VanEd - Real Estate School News

Instructors: IDW for Real Estate Instructors coming July 19th

Nebraska Real Estate Commission sponsored

Instructor Development Workshop for Real Estate Instructors

July 19, 2018 (Register by June 15, 2018)

To be held at Southeast Community College, Jack J. Huck Continuing Education Center

301 S. 68^th St Place, Lincoln  NE (Just South of 68^th and O)

Author, Motivational Humorist & Business Strategist Karel Murray DREI (Distinguished Real Estate Instructor) • CSP (Certified Speaking Professional: National Speakers Association) • Bachelor’s degree in human resources • Former regional executive of human resources at a large commercial insurance firm • Award-winning real estate salesperson • Top producing real estate broker/manager • 2013-14 Real Estate Educator’s Association National President • 350+ client audiences throughout the U.S., Canada, and abroad • Author of 4 books •

 

 

Charge:  There is no registration fee.  Once again, this workshop is being sponsored by the Nebraska Real Estate Commission

Schedule:            Registration beginning at 8:30 am

• Continental Breakfast
• Session 1 from 9:00am to 12:00pm
• Lunch on your own
• Session 2 from 1:15pm – 4:15pm

Credit:                  Six (6) hours Continuing Education available at no charge! Must attend entire event.

Register NOW for the 2018 Instructor Development Workshop July 19, 2018.

• Please open the attachment for details and registration form.
• Seating is a finite consideration. Don’t wait!

 

You can open and return the registration form (word doc) found on this page to register for this one-time event.

         Download Registration form

Colorado Broker License Expiration Date Transition Information

As a result of SB17-215 (Concerning the Continuation Under the Sunset Law of the Division of Real Estate), a real estate broker license will now be renewed on or before December 31 of every third (3rd) year after issuance. All licensees will eventually be on a calendar year cycle for their license renewal. In order to accommodate this transition to a calendar year cycle, the Division of Real Estate has established a transition period for license renewals and reinstatements. What does this mean for you?

For an Initial License

Effective January 1, 2018, any license issued will expire on December 31 of the year of issue. There is no mandatory continuing education requirement(s) during this initial license period. Thereafter, a licensee will renew a license on a calendar year cycle commencing on January 1 of year one (1) and expiring on December 31 of year three (3).

Transition Period For License Renewals

A license expiring on one’s anniversary date in the years of 2018, 2019, or 2020, will be renewed for a period of time equal to two (2) years plus the remaining days in the third (3rd) year to reach December 31. (The length of the transition period is dependent on the anniversary date and could be as long as three years or as short as two years and one day.) Licensees are required to complete the mandatory continuing education requirements during the transition licensing period. Thereafter, a licensee will renew a license on a calendar year cycle commencing on January 1 of year one (1) and expiring on December 31 of year three (3). There will be a proration of renewal fees based upon the time of expiration.

For Licensees / Students

VanEd is currently working to update all student accounts to reflect the appropriate license expiration date upon your next renewal.  You may also update this information inside your student account at any time if you see it is incorrect.

To log in to your account now visit VanEd.com.

Learn about the steps to get a real estate license in Colorado.

Finance Friday: Law change affects moving, mileage and travel expenses

WASHINGTON –  The Internal Revenue Service today provided information to taxpayers and employers about changes from the Tax Cuts and Jobs Act that affect:

• Move related vehicle expenses
• Un-reimbursed employee expenses
• Vehicle expensing

Changes to the deduction for move-related vehicle expenses

The Tax Cuts and Jobs Act suspends the deduction for moving expenses for tax years beginning after Dec. 31, 2017, and goes through Jan. 1, 2026. Thus, during the suspension no deduction is allowed for use of an automobile as part of a move using the mileage rate listed in Notice 2018-03.  This suspension does not apply to members of the Armed Forces of the United States on active duty who move pursuant to a military order related to a permanent change of station.

