previously unincorporated landlords were not considered a “business” and therefore complicated tax reporting rules that generally only applied to corporations did not apply; however now they do!
2. Retain complete records of all expenses from each service provider (vendor). You are required for 2011 taxes to file a 1099 for any vendor whom you have paid greater than $600 through the year. The easiest way to maintain these records is with good property management software. With Rentec Direct you simply go to the Properties tab, and click Post Expense.
3. Prior to January 31, 2012 you are required to send a 1099-MISC to the vendor, and by February 28th a copy must be sent to the IRS and State. This is made easy with Rentec Direct’s 1099 assistance. During January 2012 provided all vendor expenses were entered throughout the year, simply click to print your 1099s with no further work to do.
HR5297 information obtained from: http://www.govtrack.us/congress/bill.xpd?bill=h111-5297
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No one likes to talk about it, but burglary is a scary thing. Thieves usually look for potential targets that are the easiest to break into. You can make your home much less attractive to them by taking a few simple steps to beef up home security.
Most of these security measures are easy tasks and only require a few simple tools. A little free time is a small investment for your peace of mind.
1. Installing a quality lockset not only adds to your home's beauty, it also sends a message to would-be intruders.
2. Deadbolts are an inexpensive and effective way of adding security to exterior doors, and make a great supplement to standard locksets.
3. Adding a peephole allows you to see who's knocking before you open the door.
4. To make your sliding patio doors more secure, cut a piece of closet rod to fit in the track behind the sliding door and adjust the track clearance so the doors can't be removed from their frame.
5. Install keyed sash locks on your windows to make them more secure. If you like to let in fresh air, look for locks that also have a vent-locking position.
6. Low-voltage lights are easy to install and provide an excellent, low-energy light source to highlight areas you don't want in shadow.
7. Lights with motion detectors are a convenient and efficient source for outdoor security lighting. Well-positioned motion detectors make it virtually impossible for anyone to sneak up on your home.
8. Security cameras are great for keeping an eye on children playing in the yard and they allow you to see who's coming to the door from inside your home.
9. A storage barn with a good lock keeps your outdoor items organized and safe.
10. Keep your hedges and foundation plants pruned so they don't hide potential entry points to your home. Overgrown plants offer intruders a place to hide while they attempt to break in.
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Do a little landscaping.
Potential buyers will get their first impression of your home from its exterior. So
stand outside and take a few moments to look at your home objectively. Could the
grass use some cutting? Do the flowerbeds need a bit of TLC? Trimmed
landscaping indicates a home that is well cared for throughout.
l Replace mulch.
l Pressure wash the house.
l Edge sidewalks.
l Remove vegetation between concrete and bricks.
l Trim tree limbs that are near the roof.
l Cut the grass.
l Prune hedges.
l Freshen flowerbeds.
l Clear away dead trees and debris.
Tools: Extension
Ladders, Pressure Washer
Make your home more welcoming.
Before homebuyers even come into your home, they'll be greeted by the front
door. So think of it as another chance to make a good impression.
l Install a new door.
l Paint your front door.
l Add some new house numbers.
l Get a new lockset, kickplate and house number combination that coordinates
with a new light fixture.
Materials: House
Numbers, Kickplate, Lighting
Fixtures, Paint
Refresh your deck.
You want your outdoor space to be a place buyers can imagine enjoying during the
summer with friends and family. Fuel their imaginations by rejuvenating the deck
and furnishings.
l Power wash deck clean.
l Reseal the deck.
l Use a wood lattice to enclose unsightly areas underneath.
l Add a bright umbrella.
l Replace cushions on furniture.
l Decorate with potted plants and flowers.
l Accent with a small fountain.
l Install wind chimes to create a serene atmosphere buyers are sure to appreciate.
l Use citronella candles to deter bugs.
Tools: Pressure Washer
Materials: Citronella
Candles, Deck
Sealer, Fountain, Patio
Umbrella, Wind Chimes
Repair every imperfection.
You probably no longer notice your home's little imperfections. Buyers, however,
probably will. These small blemishes may stick out in the buyer's mind, so make
sure to fix them.
l Patch small cracks.
l Repair drywall.
l Replace broken tiles.
l Replace old fixtures.
Tools: Squeegee or Grout
Sponge, Waterproof Gloves
Materials: Drywall Patching
Plaster, Drywall Scraps for
Patches, Drywall
Tape, Faucet, Grout
Sealant, Indoor Tile, Plumber's
Putty, Silicon Caulk
Clean every spot.
