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WESTWORDS AUGUST 2022

TAX STRATEGIES FOR I AM WEST USA

ANGIE

WILLIAMS

CAR WRAPS & CAR SIGNS THAT TELL OF YOU & WEST USA

WITH BROKER BOB

WAYS TO DECREASE

WEAR & TEAR ON

YOUR DISHWASHER

SHORT TERM

RENTALS

JULY

MARKET STATS

SAVE THE DATE

CHRISTMAS PARTY

AUGUST CALENDAR

Antelope Canyon, Page AZ

I AM

I AM ANGELA WILLIAMS I AM DEDICATED I AM PASSIONATE I AM RESPONSIVE I AM DETAIL-ORIENTED I AM TENACIOUS I AM WEST USA

HIGHLY RECOMMENDED

WHAT PEOPLE ARE SAYING I could not have picked a better REALTOR® to help me find the perfect home for my family! Despite being in the middle of a pandemic and in a crazy market, Angela managed to get my first and only offer accepted BELOW Asking price! Angela worked so hard for me and I truly feel she cared and wanted to help me. Because she was a teacher and her husband is in law enforcement, she helped me find the perfect home in a safe community with great schools. Thank you, Angela!

She is very detail oriented and was prompt with answering any of our questions. She is a wonderful agent and I would recommend her to anyone! 10 of 10! We trusted her with the sale of our home and also the purchase of our gorgeous new home. Couldn’t have done it without her by our side!

I can’t express how painless Angela made looking for a home for our family despite being in a crazy pandemic and our choosing to look for a home during a holiday season we found one that is perfect! She walked us through every step Amazing would be an understatement! Selling our home in of the process and was available to answer any and every the middle of a pandemic and peak of a hot market was very question we had no matter the time. If you are looking for a intimidating! Angela managed to make it easy and painless. home she is the one for you!"

BROKER BLOG WITH BOB STEPHENS CAR WRAPS & CAR SIGNS THAT TELL OF YOU AND WEST USA This is great and would also include name badges that you wear to advertise yourself and West USA Realty. When you drive down the highways and streets, I hope no one sees you texting and making calls instead of paying attention to your driving. I have a couple of examples of behavior that was unacceptable to other drivers and they took time to register a complaint call to me and so that is the reason for this blog article. Several years ago, an agent pulling into a bank service lane, cut someone off to get in front of her. The agent had signs on his car with his name and West USA Realty on them. She called me after that and really made a very big issue out of this happening and wanted to know what I was going to do about it. I then had to convince her that I did not send this agent out there to disturb her and that I would ask the agent to call her to apologize. She also made it clear that she would never ever use West USA Realty to do real estate business with. The agent did not even remember it but called and apologized to someone that would not accept his apology and let him know what else she thought about him. Recently, we had an agent with a car body wrap that is beautiful with her name on it BUT, this car apparently did not do a complete stop at a STOP sign and so irritated another driver very much on a certain date. As I investigated this, a couple of days later the agent called me and I explained this event to her. She told me that on the date of this happening, she was in a different country and so, it could not have been her that did this. She checked it out and called me back later after she found the offender to be her husband—not her. The reason for this article is to point out a higher level of awareness of what you are doing with that much advertising wrapped around you. People seem to be more critical of your driving when they know who you are and get great pleasure about calling me to report what it is that they do not like about your driving. BUT don’t be afraid to wrap your car and advertise your business and if I get calls regarding an issue, I am here for you! Don’t forget that.

QUESTIONS, CONTACT: Managing Broker, Bob Stephens | 602-942-4200

TAX STRATEGIES FOR SHORT TERM RENTALS BY: CHRISTOPHER J. CHARLES, ESQ. In many cases, a simple business decision concerning the corporate structure of the holding company for a rental property can result in substantial tax savings for the owner. Most investors understand the benefits of owning rental properties in a single asset entity such as a limited liability company. But many investors do not fully appreciate critical difference between a C corporation or an S corporation, and most investors elect to organize their company with the Subchapter C election.

EXAMPLES: concierge services, daily changing of beds, providing food and beverage, providing recreational lessons, providing information about local attractions, providing vehicles, providing mail delivery to renters, etc.

