Lee Ginsburg

New California Laws and Taxes for Home Owners and Investors
February 21, 2013 ·  

New Laws for Home Owners and Investors for 2013

 

There is no change as of now to the Mortgage Interest Deduction!

Capital Gains rate remains at 15% for incomes up to $400,000 for single filers and $450,000 for joint filers. Over those limits capital gains tax increases to 20%.

As a single filer selling your primary residence you are still entitled to $250,000 of tax free gain and $500,000 for joint filers.

Estate Taxes are exempt from estate tax if the estate is valued less than $5,000,000 for single tax filers and $10,000,000 for joint filers.  Above those limits the tax rate increased to 40% from 35%.

If a portion or all of your mortgage debt was cancelled relief is extended through Dec. 31, 2013.

3.8% tax on investment income begins now.  It applies to home sales, interest, dividends, capital gains and net rents. This is a very complicated tax.  If you are selling your primary residence you are still entitled to the $250,000/$500,000 tax free. This affects only those with $200,000 of AGI or $250,000 for joint filers.

Mortgage Insurance premiums remain deductible for tax filers making less than $110,000.

15 Year Straight-line cost recovery on leasehold improvements is extended through 2013.

Energy Efficiency Tax credits remains in force through 2013.

For any of the above Tax issues, I strongly recommend speaking with your tax advisor.

 

New Rental Property Laws

AB 1679 – Allows return of security deposits directly to a bank account designated by the tenant.

AB 1925-Limits tenant relocation costs in San Francisco to $275.00 per day.

SB 1055- Prohibits a landlord from requiring Electronic Funds Transfers as the only type of payment.

SB 1229-Prohibits a landlord who allows a pet to require that the pet be declawed.

SB 1191-Requires a property owner (1-4 units) who has received a notice of default to inform a prospective tenant.

SB 1953-Prohibits a Landlord from proceeding with an eviction if the above notice compliance has not been met.

AB 2521-Increases the threshold for tenants’ abandoned property from $300.00 to $700.000 before requiring a Landlord to take additional steps to dispose of the property.

AB 1186- Eliminates frivolous suits over Building ADA Accessibility.

AB 2610- Requires a 90-day notice on month to month tenancy on foreclosed property and requires that a lease be honored to the end of its term, unless sold to a buyer who will occupy the home (some other exclusions apply)

AB 1394- Requires before Jan. 1, 2016 a smoke alarm be installed in each bedroom.  As of Jan. 1, 2013

Carbon Monoxide Detectors are required in all Single Family and Multi-family properties.

On January 16, the South San Francisco City Council unanimously rejected a proposed ordinance mandating private property inspections before the city would allow residents to sell their home.

http://samcar-updates.blogspot.com/2013/01/south-san-francisco-city-council-again.html

 

Lee Ginsburg
leesellsmore.com

Lee Ginsburg Lee Ginsburg (67 Posts)

I moved to the peninsula area of San Francisco immediately after graduating from Northeastern University in 1976 as Regional Sales Manager for Leonard Silver Mfg. a major gift importer and manufacturer. I owned and operated Designers Center a retail gift and home furnishings store in the Tanforan Shopping Center from 1980-2003. Now my son, Jared and his partner Ed are owner operators. Coming from retail customer service is #1. I do whatever necessary to make your real estate transaction as stressless, sucessful and enjoyable as possible. My retail experience helps me negotiate for my clients both buyers and sellers. In retail I negotiated with vendors, landlords, customers and employees every day. I did direct marketing, mass marketing, personal calls niche marketing and more. I use all that and more to help sell my clients homes for maximum value. My marketing experiencing also aids home buyers when coming in with a low offer oe when involved in multiple offer properties My honesty and professionalism helps the buyer and seller understand the full situation. I treat each transaction as if it is my own. When not working I enjoy socializing with friends and family. Food is always a great addition to socializing. I have a cute little Havanese white fluffy dog. My wife of 32 years treats him better than me. Hockey is my favorite sport but I enjoy basketball, baseball, and football. I do not play golf yet. Because of my skills, I have helped very successfully the Home sellers, first time home buyer, the move up buyer and the investor. The majority of buyers and sellers that I have represented were located in San Mateo, San Francisco, and Santa Clara Counties. When you hire me you will receive 100% Honesty, and 110% Effort. My friends often call me a work-a-holic. I call it living up to my obligations. And I enjoy every minute of it. I will give you all the facts; I will give you the pros and the cons. Being from New York I will give you my opinion but you will make the final decision. I understand numbers. I personally have been investing in the Bay Area for over 30 years and own investment real estate properties. I have experience in single family homes, condominiums, and multi-unit building with up to 15 units.


If you enjoyed this post, subscribe to the Author's RSS feed or the Blog's RSS Feed!

Filed Under F A Q, Important Thoughts, Real Estate Finance, Real Estate on the Web

Tags: , , , , , , , , , , ,

Print Print    |    Email Email

Comments

2 Responses to “New California Laws and Taxes for Home Owners and Investors”

  1. Larry Franzella on February 25th, 2013 12:17 pm

    Great news for property owners!

    Larry Franzella
    Prudential California Realty

  2. Brian Boisson on March 1st, 2013 11:16 am

    Hi Lee,

    Thanks for all the detailed info!

    Agents like you who stay on top of current regulations really do a great service to your clients!

    Brian Boisson
    Prudential California Realty

Leave a Reply