November DNA Imagery Exhibit

A big thanks to everyone that came out to my show on November 1st - I wanted to let you all know that there will be another show at DNA Imagery on November 17th. Three of my pieces will be featured at the event, and one will be up for auction. Hope to see you all there!

Six Tax Facts Home Sellers Should Know

The California Association of Realtors recently released six important facts that home sellers need to be aware of when selling their home, check them out!

Emily McBride Invites You to Her Art Exhibit November 1st

DNA Imagery Interview- Emily McBride

This coming 1st Thursday Afterhours DNA Gallery will be featuring local Santa Barbara artist Emily McBride.

Emily McBride will be showcasing a body of works a few years in the making, Santa Barbarascapes. At this show you will see many familiar, and potentially unfamiliar, scenes from an unimaginable and captivating perspective. She has studied, and continues to study, under the guidance of Buck Paulson who is famous for his 16-year run on PBS with his show, “Painting with Buck Paulson.”

Last weekend we were lucky enough to sit down with Emily for an interview.

DNA: When did you first begin your career in the arts?

Emily: I was visiting a client’s house about nine years ago, and noticed she had been painting some amazing paintings. I mentioned to my client that I was interested in pursuing art and she invited me to study with her painting group, which was lead by Buck Paulson.

DNA: Well that answers my second question. So tell me, how is it to study under Buck Paulson?

Emily: He has got great energy and always stays positive and gives constructive feedback. We get together almost weekly and paint in a group in Dave Kellams’ garage, our “studio space.” Dave is another one of the artists in our group, and he owns Cody’s Café and Mesa Café.

DNA: What do you enjoy the most about being an artist?

Emily: It’s fun to create something tangible. Creating art gives me a feeling of accomplishment and a medium to reflect upon. I also enjoy going back to a piece after I have learned new techniques and work to improve it. It’s nice to see the progression.

DNA: What do you like the least about being an artist?

Emily: Wow, these are good questions. I would say getting started. If I take too much time off from painting, I feel like a beginner, and really I always feel like a beginner. So, I guess the hardest part, or what I like the least, is starting again after taking time off.

DNA: Tell me about your creative process.

Emily: I usually start off with photos I’ve taken during times of inspiration or when I see something really great. Plein air painting doesn’t work for me. So, I paint from the images I’ve taken and I bring them into the studio with me. I always start with a layer of acrylic paint, and then do oil on top of that. Also, before the acrylic, I prime the canvas with a light pink color. Sometimes I change the color based on the painting, but it’s usually pink or something warm. It helps to give the painting an illuminated look.

DNA: That’s very interesting, how did you come up with that?

Emily: It’s another Buckism.

DNA: This is your first show in nearly three years. What allows you to have time for one now?

Emily: Well, I believe my paintings have become more detailed and involved, and a lot of them are really large, more so now than in the past. They are taking me longer to create; especially since I really only have time to paint once a week. I also wanted a new body of work for this next show, Santa Barbarascapes.

DNA: Your show is Thursday November 1^st, 7-10 PM, at DNA Gallery. If there was one thing you could have your attendees take away from viewing your works, what would that be?

Emily: I would like them to leave inspired. To see the world differently, with more depth, texture, color, and with a little more beauty. I would like them ultimately to have a greater appreciation for their surroundings. I also want them to have a good time!

DNA: Thanks for your time for this interview Emily. I have no doubt that you will capture your audience.

Top 10 Things You Need to Know About the 3.8% Tax

We've been hearing about the confusion, rumors, and general misinformation flying around regarding the 3.8% tax. Here are some tips for clarity!

1) When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will NOT be subject to this tax.

2) The 3.8% tax will NEVER be collected a a transfer tax on real estate of any type, so you'll NEVER pay this tax at the time that you purchase a home or other investment property.

3) You'll NEVER pay this tax as a settlement when you sell your home or investment property.  Any capital gain you realize as settlement is just one component of that year's gross income.

4) If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax return)/ $500,000 (married filing joint tax return) exclusion on the sale of that home.  If your capital gain is greater that these amounts, then you will include any gain above these amounts as income in your Form 1040 tax return.  Even then, if your total income (including this taxable portion of gain on your residence) is less than the $200,000/$250,000 amounts, you will NOT pay this tax.  If your total income is more than these amounts, a formula will protect some portion of your investment.

5) The tax applies to other types of investment income, not just real estate.  If your income is more than the $200,000/$250,000 amount, then the tax formula will be applied to capital gains, interest income, dividend income, and net rents (i.e., rents after expenses).

6) The tax goes into effect in 2013.  If you have investment income in 213, you won't pay the 3.8% tax until you file your 2013 form 1040 tax return in 2014.  The 3.8% tax for any later year will be paid in the following calendar year when the tax returns are filed.

7) In any particular year, if you have NO income from capital gains, rents, interest, or dividends, you'll NEVER pay this tax, even if you have millions of dollars of other types of incomes.

8) The formula that determines the amount of 3.8% tax due will ALWAYS protect $200,000 ($250,000 on a joint return) of your income from any burden of the 3.8% tax.  For example, if you are single and have a total of $201,000 income, the 3.8% tax would NEVER be imposed on more than $1,000.

9) It's true that investment income from rents on an investment property could be subject to the 3.8% tax. BUT: The only rental income that would be included in your gross income and therefore possible subject to the tax is net rental income: gross rents minus expenses like depreciation, interest, property tax, maintenance and utilities.

10) The tax was enacted along with the health care legislation in 2010. It was added to the package just hours before the final vote and without review.  NAR strongly opposed the tax at the time, and remains hopeful that it will not go into effect.  The tax will no doubt be debated during the upcoming tax reform debates in 2013. 

*As always, refer to your CPA and financial planner for their counsel.

Weekly Snapshot Statistics (Santa Barbara Real Estate Market)

Week of 10/15/12 - 10/21/12

48 New Listings

24 Price Changes

40 Sales Pending:

24 (under $1M)

11 ($1-2M)

1 ($2-4M)

4 ($4-8M)

44 Closed:

31 (under $1M)

6 ($1-2M)

5 ($2-4M)

2 ($4-8M)

9 Expired

7 Canceled

4 Withdrawn

17 Back on Market

Village Properties Voted Best Real Estate Firm in Santa Barbara!

A big thanks to everyone that voted Village Properties the Top Real Estate Firm in the Best of Santa Barbara Reader's Poll.  The Santa Barbara Independent wrote a lovely piece about Village Properties, stating "Ed Edick and Renee Grubb run a company with about 170 agents selling properties that begin in the hundred thousands but top out in the double digit millions.  It would be an empire if their reputation for fair dealing and personal service wasn't actually what most people remember about being guided through the most personal and likely expensive financial decision you make.  Because it's about where home will ultimately be, it has to be with people whom the rest of the community is willing to endorse." The link to the online copy of the piece can be found here. Thanks again for voting!