Even if your house hasn't always been kept immaculate, you can still make it look
that way. Whether you clean yourself or hire a professional team, it can really help
lead to a sale.
l Scrub the bathroom and kitchen floors.
l Steam clean rugs.
l Polish hardwood floors.
l Wash windows inside and out.
Tools: Scrub Brush, Squeegee
or Grout Sponge, Steam
Cleaner, Waterproof Gloves
Materials: Cleaning
Agent, Floor
Polish, Rags, Window Cleaner
Minimize the clutter.
Unique things that make your place more "you" may actually distract buyers from
envisioning their own personal touches. Remove them so they can imagine your
space as their new home.
l Remove all personal items and pictures and place personal items in storage.
l Clear clutter from the floor by using a shoe cube organizer.
l Store all children's toys.
l Add wire shelving / closet shelving for additional storage space.
l Add a fresh coat of paint inside closets to make everything look clean and
organized.
l Place a few cedar blocks in your closet for a great scent.
Materials: Cedar
Blocks, Moving
Boxes, Paint, Shelving
Improve energy efficiency.
Making your home more efficient saves buyer's money over the long haul. Be sure
to point out all the upgrades to buyers so your hard work doesn't go unnoticed.
l Install a programmable thermostat.
l Place weather-stripping on doors and windows.
l Wrap pipes to conserve energy.
l Insulate your water heater.
l Replace furnace filters.
l Replace old appliances with energy-efficient ones.
Materials:
Filters, Programmable
Thermostat, Water Heater
Insulation, Weatherstripping
Give your favorite space a makeover.
Chances are, you and your family spend the most time in the living room, but the
last thing you want when selling is for the space to feel 'lived-in.' Refreshing the
room with a few simple changes make the space more inviting to buyers while
giving it a fresh feel.
l Paint walls in neutral colors like linen, cream and beige.
l Use thin drapes in a neutral color to accent.
l Switch generic switches with painted or ceramic ones.
l Boost the look of natural lighting with daylight bulbs.
l Add a throw rug to give a touch of softness to the place.
Materials: Accent
rugs, Paint, Switch
Covers, Window Drapes
Create a camera-ready kitchen.
Buyers want a kitchen that feels open and light. You'll want to repair any signs of
wear and tear and replace any items that look dated or aren't working properly.
l Paint walls with white or neutral paint that complements the cabinets.
l Replace existing hardware with cabinet pulls and knobs for a new look.
l Install new lighting under the cabinet for a dramatic effect.
l Highlight the island or countertop with a simple fixture.
l Replace vinyl blinds with sheer bamboo or linen blinds.
Materials: Blinds, Cabinet Pulls
& Knobs, Indoor Lighting, Paint
Design a relaxing space.
Bathrooms get a lot of use. You'll want to make yours look fresh to buyers by
replacing outdated or overused fixtures and adding a few nice, crisp details.
l Paint walls in soft, sedated colors like light blue, pale green or cream.
l Install a new faucet, fixtures and towel bars.
l Put in a medicine cabinet for added storage.
l Buy new towels in a light or neutral color.
l Replace the shower curtain and bathmat. A new shower curtain offers that "new
car" smell.
l Keep the room looking clutter-free by organizing bath accessories in a shower
caddy.
l Add a new bath mat.
These tips are not expensive and give great value and curb appeal as well!
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Lighting is essential to the look and function of any room. And today there are more options in lighting your home than ever before. To help you choose the best type of lighting for your needs, I've provided this simple list of lighting tips. I hope this is helpful. |
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If you've been active in the market for long, you know that the real estate pauses for no man, woman or life event. Nor does it pause for any season; while the market usually does a major slowdown around the winter holidays, the very most motivated buyers and sellers are still doing deals. If your home is currently listed for sale, here are some tips for showing - and selling - your home during the season of peace, love and joyous overeating/overspending!
1. Don't, if you don't have to. During the holidays, the pool of qualified and active buyers shrinks - dramatically. The cold, wet weather in some areas makes buyers hesitant to come out and view properties, and holiday travels cause others to put their house hunts on hold. Buyers also know that many sellers take their homes off the market during this period, so the forecast for receiving lowball offers is: highly likely. Taking your home off the market during the holidays and relisting it after New Year's holds the potential of exposing your home to a fresh set of buyers motivated by a fresh set of resolutions. Plus, many sellers simply don't want to deal with buyers' muddy feet and scheduling intrusion while they are at home on vacation or hosting holiday dinners or guests. (Note: Most of these issues are slightly less impactful in warm-weather climates.]