If the owner and the owner’s tax professional determine that employment tax applies, then the owner should consider electing Subchapter S status for the company and then pay the owner a modest annual salary for services rendered. In that case, the total The Subchapter C election is the presumptive corporate status rents and distributions from the company to the owner would under IRS rules. On the other hand, the S corporation has special not be subject to employment tax; instead, only the owner’s tax status with the IRS and therefore may have tax advantages salary would be subject to self-employment tax. This could be a depending on the company’s use and circumstances. The names substantial tax savings to the owner because the current combined derive from the IRS code: “C corporations” are taxed under self-employment tax is 15.3%, consisting of 12.5% for social security Subchapter C and “S corporations” are taxed under Subchapter S and 2.9% for Medicare. of the code. TAKEAWAY: Short term rental owners should consult with their tax To elect the special tax status, the organizer of the business must elect Subchapter S status on the IRS Form 2553 and all relevant S corporation requirements must be met. (Or if the company has already been organized as a C corporation, then the owner may file the IRS Form 2553 to convert the C corporation to an S corporation.) Importantly, regardless of the tax election status, C corporations and S corporations both enjoy limited liability protection, and are legally distinct entities so that the members (owners) are not typically personally liable for business debts and liabilities. For owners of short-term rental properties, S corporation treatment of the holding company for the rental property may be beneficial. For example, although rental income is generally exempt from employment taxes, pursuant to the IRS, if the owner provides “substantial services that are primarily for the renter’s convenience, such as regular cleaning, changing linen, or maid service, the owner may be responsible for self-employment tax. Substantial services do not include the furnishing of heat and light, cleaning of public areas, trash collection, etc. See IRS Publication 527. But if services are rendered for the renters and the services rendered: (1) are not clearly required to maintain the space in a condition for occupancy; and (2) are of such a substantial nature that the compensation for these services can be said to constitute a material portion of the rent, then self-employment taxes likely apply.

professional to assess whether their business model subjects the owner to self-employment tax. And if the business operations do lend themselves to employment tax, the owner should consider electing the S corporation status for the company to minimize employment tax. Attorney Christopher Charles regularly represents short term rental operators and property managers. If you or someone you know is actively involved in short term rentals or thinking about entering the short term rental market, contact us today to schedule an office meeting or virtual consultation with one of our real estate attorneys. Christopher J. Charles is the Founder and Managing Partner of Provident Law®. He is a State Bar Certified Real Estate Specialist and a former “Broker Hotline Attorney” for the Arizona Association of REALTORS® (the “AAR”). Mr. Charles holds the AV ® Preeminent Rating by the MartindaleHubbell Peer Review Ratings system which connotes the highest possible rating in both legal ability and ethical standards. He serves as an Arbitrator and Mediator for the AAR regarding real estate disputes; and he served on the State Bar of Arizona’s Civil Jury Instructions Committee where he helped draft the Agency Instructions and the Residential Landlord/Tenant Eviction Jury Instructions. Christopher regularly teaches continuing education classes at the Arizona School of Real Estate and Business, and he can be reached at chris@ProvidentLawyers.com or at 480-388-3343.

5 WAYS TO DECREASE WEAR & TEAR ON YOUR DISHWASHER BY BREANNA CASTRO Your dishwasher is one of those modern conveniences you likely take for granted. It’s easy to load it up, turn it on and forget about it – unless something goes wrong. With many of us staying in more (and eating out less), we’re relying on our household appliances more and more – including our dishwashers.

clogs that may prevent water from spraying. The nozzles are small, and you can remove any clogs you find easily by using a toothpick. Before you run a cycle, you should also spin the wash arms to make sure they don’t accidentally hit dishes – especially if you have large items like casserole dishes or pots in the rack.

Because we’re using our appliances more, it’s important to be mindful of the increased wear and tear we’re placing on them. Nobody wants a full load of dirty dishes and a broken dishwasher to deal with. The typical cost to repair/replace a dishwasher is $100 to $650*.

LOAD IT THOUGHTFULLY: You might think it’s best to cram everything you can into your dishwasher, but don’t do it. If you do, you’ll put increased wear on your appliance, and your dishes are less likely to get clean. For optimum performance, make sure your dishwasher is full but not overflowing – you’ll do fewer loads in the long run and your appliance will last longer.

