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Ask Eli: Does Virginia, Washington DC, or Maryland Have The Most Favorable Taxes?

By ARLnow.com Sponsor

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: I recently got a job in the D.C. Metro area and will be moving to the area next year. I am open to living in Northern Virginia, Washington D.C., or Maryland and want to know which jurisdiction offers the most favorable taxation.

Answer: Congratulations on your new job (Amazon HQ2?)! There must be a lot going on in your mind right now like whether you’re still young enough to offer your friends pizza and beer to help you move.

For years I’ve looked for a good resource to send clients in response to this question and couldn’t ever find it, so I reached out to my CPA, Klausner & Company located in Arlington, Virginia, who I highly recommend, to come up with a detailed yet simple chart to compare taxation between Virginia, Maryland and Washington D.C. across different incomes.

So with that, I will turn this week’s column over to Chris Light and the tax experts at Klausner & Company, enjoy!

First thing’s first, Virginia, Washington D.C. and Maryland all have reciprocity with each other. This means that if you live in one state and work in the other, you only have to worry about paying taxes and filing a tax return in the state that you live in.

Let’s analyze the tax outlook of three different people who have just landed new jobs as employees in the D.C. Metro area:

  • Bobby’s AGI is $85,000. Bobby has a vehicle valued at $18,000 and a home valued at $450,000.
  • Sarah’s AGI is $150,000. Sarah has a vehicle valued at $35,000 and a home valued at $800,000.
  • Chris’s AGI is $300,000. Chris has a vehicle valued at $65,000 and a home valued at $1,200,000.

Important Notes

AGI, Adjusted Gross Income, is a term to describe a person’s income minus some specific deductions. Bobby, Sarah and Chris’ AGI are all based on salary earned by the end of 2018. AGI is used to determine taxable income, as seen in the ‘Math’ chart below. Taxable income determines which income tax brackets they fall in.

They are all taking the standard deduction. Virginia and Maryland property taxes vary by county and city/town, so the table below uses Arlington County rates for Virginia and the average Montgomery County rate for Maryland. Now let’s crunch some numbers:

For the full text of this column including summary of findings, how adjustments like renting and being married impact your tax position, and helpful reference tables please follow this link (don’t worry, I won’t ask for your email address, I just don’t have enough space here).

Thank you very much Klausner & Company for finally providing people with an easy to understand breakdown of taxation in the DMV. For those of you in need of CPA services for yourself or your business, I am a loyal, happy client and I can’t recommend them enough.

They provide specialize in tax services for individuals and small business and have over 40 years of experience in the Greater Washington area.

Once you’ve taken advantage of the provided tax information and would like to talk about the non-tax related questions you have about where to live, please reach out to me at [email protected]. Our team has worked with buyers from all over the country and the world to find the right neighborhood and we’re happy to help you too.

If you’d like a question answered in my weekly column, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at www.EliResidential.com. Call me directly at (703) 539-2529.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with Real Living At Home, 2420 Wilson Blvd #101 Arlington, VA 22201, (202) 518-8781.

Legal Review: Attorneys Say Prenuptial Agreements Are Increasing Among Millennials

By ARLnow.com Sponsor

By Family Law Attorney Brian W. Reidy of Reidy Law Office LLC

Millennials often say that it is more difficult for their generation to get a job, buy a house and secure their financial future.

Perhaps this is the reason attorneys are reporting an increase in prenuptial agreements among millennials that want to protect that future.

A survey among the American Academy of Matrimonial Lawyers found that over half of these professionals were seeing an increase in the number of millennial prenuptial agreements they were drafting.

This indicates that more millennials are understanding these agreements are contracts, but not seeing them as the divorce contracts they were once thought to be. While once people may have thought that these agreements were counting on a divorce, millennials do not seem to think that way.

“The truth is, marriage is a contract,” said Brian W. Reidy of Reidy Law Office LLC. “It is just one that many do not realize they are entering into at the beginning of marriage. The state will determine what each spouse receives in the event of a divorce. Having a prenuptial agreement just allows those involved in the contract to have a say in its final terms. It’s a great move for many millennials.”

