Jessica [00:10:09] Two weeks. There you go! That’s all we got. So, Well, thank you for turning into The Real Estate of Texas presented by Solid Realty Group of Boerne. You can always give us a call at 210-827-3733 and let us help you through the stress of buying or selling a home. And we can connect you to trusted folks like Suzann for money matters or whatever it may be, Roofing, insurance, give us a call. All right. So, Suzann, we were talking about different ways, different benefits on your taxes, two different investment properties, different things. And so we had talked about rentals briefly. And I think that’s so fascinating that it’s, the way that it correlates. If you use more than 14 days, you have a different type of depreciation on your investment, on your rentals, than if you actually rent it out the entire time. Now, is it a better, Is it a better transaction for people that have rentals to do things like VRBOs [Vacation Rental By Owner] or to do just straight rental?
Suzann Woodward, CPA [00:11:12] That depends on your goals. What is it you’re trying to achieve?
Jessica [00:11:16] Hmm .. kay.
Suzann Woodward, CPA [00:11:17] And the Airbnb can definitely be very beneficial, but you have to keep very good records. So you know exactly how much of the time is being spent rented to Airbnb and if you’re doing anything personally in the home as well.
Cali [00:11:35] So does it, does it, is there a minimum amount of time that it has to be actually rented, or is it just the amount of time that it is available to be rented?
Suzann Woodward, CPA [00:11:43] Both. It has to be available to be rented. And the 14 days applies to Airbnb. If you rent it for 14 days or less, there’s no income to report.
Cali [00:11:58] Okay. So the 14 days applies on the opposite end of the spectrum.
Suzann Woodward, CPA [00:12:01] Right.
Cali [00:12:02] It has to be rented at least 14 days, we’re not still talking about the 14 days applying to the homeowner using the property for 14 days.
Suzann Woodward, CPA [00:12:10] Right.
Cali [00:12:11] Gotcha.
Jessica [00:12:12] Wait a sec. So you can have a rental property and you yourself who owns it can live or rent it or be in there for 14 days, but you only have to rent it for 14 days total for that whole year for you to and then you can just deduct the rest as a loss.
Suzann Woodward, CPA [00:12:31] That’s Airbnb and you only get 14 days worth of expenses to go against it.
Jessica [00:12:38] Now, is that for one rental or is that overall like if there’s a three day rental here and a three day rental here, does it add up to 14 days and you can use those expenses?
Suzann Woodward, CPA [00:12:46] Yes.
Jessica [00:12:47] Okay. Okay, okay. All right. So that’s a little bit easier because 14 days, I mean, there’s not a lot of people that necessarily go on vacation for 14 days, I mean, I’d love to do that.
Suzann Woodward, CPA [00:12:56] Me, too.
Cali [00:12:57] You know, I think it’s just a combination of days that it was rented to Airbnb patrons.
Jessica [00:13:03] Right. Right.
Cali [00:13:04] But she’s also saying that you can only deduct the expenses based on the ratio of days that you’ve rented the property out. Correct? So if you had to say from a tax standpoint, if you owned a rental property, you owned a property primarily for investment and rental income. How long should you hold the property before you turned it and sold it and got a different rental property? Is there a is there a time frame for that?
Suzann Woodward, CPA [00:13:29] I would say two years.
Cali [00:13:31] Every two years you should sell your rental property and get another one?
Suzann Woodward, CPA [00:13:34] Not necessarily it depends on the real estate market and you would be better to advise them about that than me. But you have to have the numbers work out.
Cali [00:13:47] I just wondered if there was sort of a trade off between the home is getting to an age where I’m having a lot more expenses with, you know, things just wearing out because the home is that age or the items in the home are that age. Is there a trade off where tax-wise it makes sense to kind of cut-and-go?
Suzann Woodward, CPA [00:14:05] Yes, especially if you have a nice gain in the property.
Cali [00:14:10] In the price of the property, the value of the property. Right? Okay.
Jessica [00:14:13] And we, like you mentioned, you have to wait that two years or you pay your capital gains taxes.
Suzann Woodward, CPA [00:14:20] Well, no, that’s you only have to hold it one year for capital gains.
Cali [00:14:25] Well, you’re, you’re going back to the capital gains being for your individual ownership, like the one that you own. You have to own your residence two of the last five years in order to not pay capital gains. But we’re talking about rental properties.
Jessica [00:14:39] Right. And that’s only a one year.
Cali [00:14:41] Well, you’re still going to pay capital gains, but you can reduce it by your depreciation.
Suzann Woodward, CPA [00:14:46] Right.
Cali [00:14:46] But you’re still going to have capital gains because that income-producing property, I believe. Right?
