Eastern Plumas/Sierra Counties May Newsletter

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma

Contents Portola Office & The Dickson Philosophy Sales Statistic Reports

Pg. 2 3-5

Synergy Home Mortgage Corner

6

Home Selling Steps

7

How To Price a House To Sell Like Hotcakes

Pictures compliments of Dickson Realty

8-9

Home Office Deduction Rules and Methods

10-11

How Long Do You Have To Keep Tax Records

12-14

Mother’s Day Humor

15

May Event Calendar

16

Event Details

17

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma

The Dickson Realty Portola Team is always available to provide excellent and dedicated client service whether you are considering buying or selling a home. Our team of seasoned professionals, all REALTORS®, possess the most current and comprehensive market information and, combined with their knowledge and experience, they are uniquely qualified to be expert guides in your real estate venture.

Call, e-mail, visit our office, or access us on the web. We are here for you 24/7.

Our offices and agents diligently adhere to all current COVID 19 guidelines.

Office Phone: 530-832-1700 Email: portolainfo@dicksonrealty.com Web: www.Dicksonrealty.com

Benefits of Hiring A REALTOR®

Quoting Aristotle, “We are what we repeatedly do Excellence, therefore, is not an act but a habit”

About Dickson Realty The Dickson Philosophy Dickson Realty was founded in 1973 under the guiding premise that integrity, hard work, and creativity would yield success. Today, those principles have made Dickson Realty the region’s largest and most successful real estate company. We believe our greatest asset and the key to our success is our team of agents, employees, and affiliates.

You come first. When everything we do centers on serving your unique needs - even to the exclusion of our own agenda - we can create an extraordinary experience for you, our client.

You deserve mastery. As a client, you deserve to work with a realtor who's at the top of his or her game. Mastery takes 10,000 hours of concentrated effort - or more than five years of working full-time. Every Dickson agent is committed to developing his or her mastery of real estate.

Your relationship matters to us. When Dickson realtors invest in strong relationships at the start, we will enjoy extraordinary relationships that last.

We under-promise and over-deliver for you. Everyone loves a happy ending, so we temper the temptation to hype the outcome. Instead, Dickson agents concentrate our efforts on adding real value - for extraordinary results.

We share "hyper-local" knowledge with you. There's no substitute for knowing the territory, the customs, and the culture of the communities we serve.

Dickson agents walk the neighborhoods, join community and neighborhood advisory boards, and build powerful networks to better serve you.

We negotiate for you. In real estate, you don't get what you deserve - you get what you negotiate. That's why our clients hire us over our competitors: for our negotiation skills. We take advantage of every opportunity to learn or fine-tune them, at Dickson University or through close personal study.

We never stop learning for you. Dickson is a learning organization. We strive, we succeed, we sometimes come up short, but we always learn. That's why we have Dickson University and experienced experts to train, educate, and grow our realtors.

We build our reputation through you. A reputation takes years to develop, and it can be destroyed in seconds. That's why honesty, integrity, hard work, and collaboration are the cornerstones of Dickson's business - and we expect nothing less from each and every agent who works with us.

We listen to you. Most sales professionals hear one client need, and they're off to the races. Dickson's agents know to bite their tongue and keep listening - uncovering at least five more client needs they can find solutions for.

We create community to serve you. Since 1973, Dickson Realty has acted upon the responsibility to build a sense of community in the areas we serve, including active corporate philanthropy, volunteerism, and community involvement on the part of our agents, partners, and staff.

We are in business because of you. Anyone who's ever had an extraordinary experience will never forget the feeling - or the person who created it.

That's why, at Dickson Realty, we harness our creativity, sense of fun, and concern for our fellow men and women to create extraordinary experiences for our clients.

Our goal, of course, is to become your realtor - for life.

Dickson Portola Team

289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma

This month’s reports are year-to-date comparisons of sales statistics for YTD March 2020 compared to YTD March 2021; showing median and average sales pricing, lowest/highest sales, average days on market and total number of sales in the 12-month comparison period. The sales shown are for Single Family Residential, Condominiums & Townhouses in each market area.

(Time share and/or shared ownership are not included in the statistics presented.)

