Tax tips for the self-employed

 

NEW YORK – Feb. 26, 2015 – One of the biggest perks of the job is being your own boss. But you have to do a lot of other things to run a business, including playing the role of tax accountant.

The Internal Revenue Service has made it easier to unlock valuable tax deductions for self-employed Americans.

Jeff Reeves, author of "The Frugal Investor's Guide to Finding Great Stocks," has nine tips that can help at tax time:

1. Tap the home-office deductionMany self-employed people work out of their homes, and a home-office deduction can unlock big tax breaks – including writing off a percentage of your utilities or property taxes. Thankfully, "it is not a red flag for an IRS audit," says Monica Rebella, a certified public accountant based in California. "In fact, the IRS has come up with a simplified method" that allows you to write off $5 per square foot of office space up to 300 square feet. But, Rebella warns, just make sure your space is exclusively used as an office.

2. If it's business-related, then it's deductible
If you're a Web programmer, your laptop is a qualified business expense. But don't overlook everything that goes into running your business, including subscriptions to trade publications or even fruit baskets sent to your clients. Rebella said gifts have a maximum of $25 per person per year. The IRS describes deductible business expenses as "ordinary and necessary," so don't be afraid to claim an expense if it was directly related to the operation of your business – as long as you have the receipt.

3. Cash counts
"I find that business owners pay for business expenses with cash but forget or lose the receipts and miss thousands of dollars in tax deductions," Rebella said. She points to business lunches, tolls between appointments and postage as examples of qualified expenses you can deduct on your business taxes. If you lost the receipts, unfortunately the ship has sailed on your 2014 deductions, she said. But if that's the case, make sure you put an envelope in your glove compartment ASAP as a catchall for this year's receipts so you don't miss out next year.

4. It pays to save
Joseph Heider, president of Cirrus Wealth Management in Cleveland, notes that saving for retirement is tax-deductible, even in 2015. "If the small business has a retirement plan, they may deduct contributions" until they file their returns. Through options such as a Simplified Employee Pension plan, small-business owners and the self-employed can save up to 25 percent of net earnings and then deduct that amount on their taxes.

5. Name your kids as employees
Do you pay your son a few bucks to help with filing documents, or does your daughter run the lawnmower for your landscaping biz? You may want to officially put them on your payroll, because those expenses could bring down your overall tax burden as a business.

6. Be diligent about income
One of the biggest red flags to trigger an IRS audit is if a contractor or customer reports a transaction with you but you fail to do the same. It's crucial you keep accurate records of your true income and track down the relevant 1099s. And don't forget to check your math.

7. Deduct your health insurance
Being self-employed means no corporate entity providing cushy benefits. But the good news is that you are eligible to deduct the full cost of health insurance in many cases on your personal tax returns. This also goes for any employees for whom you pay insurance.

8. Don't overlook bad debt
Have you finally given up on chasing down a customer who skipped out on their bill? Well, while the lost revenue for your home business is obviously a bad thing, the good news is that the IRS allows you to deduct a bad business debt in the year it becomes worthless. As long as you have documentation, including a copy of the original transaction and any letters or e-mails you sent in an attempt to collect, Uncle Sam will help make up for your lost business with a tax break.

9. Confused? Then write off tax preparation
If you're intimidated by the minutiae of tax law, or if you just want to go to a professional to see what other deductions you're eligible for, you're in luck. The IRS allows tax-preparation expenses, as well as other professional legal and accounting services, to be deducted as a qualified business expense. So don't wing it – because there's no reason not to get the help you need when preparing your 2014 taxes.

Copyright 2015 USA TODAY  

4Q U.S. home prices rise higher than expected

 

WASHINGTON – Feb. 26, 2015 – U.S. house prices rose 1.4 percent in the fourth quarter of 2014 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI).

December prices

According to the HPI for December, prices rose 0.8 percent. Analysts generally predicted a smaller 0.5% increase.

The December increase follows a similar 0.8 percent increased in November.

Fourth quarter 2014

It's the HPI's fourteenth consecutive quarterly price increase in the purchase-only, seasonally adjusted index. In a year-to-year comparison of housing prices, the fourth quarter saw a 4.9 percent increase.

The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. Since it looks at repeat sales of the same homes over time, it's generally considered an accurate gauge of U.S. home values.

