Short sales tax break extended

January 13, 2013 By Chris Leave a Comment

Real Estate Markets Short Sales Tax Break Extended To End Of 2013

An important part of the agreement reached by Congress January 1st preserves the 2007 Mortgage Forgiveness Debt Relief Act, keeping many short sales sellers from having to pay taxes on the difference between what they owe on their mortgage and the actual sale price.

Short sales (FAQ) are real estate transactions where lenders allow homeowners to sell homes for less than the balance of the mortgage. These sales have been an important factor in reviving the St. Petersburg-Tampa, and national, real estate markets.

Short Sales Effected by Debt Relief Act

The so called “fiscal cliff bill” will save many upside down homeowners thousands of dollars in taxes and could serve to further spur sales. Sellers, who before the January 1st vote were worried about the additional taxes they would have to pay, are breathing a huge sigh of relief. Buyers are also breathing easier knowing what could have been a game changer as of December 31, 2012 has been avoided for at least another year.

For example, had the Debt Relief Act expired December 31st, a homeowner in a 25 percent tax bracket who sold their home for $150,000 less than the balance of their existing mortgage could owe approximately as much as [Read more…]

Barcley Estates Neighborhood

January 7, 2013 By Chris Leave a Comment

Barcley Estates Neighborhood Offers Homeowners Space, Style & Convenience Within St. Pete, FL

The St. Petersburg-Tampa area is home to many notable neighborhoods. Old Northeast, Snell Isle and Feather Sound immediately come to mind. While others may not have quite the same name recognition, many offer value, charm and unique amenities that make them “must sees” when considering a move to or within the greater Tampa Bay area.

Take, for example, Barcley Estates in St. Petersburg, FL. This small but established neighborhood of about 283 households was built by the Barcley brothers, Dick and Bob, from the mid-60’s through the mid-70’s. Some call it a little-known gem, others a well-kept secret. For one reason, it’s literally hidden away off MLK Jr. St N and bordered, roughly, by 90^th Ave. N to the north, 15^th Lane N to the west and 86^th Ave. N to the south. But basically, it’s located just east of the I-275-Gandy Boulevard interchange.

A Family-oriented, Great School District Neighborhood – Barcley Estates

Barcley Estates is a peaceful, family oriented and well-maintained collection of upscale custom homes situated on larger than normal parcels of land. It’s a great place to raise kids (Sawgrass Lake Elementary School, considered above average, is right nearby and covers grades Pre-K through Fifth). An abundance of mature landscaping, towering pines and live oaks helps conceal the neighborhood, and provide a great deal of privacy from the “outside world.” A very active homeowner’s association works hard to maintain the character, and strong real estate values in this deed-restricted community.

If you’re looking for a home that has convenient access to the best the area has to offer, Barcley Estates provides an easy entrance to downtown Tampa and the Tampa International Airport by way of the Howard Frankland or Gandy bridges, while downtown St. Petersburg and Clearwater are literally minutes away. So too are all the outdoor activities St. Petersburg-Tampa area is renown for: world-class beaches, in and offshore boating, fishing and golfing, to name a few. If you’re a sports fan, the area boasts three professional teams, baseball’s Tampa Bay Rays, football’s Tampa Bay Buccaneers and the Tampa Bay Lightning hockey club.

8 Tips for Choosing Interior Designer

December 31, 2012 By Chris Leave a Comment

8 Tips For Choosing The Right Interior Designer

You’re perplexed. You’ve lived in the same Old Northeast house in St. Petersburg, Florida for however many years. Your kids are gone, and now you want to reinvent the interior to fit you and your partner’s new lifestyle. You’re both stumped for ideas, so you’ve agreed to call-in an Interior Designer, but how do you go about finding the right one?

Here are a few tips on choosing an interior designer.

They will, first, help you figure out what you really want, and then you help transform your old digs into new ones…

Go to your room. Take notes on each room you’re thinking of redesigning. Organize your thoughts as to how you want to live in that space. Gather up your files of design snippets, photos, napkin scribbles and random thoughts.
Define your budget. Be realistic. And stick to it. Period. (Well, until you find that amazing claw-foot tub you’ve always wanted to soak in.) Then…
Ask around. Check to see which designers your friends and family have used and what their experiences were like. Were they extremely satisfied? Was the project finished on time and within budget? Ask the Style Editor at your local city magazine or the Tampa Bay Times for a recommendation. Set up interviews, and meet with each one to see if your personalities mesh.
Find and be a good listener. You’re going to spend a lot of time with your designer talking about some of the most minute details of your daily life, and how you use your home spaces, so you want to find someone who will listen to you and understand your particular needs. Then, it’s your turn. Have an open mind, listen to your designer’s ideas and form a creative team. If you find the right designer, it can be a really enjoyable process.
Check their portfolio. Some designers specialize in meeting the various needs of their clients. Some have their very own style. A good designer should be able to tailor their [Read more…]

Martinis for Moffitt Gives $100K to Moffitt Cancer Center

December 27, 2012 By Chris Leave a Comment

Moffitt Cancer Center Receives $100K From Martinis For Moffitt

The final tally is in and Tampa’s H. Lee Moffitt Cancer Center is once again the recipient of a $100,000 donation from this year’s annual Martini’s For Moffitt fund raising event produced jointly by Chris Hounchell & Associates and Bay Area Advisors. JCIII & Associates served as the 2012 Presenting Sponsor, and has generously committed once again for 2013. The event took place July 20th at the Straz Center for Performing Arts – Morsani Hall, and will be held there again on July 20^th, 2013.