Changes to the deduction for un-reimbursed employee expenses

The Tax Cuts and Jobs Act also suspends all miscellaneous itemized deductions that are subject to the 2 percent of adjusted gross income floor. This change affects un-reimbursed employee expenses such as uniforms, union dues and the deduction for business-related meals, entertainment and travel.

Thus, the business standard mileage rate listed in Notice 2018-03, which was issued before the Tax Cuts and Jobs Act passed, cannot be used to claim an itemized deduction for un-reimbursed employee travel expenses in taxable years beginning after Dec. 31, 2017, and before Jan. 1, 2026. The IRS issued revised guidance today in Notice 2018-42.

Standard mileage rates for 2018

As mentioned in Notice 2018-03, the standard mileage rates for the use of a car, van, pickup or panel truck for 2018 remain:

• 54.5 cents for every mile of business travel driven, a 1 cent increase from 2017.
• 18 cents per mile driven for medical purposes, a 1 cent increase from 2017.
• 14 cents per mile driven in service of charitable organizations, which is set by statute and remains unchanged.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical purposes is based on the variable costs.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

Increased depreciation limits

The Tax Cuts and Jobs Act increases the depreciation limitations for passenger automobiles placed in service after Dec. 31, 2017, for purposes of computing the allowance under a fixed and variable rate plan. The maximum standard automobile cost may not exceed $50,000 for passenger automobiles, trucks and vans placed in service after Dec. 31, 2017. Previously, the maximum standard automobile cost was $27,300 for passenger automobiles and $31,000 for trucks and vans.

More information

Notice 2018-42 is posted on IRS.gov and contains information about the update to the standard mileage rates, including the details about the suspension of the deduction for operating a vehicle for moving purposes.

Finance Friday: The Consumer Financial Protection Bureau Finalizes Amendment to "Know Before You Owe" Mortgage Disclosure Rule

Update Will Provide More Clarity Regarding Closing Cost Increases 

WASHINGTON, D.C. — Last week the Bureau of Consumer Financial Protection (Bureau) finalized an amendment to its “Know Before You Owe” mortgage disclosure rule that addresses when mortgage lenders with a valid justification may pass on increased closing costs to consumers and disclose them on a Closing Disclosure. The update is intended to provide greater clarity and certainty to the mortgage industry. 

The Know Before You Owe mortgage disclosure rule took effect Oct. 3, 2015. The Bureau’s rule created new Loan Estimate and Closing Disclosure forms that consumers receive when applying for and closing on a mortgage loan. The Bureau heard feedback from the industry that they needed clarification on when creditors may pass on increased costs to consumers and disclose them on a Closing Disclosure. Specifically, a timing restriction on when the creditor may use a Closing Disclosure to communicate closing cost increases to the consumer could prevent a creditor from charging the consumer for those cost increases despite a valid reason for doing so, such as a changed circumstance or borrower request. In response, in July 2017 the Bureau proposed an amendment removing that particular timing restriction. Today, after considering public comment on the proposal, the Bureau is finalizing that amendment.  

The final rule will take effect 30 days after publication in the Federal Register.  

The final rule is available at: https://files.consumerfinance.gov/f/documents/cfpb_tila-respa_final-rule_amendments-to-federal-mortgage-disclosure-requirements.pdf

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Finance Friday: IRS Issues Revised Estimated Tax Form

Newly-revised estimated tax form and publication can help people pay the right amount

IR-2018-93

WASHINGTON – With tax reform bringing major changes for the year ahead, the Internal Revenue Service today reminded the many self-employed individuals, retirees, investors and others who need to pay their taxes quarterly that the first estimated tax payment for 2018 is due on Tuesday, April 17, 2018.

The Tax Cuts and Jobs Act, enacted in December 2017, changed the way tax is calculated for most taxpayers, including those with substantial income not subject to withholding. Among other things, the new law changed the tax rates and brackets, revised business expense deductions, increased the standard deduction, removed personal exemptions, increased the child tax credit and limited or discontinued certain deductions. As a result, many taxpayers may need to raise or lower the amount of tax they pay each quarter through the estimated tax system.