It is true that every couple should have several conversations about finances before getting married. Each person should understand the other’s debt, income, assets and more, as it will affect their financial future.

Each person also has the right to protect the things they bring into the marriage.

While a prenuptial agreement may not make sense for every couple, it should at least be considered by all. Those that decide on a prenuptial agreement should always seek the advice of a family lawyer. Each spouse will also need to have their own lawyer that will represent their interests while the contract is drawn up.

Many millennials are finding that love and marriage are of course, very romantic things. At the same time, they are looking for ways to secure the financial future they worked so hard for.

Having a prenuptial agreement beforehand is helping them do it.

Neighborhood Spotlight: Get a Breathtaking View of D.C. From the Observation Deck in Rosslyn

By ARLnow.com Sponsor

This content was written and sponsored by The Keri Shull Team, Arlington’s top producing residential real estate team.

In this video, Cassidy Ginivan from the Keri Shull Team takes us up to the Observation Deck in Rosslyn.

After passing through the box office just across the street from the Rosslyn Metro, you’re ushered into a glass elevator that starts up — and up, and up, an even longer ride than the Rosslyn escalator — as the streets shrink below you.

Soon you’re hundreds of feet above the rooftop patios of Arlington, the clouds look closer and you’re at eye level with blue sky through floor-to-ceiling glass windows.

A dark blue, geometrically fascinating ceiling glimmers with constellation-style lights overhead. As you walk the perimeter, your 360-degree view of Arlington, D.C. and surrounding land is punctuated by touch panel displays — “Windows into History” — where you can get hands-on with fascinating facts about historic figures and famous landmarks.

This is the Observation Deck.

The Observation Deck is just across the street from the Rosslyn Metro stop and 400 vertical feet above. It’s a space full of sleek glass and gleaming metal where you can gaze out of floor-to-ceiling windows for a sweeping view of D.C. and Arlington.

It’s fun to pick out familiar landmarks, from Courthouse to the National Mall… and it will make you wonder yet again why your commute, which looks so small from above, has to take so long.

Things To Do Above the Skyline

The Observation Deck’s aerodynamic-looking interior is as beautiful as the view itself, and there are lots of fun things to do here.

Don’t miss the Instagram experience, where you can get amazing photos above the skyline with perfect natural lighting. Hover D.C., an immersive flyover experience, allows you to see and feel what it’s like to hover over the city with actual birds-eye footage of the nation’s capital, even restricted airspace. See the rooftops pass beneath your feet as the wind blows in your face.

There’s now a new lounge bar on the 32nd floor — called “The View” — pouring Champagne and displaying photos from local photographers. For a chance to get noticed and have your photo shared on screens in the champagne bar, tag your own photo from the Observation Deck or surrounding D.C. area with the hashtag #TheViewofDC on any social platform.

Events include Sunrise yoga every month, the Revolutionary Rivalry event on March 9th to prepare for the George Mason versus George Washington basketball game and many other events announced via @theviewofdc on Facebook, Twitter, and Instagram.

What are some other good spots for a scenic view in Arlington? Let us know in the comments.

If anyone you know is looking to buy or sell a home in the DMV, contact the Keri Shull Team today!

Your Beermonger: Through the Haze — How I Learned to Stop Worrying and Love the Juice Bomb

By ARLnow.com Sponsor

This sponsored column is written by Nick Anderson, beermonger at Arrowine (4508 Lee Highway).

The rise of Hazy/Juicy/New England-style IPAs was probably my first “old man yells at cloud” moment as a beer “professional”, or whatever it is I am.

They weren’t bitter, and the “haze for haze’s sake” thing was almost immediately obnoxious to me. It felt like style was trumping substance, not to mention the difficulty in keeping up with the tide of frequent new releases.

The thing that might’ve irked me the most was that I really liked a lot of the beers that kicked off the movement, and have enjoyed many that followed. To name only a few: The Alchemist’s Heady Topper is great, and if anything I enjoy Focal Banger even more.

