Vol.I, No.3 www.renewssource.com April 1, 2015 Income Taxes - How Did We Get Here? By: Pat Farrell PRSRT STD U.S. Postage PAID San Antonio, Texas Paid Permit #1590 At the beginning of each year as I think about about filing my income tax return I cannot help but wonder how we arrived at such a convoluted system of preparation that essentially requires one to either be an accountant or at least seek the services of one to ensure that the process is done correctly. Sure, there are guidelines to follow (pages and pages of them) that are designed to help simplify (?) the process, but for some reason most folks seem to find this to be an extremely burdensome task. I also wonder how the Internal Revenue Service (IRS) got to be such a powerful entity and why it seems to instill fear in so many taxpayers. After the Revolutionary War, when our country was no longer under control of Britain and was operating fully under the Constitution of the United States of America we seemed to be able to finan- cially sustain all our operations with just the monies collected in the form of tariffs (taxes on imported goods) and excise taxes (those levied on goods produced and sold within the country). In other words we taxed on consumption rather than on income. That worked well until the advent of the Civil War when it became evident that additional monies would be needed to fund the battle against the South. So, in 1861, as an emergency, war time measure, President Abraham Lincoln imposed, as a source of revenue, a flat 3% tax on all income exceeding $800 per year. This was replaced by the Revenue Act of 1862 which called for a graduated tax ranging from 3% to 5% on income over $600 and later added 10% on income exceeding $10,000. To cover all bases, the Revenue Act broadly defined income as gain “derived from any kind of property, or from any professional trade, employment, or vocation carried on in the United States or elsewhere or from any source whatever.” In 1871 Congress eventually got around to declaring the 1862 Revenue Act unconstitutional and determined that it must be repealed. But, since collecting an income tax was deemed to have been quite lucrative once before, it reared its ugly head again in 1909 when the 16th Amendment to the Constitution was first proposed and passed the Congress but final approval would require three fourths of the 48 States to ratify the Amendment for it to become part of the Constitution. Though most agreed that an income tax was a necessary evil the debate centered around how it was to be imposed. Before this time all income taxes were considered “indirect” taxes which were levied on all peoples regardless of the cen- sus figures for any given area. Conversely, “direct” taxes were required to be apportioned within any given State according to its population. Not unlike today’s concerns, arguments against the enforced taxation included fears that one’s privacy was being totally exposed and that it was simply a way for government to control the populace. In any event, by 1913 it was determined that the required 36 states had indeed ratified the 16th Amendment and so it became part of the Constitution and the first form 1040, consisting of four pages including instructions was put into use (http://www.irs.gov/pub/irsutl/1913.pdf). As an interesting side note, William Benson in his 1985 book titled “The Law That Never Was” insisted that probably fewer than 20 States had in fact legally ratified the Amendment. He claimed that in one case the State Legislature acted without ever having received the document, in another the wording had been changed so it had the exact opposite meaning and that some states had acted when their State Constitutions prohibited them from doing so. The courts however repeatedly rejected his and other’s claims that the Amendment was not a law. Benson had refused to file taxes based on his theory and was subsequently imprisoned for tax evasion. In 1861 when it was anticipated that a great amount of taxes would be generated it was determined to be necessary to utilize an entire agency to enforce and collect all the monies, so the forerunner of the IRS, the Bureau of Internal Revenue (BIR), came into being. Even though the income tax went away in 1871 by court order, the BIR managed to hang around and had fewer responsibilities until after adoption of the 16th Amendment in 1913. Though taxes started off low initially they continued to increase significantly, as did the complexity in the tax process just before and during WWI and with the increased workload the BIR was unable to keep up. Though the Agency continued to grow and reorganize they were soon unable to enforce new tax rules and were way behind in processing paperwork. A congressional investigation in the 1920s into the practices of BIR found poor administration of regulations and a high turnover of the staff. There were many instances of favoritism in the hiring process where patronage rather