#matthew stewart realtor

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Majestic Meadow Vista 1 story | Matthew Stewart Realtor | Single Story |...

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Top Listing Realtor Matthew Stewart Real Estate Team | Roseville | Grani...

LIST YOUR HOME FOR SALE....

and start packing with The Matthew Stewart Real Estate Team!

"18+ years and hundreds of homes SOLD Success experience - because our clients deserve the very best!"

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4621 Hawk Hill Rd. Placerville | LAKE ARROWBEE RANCH ESTATES | MATTHEW STEWART REALTOR

This very well maintained home boasts - 2300+ square feet, single story with 3 bedrooms, 2 baths, 3 car garage and a large covered RV storage.  Private access to Lake Arrowbee to swim, fish, kayak, canoe, paddle board, BBQ, volleyball and more!  Long range views of majestic foothills make this a special 5 acres! OWNED SOLAR is less than 2 years old!  Solar, HVAC ducting and HVAC unit, and electric H2O heater are less than 2 years old!  Rood is less than 3 years old!  Don’t delay...you may lose out!

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Join Real Estate agent Matthew Stewart of the Matthew Stewart Real Estate Team with Realty World American River Properties as he goes the extra mile for his out of town buyers wanting to write an offer on a home in Del Webb Lincoln Hills.  The questions was - does it have the faulty KITEC plumbing?  How would you know if the home had the faulty KITEC plumbing or not?  Find out here!  Listen in as Matthew Stewart explains.... 

(via https://www.youtube.com/watch?v=7s4YPZJrQ-0)

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Matthew Stewart Real Estate is not all work and no play.  Join Matthew Stewart and his wife Lexi as they hike near Auburn at the confluence of the North and Middle Forks of the American River to the falls of Lake Clementine.

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ANOTHER ONE BY MATTHEW!For a private showing or to write an offer, contact Matthew Stewart (916) 718-2979

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Top Realtors from Sacramento & Reno interviewed | Matthew Stewart Real E...

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1821 E. GUM AVE. | WOODLAND CA | Matthew Stewart Real Estate Team @ Real...

ANOTHER ONE BY MATTHEW!

Wonderful Woodland 4 bed, 3 bath, 3 car! NEW carpet, NEW paint - ready to go!

"19+ years and hundreds of homes SOLD success experience you can trust!"

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Sell for 18% more $$ than with typical Realtors | Roseville | Rocklin | ...

Did you know we earn clients up to 18% more $$ than listing for sale with a typical real estate salesperson?

"18+ years and hundreds of homes SOLD success experience...because our clients deserve the very best!"

[matthew1stewart]

Impact of the 2018 Tax Law on Real Estate Owners

January 31, 2018

Matthew Stewart Real Estate | Granite Bay | Roseville | Tax Law Reform Bill

Congress has approved sweeping tax cuts and tax reform that have not been tackled by the federal government in over 30 years (since the Tax Reform Act of 1986.). The tax law, formally referred to as “The Tax Cuts and Jobs Act,” will go into effect January 1, 2018. This article has the most up-to-date information along with a summary of how the tax law provisions will affect homeowners and real estate investors who own all types of investment property. Although this article generally does not delve into tax issues not associated with real estate, there are many new tax provisions and this is essential information for anyone that owns real estate to understand.

Primary Residence Homeowners

As a result of doubling the standard deduction to $12,000 for single filers and $24,000 for married filing jointly, according to Moody’s Analytics, as many as 38 million Americans who would otherwise itemize may instead choose the higher standard deduction under the new tax plan. The doubling of the standard interest deduction, in essence, removes a previous tax incentive of moving from renting a residence to home ownership.  A likely unintended outcome will be fewer Americans choosing to become homeowners versus renting a residence solely for the tax advantages.

Any home mortgage interest debt incurred before December 15, 2017, will continue to be eligible for the home mortgage interest deduction up to $1,000,000. Any home mortgage interest debt incurred after this date will be limited to no more than $750,000 qualifying for the home mortgage interest deduction. Beginning 2018, the deduction for interest paid on a home equity line of credit (“HELOC”) will no longer be eligible for the home mortgage interest deduction. However, the tax law preserves the deduction of mortgage debt used to acquire a second home. This should have a positive impact on supporting property values in resort and vacation destinations.

State and local taxes (referred to collectively as “SALT”) can be deducted, but will no longer be unlimited as under previous tax law. The 2018 tax law will allow homeowners to deduct property taxes and either income or sales taxes with a combined limit on these deductions being limited to no more than $10,000. Top earners who live in a state with higher taxes like California, Connecticut,  Oregon, Massachusetts,  New Jersey, New York will be negatively affected the most by no longer having the previous full federal deduction available. There is the potential for home values in high state tax areas on both the West Coast and East Coast to see a reduction in property values partially due to the new capped SALT deduction at $10,000 and partially due to the new maximum $750,000 home mortgage deduction. A National Association of REALTORS™ study found there could be a drop in home prices up to 10 percent in these and other high state tax areas as a result of limitations in the tax law that won’t be as favorable as prior law for some property owners.

