Ron Schmeadick, CRB Co-Owner and Associate Broker, Realty Executives, Eugene, Oregon.

All real estate licensees are not the same. Only real estate licensees who are members of the National Association of REALTORS® are properly called REALTORS®. They proudly display the REALTOR "®" logo on the business card or other marketing and sales literature. REALTORS® are committed to treat all parties to a transaction honestly. REALTORS® subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reports that 84% of home buyers would use the same REALTOR® again.

Why Use a REALTOR®?

Ron Schmeadick, CRB Co-Owner and Associate Broker, Realty Executives, Eugene, Oregon.

Can a real estate agent really help me in buying and selling property?
The answer is YES!

When you're ready to think about buying or selling your property, you need to ask yourself the following questions: Do you have the time, energy, sources of information, and contacts to do the job yourself? If you were one of the 'do-it-your-self' people, would the results be as good or better than they would be if you had professional assistance? Would it have gone smoother? Would it have given you more personal time? Would you have purchased for less, or sold for more, if a real estate agent was involved? 

How do I pay for Refuse Service?

 www.mauicounty.gov/refusecollectiondays.htm

For your information and assistance

Maui Medical Center      808-244-9056    hospital

Motor Vehicle and

Licensing                     808-270-7363

Property Tax office        808-270-7297

Gas Company                808-244-2022   Maui Gas service

Oceanic Time Warner      808-643-2100   cable

Poison Center                808-362-3585

Police                           808-244-6400  NON  EMERGENCY

State tax info                808-894-8500

Voter info                      808-270-7749

Realtors Association

of Maui                         808-873-8585

Refuse Collection            808-270-7452

Report abandoned

vehicle                         808-244-6400

US Post office               800-275-8777

Visitors info                  808-872-3893

Maui Bus                      808-871-4838

Print these numbers if the info assists you.

Humane Society      808-877-3680

IRS  Maui office       808-248-8260

Land Use and Codes 808-270-7373

MACC                     808-242-2787

Maui Electric            808-871-8461

Maui News               808-244-3981

Mayors office           808-270-7855

Wuarantine Info        808-483-7151

Print this one for yourself - for easy reference.

American Red Cross        808-244-0051

Better Business Bureau    877-222-6551

Building Permits              808-270-7250

Cesspool Pumping           808-572-7272

Civil Defense                  808-986-1200   24 hr advisory

Dept Water Supply          808-270-7633

Hawaiian Tel (Phone)       808-643-3456

As illustrated by the three previous posts, sales of property that yield little or no cash can still result in taxable gain. Before selling in a down market, taxpayers and their advisors should first determine the taxpayer's basis in the property to be disposed of and thoroughly discuss upfront the potential tax consequences. Taxpayers can avoid any of the tax consequences noted in the three aforegoing examples by engaging in an IRC1031 Tax deferred exchange.

Taxpayers contemplating an exchange should always consult their tax or legal advisor.

Basis - referred to in these excamples is the original purchase price

Adjusted basis - Basis plus improvements less depreciation.

This post is  add-on  #3 to my recent newsletter. Information compliments of Julie Tumbaga the Vice President, Hawaii Regaional Manager of Orexco1031

jtumbaga@orexco1031.com

Excess Borrowing

If a taxpayer borrows against appreciated equity in their property, tax consequences can also result if the property thereafter declines in value and the taxpayer is forced to sell the property for little or no profit.

eg Taxpayer acquired property A for $1,000,000 paying $200,000 cash and borrowing $800,00. Taxpayer's basis is $1,000,000. During Taxpayer's ownership, the property appreciates in value to $1,400,000 enabling Taxpayer to refinance the existing loan of $800,000 with a new loan of $1,120,000. Taxpayer now sells, but since property values have declined, his selling price is $1,120,000. Although Taxpayer will receive no cash from the sale, he will still have taxable gain of $120,000 ($1,120,000-$1,000,000=$120,000) with combined federal and state taxes of $42,000

This post is  add-on  #1 to my recent newsletter. Information compliments of Julie Tumbaga the Vice President, Hawaii Regaional Manager of Orexco1031

jtumbaga@orexco1031.com

1.Depreciation recapture

If a taxpayer takes depreciation deductions, those deductions reduce the taxpayer's basis, thereby resulting in gain.

e.g.

Taxpayer acquires investment property A for $200,000. Taxpayer's basis is therefore $200,000. During taxpayer's ownership, taxpayer takes $138,500 of depreciation deductions, thereby reducing taxpayer's basis to $61,500. Taxpayer sells Property A for $180,000.  Even though taxpayer sells the property for  $20,000. less than what he originally purchased it for, he still has a taxable gain of $118,500 ($180,000-$61,500=$118,500) which will result in approximately $41,500 in federal and state taxes. This adverse tax result can be avoided by exchanging the property in a tax deferred exchange rather than selling the property.

This post is  add-on  #2 to my recent newsletter. Information compliments of Julie Tumbaga the Vice President, Hawaii Regaional Manager of Orexco1031

jtumbaga@orexco1031.com

Carryover Gain.

If a taxpayer sells property previously acquired in an exchange - at no profit or even at a loss - the taxpayer may still be faced with significant taxable gain.

e.g. Taxpayer originally acquired property A for $20,000. Taxpayer disposed of Property A in a tax deferred exchange for $100,000 and acquired Property B for $150,000 thereby deferring taxes on $80,000 of gain. Taxpayer's adjusted basis in Property B is $70,000 ($150,000 purchase price - $80,000 carryover gain = $70,000). Taxpayer now proposes to sell Property B for the same price as he purchased it for - i.e. $150,000.  Although Taxpayer is not making a profit on this transaction, he will still have significant federal and state taxes of approximately $28,000 on his gain of $80,000.