The Whole Truth, and Nothing But the Truth So Help Me Denver!

Posted on May 29, 2013 by Dee & Tom Cryer
8 MLS Areas with More Than $200M in Sales YTD

8 MLS Areas with More Than $200M in Sales YTD

As we close out May, 2013 in the Denver Residential Market, what have we learned? Quite frankly, on the “idiot end of the tape measure” where I spend most of my time, we’ve been so busy chopping wood fast and furiously, we’ve not had time to sharpen our ax!

So, I thought I take some time, I would make some observations about the Denver Market, and I thought I would share them with you.  So, here goes something…

There are 8 MLS Areas in the MetroList system already at or above $200M in sales YTD. Of those 8 areas, all have had more than 400 closings YTD. With a range of 411 closings in SSE to a monster year so far, we have Aurora South with 968 closings YTD!

Being analytical as I am, I highlighted these 8 areas on the MetroList Map (Attached). All 8 areas are without exception within an “easy” commute to the Denver Tech Center. All 8 areas are adjacent to either I-25 or I-225 which means there must be some influence from Light Rail. And, except Aurora South, they are close to or do enjoy some of the highest average prices in the city.  Additionally, they either serve the DTC, Denver CBD, Mid-Town or Cherry Creek markets almost directly.

So, What’s it all about, alfie? In a word; Jobs! The DTC and its surrounds are experiencing positive job growth, and if rumor has it right, it now enjoys more jobs than the Denver CBD, but wait, the Denver CBD is experiencing job growth too!  So, don’t rule the Suburbs out quite yet!

This will be fun to follow up with toward the 4th quarter to see how, jobs, rates, access, fuel prices, etc. have impacted Denver’s Residential Market changes.  Stay Tuned!

Posted in Buying or Selling Real Estate, Centennial, Cherry Hills Village, Denver, Denver Housing, Denver Residential Real Estate, Greenwood Village, Uncategorized | Tagged , , , , , , , | Leave a comment

Water, Water Everywhere but…

Posted on May 9, 2013 by Dee & Tom Cryer
I Confess, I Have Wasted Water!

I Confess, I Have Wasted Water!

In the world of the ancient mariner, water was a priceless commodity.  Water was everywhere, but it was salt water from the sea.  We live in a world where water is used over and over again.  As a community, we have to be vigilant to protect an increasingly scarce resource.  Along the Front Range, we are constantly in or around water restrictions.  We can’t do much about that, but we can control what happens in our own homes.  Here are some great ideas from one of Denver key employers and the American Water Works Association.

Some of these ideas are already on your best practices list, but I found a few that I will be adding to my list.

Water protection at home
CH2M HILL works hard to meet regulations for clean water set by state, province and national regulators. While clean water leaves the plant and is sent through community water systems, the state of pipes in customers’ homes affects the final quality of the water.As part of Drinking Water Week, we encourage you to share these tips with customers to help ensure water quality in their homes.

  1. Clean faucets and aerators regularly.
  2. Clean and disinfect sinks and drains regularly.
  3. Keep drains clear and unclogged.
  4. Use cold water for drinking and preparing food.
  5. Replace old plumbing and install certified “lead free” fixtures.
  6. Flush cold water taps after household plumbing work or when the water hasn’t been used for several days.
  7. Drain and flush your hot water heater annually.
  8. Follow the manufacturer’s instructions for the water heater, filters, treatment devices, softeners and any other products attached to the water system.
  9. Do not connect hoses or other devices intended for non-drinking purposes to household drinking water faucets.
  10. Keep hazardous chemicals and unsanitary materials away from drinking water faucets.

(Tips courtesy of American Water Works Association)

Share your Drinking Water Week events with co-workers, clients and friends by submitting your stories and photos to Julie Kauffman. We’ll post them on Facebook, Twitter and in Of Mutual Interest.
Posted in Clean Water, Denver Housing | Tagged , , , , , , , , , | Leave a comment

Super Joe Hubert Is Back with His Monthly Denver Market Update.

