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.