than merit decided the appointments. There was also significant evidence of corruption and questionable practices of the agents. To counter the corruption, reforms were instituted but the BIR again became bogged down with the advent of WWII and there was again evidence of corruption which this time had become well known to the public. However, it was the reforms implemented in the 1950s that were designed to overcome all previous problems and to present to the public the image of an Agency ready to provide service to taxpayers rather than just enforce regulations and collect taxes. In 1953 the Bureau changed its name to the Internal Revenue Service to enhance that image. But, even with these reforms and several more that followed over the years the new and improved IRS was still unable to keep up with the changes and workload and there was still evidence of corruption. The Agency had neither modernized nor embraced new technology until the Restructuring and Reform Act of 1998. 2 REAL ESTATE NEWS SOURCE The IRS of today, headquartered in Washington D.C. is considered to be the largest federal bureaucracy employing in excess of 110,000 people. Most of the day to day work, collections and auditing, is carried out in regional offices throughout the country. In addition to handling the four areas of concentration: Wage & Investment, Small Business/Self Employed, Large and Midsize Business and Tax Exempt & Government Entities, the IRS also has an Appeals Office, a Taxpayer Advocacy Office and a Criminal Investigation Unit. And despite the new reforms in place there is still evidence of inefficiency within the internal system and taxpayers are still in fear of audits. April 1, 2015 In closing, you may be interested to know that in 1910 Richard E. Byrd, Speaker of the Virginia House of Delegates, who was opposed to the 16th Amendment had the following to say: “This amendment will do what even the 14th and 15th Amendments did not do — it will extend the Federal power so as to reach the citizens in the ordinary business of life. A hand from Washington will be stretched out and placed upon every man’s business; the eye of a Federal inspector will be in every man’s counting house. “The law will of necessity have inquisitorial features, it will provide penalties. It will create a complicated machinery. “Under it, businessmen will be hauled into courts distant from their homes. Heavy fines, imposed by distant and unfamiliar tribunals, will constantly menace the taxpayer. An army of Federal inspectors, spies and detectives will descend upon the state. They will compel men of business to show their books and disclose the secrets of their affairs. They will dictate forms of bookkeeping. They will require statements and affidavits. On the one hand the inspector can blackmail the taxpayer and on the other, he can profit by selling his secret to his competitor.” So, was Byrd an alarmist or a prophet? REAL ESTATE NEWSSOURCE A PUBLICATION OF PUGS PUBLISHING LLC Publisher/President.....Courtney Smith Sales & Marketing .............Candi Meyer Cell - 557-8722 Contributing Writers: ......Cathey Meyer ..................................................Pat Farrell Columnists.....................Susie Sheffield ......................................Mary Ann Jeffers (210) 508-0888 Real Estate NewsSource is not responsible for the opinions or facts expressed by non-staff writers or for errors and any byproducts in advertising or editorial copy. REALTOR® is a registered trademark. The word REALTOR® sometimes appears in this paper without the registered trademark symbol (®), for the purpose of saving space. Wherever the word REALTOR appears in this space, the registered trademark should be assumed. We welcome submissions of photos, press releases or articles. Send to: Real Estate NewsSource 10004 Wurzbach Road, #288 San Antonio, Texas 78230 Norma Evenski, Alamo Title said “I just got my latest issue of NewsSource.” Paul Ugwokaebe, Abalite Realty Group takes time before the IREP meeting at SABOR to check out the latest issue of NewsSource. Rachael Clutter, Stewart Title with her nephew Landon checking out the latest NewsSource. E-MAIL: [email protected] Please include a self-addressed stamped envelope if material is to be returned. April 1, 2015 www.renewssource.com From The Chairman’s Desk By Mary Ann Jeffers Chairman, San Antonio Board of REALTORS® SABOR’s Open House Weekend is May 2-3 SABOR is holding its annual Citywide Open House Weekend on May 2 and 3. With SABOR’s newly launched consumer site, open houses are easier than ever to find. We anticipate a big turnout of REALTORS® participating! How can you make the most of Open House Weekend? For starters, enter your open house in MLS so the public can search for it during the Open House Weekend. Consumers will be directed to the site through an advertising campaign and be able to search homes they wish to visit. The San Antonio Express News is also offering SABOR