The Lawson’s Finest Liquids beers I’ve tried have been excellent. I adore Two Roads’ Two Juicy, Solace’s Partly Cloudy and mostly anything Commonwealth Brewing Company puts out, and have been on a recent kick with Fat Orange Cat’s Write Drunk Edit Sober (pictured — how did they know?).

So, as usually happens once I get over myself, I found myself far more open to new takes on the style, and more easily able to discern what I liked/disliked in a Hazy IPA, and whose versions I tended to prefer. Not much of a surprise there.

What did surprise me was something I started noticing before, but especially after I rejoined the staff here at Arrowine: how many wine drinkers were getting into Hazy IPAs.

Actually, the idea coalesced observing our own fearless leader himself, Doug Rosen. Where just a few years ago, you couldn’t pay him to drink the average IPA, now he’d try new Hazy IPA arrivals and note their flavors, and balance. This threw me for a loop. What balance? I would think. There’s little or no bittering hop here; little in the way of malt character — where’s the balance in that? 

But it wasn’t just Doug saying things like this; a number of our customers, especially our more wine-centric ones, were finding themselves enjoying IPAs, many for the first time.

I realize now that I was thinking of “balanced” IPA in terms of what it used to be — which I still love, mind you — back in the days of the IBU wars, when the more aggressively bitter your IPA was the more sought after it became.

With an emphasis on low bitterness, fruity aromas/flavors and specific varietal characteristics (from hops rather than grapes), Hazy IPAs are a great gateway beer for wine fans, many of whom are discovering that they didn’t dislike “hoppy” beer so much as overly “bitter” hoppy beer.

So, scoff at that orange juice-looking beer on Instagram (like I still do at more egregious examples), but bear in mind that it and others like it are expanding beer’s audience and consumer base at a time when between an explosion of new breweries, continued growth in hard liquor/cocktails and the looming competition of legalized marijuana (more on that at some point), new consumers are more important and more difficult to draw in than ever.

Until next time.

Open Houses in Arlington this Weekend

By ARLnow.com Sponsor

Looking for a home? There are plenty of houses and condos open for viewing this weekend.

Check out the Arlington Realty website for a full list of homes for sale and open houses in Arlington. Here are a few highlights:

3187 17th Street N.
5 BR/6 BA single-family home
Agent: Ttr Sotheby’s International Realty
Listed: $2,095,000
Open: Saturday 2-4 p.m.

 

4148 N. Round Hill Road
4 BR/3 BA, 2 half bath single-family home
Agent: Long & Foster Real Estate, Inc.
Listed: $1,324,000
Open: Sunday 1-4 p.m.

 

1730 S. Fillmore Street
5 BR/3 BA, 1 half bath single-family home
Agent: Keller Williams Realty Falls Church
Listed: $1,000,000
Open: Sunday 2-4 p.m.

 

1245 N. Pierce Street #8
3 BR/2 BA condo
Agent: Rlah Real Estate
Listed: $800,000
Open: Sunday 1-3 p.m.

 

4300 8th Street S.
3 BR/2 BA single-family home
Agent: Rlah Real Estate
Listed: $749,000
Open: Sunday 1-3 p.m.

 

1600 N. Oak Street #927
2 BR/2 BA condo
Agent: Washington Fine Properties
Listed: $674,000
Open: Sunday 2-4 p.m.

 

1921 S. Quincy Street
2 BR/1 BA single-family home
Agent: Keller Williams Realty
Listed: $528,000
Open: Sunday 1-4 p.m.

Just Listed in Arlington

By ARLnow.com Sponsor

Just Listed highlights Arlington properties that just came on the market within the past week. This feature is written and sponsored by Team Cathell, “Your Orange Line Specialists.”

We’ve barely made it to Valentine’s Day (hope you remembered the flowers) and Arlington’s Spring real estate market has already blown up.

This week sellers listed 42 homes and buyers ratified 58 contracts, and 23 of those were on homes only seven days on the market. More than half the new listings sold within a week! Amazing. And of course there were bidding wars.

