DGS Realty and Loans

04/08/2024

Here is a DGS ad we had created a while back for Realtors looking to become a Loan Officer. With the upcoming changes due to the NAR settlement, this becomes even more relevant.

At DGS Capital and Loans, you can continue working as a Realtor with your current real estate broker while partnering with us as a Licensed Loan Originator.S...

04/05/2024

Thrilling Announcement: DGS has forged a strategic alliance with a prestigious LA based lender, resulting in enhanced savings for our borrowers. Offering remarkably competitive mortgage rates, our aim is to empower borrowers with substantial cost savings.

Call now to know about our lowest interest rates.

04/04/2024

Unlock your path to home ownership with our exclusive offer: Receive a generous 2% grant of your home's purchase price, without ever needing to pay it back. Whether it's for your down payment or closing costs, this grant empowers you to step confidently into home ownership. Perfect for first-time buyers and seasoned homeowners alike.

03/03/2024

Your home sale may leave you in a tax shock. Here’s how to reduce your capital gains tax bill

If you sold a home in 2023, part of your profit could be subject to capital gains taxes.
Single homeowners can shield up to $250,000 of home sales profit from capital gains taxes and married couples filing jointly can exclude up to $500,000, provided they meet IRS rules.
You can also increase the home’s “basis,” or purchase price, by tacking on the cost of certain improvements.

Despite a slump in U.S. home sales, many homeowners made a profit selling property in 2023. Those gains could trigger a tax bill this season, depending on the size of the windfall, experts say.

In 2023, home sellers made a $121,000 profit on the typical median-priced single-family home, according to ATTOM, a nationwide property database. That’s down from $122,600 in 2022.

If you’ve owned the property for more than one year, profits above $250,000 and $500,000 are subject to long-term capital gains taxes, levied at 0%, 15% or 20%, depending on your 2023 taxable income. (You calculate “taxable income” by subtracting the greater of the standard or itemized deductions from your adjusted gross income.)

Capital gains tax rates for 2023
The table shows U.S. capital gains tax rates for 2023 according to the IRS.

Long-term capital gains rate Taxable income
SINGLE FILERS
0% $0 to $44,625
15% $44,626 to $492,300
20% $492,301 or higher
MARRIED FILING JOINTLY
0% $0 to $89,250
15% $89,251 to $553,850
20% $553,851 or higher

Who qualifies for the capital gains exemptions
The “ownership test” says you must own the home for at least two of the past five years before your home sale — but that’s only required for one spouse if you’re married and filing jointly.
There’s also a “residence test,” which requires the home to be your primary residence for any 24 months of the five years before sale, with some exceptions. (The 24 months of residence can fall anywhere within the five year period, and it doesn’t have to be a single block of time.)

Both spouses must meet the residence requirement for the full exclusion.

A partial exclusion may also be possible if you sold your home because of a workplace location change, for health reasons or for “unforeseeable events,” according to the IRS.

Generally, you can’t get the tax break if you received the exclusion for the sale of another home within two years of your closing date.

How to reduce your home sale profits
If your capital gain exceeds the IRS exclusions, it’s possible to reduce your profits by increasing your home’s original purchase price or “basis".
You can increase your home’s basis by adding certain improvements you’ve made to the property to “prolong its useful life,” according to the IRS.

For example, you could tack on the cost of home additions, updated systems, landscaping or new appliances. But the cost of repairs and maintenance generally don’t count.

Of course, you’ll need detailed records to show proof of capital improvements, because estimates don’t work when it comes to an audit.

After a home sale, the IRS receives a copy of Form 1099-S, which shows your closing date and gross proceeds. But you need paperwork to prove any changes to your home’s basis.

Failing to keep home improvement records throughout ownership is a common mistake.

Call us at (480)205 2234 to get more information on current mortgage rates.

02/07/2024

6 surprising real estate paradoxes that'll change how you do business

The giving paradox
The giving paradox states that the more you give, the more you will receive. Focus on identifying the biggest pain points your ideal clients have and give them the solutions. Find neighborhoods that lack a professional providing value to the owners of that neighborhood, and begin giving it to them.

When it comes to your business, look for ways to give and the results you desire will follow.

The growth paradox
The growth paradox states the success you desire will take longer than you anticipate, but once it begins, it will happen faster than you can imagine. Have you ever had those times in your business when you hit a dry spell, but you knew you were doing what it took to have success? Then all the sudden, out of nowhere, you move from having no listings to having four people that call ready to list their home.

Most agents forget that our business operates on a 60- to 90-day cycle, meaning the work we do today at best shows up in a closing 60 to 90 days from now. This leads to panic for many agents when they don’t see immediate results from their actions.

Trust the process, and know that your hard work and the value you are bringing to the market will be rewarded. It may take longer than you would like, but once it starts coming, it will come quickly.

The problem paradox
The problem paradox states that the more problems you encounter, the more opportunities you will have to show your worth and grow your business. When you find yourself with difficult transactions, remember that by guiding your clients through these difficulties, you can build clients and referral partners for life.

One of the lingering issues for agents now is that when the market was so hot during the pandemic, many agents were nothing more than order-takers. The transactions moved quickly, and that left very little opportunity for agents to show their value or build relationships.

Look for ways to solve problems, and your business will grow.

The selling paradox
The selling paradox says the less you try to sell someone, the more they want to buy from you. When people don’t feel pressured to buy it gives them the room they need to calmly consider what is best for them and to freely make the decision to buy.
Buyers and sellers operate the same way. They want to buy, or they wouldn’t be talking to you and viewing homes. The homeowner at the listing appointment you are on wants to sell their home, or they wouldn’t be meeting with you.

Stop pressuring them, provide the information they need to reach a decision, and give them room to do what they want to do, which is to either buy or sell real estate.

The money paradox
The money paradox says you need to spend money to make money.

The agents with thriving businesses are usually the ones that strategically spend money on direct mail to geographical farms, that invest in videography, and that spend money on innovative marketing for their listings. Their investment in marketing leads to more business and in turn more income.

Top agents invest in coaching, conferences and learning. They understand the knowledge and guidance they invest in will lead to business growth. They invest in transaction coordinators, assistants, or social media specialists that help them build their personal brand.

The fear paradox
The fear paradox says the thing you fear the most is probably the very thing you need to do the most. What is it that you fear the most? Are you afraid to shoot videos? Go shoot the videos. Are you afraid to call past clients you’ve lost touch with? Pick up the phone, and reengage. Are you afraid to pull the trigger and invest in coaching? Hire a coach as soon as possible.

Whatever it is that makes you nervous, odds are that is the exact thing you need to do to see the results you’re seeking. Overcome the fear, and take action. The business you desire is available on the other side of your fears.

When you do the things others aren’t willing to do today, you’ll have the life and business others can’t have in the future. Understand most people won’t embrace these paradoxes or realize their value. Be different. Be bold. Be the agent today that your future self will thank you for being.

Call us at (480) 205 2234 to help your clients with their mortgage needs.

02/01/2024

DGS Realty and Loans just funded a single family home in the heart of Chandler, AZ. A big shout out to Realtor Usha Purushothaman for an excellent service representing the buyer.

02/14/2019

"Hope your day brings just what you want it to"

DGS Capital and Loans

01/05/2019

New Year New Home!! Congratulations to my clients Nitin Mahajan and Rupali Mahajan for their beautiful new home! It has been an absolute delight working with you. Thank you for allowing me to be part of your journey.

If you are in market for buying or refinancing,call DGS Capital and Loans @480-205-2234

12/31/2018