The data source is the Plumas Multiple Listing Service with data pulled on April 10, 2021

GOLF COMMUNITIES

Year To Date MARCH 2020 382,000 382,000 339,000 425,000 274 2

Whitehawk, Grizzly Ranch, Nakoma Column1

Median Sales Price Average Sold Price Lowest Sold Price Highest Sold Price Average Days on Market Homes Sold

Year To Date

$ $ $ $

$ $ $ $

MARCH 2021 935,000 909,300 580,000 1,300,000 253 7

% Change 145% 138% 71% 206% -8% 250%

Golf Course Communities Whitehawk, Grizzly Ranch, Nakoma $935,000

$382,000

$909,300

$382,000 2020

2021

MARCH

MARCH

YEAR TO DATE

YEAR TO DATE

Median Sales Price

Average Sold Price

NOTE: Effective March 15, 2021, the Plumas Multiple Listing Service consolidated the various geographical market areas into larger regions. The market areas we have reported on historically remain the same except for the addition of Nakoma into the Golf Communities Report.

For the Golf Course Communities comparison, only Whitehawk had sales in 1st quarter 2020, so the YTD comparisons are accurate.

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma When is a negative number actually a positive result?

The percentage decrease in Days On Market!

GRAEAGLE-BLAIRSDEN Column1

Year To Date

Year To Date

MARCH

MARCH

2020

2021

Graeagle-Blairsden

% Change

Median Sales Price

$

294,000

$

390,950

33%

Average Sold Price

$

330,545

$

453,107

37%

Lowest Sold Price

$

220,000

$

285,000

30%

Highest Sold Price

$

675,000

$

950,000

41%

Average Days on Market

203

168

-17%

11

14

27%

Homes Sold

PORTOLA Note: Grizzly Ranch is in Golf Communities

Year To Date

Year To Date

MARCH

MARCH

2020

Column1

2021

YEAR TO DATE

Average Sold Price

$277,500

$

277,500

68%

Average Sold Price

$

170,015

$

201,750

19%

Lowest Sold Price

$

55,000

$

100,000

82%

Highest Sold Price

$

328,000

$

478,000

46%

Column1

YEAR TO DATE

Median Sales Price

% Change

165,000

LOYALTON

2021 MARCH

Portola

$

158

91

-42%

13

14

8%

Homes Sold

2020 MARCH

(Grizzly Ranch reported in Golf Communities)

Median Sales Price

Average Days on Market

$294,000

Year To Date

Year To Date

MARCH

MARCH

2020

2021

$453,107

$390,950

$330,545

$201,750

$170,015

$165,000

2020

2021

MARCH

MARCH

YEAR TO DATE

YEAR TO DATE

Median Sales Price

Average Sold Price

Loyalton (No sales 1st qtr. 2020)

% Change

Median Sales Price

$

-

$

290,000

N/A

Average Sold Price

$

-

$

264,500

N/A

Lowest Sold Price

$

-

$

185,000

N/A

Highest Sold Price

$

-

$

320,000

N/A

$290,000

$-

$264,500

$2020

2021

MARCH

MARCH

Average Days on Market

0

119

N/A

YEAR TO DATE

Homes Sold

0

5

N/A

Median Sales Price

YEAR TO DATE

Average Sold Price

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma

BECKWOURTH Column1

Year To Date

Year To Date

MARCH

MARCH

2020

2021

Beckwourth $722,000

% Change

Median Sales Price

$

437,500

$

722,000

65%

Average Sold Price

$

437,500

$

722,000

65%

Lowest Sold Price

$

325,000

$

575,000

77%

Highest Sold Price

$

550,000

$

869,000

58%

Average Days on Market

229

202

-12%

2

2

0%

Homes Sold

CHILCOOT

Year To Date

Year To Date

MARCH

MARCH

2020

Column1

2021

% Change

204,500

$

-

-100%

Average Sold Price

$

204,500

$

-

-100%

Lowest Sold Price

$

180,000

$

-

-100%

$

229,000

CLIO Column1

-

2021 MARCH

YEAR TO DATE

YEAR TO DATE

Median Sales Price

$214,500

Average Sold Price

0

-100%

2

0

-100%

$214,225

$-

$-

2020

-100%

130

Homes Sold

Note: Whitehawk is in Golf Communities

$

2020 MARCH

Chilcoot

$

Average Days on Market

$437,500

(No sales 1st qtr. 2021)

