15 01 jan kreia newsletter

Vol 15-01

President’s Letter

Monthly Newsletter for KREIA Members President’s message:

page 1

Welcome New Members! page 6 Ed Melton Award page 3

New IRS Mileage Rules

Happy New Year!!!

I hope everyone enjoyed our Christmas program. The crowd participation made for a memorable night. Check out the pictures on Page 7, and videos on Facebook

Dennis Erhard The committee for next year’s party has their work cut out for them. Not sure they will be able to top last month’s entertainment!!

Thanks to everyone who helped plan and implement December’s program.

Page 4

You helped KREIA raise $15,785.00 for the Home of the Innocents. It is because of your support that KREIA has raised over $150,645.00 for the kids!

Don’t Get Burned!

This is the best time of year for New Investors to set goals. Old Investors look into their magic balls and see what they accomplished last year and then set goals for this year. I personal update my personal financial statement once a year to make sure I’m growing in the right direction.

Page 5

Calendar of Events Page 6

FUN PHOTOS from December Meeting!

Page 7

Government Affairs Page 9

2015 Committees page 9

Taxes play a huge part in this formula.

“IT’S NOT HOW MUCH MONEY YOU MAKE, IT’S HOW MUCH YOU GET TO KEEP!!”

This month’s feature speaker is Mike Grinnan CPA. He will update us on all the tax law changes (Good, Bad and Ugly!), that were implemented on January 1st 2015 as a result of the anti-investor and anti-real estate professional Dodd Frank Act.

I hope you have a great and prosperous year!

Your President Dennis Erhard

Quote of the Month: “You can have everything in life you want, if you will just help enough other people get what they want.”

- Zig Ziglar Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

Your KREIA Leaders

President Dennis Erhard

Vice President Frank Miller

Secretary Treasurer Treasurer Elect David Thomas Mike Grinnan CPA Wally Kallbreir

Board of Directors

Mike Butler

Tamara West

George Foree

Duffy Ford

Eric George

Dan Jones

Erik Jamie Greenwell Hitzelberger

Fred Helm

Rue McFarland

Fred Butler

Demetrius Dowdle

KREIA Newsletter published monthly and serves both as a newsletter and a reminder notice of your upcoming monthly meeting.

KREIA is a member only association focused on education, networking, and resources for today’s investor and to educate real estate investors from the basics to the complex. We are an excellent choice for all levels of investors. Whether you are just starting out in real estate investing, or are working on your hundredth deal, KREIA can help you learn more, earn more, and have more fun doing it.

To Subscribe to the KREIA Newsletter is simple and easy. Go to KREIA.com and join the Kentuckiana Real Estate Investors Association.

Group Discounts are available.

To Advertise in the KREIA Newsletter To Advertise on KREIA.com To Sponsor A Monthly Meeting To Sponsor A LOTS Program Please contact News@KREIA.com

KREIA Sponsorships Diamond: Full Page Ad + Table + Pre-

Meeting Speaker Only $995 or $99 mo.

Gold: Half Page Ad + Table + PreMeeting Speaker Only $499

Silver: ¼ Page Ad Only $299 Parliamentarian Hank Schildknecht

Past President Connie Horsey

Your KREIA Leaders are involved and chair several committees to make KREIA happen every month for you and your fellow KREIA Members.

Get involved with KREIA. You can help with the monthly meetings, L.O.T.S. Program, this newsletter, Saturday Workshops, Government Affairs, Social, Annual Picnic, Marketing, the new KREIA website and more PLUS You Get EXTRA KREIA Points for everything you do!

Get phone and emails of all KREIA members with the new KREIA Online Member Directory.

Reach out and tell them they are doing a great job! (It makes them do more for KREIA!)

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Saturday Seminars, and more!

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Place Your Ad Now at KREIA.com --------------------------------------------”KREIA Advertising is by far, hands down, the absolute best advertising dollar ever spent for Borders & Borders!”

Harry Borders, B&B Attorneys

Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

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Mark Hass Receives Ed Melton Award

Congratulations Congratulations to Mark Hass, the 2014 recipient of the Ed Melton Award, the recognition given annually at our December meeting to a club member that has contributed to the growth and success of the Kentuckiana Real Estate Investors Association.

Mark was the 17th person to have received this prestigious honor.

Mark Hass! as to the repercussions to real estate investors on actions and potential courses of action of the state legislature and local Metro government. He has attended many meetings with local officials defending our rights as investors and showing the many positive contributions KREIA and its members have had on the local housing market.

