ICONO News Desk

News and Information for Our Clients and the General Public
Call us now at (858) 569-8297!
San Diego Real Estate Forecast 2019

The San Diego County real estate market is continuing its long recovery from the 2008 recession and financial crisis; this is in spite of the signals of the next economic recession begun to show up across the market. Increased real estate mortgage interest rates caused ripples across the housing market in 2018, causing home sales volume to fall back.

Tax Incentives for Investment in Opportunity Zone Property

What are Opportunity Zones?

The concept of an "opportunity zone" was added to the tax Code by the 2017 tax act. An opportunity zone is a population census tract that meets the definition of a "low-income community" (as that term is defined under §45D(e) in the context of the New Markets Tax Credit) and has been specifically designated as a qualified opportunity zone (QOZ) under §1400Z-1. IRS Notice 2018-48, (July 9, 2018) includes an official list of all population census tract designated as QOZs. There are now over 8,700 certified QOZs in all 50 states, the District of Columbia, Puerto Rico and the Virgin Islands.

The designation of a census tract as a qualified opportunity zone remains in effect for the period of time beginning on the date of that designation and ending on December 31st of the 10th calendar year beginning on or after the date of designation (i.e., December 31, 2018).

Federal Tax Reform - Changes for 2018

The biggest Federal Tax Reform law in 30 years has been enacted. Congress may enact still additional changes in January 2019 that will be retroactive to 2018. Your 2018 Federal tax return will look very different from previous years. Here are a few of the biggest changes.

Tax Form Changes

Gone are Forms 1040EX and 1040A, and the new Form 1040 is up to eight pages long plus all of the former schedules and forms (forget about simplification).l

Tax Rate Changes

Both individual and corporate rates have changed. There are now seven individual rates (forget about simplification), with the maximum being 37%, and the corporate rate is now 21%. The rate change could benefit you - or in some cases, hurt you.

New Charitable Contribution Rules for Noncash Donations

The Internal Revenue Service (IRS) has long been considering what the reporting rules and substantiation requirements should be for cash and noncash gifts. Their recently issued final regulations became effective on July 30, 2018 for cash donations and in the case of noncash donations, the regulations apply to charitable contributions made on or after January 1, 2019. These new rules apply to cash and noncash gifts made by individuals, partnerships, and corporations and are an attempt to curtail the abuses of charitable contribution reporting and subsequent unearned deductions by taxpayers and appraisers.

The new rules for noncash gift reporting kick in for contributions of $5,000 or more. These gifts require a qualified appraisal and completion of Form 8283 (either Section A or Section B depending on the type of property donated.) If the taxpayer is claiming noncash contributions of $500,000 or more, the qualified appraisal must be attached to the filed tax return.

ICONO Financial Services

We can assist you at any level of your Income Tax, Accounting or Real Estate needs.
Contact Us