Since its inception in 2007, Martinis For Moffitt has raised over $350,000 for the Moffitt Cancer Center’s programs and the Advanced Prostate Cancer Collaboration (APCC) initiative. Eighty percent of the gross charitable donations from Martinis for Moffitt benefit the Moffitt Cancer Center directly. Prostate cancer claims the lives of over 27,000 people each year, and is one of the leading cancer killers.

The good news is; It’s not too late to make a donation or be a sponsor for 2013. Contact Chris Hounchell, Chris Hounchell & Associates’ Broker Associate, at 727-642-9107 for more information on how you can help this tremendous cause.

Confusion Dispelled on 3.8% Real Estate Tax

December 19, 2012 By Chris Leave a Comment

Confusion Dispelled On 2013 3.8% “Real Estate Tax”

Ever since the adoption of “Obamacare” in 2010, confusion, rumors and disinformation have surrounded what has been referred to as the 3.8% 2013 “real estate tax,” and by others as a “Medicare tax” scheduled to take effect January 1, 2013. Let’s see if we can dispel some of the myths and get down to facts.

3.8% Real Estate Tax, aka “Medicare Tax” Explained:

First, it’s referred by some as a “Medicare Tax” because Congress earmarked proceeds for the Medicare Trust Fund when the legislation was adopted March 23, 2010. It’s estimated that $210 billion will be raised over 10 years with a goal of helping to extend the life of the federal Medicare program.

Rumors persist that the 3.8% real estate tax will apply to all real estate sales. NOT SO, but it can be complex trying to determine if you will have a tax consequence or not. Therefore, it’s important to understand some of the terminology involved before we get down to the numbers.

Net investment income – Income received from investment assets such as bonds, stocks, mutual funds, loans and other investments.

Capital gain – When a capital asset is sold, the difference between the basis in the asset and the amount it is sold for (or a capital loss if it is sold for less).

Basis – the cost of an asset, which includes the purchase price, shopping, installation, and other services associated with the asset.

Adjusted gross income (AGI) – measure of income used to determine how much of your income is taxable and is calculated as your gross income from taxable sources minus allowable deductions, such as unreimbursed business expenses, medical expenses, alimony and deductible retirement plan contributions.

Now, here is just one example of this new tax: Capital Gain on Sale of Principal Residence

o Couple sells house for a realized gain of $600,000

o Adjusted gross income (AGI) is $300,000 (before the sale)

o Taxable gain on sale = $100,000 ($600,000 gain – $500,000 exclusion for married filing jointly on sale of principal residence)

o New AGI= $400,000 ($300,000 + $100,000)

o Excess of AGI over $250,000= $150,000 ($400,000 – $250,000 since married filing jointly)

o Lesser of the excess AGI or taxable gain on sale= $100,000

o Tax due= $3,800 ($100,000 taxable investment income x 3.8% tax)

Note: if the couple had a gain of less than $500,000 on the sale of their residence, none of that gain would be subject to the 3.8% tax. Whether they paid the 3.8% real estate tax would depend on the other components of their $300,000 AGI.

Keep in mind, if all of your income is derived from real estate investments that you own and operate, you may not be subject to the 3.8% tax. Your property may be considered your “trade or business,” and although you are not responsible for the 3.8% tax you could be responsible for a tax on the earned income.

Additionally, if you use rental properties for an investment, then they are not considered a trade or business, no matter the income you bring in. Rental homes that have been rented for more than 14 days could be subject to the new 3.8% tax, assuming that you meet the $200,000/$250,000 AGI threshold.

In the sale of a secondary home there is no tax exclusion for the first $250,000/$500,000 of a capital gain.

Bottom line – The unearned income “Medicare Tax” applies to ALL capital gains, not only home sales. Whatever your income level, or however much you profit from the sale of your investments, everyone’s income and tax situation is different. Our advice is to seek the guidance of your tax professional to see how the 3.8% may, or may not, affect you.

Chris Hounchell & Associates is the leader in general real estate, pre-foreclosure, short sale and foreclosure markets in the Pinellas County area. We are not licensed tax advisors in any capacity, so this information should not be used to make any tax related decision based on the qualification of any information received by Chris Hounchell. For more information on buying vs. renting, contact Chris today at 727-642-9107.

