New Listing! Opportunity Abounds With This One Story Farm House on 8.54 Irrigated Acres, Just Minutes to Jacksonville | $499,000 | Whether your dream is a produce stand, family farm or vineyard, this property has location, location, location! From the minute you enter this 3 bedroom, 2 bath 1742 sf home, your eyes are drawn to the beautiful pastoral views and you feel a million miles away. The home has been beautifully updated and enjoys pastoral views from almost every room. The property is fenced and cross fenced with vinyl fencing. The property features a large pole barn, 2 car garage, and shop. Seller financing may be available with a large down. Bring your family and your dreams!
Tax season is upon us once again and to make it even more interesting this year, the tax code has changed, along with the rules about tax deductions for homeowners. Many homeowners who used to write off their property taxes and the interest they pay on their mortgage, will no longer be able to.
Standard Deduction Increased
It’s not that you can’t itemize and write off your mortgage interest or property taxes, it’s that the standard deduction, that amount everyone gets, nearly doubled under the new law. It’s now $24,000 for married, joint-filing couples (up from $13,000), and $12,000 for singles (up from $6,500).
Many more people will now get a better deal taking the standard deduction than they would with itemizing all their deductions. The Federal Government predicts the number of homeowners who will be able to deduct their mortgage interest and property taxes under the new rules will fall from around 32 million to about 14 million, that’s about a 56% drop
Single people may get more tax benefits from buying a house than a married couple as you can reach, and potentially exceed, the $12,000 standard deduction more quickly.
Personal Exemption Repealed
One caveat to the increase in the standard deduction for homeowners and non-homeowners is that the personal exemption was repealed. No longer can you exempt from your income $4,150 for each member of your household, and that might temper the benefit of a higher standard deduction, depending on your particular situation.
For example, a single person might still come out ahead. Her/His $5,500 increase in the standard deduction is more than the $4,150 lost by the personal exemption repeal.
But consider a family of four with two kids and in a 22% tax bracket. They no longer have a personal exemption of $4,150 or $16,600 total for the four of them. Although the increase in the standard deduction is worth $2,420 ($11,000 x 22%), the loss of the exemptions would cost them an extra $3,652 ($16,600 x 22%), so they lose $1,232 ($3,652 – $2,420).
So, bottom line, your household composition will affect your tax status.
Mortgage Interest Deduction
The new law caps the mortgage interest you can write off at loan amounts of no more than $750,000. However, if your loan was in place by Dec. 14, 2017, the loan is grandfathered, and the old $1 million maximum amount still applies. In Southern Oregon, most people don’t have a mortgage larger than $750,000; they won’t be affected by the cap.
But if you live in a pricey area like San Francisco, where the median housing price is well over a million bucks, or you just have a seriously expensive house, the new federal tax laws mean you’re not going to be able to write off interest paid on debt over the $750,000 cap.
State and Local Tax Deduction
The state and local taxes you pay, like income, sales, and property taxes, are still itemizable write-offs. But, for the tax year 2018, you can’t deduct more than $10,000 for all your state and local taxes combined, whether you’re single or married. (It’s $5,000 per person if you’re married but filing separately.) If you make a lot of money, this will hurt you as your deduction will be capped at $10,000 but a $10,000 cap will not affect others.
Rental Property Deduction doesn’t change
The news doesn’t change for landlords. There continue to be no limits on the amount of mortgage debt interest or state and local taxes you can write off on rental property. And you can keep writing off operating expenses like depreciation, insurance, lawn care, and utilities on Schedule E.
Home Equity Loans
You can continue to write off the interest on a home equity or second mortgage loan (if you itemize), but only if you used the proceeds to substantially better your home and only if the total, combined with your first mortgage, doesn’t go over the $750,000 cap ($1 million for loans in existence on Dec. 15, 2017). If you used proceeds to pay medical expenses, take a cruise, buy a BMW or anything other than home improvements, that interest is no longer tax deductible.