Both the House and Senate tax bills had originally proposed increasing the length of time a homeowner would need to live in a primary residence (from five out of eight years versus the current requirement to live in a primary residence two out of five years to qualify for the Section 121 tax exclusion). This proposed change did not become a part of the 2018 tax law. Homeowners will continue to only need to live in their primary residence 24 months in a 60 month time period to be eligible for tax exclusion up to $250,000 if filing single and up to $500,000 if married filing jointly. Property owners will still have the ability to convert a residence into a rental property or convert a rental property into a residence and qualify for tax exclusion benefits under both the primary residence Section 121 rules and also potentially qualify for tax deferral on the rental property under the Section 1031 exchange rules.

Investment Property Owners

Investment property owners will continue to be able to defer capital gains taxes using 1031 tax-deferred exchanges which have been in the tax code since 1921. No new restrictions on 1031 exchanges of real property were made in the tax law. However, the tax law repeals 1031 exchanges for all other types of property that are not real property. This means 1031 exchanges of personal property, collectibles, aircraft, franchise rights, rental cars, trucks, heavy equipment and machinery, etc will no longer be permitted beginning in 2018. There were no changes made to the capital gain tax rates. An investment property owner selling an investment property can potentially owe up to four different taxes: (1) Deprecation recapture at a rate of 25% (2) federal capital gain taxed at either 20% or 15% depending on taxable income (3) 3.8% net investment income tax (“NIIT”) when applicable and (4) the applicable state tax rate (as high as an additional 13.3% in California.)

Some investors and private equity firms will not have to reclassify “carried interest” compensation from the lower-taxed capital gains tax rate to the higher ordinary income tax rates. However, to qualify for the lower capital gains tax rate on “carried interest,” investors will now have to hold these assets for three years instead of the former one-year holding period.

Some property owners, such as farmers and ranchers and other business owners, will receive a new tax advantage with the ability to immediately write off the cost of new investments in personal property, more commonly referred to as full or immediate expensing. This new provision is part of the tax law for five years and then begins to taper off. There are significant concerns these business and property owners will face a “tax cliff” and higher taxes once the immediate expensing provision expires.

Investment property owners can continue to deduct net interest expense, but investment property owners must elect out of the new interest disallowance tax rules. The new interest limit is effective 2018 and applies to existing debt. The interest limit, and the real estate election, applies at the entity level.

The tax law continues the current depreciation rules for real estate. However, property owners opting to use the real estate exception to the interest limit must depreciate real property under slightly longer recovery periods of 40 years for nonresidential property, 30 years for residential rental property, and 20 years for qualified interior improvements.  Longer depreciation schedules can have a negative impact on the return on investment (“ROI”). Property owners will need to take into account the longer depreciation schedules if they elect to use the real estate exception to the interest limit.

The tax law creates a new tax deduction of 20% for pass-through businesses. For taxpayers with incomes above certain thresholds, the 20% deduction is limited to the greater of: 50% of the W-2 wages paid by the business or 25% of the W-2 wages paid by the business, plus 2.5% of the unadjusted basis, immediately after acquisition, of depreciable property (which includes structures, but not land). Estates and trusts are eligible for the pass-through benefit. The 20% pass-through deduction begins to phase-out beginning at $315,000 for married couples filing jointly.

Taxpayers are now restricted from deducting losses incurred in an active trade or business from wage income or portfolio income. This will apply to existing investments and becomes effective 2018.

State and local taxes paid in respect to carrying on a trade or business, or in an activity related to the production of income, continue to remain deductible. Accordingly, a rental property owner can deduct property taxes associated with a business asset, such as any type of rental property.

This article was provided by ASSET PRESERVATION - a 1031 exchange company, and is only intended to provide a brief overview of some of the tax law changes, which will affect any taxpayer who owns real estate and is not intended to provide an in-depth overview of all the tax law provisions. Every taxpayer should review their specific situation with their own tax advisor.  There is no guarantee of accuracy with the items or strategies mentioned in this article.

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FED rate hike | Matthew Stewart Real Estate | Interest rates | Granite B...