Happy Holidays 2012

December 11, 2012 By Chris Leave a Comment

Chris Hounchell & Associates Send Happy Holidays Wishes

While the long range outlook may not include a dusting of snow for the holidays, air traffic controllers at TPA and PIE are confident that flights, including sleighs pulled by reindeer, should have ample visibility to make their appointed rounds. Happy Holidays everyone!

On behalf of everyone at Chris Hounchell & Associates, we would like to wish the entire St. Petersburg-Tampa area a most festive holiday season, and a prosperous, healthy and peaceful New Year. Cheers!

Happy Thanksgiving 2012

November 20, 2012 By Chris Leave a Comment

Thanksgiving Dinner with all the fixin's

What are you thankful for?

Giving Thanks – Share Your Gratitude – Thanksgiving 2012

Do you know what one of our most powerful emotions is? Giving thanks.

In recent years, psychologists have learned that giving thanks makes us happier and improves our attitudes about life. This is especially true during difficult times. And many of us sure have a full helping of those, especially our friends up north.

Stop and count your blessings. If your family is like ours, you might be surprised at how blessed you really are when you take a few moments to focus on all the good in your life. Psychologists liken it to hijacking your emotional system. It’s a temporary shutting down of your normal day-to-day thoughts except for those surrounding your feelings of gratitude.

You can super charge your feelings of being blessed if you share your thoughts with others. It’s a person-to-person connection you make on a very positive level. If you express your gratefulness verbally, and in a heartfelt manner, it can immediately change your attitude and your outlook on life, along with the persons with whom you share your appreciation.

Start with those closest to you. Let them know you’re grateful for having them in your life. Tell your wife. Tell your kids. Then expand your circle. Tell your boss or the people working for you. Tell the bagger at the grocery store. Don’t forget the person who delivers your mail and hauls away your garbage. Spread your feelings of appreciation far and wide, and you’ll feel the benefits immediately.

Don’t forget those less fortunate than you. Take time to help them out. You’ll find they’ll share their own feelings of gratitude freely, which will only add to your list of those things for which you are thankful.

What are you thankful for?

Enjoy this Thanksgiving 2012 with family, friends and loved ones.

Happy Thanksgiving everyone!

St. Pete/Tampa Housing Prices Rise

November 7, 2012 By Chris Leave a Comment

St. Petersburg/Tampa Area & National Housing Prices, Demand Continue To Rise

In a recent blog posting, we recounted that prices and demand are both on the rise in the St. Petersburg-Tampa area real estate market. Our conservative take mentioned an almost eight percent bump in home sales.

What the Pros are Saying

However, a new report by MarketWatch not only confirms the trend, but also jumps the increase to over 20 percent from the same time last year.

In a related report, CoreLogic, a private real estate data provider, recently said that home prices increased by 4.6 percent in August compared to a year ago. This represents “the largest year-over-year increase in more than six years,” according to CoreLogic.

MarketWatch.com claims that for the first time in too long a time, “the supply of both new and used homes available for sale has dropped below demand,” and that “prices are rising both quarter-to-quarter and year-to-year for the first time in two years.” This is great news for sellers, and a call to buyers to get off the fence and don’t delay as prices continue their upward climb.

Couple with increased prices, mortgage interest rates are at 60-year lows, and we have a market where homes are more affordable now than they have been in nearly a quarter century.

MarketWatch says that with the 20 percent increase, and pending sales at a 2-1/2-year high, inventory is dwindling, foreclosures and short sales have slowed, selling prices are rising, and buying is on the rise. As a result, the buyers market is beginning to turn in favor of sellers.

As we said in our earlier “Good News For Tampa Bay Home Sellers” blog…For buyers, the message is clear…the days of putting off the decision to purchase a new home in order to get a better price are over.

Don’t delay, contact Chris Hounchell & Associates today for a free home evaluation.

VOTE2012

November 5, 2012 By Chris Leave a Comment

DON’T FORGET TO VOTE 2012!

Vicky O’Donnell Expands Role Chris Hounchell & Associates

November 1, 2012 By Chris Leave a Comment

Vicky O’Donnell Expands Role with Chris Hounchell & Associates

Vicky O’Donnell has expanded her role with Chris Hounchell & Associates to include Buyer and Seller Representation, Marketing Administration and Account Management. Chris Hounchell, owner/team lead of Chris Hounchell & Associates, made the announcement.

Vicky has consistently achieved multi-million dollar sales production levels throughout her different careers, and now she brings those experiences together to specialize in all phases of relocation services. Her 20-years of exceptional experience in direct sales is based upon her commitment to providing the highest level of client service backed by integrity and dedication.

Vicky, who relocated to Florida from upstate New York, graduated from the Rochester Institute of Technology with a B.S. in Business Administration, and immediately began her impressive career in business-to-business sales. She makes her home in Indian Rocks Beach where she takes full advantage of all the St. Petersburg-Tampa area and beaches have to offer.

Great job, Vicky!

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