Relief for Taxpayers Affected by Ongoing Coronavirus Disease

presidential seal

I. PURPOSE

On March 13, 2020, the President of the United States issued an emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic (Emergency Declaration). The Emergency Declaration instructed the Secretary of the Treasury “to provide relief from tax deadlines to Americans who have been adversely affected by the COVID-19 emergency, as appropriate, pursuant to 26 U.S.C. 7508A(a).” Pursuant to the Emergency Declaration, this notice provides relief under section 7508A(a) of the Internal Revenue Code for the persons described in section III of this notice that the Secretary of the Treasury has determined to be affected by the COVID19 emergency.

II. BACKGROUND

Section 7508A provides the Secretary of the Treasury or his delegate (Secretary) with authority to postpone the time for performing certain acts under the internal revenue laws for a taxpayer determined by the Secretary to be affected by a Federally declared disaster as defined in section 165(i)(5)(A). Pursuant to section 7508A(a), a period of up to one year may be disregarded in determining whether the performance of certain acts is timely under the internal revenue laws.

III. GRANT OF RELIEF

The Secretary has determined that any person with a Federal income tax payment due April 15, 2020, is affected by the COVID-19 emergency for purposes of the relief described in this section III (Affected Taxpayer). For an Affected Taxpayer, the due date for making Federal income tax payments due April 15, 2020, in an aggregate amount up to the Applicable Postponed Payment Amount, is postponed to July 15, 2020. The Applicable Postponed Payment Amount is up to $10,000,000 for each consolidated group (as defined in §1.1502-1) or for each C corporation that does not join in filing a consolidated return. For all other Affected Taxpayers, the Applicable Postponed Payment Amount is up to $1,000,000 regardless of filing status. For example, the Applicable Postponed Payment Amount is the same for a single individual and for married individuals filing a joint return. In both instances the Applicable Postponed Payment Amount is up to $1,000,000.

The relief provided in this section III is available solely with respect to Federal income tax payments (including payments of tax on self-employment income) due on April 15, 2020, in respect of an Affected Taxpayer’s 2019 taxable year, and Federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020, for an Affected Taxpayer’s 2020 taxable year. The Applicable Postponed Payment Amounts described in this section III include, in the aggregate, all payments described in the preceding sentence due on April 15, 2020 for such Affected Taxpayers.

No extension is provided in this notice for the payment or deposit of any other type of Federal tax, or for the filing of any tax return or information return.

As a result of the postponement of the due date for making Federal income tax payments up to the Applicable Postponed Payment Amount from April 15, 2020, to July 15, 2020, the period beginning on April 15, 2020, and ending on July 15, 2020, will be disregarded in the calculation of any interest, penalty, or addition to tax for failure to pay the Federal income taxes postponed by this notice. Interest, penalties, and additions to tax with respect to such postponed Federal income tax payments will begin to accrue on July 16, 2020. In addition, interest, penalties and additions to tax will accrue, without any suspension or deferral, on the amount of any Federal income tax payments in excess of the Applicable Postponed Payment Amount due but not paid by an Affected Taxpayer on April 15, 2020.

Affected Taxpayers subject to penalties or additions to tax despite the relief granted by this section III may seek reasonable cause relief under section 6651 for a failure to pay tax or seek a waiver to a penalty under section 6654 for a failure by an individual or certain trusts and estates to pay estimated income tax, as applicable. Similar relief with respect to estimated tax payments is not available for corporate taxpayers or tax-exempt organizations under section 6655.

IV. DRAFTING INFORMATION

The principal author of this notice is Jennifer Auchterlonie of the Office of Associate Chief Counsel, Procedure and Administration. For further information regarding this notice, you may call (202) 317-3400 (not a toll-free call).

