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Serving South Florida

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For over 40 years

Florida Real Estate

Tax Deductions to Take in 2017 Before They Disappear

As you’ve no doubt heard, the U.S. tax code got an overhaul—so what does that mean for the 2017 return you’re filing right about now? It means that this is your last chance to take advantage of tax deductions from the old tax code.
Here is a rundown of four major tax breaks that are disappearing after this filing year, and how to take full advantage of them for 2017.
Home Office Deduction
With the increasing popularity of telecommuting and working from home, the home office tax deduction is one that many people opt to take. If you’re full-time self-employed, this deduction will continue in 2018. But for all you office workers who work in your “home office” on the occasional Friday? The gig is up.
“In 2018, for non-self-employed people, the home office deduction is going away entirely,” says Eric Bronnenkant, CPA, CFP, and Betterment’s head of tax. If you are a W-2 employee this is the last year you will be able to take advantage of the home office deduction. The home office deduction falls under what’s called “miscellaneous deductions,” and includes business expenses that are not reimbursed by your employer. Miscellaneous deductions can’t exceed 2% of your adjusted gross income, but if you meet the requirements, you can take the deduction in 2017.
Unlimited property tax
One of the biggest changes for homeowners in the new tax bill is the cap on deducting property taxes.
In the past all property taxes were tax-deductible. Yet going forward in 2018, the maximum you can deduct is $10,000, and that includes state and local income tax, property tax, and sales tax.
That means if you pay more than $10,000 a year between your state and local income taxes, property tax, and sales tax, anything exceeding that amount is no longer deductible. For your 2017 return, make sure every penny you pay in property taxes is deducted, along with your state and local taxes—or, if you’re in a state without income tax, a portion of the sales tax you paid.
Moving expenses
If you moved in 2017, lucky you: You’re the last to take advantage of the ability to deduct your moving expenses, provided your move meets certain requirements (e.g., your new job is at least 50 miles farther away than your old job was from your old home).”Previously, people could deduct all the expenses associated with [relocation] moving,” says Priya Mishra, the managing attorney at Top Tax Defenders. “This will now be gone.”
The only exception going forward, according Patrick Leddy, a tax partner at Farmand, Farmand, and Farmand LLP, will be members of the armed forces. So if work took you to a new locale last year, don’t forget to dig up your receipts and deduct those moving expenses.
Interest on a home equity loan for non-home improvement purposes
A home equity loan is money you borrow using your home as collateral. This “second mortgage” (because it’s in addition to your original home loan) often takes the form of a home equity loan or home equity line of credit (HELOC). Traditionally, the interest on these loans could be deducted up to $100,000 for married joint filers and $50,000 for individuals. The best part? You could use that money to pay for anything—college tuition, a wedding, you name it.
But starting in 2018, home equity loan interest is deductible only if it’s used for one purpose: to “buy, build, or improve” your home, according to the IRS. So if you’re dying to update your kitchen or add a half-bath, you’ll get a tax break from Uncle Sam. But if you want to tap your home equity to go to grad school, well, that’s on you.
More bad news: Unlike the mortgage interest deduction where loans taken before 2018 could be grandfathered into the old laws, old home equity loans have no such exemption. People with existing HELOC debt take the hit just like homeowners applying for one now.
But there is one small loophole: To reclaim this deduction, you could refinance your second mortgage and your first into a new mortgage that lumps together both debts. This essentially turns your HELOC into a regular mortgage, which means that you can deduct that interest. Just remember that refinancing can be costly, and that this new loan will be subject to the new, smaller limits on deducting mortgage interest. In loans originating on or before Dec. 14, 2017, that limit is $1 million. On loans made after that point, the cap is $750,000.
Will I owe more taxes next year?
Worried about losing all of these deductions? Though the new tax plan is drastically changing how most people will file their taxes, it doesn’t necessarily mean that you will end up owing more. Limits on mortgage interest deductions may be dropping, but so are the tax rates for most income groups. While the amount of property tax you can deduct is shrinking, the standard deduction is growing. So, it may all balance out.
The most important thing to do, after making sure you’ve grabbed all of the tax deductions you can for 2017, is to sit down with your accountant or financial advisor and size up where the new tax laws leave you.That will give you plenty of time to prepare for 2018 taxes and beyond.