members a discounted rate to advertise that weekend, and will include placement in a special Friday section of the paper. The REALTORS® Store at SABOR is running a special package deal this month that includes a shape sign, wire stand, open house red flag and a black open house guest register. There will also be blue REALTOR® balloons available that you can put up outside the open house to indicate it is being hosted by a REALTOR®. During the open house, consider creating a property summary sheet. This sheet gives prospective buyers an overview of the home. Include dimensions for each room, copies of a property survey and summaries of utility costs and property taxes. Also, develop a method for follow up with prospective buyers and follow up in a timely manner. It is also important that you take steps to ensure your safety during the open house. Have your cell phone battery fully charged, open all the curtains in the house and unlock all deadbolts to guarantee a quick escape if needed. You should also consider letting a friend or colleague know you will be checking in every hour and know how to get out of the house by the front or back door as well as the backyard. With these tips in mind, you are sure to make the most of this opportunity. To learn more about SABOR’s Open House Weekend, visit SABOR.com. REAL ESTATE NEWS SOURCE 3 Mary Ann Jeffers, Reliance Residential Realty, Jim McKissick, SWBC and Lance Bryce, Sente Mortgage at Sonterra for the SATAMP meeting. At the Hill Country WCR Installation are Randall Zamora , Keller Williams Realty Lubbock, Sheila Moran, RE/MAX Access with Julie Fenton, Capital Title. 4 REAL ESTATE NEWS SOURCE April 1, 2015 Trinity Title Chili Cook-Off Jesse Ramirez, Rocio Romero, Jeff Scott and Adam Graham, all imortgage. Sawyer with John Cortizzos, Irene Morgan and Billy Klumpp, all SWBC. Susan Moore and Rich Rupp, both RE/MAX North, Gwen Derry, Trinity Title and Roy Garza, RE/MAX North. The Directions Equity Crew at their Chili booth. Tony Chavez, Trinity Title and Jack Shull, Guild Mortgage. Paul Rollins, Legacy. Keller Williams Melissa Elizondo, Kathy Olivarez and Trish Herzig, all Trinity Title. John Heard, Directions Equity and Irene Morgan, SWBC. Patrick Moore, Lise De Leon and Ron Robinson, all Iberia Mortgage. Mauricia Cacase and Louis Derrick, both Iberia Mortgage. www.renewssource.com April 1, 2015 REAL ESTATE NEWS SOURCE 5 6 REAL ESTATE NEWS SOURCE April 1, 2015 Fronterra At Westpointe Open House Carrie Partridge and Debbie Luna, both Keller Williams Heritage.with Jason Vallier of David Weekley Homes. Virginia Nararjo, Keller Williams City View and Debbie Forshey, Coldwell Banker D’Ann Harper Realtors. Linda Quantes, Keller Williams Heritage with Lisa Stanley and Rose Arredondo, both Coldwell Banker D’Ann Harper Realtors. Anita Schneider and Erin Herrington, both with David Weekley Homes. Jackie Sanders, M/I Homes. Ted Acuna and Rebekah Angres, both M/I Homes. April 1, 2015 www.renewssource.com The Way I See It By Cathey Meyer Follow the Rules? As a life member of my high school National Honor Society (No one ever declared when my membership expires.), I grew up a basic rule follower. If school started at 8:30, I was there at 8 AM. I never served time in detention for tardies (or anything else). My lunch card was always pre-paid and current; my homework was completed and turned in on time (not necessarily correct). Given the opportunity to cheat on assignments, I would see Sister Mary Many Sins in my conscious scowling down, shaking her head, preventing me from adding to my confessional list of ‘Forgive me father for I have sinned . . .” If I recall correctly, sins are not lies as you can be absolved of your sins, but your lies lie with you forever. Not that I am perfect: I do drive over the speed limit; If the crosswalk is too far down the intersection, I will cross in the middle of the street; On occasion, I have eaten red meat on a Friday during Lent. Now that my true confessions are out of the way, I am clear to share things that never occur to me to attempt in my rule following life. This pondering of life rules began with a small article in the newspaper (You know the one I pay for front door delivery, but only receive when the paper-person feels like delivering—a service rule I did not know was OK to break.) The article began, “A restroom at a (national box store that imports heavily from China) in eastern Indiana has been closed indefinitely after an employee discovered a working meth lab inside.” That statement alone is exploding with rule violations. My first question would be was the merchandise used for the meth purchased first or was it shoplifted? I always find that sign entertaining that reads items brought into the restroom must first be purchased. Rule followers always ‘plan’ their in-store restroom stops to accommodate their collection of items to be purchased. We worry our carefully selected merchandise will be taken from the