Your April Message from C.A.R. President Steve Goddard

Steve Goddard - 2010 C.A.R. President

Dear C.A.R. Member:

Perception often equals reality for today’s image-driven, media-conscious consumers. While conventional wisdom might deem it prudent to cut costs across the board during a business downturn, that philosophy doesn’t apply when it comes to marketing and advertising. Industry studies have confirmed that a long-term strategy for building a brand, burnishing an image, and capturing market share is to maintain, or even increase, marketing expenditures during a downturn. Proactively promoting our professionalism as REALTORS®, and as an industry, are no exceptions.

That’s one reason C.A.R. has consistently reached out to consumers regardless of the temperature of the real estate market through our Consumer Advertising Campaign. This year’s “Your Piece of California. Your Peace of Mind” Consumer Advertising Campaign launches next week, featuring television, radio, and online components, reinforcing the value of working with a REALTOR® and helping consumers understand why now may be the best time in years to buy a home. Be on the lookout for an e-mail next week with complete information on the campaign; for a sneak peek, go to http://www.car.org/aboutus/adcampaign/.

The April 15 federal income tax filing deadline is days away, and the IRS has said it will step up audits of independent contractor status and expand its audits of small businesses during 2010. It’s a timely reminder to broker/owners to make sure they have their business and tax records in order. Those who are lax in their record keeping, such as written independent contractor agreements, may incur significant penalties.

You can help ensure that your buyers are aware of the April 30 deadline for closings and contracts in order to qualify for the federal Extended Home Buyer Tax Credit. To qualify for the credit, they must close on their home purchase by April 30, 2010, or have a binding written contract by April 30, 2010, and close by July 1, 2010.

To help understand the state’s home buyer tax credit recently signed into law by Governor Schwarzenegger — legislation which C.A.R. supported since its inception — there is an informative chart compiled by C.A.R.’s legal team that lays out the rules and requirements for both the state and federal tax credits. It’s an easy way for you to present a side-by-side comparison to your clients. Research has demonstrated that the availability of the federal tax credit played a significant role in consumers’ decisions to buy a home this year, so the state home buyer tax credit will no doubt spur a similar response.

There’s more good news on the tax front: Governor Schwarzenegger yesterday signed SB 401 (Wolk), a measure providing tax relief on mortgage debt forgiven in a short sale, foreclosure, or loan modification. Previously, California homeowners generally were exempt from owing federal taxes on the forgiven mortgage debt, but still were required to pay California taxes on the so-called “phantom income.” This bill now aligns the state’s tax code with that of the federal government and has become law in time for people to take advantage of it by the April 15 deadline for filing tax returns.C.A.R. has prepared a Realegal® detailing what you need to know about the new law — you can access it here.

With healthcare reform in the news and its ultimate impact uncertain, it’s good to know that open enrollment for group medical and vision coverage through C.A.R. is available through May 15 for coverage effective June 1. C.A.R. offers five plans through Anthem Blue Cross and 11 plans through Kaiser Permanente. For more information, call RealCare at (800) 939-8088 ext. 202, or go to http://realcare.biz/realtors. If you’re located in the Inland Empire, or Los Angeles or San Diego counties, you may call RealCare at (800) 588-8628 or go to www.RealCare.biz/KN.

REALTORS® have a long-standing tradition of community involvement, and are generous first responders when disaster strikes one of our own. This is especially timely given the recent temblors that struck Mexico and parts of Southern California last week. To help members of the REALTOR® family — REALTORS®, their staff, and association members and their staff — affected by natural and other disasters, C.A.R. established the C.A.R. Disaster Relief Fund in the wake of the devastating 2003 California wildfires. Today, C.A.R. continues to reach out to those affected by natural and other disasters by distributing grants of $1,000 to $10,000 from the fund. If you’d like more information on the fund, or want to make a tax-deductible donation, go to http://www.car.org/members/realtorscare/.

Sincerely,

Steve Goddard
2010 President
CALIFORNIA ASSOCIATION OF REALTORS®