The new rules don’t grandfather in old home equity loans if the proceeds were used for something other than substantial home improvement – you can no longer deduct the interest.
All the new tax laws take effect in January of 2018 but here is the catch, they all expire in January of 2025, so in six more years we’re back to the old tax code.
Broker / Manager
This week’s update shows us that bank rates are still declining overall, if slowly.
A lot of outdoor enjoyment was lost last summer due to the smoke filled skies in our valley, but what is noteworthy is how few homes have been destroyed by forest fires in Southern Oregon compared to the homes lost by fires in California. Every summer we have many lighting caused fires, causing hundreds of acres to burn but very few homes are ever destroyed.
This is not the case in California where every fire seems to be becoming larger and more devastating than the last. None has had such a direct effect on Southern Oregon as the November 8th Camp fire that destroyed nearly 12,000 homes and 500 businesses in the Northern California town of Paradise. This sleepy town was a lower-income, retiree-based city with a population just over 26,000 tucked into the Sierra foothills at 2,000 feet elevation. Now that the town, homes and businesses are gone, the future of Paradise is unclear and there is a mass relocation movement headed north. Most of California is too expensive for retirees, so moving a couple hours north to Southern Oregon makes a lot of sense; our valley has a similar feel with the mountains, small towns, and outdoor living. We have been filling our rental homes and furnished rentals with Paradise refugees who need a place to land and restart their lives. Some have already received insurance checks and are looking to purchase a home, but many are still waiting, which makes it really hard to start over without means.
It’s heart-warming to welcome the Paradise refugees to their new home in our valley, but it’s also heart-wrenching to hear their stories of loss of friends, pets, personal property and losing their sense of home. One couple in a furnished rental is busy populating the bookshelves with an old book collection saved from the fires. They lost many of their personal belongings, but managed to save some prized books. Another refugee asked for a rental home that is “secluded where no one could hear her cry”. Many of the new refugees have owned their own homes for years and not rented since they were in their teens, so they are unfamiliar with the process and the cost. There are heartwarming stories as well, such as one couple’s neighbor that went back to her burned out home every day to see if her dog had returned, and then finally, he came walking out of the woods to a tearful reunion.
If you run into a Paradise refugee, make sure you welcome them with open arms knowing what they have been through and what they have lost. Knowing them makes me feel grateful that I have all my family, friends, pets, and possessions intact. I also feel grateful to our local fire-fighters who have kept our homes safe, year after year – please keep up the good work!
– Graham Farran
A remake of the successful French film, “The Intouchables”, Brian Cranston stars as a billionaire who is struggling with depression after an accident leaves him crippled.
Beautiful Craftsman in Nunan Square on an End Lot Next to Jackson Creek | MLS 2999150 | $558,000 | Beautiful craftsman in desirable Nunan Square. Located at the end of a quiet dead end street bordering Jackson Creek and Blackstone Alley, this is arguably the best lot in the neighborhood. This home has been meticulously maintained and shows pride of ownership. With two master suites, one downstairs and one upstairs it is perfectly situated for one story living, multi-family or guests. There is also an enclosed sun/flex room with heat that can be used as another bedroom, office or exercise room and a balcony/ deck, both with great views. The many upgrades include gas fireplace with custom mantle, phantom screen doors on the front and back, central vac and gorgeous landscaping. The private back yard and patio is perfect for entertaining or enjoying your morning cup of coffee. Detached, two car garage offers plenty of room for your toys or extra storage. Nunan Square offers the best of Jacksonville living just minutes to the Britt Festival, shopping and fine dining.
One of a Kind Contemporary Designed Home Displaying Breathtaking Views of the Valley | MLS 2999272 | $1,199,000 | Situated in a hilltop setting, blanketed with Madrone trees, this stunner has absolute privacy behind an automatic wrought iron gate. This modern style home has been updated with new furnaces, fresh paint inside and out, beautiful new hand-scraped Acacia hardwood floors, tile, and new carpeting in 2017. Fantastic floor plan with vaulted ceilings and double-sided gas fireplace. Gourmet kitchen is perfect for entertaining and includes 60 in Viking gas range, wine fridge, huge island, and plenty of beautiful cabinetry. 10,000 sf RV pad located at the bottom of property allows for easy storage for all your toys. Paved driveway leads to detached two car shop/garage w/oil pit, hoist, office and full bath. Two storage units, green house, built-in oversized hot tub, and a lifetime copper roof on all buildings.