cart and placed back on the shelf before we can come out REAL ESTATE NEWS SOURCE to reclaim them. We also assume employees are actually doing their jobs. We typically leave our items with a coshopper or cranky significant other and switch out turns in the toilet. No one really wants to rush to the front of the store, wait in line, purchase your items and the rush to the back of the store to rightfully enter the restroom and take care of business. Something tells me meth manufacturers do not read the entering restroom signs and most likely have no intention of honoring the store rules. My next thought is how did the store employee know what a meth lab looks like? I have yet to see an episode of Breaking Bad, so my meth vocabulary is weak, but I will credit a minimum-wage-nearly-fulltime employee with social knowledge to know what goes into a decent meth lab or maybe they have an employee training session on ‘When you see ‘this’ know your drug manufacturing procedures.’ We all know all employees are instructed to wash hands before returning to work. After all, there is a sign explaining the law. I doubt the ‘customer’ washed their hands after setting up the lab, but did the employee wash their hands before dashing out to find store security and properly ID indeed it was a meth lab? Rules are rules. The idea to use a public place to conduct private business is ingenious. No overhead, no specialized insurance, no staff, no inventory--has everything you ever need to make anything is located inside your local Chinese import retail 7 store. Talk about the ultimate rule breaking event . . .Why do rule followers not think of these things? Go to a place that already has everything you need to create a product not available at that place and then take it out to the demanding public for sale. I would guess this genius was overlooked in their high school’s “most likely to” category. We understand rules are created because rule breakers figured out ways to scam obvious courtesies. We have school zone speed limits because some wacky little ones decide dodging speeding traffic is fun. We have adult beverage age requirements, because other adults cannot control the activities of their offspring without rules. We have smoking rules because smokers assume we all enjoy the inhale. Etcetera, etcetera. Now we are about to have new public restroom rules because entrepreneurs do not want to risk explosions in their own homes. The times are arriving for us to now not only walk through the x-ray scan and remove our shoes before boarding an airline flight, but someone will now stand guard and scan us as we chose to use facilities outside our own home for everyday business. Soon rule followers will be punished by the limit of toilet tissue provided as a courtesy because non-rulers use or take it for other purposes. We should note paper towels have disintegrated into hot air machines—but I digress here—only the rule followers care—no one else is washing their hands. 8 REAL ESTATE NEWS SOURCE April 1, 2015 Balcones Creek Highland Homes Open House Sylvia Lopez, Keller Williams City View and Debbie Germany, Highland Homes. David Lowe and Tish Lowe, both Keller Williams Legacy at the Highland Mercedes. Ryan Fay, Doug Dreiman and Susie Rice, all Highland Loan Source. Sweet Cupcakes Food Truck. Storms Duthe, Jan Lares and Lishia Eslinger, all with Realty Executives Select Properties. Megan Schauffele, Highland Homes. Carla Haley, Elaine Ludwig and Karen Olivier, Highland Homes. Megan Schauffele and Patti Spangler, both Highland Jim Momone, Keller Williams Homes. Heritage. www.renewssource.com April 1, 2015 REAL ESTATE NEWS SOURCE 9 10 REAL ESTATE NEWS SOURCE April 1, 2015 Hill Country WCR - Four Rivers Association Joint Meeting It was a good turnout for meeting at Embassy Suites, San Marcos. M’lissa Steel, Reliance Residential Realty and Fran Valdez, Capital Title. Isaac Mahone, Trinity Title, Sherrie James, Century 21 Randall Morris and Melissa Elizondo, Trinity Title. Lisa Leggit and Karen Madden, both Century 21 Randall Morris, love to network at WCR Hill Country. Aaron Wolf, Willow Bend Mortgage, Marti Chrisman, Limestone Country Properties and Craig Pierson, Willow Bend Mortgage. Janet Allen and Jeff Robinson, both Stewart Title ready for the Hill Country WCR Luncheon. Linda Pinson, Reliance Residential Realty, Mike Horner, Gold Financial and Becky Sailer, Reliance Residential Realty. April 1, 2015 www.renewssource.com Keith Fahey congratulates Lisa Johnson for highest sales for the quarter. Jenny Jones, Fore Premier Properties, Bruce Bond, Century 21 The Hills with Barbara McCoy and D’Ann Harper, both Coldwell Banker D’Ann Harper Realtors at the Blue Rewards Event. Congratulations to Caroline Kessler on receipt of her Certified Corporate Housing Provider designation from the Corporate Housing Provider Association. Way to go Caroline! Shahab Mohseni, Burdick Custom Homes is all smiles at a Burdick Custom Home. REAL