Housing Starts Heating Up!

New Construction Assistance
Housing Starts and consumer inflation heated up in January, but Retail Sales and Existing Home Sales stayed on the chilly side.

The Commerce Department reported that January Housing Starts jumped 9.7 percent from December to an annual rate of 1.326 million units. This was the highest level since October 2016 and up 7.3 percent from January 2017. Single-family starts, which account for the largest share of the market, rose 3.7 percent from December while multi-dwelling starts with five or more units surged 19.7 percent. Housing Starts rose in the Northeast, South and West but declined in the Midwest.

Building Permits, a sign of future construction, rose 7.4 percent from December to an annual rate of 1.396 million units. With many buyers facing inventory shortages across much of the country, this strong report regarding new home construction is a welcome sign!

The National Association of REALTORS® reported that January Existing Home Sales declined 3.2 percent from December to an annual rate of 5.38 million units. Sales were down 4.8 percent from a year ago, the largest decline since August 2014. Low inventories of homes for sale were indeed a thorn in the side of would-be buyers with just a 3.4-month supply available at the current sales pace. A 6-month supply is considered healthy.

Retail Sales also disappointed in January, as the Commerce Department reported a 0.3 percent decrease. December’s reading was also revised downward to 0 percent from a 0.4 percent increase. The key highlight was that consumer spending wasn’t strong in recent months, and this could impact GDP expectations.

Consumer inflation edged higher in January, with an important component jumping to a 12-month high! The Consumer Price Index (CPI) rose 0.5 percent in January, just above expectations due to higher gasoline prices, the Labor Department reported. Core CPI, which strips out volatile food and energy prices, rose 0.3 percent from December. This was the largest increase in a year, boosted by rising rents.

Inflation reduces the value of fixed investments like Mortgage Bonds. This means signs of inflation can hurt Mortgage Bonds and impact the home loan rates tied to them, which is a trend we’ve seen through much of this year. Stocks have also reacted negatively to hints that inflation was on the rise because inflation brings higher rates and higher rates hurt corporate borrowing. Stocks even entered correction territory in early February, meaning a 10 percent decline from recent highs.

How to Declutter for the New Year!

The idea of living a simplified, uncluttered life with less stuff sounds attractive to many. They have considered the benefits of owning fewer possessions: less to clean, less debt, less to organize, less stress, more money and energy for their greatest passions. They are ready to declutter but some get quickly tripped up by the very next question… where in the world do I begin?

Many begin to feel overwhelmed, anxious, and defeated around the idea of decluttering their homes. That’s too bad. The decluttering journey doesn’t need to be as painful as some make it out to be. In fact, there are a variety of people who have come up with some pretty fun, creative ways to get started.

Below are three decluttering philosophies to help you clear out and clean up your home and life.

Feng Shui — The driving principle behind this Eastern philosophy is to create harmony and balance between an individual and his or her environment. Good feng shui invites prosperity and brings an overall sense of well-being into your space. From the front door to the bathroom, small changes to color, decor and furniture arrangement are believed to promote health, wealth, happiness and good energy.

The KonMari Method — Famed Japanese organizer Marie Kondo promises that you can drastically improve your lie by tidying up.  In her book, “The Life-Changing Magic of Tidying Up: The Japanese Art of Decluttering and Organizing,” she explains a two-step approach. First, you take all of your possessions and lay them out categorically (clothes first and sentimental pieces last). Then, you hold each item in your hand and decide whether or not it brings you joy. If it doesn’t, you let it go.

The 90/90 Rule (Minimalism) — This home organization concept also relies on a two-part process. When implementing the 90/90 rule, assess each belonging based on two simple questions: Have I used it within the last 90 days, and will I use it in the next 90 days? If not, it’s time to say goodbye.

While some of these techniques require a big commitment of time, energy and emotional “letting go”, it may require starting with small steps before you fully embrace the concept of minimalism, if at all.

Consider this list of 10 creative ways to declutter your home:

Give away one item each day.  By giving away one item at a time and donating it to someone less fortunate you can declutter and enrich your life.

Fill one trash bag. Early in your journey towards simplicity, a favorite decluttering techniques is to grab a simple large trash bag and see how quickly you can fill it. This could also be used to fill a bag for a needy charity or just toss in the trash.