The newlyrevised estimated tax package, Form 1040-ES, now available on IRS.gov, is designed to help taxpayers figure these payments correctly. Among other things, the package includes a quick rundown of key tax changes, income tax rate schedules for 2018 and a useful worksheet for figuring the right amount to pay. The IRS also mailed 1 million Form 1040-ES vouchers with instructions in late March to taxpayers who used the Form 1040-ES last year.

A companion publication, Publication 505, Tax Withholding and Estimated Tax, has additional details, including worksheets and examples, that can help taxpayers determine whether they should pay estimated tax, such as those who have dividend or capital gain income, owe alternative minimum tax or have other special situations.

Who needs to pay quarterly? Most often, self-employed people, including some persons involved in the sharing economy, need to pay quarterly installments of estimated tax. Similarly, investors, retirees and others -- a substantial portion of whose income is not subject to withholding -- often need to make these payments as well. Besides self-employment income, other income generally not subject to withholding includes interest, dividends, capital gains, alimony and rental income.

Because the U.S. tax system operates on a pay-as-you-go basis, taxpayers are required, by law, to pay most of their tax liability during the year. For 2018, this means that an estimated tax penalty will normally apply to anyone who pays too little tax, usually less than 90 percent, during the year through withholding, estimated tax payments or a combination of the two. Exceptions to the penalty and special rules apply to some groups of taxpayers, such as farmers, fishermen, casualty and disaster victims, those who recently became disabled, recent retirees, and those who receive income unevenly during the year. In addition, there is an exception to the penalty for those who base their payments of estimated tax on last year’s tax.  Generally, taxpayers will not have an estimated tax penalty if they make payments equal to the lesser of 90 percent of the tax to be shown on their 2018 return or 100 percent of the tax shown on their 2017 return (110 percent if their income was more than $150,000). See Form 2210 and its instructions for more information.

Employees have a choice Many employees who also receive income from other sources may be able to forgo making estimated tax payments and instead increase the amount of income tax withheld from their pay. They can do this by claiming fewer withholding allowances on their Form W-4 by completing the Deductions, Adjustments, and Additional Income Worksheet in the instructions to Form W-4. If that’s not enough, on the Form W-4, they can ask their employer to withhold an additional flat-dollar amount each pay period. Because of the far-reaching tax changes taking effect this year, the IRS urges all employees, including those with other sources of income, to perform a paycheck checkup now.

Doing so now will help avoid an unexpected year-end tax bill and possibly a penalty. The easiest way to do that is to use the newly-revised Withholding Calculator, available on IRS.gov.  However, employees who expect to receive long term capital gains or qualified dividends, or employees who owe self-employment tax, alternative minimum tax, or tax on unearned income of minors should use the instructions in Publication 505 to check whether they should change their withholding or pay estimated tax. To use the Withholding Calculator most effectively, be sure to have on hand a copy of last year’s tax return, along with the most recent paystub. After filling out the Withholding Calculator, the tool will recommend the number of allowances the employee should claim on their Form W-4.

Though primarily designed for employees who receive wages, the Withholding Calculator can also be helpful to some recipients of pension and annuity income. If the Withholding Calculator suggests a change, the employee should fill out a new Form W-4 and give it to their employer. Similarly, recipients of pensions and annuities can make a change by filling out Form W-4P  and giving it to their payer.

How and when to pay For tax-year 2018, estimated tax payment due dates are April 17, June 15, Sept. 17 and Jan. 15, 2019. Taxpayers due a refund on their 2017 federal income tax return may be able to reduce or even skip one or more of these payments by choosing to apply their 2017 refund to their 2018 estimated tax. See Form 1040 and its instructions for more information. Taxpayers in presidentially-declared disaster areas may have more time to make these payments without penalty.

Visit the Tax Relief in Disaster Situations page for details. The fastest and easiest way to make estimated tax payments is to do so electronically using IRS Direct Pay or the Treasury Department’s Electronic Federal Tax Payment System (EFTPS). For information on other payment options, visit IRS.gov/payments. For those who choose to pay by check, the check must be payable to the United States Treasury. More information about tax withholding and estimated tax can be found on the agency’s Pay As You Go web page, as well as in Publication 505, Tax Withholding and Estimated Tax.