ESTATE NEWS SOURCE 11 12 REAL ESTATE NEWS SOURCE April 1, 2015 Leisa Skinner, is congratulated by Jenny Bingham, Broker of RE/MAX Northeast, upon Leisa’s receiving “RE/MAX of Texas Office Administrator of the Year Award” for the fourth time. Congratulations! Frankie McKee, Lucy Huertas, Kyra Smith and Dede Jackson, all Alamo Title enjoying the Keller Williams Legacy Awards. Rachael Castillo, RE/MAX Unlimited, Rachael Clutter, Stewart Title and Sara Gerrish, RE/MAX Unlimited enjoy NAHREP happy hour at Lüke. Art Burdick, Damon Christofilis, and Steve Frank, all Burdick Custom Homes, and at the Phyliss Broning Meeting Breakfast at Burdick Custom Homes Model in Huntington. We Give Back To Our Veterans Art Ramirez, Debbie Villareal and Robert Alameda 210-545-9300 WR Starkey Mortgage, LLP NMLSR #2146 12500 San Pedro #100 San Antonio, Texas 78216 www.starkeymortgage.com Branch NMLSR #291670 April 1, 2015 www.renewssource.com GSABA Update By Cheri Bass Director of Sales & Marketing, Sitterle Homes Rally Day 2015 — Making Our Voices Heard A busload of Greater San Antonio Builders Association (GSABA) members joined thousands of other real estate professionals at the state capitol March 4 to discuss legislative issues affecting the home building industry. The day was filled with meetings with lawmakers to review bills we believe will support Texas’ thriving real estate market, which currently adds $31.1 billion to the state’s economy and is responsible for 702,500 jobs in Texas. Among the topics we discussed were clarifying the definition of certain rural areas for financial assistance purposes, addressing potential shortfalls of the Texas Windstorm Insurance Association and protecting private property rights. As expected, tax reduction was a hot button. Both GSABA and the Texas Association of Builders support proposals that give tax relief to homeowners and reduce the business franchise tax. If enacted, this tax reduction would enable home builders to better serve the state’s housing and employment needs through increased investment in property development and construction projects. The state’s population is expected to double during the next 15 years, so maintaining a brisk home-building pace is a necessity if we are to adequately serve the huge number of expected newcomers. Housing also has to be affordable. While market conditions do affect pricing, so do governmental regulations and fees. According to the Real Estate Center at Texas A&M University, for every $1,000 increase, approximately 22,000 households are priced out of the market. It was an honor to take part in such an impactful event and a huge thanks to the many people who, despite very busy schedules, dedicated a day to making our voices heard and safeguarding one of the nation’s healthiest real estate markets. REAL ESTATE NEWS SOURCE Donna Harrell, Legacy Mutual Mortgage, and Melinda Hipp, VanDyk Mortgage, enjoy the TAMB Lunch at Sonterra. Texas State Senator Jose Menendez joins Scott Caballero, BHHS PenFed Realty at recent Ribbon Cutting. 13 14 REAL ESTATE NEWS SOURCE April 1, 2015 Sam Jones, Willow Bend Corporate Office and Steve Giannone, BHHS Don Johnson. Ribbon Cutting. Willow Bend Grand Opening Daniel Haynes, Financial Advisor and Julian Contreras, Willow Bend Mortgage. Novie Allen, RBFCU and Susan Deitiker, North Chamber of Commerce. Want a Custom Design? We Do That!! Or choose one of our ready for move-in homes Andalucia at The Dominion Move-In Ready 6318 Sevilla Way • 5 bedrooms • 5 full baths • 2 half baths • game room w/balcony • theater room • conditioned wine room Call Bill Dayson - 210-372-9207 Andalucia in The Dominion - New Model Now Open - 6314 Sevilla Circle Gardens at Greystone - Only 2 lots left to custom build on Hidden Canyon - In the heart of Stone Oak from the upper $400's Building Homes - Building Relationships mcnaircustomhomes.com www.renewssource.com April 1, 2015 REAL ESTATE NEWS SOURCE 15 Dana Taylor and Amy Gibson, both Independence Title. Julian Contreras, Justin Contreras, Shelley Sharp, Garrett Toste, Sam Jones, Aaron Wolf and seated, Curtis Huizar, all Willow Bend Mortgage. Of The San Antonio Office Tara Masling, Richard Masling and Kathy Masling, all Masling Properties. Aaron Wolf, Willow Bend and Sophear Wilson, Capital Title enjoy the Grand Opening. Spring Has Sprung! (back row l-r) Jeff Cruz, Bobbie Greenman, Melissa Marquez, Margaret Canfield and Jeff Cameron with (front row l-r) Cynthia Gutierrez, Alex Deimel, Laura Medlin and Corvette Wiseley (not pictured: Margot De La Paz, Ashley Herrera and Donna Jacobs) 210.812.5500 1354 N. Loop 1604 E. #103 San Antonio, TX 78232 Corp NMLS# 24055 16 REAL ESTATE NEWS SOURCE April 1, 2015 March IREP Meeting At SABOR James Butler, JB Properties. Paul Oroian, CPA, prepares to give a presentation to IREP members about taxes. Laura Riley and Norma Evenski, both Alamo Title. Mike Fulmer, Fulmer Realty, Introduces himself as new member. IREP members attentive to presentation about taxes. www.renewssource.com April 1, 2015 REAL ESTATE NEWS SOURCE 17 Bob Frasier and Ray Anderson, both Ashton Woods, at the Highland Grove Open House. Tony Garza III, Virtual Realty Group, Laura Lizcana, Ralph F. Sanchez, and Shirley Hernandez, Capital Title, at the TAMBA meeting. Yvonne Huffman and M’Liss Steel, both Reliance Residential Realty and Candy Williams, Bay Equity, have a great time at a recent Hill Country WCR meeting. Lanise Bailey, Terri Saari, and Kristen Michaelson, the Pinnacle Team at Kimberly Howell Properties. 