Median Sales Price

Highest Sold Price

$437,500

$722,000

2021

JUNE

JUNE

YEAR TO DATE

YEAR TO DATE

Median Sales Price

Average Sold Price

Year To Date

Year To Date

Clio

MARCH

MARCH

(Whitehawk reported in Golf Communities) No sales in Clio 1st qtr. 2020

2020

2021

% Change

Median Sales Price

$

-

$

521,500

N/A

Average Sold Price

$

-

$

521,500

N/A

Lowest Sold Price

$

-

$

450,000

N/A

Highest Sold Price

$

-

$

593,000

N/A

$521,500

$-

$521,500

$2020

2021

MARCH

MARCH

Average Days on Market

0

168

N/A

YEAR TO DATE

Homes Sold

0

2

N/A

Median Sales Price

YEAR TO DATE

Average Sold Price

Dickson Realty is dedicated to helping you keep a pulse on the local market and real estate related information by providing the latest news, trends, and issues affecting the area’s real estate market.

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma

rates balance out the equation to create a very affordable monthly payment.

2018

VERSUS

2021

LOW rates! *The information above does not include any tax or insurance payments; your actual payment may be higher. Sample rate based on a purchase price of $650,000 with a 20% down payment and a loan amount of $520,000 with a 30-year term. Principal and interest payment: $2,123.00 with a rate of 2.750% , an APR of 2.850%, and discount points of 0.985%. Actual payment obligations may vary.

Senior Loan Officer

STEPHANIE HANNA m 775-762-9114 Stephanie.Hanna@Synergyhm.com

stephaniehannaloans.com 1100 Caughlin Crossing Reno, NV 89519 NMLS #188917 © 2021 Synergy Home Mortgage, LLC. All Rights Reserved. This communication does not constitute a commitment to lend or the guarantee of a specified interest rate. All loan programs and availability of cash proceeds are subject to credit, underwriting and property approval. Programs, rates, terms and conditions are subject to change without notice. Other restrictions apply. 1100 Caughlin Crossing, Suite 1A, Reno, NV 89519. Corp NMLS# 1593061 (www.nmlsconsumeraccess.org). Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. Loans made or arranged pursuant to a California Financial Lenders Law license.

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma

The home selling process can seem like a Herculean job. But your agent and the rest of your expert and emotional support network will help you deal. Here’s your birds-eye view of the 11 main steps to selling a house.

• • • • • • • • • • •

Step 1: Decide to sell your house.

Step 2: Research the market.

Step 3: Select an agent.

Step 4: Price your home.

Step 5: Prepare your home.

Step 6: Market your home.

Step 7: Be ready for home showings.

Step 8: Entertain offers.

Step 9: Negotiate with the buyer.

Step 10: Have your home inspected.

Step 11: Close the deal.

•

You can depend on a REALTOR® to help you every step of the way!

A REALTOR® is a broker or agent who belongs to the National Association of REALTORS® (NAR), the largest trade group in the country. (Full disclosure: NAR publishes HouseLogic.com). A REALTOR® commits to following a strict Code of Ethics intended to protect buyers and sellers; for example, REALTORS® pledge themselves to protect and promote the interests of their client. Agents and brokers who are not NAR members can’t call themselves REALTORS®. There are more than 1 million REALTORS® in the United States. All agents of Dickson Realty are REALTORS®.

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma

How much is my house worth?

What you paid doesn't matter You may have a dollar figure in mind— perhaps based on what you paid originally, plus a little extra. Because homes appreciate, right? Maybe yes, maybe no.

While a hefty increase in value is nice in theory, “ultimately, it's up to the market.”

How To Price a House To Sell Like Hotcakes

By Angela Colley Wondering "how much is my house worth?"

Putting a price tag on a home you're trying to sell is a tricky thing. For one, it's your home, crammed full of memories, hopes, and dreams—and all that stuff can cloud your thinking and lead you toward the wrong price. There are consequences: Shoot too high, and your home could languish on the market for months and maybe not sell at all. Price it too low and you could bilk yourself out of a whole lot of dough. That's why we're here to guide you through this tough but critical decision; read on to pinpoint a price that's just right.

Think of it this way: Would you buy a banana for $1 if those same bananas were on sale down the block for 69 cents? Of course not! And, of course, a home ain't no banana.

No matter what you paid for your home, market values fluctuate—both up and down. This can work for you or against you.

But all that matters on the open market is what buyers are willing to pay now.

Use all your tools: Comps, AVMs, and your Realtor® The best way to get a handle on your home's sales price are the prices of similarly sized homes in your neighborhood— otherwise known as “comparables," or “comps." For example, if a house near yours with the same square footage and numbers of bedrooms and bathrooms, and in similar condition, sold for $230,000 within the past three months, you can bet your own price will be in that ballpark.