Finance Friday: IRS Posts Inflation Adjustments published for 2018 Tax Year

IR-2018-94, April 13, 2018

WASHINGTON — The Internal Revenue Service has updated the tax year 2018 annual inflation adjustments to reflect changes from the Tax Cuts and Jobs Act (TCJA). The tax year 2018 adjustments are generally used on tax returns filed in 2019.

The tax items affected by TCJA for tax year 2018 of greatest interest to most taxpayers include the following dollar amounts:

• The standard deduction for married filing jointly rises to $24,000. For single taxpayers and married individuals filing separately, the standard deduction rises to $12,000; for heads of households, $18,000.
• The TCJA reduced the personal exemption. The personal exemption for tax year 2018 is $0.
• TCJA reduced tax rates for many taxpayers. The new tax rates are: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and a top rate of 37 percent. For tax year 2018, the highest tax rate will apply to married individuals filing jointly and surviving spouses with taxable incomes over $600,000, to single taxpayers and heads of households with incomes over $500,000, and to married taxpayers filing separately with incomes over $300,000.
• The TCJA eliminates the limitation for itemized deductions.
• The Alternative Minimum Tax exemption amount for tax year 2018 is greatly increased under TCJA. For tax year 2018, the exemption amount for single taxpayers is $70,300 and begins to phase out at $500,000, and the exemption amount for married couples filing jointly is $109,400 and begins to phase out at $1 million.
• For estates of any decedent passing away in calendar year 2018, the basic exclusion amount is $11,180,000.

Certain items had minor adjustments. TCJA requires a different method for adjusting for inflation.

• For 2018, the foreign earned income exclusion will be $103,900.
• The maximum earned income credit amount will be $6,431 for taxpayers with 3 or more qualifying children, for 2018. Other earned income credit amounts are detailed in Revenue Procedure 2018-18.
• For tax year 2018, participants who have self-only coverage in a Medical Savings Account, the plan must have an annual deductible that is not less than $2,300, but not more than $3,450. For self-only coverage, the maximum out-of-pocket expense amount is $4,550. For tax year 2018, participants with family coverage, the floor for the annual deductible is $4,550; however, the deductible cannot be more than $6,850. For family coverage, the out-of-pocket expense limit is $8,400 for tax year 2018.  (Only the “$4,550” amount differs from what was in the IR-2017-178.)

Items unaffected by the TCJA The dollar amounts for the following items described in the inflation adjustment news release issued in Oct. 2017 remain unchanged under the new method for adjusting for inflation required by the TCJA:

• For tax year 2018, the annual exclusion for gifts is $15,000.
• For tax year 2018, the monthly limitation for the qualified transportation fringe benefit is $260, as is the monthly limitation for qualified parking.
• For tax year 2018, the adjusted gross income amount used by joint filers to determine the reduction in the Lifetime Learning Credit is $114,000.
• For calendar year 2018, the dollar amount used to determine the penalty for not maintaining minimum essential health coverage is $695.

This news release replaces IR-2017-178, which provided the inflation adjusted items under the law prior to enactment of the TCJA.

Revenue Procedure 2018-18 provides greater detail on these and other inflation adjusted items affected by the recently enacted tax law. See also Revenue Procedure 2018-22.

IRS provides additional day to file and pay for taxpayers through Wednesday, April 18; IRS processing systems back online

April 17, 2018

WASHINGTON — The Internal Revenue Service announced today that it is providing taxpayers an additional day to file and pay their taxes following system issues that surfaced early on the April 17 tax deadline. Individuals and businesses with a filing or payment due date of April 17 will now have until midnight on Wednesday, April 18. Taxpayers do not need to do anything to receive this extra time.

The IRS encountered system issues Tuesday morning. Throughout the system outage, taxpayers were still able to file their tax returns electronically through their software providers and Free File. Taxpayers using paper to file and pay their taxes at the deadline were not affected by the system issue.

