Kelly J. Yao
Coldwell Banker Realty

Wealth Builder with Suze Orman

Join the Coldwell Banker
Wealth Builder Virtual Expo
on June 17, 2021
 
Coldwell Banker
Grow and Protect Your Personal Wealth

The financial decisions you make today directly impact your future. Hear what Suze Orman, one of the world’s most recognized financial experts, has to say about building your path to financial success.

Learn fundamentals and strategies that will help you thrive in today’s economic realities.

When: Thursday, June 17 | 2 pm ET / 11 am PT
Where: Live Broadcast Event Link to be Provided

Space is limited for this private event.
Reserve your spot today!
Click to RSVP
Presented by:
Guaranteed Rate Affinity
NMLS ID 1598647
KELLY J YAO
REALTOR®
CalRE: CA-01958090
Cell: 415-999-9388
Kelly.Yao@cbnorcal.com
http://www.kellyjyao.com
  
This Wealth Builder Expo is a private, invitation-only event for Coldwell Banker employees, customers, clients and licensed real estate agents in the markets we serve. The information provided is not intended as financial advice – consult a financial advisor or tax professional. This piece of collateral should not be shared on social media or publicly. Guaranteed Rate Affinity, LLC; NMLS ID 1598647 / NMLS Consumer Access / Licensing Information. Equal Housing Lender. Coldwell Banker Realty and Guaranteed Rate Affinity, LLC share common ownership and because of this relationship the brokerage may receive a financial or other benefit. You are not required to use Guaranteed Rate Affinity, LLC as a condition of purchase or sale of any real estate. Affiliated real estate agents are independent contractor sales associates, not employees. ©2021 Coldwell Banker. All Rights Reserved. Coldwell Banker and the Coldwell Banker logos are trademarks of Coldwell Banker Real Estate LLC. The Coldwell Banker® System is comprised of company owned offices which are owned by a subsidiary of Realogy Brokerage Group LLC and franchised offices which are independently owned and operated. The Coldwell Banker System fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Disclaimer21H6P8_NORCAL_4/21 CalRE #01908304

 

Capital Gains Tax on Real Estate

Updated February 22, 2021

 

How Much Is Capital Gains Tax on Real Estate?

Capital gains tax is the income tax you pay on gains from selling capital assets—including real estate. So if you have sold or are selling a house, what does this mean for you?

If you sell your home for more than what you paid for it, that's good news. The downside, however, is that you probably have a capital gain. And you may have to pay taxes on your capital gain in the form of capital gains tax.

 

What is capital gains tax—and who pays it?

In a nutshell, capital gains tax is a tax levied on possessions and property—including your home—that you sell for a profit.

If you sell it in one year or less, you have a short-term capital gain.

If you sell the home after you hold it for longer than one year, you have a long-term capital gain. Unlike short-term gains, long-term gains are subject to preferential capital gains tax rates.

 

What about the primary residence tax exemption?

The IRS gives each person, no matter how much that person earns, a $250,000 tax-free exemption on capital gains from a primary residence. You can exclude this capital gain from your income permanently. You do have to meet specific requirements to claim this capital gains exemption:

  • The home must be your primary residence.
  • You must have owned it for at least two years.
  • You must have lived in it for at least two of the past five years.
  • You cannot have taken this exclusion in the past two years. 

If you don't meet all of these requirements, you may be able to take a partial exclusion for capital gains tax if you meet certain exceptions (e.g., if your job forces you to move before you live in the home two years). For more information, consult a tax adviser.

 

Do home improvements reduce tax on capital gains?

You can also reduce the amount of capital gains subject to capital gains tax by the cost of home improvements you've made. You can add the amount of money you spent on any home improvements—such as replacing the roof, building a deck, replacing the flooring, or finishing a basement—to the initial price of your home to give you the adjusted cost basis. The higher your adjusted cost basis, the lower your capital gain when you sell the home.

 

How to avoid capital gains tax as a real estate investor

If the home you're selling is not your primary residence but rather an investment property you've flipped or rented out, avoiding capital gains tax is a bit more complicated. But it's still possible. The best way to avoid a capital gains tax if you're an investor is by swapping "like-kind" properties with a 1031 exchange. This allows you to sell your property and buy another one without recognizing any potential gain in the tax year of sale.

