Tag Archives: creative class

the Creative Class | Tax Time and seeking Home Mortgages

Image-11In Richard Florida’s “Rise of the Creative Class”  he states that human creativity is the rising and defining feature of our economic life today. Creativity is essential to the way we live and work. It is associated with the rise of new work environments, lifestyles, associations and neighborhoods, which in turn are conductive to creative work. Creativity can be both social and individual and often stifled by organizations.  This becomes part of the energy behind the entrepreneurial spirit and desire to pave one’s own path. The creative class is less inspired by money and more inspired by experiences and intrinsic rewards. Having been to recent events and Design Salons in the River Arts to West Asheville to the Five Points neighborhood you will see this “Creative Class’ first hand. The growth of individual creative companies in our little town as it offers the choice for personal freedom and an active and inspired lifestyle.

Given the creative culture of Modern Asheville Real Estate we tend to attract clients who are self-employed entrepreneurs moving here for that lifestyle choice. Unique home buyers looking for properties that showcase their sense of self. These samecordell-house-shipping-container-home_1 folks also have unique challenges when it comes to tax time and qualifying to purchase a home. These self-employed borrowers tend to take a lot of deductions to reduce their taxable income. While this reduces their tax liability, it also reduces their income used to qualify for a mortgage. All loans require self-employed borrowers to provide a minimum of two years recent personal and business tax returns. Anyone who is self- employed will want to show as much income as possible to use as qualifying income for a mortgage. 

Be mindful of which line on your tax return your tax preparer reports income. If you are an owner of a Corporation and/or a Sole Proprietor business the income may be reported on several different lines of your 1040 like the Schedule C, Schedule D or Schedule E. If you pay yourself a regular wage then you may show W2 income as well. When qualifying for a mortgage, in most images-3instances, income from a self-employed borrower will only be used if the income is reported on the same line of the tax return for the past 2-years. If a self-employed borrower reports business income through their Corporation on their Schedule E one year and the next year reports income from the same source through their Sole Proprietor business on a Schedule C, a mortgage banker/broker will most likely not be able to use that income when qualifying the borrower. In most instances, income generated from self-employment needs to be reported on the same tax line for 2-years. If you are applying for a mortgage during tax season, make sure your banker or broker looks at your prepared taxes before filing with the IRS.

Having said all that Kelly and I both have to finish preparing our own similar taxes this weekend. Hopefully, the impending rain will help us stay focused on the task. Cheers to you!

Designing Our Future #10 | A Place for Artists

What could a property boom mean for our creative scene?  I recently
read the below article from the Portland Monthly — my old stomping grounds. I often refer to Asheville as a mini-Portland given the similar cultural vibe which made it an easy transition for me when I finally decided to land here nine years ago now. What was one of the first things I did here? I opened an art studio in the River Arts District and immersed myself in the Asheville art scene. IMG_2311The art and design scene has always had a gravitational pull and remains part of the culture of our collective Modern Asheville Real Estate office, team and community.

The below linked article discusses the issue of what happens to artists and our creative culture given times of unwavering growth. Here is a snippet ~ To many, the moment represented how Portland’s rising cost of living and booming real estate market are scattering its artists—and, in a larger sense, how a shiny, more expensive New Portland is sweeping aside the scruffier, less polished predecessor.Screen Shot 2016-03-05 at 9.31.57 AM

In our office and community we love both the polish and the grit of Asheville and hope our city can strike a balance with the two as we move through unprecedented growth. Please take a moment and read the article here and reflect. What are the considerations for our city as we evolve? Cheers!

Designing Our Future

The Effect of Boomtowns on the Creative CultureScreen Shot 2015-12-16 at 12.09.47 PM

I read this article recently and couldn’t help but consider this for our own town of Asheville. I don’t feel it is necessary to say anything further, but simply suggest you read this article on Austin, Texas. Cheers!