Latest Event Updates
Six Easy Steps to a 1031 Exchange
With nearly one-third of homes sold in the U.S. today purchased by investors and second home buyers, we should all know more about 1031 Exchanges. Section 1031 of the Internal Revenue Code allows you to roll the gain from the sale of your old property over to your new property without paying tax.
To accomplish this roll-over, there are six easy steps you must follow;
1. Both the old property you are selling and the new property you are buying must be held for investment. This requirement is defined quite broadly; therefore for example, you may sell bare land and buy an apartment building, sell an office building to buy a vacation home, or sell a warehouse to buy bare land. Your personal residence is not considered investment property. Typically, you have to hold each of these properties for a year and a day to qualify for a 1031 exchange.
2. From the day you close the sale of your old property, you have 45 days to complete a list of properties you want to buy. The list should identify the property clearly enough that an IRS agent could go directly to the property using your written description. In most situations, you want to put three properties or less on this list.
3. From the day you close the sale of your old property, you have 180 days to close on the purchase of one or more of the properties from your 45 day list. Whatever property you buy has to be on your 45 day list. Both the 45 and 180 day time frames are cast in concrete—there are no exceptions or extensions.
4. You must not touch the money during the time between the sale of your old property and the purchase of your new property. By law, you must use an independent third party, called a Qualified Intermediary, to hold your proceeds. The Qualified Intermediary also will prepare the legal documents required to link together, as a qualified exchange, the sale of the old property and the purchase of the new property.
5. You must take title to the new property in exactly the same way as you held title to the old property. If you held the old property as Fred Jones, you cannot buy the new property as Jones Investment Corporation. There are some exceptions to this rule for situations like a revocable living trust.
6. In order to defer 100% of the capital gains tax, you must meet two requirements. First, you must buy a property equal or higher in value than the one you sold. Second, you must reinvest all of the proceeds from the sale into the new property.
To complete a 1031 exchange in the greater Temecula Valley please give us a call at 951-522-0518 or firstname.lastname@example.org We’re also available to answer any questions we can!
All information deemed reliable but not guaranteed. For tax or investment advice we suggest you contact an attorney or certified tax accountant.
California Association of Realtors (CAR) has been fighting to protect underwater homeowners from facing state income tax on debt forgiven in a short sale.
Recently CAR received clarification from the IRS and the Franchise Tax Board that debt forgiven in a short sale is not income. Therefore, CAR will not be pursuing the short sale debt forgiveness provisions in SB 30.
Thanks very much to thousands of REALTORS who fought for their clients by responding to this issue. And yes, we were 2 of them.
A lot has changed on the short sale front. In fact many of the lenders are NOT even requiring that you prove a financial hardship in order to get your short sale approved. For a private and confidential consultation at our office for what steps to take to short sale your home, call or email April Greer at (951) 522-0518 or email@example.com
I was able to locate 6 FSBO’s in Temecula on Zillow and 2 on the For Sale By Owner site. I’m not sure this is the recipe for exposing your property to every potential Buyer so that the Buyer that will pay you the most will make an offer. On top of that I personally wouldn’t file a tax return in this state without professional assistance, let alone my largest asset. All that being said…here is some food for thought if you are thinking of selling your home yourself-
Questions To Consider:
Do I have the time, energy, know how, and ability to devote a full forced effort to sell my home?
Am I prepared to deal with an onslaught of buyers who perceive FSBO’s as targets for low ball or scam offers?
Am I offering financing options to the buyer? Am I prepared to answer questions about financing?
Do I fully understand the legal requirements in California?
Do I have the capability of handling the legal contracts, agreements and any disputes with buyers?
Have I contacted the necessary professionals-title, inspector (home and pest), and escrow company?
If you are unsure about any aspect of these questions, you may be well advised to hire a professional. We would love the opportunity to meet with you and present our marketing strategy to obtain top dollar for your property.
If you aren’t convinced that hiring a professional is worth our fee, we will be happy to provide you a list of requirements and the documents necessary to complete your sale on your own.
We look forward to hearing from you at firstname.lastname@example.org or 951-522-0518,
Gary and April Greer
At the end of 2013 35+ Temecula homes expired unsold.
In such a great marketplace you might ask yourself…WHY?
Well here are the top 10 reasons your property may not have sold:
- The price was too high and no adjustments were made (or if they were made-they were made too late).
- There were no pictures or too few pictures to inspire interest.
- The pictures were terrible.
- The property specifics were not filled out correctly or incomplete.
- Your showing instructions were not clear or too restrictive.
- There was no lockbox or ease of access.
- Your agent didn’t answer or return calls in a timely manner.
- Your commission offer was not enticing or competitive.
- Your property’s location or condition is not desirable at the price listed.
- You did not prepare well for showings.
I could probably go to 20 but we’ll stop at 10.
If you would like a professional real estate team to re-evaluate your property to maximize it’s exposure to ready buyers in the marketplace…please give us a call or drop us an email at 951-522-0518 or email@example.com
Custom Home Lot
5 + / – ACRES in Temecula Wine Country
Gentle Topography, WATER METER IN
Great Useable Property
Fire Hydrant Along Property Line
For More Detailed Information
Call Toll Free Recording
(801) 494-8381 EXT 1676548
You can also email us at firstname.lastname@example.org or call us at 951-522-0518.
FHA has announced their 2014 loan limits.
Riverside County (our area) is getting quite the cut.
We’re going from $ 500,000 to $ 355,350. Wow.
Read more details and see the new limits by county at Brad Yzerman’s site here. Brad is a local lending expert that has successfully closed several loans for our clients.
NEED HELP WITH YOUR TEMECULA VALLEY REAL ESTATE? GIVE US A CALL (951) 522-0518 OR email@example.com
The FHFA (Federal Housing Finance Agency) recently announced that conforming loan limits will remain at $417,000!
A quiet battle was waged within the industry after the announcement that they were considering reducing the loan limits. This would have made it more difficult for borrowers to obtain loans on properties in some areas. So this is great news. Here is an excerpt from the announcement by CAR( California Association of Realtors):
“C.A.R. applauds the FHFA for keeping with the law and retaining the existing Fannie Mae and Freddie Mac conforming loan limits. The FHFA recognizes that home prices have rebounded in California, especially in the high-cost areas, where lowering the loan limits would have reversed the housing recovery. Retaining the higher loan limits is critical to providing liquidity in today’s housing market and is essential to a full housing recovery.
Earlier this year, the FHFA announced its intention of lowering the loan limits. Since then, C.A.R. and the NATIONAL ASSOCIATION OF REALTORS® (NAR) aggressively fought to prevent a reduction in the loan limits. C.A.R. and NAR both have long advocated for making higher conforming loan limits permanent, and as a result of our combined efforts, Congress made permanent the maximum conforming loan limits at $625,500.”
Need help with your Temecula Valley Real Estate? Contact us at 951-522-0518 or at firstname.lastname@example.org