If you’re opting out of the rental property investment business and putting your money in another venture that does not qualify for the 1031 exchange, then you’ll owe the capital gains tax on the profit.

 

For more information on how real estate tax may affect your current situation, please consult a tax advisor or tax attorney.  

Food Drive February 9-28, 2021

CB Bug
Join the Coldwell Banker charity drive and provide nutritious food to those facing hunger.
 
Coldwell Banker
Announcing an online food bank drive
to support our community
February 9-28

You are invited to donate to local organizations whose efforts bring warmth and comfort into the lives of local children, families and seniors.

Thank you for helping our neighbors stay healthy and hunger-free! Visit our website or reply to this email for further donation information.
Click for Details
KELLY J YAO
REALTOR®
CalRE: CA-01958090
Cell: 415-999-9388
Kelly.Yao@cbnorcal.com
http://www.kellyjyao.com
  
Participants agree that by participating, you hereby grant Realogy Brokerage Group LLC the right to use your name and photo in promotional materials. Affiliated real estate agents are independent contractor sales associates, not employees. ©2021 Coldwell Banker. All Rights Reserved. Coldwell Banker and the Coldwell Banker logos are trademarks of Coldwell Banker Real Estate LLC. The Coldwell Banker® System is comprised of company owned offices which are owned by a subsidiary of Realogy Brokerage Group LLC and franchised offices which are independently owned and operated. The Coldwell Banker System fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Disclaimer21AUY3_SFPEN_1/21 CalRE #01908304

Understanding Proposition 19

On November 3, 2020, California voters approved Proposition 19, titled the Home Protection for Seniors, Severely Disabled, Families and Victims of Wildfire or Natural Disasters Act. Proposition 19 is a constitutional amendment that has several different provisions affecting different parties, including wildfire victims and severely disabled people, seniors looking to relocate within California, and children or grandchildren who will eventually inherit property. 

 

Current law allows a primary home to be transferred – by sale, gift or inheritance - between parents and children, and between grandparents and grandchildren, without reassessment, and other types of properties, such as a vacation home, rental or commercial property, to be transferred with the first $1 million exempt from re-assessment.  Under Proposition 19, these tax breaks will be limited with fewer tax savings opportunities. 

 

Proposition 19 will allow homeowners who are over 55 years of age, disabled, or victims of a wildfire or natural disaster to sell their primary residence and transfer its assessed value to a replacement primary residence in any county in California up to three times.

 

The new law will: 

  1. Replace Proposition 58(1986) and Proposition 193(1996) by ​eliminating parent-and-child transfer and grandparent-to-grandchild transfer exemptions unless it is the child’s or grandchild’s primary residence.
    - Effective 2/16/2021
  2. Replace Proposition 60(1986) and Proposition 90 (1988) programs for home transfer by seniors and severely disabled persons.
    - Effective 4/1/2021

 

For more information on how this proposition may affect your current situation, please consult the State Board of Equalization’s website and/or legal counsel

November 10-29, 2020

CB Bug
Join Coldwell Banker in celebrating the spirit of the season.
 
Coldwell Banker
You are invited to a festive holiday event.

On December 18, Santa Claus will visit our website to host a magical reading of two winter tales. Each child registered will be mentioned by name (first name only) in the storyline.

Let us know if you would like to delight your favorite little people with this very special storytelling!

Name/s Submission Dates: November 10-29
Event Date: December 18

And in keeping with the holiday spirit, you are invited to show your support to local charities by donating funds online. All donations will go toward lending a helping hand to those who need it most.

Reply to this email or visit our website for further information!
Click for Details
KELLY J YAO
REALTOR®
CalRE: CA-01958090
Cell: (415) 999-9388
Kelly.Yao@cbrealty.com
www.kellyjyao.com
 
Participants agree that by participating, you hereby grant Realogy Brokerage Group LLC the right to use your name and photo in promotional materials. Affiliated real estate agents are independent contractor sales associates, not employees. ©2020 Coldwell Banker. All Rights Reserved. Coldwell Banker and the Coldwell Banker logos are trademarks of Coldwell Banker Real Estate LLC. The Coldwell Banker® System is comprised of company owned offices which are owned by a subsidiary of Realogy Brokerage Group LLC and franchised offices which are independently owned and operated. The Coldwell Banker System fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Disclaimer206HWA_SFPEN_10/20 CalRE #01908304

 

September 8-30, 2020

CB Bug
Help support Coldwell Banker's Homes for Dogs Project.
 