Suzann Woodward, CPA [00:14:50] Right.
Cali [00:14:51] The um, oohmph. [laughs]. It was there, and no way, I know, I know.
Suzann Woodward, CPA [00:14:59] No, I think really the the decision to sell or replace the property really has to be based on the real estate market.
Cali [00:15:10] Yeah, so that’s what I was going to…
Suzann Woodward, CPA [00:15:12] The real estate market’s going to guide that and,
Cali [00:15:15] Because in the last two years the the property values have gone up so much.
Suzann Woodward, CPA [00:15:19] Right.
Cali [00:15:19] That, I mean, the rental prices have got to go up a lot, too, just to account for that. I mean, over the next few years, it’ll be fascinating to see how how those jump.
Suzann Woodward, CPA [00:15:28] Well, and not only that, because the property taxes have increased so significantly. Rental income, it’s harder to get your rent. You have to increase your rent.
Cali [00:15:40] Well, yeah, you’re gonna have to because the property values have gone up, which makes the real estate property taxes go up.
Suzann Woodward, CPA [00:15:45] Right.
Cali [00:15:46] So if you, if you cash out of your rental properties now because of the value of the properties have gone up so much, then the next person who buys it, no matter why it enters the rental pool, it’s going to have to be a higher rental rate.
Suzann Woodward, CPA [00:15:58] Higher rent.
Cali [00:15:58] Right. So even the homeowner that bought it and then they they realize they have to move for a job or whatnot, but they don’t necessarily ready to sell it. Well, if they bought it at X amount of dollars. And those numbers have to at least cover the mortgage. So the rental properties, even in that small pool, is going to have to go up.
Suzann Woodward, CPA [00:16:13] Right.
Cali [00:16:14] It’s going to be interesting.
Jessica [00:16:16] It is going to be interesting. As a tax accountant, is there any recommendations that you have for people in the next couple of years knowing that’s going to happen with their their properties, like what they should be prepared for?
Suzann Woodward, CPA [00:16:28] Well, for one thing, the problem with selling is what are you going to replace it with? Everything is higher.
Jessica [00:16:35] Exactly. Yes.
Suzann Woodward, CPA [00:16:37] So unless you’re leaving town or downsizing, you’re going to be paying more than what you’re selling for most times.
Jessica [00:16:46] Yeah. Is it better for people to take the gains that they have on their houses?, Sorry. Let me correct myself back to personal ownership.
Suzann Woodward, CPA [00:16:55] Okay.
Jessica [00:16:56] When you sell your home and you, you’re past the two years and you have quite a substantial amount of money that’s made off of that, is it more beneficial to invest it back into the next property that you purchased so you decrease what you owe wanted? Or is it better to reinvest it into something else? Is it, you know, as an accountant? Did how do you guide people in a direction of, hey, you’ve made a substantial amount of money. What do you do next?
Suzann Woodward, CPA [00:17:26] Well, the beauty of it being a residence and you having lived in it two out of five years, if you’re married, the exclusion of the gain is up to $500,000. So unless your gain is more than that, you never pay tax on it.
Jessica [00:17:45] Oh, see, just free float with it.
Cali [00:17:46] Yeah, that’s why you sell every two years.
Suzann Woodward, CPA [00:17:50] That’s it.
Cali [00:17:52] [inaudible]. That’s always the question, but so, but you can write off the interest on your mortgage, on your taxes.
Suzann Woodward, CPA [00:17:59] Yeah. Yes.
Cali [00:17:59] So that’s another thing…
Suzann Woodward, CPA [00:18:00] And the property tax.
Cali [00:18:01] That people, you know, right now in our current real estate market, the interest rates have gone up. So people you know, our interest rates went up. Yeah, but you can write that off on your taxes. So, you know, there’s some benefits to, to all of it.
Suzann Woodward, CPA [00:18:14] There is.
Jessica [00:18:15] Yeah.
Suzann Woodward, CPA [00:18:15] And then if you end up with the $500,000 gain and pay zero tax on it, that’s the best deduction there is.
Cali [00:18:24] No kidding. No kidding.
Jessica [00:18:26] So if people want to get in touch with you, Suzann, and how do they find you here in Boerne? I know you’re out and about a lot, but how do they get to you?
Suzann Woodward, CPA [00:18:33] They can reach me at 830-249-4159. We’re at 512 East Blanco Road, Suite 200. We’re right across the street from the post office and my website is: www.CPABoerne.com.
Jessica [00:18:57] That’s an easy one: CPABoerne.com.
Cali [00:19:00] No kidding. You must have had that one for a little while.
Suzann Woodward, CPA [00:19:01] Yes.
Cali [00:19:03] Got in early.