For a quick snapshot, several websites (including this one) offer automated valuation models, or AVMs, where you type in your address and then get a price based on an algorithm that factors in comps in your area. But AVMs are just a starting point.

“No one has actually put eyes on your house, so an AVM can’t really give you an accurate price.” That's why you need your Realtor to visit your home, so they can factor in your home's unique strengths and weaknesses along with comps to come to a better estimate.

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma

you’ll be able to see a price range for yourself, so you won't feel like you're just having to blindly trust your Realtor.

Factor in upgrades with a grain (or two) of salt Yep, you poured $10,000 into your brand-new chef's kitchen, or $15,000 to install an in-ground swimming pool. Sweet! So, it stands to reason that you'd make that money back when you sell, right? Well, not quite. Surveys by the National Association of Realtors® show that your return on investment for home improvements depends on what kind of renovation you've pulled off— and how much prospective buyers want it in your area. Refinishing hardwood floors, for instance, will reap a 100% return, paying for itself. Convert a basement to a living area, and you'll recoup only 69% of those costs. The harsh truth: Not everyone is going to fall head over heels with your five-seat built-in hot tub.

So do your research and find out what those upgrades will really get you.

you’re a dollar outside of that range it is going to be like your house didn’t exist—they’ll never see it." In other words: Price your home at $300,000, and you could miss out on a whole lot of people who are searching in the $250,000–$299,999 price range. So, if you're on the cusp, consider rounding down to capture more eyeballs. Remember what we said about padding? It cuts both ways.

Test the waters with a soft rollout While choosing a price can be scary, consider this one small loophole: Some brokerages offer a “soft" rollout plan in which they highlight the house as “coming soon" online, without officially listing the house in a multiple listing service. That buys you time to test the market, see if people will click at that price—then adjust accordingly without having to officially lower or raise your price on the record.

Leave some wiggle room Most buyers love to negotiate when you’re trying to sell your house. So, it helps to “let them win one.” Instead of starting out with the absolute lowest price you can afford to go, add a bit of a cushion. How much? You might round off your asking price in $5,000 increments. So if you know you want $347,000 for your house, you can play it safe and round up to $350,000.

Also keep in mind that many first-time buyers may have a hard time coming up with cash for closing in addition to their down payment, even if their finances are good and they're qualified for a loan. Offering to cover closing costs— while sticking to a higher asking price—might help seal the deal.

Price with Internet browsing in mind Once you find yourself a ballpark price you're happy with, it's time to fine-tune it. Keep shoppers' online search parameters firmly in mind—small differences in your price can spell a big difference in your exposure.

“Home buyers typically fill out a Web form that has a minimum price and maximum price." “If

When you need expert guidance in pricing your home for sale, contact Dickson Realty’s Portola Office. Their REALTORSÒ are always prepared with the latest comps and accurate market information. Dickson is able to help you “price right” to achieve the maximum benefit from the sale of your home.

Office Info: Phone: (530) 832-1700 Email: portolainfo@dicksonrealty.com Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma

Home Office Tax Deduction: 2 Very Different Ways to Claim It One way lets you deduct home office expenses easily; the other is harder, but might mean a bigger deduction.

Pro Tip: Not sure how big your house is?

Check the documents you got when you bought your home — there's probably a detailed rendering. Or measure it. Or check your property tax bill.

2. The simplified way. Take $5 multiplied by your home office's square footage up to 300 square feet or $1,500 maximum deduction and, boom, you're done. You won't have to keep track of your actual expenses. Very little math happening here.

If you're self-employed and work from home, you may be able to save some bucks at tax time by using the home office tax deduction.

You have two choices on how to claim it, and those choices depend on your preference for time savings or money savings.

Home Office Deductions: Choose the Simple or Complicated Way 1. The complicated way. Fill out IRS Form 8829 — all 44 lines of it. Figure the proportion of your home's overall space devoted to your office and then calculate how much of your overall home expenses went toward your home office. Lots of math happening here.

An example: If your home office takes up 300 square feet in a 3,000-square foot house, you're using 10% of your home for your work.

So, you can take 10% of costs like utilities, homeowners insurance, homeowners association fees, security, and general repairs and maintenance.

If you take the simpler math option, you may not be able to deduct as much as you can with the regular method. You can't depreciate your home office, for example. So consider the value of your time against potential tax savings if you believe you're eligible for more than the $1,500 cap.

