Presidio Real Estate Blog

Year End Tax Tips For Rental Property Owners

As 2011 comes to a close it is a good time to start thinking about the litlle things that may help you as an investment property owner save a few extra tax dollars. If you own rental property and have the ability to deduct some of the expenses related to it. Here are a few things to think about. Please consult with your tax advisor on any tax related issues. We think owning rental property in 2012 is a great idea.

 

Rental Property Repairs

Is your property in need of some repairs that you have been putting off ? Get them done before the end of the year.  Replace a water heater, install new windows, fix those nagging little problems. Repair expenses can help offset any rental income you may have. You can also purchase goods and services needed for the rental property business, and pay the bills early. Repairs and Improvements are different. Improvements are depreciated over the life of the property while repairs are treated as an expense.

Claim Your Automobile Expenses

Automobile expenses paid exclusively for your rental business can be fully deductible. You can select either the actual expenses method or take the standard mileage deduction. If you made 10 trips to the property and each trip was 100 miles, you can expense 1000 miles at .55 per mile.

Make an Extra Mortgage Payment

The additional interest you pay will help reduce your income. If you have an operating  loss and are able to deduct this, you may save on the amount of income tax you pay on monies earned elsewhere. You may also be able to pay your property tax bill that is due in Feb 2012 early.

Rental Property Asset Depreciation Expense

What are your property’s  short life assets ? They can be depreciated faster.  Assets like air conditioners, refrigerator, carpets, clothes dryer, etc can be depreciated over a five year  life while fences, patio, sidewalk, etc can be depreciated over 15 years. By separating assets and depreciating them separately, deductions are taken sooner.

Energy Saving Home Improvements

Replace old appliances, windows etc to qualify for tax rebates. To find out what applies to your property visit the Energy Star Website. Tax rebates that were offered in 2010 were changed in 2011. However there are some great rebates to take advantage of. Check the list of items here.

If you have any Tax related questions please consult our preferred tax advisors, Smith & Wooten CPA at  (805) 585-3800 or visit their website

Executive Moorpark Home For Lease $2400.00

Presidio Real Estate Services- New Rental Listing.  Fabulous  3 bedroom, 3 bathroom home in Moorpark . Newer kitchen cabinets, granite counters, wood floors, and custom paint. Two story house with a two car garage with direct access to the interior. Laundry room in the home and a small loft area for an office. This home comes with the option to lease furnished.  Community pool, spa. located in the Moorpark Unified School District.

Property Photos

 Apply Online

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Get Additional Details

FOR LEASE: Camarillo Townhome Lakefront for Only $1725.00 Per Month

Beautiful Camarillo  lake side 2 bedroom 2.5 bath townhome.   This home is situated on a quiet cul-de-sac and has been upgraded throughout.  Hardwood floors vaulted ceilings, and recessed lighting  make the home feel modern and spacious.  The bathrooms and  kicthen have been upgraded with tile flooring. Custom paint colors The master suite has a great view of the lake and is spacious with a large walk-in closet.  The interior stairs feature custom railings giving it a european feel.  The complex includes pools, spa, tennis court, RV parking and lake for fishing and boating.  Located close to shopping and school, with easy freeway access.  Unit includes soft water system.

Please apply online or download an application from our website

Conejo Valley Housing Market Report Oct 2011

As 2011 comes to a close we wanted to take a look at how the Conejo Valley Real Estate market is holding up. This report includes home sales data from the following cities,  Thousand Oaks, Newbury Park, and Westlake Village and includes all Single Family Homes and Townhome/Condo Sales. You can download the full report using the link at the end of this story.

It is always interesting to compare our local market information to the information many of us are bombarded with in the national news media. Let’s see how we stack up. The median home price fell  9%, from  $585,000 to $530,000 and the number of properties for sale also fell off rather dramatically, falling  from 852 units in Oct 2010 to 658 in October 2011. It is taking homeowners on avg. 112 days to sell their property.

Thousand Oaks and Newbury Park Home Sales

If we remove Westlake Village from our data set, the median price in Thousand Oaks and Newbury Park  was $510,000 up from from ($497,000) in Oct. 2010.  This headline could read home prices increase 3% year over year.  That news might make homeowners feel better. One reason for this increase is the limited supply of homes for sale.  The months supply of inventory is at is lowest level in 18 months, with just over a 4.5 months supply of housing. Low inventory has helped prop up prices.

Home Sales Activity By Price

Price Range	Last 365 Days	Previous 365	Change	% Change	Bed	Bath
150-400 K	231	205	26	12.7	3	2
400-650K	470	462	8	1.7	4	2
650-900K	248	272	-24	-8.8	4	3
900-1150K	82	93	-11	-11.8	4	4
1150-1400K	54	50	4	8	5	4

Affordability

The Conejo Valley Housing Market is holding up fairly well. The most popular properties are homes priced between $ 450,000 – 650,000. Low interest rates continue to make properties more affordable. Assuming you purchased a property for $500,000 with 20% down payment your monthly payment including taxes and insurance would be roughly $2504 based on today’s interest rates. If you had no other debt,  it would take a minimum gross monthly  income of $5568 per month and a credit score of over 620 to qualify to purchase this $500,000 home.  I have to say we are getting close to a bottom. All the figures and statistics are lining up to make purchasing a home a smart decision. Please remember a home is not an investment. It is a place to live. If it goes up in value great. Your home is an investment in your lifestyle. If you want an investment, let’s talk and we’ll show you how to buy investment real estate.  

Download Charts and Tables Here:  Conejo Valley Housing Data Oct 2011

Source: Ventura County Regional Datashare

 

 

Source: Ventura County Regional Datashare 

Thougts For The Week

In these difficult econimic times I have decided to post something encouraging each week. Perhaps these words will help someone have a better day. I dot not know the author of this but please enjoy.

 A 92-year-old, well-poised and proud man, who is fully dressed each morning by eight o’clock, with his hair fashionably combed
and shaved perfectly, even though he is legally blind, moved to a nursing home today.   His wife of 70 years recently passed away, making the move necessary. After many hours of waiting patiently in the lobby of the nursing home, he smiled sweetly when told his room was ready. 
  As he maneuvered his walker to the elevator, I provided a visual  description of his tiny room, including the eyelet sheets that had been
hung on his window. “I love it”,he stated with the enthusiasm of an eight-year-old having just been presented with a new puppy. 
    Mr. Jones, you haven’t seen the room; just wait.’      “That doesn’t have anything to do with it,” he replied.  “Happiness is something you decide on ahead of time.  Whether I like my room or not doesn’t depend on how the furniture is arranged … it’s how I arrange my mind. I already decided
to love it. ‘It’s a decision I make every morning when I wake up. I have  a choice; I can spend the day in bed recounting the difficulty I have
with the parts of my body that no longer work, or get out of bed and be  thankful for the ones that do.”   “Each day is a gift, and as long as my eyes open, I’ll focus on  the new day and all the happy memories I’ve stored away.. Just for this time in my life. “ ”Old age is like a bank account. You withdraw from what you’ve put in.”   “So, my advice to you would be to deposit a lot of happiness in the bank account of memories! “ ”Thank you for your part in filling my Memory Bank. I am still depositing.”

    Remember the five simple rules to be happy: 
    1. Free your heart from hatred. 
    2. Free your mind from worries. 
    3. Live simply. 
    4. Give more. 
    5. Expect less.