18 REAL ESTATE NEWS SOURCE April 1, 2015 Kima Light, RE/MAX Corridor. David Weekley Homes Erin Harrington and Deanna Spencer, both David Weekley Homes. Andrea Nauschutz, Keller Williams Alamo Heights and Terry Carpenter, Keller Williams Legacy. Spring Is Here! Experiencing Neck Or Back Pain? Daniel Medina, Jr., NMLS# 513918 210.394.1617 40 N.E. Loop 410 San Antonio, TX 78216 Call Today! 210.764.8888 Or Visit Online At www.DrGolabDC.com www.renewssource.com April 1, 2015 REAL ESTATE NEWS SOURCE Deanna Spencer, David Weekley Homes and Frank Zeno, Ruffo Realty. Victor Cazares, Housing Source, Laura Gordon, RE/MAX Corridor and Maudel Hardie, Hardie & Associates. Crossvine Grand Opening Richard Cromer and Raul Trevino, both Century 21 Scott Myers. Stephen Hunter, Coldwell Banker D’Ann Harper Realtors. THE B ARTON CO., CARPETS P R O P E RT Y MANAGEMENT SOLUTIONS ........ 1 0 0 % N YLON CARPET SOLUTION DYE FHA 3/8” PAD STARTING AT 1.48 SF (VAC) 12.24 SQ YD (VAC) Congratulations Elaine FHA CARPET 1.58 SF / 13.01 SY C ar p e t S p e ci fi ca l l y En g i n e e re d For Property Managers. Installed (VAC) Wi t h S p i l l g u a rd P a d 1.77 S F / 14. 58 S Y SIX MONTH FINANCING Deferred interest with minimum monthy payments Call Us For All Types Of Flooring • Carpet • Hardwood • Ceramic Tile • Vinyl 210-655-8269 100% Nylon, FHA Grade Carpet in stock for very prompt installation (l) Kari Utz, Corporate Relocation Director and (r) Marietta Alba, President, both with Apartment & Reloctaion Center, congratulate (c) Elaine Sevier as the President of CRS 2015. (210) 493-1688 • (800) 598-1688 • FAX (210) 493-1695 11818 WURZBACH • SAN ANTONIO, TX 78230 Apartment rental assistance for long and short term needs. Corporate apartments. www.aptreloctr.com 19 20 REAL ESTATE NEWS SOURCE April 1, 2015 Barbara Finch, Kuper Sotheby International Realty and Sandra Meyer, Coldwell Banker D’Ann Harper Realtors at the Blue Rewards Event. Members of the 2015 Luxury League. Board meeting for the Texas Associations of Professionals Federal Credit Union (TAPFCU) members. Vi Arnold, Japhet Builders welcomes Marge Cid and Marti Cohn, both Home Team of America to the Napa Oaks Realtor Lunch. WELCOME To Spring From The Staff At VanDyk Mortgage Melinda Hipp, Branch Manager, NMLS# 219085 Office: 210-493-7332 • Fax 210-247-9413 17721 Rogers Ranch Pkwy., Ste. 215, San Antonio, TX. 78258 Branch NMLS# 866803 April 1, 2015 www.renewssource.com To annually meet the April 15 tax deadline, it is a common practice for many folks, including REALTORS® and other real estate professionals, to seek the services of a tax preparation specialist or a CPA to put the necessary paperwork together for submission to the Internal Revenue Service (IRS). Others, unless they are total “do-it-yourselfers” might take advantage of tax preparation software or utilize online programs that, through a series of questions and answers, will handle the compilations and computations necessary to get the job done. In either case the taxpayer will, before tax time, check their file folders, shoeboxes, paper bags or wherever else they have been collecting all the documents they feel appropriately represents the income, expenses and unique requirements for their previous year in business. Usually CPAs can be found at their offices most weekdays where if you are their client you can call them if you have tax questions and of course you are free to bring them your documents for tax preparation. When your return is completed you go to the office to pick up the finished product and see that it is signed and filed with the IRS and pray it is correct. Fortunately for the REALTORS® in the San Antonio area at least one CPA, Ed Guerrero, is willing to go above and beyond what most would expect from an accountant. There are major differences between doing simple tax preparation and learning how to utilize tax strategies, and to get this message across Ed takes advantage of all opportunities made available to him. He believes that being proactive about taxes is the proper way to do business and he will even show you how your vacations can also lead to a tax advantage. Rather than just prepare taxes for them, Ed Guerrero encourages REAL ESTATE NEWS SOURCE REALTORS® to learn how to strategize in advance so they will be less likely to overpay the IRS. They could simply be missing some potential deductions, just because their business