Posted on May 5, 2013 by Dee & Tom Cryer
Super Joe Hubert is back with his monthly market update for March, 2013.  His report provides affirmation to previous posts I’ve provided also expressing the rapid market velocity we are experiencing in Denver.I think you will enjoy what Joe has to say.  As always, if you need additional information, please don’t hesitate to contact me…tc

Super Joe Hubert

Super Joe Hubert

Hi Tom,

“A funny thing happens in real estate. When it comes back, it comes back up like gangbusters.”
~ Barbara Corcoran

This sentiment definitely rings true in the Colorado real estate market this spring. Despite the numerous snowstorms, homes are staying on the market on average less than 60 days. The pressure is on to find the right home for a growing number of buyers with limited inventory.

Land Title is here to help give you the extra energy boost you need during these “gangbuster” times. We are here to cheer you on, supply you with statistical information, and help you with marketing support and more! Contact me today to find out more information on how Land Title can help.

Wishing you a Gangbuster May!

Sincerely,

Joe

April – 2013 Real Estate Market Stats

Entire MLS (All Areas)

Residential Highlights:

  • 21.2% increase in the number of closed sales year-over-year
  • 21.4% increase in the number of closed sales year to date
  • 37.8% decrease in average days on market (56 days in April)
  • 32.2% decrease in active listings
  • 11.9% increase in new listings
  • 12.5% increase in average price – sold ($336,123 in April)

Condo Highlights:

  • 20.8% increase in number of closed sales year-over-year
  • 21.1% increase in number of closed sales year to date
  • 42.9% decrease in average days on market (52 days in April)
  • 32.5% decrease in number of active listings
  • 30.2% increase in number of new listings
  • 10.5% increase in average price – sold ($196,966 in April)

Click here for Full report of entire MLS
For individual MLS area reports, please scroll to the bottom of the eNewsletter.

New Look to LTGC.com

Have you had a chance to check out the new look and feel of LTGC.com? We’ve added for more content and tools for your use. Contact your local sales rep for a guided tour.

Inside Real Estate News

Did you know that Land Title is one of the sponsors of one of Denver’s top real estate news sites? Every day you can find breaking news occurring in the Denver real estate market.
Click here to subscribe to weekly emails.

In The News
Stay on top of the pulse of the real estate market with weekly compilations of local and national news articles concerning the real estate industry.

Click here for a PDF version.

– – – – –

Topic of the Month: ALTA Best Practices
Recently, ALTA (American Land Title Association) decided to develop best practices to demonstrate the policies and procedures the title insurance industry exercises to protect lenders and consumers in their real estate transactions. This month’s Topic of the Month defines what these practices are and how they can be followed.

Referral Marketing – Fun in the Backyard
After months of snow, it’s finally time to get some use out of one of Colorado residents’ favorite features of their home – their backyard.  This month’s referral marketing card gives some fun ideas on how you can transform your backyard into a planetarium, movie theater, and more.

We would be happy to help you personalize your mailer including logo, photo and contact information.
Printing or emailing your own? LTMS can personalize your referral marketing card for a $10.00 fee. Or, download our JPG to email to your clients. You can also visit Land Title’s Facebook page, where you can click “share” to post to your own page.

Click here to see a sample of the personalized Referral Marketing mailer.
Click here for this month’s Referral Marketing mailer as a JPG.

For archives of past referral marketing mailers, articles by our sales reps, and even more information to help you with your marketing, be sure to check out LandTitleMarketingSolutions.com.