“This is the busiest tax day of the year, and the IRS apologizes for the inconvenience this system issue caused for taxpayers,” said Acting IRS Commissioner David Kautter. “The IRS appreciates everyone’s patience during this period. The extra time will help taxpayers affected by this situation.”

The IRS advised taxpayers to continue to file their taxes as normal Tuesday evening – whether electronically or on paper. Automatic six-month extensions are available to taxpayers who need additional time to file can visit https://www.irs.gov/forms-pubs/extension-of-time-to-file-your-tax-return.

Instructors: 2018 NREC IDW ~ Save the Date!

This message serves as the SAVE THE DATE for the 2018 Instructor Development Workshop.. You will not want to miss this year’s Workshop featuring Karel Murray.  You may have had the pleasure to see Karel in action before, but this happens to be her last year working on the road.  Her visit to Lincoln will be your last time to learn from the best in person!

July 19, 2018

Southeast Community College’s Continuing Education Building

South at 68^th and “O” Street

Lincoln, NE

“Karel Murray’s extensive national speaking career highlights her ability to deliver content with a memorable energy and impactful insight about personal accountability through her “nothing but the truth” delivery style.. When you work with Karel, you will improve your presentation skill set and discover that you have uncovered how to be innovative and more open minded when it comes to presenting in your own authentic way.”

This year’s IDW offers 6 hours of continuing education credit for Nebraska instructors at no charge.

In order to ensure we have enough room for everyone interested,  please send a quick, “I’m interested” E-mail reply (click here).

We will ask for a complete registration at a later date.

I look forward to hearing from you.

Alane Roubal

Deputy Director for Education

Nebraska Real Estate Commission

Finance Friday: Changes from Fannie Mae allow Lender Gifts

Fannie Mae announced April 3 that it will allow lenders to contribute to borrowers' closing costs if the funds are a gift and not part of the down payment. There is no limit on the amount a lender can give to a borrower, provided it does not exceed the total closing cost amount.  The full notice from the Fannie Mae Selling Guide Announcement SEL-2018-03 is below.

Lender Contributions
With this update we are clarifying that lender-sourced contributions to fund closing costs and prepaid fees that are normally the responsibility of the borrower are permitted provided the following:
A lender-sourced contribution may not be

• used to fund any portion of the down payment;
• subject to repayment requirements, or require financial obligation apart from the subject mortgage; or
• passed to the lender from a third party.

The amount of the lender contribution should not exceed the amount of borrower-paid closing costs and prepaid fees. Otherwise, the amount of the contribution is not limited except when the lender is an interested party to a purchase transaction as defined in B3-4.1-02, Interested Party Contributions, and in that case, the interested party contribution (IPC) policy applies. Any excess lender credit required to be returned to the borrower in accordance with applicable regulatory requirements is considered an overpayment of fees and charges, and may be applied as a principal curtailment or returned in cash to the borrower.

Effective Date
Lenders can take advantage of this change immediately.

TREC Hosting 2nd Annual Residential Realty Summit in Austin

Join the Texas Real Estate Commission for the Agency’s 2nd annual Texas Residential Realty Summit. This annual conference focuses on current issues affecting the successful closing of single family residential transactions transaction from an interdisciplinary perspective.

The focus of this year’s event is the impact of natural disasters on the residential real estate market and closing transactions. Texas comprises close to 267,000 square miles. It is no surprise then that Texas leads all other states in the number and types of natural disasters occurring within its borders. Texas suffers from tornadoes, floods, wildfires, and hurricanes. Nearly every calendar year, at least one major disaster is declared in Texas.  Every disaster affects Texas in its own unique way and the this year’s summit is to explore whether any predictable patterns exist in the way disasters impact the state’s residential real estate market and look for potential ways to mitigate that impact in the future. Panels will consist of members of the real estate, real estate appraisal, inspector, insurance, mortgage lending, and title industries.

For more information about the event, and to register for the conference, please visit the registration page.