Try the Oprah Winfrey Hanger Experiment:  While this idea didn’t originate with Oprah, she was the one to help give it notoriety. To identify wardrobe pieces to clear out, hang all your clothes with the hangers in the reverse direction. After you wear an item, return it to the closet with the hanger facing the correct direction. After six months, you’ll have a clear picture of which clothes you can easily discard. This experiment could also be applied to a number of clutter areas in your home (cleaners, toys, linens, tools, hobbies and craft items).

Take the 12-12-12 Challenge. A simple task of locating 12 items to throw away, 12 items to donate, and 12 items to be returned to their proper home can be a really fun and exciting way to quickly organize 36 things in your house. This challenge actually became a quick competition … and your kids don’t have to be too old to participate as well.

9. Use your imagination. Psychology Today recommends using your imagination to help declutter objects that may seem difficult to remove. Try asking yourself unique questions like, “If I was just buying this now, how much would I pay?” These creative techniques may prove to be very helpful for some with difficulties removing unneeded clutter.

No matter what you choose to help you get started – whether it be one of these ten or one of countless others – the goal is to take your first step with excitement behind it. There is a beautiful world of freedom and fresh breath hiding behind that clutter. How you remove it is up to you.

Ultimately, there’s no shortage of ways to declutter and simplify your life. The important thing is to be willing to let go of the items that no longer serve you and make way for new experiences.

Buying a generator: Tips to know before you make a purchase

After Hurricane Irma, much of Florida lost power. And during Hurricane Maria, all of Puerto Rico is in the dark.
The one-two punch of storms reminded Floridians of the importance of owning a generator. If you’re shopping for a power source, here are factors to consider:

How much do you want to spend?

Stand-by generators can power your whole house and usually run on natural gas or propane. They typically cost $5,000 to $10,000, according to Consumer Reports. And you’ll need to start planning the installation months in advance. Most homeowners opt for portable generators, which usually won’t run central AC and cost $400 to $1,000. (However, Consumer Reports’ top-rated portable generator is a Honda that goes for $3,999.)

What do you want to power?

If you want to run a fridge, a fan and a few lights, a small portable generator will do the job. If you hope to keep living as if the hurricane never hit, you’ll need a stationary generator. And if you’re willing to rough it but would like to run a window AC unit, you’ll want to make sure before the storm that your generator has enough juice to run your AC. Another caveat: Cheap generators can produce power surges that will fry expensive electronics.

How much noise can you stand?

Or, put another way, how many decibels do you want to bombard your neighbors with? In general, the more expensive the generator, the quieter it is.

Technology is getting better.

For decades, Floridians have been buying portable generators that were the mechanical equivalent of muscle cars, says Paul Hope of Consumer Reports. Now, though, manufacturers are designing fuel-injected engines for generators. These models are quieter, more fuel-efficient and emit less carbon monoxide. They’re also more expensive.

The smart move, says Hope, is to shop for a generator between storms or after hurricane season. That gives you time to research what you need — and to hire an electrician to install a transfer switch or interlock device that lets the generator power your house.

Equifax Breach: What To Do Now?

As data breaches go, this is one of the most extensive.

What steps should you take now in response to the massive Equifax data breach?

 

 

 

 

 

 

The sensitive information of almost half of all Americans has been compromised, all because the company safeguarding that information reportedly failed to upgrade and update software despite being warned to do so.

To make it worse, company execs sold millions in stock after the breach, but before they told the public what had happened. The company continued to sell consumers like you pricey identity protection packages, even though they knew they were guilty of exposing that same consumer data to hackers. And it seems they suffered another hack earlier in the year but failed to notify us of the potential damage.

No wonder consumers feel helpless as they try to protect themselves from identity fraud.

Here’s what you should you be doing now in response to the Equifax breach.

Read up

The Federal Trade Commission (FTC) has put together some very helpful and comprehensive background information on the Equifax breach, chock full of consumer tips. You can read that guidance here.

Do a test

Visit the Equifax website www.equifaxsecurity2017.com to see if your personal data has been exposed.