What’s a buyer got to do to win? To the best of your ability, go big on price and take out as many contingencies as you can. Remember, every home you lose becomes the comp for the next listing. A buyer needs to get out ahead of the market just once to win, otherwise the buyer gets farther behind.

Interests rates bounced upward a bit this week on news that some inflation factors bumped up. The 30-yr fixed rate is at about 4.5%-4.6%.

Nationally, there are already signs that the housing market is not keeping pace with the strong U.S. economy. The number of sales and total sales volumes are down from last year, which itself was a down year. Some economists point to three reasons: student debt holding back first time home buyers, inventory shortage nationwide and uncertainty about mortgage interest rates.

Buyers and sellers are both effected by these conditions. Many home owners want to sell and either move up, move down, or move out, but they can’t find a suitable replacement home. And home buyers are squeezed by rising prices, no choices, rising mortgage rates and relatively flat household income.

As economists generally agree, the U.S. housing market has a profound influence on the U.S. economy.

When you are thinking of buying or selling real estate, call Team Cathell for a free consultation at (703) 975-2500.

Click to see all the fresh new inventory in MRIS.

Boring Title: 2019 Real Estate Market Update — Everything You Need to Know

By ARLnow.com Sponsor

Title insurance is boring, but Allied Title & Escrow is here to decode the jargon and make it (somewhat) more interesting. This biweekly feature will explore the mundane (but very necessary!) world of title insurance while sharing interesting stories of two friends’ entrepreneurial careers.

We brought in Chris Heisey from Snead Custom Homes to tell you everything you need to know!

Have questions related to title insurance? Email Latane and Matt at [email protected]. Want to use Allied Title & Escrow when you buy a home? Tell your agent when you buy a house to write in Allied Title & Escrow as your settlement company!

Arts Focus: The Library’s Groovin’ On the Pike Dance Party Series Continues

By ARLnow.com Sponsor

This column is written and sponsored by Arlington Arts / Arlington Cultural Affairs, a division of Arlington Economic Development.

The Groovin’ On the Pike: After Hours at the Library dance party series continues for March.

The collaboration between Arlington Cultural Affairs/Arlington Arts and Arlington Public Library features a diverse line-up of musical groups routinely drawing upwards of 200 patrons to dance in the stacks and enjoy a brew from the cash bar every first Friday of the month at 7 p.m.

Here’s a quick look at the schedule for March and April:

March 1 — Bitter Dose Combo

The Bitter Dose Combo is D.C.’s premiere gypsy jazz band, playing swing and hot jazz standards at social dances, bistros, supper clubs, weddings and special events in and around the District.

The BDC’s sound combines the improvisation and swinging guitar made famous by Django Reinhardt with spirited jazz vocals, Paris musette accordion and upright bass.

April 5 — Los Gallos Negros

From rural son jarocho to urban mariachi styles and contemporary Caribbean rhythms, Los Gallos are an eclectic musical ensemble working to make the modern more traditional and the traditional more modern. Members of the group hail from throughout the U.S. and all have strong roots in Mexico. Los Gallos perform regularly across the East Coast, including National Mall marches, Smithsonian museums and even the 2016 White House Cinco de Mayo celebration for President Barack Obama.

Come on out and discover another side to your local library! Click this link for free tickets.

Just Reduced Properties in Arlington

By ARLnow.com Sponsor

Each week, “Just Reduced” spotlights properties in Arlington County whose price have been cut over the previous week. The market summary is crafted by licensed broker Aaron Seekford of Arlington Realty, Inc. GET MORE out of your real estate investment with Aaron and his team by visiting www.arlingtonrealtyinc.com or calling 703-836-6116 today!

Please note: While Aaron Seekford provides this information for the community, he may not be the listing agent of these homes.

Hello there, lovebirds.

In case you forgot, tomorrow is Valentine’s Day. So, if you’ve failed at getting your boo a little somethin’-somethin’, I’m trying to help you remember here.