"Contrary to prior indications of a possible slowdown, home price appreciation in the fourth quarter was relatively strong," says FHFA Principal Economist Andrew Leventis.

"The key drivers of appreciation over the last few years – low inventories of homes available for sale and improvement in labor markets – likely played a role in driving up prices during the quarter," Leventis says.

Other findings

• Between the fourth quarter of 2013 and the fourth quarter of 2014, the seasonally adjusted, purchase-only HPI rose in 48 states and the District of Columbia.
• Of the nine census divisions, the Mountain division saw the strongest increase in the fourth quarter, posting a 1.8 percent quarterly increase and a 5.5 percent increase since last year. House price appreciation was weakest in the New England division, where prices fell .03 percent.
• The monthly seasonally adjusted, purchase-only index for the U.S. has increased for 23 of the last 24 months (November 2013 had a decrease).

© 2015 Florida Realtors®  

Original Post:
http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=320062

E2 Visa Reform

Pinellas Congressman's Bill Would Ease Legal Immigrants' Woes

Reprinted: source 

Posted By KATE BRADSHAW on Wed, Feb 18, 2015 at 8:15 PM

The debate over how to treat millions of undocumented immigrants is as headline-grabbing as it is polarizing.

Standing in its shadow is U.S. policy on the people who came here legally, who followed a meticulous bureaucratic process and have spent tens of thousands of dollars to be here only to routinely face getting kicked out of the country.

On Wednesday morning at a crowded Italian restaurant on 66th Street in Pinellas Park, U.S. Rep. David Jolly (R-Indian Shores) announced he is filing a bill that would allow certain immigrants who are here legally to stay after a certain amount of time.

Jolly's bill pertains to those working in the U.S. under an E-2 Investor Visa. That kind of visa requires recipients to invest in the U.S. economy, typically by opening a business and employing people, but they have to reapply for that visa every couple of years, and often have to go back to their home country during the process.

“We see everyday the debate over immigration reform and it's focused on only those who are here without documentation; only those who have come here illegally," Jolly told the crowd, which largely comprised people who came to the U.S. under an E-2. "And while we must address that reform as well, and I believe we do, I think we have to reform, we can't possibly begin to reform the immigration system that involves only those who are here without documentation without recognizing that our legal immigration system has failed, and has failed each and every one of you.”

Jolly's bill, he which he said he plans on filing in the next week or so, would put E-2 visa holders on a fast track to citizenship once they are here legally for 10 years. It would also allow their children, who are currently vulnerable for deportation once they turn 21 (unless they get an E-2 or student visa), to be covered under their parents' visas through age 26.

It would help people like Sesto Ramadori, owner of Da Sesto Italiano Ristorante e Vino, the restaurant where Wednesday's event took place. Originally from the Marche region of Italy, Ramadori has been in the U.S. (by way of Canada, where he has citizenship) for 18 years. He just underwent the E-2 visa application process — again — last summer.

"We went through the all the paperwork and filed an application," he said. "It's not just the matter of an extension. You literally have to do all the paperwork to show that your business is viable and that you're employing people... It's a lot of money, it's a lot of uncertainty.”
St. Petersburg immigration lawyer Andy Strickland, Ramadori's attorney, said the process is quite costly.

“We're looking at $4,000 to $5,000,” Strickland said. “Plus, if they decide to go abroad for their visa instead of extending their status here with the (U.S. Citizen and Immigration Services), if they don't do that, then they have to go abroad and get a visa, they have expenses with that as well.”

To him, Jolly's bill makes sense.

“Why chase people away who came here the right way, who are doing things the right way, who are creating jobs for U.S. citizens?" he said. "I think we should reward people who are doing things the right way and give them an opportunity to keep doing things the right way.”
Jolly said while there are some people on the extreme opposition side of the immigration spectrum who don't want any new citizens not born on American soil, he thinks the law is so common-sense that it ought to easily pass.

“I think people in Congress will recognize the importance of addressing legal immigration at the same time we're having a national debate about illegal immigration," he said. "It's only fair that we do so and it's right that we do so.”

He added that the bigger challenge might be at the procedural level; passing a small piece of legislation to reform part of the U.S.'s immigration policy, given the push for comprehensive immigration reform (CIR), and that including the bill as part of a bigger CIR proposal is something he is willing to talk about.