Here are some other things you need to know.

What Counts As A Home Office For Tax Deduction?

A room or defined area of your home you use just for business. It can't double as your craft room or home gym. Also, that space must be your principal place of business, or the place where you see customers.

Pro Tip: If you use your home as the sole location of your business and store your inventory there, the place where you store your products does not have to be just for business. Let's say you run a business selling jewelry from a room in your basement.

If you store your jewelry inventory in another part of the basement that is separate and identifiable, you can deduct that space even if you use the rest of the basement as a man cave, home gym, or guest room.

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma

Home Deductions When You Travel for Work You don't have to do all your work from home to take the home office deduction. If you're a freelance journalist, you probably spend a lot of time outside of your office interviewing people. As long as your home office is essential to your business, and you spend substantial time there, doing your writing or other work, you're good.

Use Your Separate Structures for Home Deductions Separate structures on your property, like a detached garage you've converted to an office or studio, are eligible for the home office deduction.

Unlike an office inside your home, a separate structure doesn't have to be your main place of business to qualify for a deduction. That's because the IRS believes your family is less likely to use a separate structure as a parttime play area or den, says Mark Luscombe, principal analyst for tax and consulting at CCH. Home Office Deductions for In-Home Care Providers Why, yes. We're glad you asked. If you provide in-home daycare services for children, the elderly, or disabled persons as a licensed or authorized business, you don't have to use the space exclusively for the daycare business to take the home office deduction.

You calculate your deduction by dividing the number of hours you used your home workspace to provide daycare services during the year by the total number of hours during the year.

For example, if you do daycare 40 hours a week for 50 weeks a year, that's 2,000 hours a year, divided by the 8,760 hours in a regular year equals 22.8%. So, you could take 22.8% of the ($1,500 maximum deduction — $5 per square foot times 300 square feet maximum) simplified deduction for your daycare workspace.

Home Deductions for Remote Employees Although freelancers can realize tax benefits, full-time remote employees who use their home exclusively and regularly for business can't. The benefit for remote workers was excised in the Tax Code revamp enacted by Congress in late 2017.

Home Office Deduction: Don't Forget Depreciation Depreciation is based on the idea that everything — even a home — wears out eventually. Here's how to figure out home office depreciation: 1. Add the home's purchase price to the cost of improvements.

2. Subtract the value of the land it sits on.

3. Multiply that cost basis by the percentage of your home used for work. This gives you the tax basis for your home office.

4. Divide by 39 years (this is the standard number required by the tax law.)

For example: • Purchase price: $100,000 • Value of land: $25,000 • Cost basis: $75,000, plus cost of improvements you’ve made • Tax basis: $75,000 x 10% = $7,500 • Depreciation deduction: $7,500/39 years* For a crash course on depreciation, tax to a tax pro or read IRS Publication 946. If you opt for reading the IRS pub, make a large pot of coffee.

Pro Tip: Depreciation deductions on your home office may increase the amount of profit on a home sale that's subject to taxes. Most taxpayers don't owe income tax on up to $250,000 of profit if you're a single filer, $500,000 for joint filers. Talk to a tax professional on how depreciation deductions affect your tax liability when you sell.

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

Consult a tax professional for such advice.

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma

How Long to Keep Tax Records and More: A Checklist

Note: In light of COVID-19 crisis, the IRS has extended the income tax payment and filing deadline for individual and business returns from April 15, 2021, until May 17, 2021. This relief does not apply to estimated tax payments for tax year 2021 that are due on April 15, 2021. You don’t need to file additional forms to qualify for this extension.

Unless you live in a Hollywood Hills mansion, you probably don't have space to store years of tax and insurance paperwork, warranties, and repair receipts related to your home.

But you need that paperwork if you need to prove you deserve the tax deductions you took, to file an insurance claim, or to figure out if your busted oven is still under warranty.

To help you organize your piles of papers, we've created a handy checklist of how long to keep tax records.

First, a little background on IRS rules, which informed some of our charts: •

•

The IRS says you should keep tax returns and the paperwork supporting them for at least three years after you file the return -- the amount of time the IRS has to audit you. So that’s how long we advise.

Check with your state about state income tax records. Most states make you keep them as long as the federal government does — three years. But Montana wants you to keep them for five years. And Ohio recommends you hang on to them 10 years. Yes, an entire decade.