MLS All Areas:

All Areas in one consolidated report

Aurora North – AUN

Aurora South – AUS

Brighton, Fort Lupton – BFL

Broomfield – BRM

Denver Northeast – DNE

Denver Northwest – DNW

Denver Southeast – DSE

Denver Southwest – DSW
Downtown Denver – DTD

Douglas County West – DCW

(Includes – Castle Rock, Larkspur, Sedalia, Palmer Lake, part of Littleton)

Douglas Elbert Parker – DEP
(Includes – Parker, Elizabeth, Franktown, Kiowa, Elbert, Deer Trail, Simla)

Douglas Highlands Ranch Lone Tree – DHL

(Includes – Highlands Ranch, Lone Tree)

East Suburban North – ESN

East Suburban South – ESS

Jefferson County Central – JFC

Jefferson County North – JFN

Jefferson County Northcentral – JNC

Jefferson County South – JFS

Jefferson County Southcentral – JSC

Jefferson County West – JFW

Lafayette – LAF

Mountain Clear Creek – MCC

Mountain Conifer Pine – MCP

Mountain Evergreen North – MEN

Mountain Evergreen South – MES

Mountain Gilpin County – MGC

Mountain Jefferson County – MJC

Mountain Jefferson North – MJN

Mountain Jefferson South – MJS

Mountain Park County – MPC

Mountain Park East – MPE

North Northeast Suburban – NNE

North Northwest Suburban – NNW

North Suburban Central – NSC

North Suburban East – NSE

North Suburban West – NSW

South Suburban Central – SSC

South Suburban East – SSE
Based on Information from Metrolist, Inc. for the period Jan 2009 through present. Note: This representation is based in whole or in part on data supplied by Metrolist, Inc. Metrolist, Inc. does not guarantee nor is in any way responsible for its accuracy. Data maintained by metrolist, Inc. may not reflect all real estate activity in the market.
Posted in Buying or Selling Real Estate, Centennial, Cherry Hills Village, Colorado, Denver, Denver Housing, Denver Residential Real Estate, Greenwood Village | 1 Comment

#Westin Hotel Planned for Greenwood Village First 5-Star Hotel in South #Denver Area

Posted on April 16, 2013 by Dee & Tom Cryer

City of Greenwood Village
6060 South Quebec Street
Greenwood Village, Colorado 80111
http://www.greenwoodvillage.com

For Immediate Release
April 16, 2013

Contact: Melissa Gallegos, Public Information Officer
303-486-5749; Cell: 720-849-9910
mgallegos@greenwoodvillage.com.

Westin Hotel Planned for Greenwood Village First 5-Star Hotel in South Denver Area

The City of Greenwood Village has been selected by Greenwood Village Hotel, LLC, a developer group consisting of Waveland Ventures, Jackson Street holdings, and Arrival Partners, as the exclusive location for a Westin Hotel franchise expected to begin construction in the fourth quarter of 2013 at the Arapahoe at Village Center Station.

“We are ecstatic that our city has been selected for construction of the first 5-Star hotel for the south Denver area,” said Mayor Ron Rakowsky. “This luxury hotel chain will be the catalyst for continued development of our Village Center and will provide high quality services to the residents, businesses and large corporate presence we have in our Village and the region.”

The Agreement between the Village and the Developer
On Monday, April 15, the Greenwood Village City Council approved an agreement to sell 3.54 acres of property the Village owns at the Arapahoe at Village Center Station (on the east side of I-25) to the developer for construction of the hotel.

As part of the real estate purchase agreement, the sale of property will be contingent upon the developer receiving the requisite approvals by Village officials and other agencies for the project and a building permit acquired prior to the closing of the deal.

“It was an agreement that will protect both the Village and the developer,” said Jim Sanderson, City Manager. “Essentially, the developer will not have to buy the property unless they get all the approvals to build a hotel on the site, and the Village does not have to sell the land until the plans for the hotel are finalized and approved.”

Village staff is working with the developer on a development schedule to accommodate the developer’s goal to begin construction in the fall. In addition to an extensive review process by Village staff, neighborhood input meetings and an application review by the Village Planning and Zoning Commission will be scheduled over the next few months, with a public hearing on the project by the City Council tentatively scheduled for the fall of 2013. A formal application for the project is expected to be submitted by the developer in the second quarter of 2013.