Douglas County Clerk/Treasurer’s Changes in response to COVID-19

Douglas County Treasurer

The Clerk-Treasurer’s office has always taken great pride in delivering quality, efficient, customer service and we hope to continue with that tradition during this unprecedented time. In response to COVID-19, and in an abundance of caution, our office is implementing the following changes, effective immediately and until further notice:

1. Appointments for all in-person transactions are now required.

a. Treasurer (775) 782-9017 or treasurer@douglasnv.us

b. Clerk (775) 782- 9014 or clerk@douglasnv.us

c. Elections (775) 783-6095 or election@douglasnv.us

2. Passport and DMV services have been suspended.

a. https://dmvnv.com/

b. https://travel.state.gov/content/travel/en/passports/how-apply/where-to-apply.html

3. Tahoe General Services, including Saturday Marriage Licenses services, is closed until further notice.

4. When possible, please postpone visits or utilize the following online methods:

a. To register to vote, print mail-in ballot, forms and find more election information, please visit: https://cltr.douglasnv.us/elections/ or govotedouglas.com.

b. To make tax payment, please visit: https://cltr.douglasnv.us/online-payments/

c. To apply for a marriage license, please visit : https://cltr.douglasnv.us/Marriage/

d. To print Fictitious Firm Name applications, please visit: https://cltr.douglasnv.us/formsdownload-center/fictitious-firm-name-filing/

e. To find out more about applying for an outdoor festival permit, please visit: https://cltr.douglasnv.us/wp-content/uploads/2015/10/festivalapp.pdf

f. To apply to be a wedding officiant, please visit: https://cltr.douglasnv.us/generalinformation/marriage-information/minister-instructions/

5. If online method not available, please send completed paperwork, and if applicable, payment via USPS.

Mail completed paperwork to: Douglas County Clerk-Treasurer PO BOX 3000 Minden, NV 89423

6. If you must appear in person, you must schedule an appointment. Appointments will allow us to limit gatherings of more than 10 people and ensure safe social distancing.

a. To limit interaction, a drop box will be utilized, when possible, to collect payment and paperwork.

b. Please bring check or money order for your transaction.

c. If you are paying in cash, please bring exact change.

d. Receipts and documentation will be mailed to you.

7. To file a petition for signature verification or withdraw your candidacy, please call or email the election office to schedule an appointment.

Douglas County NV Tax Sale

Douglas County NV Logo

Upcoming Tax Sale – March 25, 2020

Our annual property tax sale is being held on March 25, 2020 starting at 10:00 am online at www.bid4assets.com/douglasnv. Please visit this website for a list of parcels.

Please note the following bidding instructions:

·         No bid less than the amount of delinquent taxes, delinquent assessments, interest, penalties and costs will be accepted.

·         Property sold at the auction may still be subject to remaining principal and accruing interest due on assessments or perpetual liens, which are not extinguished by the sale, as set forth in the Nevada Revised Statues.

·         Buyer is responsible for the real property transfer fees and recording fees.

·         All sales will be made subject to existing right of way and easements of Douglas County, Nevada and the State of Nevada.

·         DOUGLAS COUNTY RECOMMENDS THAT ALL PROSPECTIVE BUYERS OBTAIN A TITLE SEARCH ON THE PROPERTY OR PROPERTIES THEY ARE INTERESTED IN AS DOUGLAS COUNTY DOES NOT GUARANTEE TITLE.

·         Further information concerning the sale may be obtained from the Treasurer’s office at 775-782-9018 or on our website https://cltr.douglasnv.us/treasurytaxes/tax-sales/or by consulting the records of the Douglas County Assessor and the Douglas County Recorder.

