San Francisco Investment Property

So I'm very behind in my TV watching as a result of not having cable for several years.  Finally broke down a few months ago and signed up with Comcast.  I caught this fantastic series on KQED which has fascinating San Francisco history.  Here's a snippet of Sin, Fire, & Gold.  Now I need to figure out how to buy the DVD.

San Francisco parents are likely aware of these proposed changes.  Feel free to pass along any other details that you are aware of.

More details are below as per the San Francisco Unified School District's website passed along by Zephyr staff.

SFUSD website

The proposed redesign was originally supposed to be done in time for the 2009-2010 school year apparently, which obviously didn't happen.  They're then said it would be done for the 2010-2011 school year, but now the site is saying it'll launch it for the 2011-2012 school year.

There are several proposed ideas of how to redesign the system, but the one that seems to have the most traction at this point isn't neighborhood-specific (i.e. if you live in Noe Valley, you're assigned to a Noe Valley school), but rather a zoning system similar to the Berkeley School District.

Basically, what this entails is dividing the City up into Zones (Berkeley, for instance, has three zones, though many more neighborhoods) which would each be ethnically/socioeconomically diverse.  You would still rank your school choices as happens now, but are given priority to the schools that are in the zone where you live in order to help minimize what often happens now where there are some kids who have a 45 minute commute to school if they live in Silver Terrace and go to school in the Marina or live in Outer Sunset and go to school in Potero. It keeps kids closer to where they live, but still provides some choice and some balance at the schools.

Which way it will ultimately go is still not finalized though.

Tips from Leonard Spoto of Asset Exchange Company.  If you need a go to person to facilitate your exchange, Leonard is your guy!

Issue #1: Hidden Value in Failed Exchanges
Did you know that even if your 1031 Exchange fails you may be able to defer your tax liability for an additional 12 months?  Due to a wrinkle in the tax code, investors who open a 1031 Exchange account in 2009 but fail or cancel the 1031 Exchange and receive the sale proceeds in 2010 will be obligated to pay taxes on the transaction by April 15th of 2011.  That’s an additional 12 months of tax deferral!  What could you do with your tax dollars for an additional 12 months?
Keep in mind the taxpayer must have a bona fide intent to exchange.  Please contact Asset Exchange Company at 877-471-1031 if you would like to discuss this issue further.

Issue #2: Less than 180 Days to Exchange!
Most people automatically assume that they have 180 days to complete their 1031 Exchange.  In some instances this is not the case.  For clients who close escrow on their relinquished property after October 17th, the exchange must be completed on or before tax returns are filed.

The tax code states that the timeframe to complete a 1031 Exchange is 180 days or until taxes are due, whichever is sooner.

For a calendar year taxpayer, taxes are due on April 15th.  If escrow closes on the relinquished property after October 17th, the exchange period is less than 180 days.     However, the taxpayer can get the full 180 days, by obtaining an automatic extension of the due date for filing the tax return.

Here’s the latest e-newsletter from my fantastic accountant.  I highly recommend Pat Polo who I’ve been working with for the last 10+ years.  Not the least expensive but you don’t want to cut corners when it comes to having your taxes done correctly.

The end of the 2009 year will also spell the end of many tax breaks for both individuals and businesses. Some of these tax breaks are "temporary" credits and deductions that Congress typically extends for another year or two at the last moment. Other sunsetting provisions are relatively new, with no previous track record on their being extended. In either case, however, the unfamiliar economic climate in which our nation finds itself makes predicting whether Congress will find the funding necessary to extend any particular tax break this time around, beyond 2009, a matter of guesswork. The following is a list of important tax breaks expiring at the end of 2009.

A word to the wise: if you can take advantage of any tax break on this list before 2009 closes, do so. At this point, you cannot -and should not-- count on having any of them available in 2010.

Homebuyer tax credit. The first-time homebuyer tax credit expires sooner rather than later in 2009. That is, the credit expires November 30 - the credit provision requires that the residence be "purchased" by November 30, with "purchase" defined as taking place when title passes and the full purchase price is paid (that is, at the "closing") and not earlier when the contract of sale is executed and a down payment is escrowed. The credit is equal to 10 percent of the purchase price of a principal residence, up to $8,000. It applies to homes purchased after December 31, 2008, and before December 1, 2009.

Itemized state and local sales tax deduction. The ability to deduct state and local sales taxes in lieu of state and local income taxes is available until December 31, 2009, when the itemized state and local sales tax deduction expires.

Higher education tuition deduction. The higher education tuition deduction, permitting taxpayers to take an above-the-line deduction for qualified tuition and related expenses, will expire this year. The maximum deductible amount is $4,000 for taxpayers with adjusted gross income not exceeding $65,000 ($130,000 for joint filers). Taxpayers whose income exceeds that limit but does not exceed $80,000 ($160,000 for joint filers) may deduct up to $2,000 in qualified expenses.

Full e-newsletter here:  http://www.execusite.com/shwiffcpas/newsletter.html

Every citizen in Burlingame is urged to take the two-hour "Get Ready" course offered by Central County Fire to gain a basic understanding of how to prepare yourself, your family, your home and your workplace for a major disaster. The next class will be offered on November 4th from 6:30 to 8:30 p.m. Admission is free. To register, call the Central County Fire Department at 650-558-7600.

City of Burlingame website

If you're a S.F. resident one of the best emergency prep trainings I took many years ago was offered by NERT (Neighborhood Emergency Response Team).  The link will take you to their upcoming trainings.

For now, do your annual check of your emergency kit or put one together if you haven't already.  If you Google Emergency Preparedness Kits, there are several choices of companies where you can purchase one online if you'd rather not assemble your own.

Be safe!