The IRS can also ask for records up to six years after a filing if they suspect someone failed to report 25% or more of their gross income. And the agency never closes the door on an audit if it suspects fraud. Just sayin'.

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

(Article courtesy of House Logic: some content format changed for ease of reading)

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma

Home Sale Records Document Home sale closing documents, including closing statement Deed to the house Builder's warranty or service contract for new home Community/condo association covenants, codes, restrictions (CC&Rs) Receipts for capital improvements Mortgage payoff statements (certificate of satisfaction or lien release)

How Long to Keep It As long as you own the property + 3 years As long as you own the property Until the warranty period ends As long as you own the property As long as you own the property + 3 years Forever, just in case a lender says, "Hey, you still owe us money."

Why you need these docs: You use home sale closing documents and receipts for capital improvements records to calculate and document your profit (gain) when you sell your home.

Your deed and mortgage payoff statements prove you own your home and have paid off your mortgage, respectively.

Your builder’s warranty or contract is important if you file a claim. And sooner or later you’ll need to check the CC&R rules in your condo or community association.

Annual Tax Deductions* Document Property tax payment (tax bill + canceled check or bank statement showing check was cashed) Year-end mortgage statements Tax returns

How Long to Keep It 3 years after the due date of the return showing the deduction 3 years after the due date of the return showing the deduction 3 years from the date you file your return or 2 years from the date you paid the tax, whichever is later

Why you need these docs: To document you’re eligible for a deduction or tax credit. *These deductions are relevant if you itemize. The standard deduction has been increased, which means fewer people will itemize than have in the past.

Insurance and Warranties Document Home repair receipts Inventory of household possessions Homeowners insurance policies Service contracts and warranties

How Long to Keep It Until warranty expires Forever (Remember to make updates.)

Until you receive the next year's policy As long as you have the item being warrantied

Why you need these docs: To file a claim or see what your policy or warranty covers.

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma

Investment (Landlord) Real Estate Deductions Document Appraisal or valuation used to calculate depreciation Receipts for capital expenses, such as an addition or improvements Receipts for repairs and other expenses

How Long to Keep It As long as you own the property + 3 years As long as you own the property + 3 years

3 years after the due date of the return showing the deduction Landlord's insurance payment receipt (canceled 3 years after the due date showing the check or bank statement showing check was deduction cashed) Landlord's insurance policy Until you receive the next year's policy Partnership or LLC agreements for real estate As long as the partnership or LLC exists investments Landlord insurance receipts (canceled check or 3 years after you deduct the expense bank statement showing check was cashed) Section 1031 (like-kind exchange) sale records As long as you own the property + 3 years for both your old and new properties, including HUD-1 settlement sheet Why you need these docs: For the most part, to prove your eligibility to deduct the expense. You’ll also need receipts for capital expenditures to calculate your profit (gain) or loss when you sell the property.

Landlord’s insurance and partnership agreements are important references.

Miscellaneous Records Document Wills and property trusts Date-of-death home value record for inherited home, and any rules for heirs' use of home Original owners' purchase documents (sales contract, deed) for home given to you as a gift Divorce decree with home sale clause Employment records for live-in help (W-2s, W4s, pay and benefits statements)

How Long to Keep It Until updated As long as you or spouse owns the home + 3 years As long as you or spouse owns the home + 3 years As long as you or spouse owns the home + 3 years 4 years after you make (or owe) payroll tax payments

Why you need these docs: Most are needed to calculate capital gains when you sell.

Organizing Your Home Records Because paper, such as receipts, fades with time and takes up space, consider scanning and storing your documents on a flash drive, an external hard drive, or a cloud-based remote server. Even better, save your documents to at least two of these places.

Or, you can consider an app such as Smart Receipts, which is available via Google Play and Mac App Store. Smart Receipts lets you track your finances, including receipts, for yourself or your employer. You can choose from default data types including dates, price, tax, receipt categories, comments, and payment methods.

Digital copies are OK with the IRS as long as they’re identical to the originals and contain all the accurate information that was in the original receipts. You must be able to produce a hard copy if the IRS asks for one.

Tip: Tax season and year’s end are good times to purge files and toss what you no longer need; that's often when the spirit of organization moves us.

When you do finally toss out your home-related paperwork, use a shredder. Throwing away intact documents with personal financial information puts you at risk for identity theft.

