Lee Ginsburg
Berkshire Hathaway Home Services California Realty

RealtorĀ®, CRS,SFR,SRES







New Laws for Home Owners and Investors for 2013

 

There is no change as of now to the Mortgage Interest Deduction! Interest on loans up to $1.000,000 are still deductible.

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.