North Carolina Fourth Fastest Growing State

North Carolina's population jumped 2 percent from July 2007 to July 2008, making it the fourth-fastest growing state, the U.S. Census Bureau said today. North Carolina's numeric gain was the third-highest in the nation.

You can read more about it here.

Happy Holidays from Henry Property Management

All of us at Henry Property Management want to wish you the best this holiday season. We had a small holiday celebration and took some new staff photos for the website and blog.

Gene, Debbie, and Tommy

If at first you don't succeed ...
...try...

...try...

again!
We wish you much success in 2009 and are looking forward to continuing our business together .

Market Report: Fall 2008

2008 has been a historical year. Families that cannot sell their homes are electing to turn their homes into rental properties. This has caused a drastic increase in available rental properties. Potential buyers who cannot get mortgages are forced to find a rental home. Even though we have more families looking for rental homes, individual landlords might not notice the increase due to the added volume of available rentals.

During a typical year, the rental market slows down from Halloween through New Year's. This year has been atypical. Although we have seen a decrease in phone calls, web site hits and MLS showings, it is still busier than normal.

As we enter into 2009, we are expecting to continue with this trend of increased activity.

Debbie Henry
Henry Property Management
919-859-2323

Annette Hall, CPA: Q&A 8

My property manager insists that I fill out a W-9 before she manages the property. Why?

The IRS requires the rental income recipient to complete a Form W-9 in order to secure an accurate taxpayer identification number so that the 1099 can be completed at the end of the year.

Annette Hall, CPA
515 Keisler Drive
Cary, NC 27518
919-468-0505

Annette Hall, CPA: Q&A 7

My property manager holds a pet fee in an escrow account. Do I report the income the year it was paid by the tenant (and held in the escrow account) or the year it is sent to the owner?

If the pet fee is a deposit that may be returned to the tenant, than it is not income. If any amount is sent to the owner with no liability to the tenant then it becomes income at that point.

Annette Hall, CPA

515 Keisler Drive

Cary, NC 27518

919-468-0505

Annette Hall, CPA: Q&A 5

Are there any tax liabilities of owning rental property?

The taxable gain on the sale of the property and the loss limitation are the primary concerns.

Annette Hall, CPA: Q&A 6

What are the tax benefits of owning rental property?

There is a tax deferral opportunity for many rental scenarios. In that the property is appreciating in value, there is a positive cash flow and no income is recognized until the property is sold if depreciation is sufficient to offset the positive cash inflow.

Annette Hall, CPA
515 Keisler Drive
Cary, NC 27518
919-468-0505

Cary Ranked 15th Safest City in United States

The Cary News reports that for the tenth straight year Cary, North Carolina has appeared on the list of the nation's safest cities.

Read more about it here.

Annette Hall, CPA: Q&A 5

Are there any tax liabilities of owning rental property?

The taxable gain on the sale of the property and the loss limitation are the primary concerns.

Annette Hall, CPA
515 Keisler Drive
Cary, NC 27518
919-468-0505

Annette Hall, CPA: Q&A 4

Is it better to have my rental property owned by an individual/couple , LLC or Corporation?

The tax implications of the entity selection would depend on the tax rate of the owner and passive activity holdings. The legal implications of the entity selection are more important for liability protection.

Annette Hall, CPA
515 Keisler Drive
Cary, NC 27518
919-468-0505

Featured Property: 107 Preston Pines

This gorgeous home is located in desirable Preston in Cary, North Carolina. It includes a beautifully updated kitchen with granite counter tops and a relaxing sun room for you to enjoy. Priced at $1,895.00 per month and is available immediately.

• 4 bedrooms, 2.5 baths
• Sun room
• Kitchen includes walk-in pantry, granite counter tops, center island, microwave, smooth surface stove and dishwasher
• Master suite has a walk-in closet, double vanity, jacuzzi tub + stall shower
• Fireplace
• 2,755 square feet
• Deck
• 2-car garage

Annette Hall, CPA: Q&A 3

I receive a monthly statement from property manager. Is the monthly operating statement sufficient proof of my expenses or does the IRS require copies of every bill paid?