Speaking of love, let’s review a few of the reasons you’ll love living in Arlington:

  • The diversity of our neighborhoods. Whether you’re looking for hopping nightlife (in Clarendon) or an expansive, green front yard (options galore in Aurora Highlands), Arlington has it. And, a good chunk of our neighborhoods are connected by public transportation.
  • Our schools rock. Niche.com (among other sites) named us the No. 1 school district in the state. ‘Nuff said.
  • And, our employment scene is among the best nationally. According to the latest Bureau of Labor Statistics report, Arlington’s unemployment rate is hovering at 2.0%. The region continues to be anchored by comparatively high salaries as well.

When you’re ready to turn your Arlington crush into a full-fledged romance (with a beautiful home), our team is ready to help you GET MORE out of your transaction.

As of February 11, there are 112 detached homes, 17 townhouses and 101 condos for sale throughout Arlington County. In total, 15 homes experienced a price reduction in the past week:

Please note that this is solely a selection of Just Reduced properties available in Arlington County. For a complete list of properties within your target budget and specifications, contact Aaron Seekford.

Ask Eli: Dealing With Homes Selling Above Asking Price

By ARLnow.com Sponsor

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Rosslyn resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: Are you seeing people use Escalation Addendums in their offers now that the supply of homes has dropped?

Answer: The use of Escalation Addendums in multiple offer situations is not new, but the frequency with which they are being used is. In the last three months over 25% of sales have been for over the asking price (another 24% have been for full ask). All-time low inventory levels + strong demand = price increases and a lot of competition from well-qualified buyers.

In the last 24 hours our team has submitted three offers on properties with multiple offers that will no doubt sell for over the asking price. In many cases, using an Escalation Addendum is the best strategy for buyers and sellers so let’s take a look at what that means.

What is an Escalation Addendum?

An Escalation Addendum provides the maximum value a buyer will pay and an escalation factor, the amount their offer is to increase over the next highest offer. Sellers may use the escalation without further approval from the buyer, but they must deliver to the buyer the entirety of the contract used to escalate the accepted offer. Escalations are based on “Net Price” meaning purchase price less any seller credits.

Understand the Risks

The obvious risk in using an Escalation is that buyers are exposing their maximum purchase price and some sellers may ask for that max, regardless of whether or not another offer allows them to get there contractually. There are strategies buyers can use to prevent a seller from doing this and, in my experience, most sellers use Escalations as they’re meant to be used.

The other not-so-obvious problem is with non-financial differences between two contracts. The Escalation Addendum says nothing about differences in settlement date, contingencies and other non-financial terms that make a material difference between contracts (e.g. no Home Inspection Contingency vs full Inspection Contingency is treated equally in the Escalation Addendum).

When to use an Escalation Addendum

Escalations are best used when there are multiple confirmed offers and the seller has set a deadline for “best-and-final” offers. It’s important for buyers to establish expectations with the seller before they include an Escalation Addendum to maximize the benefit and reduce the risks.

This is where having an experienced agent working for you can be the difference between making a smart decision and irresponsible one or securing a home and helping somebody else secure it.

Proper Communication is a Win-Win

I strongly believe that with proper communication between sellers and buyers, Escalation Addendums benefit both parties by allowing the seller to draw out the highest available price for their home and allowing buyers to confidently maximize their chance of securing a home. Improper communication leads to a lack of trust and a lack of trust will almost always earn sellers less and may keep the most motivated buyer out of the home of their dreams.

I can think of a recent example where a seller left 2% on the table by failing to communicate appropriately which compromised the trust of our client leading them to hold back on their offer terms. A lack of trust kept 2% out of the seller’s pocket and kept our client out of a home they loved.

It’s Not Always About Price

Being the winning offer amongst multiple offers isn’t always about price. Buyers need to focus on non-financial terms as well to set themselves apart and it’s important to understand how you can increase the strength of your offer without taking on excessive risk, but that’s a topic for another day.

If you’re thinking about buying or selling a home and would like to discuss the right strategies in today’s market feel free to email me at [email protected] to set-up a meeting.

If you’d like a question answered in my weekly column, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at www.EliResidential.com. Call me directly at (703) 539-2529.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with Real Living At Home, 2420 Wilson Blvd #101 Arlington, VA 22201, (202) 518-8781.

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