The Hotel
Preliminary plans for the hotel include 200 spacious guestrooms and suites; a signature restaurant and bar welcoming both hotel guests and the Greenwood Village neighborhood; conference and banquet space comprising a grand ballroom, meeting rooms, and reception space; and a fitness center that includes a swimming pool. The hotel is positioned to offer expansive views north towards the Denver Tech Center and south towards Pikes Peak. This transit-oriented development is located steps from the pedestrian bridge and parking structure serving the RTD Arapahoe at Village Center light-rail station and the Village Center retail and office buildings. The hotel will be highly visible and convenient to I-25.

“We have chosen Greenwood Village as the premier location for a Westin Hotel because of the density of Fortune 500 companies that are headquartered here, and the ability to leverage the infrastructure investments that are already in place,” said Rick Hayes, CEO of Waveland Ventures. “We commend Greenwood Village’s leadership for embracing this investment. The development of this project is a demonstration of the market demand that exists in Greenwood Village for the type of hospitality experience a Westin Hotel provides.”

###

Proposed Concept Design of Westin Hotel at I-25 and Arapahoe at Village Center Station

Posted in Greenwood Village, Real Estate Residential Denver | Tagged | Leave a comment

Spring Has Sprung, but Not in #Denver!

Posted on April 16, 2013 by Dee & Tom Cryer
April 16, 2013 Denver Snow Storm

April 16, 2013 Denver Snow Storm

Now that the weather is starting to warm up it is time to think about the exterior of your house; even if you are not moving this year.

  • Power raking the lawn and fertilizing it are a great start.
  • Check your trees and shrubbery for damage and growth; prune as needed.
  • Clean the gutters and repair any damage caused by snow and ice.
  • Check the roof for damage.
  • Inspect the siding, windows and door frames…do they need caulking or paint?
  • Check for snow or water damage around the bottom of the walls. We all shovel our sidewalks, but who clears the snow away from the house itself?

Walk around your property and develop your own list looking for damage or wear. Watch for movement of sidewalks, driveways or deck columns etc. Has the local wildlife taken up residence on or in your home?

Owning a well maintained home requires a huge responsibility.  One step at a time, however, will keep your home in great shape and ready for summer.

Posted in Buying or Selling Real Estate, Centennial, Cherry Hills Village, Colorado, Denver, Denver Housing, Denver Residential Real Estate, Greenwood Village | Tagged , , , , , , , | Leave a comment

Record Low Inventory in the Denver Market! or Where Is That “Shadow Inventory” When You Need It?

Posted on April 3, 2013 by Dee & Tom Cryer
Low Inventory Creates Multiple Offers

Low Inventory Creates Multiple Offers

Critical to any real estate organization is inventory.  As you can see from the attached image (click to expand), is the realization that Denver’s inventory is as low as it gets.  Follow along as our CEO describes the inventory conundrum.

We need your listing!

Good Morning Everyone,

Please look at this chart (attached), the active listing inventory for attached and detached properties dropped -1.53% (-104) on a month over month basis and dropped -35.28% (-3,643) on a year over year basis. In August 2007, there were 30,827 active properties, which is down -78.32% (-24,145) compared to March 2013 (“Peak to Trough”).

At the same time, sales increased for attached and detached properties up +46.04% (1,366) on a month over month basis and up +24.69% (858) on a year over year basis.

I hope you will find this information helpful…enjoy your day.

Peter Niederman | CEO

Kentwood Real Estate

Posted in Buying or Selling Real Estate, Centennial, Cherry Hills Village, Denver, Denver Housing, Denver Residential Real Estate, Greenwood Village | Tagged , , , , , , , | 1 Comment

You Have No Excuse To Not Be A Buyer, Now…

Posted on March 20, 2013 by Dee & Tom Cryer

FOR IMMEDIATE RELEASE

Help For Homebuyers: Metro Cities Announce 2013 Homebuyer Assistance Program
4% Down Payment and Closing Cost Grants Available for Qualified Borrowers in Denver and Littleton

DENVER, CO ­— Tuesday, March 19, 2013 — Buoyed by successes from past homeowner programs and with an eye on the future, the City and County of Denver and the Metro Mayors Caucus today launched the Metro Mortgage Assistance Plus Program, a new funding initiative to encourage home ownership.