Here’s the how-to’s from the FTC: “Click on the “Potential Impact” tab and enter your last name and the last six digits of your Social Security number. Your Social Security number is sensitive information, so make sure you’re on a secure computer and an encrypted network connection any time you enter it. The site will tell you if you’ve been affected by this breach.”

Monitor your credit

If you’re affected, sign up for the year of free credit monitoring that Equifax is offering. Even if you are not affected, you should monitor your credit to make sure no one else is taking out loans in your name. (Many big-name credit card companies offer free credit monitoring as a cardholder perk. Use it).

Once a year, you can get a free copy of your credit report from each of the three major bureaus (Experian®, Equifax®, TransUnion®) at annualcreditreport.com.

Here’s some additional advice from credit card lender Capital One: “It’s important to review all three reports—some lenders don’t report to every bureau, so they may have different information. Read through each report carefully and make sure you recognize the accounts. If something strange turns up, start by contacting the lender to investigate. For more info, take a look at this article on checking your credit report.”

Practice safe financial habits

Keep a close eye on your finances by reconciling bank accounts and credit card statements monthly, shred financial papers, change passwords often, use different passwords for different financial accounts, be careful what you click on, and practice safe computer habits.

It’s not a bad idea to enroll in purchase notification programs with your bank or credit card providers. They’ll alert you by text or email if there are large or unusual purchases in your accounts. Some even let you lock or unlock your card via mobile app. (I’ve got some funny stories to share about the purchase alerts I’ve gotten for my college age kids. Definitely TMI).

Fraud alerts and freezes

There’s been a lot of talk about fraud alerts and freezes.  Putting afraud alert on your credit reports lets potential lenders know what’s going on, explains Capital One, and alerts them to take extra steps to verify your identity before issuing credit in your name.

According to Capital One, “you only need to notify one of the three credit reporting companies to put a fraud alert on your credit report and they’re required to tell the other two companies. Make sure you keep copies of all letters and renew the alert every 90 days until the issue is resolved. You can also check out the Federal Trade Commission’s website for more information.”

A credit freeze provides more protection but is time-consuming. A freeze restricts access to your credit report. Without reviewing that info, few lenders will  open a new account for you. “This makes it harder for potential thieves to apply for credit or open accounts in your name,” says Capital One. However, freezing your accounts may involve service charges, takes time on the phone or online, and can get in your way the day you want to buy a new car or make some other consumer purchase using credit.  To learn more about credit freezes, click here.

7 Legal Tasks to Do When You Move

The Internet is full of checklists and resources to use if you are planning to move. There are packing timelines. There are lists of packing supplies. There are even directions on how to pack boxes.

But moving is much more than purging and organizing your personal affects. There are legal tasks you need to take care of too.

Here are 5 legal tasks to complete when you move:

  1. Read your leases: Review your current lease to make sure you will not get into trouble for leaving. You are responsible for paying rent for the entire lease term, even if you have vacated the premises. If you need to move before the lease term is expired, read the lease to see if you can sublet or assign to a new tenant. Check your new lease for these terms before you sign it. And make sure you complete these tasks to protect your rights as a tenant.
  2. Protect yourself with insurance: Thoroughly read any contract with a moving company before you sign it for delivery times and insurance coverage. Moving companies are required to provide some moving insurance. But you may wish to purchase more. You should also consider renter’s insurance or homeowner’s insurance.
  1. Notify your creditors: Update your address with all of your creditors to ensure you do not miss a payment. And be sure to complete a change of address with the United States Postal Service and request that your mail be forwarded to your new address.
  2. Keep receipts if you are relocating for a job: You may be able to write off your expenses if you are required to relocate more than 50 miles due to a job change. Review the Internal Revenue Service’s requirements to qualify for this tax break.
  3. Update your estate plan: State laws governing wills and estate plans differ. If you move to a different state, update your estate plan.
  4. Register your vehicles:If you’ve moved states, provinces or countries, register your car and get a new driver’s license, tags and/or plates for your vehicles. Check your local DMV for more information.
  5. Register to VoteAgain, if you’ve moved cities, it’s important to make sure you’re on the voter’s registration for your local area. You should also make sure you’ve updated all important files and documents with your new address.

 

Dogs Love the Beach Too!