With that said, there are some advantages to having your home on the market at this time of year, too. Although there will be a larger pool of buyers out and active after the first of the year, the ones who are out in the wet and the cold right now tend to be really motivated to buy. Holiday house hunters usually fall into two camps: they either plain old need a place to live, fast, or they need to close escrow on their new home by year's end for tax reasons. Given that post-tax credit buyers have been characterized by an almost stunning lack of urgency, keeping your home on the market over the holidays is one way to try to capitalize on the urgency this season's motivated buyers face, due to their circumstances.
2. Ditch the holiday decor or make it meticulous. No Charlie Brown trees, people. Staging your home at its festive holiday best can truly backfire if your seasonal staging comes off as amateurish or overdone. if your living room is already small and your marble mantel is the main selling point, crowding the room with a massive arboreal masterpiece (i.e., big tree), piles of gifts, life-sized reindeer-and-sleigh set and covering the entire mantle with faux snow and stockings will do more harm to a prospective buyer's first impressions than good.
If you DO decide to decorate, rethink it as staging with some holiday cheer; this will help you follow the staging mandates of depersonalizing and decluttering your place. If you have a dining room, stage it for a holiday dinner - many a buyer has bought a whole house around their holiday dinner fantasies. Help them visualize their first Hanukah, Christmas or Kwanzaa hosted at their new home (psst - that's your home, in the vision).
But keep your holiday decor somewhat secular and ethnically neutral, if possible. Trees, garlands, lights and bulbs are great - but if I personally were selling my home during the holidays, I'd probably pack my family's nativity scenes away. You might not want your cherished family heirlooms exposed to the public, in the first place. And you definitely don't want to let your ethnic or religious stuff interfere with the buyers' ability to envision their own holidays in your home.
3. Set a few, clear "no show" dates and times. There is no faster way to lose a potential buyer than to make it difficult for their broker or agent to schedule a showing for your home. Sellers seem to forget that most often, buyer's brokers are scheduling multiple properties to be shown in a couple of hours'-long-showing - if the other 3 dozen homes for sale in your neighborhood are vacant or very easy to show, and yours has a bunch of random black out times or dates that the agent can't figure out without making multiple calls to your agent, who then has to call you and call the other agent back - geez, I'm exhausted just writing that! Imagine how tiring it is for buyer's brokers to do that on 5 or 6 properites per showing. This is an easy way to tip buyers toward a competing property.
By the same token, it's understandable that you may need to blackout showings on particular hoildays or times when you're hosting guests. So, rather than going through the drama and frustration of back-and-forth scheduling arrangements around your vacations and obligations, give your listing agent a couple of clear guidelines around holiday season showings (e.g., no showings on12/24, 12/25, 12/31 or 1/1) and ask your agent to include these dates in the confidential remarks for buyer's agents on MLS. The keyword here is "a couple" - keep these "no show" slots to an absolute minimum. If there are multiple, whole weeks or lots of half-day time slots during which you don't want your home shown, consider taking it off the market and relisting it in the New Year, rather than running the risk of getting bumped to the bottom of buyers' brokers' "show" lists.
4. Expect some inconvenience and irritation. Selling during the holidays can be rewarding, but smart sellers approach it knowing it won't always be fun. Go in with realistic expectations. Some buyer is highly likely to track rain, mud or snow into your house, at some point. If you're home for a long staycation, chances are good that someone will interrupt your Zen for a showing. It's even possible that some buyer will leave your front door open longer than you'd like, letting your expensively heated air seep into the great outdoors (on your dime). These things will happen, but the upside is that an uber-motivated buyer-to-be may also come see your place. Avoid the emotional rollercoaster and irritation by expecting these issues and chalking them up as par for the course. It might not hurt to flex your holiday shopping muscles to invest in a $50-ish hand-held carpet cleaner, either! Expectation + preparation eliminate irritation, I like to say. (Seriously - I made that up!)
5. Engage in safe, sensory staging. Holiday food smells ike spiced cider, pumpkin pie and baked appley/cinnamoney things are about as universally comforting as smells get. It certainly wouldn't hurt to do some sensory staging to create a sense of comfort and cheer. Also, remember that dreary winter weather can make even the loveliest house and showing take on a gray cast; counteract this by making sure your home is well-lighted and -heated. One thing, though - if your holiday home is a candle-lit home, make sure you leave no candles burning if you clear your family out for showings.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
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