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SHOULD WE WAIT?!? Tips for sellers and buyers in the 4th quarter

With interest rates now over 4% buyers purchasing power has decreased.  For sellers this can be a good thing in that it has given buyers a sense of loss due to waiting in securing a home loan.  There is now real concern and understanding from the buyer pool that waiting will only hurt them rather than help them.  I believe some buyers got to a point of disbelief with current pricing trends escalating quickly and determined to wait it out, expecting a market correction. Sadly, the market doesn't appear to have a correction for another year or probably two.  Rents have gone up tremendously to where in most cases it is cheaper to purchase a home than to rent one.  As I mentioned in prior publications, prices have normalized from the frantic appreciation of the 1st and early 2nd quarters, with more listings on the market having helped to create a stability of supply and demand.Some are waiting for the spring time with the thinking that it is a better time to sell.  This is not necessarily the case.  Here are a FOUR REASONS why selling NOW is better than waiting until spring. SELLERS:   

1.  LESS COMPETITION - There will be less competition (others similar homes to your competing for your same buyer) by selling now versus selling in the spring when everyone else is looking to list their home.  Law of supply and demand - less homes offered means more motivated and serious buyers.​​

2.  YOUR HOME SHOWS BETTER - Homes show better in the 4th quarter.  Homes are decorated for the holidays.  Add in a crackling fire as the days get cooler, along with some apple cider or pumpkin pie smells - you have a very inviting and warm home that appeals to all the buyers senses.

3.  LOWER INTEREST RATES - Interest rates are on the rise.  Waiting six months could be very detrimental to you as buying power decreases with every tick up of interest rates.  When buyers cannot afford as much due to higher interest rates, you have less buyers available to your home.  Combine that with Spring listing rush and now you have much supply and less demand.  Not a good combo.

4.   SERIOUS BUYERS - Buyers who are out looking after work in the dark (time change is coming), in the cold, in the rain, etc. are serious about buying a home.  You do not have "Lookie Loo's" like you find in the spring selling season.  Yes, there are less buyers in the marketplace, but in reality it is not a number as low as one might think when you factor in people in spring who are looking around and masquerading as buyers but have no real intention of buying.​​ 

It is a great time to sell, but be realistic regarding your pricing.  Get greedy and your home will sit on the market, with eventual price reductions required to sell.  You will sell for less money and take longer to sell. BUYERS:  It is a very good time to buy because interest rates are still low and we are seeing more inventory for you to choose from.  By purchasing in the up coming winter months, you generally can obtain a home for percentage points less than purchasing in the busy spring season.  Work with an experienced Realtor that can access homes for sale and properly compare them against other similar offerings.  A slow fourth quarter for real estate could be just the right speed to get you into your new home. Consider taking advantage of an environment that combines

FOUR BIG ADVANTAGES:

1.  LOW INTEREST RATES - Historically speaking, current interest rates are a steal!  Yes, even those in the 4% range.  We have gotten spoiled with the artifically low rates since the crash in the late 2000's.  Keep in mind that not too long ago, an interest rate in the 6%'s was crazy low!​​

2.  LESS BUYER COMPETITION - As the 4th quarter is underway, there are less buyers as a whole in the market place which is good for you.  When you have less competition you can be more aggressive with a seller and determine their true motivation level of selling versus another buyer in the mix which emboldens the seller to negotiate less. 3.  TAX BENEFITS - With the current proposals for tax reform before legislatures it would make sense for you to lock in your tax benefits this year so you can take advantage of them when you file your tax returns come April.  By waiting until next year, you will not realize the tax benefits until filing the following year (2019).​​SMXLL 4.  LOW DOWN PAYMENT OPTIONS - Lenders have really loosened their purse strings since the crash and long winded recovery since.  Regulations have lightened up and there is more of a freedom to lend once again.  This is great for you as a buyer.  Less cash on hand needed to get into a home means you can realize home ownership and actually save money (lower interest rates by buying now rather than waiting to save an acceptable down payment when interest rates are rising and decreasing your purchasing power).

[matthew1stewart]

COLONIAL HEIGHTS, Sacramento CA | Matthew Stewart Real Estate Team

3 bed, 2 bath, garage, generous lot, end of drive privacy, close to Hwy 50, and under $300K - won’t last long!  

CONTACT MATTHEW STEWART

for private showing or to write an offer...

(916) 718-2979

www.matthewstewartrealestate.com

matthewstewartrealestate@gmail.com

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WHAT REAL ESTATE MARKET ARE WE IN???

WHAT REAL ESTATE MARKET ARE WE IN???

It is a tough real estate market for buyers. Matthew Stewart real estate has the years and hundreds of homes SOLD success to “bring you home.”

WHAT REAL ESTATE MARKET ARE WE IN???

Check out my latest video to find out. https://youtu.be/6acAUJvmpRk

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Granite Bay, Roseville, Rocklin, Lincoln, Loomis, Folsom, Sacramento, and beyond!

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