“Whenever you have comprehensive immigration reform, it is hard to pass small provisions," he said. "This one, I hope, is a very simple one that we could move outside of the comprehensive immigration reform. Let's recognize the contribution of legal immigrants now, but it may be that this gets wrapped into comprehensive immigration reform, and I'm okay with that. We're prepared to have that conversation.”

Zoe Adams, who emigrated from the southern coast of England with her husband as runs a pool maintenance company in Polk County and is working to reform the E-2 visa program, said she's optimistic about the bill.

“I really believe that the reason why it has not been changed, up to now, is because nobody's asked,” she said.

END OF REPRINT

From Zoe Adams of E2VisaReform.org:

Mr, Jolly's....office should get the actual final wording of the Bill early next week.   Mr Jolly has said he would like to try and introduce the Bill next week or the week after that. He would like to have around 15 co-sponsors for when he introduces it, so we can start asking our Representatives either today, or maybe next week when we have the wording to show them. If we can then get over 100 co-sponsors, this will mean the Bill can move straight to the House Floor without having to go through Committees. This will obviously make the process easier and not open it up to too many possible changes. So we all need to look at contacting our own Members of Congress.  We had a great response from the Newsletter that was sent out on Wednesday and I hope this will continue. To find out who your Member of Congress is - visit  www.House.gov You put in your Zip Code on the top right and it will give you the information. You may need to include the extra 4 digits of your Zip, as some Districts overlap Zip Codes. This can be found on any official mail you may have - from the bank or similar. I would suggest that you call the office in Washington and ask the name and email address of the person you should write to about Immigration issues, rather than filling out the form on the Congress Person's website. If you don't feel happy doing that, ask me and I will call for you. If you do get a name and then e-mail, please can you let me know so I can keep a record of everyone who has been contacted. If you would like to visit the local office of your Member of Congress, that will be very effective too, and it can lead to a good relationship and possibly an appointment to meet them.

13-Story Riverfront Condo Planned for Daytona Beach

A rendering of what the 13-floor White Pearl Condominiums could look like from 

South Peninsula Drive in Daytona Beach. Provided by Zev Cohen & Associates

By Bob Koslow
bob.koslow@news-jrnl.com

Published: Sunday, February 15, 2015 at 8:35 p.m.

Last Modified: Sunday, February 15, 2015 at 8:41 p.m.

DAYTONA BEACH — Construction of White Pearl, a new proposed 13-story high-rise beachside condominium, may start this fall along the east banks of the Halifax River and could be the first new beachside condo built in eight years.

The project is another sign of an economic resurgence in Daytona Beach, local industry watchers say.

“It's a great time to bring a new condo out of the ground. It's an exciting time with the Hard Rock and Russian project,” said Ron Wysocarski, a real estate agent with a specialty in condo sales with Keller Williams Realty Florida Partners in Port Orange.

Canada-based Bayshore Capital is close to starting construction of a $144 million Hard Rock Hotel & Café condo/hotel in the 800 block of South Atlantic Avenue and Palm Coast-based Protogroup could start work this year on its $150 million beachfront condo/hotel at the eastern end of Oakridge Boulevard.

Investor Laura Andre of Palm Beach, doing business as Emerald Financial Inc., paid $1.67 million at the end of January for the nearly cleared 4.7 acres in the 900 block of South Peninsula Avenue just north of Silver Beach Avenue, and is moving quickly to get the White Pearl project approved.

“At this point in time the plan is to resurrect the old plans and build what was approved there 10 years ago,” said Larry LeNeve, owner of InterAmericas Realty in Palm Beach Gardens and representing Andre.

Daytona Beach in 2006 approved the construction of an 85-unit, Mediterranean-style condominium building, called the Black Pearl. The plan included 13 floors in the middle and 9 floors on the north and south ends, all over a parking garage. The Maitland developer turned the property deed over to BB&T bank in late 2010 in lieu of foreclosure.

A boat dock/marina was also part of the old plan and also part of the developer's intent, said Rob Merrell, a Daytona Beach attorney with CobbCole who is overseeing the project's permitting process.

“We need to get the property rezoned for the condo and amend the comprehensive plan to allow the taller building because the old site plans expired last year,” Merrell said.

Merrell expects to file the applications with the city by the end of February, get city planning board and City Commission approvals by June and construction started in the fall. Zev Cohen & Associates in Ormond Beach has been hired as the project's civil engineering firm.

“The fact that there is interest and the property changed hands indicates a positive market,” Merrell said.