“There is no better way to help rebuild our local economy and expand the strength and vitality of our neighborhoods than to open the doors of home ownership to moderate and low-income buyers,” said Denver Mayor Michael B. Hancock.

The program reduces the usual barriers to home ownership by providing a 4% grant for down payment and closing cost assistance—money the borrower does not repay—and can offer a competitive interest rate on 30-year mortgages.

The program can currently be used to purchase any property in Denver or Littleton. Additional Metro Mayors Caucus jurisdictions are expected to join the program throughout the year.

Unlike past mortgage assistance programs, there is not a requirement that the buyers be first-time owners, and no time limit on when the individual or family last owned a home. There is also no maximum purchase price.

Interested buyers are encouraged to work with one of the 12 pre-approved lenders who are participating in the program. Along with completing free homebuyer counseling, each buyer needs to meet standard loan guidelines (a FICO of at least 640 and a debt-to-income ratio of 45) and income limits (not more than $91,100 for households of two or fewer people, and not more than $103,000 for three or more).

“It’s the down payment and closing cost help that we believe will really make the difference for these individuals and families,” said Paul Washington, executive director of the Denver Office of Economic Development. “This is just the right program for people who have worked so hard to reach the dream of home ownership, and are so close to making it happen. With our help, we can boost these dreams right over the top.”

The participating lenders include the following:

Air Academy Federal Credit Union, 720-489-0712, 303-757-0300, 303-674-8733
Bank of Commerce Mortgage
Citywide Home Loans
Cornerstone Home Lending, 970-797-3717
Ent Federal Credit Union, 800-525-9623
Peoples Mortgage
Real Estate Mortgage Network (REMN)
Rocky Mountain Mortgage Specialists, Inc.
Summit Mortgage Corporation, 303-779-0591, 720-200-9480
The Mortgage Network, 303-990-2992
Universal Lending Corporation
WR Starkey Mortgage

Buyers are encouraged to contact these lenders directly and indicate their interest in the Metro Mortgage Assistance Plus program.

Single-family homes, condominiums, townhomes and manufactured homes qualify for the program, with the requirement that the owner occupy the home as a primary residence. Mortgage refinancing does not qualify.

The renewable fund will be available on a first-come, first-served basis through December 31, 2014, or while funds remain. For more information on the Metro Mortgage Assistance Plus Program, visitwww.denvergov.org/housing.

Posted in Denver Housing, Denver Real Estate, Denver Renters, Denver Residential Real Estate, Mortgage, Uncategorized | Tagged | 2 Comments

Tom Cryer of Kentwood Real Estate Appointed to Metro Vision Planning Advisory Committee

Posted on March 18, 2013 by Dee & Tom Cryer

March 18, 2013

FOR IMMEDIATE RELEASE

(For more information contact Douglas E. Lierle at lierlepr@comcast.net)

Tom Cryer of Kentwood Real Estate Appointed to

Metro Vision Planning Advisory Committee

Leading Real Estate Professional will Assist Denver Regional Council of

Governments with its Metro Vision 2040 Planning Process

 

Tom Cryer, SCRP

Tom Cryer, SCRP

DENVER – Tom Cryer, a leading real estate professional with The Kentwood Company in the Denver Tech Center, has been appointed to the Metro Vision Planning Advisory Committee (MVPAC) of the Denver Regional Council of Governments (DRCOG), a nonprofit association of local governments dedicated to making the nine-county Denver region a great place to live, work and play.

The MVPAC is the primary policy committee of the DRCOG.  It provides recommendations to the regional council board of directors for action on Metro Vision issues, plans and implements strategies, and works on transportation projects and water quality issues.  Metro Vision is the region’s long-term growth and development plan.