Carson Valley Real Estate Update

Carson Valley Update

We had ten new single family listings last week. Seven of those were located in Gardnerville, three in Minden. Housing inventory retreated with 16 local properties entering escrow and 8 sold. We’ve had 118 sales since the beginning of the year with a median sales price of $443,000. Days on market has averaged 103 days. Last year at this time we had a total of 105 sales with a median sales price of $450,000. Average days on market was 123 days. There are currently 113 single family homes on the market in the Carson Valley. If you would like information about your neighborhood community please don’t hesitate to contact me at 775-309-8454. Robert Stiles, REALTOR® BS.1001136 NV CHASE INTERNATIONAL

FEBRUARY 2020 Real Estate Update

Carson Valley Update

The Carson Valley median sales price of residential homes sold in February increased 6.4% from the same time period last year. There were a similar number of homes sold in the mid-40’s. There are currently 112 homes for sale and 116 in escrow waiting to close. Nothing changes if nothing changes, they say but if you decide to sell your home and are interviewing REALTORS®, I’d be happy to help. I have 25 years of experience. Call 775-309-8454. Robert Stiles, REALTOR® BS.1001136 CHASE INTERNATIONAL

Understanding “CAP Rates”

Net Operating Income

In commercial real estate, the capitalization rate or “cap rate” is a formula utilized to analyze real estate markets and compare investment opportunities. A property’s capitalization rate can be calculated by dividing its net operating income by its purchase price. The cap rate provides a snapshot of a property’s earning potential. Both investors and business owners utilize cap rates when shopping for commercial real estate, as a higher cap rate means a higher return for the investor.

Cap Rate 
Net Operating Income /Purchase Price = Cap Rate

In the example below, an investor purchases a doctor’s office for $500,000. The property has a long-term tenant, with a 10-year NNN lease. The monthly rental income is $2,500, with an annual net income of $30,000. In this scenario, the property’s cap rate is 6%. In addition to providing a measuring stick to compare similar properties against, cap rates provide investors with an expected rate of return. In this scenario, the 6% cap rate means the investor received a 6% annual return on their capital (in addition to any appreciation).

6%        =  $30,000 / $500,000

A property’s cap rate offers a very practical way to analyze its value, by comparing its earning potential and purchase price. Like a weather barometer, cap rates can be used to measure the economic health and investment activity within a community. Currently, national cap rates for commercial properties range from 4% to 10%, with Reno’s cap rates ranging from 5-7%.

In today’s low interest rate environment, with money markets paying less than 2%, local commercial real estate continues to offer investors 5-7% annual yields. Known for being a stable asset class that preserves wealth, commercial properties remain an attractive investment for individuals, businesses, retirement plans, and trust funds.

My Home Appraisal Came in Low

Appraisal Came in Low

Your appraisal came in lower than your accepted offer price. The first thing your agent should do is review the appraiser’s report for errors.  Appraisal challenges are not easy but what if your challenge fails?  There are essentially four options.

  • Ask for a new appraisal. You can ask the lender to order an appraisal from a different company. This could certainly be met with resistance and the lender could flat out just say no.
  • While not the best option for the seller, the price could be reduced to the appraised value and the sale could move forward.
  • The buyer could increase the amount of money they put down. If the seller is digging in their heals and won’t budge the buyer could increase their down payment to make up the difference in the appraised value.
  • The fourth option is actually a combination of the last two options. This is an option that I have personally seen work on a few occasions. Like anything else in life the buyer and seller compromise with the seller reducing the price and the buyer coming up with an additional amount of funds. In this scenario both parties contribute and the sale goes on as planned!”

Remember appraisal’s are not the ultimate judgment of a home’s value. A home’s true value is what a “qualified” buyer will pay for it.

Could refinancing save you money?

Refinance Your Home

If you’re a homeowner, you might think that all the recent talk of low mortgage rates doesn’t affect you. But that isn’t true — they may be your key to savings.

Even if you had a sizable down payment or received a competitive interest rate at the time, refinancing your home now could mean saving thousands over the life of your loan. Ask yourself these four questions before making up your mind:

  1. Have your finances improved? If you have a better financial profile now than when you bought your home, you may be able to make a larger monthly payment with a lower interest rate, speeding up your mortgage repayment. If your credit score has improved or you have a higher income, this applies to you.

