Selling Reno And Sparks Real Estate Blog: January 2011

One of my clients recently closed escrow on a Reno home and asked:

"How do I homestead my home and what protection will I have once completed?"

Homesteading your home is quite easy. All you need to do is complete a Declaration of Homestead form and record it with the county recorder in the county where your home is located. There is a small fee to process and notarize the declaration once you have completed it. If you live in Washoe County, the recorders office is located at 1001 E 9th Street, Building A, Suite 150, Reno NV 89520.

What is a homestead?

 A homestead declaration protects your home from being seized and sold in the event that a money judgment is entered against you in court. Nevada home owners who have filed a Declaration of Homestead are protected under the Homestead Act Of Nevada, NRS 115.

For most judgments against you, your home in Nevada is protected up to at least $550,000 of the equity you have in your home. You are protected against most judgments except if you have judgment against you  because:

• You owe taxes on your home
• You have a mortgage lien
• You owe Child Support / Alimony
• You have a mechanics lien

What kinds of properties are eligible?

• Land, your house, things connected to the land (easements, gardens, fixtures)
• Mobile Home (even if you don't own the land it sits on)
• Condominium Unit

Who can declare a homestead?

You  must own your home to file a homestead declaration. It must be your primary residence, not a rental or investment property. It does not matter if you are married or single. Both or a single married person can file. In most cases, a trustee can file for a person living in the intended home.

 What happens if I sell my home once it has a homestead declaration filed?

If after receiving a Declaration of Homestead for your home you must keep the information on the form current. If you move,  you must file for a new homestead. If you divorce, separate, become widowed or get a new loan, you will need to file a new declaration.  

If you own a home in Reno or Sparks, Nevada, you should consider filing a homestead declaration with the Washoe County Recorders Office. 

It is so easy to do and is such a valuable tool to help protect your home against creditors and could save you from having your home foreclosed on.

How Do I Homestead My Reno Home?

If you purchased an energy efficient product or renewable energy system for your home for  improvement purposes anytime during January 1, 2009, through December 31, 2010, you might be eligible for a Federal tax credit or deduction on your 2010 income tax returns.

 As part of the American Recovery and Reinvestment Act of 2009, the U.S. Department of Energy hopes consumers will buy energy efficient products for their homes that will help save on consumers monthly energy bills, reduce air pollution and increase indoor comfort. By purchasing qualifying Energy Star Products, home owners have the opportunity to owe less on personal income taxes.

To be clear on what qualifies as an Energy Star product, the U.S. Environmental Protection Agency defines Energy Star below:

"The earn the ENERGY STAR, a home must meed strict guidelines for energy efficiency set by the U.S. Environmental Protection Agency. These homes are at least 15% more energy efficient than homes built to the 2004 International Residential Cod (IRC), and include additional energy-saving features that typically make them 20-30% more efficient than standard homes."

What products are included in  home energy improvemnt tax credits?

 ALL tax deductions must be for your existing home and principle residence. New construction homes, vacations homes and rentals to not qualify. You will receive a tax credit of 30% of the cost up to $1,500 for the following items:

• Installation and purchase of energy efficient windows and doors
• Installation and purchase of heating and cooling equipment
• Roofs (Metal & Asphalt)
• Water heaters (non solar)
• Insulation

All items must be purchased and installed between January 1, 2009 and December 31, 2010 to be eligible.

What products qualify for Existing Homes & New Construction Principle Residence & Second Homes?

This tax credit does not apply to rentals. Both existing and new construction residences apply as well as principle residences and second homes. The tax credit covers up to 30% of cost with no upper limit. This tax credit will expire December 31, 2016. The following items qualify:

• Geothermal Pumps
• Small Wind Turbines (Residential)
• Solar Energy Systems

To learn more about products that help reduce energy and save energy for your home and where to buy energy efficient products, the U.S Department of Energy and the U.S. Environmental Agency have a complete list of products, tips and advice and a list of all tax credits and incentive available to home owners.

Always consult your tax expert or legal adviser to be sure your Energy Star purchases and home improvements qualify. If you are looking for homes in Reno Nevada with energy efficient features, contact me for a complete list of homes in this area.

Take Advantage Of Those Federal Energy Tax Credits For Your Northern Nevada Home

Tax Deductible Moving Expenses

Before you start deducting moving expenses on your 2010 tax returns, be sure your move meets the IRS moving qualifications.

To qualify for the moving expense deduction, you must meet the distance and time frame criteria. The move must be qualified under IRS guidelines.

Qualifying moves are those that are the result of relocation from your current job or you are accepting a new position from a new employer in another area and must relocate.

Do You Meet The Distance Test and Time Test to deduction moving expenses on your income tax returns?

Let's find out!

The Distance Test: Your move will meet the distance test if the location of your new job is at least 50 miles farther from you old home than you old job location was.

 For example, if your old commute was 20 miles, then your new job must be at least 70 miles from your old home in order for your moving expenses to be tax deductible.