The next time you get ready to run your dishwasher, keep these maintenance tips in mind so it runs efficiently, and you can help avoid repair costs. KEEP THE FILTER CLEAN: You might not know it, but your dishwasher has a small filter that helps trap food particles and keep your dishes clean. When this filter is clogged or dirty, your dishwasher won’t work at its best – and you’ll likely find some small food particles stuck to your dishes after a wash cycle finish. You should clean your dishwasher’s filter at least once a month. And fortunately, it’s easy to do. USE HOT WATER: When it comes to cleaning dishes, water temperature matters. It might be tempting to run a cycle using warm water to cut energy costs but doing so could set you up for problems. Ideally, the water in your dishwasher should be at least 120 degrees Fahrenheit. If you use water below this temperature, your appliance will have to run longer, and you’ll increase the likelihood of detergent residue building up and affecting performance.

When loading dirty dishes, be sure to scrape off any large pieces of food (like chicken bones) that could cause clogs or damage. These items should go into the trash. Load the dishes with the dirty sides facing toward the center and make sure cups, bowls and pots face downward so the water and detergent can get them clean. MANAGE HARD WATER: Certain areas of the country have water with higher levels of minerals, such as calcium and magnesium, in it. This is called hard water, and it can cause buildup in your appliances, including your dishwasher. If you’re not sure if you have hard water, look for a cloudy film on your clean glassware – that’s a dead giveaway. And if you have hard water deposits on your dishes, you have them inside your appliance, too. To manage this, clean your dishwasher monthly with a descaling product like Affresh or Finish, which are easily found in stores or online.

With so many appliances around your house, it’s easy to forget about your dishwasher. But if you remember CHECK THE SPRAYER ARMS AND NOZZLES: these simple maintenance tips, yours should run better Every dishwasher has wash arms in the bottom that spin and spray water to clean your dishes. To keep your and last longer. If you have any Home Warranty needs, washer performing at its best, check the small nozzles in please reach out to your OneGuard Team. these arms each month or so for food debris and other Shelley Carr | 623-201-2594 | shelley.carr@oneguardhw.com Bre Castro | 623-500-3825 | breanna.castro@oneguardhw.com Pamela Balin | 602-499-5544 | pamela.balin@oneguardhw.com

TODD MENARD’S REAL ESTATE MARKET STATS JULY 2022

Christmas Party Partnered with West USA Cares Annual Casino Night

TICKETS ON SALE STARTING

MONDAY, AUGUST 15 PRICE

$45 PER TICKET "Our team had a blast at the West USA Cares Christmas party. It was nice to mingle with colleagues, rejoice in the holidays, and celebrate the successes of the real estate year. West USA put on an amazing event; the atmosphere, food, and entertainment were topnotch! We will definitely make this an annual tradition. Thanks, West USA Realty!" NICK MONACO ARROWHEAD OFFICE AGENT

FOR MORE

INFORMATION

WESTUSARSVP.COM

M O N DAY

T U E S DAY

01 9:00am - 10:00am / Webinar West USA Weekly Webinar 10:30am - 12:00pm @ NPhx Office West USA Agent Orientation 2:00pm - 2:30pm / Webinar Don’t Do Dat w/Broker Bob Stephens

9:00am - 10:00am / Webinar West USA Weekly Webinar

9:00am - 4:00pm / Zoom ProStart Session 1 - Day 1 of 3 2:00pm - 2:30pm / Webinar Don’t Do Dat w/Broker Bob Stephens

9:00am - 10:00am / Webinar West USA Weekly Webinar

9:00am - 4:00pm / Zoom ProStart Session 2 - Day 1 of 4 2:00pm - 2:30pm / Webinar Don’t Do Dat w/Broker Bob Stephens

9:00am - 10:00am / Webinar West USA Weekly Webinar

2:00pm - 2:30pm / Webinar Don’t Do Dat w/Broker Bob Stephens

29 9:00am - 10:00am / Webinar West USA Weekly Webinar 2:00pm - 2:30pm / Webinar Don’t Do Dat w/Broker Bob Stephens