Throughout its 58-year history, DRCOG has worked to promote a regional perspective toward the most pressing issues facing the metropolitan area and to address those issues through cooperative local government action.  The organization is funded by membership dues and federal and state grants.

“I am pleased to be joining the Metro Vision committee and look forward to contributing to this forward looking group of civic-minded residents,” said Cryer.  “We will work on ways to involve citizens in the planning process and develop outreach efforts and establish stakeholder engagement opportunities.  It’s great to see local officials working together to address the region’s challenges for today and tomorrow.”

Cryer is a Senior Certified Relocation Professional and has garnered numerous awards from the Employee Relocation Council over the years.  He has served as President of the Relocation Appraisers and Consultants organization and has served the diverse real estate needs of clients since 1976.  Cryer earned his bachelor’s degree from the University of Denver.

For more information on real estate services from Tom Cryer, phone 303-638-3202 or contact Tom via email at Tom@DenverRealEstate.com.

Kentwood Real Estate is dedicated to its legacy of being “Colorado’s Premier Real Estate Company” through the highest producing, most knowledgeable, caring and experienced sales team in the country, offering the highest quality customer service experience.  Kentwood Real Estate is an innovator known for unparalleled marketing strategies and superior Internet technology that places its clients in the best possible position.

Kentwood Real Estate is comprised of The Kentwood Company in the Denver Tech Center, The Kentwood Company at Cherry Creek, and Kentwood City Properties in downtown Denver.  For more information, visit Kentwood Real Estate online at www.DenverRealEstate.com.

# # #

 

Posted in Uncategorized | Tagged , , , , , , , , , | 1 Comment

Denver Resale & New Home Inventory Has Never Been Lower

Posted on March 9, 2013 by Dee & Tom Cryer
Super Joe Hubert

Super Joe Hubert

Super Joe Hubert of Land Title Guarantee Company posts his monthly report. It clearly confirms my year end 2012 analysis of the Denver Market. Buyers are frustrated. Sellers are fending off multiple offers. Brokers offer an empathetic ear to find new solutions.

Meanwhile interest rates are still lower than last year t this time. It’s simply put a great time to be in Denver’s residential market. If you are a buyer, locking in long term rates today will pay dividends in the future. If you can be a seller, your prices are better than they’ve been in five years.

So follow along with Joe’s analysis, and focus on the facts! Just the facts….

Hi Tom,

There’s three seconds left on the clock and the score is tied. Everything is on the line with this last shot. The player dribbles the ball to mid-court and throws the ball as the clock reads zero…. Swoosh! The crowd goes wild!

March Madness is right around the corner and just as the college basketball players will be feeling pressure on the court this month, we know many of you are feeling pressure out there in the real estate market with low inventory and high demand. Land Title wants to help you succeed in your bracket of buyers and sellers.

Contact me for ideas on how to stand out in today’s market and tools to help you succeed.

Wishing you many “wins” in March!

Sincerely,
Joe

February – 2013 Real Estate Market Update

Entire MLS (All Areas)

Residential Highlights:

  • 19.5% increase in the number of closed sales year-over-year
  • 18.5% increase in the number of closed sales year to date
  • 23.6% decrease in average days on market (81)
  • 31.4% decrease in active listings
  • 11.7% increase in average price – sold

Condo Highlights:

  • 16.8% increase in number of closed sales year-over-year
  • 22.1% increase in number of closed sales year to date
  • 27.7% decrease in average days on market (73)
  • 37.9% decrease in number of active listings
  • 8.8% increase in average price – sold

Click here for Full report of entire MLS

Posted in Denver Housing, Denver Real Estate, Denver Renters, Denver Residential Real Estate, Uncategorized | Tagged , , , , , , , , | Leave a comment

The Sky Is Not Falling – 6 Home Deduction Traps and How to Avoid Them

Posted on February 13, 2013 by Dee & Tom Cryer
Urgent Notice

Contrary to Henny Penny, The Sky Is Not Falling!