Dickson Portola Team

289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma

"I'VE CONQUERED A LOT OF THINGS ... BLOOD CLOTS IN MY LUNGS — TWICE ... KNEE AND FOOT SURGERIES ... WINNING GRAND SLAMS BEING DOWN MATCH POINT ... TO NAME JUST A FEW, BUT I FOUND OUT BY FAR THE HARDEST IS FIGURING OUT A STROLLER!" – SERENA WILLIAMS "I WANT MY CHILDREN TO HAVE ALL THE THINGS I COULDN'T AFFORD. THEN I WANT TO MOVE IN WITH THEM." – PHYLLIS DILLER "HAPPY MOTHER’S DAY, MOM! (AND WHILE I HAVE YOU, QUICK APOLOGIES FOR AGES 13-21.)"

"A MOTHER IS THE PERSON YOU CAN ALWAYS CALL TO SEE HOW LONG CHICKEN LASTS IN THE FRIDGE." "SILENCE IS GOLDEN. UNLESS YOU HAVE KIDS. THEN SILENCE IS JUST SUSPICIOUS." "MOM: I LOVE YOU AND YOUR SUPER LONG VOICEMAILS." “IT’S NOT EASY BEING A MOM. IF IT WERE EASY, FATHERS WOULD DO IT.” – BETTY WHITE “WHY DON'T KIDS UNDERSTAND THAT THEIR NAP IS NOT FOR THEM BUT FOR US?” — ALYSON HANNIGAN Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma

MAY 2021 SUN

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SAT 31

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National Nurses Day 09

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08 Indian Taco Feed Grange Hall

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Armed Forces Day 16

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“The nursing profession has long been charged with the noble, awe-inspiring, messy, and exhausting work of caring for the sick and suffering.

Nurses have the enormous privilege of carrying the burden of preserving human dignity amid uncertainty. Together with their physician colleagues and exceptional care teams, nurses meet and care for people when they’re at their most fragile – bringing hope to what, in some cases, may be the worst day of their lives.

Nurses hold a beautiful contradiction: To be able to walk alongside another person during their moments of vulnerability requires a special type of selflessness and strength. Most days, this profession feels like a calling – it is the most essential, impactful, rewarding type of work. But there’s a reason why healthcare delivery is often referred to in terms of war metaphors. Nurses are “in the trenches” and “on the front lines of care.” They “go into battle” and if they’re lucky, they “emerge unscathed” – but more often not, nurses carry emotional and physical “battle scars”.

I’d like to thank the nurses who run towards the line of danger as the rest of us retreat into the safety of our homes. This was not a battle you signed up for, but it is one for which you’re taking up arms and fighting regardless. You’ve done the mental calculus and against human nature, chosen selflessness over self-preservation – not just today in the war against the invisible enemy that is COVID-19, but every time you step into your scrubs. Thank you for choosing to serve and care for those that might be afflicted with the virus, even though the mere act of caring for them may put yourself and your loved ones at risk. During this unprecedented period of time marked with angst and anxiety – what a few have referred to as our generation’s “World War” – thank you for being the helpers and heroes we look to. It is never easy work, and few will understand why we do it – but we charge on, ready to fight another day.”

In awe and gratitude, Dickson Portola Team A fellow nurse (Lucia Huang, RN; Cipher Health)

289 Commercial Street | Portola, CA 96122 | 530.832.1700

NEWS YOU CAN USE MAY 2021 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly Ranch & Nakoma

Date and Event Saturday, May 1st

Location

Time

Contact Info.

Details Informational presentations and the opportunity for discussion with local and regional experts on the subjects. Of ignition resistance and wildfire evacuation safety and preparedness.

Sierra Brooks Loyalton

NFPA encourages participation in the Firewise USA® Recognition Program as a way to reduce the risk of property loss or damage due to wildfire. Organizations and communities often find value in using the name and logos in connection with wildfire risk reduction activities to achieve or maintain national Firewise USA® location recognition.

MAY 8TH INDIAN TACO FEED FUNDRAISER

Sierra Valley Grange Hall Vinton, CA

5:30 pm

SVV FD (530) 993-1111

FUNDRAISER BENEFIT FOR SIERRA VALLEY VOLUNTEER FIRE DEPARTMENT. OPEN TO 50% CAPACITY. Social Distancing, masks and TO GO CONTAINERS. One of the communities most anticipated annual fundraising events.

All proceeds go to the SVVFD.

Dickson Portola Team 289 Commercial Street | Portola, CA 96122 | 530.832.1700