entity is not set up properly. Guerrero CPA is a unique and dynamic organization consisting not only of CPAs, Accountants, Bookkeepers and Tax Consultants, but also Software and Network Consultants and Financial Advisors. Since its inception more than 11 years ago, Ed Guerrero's practice has grown to now serve about 4000 clients and he currently employs a large number of full-time as well as part-time associates. Once a REALTOR® learns to treat what they do daily as a business, they will find that there are multiple things to be done that ensure they get to keep more and pay less to the IRS. Many folks have heard that they should set up their business as an LLC single member corporation because it will help protect them as a company. Operating as a sole proprietor means they will be reporting their income on Schedule C which then subjects them to paying selfemployment taxes. That could mean, for example, that if they have a profit of $105,000 for the year, they could pay as much as $16,000 in selfemployment taxes. This example points out that by having an understanding of the many tax strategies available, one can save a considerable 21 amount of the monies they have earned and avoid self-employment taxes. So how do you learn what tax strategies might be beneficial to you in your situation? Time is money-i.e. if you wish to visit the Accountant that currently prepares your taxes it will most likely cost you for that appointment and if your Accountant is a CPA it may cost you more. As REALTORS® in the San Antonio area you are very fortunate that Ed Guerrero of the Guerrero CPA company is willing to share his time and talent with you to ensure you are made aware of what options you have to make sure your business is indeed being run as a business. Not only does he share his time with you but he has an open invitation to join him for lunch on most Fridays of each month from 11:30 am to 1:00 pm at various restaurants around San Antonio. If you have questions or just want to RSVP for one of the Tax Strategies luncheons call 210-4907100 or email him at [email protected] Due to a major increase in the number of clients and the resulting necessary increase in staff, Guerrero CPA moved last year to a large, one story facility located at 508 Rhapsody Drive. So, do yourself and your pocketbook a favor and check to see how Guerrero CPA can help you understand the ways you can help your tax position. "Go See Ed." Let’s Get That Loan Done! Matthew Wolf, Mortgage Loan Officer, NMLS# 215696 Direct: 210-853-5929 Cell: 210-535-7100 • Few INVESTOR OVERLAYS on our serviced FHA & VA products • In house underwriting and loan servicing • Fannie Mae, Freddie Mac, Ginnie Mae direct lender 210-348-8100 14100 San Pedro #210 • San Antonio, Texas 78232 For use by Real Estate Professionals only. Not intended for public use or distribution. Company NMLS# 3274 1 SABOR Keeping Posted April 1, 2015 www.renewssource.com April 1, 2015 SABOR Keeping Posted 2 3 SABOR Keeping Posted April 1, 2015 www.renewssource.com April 1, 2015 SABOR Keeping Posted 4 26 REAL ESTATE NEWS SOURCE April 1, 2015 Century 21 Quality Service Pinnacle Award The office of Century 21 Scott Myers, Realtors has received the Century 21 Quality Service Pinnacle award for the 12th consecutive year. The award is based on the results of the answers to surveys sent to the firm's clients and customers shortly after the closing of a transaction. To receive the award, the average quality service score as rated by the clients and customers must be 95 for two consecutive years. Century 21 Scott Myers, Realtors has also received the prestigious Gold Medallion award for the 2nd year consecutively. It is one of the highest awards for production that the Century 21 system gives out. 17 RE/MAX Associates Agents Awarded Five Star Award For Texas Kessler Achieves CCHP Designation KESSLER Apartment & Relocation Center is proud to announce the success of Caroline Kessler’s achievement of the CCHP designation. The Certified Corporate Housing Professional (CCHP) certification is offered by The Corporate Housing Providers Association. It exemplifies competence and professionalism in the corporate housing industry. A successful candidate draws on personal experience, industry resources, webinar information and relevant articles to prepare for and pass the exam. RE/MAX Associates in San Antonio is extremely proud to announce that 17 of its agents have been awarded the Five Star Real Estate Agent Award for Texas. Congratulations goes out to Dayton Schrader, Patsy Oakley, Diane Craig, Bob Leonard, Dawn Ainslie, Anna Kay Lockridge, Mary Skye, Nadine Berger, Phyllis Teer, Katie Griffin-Ross, Pam Powell, Bob Jacobs, Diana Plummer, Shelly Johnson, Chris Cisneros, Priscilla Allen, and Janice Doxtad. This prestigious award is based on 9 criteria: Customer service, integrity, market knowledge, communication, closing preparation, negotiation, finding the right home, marketing of