Sunshine & I wish you and yours a Very Happy, Healthy and Prosperous Year in all 5 Circles.
As Brian usually does, I have three tips for you.
IOV-1
This is great information for our own planning but it can be another important contact point with our clients. They should know about these 2018 tax changes so they can check with their CPA’s and make the changes needed before the first of the year.
I plan on e-mailing the information about prepaying their second installment of their property taxes (in CA especially), and paying their 4th quarter state tax payment before Jan 1 or they may lose some of that write-off. Unfortunately, they can not pre-pay any of the 2018/2019 taxes. The counties will not accept them because they have not been calculated yet.
You can also check with your own CPA and get a quote from them. It may get your CPA more business and it strengthens your information.
From NAR –
http://x.enews.realtor.org/ats/msg.aspx?sg1=d5d176ec0279da708eae709a2b97f32b
* Mortgage interest deduction. The maximum mortgage amount for households deducting their mortgage interest has been decreased to $750,000 from the current $1 million limit. The House bill sought a reduction to $500,000.
* State and local tax deductions. Both property taxes and state and local income taxes remain deductible, although with a combined limit of $10,000. Both the House and Senate bills sought to eliminate the state and local income tax deduction altogether.
* Pass-through entities. The bill significantly reduces the effective rate of tax on business income earned by independent contractors and income received from pass-through entities. This change will lower the taxes of many real estate professionals. (think about a S Corp or LLC)
From the First Tuesday newsletter.
Under the 2017 tax code, all property and state income taxes are federally deductible. Under the 2018 plan, these taxes will be deductible up to $10,000 per tax return – the same threshold applies to single and joint filers.
Therefore, waiting until 2018 to pay 2017 property taxes and state and local income taxes means you will need to conform to the 2018 limitations when you pay 2018 taxes (since you made the 2017 tax payments in 2018). But those who pay 2017 property taxes before the 2018 tax rules go into effect will essentially free up room against the new $10,000 limit in deductible property and income taxes, making the most of your 2018 deductions.
Further, real estate professionals who make quarterly tax payments to the Internal Revenue Service (IRS) ought to make their fourth quarter tax payment before January 1 to make the stretch their 2018 deductions. http://journal.firsttuesday.us/pay-your-2017-property-taxes-in-2017-to-avoid-2018-rules/61100
From Barbara Betts on Facebook…
Soooooo had a little chat with my CPA. For those of us, everyone in this group, who does a ton of marketing via parties and events. Heads up new tax plan puts meals and entertainment for business at 0% write off! Yes I said ZERO!
I know, because I have talked to a lot of you, that your CPAs all view this differently and some of them allow you to write it off as “promotional” and “advertising” but some advise differently and as mine says and warns don’t mess with these deductions as she has seen too many of an audit go sideways because if there is food or alcohol involved the IRS deems it entertainment. So be careful, plan accordingly and talk to your CPAs!!!! My CPAs advice as she does many audits for other companies and of course handles clients who get audited, and she says you will LOSE!
ShaSha Logadi: Wow, thanks for the information, it was minimal & limited before, which is why my accountant always put it under “promotional”. Never once questioned…..then again, did the “S” Corp per Mr. Buffini’s recommendation.
Larry Underhill: Thanks, Barbara Betts! I’m hoping the solution is as simple as redefining as you mentioned above. Another thought: If we can tie events to raising funds for a charity of our choice, maybe the entire event can be legally classified as a charitable contribution. Gotta check with my CPA. Deductible or not, our systems are the best way to do real estate!
Kelli Vanevenhoven: We are an S Corp and one thing you can do is have an event thrown by “someone else” and they sell you “advertising” to “sponsor” the party at a flat costs and it is Promotional. Plus for all larger events, we always do a raffle or door prizes where the proceeds go to a local charity. For our Christmas lunch we donated $2,500 to Haynes Boys Home.
Tips for Writing Off Your HolidayClient Parties
http://www.foxbusiness.com/features/2013/11/22/tips-for-writing-off-your-holiday-party.html
Several others on the thread chimed in with the fact that it is not about the taxes, it is nurturing the relationships. Nobody said they were stopping their parties because of taxes.
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IOV 2
Brian has promoted Darren Hardy and his books from the stage and in his Podcasts. Here is some great info on planning.
Free Video Tutorial & download – Success Mentor Darren Hardy reveals the fascinating story of his chance encounter with “Connie”, the 94-year old multi-billionaire who gave him his “Sacred Focus System”. Darren also walks you through step-by-step on how you too can use the Sunday Planner to rock your week, every week!
dh.darrenhardy.com Daily Mentoring
http://dh.darrenhardy.com/sunday-planning-system
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IOV 3
Access your PC remotely using any browser.
Businesses all over the world have been using VPNs (Virtual Private Networks) so employees can securely and remotely log into their work computers. Let’s say you’re at home and forgot something important on your work computer, no worries. Just log into your computer’s IP address using the company’s VPN and you have full access. https://www.komando.com/downloads/422893/access-your-pc-remotely-using-any-browser There is also an app in Windows 10 that my computer geek installed.
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Here is a Bonus IOV
Adele’s Hello – done for Realtors https://youtu.be/IOLtRTPi7LA
Anna Buffini’s version – https://youtu.be/Qf8M8-QbcY0
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San Diego County covers an area of 4,526 square miles making it larger than Delaware or Rhode Island and 82% the size of the state of Connecticut. With a 2010 population of 3,095,313, it is the fifth most-populous county in the United States giving it a population greater than 21 states.
I would like to tell you that I can cover the whole county but I can not. However, I do know many of the top agents in areas I do not cover as well. I would be glad to give you a name or two for other areas.
Here is a map of San Diego County and where I can best serve your referrals.
