15 01 jan kreia newsletter
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President’s Letter page 1 Welcome New Members! page 6 Ed Melton Award page 3 New IRS Mileage Rules Page 4 Don’t Get Burned! Page 5 Calendar of Events Page 6 FUN PHOTOS from December Meeting! Page 7 Government Affairs Page 9 2015 Committees page 9 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. President’s message: 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 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. 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! 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. 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 Vol 15-01 Monthly Newsletter for KREIA Members Dennis Erhard
description
Monthly Newsletter
Transcript of 15 01 jan kreia newsletter
President’s Letterpage 1
Welcome New Members!
page 6
Ed Melton Awardpage 3
New IRS Mileage RulesPage 4
Don’t Get Burned!Page 5
Calendar of EventsPage 6
FUN PHOTOS from
December Meeting!Page 7
Government AffairsPage 9
2015 Committeespage 9
Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.comDISCLAIMER: 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.
President’s message:
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
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.
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!
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.
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
Vol 15-01 Monthly Newsletter for KREIA Members
Dennis Erhard
2Copyright 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
PresidentDennis Erhard
Vice PresidentFrank Miller
SecretaryDavid Thomas
TreasurerMike Grinnan CPA
Treasurer ElectWally Kallbreir
Board of Directors
Mike Butler
GeorgeForee
Eric George
JamieGreenwell
ErikHitzelberger
FredButler
TamaraWest
DuffyFord
Dan Jones
RueMcFarland
DemetriusDowdle
ParliamentarianHank Schildknecht
Past PresidentConnie 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!)
KREIA Newsletterpublished 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 [email protected]
KREIA SponsorshipsDiamond: Full Page Ad + Table + Pre-Meeting Speaker Only $995 or $99 mo.
Gold: Half Page Ad + Table + Pre-Meeting Speaker Only $499
Silver: ¼ Page Ad Only $299
Business Card : Ad Only $149
Event Sponsor: Meeting, LOTS, 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
FredHelm
Congratulations Mark Hass!
3Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.comDISCLAIMER: 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.
Mark Hass Receives Ed Melton Award
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.
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.
Mark Hass was found to be well-deserving of the award for many reasons.
He has been an active real estate agent and investor for many years. A major portion of his career has been devoted to selling to fellow investors properties that have gone through foreclosure. Many nationwide lenders have found Mark to be very resourceful in helping them dispose of their REO properties.
He has served on our Board for many years, and was our President for two years, from 2006 to 2008, providing valuable leadership for our group.
In addition he has contributed greatly to the governmental affairs committee established by the board several years ago to keep our members abreast
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 thousand dollars to the charity that KREIA has supported for over 15 years.
So we all thank Mark Hass for all of his years of service to KREIA, and congratulate him for receiving the 2014 Ed Melton Award.
Henry SchildknechtAttorney at Law
(502) 893-4494 [email protected]
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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.
The IRS works with an independent contractor to establish the
business, medical and moving expense standard rates. The
IRS and the independent contractor take into account the fixed
and variable costs of operating an automobile, such as fuel
costs and maintenance expenses. The decline in fuel prices
during 2014, however, was not reflected in the business
standard mileage rate for 2015. Some practitioners have
speculated this could indicate that the IRS does not expect the
low gas prices to last. Alternatively, if prices continue to
decline, the IRS could issue a mid-year adjustment of the rate
during 2015.
Some background
The standard mileage rates for business use, medical and
moving expenses, and charitable usage, may be used by an
employee or self-employed taxpayer to compute the allowable
deduction attributable to his or her business use of a car.
Taxpayers also have the option of calculating the actual cost
of operating a vehicle for business and deducting that amount,
but using the standard mileage rate is the simplest method of
computing automobile expenses because it simplifies the
amount of required recordkeeping. This is because business
standard mileage rate is designed to take into account costs
such as maintenance and repairs, gas and oil, depreciation,
insurance, and license and registration fees. For example, the
depreciation component of the business standard mileage rate
for 2015 will be 24 cents-per-mile, a two-cent increase from
the 22-cents-per-mile rate that was effective for 2014.
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.
The taxpayer using the standard mileage rate need only keep a
log of his or her business miles. To calculate the deduction,
the taxpayer will multiply the standard mileage rate by the
number of business miles traveled. Taxpayers using the
standard rate may also deduct any business-related parking
fees and tolls.