Coldwell Banker
Announcing a Pet Supplies Collection Benefiting Local Animal Shelters

September 8-30

Our Homes for Dogs Project is dedicated to connecting adoptable pets with their forever families. Join us in celebrating the love that launched this annual initiative!

This year we've put together a list of local shelters that are accepting online donations of supplies and funds to help support our furry friends.

Contact me for further information and visit our website for all the details.
Click for Details
CB
KELLY J YAO
REALTOR®
CalRE: CA-01958090
Cell: (415) 999-9388
Kelly.Yao@cbrealty.com
www.kellyjyao.com
 
Participants agree that by participating, you hereby grant Realogy Brokerage Group LLC the right to use your name and photo in promotional materials. Affiliated real estate agents are independent contractor sales associates, not employees. ©2020 Coldwell Banker. All Rights Reserved. Coldwell Banker and the Coldwell Banker logos are trademarks of Coldwell Banker Real Estate LLC. The Coldwell Banker® System is comprised of company owned offices which are owned by a subsidiary of Realogy Brokerage Group LLC and franchised offices which are independently owned and operated. The Coldwell Banker System fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Disclaimer 202XSK_SFPen_8/20 CalRE #01908304

 

What is Credit Freeze and Credit Lock?

Updated July 9, 2020

 

What is a Credit Freeze?

A credit freeze prevents access to your credit report and can help protect you from identity theft. By law, you can request a credit freeze, also known as a security freeze, at no cost from all three major credit bureaus: Experian®, Equifax®, and TransUnion®. When you request a security freeze on your credit report from one of the bureaus via phone or email, you receive a personal identification number (PIN) or password for future "unfreezing." Credit freezes can also be requested for children under the age of 16. When you place a freeze, the bureaus must complete your request within 24 hours.

To lift the freeze and allow potential lenders to access your credit report, you will need to use the PIN or password provided to you. If you don't have the PIN, you will be required to supply additional verification to process your request. You must contact all three separately to initiate a freeze. When you request a credit freeze lift via phone, your request must be lifted within one hour.

What is a Credit Lock?

The main similarity between a credit lock and a credit freeze is restricted access to your credit report. However, credit lock, a service offered by the three major credit bureaus, allows you to instantly lock and unlock your file so you can control who can access it.

The most beneficial factor of a credit lock is that you can coordinate with lenders, such as banks, auto dealers, and retail card lenders to grant access to your credit score to process applications. When the process is complete, you can immediately turn off access

Who Can Still See My Credit Report?

It's important to know that although access to your credit file is blocked for new loan and credit applications with both a credit lock and credit freeze, certain entities are still able to check your file, including:

  • Creditors you have an established relationship with
  • Landlords or rental agencies conducting background checks
  • Utility and phone companies
  • Debt collection agencies seeking payments
  • Child support agencies looking to set child support amounts
  • Lenders and credit companies who have prescreened credit offers for you
  • Insurance underwriters who have your permission to act on your behalf
  • Potential employers acting with your permission
  • Government entities operating according to court orders or warrant

When Should I Lock My Credit?

If you know or suspect that your Social Security number or other information that uniquely identifies you (personally identifiable information) has been compromised in a data breach, you should consider locking or freezing your credit. You may prefer credit lock to a credit freeze if you plan to apply for loans or credit cards and want the ability to block and give access to your credit files in real-time.

SBA’s Economic Injury Disaster Loans

Updated June 15, 2020

 

SBA’s Economic Injury Disaster Loans and Advance Program Reopened to All Eligible Small Businesses and Non-Profits Impacted by COVID-19 Pandemic

 

To further meet the needs of U.S. small businesses and non-profits, the U.S. Small Business Administration reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible applicants experiencing economic impacts due to COVID-19 today.