The Time Test: In the first year you after you move, you must work full-time for at least 39 weeks.

 If you are self-employed, you must work the 39 weeks full-time and then a total of 78 weeks during the first 24 weeks after your move.

You must move far enough away from your current job and home and work at this new job full time for a certain number of months. If you moved in 2010, you will not be able to write any moving expenses off on your 2010 tax returns. But if you moved in 2009, 2008, you bet. Let's find out what can be deducted.

Now that you have determined your move is eligible for tax deductible moving expenses, what items are tax deductible?

~The cost of trips to the area of a new job to look for a home. Your home shopping trip does not have to be successful for the cost to be deductible.

~The cost of having your furniture and other household items shipped, including the cost of packing, insurance, and storage for up to 30 days.

~The cost of getting your family to the new home town, including food and lodging expenses on the trip.

~The cost of lodging and 80% of food expenses for up to 30 days in the new home town, if these temporary living expenses are necessary because you have not yet found your ideal home or it is not move in ready when you arrive.

~Certain costs associated with the sale of your old home and purchase of the new one. These expenses, including real estate commissions, legal fees, state transfer taxes and appraisal, title fees, all can be used as moving expenses up to the allowable dollar limits.

X~X~X~X~X~X~X~X~X~X

Each situation is different so when considering deducting moving expenses on your income tax returns, always consult your tax account or legal advisor to make sure your deductions qualify.

This information is provided for informational purposed only. As a Northern Nevada Real Estate Agent, I try to provide helpful information for all. If you were looking for way to deduct your moving expenses on your tax returns, I hope this information was helpful. If you are looking to buy, sell or relocate to the Reno or Sparks Nevada areas, please feel free to contact me, I would love to help you with your move!

Tax Deductible Moving Expenses ~ Do You Qualify?

Sparks Nevada Market Statistics for December 2010

Prepared By Terrie Leighton, REALTOR®, Ferrari-Lund Real Estate in Northern Nevada

Here are a few market statistics for homes sold during the months of December 2009/2010:

Single Family Homes Sold in Sparks for December 2010 = 146

Single Family Homes Sold in December 2009 = 146

Medium Sold Price in December 2010 = $155,000

Medium Sold Price in December 2009 = $175,000

Days On The Market in December 2010 = 110

Days On The Market in December 2009 = 92

Sparks NV Short Sale Properties: Of the 146 single family homes sold in Sparks during 2010, 46 homes were short sale properties. The medium sold price was $154,550. Short Sale properties were averaging 156 days on the market.

There were 46 short sale properties sold this same time during December 2009. The medium sold price during that time period was $162,000. The average time spent on the market was 167 days.

Sparks NV Bank Owned Properties: There were 50 bank owned properties sold in December 2010. The medium selling price for single family bank owned property was $133,950 and spent an average of 95 days on the market.

During the same time period in 2009, there were 52 bank owned properties sold in December. The average list price was $162,500 and lasted 65 days on the market.

The Sparks Real Estate Market seems to be holding steady from 2009 to 2010. The number of units sold are consistent with last years single family homes sold.

The absorption rate has halted its increase and is remaining steady for the short term. This signals that demand/supp;y realities are not changing significantly.

It is still a great time for Nevada home buyers to purchase. Home prices are low and inventory is high. Interest rates are still low and Nevada has many first time home buyer mortgage programs to choose from.

If you need help find a Northern Nevada Home to buy, contact me for all your real estate needs today.

Sparks Nevada Market Report For December 2010

As most of you are aware UNR will be playing in this years "Kraft Fight Hunger Bowl" on January 9^th 2011 in San Francisco.

 The Wolf Pack has teamed up with the Food Bank of Northern Nevada to raise money and food donations leading up to the event on the 9^th.

Kraft has created a text challenge for the fans of both teams to help make a difference with hunger issues in each communities.

 Kraft will be rewarding the rewarding the team with the most texts a 20,000 meal donation to their local food bank.

Here is how you can JOIN THE CHALLENGE:

• Text Nevada followed by your zip code to #71717 and "Kraft" will donate for each text!
• Boston College fans are encouraged to text a similar message as well.
• Have a food and fund drive at your home party while cheering on the Wolf Pack.
•  Challenge a business or friend to make a donation.
• Spread the word by including the challenge in your own email blasts, website, Facebook, twitter and in your blog. 

Texts can be sent anytime between now and kick-off time and each fan can send one text from their cell phone.  Message and data rates may apply depending on the individuals cell phone plan.

Come on Wolf Pack Fans, tell your friends, tell your neighbors, tell your family to whip out those cell phones and take the challenge. Help fight hunger in Northern Nevada!

Whip Out Those Cell Phones Wolf Pack Fans And Help Fight Hunger in Northern Nevada ~ Kraft Fight Hunger Bowl ~

Let's Go Wolf Pack!!!