the home, and overall satisfaction. The process consisted of surveying recent homebuyers, title companies, and mortgage companies in the Central Texas Region and the award is given to the top 3% of all licensed agents. The recipients will be featured in the June 2015 Texas Monthly. “Realtor LLC vs. Sole Proprietor A Major Difference in Taxes” New Event: Tax Strategies for Realtors KB Home meeting room 4800 Fredericksburg - 12:00pm - 1:30pm Other Event: 508 W. Rhapsody San Antonio, Texas 78216 April 1, 2015 www.renewssource.com RE/MAX Access Welcomes New Additions WILSON ESPARZA After 22 years owning a successful hair salon as well as working for a home developer in Rockport, Jinjur Wilson has begun a new career in Real Estate in the San Antonio and New Braunfels areas. With exceptional people skills and a knack for listening, Jinjur is ready to assist her clients in maximizing their real estate interests! With a Bachelors degree in accounting from UTSA and owning his own Taxidermy business for over 15 years, RIVERA Trevor Esparza jumped right into navigating his clients into the home buying & selling process! Jesus Rivera has 22+ years in the hospitality industry including managing hotels and manager training has recently joined RE/MAX Access as an agent as well! Jesus moved to San Antonio as a child, knows the areas well & is fluent in Spanish. RE/MAX Access is pleased to welcome these new agents! REAL ESTATE NEWS SOURCE 27 Nix Realty Company Teams Up Real Estate NewsSource’s Top Ten Tips for Press Release Submissions WIth Leverage Global Partners • Remember the classics: es. F. Ron Smith, President of Leverage Global Partners, recently welcomed Nix Realty Company as the Network’s exclusive member in San Antonio, Texas. A unique alignment of the most prestigious independent real estate brokerage firms around the world, Leverage Global Partners offers its members the opportunity to better serve their clients’ relocation and real estate portfolio needs by establishing each member firm as key players in the international real estate arena. As a member of Leverage, Nix Realty Company will be promoted as the Network’s exclusive representative for the San Antonio area, facilitating a framework in which the company can expand and compete with larger franchise networks. Through Leverage’s “Just Ask” referral program, Nix Realty Company associates are offered personal introductions and provided access to top firms around the world, ensuring them incomparable networking ability in the worldwide luxury real estate market. In addition to offering exceptional service and connectivity, Leverage differentiates itself from existing international luxury real estate associations by increasing the online and social media presence of its members, and providing marketing tools designed to help a member expand his or her individual business. Leverage promotes the presidents of member firms and extends media access for their members’ properties through a robust public relations outreach and digital platform. who, what, when, where, how and why. If your press release covers all those bases, chances are you’ll get it published. • Verify all facts & figures. Names and titles should be spelled correctly and double check phone numbers and email addresses. • Be concise. Editors look for press releases that can be published without too much editing. Stick to the basic facts and never submit more than 200 words. • Do not include too many different topics. Stay on point. The shorter, the better. • Have someone review the copy for typos, errors or repetition before you submit it. • Remember, we do not say where people use to work in our press releas- • Remember, the editor reserves the right to edit copy for style and space available. If total control of the content is required, it’s best to purchase an ad. • Add your contact information (name & phone number) at the top of the page in case the editor needs to call to clarify any details. • E-mail submissions are preferred. Send your release to [email protected] • Please remember, all approved press releases will be published on a space-available basis. If your press release is time sensitive, be sure to send it in on time so every effort can be made to publish it. Please note time sensitivity at the top of any submission. 28 REAL ESTATE NEWS SOURCE April 1, 2015 WCR March Luncheon at Sonterra Debbie Forshey, Coldwell Banker D’Ann Harper Realtors and Gwen Derry, Trinity Title. J.R. Troy, ERA Troy Realtors. Susie Sheffield, RE/MAX Access and Beth Oliver, Austin Broker. Bob Jacobs, Laura Estes and Katie Ross, all RE/MAX Associates. Cindy Cox, RE/MAX Access, Craig Loeffler, Phyllis Browning Company and Amy Kolb, Keller Williams City View. Paula Grigsby, TAPFCU and Hope Dufner, Guest. Carolyn Hegranes, Keller Williams City View. Sheila Moran, RE/MAX Access, Pat Farrell, Slater realtors and Karen Shaffer, Frontier Title.
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