Lee Ginsburg
Berkshire Hathaway HomeServices California Realty

Realtor®, CRS,SFR,SRES









"It Is Better To Own Real Estate and Wait, Than Wait to Own Real Estate"

Covid 19 and Real Estate

 I  sure hope you and your family are doing well.  Staying Healthy is a matter of staying clean today.  May God Bless you during these trying times, and keep yourself safe.

 I want to bring you up to date to the Real Estate Events due to Covid 19.  These plans are changing daily. Please double check or most current and speak to your financial advisor or accountant.

  • Federal Income Tax returns and payment have been postponed to July 15 with no penalties or late fee.
  • Also, sole proprietors who pay quarterly estimated taxes now have until July 15 to file their second quarter payment.  As a result of an earlier IRS notice, first quarter estimated tax payments had already been extended to July 15.  This means that any individual or corporation that has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, can wait until July 15 to make that payment, without penalty.  
  • State Income Tax returns and payments have been postponed to July 15 with no penalties or late fees
  • San Mateo County Property Tax 2nd installments are due May 4. 
  • 1031 Like-kind exchanges.  If an investor has taken the first step of a like-kind exchange by selling the old property, & either the 45-day or the 180-day deadline falls between April 1 & July 15, the deadline has been extended to July 15.l
  • $1,200 Rebates/Checks for Individuals  The CARES Act provides for payments of a tax credit of up to $1,200 per individual, subject to income limitations.  The credit phases out above adjusted gross income of $75,000 ($112,500 for head of household filers, $150,000 for married joint returns).  The IRS intends to send these payments via direct deposit when possible, based on banking information as listed on taxpayers’ tax returns.
  •  Special Rules for Use of Retirement Funds in 2020  For retirement plan distributions, the CARES Act provides an exception to the 10% early withdrawal penalty for distributions up to $100,000 for coronavirus-affected individuals. Income from such distributions will be recognized over three years, and taxpayers can recontribute funds to an eligible retirement plan in the first year or within three years without regard to the year’s contribution cap. For coronavirus-affected individuals, loan limits from retirement plans would be increased from $50,000 to $100,000 and the repayment deadline is delayed for loans that are due in 2020. 
  • Temporary Waiver of Required Minimum Distribution Rules for Certain Retirement Plans and Accounts  In general, required minimum distribution (“RMD”) rules require that taxpayers withdraw minimum amounts annually after reaching age 72 (70½ before 2020). The CARES Act waives the minimum distribution requirements for 2020. The CARES Act does not have provisions for distributions already taken in 2020
  • lI have found The San Mateo County Economic Development Association (SAMCEDA) to have a lot of info for small business financial help.  https://www.samceda.org/ 
  • Real ID deadline has been extended to October 2021
  • Four of the nation’s five and largest banks and over 200 banks have agreed to defer homeowners’ mortgage payments for 90 days in California, It is imperative to contact your lender for their specific requirements.  Please confirm this deferment is not supposed to affect your credit.  Please get any agreements in writing.  Some of these banks are so large that one department does not talk to another.  
  • Tenants will have a 90 day forebearance (not a waiver) for paying rent if  they notify their landlord of a hardship due to Covid 19. The ordinance includes language requiring tenants to make partial rent payments to the extent possible. The tenant is required to repay missed rent within 90 days. This should all be in writing. If the tenant is unable to pay, within 90 days and can demonstrate continued financial hardship, he, she, or they may be granted additional time up to 180 days after May 31.
  • Landlords will not be allowed to evict a tenant for non-payment of rent through June 30, 2020 if the tenant can demonstrate that he or she has experienced financial hardship or loss of income due to COVID-19. Prior to the rental property owner issuing a 3-day notice to the tenant due to non-payment of rent, the property owner must issue the tenant with a new form, created and supplied by the County of San Mateo, that informs the tenant of their right to delay payment. The ordinance includes language requiring tenants to make partial rent payments to the extent possible. The tenant is required to repay missed rent within 90 days. This should all be in writing. If the tenant is unable to pay, within 90 days and can demonstrate continued financial hardship, he, she, or they may be granted additional time up to 180 days after May 31.
  • The County of San Mateo also just unanimously passed a special relief fund of $3 million of Measure K funds that will go to help individuals, families, non-profits, and small businesses that can demonstrate financial impact by COVID-19.  Grants of up to $10,000 will be given to self-employed individuals, independent contractors, and small businesses with 10 or fewer employees who can document at loss of at least a 25% in revenue due to COVID-19.
  • Mortgage rates are higher today than they were a month ago.  I think as we get through this situation, we will see rates drop again. The mortgage interest rate is not really related to the much-publicized Fed Rate.  That is the rate the banks charge each other.  The mortgage interest rate is related to the 10-year Treasury Bill.  But even that is not hold true today.