  2. How much have interest rates dropped? Mortgage rates fluctuate with changes in the economy. You may be able to obtain a more cost-effective mortgage today than when you first purchased the property, even if rates have only dropped by a percentage point.

  3. How much will refinancing cost? The process will likely cost you a percentage of the amount you borrow. Remember the application and appraisal fees when you bought your home? They apply here too. Another thing to consider: If your home interest payment is a tax deduction, a decrease in your interest amount could lower that deduction.

  4. How much longer will you be in the home? If you’re not planning to stay in your current home very long, and therefore won’t need to pay off the mortgage, refinancing shouldn’t be your top priority. Spending the time and money on that process won’t pay off like it would if you stay in your home for another 10 years or more.

Are you ready to refinance? Do you have specific questions about your situation? Reach out today. Norm Hansen | nhansen@rpm-mtg.com | Cell: 775.720.2826

Lights! Camera! Action!

movie set

Laws on video and audio recording vary by state, but to cope with increased scrutiny from watchful sellers, some real estate professionals are advising their clients to be wary during showings. Cameras that capture a buyer’s exuberance or dissatisfaction while viewing a home could reveal important negotiation leverage for the seller to later use against you.

That’s why it’s important to work out a plan for communicating when viewing properties with your real estate agent. Some agents have even directed their clients to text them their comments while they walk through a home—even when they’re standing next to each other.

More and more property owners are purchasing cameras for their homes, especially before placing them on the real estate market. It’s something I make all of my buyers very aware of when showing property. One tactic I have used is to have my clients pretend the owner is sitting in the living room while viewing the home.

Some agents in our area are even making an effort to be more transparent about hidden cameras at their listings. The Northern Nevada MLS does not require REALTORS® to note whether there is audio or video inside a home listed for sale. Hopefully Nevada agents are advising buyer agents in the private remarks section which is not publicly shown. The South Lake Tahoe Association of REALTORS® however requires agents to provide this information to their MLS. Regardless it is always better to hold your opinion of a property till you exit the home. Seller’s may not even provide this information to their listing agent.

Top 10 Reasons to Hire a Buyer’s Agent

Why Have a Buyer’s Agent When Purchasing a House?

Buying a house is one of the most significant undertakings you’ll make in your entire life. It’s not simply about finding the right home for you and your family; more than anything, buying a house is about making the right financial investment on a long-term basis.

Before you even put down your earnest money deposit, an exceptional buyer’s agent will have been doing several things for you, including searching for the right property and starting the due diligence process when you do.

There are a plethora of reasons you should turn to a buyer’s agent when you start the house-buying process. Below are some of the most essential reasons to hire a buyer’s agent when purchasing your next house:

1. It’s Free

One of the first things you need to know about hiring a buyer’s agent is that it’s not going to cost you anything. That’s right; 99 percent of the time it won’t cost you a dime!

A buyer’s agent will be paid by the home seller once the home is sold. Not only is it free, but a buyer’s rep will be saving you both time and money. As always, it’s essential to have a good working relationship with an agent. In other words, make sure you find one that you feel comfortable working with.

2. Going to the Listing Agent Isn’t Smart

For some reason, lots of buyers think they’ll get a better deal if they go to the seller’s agent. This is one of the biggest myths in real estate and could cost you considerable money in the long run. Quite often, buyers think if they go to the seller’s agent, they’ll give them back some of the commission. While this may be true, the agent works in the best interests of the seller, not you!

Saving a couple thousand dollars in commission but overpaying on a home by $10,000 works out to a net loss of $8,000! In addition, the agent is going to be doing everything in their power to close the sale, not what’s best for you. Avoiding dual agency is something every smart buyer does. Always have your own designated buyer’s agent.

3. Professional Experience

A buyer’s agent should have the right kind of professional experience in finding the right home for you. Finding the right property is a time-consuming process, and it’s easy to find yourself spending hours viewing properties that are not right for you.