Get an “A” on your Schedule A Form: Dodge these tax deduction pitfalls to save time, money, and an IRS investigation.

Trap #1: Line 6 – real estate taxes

Your monthly mortgage payment often includes money for a tax escrow, from which the lender pays your local real estate taxes.

The money you send the bank may be more than what the bank pays for your taxes, says Julian Block, a tax attorney and author of Julian Block’s Home Seller’s Guide to Tax Savings. That will lead you to putting the wrong number on Schedule A.

Example:

  • Your monthly payment to the lender: $2,000 for mortgage + $500 escrow for taxes
  • Your annual property tax bill: $5,500

Now do the math:

  • Your bank received $6,000 for real estate taxes, but only paid $5,500. It may keep the extra $500 to apply to the next tax bill or refund it to you at some point, but meanwhile, you’re making a mistake if you enter $6,000 on Schedule A.
  • Instead, take the number from Form 1098—which your bank sends you each year—that shows the actual taxes paid.

Trap #2: Line 6 – tax calculations for recent buyers and sellers

If you bought or sold a home in the middle of 2012, figuring out what to put on line 6 of your Schedule A Form is tricky.

Don’t simply enter the number from your property tax bill on line 6 as you would if you owned the house the whole year. If you bought or sold a house in midyear, you should instead use the property tax amount listed on your HUD-1 closing statement, says Phil Marti, a retired IRS official.

Here’s why: Generally, depending on the local tax cycle, either the seller gives the buyer money to pay the taxes when they come due or, if the seller has already paid taxes, the buyer reimburses the seller at closing. Those taxes are deductible that year, but won’t be reflected on your property tax bill.

Trap #3: Line 10 – properly deducting points

You can deduct points paid on a refinance, but not all at once, says David Sands, a CPA with Buchbinder Tunick & Co LLP. Rather, you deduct them over the life of your loan. So if you paid $1,000 in points for a 10-year refinance, you’re entitled to deduct only $100 per year on your Schedule A Form.

Trap #4: Line 10 – HELOC limits

If you took out a home equity line of credit (HELOC), you can generally deduct the interest on it only up to $100,000 of debt each year, says Matthew Lender, a CPA with EisnerLubin LLP.

For example, if you have a HELOC for $200,000, the bank will send you Form 1098 for interest paid on $200,000. But you can deduct only the interest paid on $100,000. If you just pull the number off Form 1098, you’ll deduct more than you’re entitled to.

Trap #5: line 13 – Private mortgage insurance

You can deduct PMI on your Schedule A Form, as long as you started paying the insurance after Dec. 31, 2006. Congress renewed the PMI deduction for 2012 and 2013 for people making less than $110,000.

Since you’re thinking about it, this is also a good time to review your PMI: You might be able to cancel your PMI altogether because you’ve had a change in loan-to-value status.

Trap #6: line 20 – casualty and theft losses

You can deduct part or all of losses caused by theft, vandalism, fire, or similar causes, as well as corrosive drywall, but the process isn’t always obvious or simple:

  • Only deduct losses that are greater than 10% of your adjusted gross income (line 38 of Form 1040).
  • Fill out Form 4684, which involves complex calculations for the cost basis and fair market value.  This form gives you the number you need for line 20.

Bottom line on line 20: If you’ve got extensive losses, it’s best to consult a tax pro. “I wouldn’t do it myself, and I’ve been dealing with taxes for 40 years,” says former IRS official Marti.

This article provides general information about tax laws and consequences, but shouldn’t be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice.

Let’s thank Barbara Eisner Bayer for this valuable information!

Published: December 21, 2012

Posted in Buying or Selling Real Estate, Centennial, Cherry Hills Village, Colorado, Denver, Denver Housing, Denver Residential Real Estate, Greenwood Village | Tagged , , , , , , , | 1 Comment