It is all so appropriate that Mark received this award at our December meeting, where we make our annual combined donation to the Home of the Innocents. As you all know, for the last number of years, Mark has generously donated the use of his vacation home as one of the select items to be presented during the live auction. He has thus in effect contributed several Mark Hass was found to be well-deserving of the award thousand dollars to the charity that KREIA has for many reasons. supported for over 15 years.

He has been an active real estate agent and investor for So we all thank Mark Hass for all of his years of service many years. A major portion of his career has been to KREIA, and congratulate him for receiving the 2014 devoted to selling to fellow investors properties that Ed Melton Award. have gone through foreclosure. Many nationwide lenders have found Mark to be very resourceful in Henry Schildknecht helping them dispose of their REO properties.

Attorney at Law He has served on our Board for many years, and was (502) 893-4494 Phone our President for two years, from 2006 to 2008, hankatty@gmail.com providing valuable leadership for our group.

Each November the prior recipients gather for our annual dinner meeting. At that time we discuss those KREIA members that have given so much of their time and energy to our organization and decide whom should be honored for their service with this year’s award.

In addition he has contributed greatly to the governmental affairs committee established by the board several years ago to keep our members abreast Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

3

What Is The Business Standard Mileage Rate For 2015?

The IRS has announced an increase in the optional business standard mileage reimbursement rate for 2015. The business standard mileage rate increased by one and a half cents, to 57.5 cents (up from 56 cents for 2014). The 2015 standard mileage rate for medical and moving expenses decreased slightly to 23 cents (down from 23.5 cents for 2014). The charitable mileage rate, however, is set by statute at a flat 14 cents per mile without inflation adjustment each year. The revised rates apply to deductible transportation expenses paid or incurred for business or medical/moving expenditures, or qualified charitable miles driven, on or after January 1, 2015.

Requirements Taxpayers must meet several requirements before they may use the business standard mileage rate. First, they must be either self-employed or an employee who has incurred automobile costs for business that were not reimbursed by the employer. The taxpayer must either own or lease the car.

Additional requirements are listed in IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses.

Certain types of travel are not considered deductible, however.

For example the cost of commuting from the taxpayer’s home to his or her place of business is considered nondeductible. In The IRS works with an independent contractor to establish the general, deductible transportation expenses are deemed business, medical and moving expense standard rates. The ordinary and necessary costs of: IRS and the independent contractor take into account the fixed  Traveling from one workplace to another in the course of and variable costs of operating an automobile, such as fuel your business; costs and maintenance expenses. The decline in fuel prices  Visiting clients or customers; during 2014, however, was not reflected in the business standard mileage rate for 2015. Some practitioners have  Attending a business meeting away from your regular speculated this could indicate that the IRS does not expect the workplace; or low gas prices to last. Alternatively, if prices continue to  Traveling from your home to a temporary workplace when decline, the IRS could issue a mid-year adjustment of the rate a taxpayer has one or more regular places of work. during 2015.

Fixed and variable rate (FAVR) allowance Some background Taxpayers may also use the fixed and variable rate allowance The standard mileage rates for business use, medical and to substantiate automobile expenses. Under the FAVR moving expenses, and charitable usage, may be used by an method, an employer reimburses the employee’s expenses employee or self-employed taxpayer to compute the allowable with a mileage allowance using a flat rate or stated schedule deduction attributable to his or her business use of a car. that combines periodic fixed and variable payments.

Taxpayers also have the option of calculating the actual cost of operating a vehicle for business and deducting that amount, For purposes of computing the allowance under a FAVR plan, the standard automobile cost may not exceed $28,200 for but using the standard mileage rate is the simplest method of automobiles; but the rate increases to $30,800 for trucks and computing automobile expenses because it simplifies the vans (up from $30,400 for 2014). amount of required recordkeeping. This is because business standard mileage rate is designed to take into account costs Please contact my office if you have any questions regarding how such as maintenance and repairs, gas and oil, depreciation, your business or how you as an employee can qualify for use of insurance, and license and registration fees. For example, the the standard mileage rate (and whether you might be better off depreciation component of the business standard mileage rate using the actual cost method for claiming a deduction for vehicle use). for 2015 will be 24 cents-per-mile, a two-cent increase from the 22-cents-per-mile rate that was effective for 2014.

IR-2014-114, Notice 2014-79 Because depreciation and other costs are already factored into the standard rate, taxpayers using the standard mileage rate may not deduct depreciation, maintenance and fees, gasoline, insurance, or vehicle registration costs. The plus side is that standard mileage rate taxpayers do not need to maintain detailed records on these costs.