W E D N E S DAY

9:00am - 11:00am / Webinar Take Flight Series 9:00am - 3:00pm @ NPhx Office REACT - Day 1 1:00pm - 2:00pm / Zoom iFound Agent - Learn Homeowner Drip Campaigns, Instant & Sold Listing Campaigns and more! 3:30pm - 4:30pm @ Surprise Office Ready, Plan, Action

9:00am - 11:00am / Webinar Take Flight Series 9:00am - 12:00pm @ Mesa Office LIVE CE CLASS - High Fiduciary Representation (3Hrs Fair Housing) 9:00am - 4:00pm / Zoom ProStart Session 1 - Day 2 of 3 10:00am - 11:00am @ Goodyear Office Goodyear Office Meeting 1:00pm - 2:00pm / Zoom iFound Agent - Learn Homeowner Drip Campaigns, Instant & Sold Listing Campaigns 1:00pm - 2:30pm @ NPhx Office Homebot 1:00pm - 4:00pm @ Chandler Office LIVE CE CLASS - AAR Pre-Qualification Form & the Agent (3Hrs Contract Law) 3:30pm - 4:30pm @ Surprise Office Ready, Plan, Action

16 9:00am - 11:00am / Webinar Take Flight Series 9:00am - 4:00pm / Zoom ProStart Session 2 - Day 2 of 4 10:00am - 12:00pm @ Palm Valley CC Goodyear Essential Learning 1:00pm - 2:00pm / Zoom iFound Agent - Learn Homeowner Drip Campaigns, Instant & Sold Listing Campaigns and more! 3:30pm - 4:30pm @ Surprise Office Ready, Plan, Action

23 9:00am - 11:00am / Webinar Take Flight Series 9:00am - 12:00pm @ NPhx Office LIVE CE CLASS - Introduction to Divorce Real Estate (3Hrs Legal Issues) 10:00am - 11:00am @ Surprise Office Surprise Office Meeting 11:30am - 1:00pm @ Surprise Office Dog Days of Summer Potluck 1:00pm - 2:00pm / Zoom iFound Agent - Learn Homeowner Drip Campaigns, Instant & Sold Listing Campaigns and more! 1:00pm - 2:00pm @ North Phoenix Office Recession Real Estate Market Update 3:30pm - 4:30pm @ Surprise Office Ready, Plan, Action

03 9:00am - 12:00pm / Zoom FREE REMOTE CE CLASS Duties to Clients and Customers (3Hrs Commissioner Standards) 9:00am - 3:00pm @ NPhx Office REACT - Day 2 9:00am - 10:30am @ Chandler Office Chandler CMA Class 11:00am - 12:00pm @ Chandler Office Team Leader Monthly Mastermind

9:00am - 10:30am @ Chandler Office Coffee, Conversation, & Collaboration 9:00am - 12:00pm / Zoom FREE REMOTE CE CLASS High Fiduciary Representation (3Hrs Fair Housing) 9:00am - 4:00pm / Zoom ProStart Session 1 - Day 3 of 3 10:00am - 11:00am @ Kierland Office Kierland Office Meeting

9:00am - 12:00pm / Zoom FREE REMOTE CE CLASS Master the AAR Listing Contracts (3Hrs Contract Law) 9:00am - 4:00pm / Zoom ProStart Session 2 - Day 3 of 4 10:30am - 11:30am @ Chandler Office Chandler Office Meeting 4:30pm - 6:30pm Surprise Office Happy Hour

9:00am - 12:00pm / Zoom FREE REMOTE CE CLASS The NAR Code and the AZ Law (3Hrs Legal Issues)

AUGUST 2022

T H U R S DAY

F R I DAY

9:00am - 12:00pm / Zoom FREE LIVE CE CLASS Master the AAR Residential Purchase Contract (3Hrs Contract Law) 9:00am - 3:00pm @ NPhx Office REACT - Day 3 10:00am - 11:30am @ Arrowhead Office Arrowhead Office Meeting

9:30am - 11:00am @ NPhx Office 1031 Exchange Class

10:00am - 11:30am @ Surprise Office I Have A Contract

3:30pm - 4:30pm @ Surprise Office Ready, Plan, Action

5:00pm - 7:00pm @ The Hub Grill & Bar Mesa Office Happy Hour