“The SBA is strongly committed to working around the clock, providing dedicated emergency assistance to the small businesses and non-profits that are facing economic disruption due to the COVID-19 impact.  With the reopening of the EIDL assistance and EIDL Advance application portal to all new applicants, additional small businesses and non-profits will be able to receive these long-term, low interest loans and emergency grants – reducing the economic impacts for their businesses, employees and communities they support,” said SBA Administrator Jovita Carranza.  “Since EIDL assistance due to the pandemic first became available to small businesses located in every state and territory, SBA has worked to provide the greatest amount of emergency economic relief possible.  To meet the unprecedented need, the SBA has made numerous improvements to the application and loan closing process, including deploying new technology and automated tools.”

SBA’s EIDL program offers long-term, low interest assistance for a small business or non-profit.  These loans can provide vital economic support to help alleviate temporary loss of revenue.  EIDL assistance can be used to cover payroll and inventory, pay debt or fund other expenses.  Additionally, the EIDL Advance will provide up to $10,000 ($1,000 per employee) of emergency economic relief to businesses that are currently experiencing temporary difficulties, and these emergency grants do not have to be repaid.

 

Covid-19 in CA

Updated May 6, 2020

 

California Health and Human Services Agency is releasing hospital data, county maps, and cases by county information as an open dataset.

 

Find a Testing Site

Governor Newsom announced a new website to help Californians find a testing site near them.

 

Do:

  • Stay home
  • Avoid people outside your household
  • Wash hands with soap and water for at least 20 seconds
  • Cover your cough or sneeze with a tissue
  • Clean and disinfect frequently touched objects and surfaces
  • Maintain a safe social distance of 6 feet whenever outside of the house
  • Wear a cloth face covering if you go outside

Do Not:

  • Leave the house except for essential activities
  • Shake hands
  • Touch your face
  • Go to doctor unless you call first
  • Stockpile masks or gloves

Real Estate - Virtual Showings Only

Updated April 21, 2020

 

SAN FRANCISCO UPDATE ON REALTOR® GUIDANCE - VIRTUAL SHOWINGS ONLY

 
The San Francisco City Attorney's office working on COVID19 Emergency Management has provided the following additional guidance regarding REALTOR® activities in San Francisco. 
  
S.F. City Attorney Guidance:

 
1. Are real estate photographers permitted in homes?
Yes, real estate photographers are necessary to enable virtual viewings and marketing to occur. 

 
2. Are real estate stagers permitted in homes?
No, stagers are not necessary to enable residential real estate transactions. 

 
3. Are inspectors/appraisers permitted in homes? 
Yes, inspectors and appraisers are necessary to enable residential real estate transactions to occur.

The Existing Order Continues To Prohibit Most In-Person Showings: 
- All Realtor activities must be conducted virtually if feasible. 
- Vacant properties may be shown to prospective buyers only if NOT feasible (possible) to show virtually, and then only with significant procedural and safety measures. 
- NO in-person showings of Occupied properties.

For any questions, it is strongly recommended you consult your broker/manager or legal counsel. The above is general information and may not be applicable to every specific property or situation.

1031 Extensions Granted!

Important 1031 information regarding IRS extended deadlines

Great News!

The IRS issued Notice 2020-23, extending a variety of deadlines, including 1031 deadlines.  Although the Notice is confusing, because it is not written like the typical Disaster Relief Notices, this Notice extends any 45-day or 180-day deadline that occurs between April 1 and July 14, to July 15, 2020

We are working with other real estate professionals to convince the IRS to change the start date from April 1st to January 20th so that the extensions apply to more taxpayers.

Please note that this is different from the usual disaster extension that provides for an extra 120 days.

Here are two examples to illustrate the current extension.

  • Example 1: Exchange began April 1, 2020. 45th day is May 16, which would be extended to July 15, 2020. Taxpayer must still close on replacement property by Sept 28, which is the 180th day; because Sept 28 is after the last day of the disaster period (July 15).
  • Example 2: Exchange began Dec 31, 2019, 45th day is Feb 14, 2020. ID period is not extended because it is before April 1. The 180th day is June 28, which would be extended to July 15, 2020.

As always, exchangers should speak with their tax advisors to determine if they are eligible for an extension.

This remains a fluid situation and we will provide any clarification or changes that the IRS issues, if any.

IRS Disaster Relief Updates

THE STIMULUS BILL

 

Updated April 13, 2020

 

THE STIMULUS BILL: WHAT YOU NEED TO KNOW

The recently passed $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act is 800 pages long. If you’re like me, your head is swimming with all the details floating around and trying to figure out what all of this means to you and your family. Hopefully, this will shed some light.