Golf Course Views Abound From this Custom Home! | MLS 2996873 | $649,000 | Golf course views abound from this custom home situated across from the 17th green of the award-winning Eagle Point Golf Course. Designed w/entertaining in mind, this home is sure to please the most discerning buyer. High-end finishes include slab granite & travertine counters & shower surrounds, lime-based plaster walls & ceilings, central vac, & laundry rooms on each level. Main level offers a split floor plan boasting a large kitchen w/raised breakfast bar & dining area; formal dining room; spacious living room; main floor master suite w/walk-in closet, jetted tub, two sinks, walk-in shower, & separate water closet; guest bedroom; & full guest bath. Second level offers a huge bonus room w/48” gas fireplace, built-in cabinets, & covered balcony with golf course & Mt McLoughlin views; large wet bar w/dishwasher & space for an under-counter fridge; 2 guest bedrooms; full guest bath; & large covered balcony over the covered patio below. You won’t want to miss this great home!
New Price! Charming Cottage on Spacious Lot – 1/2 Mile to Downtown | MLS 2998754 | $359,000 | Charming cottage on a spacious lot in Jacksonville, just a half-mile to the Britt Gardens, and downtown shopping and dining. Recently updated, this home has a new roof, windows, water heater, finished garage, new vapor barrier in the crawlspace, newer heat pump, and a new deck at the front entry. The kitchen offers slab granite counters with ample space for meal prep, a farmhouse sink overlooking the backyard, and stainless appliances, including range/oven, hood vent, refrigerator and wine refrigerator. The two bedrooms are separated by a cute bathroom with tub/shower, and vanity with farmhouse sink. Plenty of room to play in the large backyard, complete with a deck, fire pit, pond, storage shed, and a fun treehouse. The side yard is ready for you to plant your garden and house your chickens! Come see this home today and start enjoying the Jacksonville life!
New Price! Beautiful Custom Home with New 40-Yr Roof Located in Jacksonville | MLS# 2985143 | $444,900 | Fantastic location in Jacksonville! This beautiful custom home is located on a low-traffic street in an upscale neighborhood near Historic Downtown Jacksonville shops and restaurants, Britt Gardens and trails and the dog park! An expansive great room greets you as you enter your new home w/open concept living on hardwood floors w/vaulted ceilings and tons of natural light! The large kitchen boasts granite counters, pantry, tons of counter space/storage and a large island. The ample main level master has new carpet, a huge bay window w/seating and storage and large bathroom w/walk-in shower. Main level also has a big utility/laundry room, guest bath and elevator for ease of access to downstairs! The lower level features two additional light and bright bedrooms, w/French doors in one and easy access to the backyard and patio. The third room would make a fantastic media room and there is storage galore! A two car garage and large deck off the kitchen complete this beautiful home!
Charming Craftsman w/ Huge Kitchen & Daylight Basement! | $245,000 | MLS 2998692 | From the roomy front porch, perfect for a couple of rocking chairs, to the original, multi-paned windows, refinished wood floors and cozy gas fireplace, this beauty won’t disappoint. The main floor feels open and spacious with plenty of light and a huge kitchen with pantry and beautiful brick wall. All of the living is on the main floor with 2 bedrooms and 1 bath upstairs and an additional bedroom/office or bonus room downstairs as well as plenty of basement storage. Home is turnkey with newer paint and siding, new gas fireplace insert and new water heater in 2016. Plenty of room for outdoor living with the large back yard with alley access and the detached garage with workshop. This home has been meticulously cared for and is waiting for its new owner.