Real Estate of Mind
Provoking thought since 1990
It’s the end of April so nominally, the 2024 tax season has come and gone. But if you think about it, tax time for homeowners is never really over. There’s always some other piece of tax legislation waiting in the wings or some new esoteric provision that requires advanced decoding to make sense. In this accelerated age of everything, homeownership is only getting more complicated.
And since homes are our largest assets and the sacred places that nurture our daily lives, we can’t afford to not pay attention. Hardly a month goes by, when some new law or challenge (or tax) doesn’t come up that could have a significant impact on our financial well being and/or future peace of mind as homeowners.
That’s not to say that all tax issues are bad of course. There are plenty of tax benefits baked into the mix of homeownership. And depending on how old you are, when you bought and where you are at in life, owning a home can either be viewed as a tax advantage or as a pending liability. Or both.
On the plus side, mortgage interest and property tax deductions benefit those trying to squeeze into the high priced housing market. They are government subsidies that are only available to homeowners and they make owning at least a little more affordable. On the not so plus side, once the equity in your primary residence has grown, worries set in about how you can avoid paying a big chunk in taxes on all that gain.
Good or bad, questions about taxes and homeownership abound: Will the SALT tax expire in 2025? Will the cap be expanded? Is there a SALT workaround for homeowners? Will the More Homes on the Market Act double the Capital Gains Exemption for married homeowners? Will portions of the Prop 19 Death Tax be repealed in the coming year? Will the Cap Gains Tax Rate increase? How can I transfer my current Property Tax Basis if I downsize? Did I say that homeownership is getting more complicated?
Join me for a free talk on Tax Issues for Homeowners, Wednesday May 1st from 7:00-8:30pm at Christie’s Sereno Office, 720 Front Street. The guest speaker is Thomas Castillo, CPA with Seghetti Waxler and he’ll cover a range of tax-related topics from: What is your Adjusted Basis? How to Calculate Capital Gains? What is a Step-Up in Basis? How to Avoid Capital Gains? Gifting Property? What’s a 1031 Exchange?
The talk is free but seating is limited so call me at 831-818-1431 or email me at getreal@sereno.com to reserve a seat or get a list of additional upcoming talks.