The IRS requires documentation from a 3rd party source to substantiate any rental and or business deductions. The documentation should show the date, amount paid, who it was paid to and that the purpose was business/rental related. If the property manager identifies this information on the monthly statement and the payment is made directly to the property manager then that should be sufficient.

Annette Hall, CPA
515 Keisler Drive
Cary, NC 27518
919-468-0505

Annette Hall, CPA: Q&A 2

I plan on moving into the property when the tenants move out. Can I write off the cost of the carpet, paint, etc. if the repairs are for me?

The rental property should be maintained to the original condition. Any repair costs to return the property to original condition would be deductible expenses for the rental. Any costs to improve the property beyond the original condition would not be deductible.

Annette Hall, CPA
515 Keisler Drive
Cary, NC 27518
919-468-0505

Annette Hall, CPA: Q&A

If I plan to sell my house within the next 3-5 years (and I have lived in the home at least 2 of the years), can I depreciate the home and NOT pay capital gains?

Individual homeowners can exclude up to $250,000 of gain on the sale of their principal residence if they meet the 2 year ownership and use requirements. The exclusion is $500,000 for married couples. The exclusion can only be once in a 2 year period.

If the residence has been converted to a rental property this exclusion no longer applies. Depreciation is a required expense for rental property. The gain realized on the sale of the rental property will be split between recaptured depreciation subject to a maximum tax rate of 25% and regular capital gain for the remaining amount.

Annette Hall, CPA
515 Keisler Drive
Cary, NC 27518
919-468-0505

Featured Property: 306 Old Dock Trail

This charming home is located in desirable Park Village, with easy access to Highway 55 and Davis Drive, getting you to RTP in minutes. With lots of natural light and an open two story family room, this home is sure to please. Priced at $1,295.00 per month.

• 3 bedrooms, 2.5 baths
• Eat-in kitchen
• Fireplace
• Backs up to green way
• Master suite has walk-in closet, double vanity
• 1 car garage
• 1638 square feet

This home is available immediately. Community recreation and pool is included in rent.
To schedule an appointment to see this property, please call Lois Rice at 919-607-0170.
To submit an application, please click here.
For more information regarding this property, please click here.

Featured Property: 901 Balmoral Drive

This beautifully updated downtown home is centrally located in popular Cary, North Carolina. Nestled in a lush greenway in a quiet neighborhood, this home is a must see, especially at $1,195.00 per month.

• 3 bedrooms, 2 1/2 baths
• Updated kitchen, with separate dining room and an eat in area
• Master suite with huge walk-in closets, double sinks, separate tub, and stall shower
• Fenced yard
• Beautiful deck overlooking backyard, perfect for entertaining

To schedule an appointment to see this property, please call Lois Rice at 919-607-0170.

To submit an application, please click here.

For more information regarding this property, please click here.

Debbie Henry

Debbie Henry has managed investment property since 1983 and founded Henry Property Management in 1989, revolutionizing the property management industry in Wake County.

She was born and raised in Raleigh and attended the Wake County Public Schools. She graduated from NCSU with a BS in Microbiology.

Her personal and professional approach to property management has set her company apart from the rest, placing Henry Property Management as the premier property management firm in Cary.

Lois Rice

Lois Rice is a licensed North Carolina real estate broker and has been with Henry Property Management since 2005. As the showing agent for Henry Property Management, she is the first point of contact for all prospective tenants.A New Jersey native, Lois moved to North Carolina in 1988. She enjoys reading, shopping and gardening.

Her sense of professionalism makes her an invaluable member of the Henry Property Management team.

Theresa McArthur

Theresa McArthur has been a property management bookkeeper since 1990. She is one of two consultants in North Carolina for the accounting software used by Henry Property Management.

Her keen attention to detail and meticulous nature ensure accuracy and professionalism for the firm.

A North Carolina native, Theresa enjoys spending time with her family, tending to orchids, and reading on the beach.

Gene Barrow and Tommy Brogden

Gene Barrow (left) has been with Henry Property Management for over 17 years and has worked in construction since 1966. In the early 1970s, Gene owned his own construction company and many of the homes in Cary today were built by Gene Barrow Construction.

Tommy Brogden (right) has been working with Gene since 2004 and brings 35 years of experience to the company.

They both enjoy fishing, boating and camping.