When reclining on South Florida’s sandy beaches there’s no need to feel that tug of guilt about your best friend back home.   Your dog could be right here with you, frolicking in the blue-green waters of the Atlantic, or fetching a ball or Frisbee on one of South Florida’s dog-friendly beaches.

Remember to always have plenty of water on hand for your pets to avoid dehydration, which can sneak up on humans and dogs alike in Florida’s heat all year round. Seek out frequent breaks for your dogs in the shade while visiting dog-friendly beaches in Florida, and consult with your pet’s veterinarian about special sunscreen for dogs. Bring plastic bags to clean up after your pet and leave the beach like you found it and don’t forget to test the temperature of the sand.  If it is too hot for you to walk on it is too hot for your best friend too.

The 80-mile stretch from Jupiter to Miami offers a number dog beaches for you and your pooch to explore. If your dog is friendly and likes to play in the sun and sand, certain beaches and parks in this South Florida region provide designated play areas just for dogs. Each location maintains rules about conduct and charges a nominal access fee; Some municipalities allow visitors to purchase beach passes online or on location. Bring your dog’s current rabies certificate with you to show as needed.

Palm Beach County Dog Beaches

Starting in the North part of the county is Jupiter’s Off Leash Beach. Dogs are welcome on a 2.5 mile stretch of beach on this coastline at A1A and Marcinski Road in northern Palm Beach County. The cost is free and so is parking along the beach. Free dog bags are provided by Friends of Jupiter Beach.

Bark Beach on Spanish River Beach, in Boca Raton is open on Friday’s, Saturday and Sundays from 7-9am and 3pm to sunset from Nov-March and from 5pm to sunset from March to Nov. The dog beach is located between the lifeguard towers 18 and 20 at 3001 N. Ocean Blvd. You will need a valid parking permit if you are a resident of Boca Raton or pay the daily parking fee.

Broward County Dog Beaches

Fort Lauderdale Canine Beach at Sunrise Boulevard at A1Ainvites dogs of all sizes and breeds to its 100-yard beach open Fridays, Saturdays and Sundays from 3 p.m. to 7 p.m. in winter and 5 p.m. to 9 p.m. in summer for an annual fee. When you visit the canine beach, your dog must be leashed. You also must bring waste bags to pick up after your dog, and you must have a permit. You can pick up a permit to let your dog play in the unfenced area from the City of Fort Lauderdale (1350 West Broward Boulevard; 954-828-7275) with proof of current vaccines including rabies.

Dog Beach of Hollywood welcomes socialized dogs to its sandy dunes, equipped with its own park ranger. The beach strongly enforces picking up after your dog to ensure that the area remains sanitary. Open Fridays, Saturdays and Sundays from 3 p.m. to 7 p.m., November through March and 4 p.m. to 8 p.m., April through October, Dog Beach of Hollywood charges a fee at a daily or annual rate. All dogs must have current vaccines. You can purchase a beach pass on site or at Hollywood Parks Recreational and Cultural Arts Office (no website; 1405 South 28th Avenue; 954-921-3404).

Miami-Dade Dog Beach

The only dog beach in the City of Miami Beach is the Miami Bark Beach, this dog beach sits adjacent to North Shore Open Space Park, which is also pet-friendly and a great place for a stroll after a swim in the ocean. There are also plenty of outdoor pet-friendly restaurants nearby. At the beach, dogs must be on a leash except in the designated area. Proof of your dog’s vaccinations is required.

 

Flood insurance: Facts and Fiction

If a flood swamps your home, will insurance cover the damage? That depends on the value of your home, the amount of water damage and whether you have a flood insurance policy.

Let’s look at some persistent myths about flood insurance.

Myth: You must live in a flood plain to get coverage.

If you live in a flood plain, your mortgage company will likely require you to buy flood insurance. But you can purchase it even if you don’t live within a flood zone. “Almost anybody can get flood insurance who wants flood insurance,” says Chris Hackett, director of personal lines for the Property Casualty Insurers Association of America. The price through the federal flood insurance program is based on standardized rates and depends on the home’s value and whether or not it’s in a flood plain.

Myth: Flood insurance covers everything.