Housing Provisions – The act allows for mortgage forbearance for borrowers of government-backed mortgages and owners of multifamily properties, and places a moratorium on eviction filings and fees/penalties for tenants for rent nonpayment for properties backed by HUD. There are also provisions for rental assistance for seniors, the disabled and low-income working families, and more. Visit the link below for more details.

How Much Would I Get – Single individuals would receive a one-time payment of $1,200 and married couples would receive $2,400. In addition, parents would receive $500 for each child under 17. Payments start phasing out for individuals making more than $75,000, and those making more than $99,000 would not qualify at all. According to the Treasury Secretary, most payments would be received via direct deposit sometime in mid-April.

For Those Who Have Lost a Job – In addition to state unemployment benefits, which vary by state, the

federal government would give jobless workers an additional $600 a week for up to four months. The act also includes a pandemic unemployment assistance program that provides jobless benefits to those partially unemployed, self-employed and others affected by the virus who don’t qualify for traditional benefits.

Help For Small Businesses – Under the stimulus package, the Small Business Association will oversee the Paycheck Protection Program, which will distribute $350 billion to small businesses that can be partially

forgiven if the companies meet certain requirements. The loans will be available to companies with 500 or fewer employees.

Student Loan Payments – The Department of Education would suspend payments on student loan borrowers without penalty through September 30.

For more information on the act, click here. I hope that you and your family stay well during these challenging times. If you need someone to talk to – whether it’s about real estate, the news or your favorite new binge watch – I am always here for you. We’re all in this together!

Real Estate is Essential

CB Bug
 
Real Estaate Support in a Virtual World
Providing exceptional real estate service has always been my top priority, but right now, it's the health and safety of my clients, family, friends, and our community as a whole. At Coldwell Banker ®, we already have a very strong digital platform in place, so I am well-equipped to serve my clients virtually, even during these challenging times.

  • New Listings - Our exclusive marketing program enables me to reach potential buyers quickly to get the news out when a new property hits the market, ranging from a property tour video and dedicated property website to online advertising, customized email distribution, mailed property announcements and a digital area REALTOR ® notification.
  • Property Showings - I can show properties virtually using video and apps to keep both sellers and buyers safe while still showcasing a home's unique features.
  • Your Home's Value - I can send you a detailed report showing your home's value as well as comparable homes that have sold nearby.
  • Market Updates - If you want to learn more about how real estate is doing in your area, I can send you a weekly Market Report detailing activity to keep you fully informed.
  • Mortgage - Our mortgage partner, Guaranteed Rate Affinity, offers a suite of digital tools that allow buyers to get pre-approved online or by phone, and complete and sign mortgage documents digitally.

While our country, and in fact, the entire world faces this challenging situation, Coldwell Banker is prepared and ready to continue to help you reach your real estate goals. Please contact me today if you have any questions or would like to discuss selling or purchasing a property.
KELLY J YAO
CalRE: CA-01958090
Cell: (415) 999-9388
Kelly.Yao@cbnorcal.com
www.kellyjyao.com
 

We Care

CB Bug
 
Coldwell Banker
During this time of uncertainty surrounding COVID-19, we wanted to reach out and let you know that our clients and friends remain among our top priorities.

With the intention of making it a little easier to stay positive while staying put, we have compiled a list of suggested activities to help support the community and those you love, which we'd like to share with you.
Click to View List
Take care.
KELLY J YAO
CalRE: CA-01958090
Cell: (415) 999-9388
Kelly.Yao@cbnorcal.com
www.kellyjyao.com
 
 

 

Support Homes for Dogs Project

You're invited to support Coldwell Banker's Homes for Dogs Project.
 
Coldwell Banker
Announcing adoption events and pet supplies collections benefiting local animal shelters

Our Homes for Dogs Project is dedicated to connecting adoptable pets with their forever families. Join us in celebrating the love that launched this
annual initiative.

Contact me to arrange a pickup of your donated items or visit our website for more details, including a list of participating locations where you can adopt a new member of the family or drop off your donations.
Click for Details
 
KELLY J YAO
CalRE: CA-01958090
Cell: (415) 999-9388
Kelly.Yao@cbnorcal.com
www.kellyjyao.com