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
general, deductible transportation expenses are deemed
ordinary and necessary costs of:
Traveling from one workplace to another in the course of
your business;
Visiting clients or customers;
Attending a business meeting away from your regular
workplace; or
Traveling from your home to a temporary workplace when
a taxpayer has one or more regular places of work.
Fixed and variable rate (FAVR) allowance
Taxpayers may also use the fixed and variable rate allowance
to substantiate automobile expenses. Under the FAVR
method, an employer reimburses the employee’s expenses
with a mileage allowance using a flat rate or stated schedule
that combines periodic fixed and variable payments.
For purposes of computing the allowance under a FAVR plan,
the standard automobile cost may not exceed $28,200 for
automobiles; but the rate increases to $30,800 for trucks and
vans (up from $30,400 for 2014).
Please contact my office if you have any questions regarding how
your business or how you as an employee can qualify for use of
the standard mileage rate (and whether you might be better off
using the actual cost method for claiming a deduction for vehicle
use).
IR-2014-114, Notice 2014-79
J. Michael Grinnan, CPA.CITP
Certified Public Accountant
9900 Corporate Campus Dr, Ste 3000
Louisville, KY 40223
Office 502-657-6333
Fax 502-657-6334
Email [email protected]
Website www.JMGCPA.com
What Is The Business Standard Mileage Rate For 2015?
Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.comDISCLAIMER: 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.
5Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.comDISCLAIMER: 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.
Real Estate Closing
Donated by Harry Borders
DON'T GET BURNED! Jefferson County's Smoke Detector Ordinance
In Jefferson County, there is a smoke detector ordinance (#94.02) that requires homes, apartments and hotels to have EITHER a hard wired smoke detector OR a 10 year non-removable lithium battery smoke detector.
Here are the rules.
How many and where? If there are several bedrooms located right next to each other, you need one smoke detector in the hall between the bedrooms. If the bedrooms are separated by, for example, a kitchen, you will need more than one smoke detector. If there's a bedroom in the basement, you'll need one in the basement as well. The detectors need to be between 4 and 12 inches from the ceiling.
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 closing table to the buyer. It must be installed by the seller.
If the smoke detector is a 10 year non-removable 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
intention of rehabbing it and reselling it, the investor's seller must install a new smoke detector, and then a few months later, the investor must install a new smoke detector. Silly but true.
If you have rental properties, you MUST make sure the property has the right type of smoke detectors and the right number of smoke detectors. In addition, you must give the tenant a copy of the manufacturers instructions.
You can buy these at Home Depot or Lowes for about $25 each.
Do NOT ask the fire department to give you smoke detectors because the ones they give you DO NOT COMPLY WITH THE ORDINANCE!!!
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 BordersBorders & Borders Attorneys
920 Dupont Rd., Louisville, Ky 40207502-894-9200
No Member Spotlights were submittedPlease submit yourself or a fellow member
http://kreia.com/submit-member-spotlight
6Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.comDISCLAIMER: 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.
Welcome New KREIA Members!
Joseph Weingardt Theron Mathis
Joshua Gagel Dick Vreeland
Lisa Kljaich Kent Keenan
Greg Treadway Rodney Evans
Jeff Colgate
7Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.comDISCLAIMER: 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.
Photos from December Holiday Meeting
8Copyright 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.
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Government Affairs Updatefrom 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=Government-
Affairs-Update-Jan-2015
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.
Rick Wardlow, Joe Gribbins, Allee Harmon, Bill
Dollinger, Frank Miller Call 502-489-5515http://wardlowauc.com
2015 KREIA CommitteesPresident 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
=================================
FINANCE: Mike Grinnan CPA
PROGRAM: Frank Miller
MEMBERSHIP: Tamara [email protected]
PHP / MENTOR: Duffy Ford
EVENTS: Wally Kallbrier
WEBSITE: Mike Butler
ADVERTISERS: Demetrius Dowdell
GOVERNMENT AFFAIRS: Rue McFarland
MEMBER BENEFITS: Tamara West
10Copyright 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.
Copyright MMXIV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.comDISCLAIMER: 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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.com
PO Box 91225Louisville, KY 40291Return Service Requested
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