Suzann Woodward, CPA [00:19:04] Well, it was my daughter’s suggestion.
Cali [00:19:06] And it was a good one!
Jessica [00:19:07] It’s a good one. Good for Mindy. Way to go. Yes.
Suzann Woodward, CPA [00:19:10] Yes.
Jessica [00:19:11] All right. So our favorite question to everybody before they leave is, what is your favorite thing about Boerne?
Suzann Woodward, CPA [00:19:17] I love Boerne’s people.
Jessica [00:19:20] ‘Oh!’
Suzann Woodward, CPA [00:19:20] There are so many good people with big giving hearts. It’s just an amazing place to live that really want to help people. And do really good things for our community. And I love being a part of that.
Jessica [00:19:37] Yes, yes. We all love being part of that. That’s a very special place to be.
Cali [00:19:42] Well, thank you so much for joining us. It’s been great having you here. Well, good to see you in general.
Jessica [00:19:47] Yes. And unfortunately, that’s all the time that we have today. And we’re so thankful that you came on our show. And if you’re listening to us and you’re looking to buy or sell a house, we hope that you’ll think of Solid Realty Group as Boerne’s experts in the real estate market. And we are here to answer any of your questions about real estate. So give us a call at 210-827-3733 or visit our website at SolidRealtyGroup.com. Thanks, y’all.
Cali [00:20:14] Thanks y’all!
Jessica [00:20:14] Have a good day. Bye.
COMMERCIAL [00:20:20] The real estate of Texas is always changing. Get a solid start to buying or selling a house with Solid Realty Group. Hey, y’all. I’m Jessica Johnson, co-owner of Solid Realty Group, Boerne’s 5-Star REALTORS, where we have saved our clients over $3 million. Given today’s rising home values and interest rates, every penny counts. Call Solid Realty Group to buy or sell, and we can help you save more and stress less. Call us at 210-827-3733. SolidRealtyGroup.com.
Cali [00:20:51] Welcome back, everybody. Thank you so much for joining us on The Real Estate of Texas. Brought to you by Solid Realty Group. Today, I am thrilled to have my friend Olivia Burdick, who is the CEO of the Rainbow Senior Center at Kronkosky Place, with us joining us here in the studio. This place is near and dear to my heart, and they do a lot of fabulous work here in the Boerne community for our senior citizens. Thank you so much for joining us, Olivia.
Olivia Burdick [00:21:16] Thanks for having me.
Cali [00:21:17] So I understand that we’re going through a name change over there. So we’re soon to be known as The Center rather than the Rainbow Senior Center at Kronkosky Place. But all of the same great things, same great people.
Olivia Burdick [00:21:28] Absolutely. We are very excited to kick this off in a very short time and we’re going to be telling a new version of the same story and the same great programs and services that we’ve been offering since 1983.
Cali [00:21:42] Very good. Well, why don’t you give us a little bit of a recap on what you do offer over there at the senior center for those of us that do not know.
Olivia Burdick [00:21:49] I would love to. So the interesting part about what we do is that we are all aging. And I don’t know if that’s the good news for everybody, but I think it’s a very positive thing because I think there’s a lot to come with age. No matter what age you are. So our program, we have a very wide range of programs and services that we offer. Kronkosky Place, which I’m sure many have driven by our beautiful building that we own, but it is the hub for activities for older adults in Kendall County. We offer a wide variety of services just within that program service area as far as dining, learning and leisure opportunities, meetups and gatherings, fitness and wellness classes, different support services, different support groups for caregivers, Alzheimer’s and dementia, and then a plethora of volunteer opportunities. In addition to the activity center, we run Meals on Wheels for all of Kendall County, so we are on track to serve over 60,000 meals this year to homebound seniors.
Jessica [00:22:59] That is incredible. Wow. Way to go.
Olivia Burdick [00:23:03] Thank you.
Cali [00:23:04] Tell us a little bit about the staff over there in the kitchen, because the amount of meals that’s turned out by the very tiny staff is unbelievable.
Olivia Burdick [00:23:14] Absolutely. We have been running with a team of three incredible, passionate and driven individuals, and we’re proud to call them team members. In addition to that, though, we heavily rely on volunteers in so many different aspects. So we have a team of about 100 volunteers that deliver meals Monday through Friday to all parts of the county. And we also have kitchen volunteers that help us with counting and sorting and preparing those meals to go out every day.
Cali [00:23:45] Gotcha. And so the 61,000 number was just the delivered meals, but you also do in-house meals. So the number of meals coming out of that kitchen is I don’t I don’t even know the number. But it’s big. It’s a big number.
Olivia Burdick [00:23:56] Yes. So with our with our congregate dining program, we’re doing about 15,000 meals a year.