J. Michael Grinnan, CPA.CITP

Certified Public Accountant 9900 Corporate Campus Dr, Ste 3000 Louisville, KY 40223 The taxpayer using the standard mileage rate need only keep a Office 502-657-6333 log of his or her business miles. To calculate the deduction, Fax 502-657-6334 the taxpayer will multiply the standard mileage rate by the Email Mike@JMGCPA.com number of business miles traveled. Taxpayers using the standard rate may also deduct any business-related parking Website www.JMGCPA.com fees and tolls.

Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

4

DON'T GET BURNED!

Jefferson County's Smoke Detector Ordinance In Jefferson County, there is a smoke intention of rehabbing it and reselling it, detector ordinance (#94.02) that the investor's seller must install a new requires homes, apartments and hotels to smoke detector, and then a few months have EITHER a hard wired smoke later, the investor must install a new detector OR a 10 year non-removable smoke detector. Silly but true. lithium battery smoke detector.

If you have rental properties, you MUST Here are the rules. make sure the property has the right type of smoke detectors and the right How many and where? If there are number of smoke detectors. In addition, several bedrooms located right next to you must give the tenant a copy of the each other, you need one smoke detector manufacturers instructions. in the hall between the bedrooms. If the bedrooms are separated by, for You can buy these at Home Depot or example, a kitchen, you will need more Lowes for about $25 each. than one smoke detector. If there's a bedroom in the basement, you'll need one Do NOT ask the fire department to give you smoke detectors because the in the basement as well. The detectors need to be between 4 and 12 inches from ones they give you DO NOT COMPLY WITH THE ORDINANCE!!! the ceiling.

Real Estate Closing

The owner of the property is required to make sure the proper smoke detectors are installed PRIOR to transferring title to a new owner.

It is NOT GOOD ENOUGH for the seller to slide a new smoke detector across the to the buyer. It Donated byclosing Harrytable Borders must be installed by the seller.

If the smoke detector is a 10 year nonremovable lithium battery, the owner/seller must install a NEW 10 year non-removable lithium battery detector, regardless of how old the existing smoke detector may be. So, if an investor buys a home with the

I see closing after closing where this ordinance is not complied with. It's only a matter of time before one of us gets slapped with a VERY big lawsuit over this. DON'T let it happen to you or your tenants!

Harry Borders

Borders & Borders Attorneys 920 Dupont Rd., Louisville, Ky 40207 502-894-9200 Harry@HarryBorders.com

Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

5

Welcome New KREIA Members!

Joseph Weingardt

Theron Mathis

Joshua Gagel

Dick Vreeland

Lisa Kljaich

Kent Keenan

Greg Treadway

Rodney Evans

Jeff Colgate

No Member Spotlights were submitted Please submit yourself or a fellow member

http://kreia.com/submit-member-spotlight

Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

6

Photos from December Holiday Meeting

Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

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Copyright MMXIII Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

8

2015 KREIA Committees Government Affairs Update President Dennis Erhard anointed the following people to be Chairpersons for the 2014 committees.

KREIA needs your skills and help to keep your association running properly and efficiently.

Please review the committees below and contact the Chairperson to get involved and get the most of your membership.

Help is needed with staffing + meetings both the door & membership table + Saturday Workshops + L.O.T.S. Program =================================

from Rue McFarland

January 15 Our State Government has a 30 day session in progress at this time.

There are many proposed new laws affecting real estate professionals and investors. This includes changes in property taxes and assessments, local city sales tax, homestead exemption, mortgage rules and more Here is the link to view Rue’s multi-page Government Affairs Report.

Remember to log in first https://kreia.com/Article.aspx?ID=GovernmentAffairs-Update-Jan-2015

FINANCE: Mike Grinnan CPA Mike@JMGCPA.com

PROGRAM: Frank Miller Frank@RealEstate3000.com

MEMBERSHIP: Tamara West tamaradwest@gmail.com

PHP / MENTOR: Duffy Ford dford.dna_res@yahoo.com

EVENTS: Wally Kallbrier kallbreier54@yahoo.com

WEBSITE: Mike Butler Mike@MikeButler.com

ADVERTISERS: Demetrius Dowdell dowdell.demetrius@gmail.com

GOVERNMENT AFFAIRS: Rue McFarland ruemac@bellsouth.net

MEMBER BENEFITS: Tamara West tamaradwest@gmail.com

Rick Wardlow, Joe Gribbins, Allee Harmon, Bill Dollinger, Frank Miller Call 502-489-5515

http://wardlowauc.com

Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

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Copyright MMXIV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

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Copyright MMXIV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

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PO Box 91225 Louisville, KY 40291 Return Service Requested

.com

KREIA’s Monthly Meeting! Thursday

Jan 22nd

5:30 EARLY MEETING - BB&T BANK INVESTOR LOAN PRODUCTS

MAIN MEETING TAX UPDATE FOR INVESTORS J. MICHAEL GRINNAN CPA