2018 Tax Reform Effects, home Mortgages

Author: Cory Thompson
Date: 1-3-18

First Tax Reform in 31 Years

With 2018 beginning and the first new tax reform since 1986 being passed called "Tax Cuts and Jobs Act" aka  2018 Tax Reform, I was acutely curious how this may affect potential home buyers and the housing market in 2018. So I did some research. In an honest and non-political attempt to inform this is what I discovered... 

Mortgage Interest Deductions Reduced

The most substantial change is that tax deductions for interest paid on mortgages will drop from 1.1 million to 750k. This is only for new loans as existing loans are grandfathered in.  Current homeowners are not affected by this new reform. This does mean that new homebuyers taking loans higher than $750k will only receive tax deductions on interest up to $750k. 

Most local buyers to the New Hanover County and surrounding areas won't be affected or may only be slightly affected since according to Zillow.com the median listing price for New Hanover County is $299k and Wrightsville Beach median listing price comes in at $833k.  The greatest areas affected will be markets with high property values such as New York City and San Francisco where median values are over $1 million. 

Tax Breaks will remain for Home Sellers

Tax breaks for people selling a home still remain.  You will still be able to exclude up to $500k or $250k for single filers on capital gains as long as you have been a resident of the home for 2 of the past 5 years.   

(Disclaimer: this is not a political post. Educational purposes only.)

learning from frank lloyd wright : field trip

By: Cory Thompson

It's a bit cliche to admit that Frank Lloyd Wright might be one of your favorite architects these days. I know this.  But it's hard not to put him high on the list. The man produced so much original work. One can't deny his contributions to the architectural community and his avant-garde ideas towards connecting design to nature. 

Celebrating his 150th Birthday the Museum of Modern Art in New York City presented an exhibit called Frank Lloyd Wright at 150:Unpacking the Archive.  In September I had the opportunity to visit this exhibit along with his Fallingwater House near Pittsburgh PA.  I learned a lot....

The Fallingwater house is one of his best examples of his design philosophy 'organic architecture' which uses design to promote harmony between human habitation and the natural environment.  The way he related this house to the hill, rocks, waterfall and views is the mark of a master.  (I could go into many more amazing details but I wont for the sake of simplicity but you can learn more here: https://www.fallingwater.org/  Unfortunately there was no photography permitted inside but you can take my word for it... It was rich with custom detailing and inspiring space layouts!

The MOMA exhibit presented many of his archived drawings and blueprints. It was interesting to see how he drafted the details for his houses I especially liked seeing his drawings that were drawn to full size - actual scale.  We rarely do that these days (might have to try it soon). I also took note to a few of his working drawings and interesting notes about price and math problems being solved on paper. The penmanship and detail was amazing!

Enjoy these photos from the trip...

-Cory

 

Fallingwater House:

 

MOMA Unpacking Frank Lloyd Wright Archive:

 

Eames Lounge Chair restoration

IMG_0023.PNG

Written by: Cory Thompson

Besides designing homes I also have an interest in the history of design and collecting vintage designer furniture. So naturally I keep my eyes on the furniture section of craigslist, often typing the words 'Eames Herman Miller' into the search bar.  It's more of a procrastination technique while I warm up to start work in the morning.  This has been been my method for several years so I have a sense of the rarity these types of finds locally.  This Authentic 1960's Eames Lounge Chair I picked up for a great deal and only minor structural repair and cushion restoration. 

This is my second Eames Lounge restoration, the first I also found on Craigslist it was broken with severe damage to the shell but came with an ottoman (2012).    These chairs are a pleasure to restore. During the process of disassembly and restoration you see the honesty of the design details.  It's a real lesson on craftsmanship and design.  

Historical Significance:
The design duo, husband and wife, Charles and Ray Eames designed the chair in the early 1950s along with many of their other famous chair designs.  Charles was an architect and Ray was a painter.  They pioneered the use of molded plywood in furniture design. Both are known for their significant contributions to modern architecture and furniture design. They're also known for their work in graphic designfine art and film.  The Eames lounge chair is one of their most historically significant projects.

Screen Shot 2017-08-27 at 9.33.03 AM.png

Chair Facts:

  • This chair was first debuted on the NBC Home Show in 1956 and has been in production since with very little alterations a true testimony to the quality and attention to detail of the Eames design process.
  • It was the first chair that the Eameses designed for a high-end market.  
  • A 1956 rosewood Eames Lounge Chair and ottoman are in the permanent collection of the Museum of Modern Art in New York City.  
  • Produced by Herman Miller furniture company for North American and by Vitra for the European and Middle East markets.

Here's a video I shot of restoration process in my backyard Studio:


Links to restoration products/services I used:

Best Source I could find on history and how to date an Eames Lounge Chair:
https://theolivegreenwindow.blogspot.com/2013/01/eames-lounge-chair.html

Shock Mounts I recommend:
http://humemodernshop.com/seating/eames-lounge/lounge-chair-shock-mount-repair-kit-es670-eames/parts/spares/DIY/herman-miller-furniture/restoration/broken

Cushion repair and zipper replacement:
Great job from these guys at:
Master Craftsman Services, Wilmington, NC
910-793-5945
http://www.mastercraftsmenservices.com/

-Cory Thompson