When it comes to the physical structure of your house, federal flood insurance policies top out at $250,000. If you have a $300,000 house that’s a total loss because of a flood, the most you can recoup through the program is $250,000 to cover the structure itself. For your personal possessions, the cap is $100,000 under the federal program.

 

Myth: My homeowners policy covers floods.

“Unfortunately, a lot of folks may be under the impression that their standard homeowners policy might cover flood damage,” Hackett says. But the standard policy does not! The typical home insurance policy doesn’t cover earthquakes or floods. So a homeowner wanting coverage for either of those disasters will need to pick up separate, specific coverage against those types of disasters.

 

Myth: Water damage is water damage. When it comes to your insurance, not all water damage is the same.

If there’s a storm and your “roof comes off and water comes through, that would be covered under your homeowners policy,” Hackett says. “Versus a flood situation where the water is rising from an over flowing riverbank overflows or an unnatural amount of rain that is rising from the street.

Myth: Flood maps don’t change.

Flood plains (and flood plain maps) change and evolve. Just because you weren’t in a flood plain when you bought your home a few years ago doesn’t mean you’re not in one now.

For more information, visit FloodSmart.gov.

 

Things Not To Forget Before You Move

Spring Cleaning Guide from Optima Properties

Spring checklist

Now that the clocks have SPRUNG AHEAD it is a good time to think about Spring Home Maintenance.  As current homeowners you need to keep your home systems and property in good condition so that the small maintenance issues do not become major and expensive repair items.

 

Do not read this list and become overwhelmed, it is an extensive list meant to cover basic home maintenance. Not all of these maintenance items will apply to all homes.  This is a comprehensive guideline designed for homes in the South as well as Northern climates.

Spring cleaning is a way to demonstrate pride in ownership (or rentership).  A home and its contents are investments; money spent on something you really love or really need (ideally both).  When you take the time to clean thoroughly and properly, you can maintain and prolong the life of the item or finish for years.  Further, it means you live in a cleaner and healthier home; less dust, dust mites, allergens, odors, and dirt.

Always start from the top and work your way down.  Think about it like this: dust falls down (like rain or snow) so if you start at the top, you’ll never have to re-clean a surface (which is a time waster).  It doesn’t make sense to clean the floors first and then dust the tabletops; you’ll just have to clean the floors again.  Use gravity to your benefit and always work from top to bottom.  It also helps you not miss anything!

General Spring Cleaning Tasks:

These are a list of some of the things that need to be done around the house, and spring is a great time to do them.  So often we don’t remember to do them, so let this be your wake-up call!

 

 

 

 

Tests and replacements:

Test smoke alarm

Test carbon monoxide alarm

Check flashlight batteries

Check fire extinguishers

Change air filters

Check all window screens for tears and repair or replace as required

 

 

 

Overall Spring Cleaning Chores:

Dust crown molding and baseboards and clean scuff marks

Dust ceiling corners

Dust/wash light fixtures and lamps

Dust ceiling fans

Wipe down doors and walls (Swiffer works great for removing all the dust)

Touch up paint

Vacuum or wash/dry clean window curtains and bedding

Wash or dust window blinds

Wash windows and screens inside and out

Dust books and bookcases

Polish wood furniture

Wipe down and vacuum furniture (clean the base and under cushions)

Condition leather furniture

Remove stains from upholstered furniture

Vacuum and wash lampshades

Deep clean hardwood, tile, linoleum, and carpet flooring

Shampoo carpet (DIY or schedule a professional)

Remove area rugs to shake out, then vacuum, then clean under them

Remove fingerprints and dirt from light switches and door handles

Clean air vents

Dust around and BEHIND mirrors, picture frames, and wall hangings

Schedule chimney sweep

Schedule termite or pest control maintenance

Spring Clean Outside:

Sweep, power wash, and/or stain deck

Power spray siding

Touch up paint trim, wood, doors, and shutters

Oil hurricane shutters

Power wash garage door and eaves of house

Clean outside door frames

Wipe away cobwebs

Shake out entry mat

Clean grill

Clean and repair gutters

Replace broken bricks, wood, or stone

Clean outdoor light fixtures

Clean outside patio furniture

Trim trees, bushes and shrubbery

Check and repair sprinklers

Inspect roof shingles

Clean outdoor and indoor trash cans

Clean out garage and sweep