Cali [00:24:02] Yeah. Amazing. Three people and some, and a bunch of volunteers.
Olivia Burdick [00:24:05] Three people plus.
Cali [00:24:06] Yes. So what else goes on over there? I kind of cut you off, so I apologize for that.
Olivia Burdick [00:24:11] That’s okay! So in addition to those services, we are running a transportation program in and around the Boerne area for doctor’s appointments, grocery trips, errands to the bank and to and from Kronkosky place. So we do about 5000 rides a year and we just got our new bus which we are very happy and excited about and it is wheelchair accessible, which we have never had before. So thank you to the many donors and the county for their contributions to the bus, which was 100% covered by sponsorships and donations.
Cali [00:24:50] That’s amazing. And that’s it’s such a needed service. Just rides places. People don’t even realize how many people just are unable to take themselves to do simple things. So I’m hopeful that that program’s going to just grow and grow.
Jessica [00:25:01] How many people does that bus fit?
Olivia Burdick [00:25:03] So the new bus fits 14.
Jessica [00:25:05] That’s wonderful. Fantastic. Oh, good. And I know that in order to do this, you need a lot of donations and whatnot. But you guys do have a fantastic gala that’s coming up. Is that right?
Olivia Burdick [00:25:17] That is correct. So we have our gala coming up on November 19th. It will be held again at Mark Motors. And it’s a Havana Nights theme. So we will be starting to look for sponsorships and table sponsors for that really fun event. If you’ve never been. You’re in for a treat.
Cali [00:25:39] Well, I do have to say I am a little partial to The Center, but it is the best gala in Boerne. So much fun. It’s always just been so much fun over there.
Olivia Burdick [00:25:46] Thank you.
Cali [00:25:47] Yes, the but another thing. So if you, if you are interested in helping with The Center, then The Center always has sort of an ongoing wish list going on. So you can just call up there and they’ll sort of have a wish list of items that they’re in need of or donate or volunteer opportunities that they have ongoing right then. So if you’re just looking for a way to plug in, that might be the best. Well, a way to go and do that. So would you like to tell us a little bit more about that?
Olivia Burdick [00:26:12] Yes, we really have tried to be more proactive about putting the information out there about the opportunities that are available. So putting together a wish list of tangible items, whether that’s fans and heaters that we give out to our homebound seniors during those different times of the year, or a new freezer that we may need for capacity for more meals. Those items as well as the volunteer opportunities, because when we work with over 250 volunteers a year to accomplish all of the things that we do to serve this community and our older adults.
Cali [00:26:49] Excellent.
Jessica [00:26:49] That is excellent.
Cali [00:26:50] Or you can also just write a check.
Jessica [00:26:51] Yes.
Cali [00:26:51] They’re happy to take that, too.
Jessica [00:26:53] Yes. Or you can serve as a board member. Cali, I think you’re a board member to the Kronkosky Place, right?
Cali [00:26:58] I am a board member or volunteer to deliver meals. Oh, you know what? One of the cool things about the Meals on Wheels is that they take meals, which yes, you need that. And they talk to the people when they go and deliver them, which is so nice. Just the interaction. But they also do pet food, right? And we started a new program to get pet visits for the vets and different things like that. And sometimes they deliver flowers. So many fun things going on at the seniors. So if you do not know about The Center, then get in, get in touch. We can share a lot more information with you about that.
Olivia Burdick [00:27:30] Yes, we can.
Jessica [00:27:31] We can. So, Olivia, how do people get in touch with you? How can they sign up for volunteer or find out what is needed or how much check they can write? What can they do? How can they get to you guys?
Olivia Burdick [00:27:41] They can stop by any time. We are located at 17 Old San Antonio Road. They can visit our website currently www.rainbowseniorcenter.com and they can always give us a call at 830-249-2114.
Jessica [00:27:58] Wonderful. Well, that’s all the time that we have with Olivia. Thank you so much for coming out today. We greatly appreciate it. And I, I think that the Kronkosky Place is such a wonderful, wonderful part of Boerne. And it if you haven’t been there, you’re missing out. Go check it out. Absolutely so.
Cali [00:28:15] Thanks, Olivia. Thank you for coming. And we can’t let you off the hook. What is your favorite thing about Boerne?
Olivia Burdick [00:28:20] My favorite thing about Boerne is the older adult population. They are my favorite.
Jessica [00:28:28] All the stories, right? All the history.
Cali [00:28:31] Lots of history.
Olivia Burdick [00:28:32] So much wisdom.
Cali [00:28:33] Yes. Yes. Thanks again for joining us. So, so nice to have you and have a great day, everybody.
Jessica [00:28:38] Have a great day. All right, y’all.