LeNeve said the desire is to get a sales trailer on the site by the end of March. The condos would run from the front to the back of the building, average about 2,000 square feet in size and cost $220 to $275 per square foot, LeNeve said. At the low end, a 2,000-square-foot condo in White Pearl would cost $440,000.

If all goes according to plan, White Pearl would be the first new beachside condominium complex built since 2007 when the Islamorada, now called Opus, went up at 2071 S. Atlantic Ave in Daytona Beach Shores. A couple of beachside condo complexes have added new buildings in recent years to take advantage of an improving real estate market.

“This is an opportunity to offer fresh new inventory,” Wysocarski said. “If White Pearl can get going this summer and offer sales, it would have a competitive advantage over the others. A risk taker could be rewarded with being the first new one.”

The seller was a local investment group that included developer Paul Holub Jr. of Ormond Beach. They bought the property from the bank in 2012 for $761,000.

John Trost, a commercial real estate agent with Prudential Commercial Real Estate FL in Daytona Beach, represented the group.

“I just love this property,” he said. “It overlooks the river, is close to downtown on Beach Street, the baseball park and a walk to the beach. It will also be close to the Hard Rock when it comes. It's just a terrific location.”

http://www.news-journalonline.com/article/20150215/business/150219591?p=1&tc=pg

Florida led the country in the number of international buyers in 2014

French investors keep saying “oui” to South Florida

France is No. 1 European country searching for South Florida real estate

February 10, 2015 03:45PM
By Katherine Kallergis

(re-posted from "The Real Deal" South Florida Real Estate News)

Clockwise from left: W South Beach, Cassa Brickell, Paramount Miami Worldcenter and Palm Court in the Design District 

As Louis Vuitton and its parent company LVMH Moet Hennessy continue to make their mark on Miami’s Design District, French investors and families keep bringing their money to Miami-Dade County. 

Janet Choynowski, founder of Real-Buzz.com, told The Real Deal that France is the No. 1 European country searching for South Florida real estate. Florida led the country in the number of international buyers in 2014, according to the Miami Association of Realtors. 

Signs of French influence can be seen in French language listings of South Florida properties, Choynowski said. Her website is a consumer portal that translates real estate brokerage websites into as many as 20 languages. The company translates websites for Century21 and ONE Sotheby’s International Realty. 

“Even though most serious buyers speak English, they’re still searching in their native language,” Choynowski told TRD. 

More than half of prospective French buyers searching Real-Buzz.com are male with a strong interest in sports, she said. The pattern for people searching in French begins with viewing properties in California and typically makes its way to Florida, which gets more page views. 

“To the international buyer, the U.S. is kind of one place. They view it in a wide ranging pattern. Climate and environment is the hook,” she said. “Although the euro is going down, interest in the U.S. is increasing. And when it comes to South Florida, there’s a strong interest in waterfront.” 

The declining value of the euro, which is at $1.16 as of Tuesday, is driving European residential and commercial investment in South Florida. 

Buyers are coming from all over Europe, including France, Spain, Turkey and Germany, partly because of the euro’s decline, according to Peggy Fucci, chief executive of OneWorld Properties. 

“Miami is a good place to park their money,” she said. “And there’s the fear that it will continue to decrease.” 

OneWorld Properties is the exclusive brokerage for Paramount Miami Worldcenter. Since it launched sales, about 15 percent of reservations have been from Europeans, Fucci said. 

Outdoor amenities are also part of the appeal. The 60-story project will include a soccer field, tennis courts, pools and a running course — all part of an outdoor sports complex on the condo tower’s ninth floor recreation deck. Twelve Balinese-style, two-story villas surrounded by pools and other water features will also occupy the same floor. Instead of balconies, condos will come with “outdoor living rooms,” Fucci said. 

Prices for the units, which range from 1,300 square feet to 2,300 square feet, start at $700,000 and go up to $1.5 million. 

Penthouses and villas will be priced up to $5 million. Daniel de la Vega, president of ONE Sotheby’s, said he’s also seen an increase in French buyers in Miami-Dade. They are particularly attracted to “ones on sand, in Miami Beach or in Deco-style buildings,” he said. “Most of them are investment apartments they rent out on a monthly basis, but we’re also seeing a 5 to 10 percent increase in projects like the W South Beach.” 