It’s crucial to have a bit of help, especially if you’re a first-time buyer or a very busy person. Having an agent screening the properties for you can save you lots of time. Not only that, but they’ll also view properties to make sure they’re in good order.

A buyer’s agent who has been in the business for a long time will pick up on common problems, such as a damp basement, roofing problems and leaks.

4. How Well Do You Know the Area?

Having a buyer’s agent on board when you move to a new town or part of the country is especially vital. After all, you may not know the area that well. Having someone with local knowledge means that you’re much more likely to end up investing in a property in the “right” part of town. An exceptional agent that services primarily buyers will know their way around the local area well. They’ll know the popular neighborhoods that are appealing to most buyers and those that aren’t.

Also, an agent will make sure the amenities that are important to you are close by. Schools and leisure facilities are often on the top of most homebuyers’ agenda.

5. Valuation and Finance

Valuing a property is not easy when you don’t have a lot of experience. When you’re buying your first or second home, you’ll need all of the help that you can get. Nothing beats turning to a professional to help you purchase a property at fair market value, or less, if you’re lucky. One of the best skills of a buyer’s agent is to be able to evaluate the right purchase price for the home.

Financing can be a nightmare, as well. Sure, you may have your mortgage preapproval, but when it comes to buying a home and financing it, there’s often a mountain of paperwork to work through. A buyer’s agent will help you to do so, and make sure the process stays on track. They explain fundamental real estate terms you might not be familiar with. For example, a significant percentage of buyers don’t know the difference between earnest money and a down payment. Understanding the function of each of these things is crucial for a buyer to understand. There are a myriad of others.

6. How Much Time Do You Have for Your Showings?

Not having a buyer’s agent can mean you end up at a lot of showings or viewings that aren’t right for you. When you contract in a buyer’s agent at the start of the process, they’ll make sure that they schedule everything for you. It’s like having your own personal assistant. Tell them when you’re free, and they’ll do most of the work for you.

7. The Value of Contracts

Never underestimate the value of contracts when it comes to buying a home. Arrangements are not only about money; timelines are established in the purchase contract, as well. A buyer’s agent will make sure you follow through with any necessary responses required under the terms of the contract. This is critical because not doing so could put your escrow funds at risk of loss.

An excellent agent will keep you informed and on track so that you don’t lose any of your escrow funds. There’s also an abundance of smaller details you need to deal with before you sign on the dotted line. Many of them form part of modern-day contract law. Changing regulations are something else a buyer’s agent will help you with.

8. Professional Contacts

Once you’ve bought your first home, you’ll appreciate how many people form part of the buying process. It’s not just you and your bank manager. You’ll also need the help of other professionals, such as a home inspector. What if the home inspector picks up a problem during the inspection, and you need an estimate for work? A buyer’s agent is likely to have the right contacts at their fingertips, and will also be familiar with the process.

9. A Buyer’s Agent: Your Negotiator

Many of us don’t like to negotiate, and we’re not always that good at it. You may like the seller and don’t want to upset them. After all, we’re only human. It’s hard to say “no,” or ask someone you like to drop the price or negotiate a needed repair.

Let’s go back to that home inspection that picked up a slight problem. Ask yourself if you have the skill, and confidence, to renegotiate the price of the property. It takes both to close a deal. Once again, this is something that your buyer’s agent can do for you.

10. Let’s Stay on Schedule

Staying on schedule is an important part of the process of buying a home. You may need to get out of your old house on a specific date, or you may have a starting date for a new job. Trying to pack up your old home and keeping the ball rolling is not easy.

Many buyers don’t realize that a buyer’s agent will keep things going while you focus on moving out of your property or drive across the country to take up that promotion you’re getting.

Final Thoughts

An excellent buyer’s agent will have your back at all times. That is perhaps the best way to look at the relationship. They’re your fiduciary in the strongest sense of the word. Once it’s all over, you’ll be glad that you decided to ask for the help of a buyer’s agent instead of going through the buying process on your own!

Story Provided by Bill Gassett