Christophe Richard, a RE/MAX Florida real estate agent with a background in international development finance and French banking, recently represented the French buyer of a $1.25 million penthouse at Cassa Brickell. 

“Miami has become increasingly attractive to French investors because it is a good investment,” he said. “You can see where your money is going. The city is changing in scale. In 15 to 20 years, it will be equivalent to L.A., New York, Hong Kong.” 

View some of South Florida "hottest" properties HERE!

More 55+ Buyers Moving, Downsizing

WASHINGTON – Feb. 6, 2014 – The fourth quarter National Association of Home Builders' (NAHB) 55+ Housing Market Index (HMI) finds that builders are optimistic about the market.

All segments of the older adult market – single-family homes, condominiums and multifamily rental – registered increases compared to the same quarter a year ago. The single-family index increased six points to a level of 54, its highest fourth-quarter reading since the inception of the index in 2008 and the 13th consecutive quarter of year-over-year improvements.

"Over the past several years we have seen demand for 55+ housing explode," says Timothy McCarthy, chairman of NAHB's 50+ Housing Council. "While this growth in sales is welcome, many builders are challenged to ramp up home production to fill new home orders."

On the other side of the equation, more older Americans are deciding to sell the family home they've lived in for decades, creating an opportunity for Realtors who specialize in this market.

The sale of a family home often comes with challenges of its own. Many of these adults, for example, are reluctant to move and at odds with adult offspring over when to put the house on the market, the list price and where they should live next. It's a financial and emotionally charged decision that sometimes involves a health issue, according to Donna Anderson, former president of the Charlotte Regional Realtor Association.

One in four 2012 home sellers was older than 65, according to the Seniors Real Estate Institute.

NAHB says that all components of its 55+ single-family HMI posted increases from a year ago: present sales increased five points to 58, expected sales for the next six months rose two points to 64 and traffic of prospective buyers increased six points to 39.

The 55+ multifamily condo HMI posted a five-point gain to a reading of 40, the highest fourth-quarter reading since the inception of the index. All components of the index increased for the fourth quarter: present sales rose five points to 42, expected sales for the next six months climbed five points to 45 and traffic of prospective buyers increased three points to 33.

The indices tracking production and demand of 55+ multifamily rentals posted record year over year readings in the fourth quarter. Present production rose five points to 48, expected future production increased five points to 51, current demand for existing units climbed 10 points to 64 and future demand jumped 11 points to 66.

"The strength of the 55+ segment of the housing industry has been fueled in part by rising home values," says NAHB Chief Economist David Crowe. "Older homeowners are finding it easier to sell their existing homes at a favorable price, allowing them to rent or buy a new home in a 55+ community."

© 2015 Florida Realtors®

2 National Builders Adding 500+ Homes to West Orange Development

Anjali Fluker

Senior Staff Writer- Orlando Business Journal

Feb 2, 2015, 11:47am EST 

KB Home and Beazer Homes are upping their game in Orange County's master-planned community of Horizon West.

The two national builders, both of whom are among Central Florida's top production homebuilders, will build more than 500 homes in the Summerlake development on the west side of town. These homes will be added to same community where Lennar Homes is investing $80 million into a new 300-home development.

Here's a closer look at what the builders have planned:

• Atlanta-based Beazer Homes USA Inc. (NYSE: BZH) is spending $45 million to build 178 townhomes and 43 single-family homes in Summerlake. Construction began on both a single-family model and a six-unit townhome model building, said Nick Gargasz, market manager of Beazer's Orlando division. Beazer Homes Corp. in December paid $7.84 million to buy the site from SLV Summerlake LLC, an entity related to Starwood Land Ventures, Orange County records showed.
• Los Angeles-based KB Home (NYSE: KBH) plans to build a total of 292 single-family homes in Summerlake. The builder just began sales on 55 lots in Summerlake III, where floorplans range from 1,900 to 4,200 square feet, said KB Home Orlando spokeswoman Cara Kane. KB Home Orlando LLC in December paid $5.1 million to buy this tract from SLV Summerlake, county records showed.

Lennar Homes, meanwhile, had previously told Orlando Business Journal about its plans to start building its first set of homes in Summerlake this week.

A healthy residential real estate industry is considered to be a bellwether of economic health in the region. Several local homebuilders said they're optimistic about more success in the industry this year.

5 Ways to Raise the Value of Your Listing

5 Ways to Raise the Value of Your Listing