Monthly Archives: July 2014

exchange1031 Tax Deferred Exchanges have been a tool that savvy real estate investors and business owners who hold real estate to operate their business from use to defer capital gain taxes when they sell property and “exchange” it for another, or many others, as the case may be.  The basic theory behind such exchanges is pretty simple: encourage the property owner to grow its business or holdings, which in the long run helps us all, without having to stagnate and not grow for fear of paying those capital gains taxes that we all dread.

Here’s an example of a typical exchange that even the novice investor or start-up company can benefit from.  Over the past decade of hard work and sweat equity, Joe the Plumber has built a nice portfolio of five multi-family homes in various towns across the state.  But Joe’s wife wants him to spend more time with her and the kids and less time running around to these various properties making repairs and tending to tenant issues.  His Ford F150 is getting a little tired too from all those extra miles!  Joe, however, fears the huge capital gains tax bill that will come if he sells these properties and puts the money in the bank, thereby eating up all of his accumulated sweat equity.  1031 to the rescue!  Because a 1031 Tax Deferred Exchange is available to Joe, he can now “exchange out” of the several residential buildings he has scattered about the state (these are referred to as “relinquished” properties) and buy that desirable single building containing eighteen two bedroom units or that strip mall (called the “replacement” property) he’s had his eye on.

Don’t think that any good government program will come without rules–there are some basic rules that need to be followed.  A typical exchange must be completed within 180 days (approximately six months) with the replacement property you’d like to purchase identified by midnight of the 45th day after closing on the sale of the relinquished property.  So Joe can now sell all the scattered multi-family buildings and purchase the single larger building, putting all of the proceeds of those sales into the transaction, without paying a single penny of capital gain taxes, preserving 100% of his equity.

And it doesn’t stop there.  Let’s say Joe has had his eye on that special building and it’s finally come up for sale, but he still has all those other properties to sell before he can benefit from an exchange.  A “reverse exchange” allows Joe (who’s got super credit and a commercial bank waiting in the wings willing to lend on the new building) to purchase the replacement property before closing on the sale of the relinquished properties.  In this example, Joe does not need to deal with the 45 day identification rule.  For all you late night infomercial fans, “But wait, there’s more!”–there are still other options for Joe to make his dream come true: the replacement property parked option, the relinquished property parked alternative, the partial exchange and the reverse-improvement exchange.

In order to complete any successful exchange, the services of a “Qualified Intermediary” are required.  The QI is that person or entity that will hold the proceeds of the sale, because Joe cannot actually touch or receive the money from his sale that will be rolled into the acquisition of the new property.  Once the proceeds touch his hands, even for a day, the tax man cometh.

Thinking of doing an exchange?  Well, think fast, since more often than not, all good things come to an end.  There is word on the street that our friends on Capitol Hill are seriously considering doing away with 1031 Tax Deferred Exchanges sooner rather than later.  But for now, if you do want to complete an exchange, be sure to contact a lawyer experienced in handling exchanges who can provide you with specific legal advice, a CPA who can provide solid tax advice, and finally, retain a Qualified Intermediary that has specific security measures in place to protect the funds that they will be holding on your behalf (oddly enough, there is no entity at the Federal level that oversees or regulates QI’s and how the proceeds are to be invested and kept safe) and who will facilitate the exchange for you.

Tedesco headshotAbout the author: Robert W. Tedesco, principal and founder of Tedesco Law Offices, P.C., is a Woburn-based Attorney with twenty-five years of experience handling all types of transactional matters including representing buyers, sellers, exchangers and lenders in residential and commercial real estate transactions.  He also works with clients assisting in the sale and acquisition of small businesses, property management and tenant matters, condominium conversion, as well as estate planning and settlement.  His offices are located at 88 Main Street, Woburn, Massachusetts and can be reached at:  781-933-9293 or via email at: rwt@tedescolawoffices.com.   You can check out his website at: www.tedescolawoffices.com.

 


Watching our tomato plants growing since this spring and feels like it has been forever since we saw that first green tomato appear  – and all of a sudden they are all about to ripen at once.

Feeling a little overwhelmed with how many tomatoes we are about to pick  – here are a couple ideas I have found to use them for.

Caprese Salad –  A summer BBQ Favorite! A simple salad, made of sliced fresh mozzarella, tomatoes and basil, seasoned with salt, and olive oil.

Grill Them Up – Perfect for a salad or as a summer appetizer!  Just marinate your tomatoes and slightly char them on the grill.

Home Made Salsa – Perfect way to use other stuff from the garden!!  You can serve this right away or jar the salsa and put away to open one winter afternoon – while the snow is falling grab a bag of chips and open the fresh taste of summer!

Make Homemade Spaghetti Sauce – super simple and again serve right away or jar to use all winter long!

Chill out with Homemade Gazpacho – this cold soup is perfect to whip up on a hot summer day!!!

Bruschetta – impress your guest with a homemade Bruschetta to serve as an appetizer.

Lastly one of my summer time favorites is a BLT  – make a good one, with thick, applewood-smoked bacon, sourdough bread, fresh lettuce, mayonnaise and plenty of tomato.

Enjoy all those tomatoes!

SarahAbout the author: Sarah Ferguson is a Realtor at RE/MAX Legacy and loves growing tomaotes. You can contact her directly through her website www.sarahfergusonre.com


 

woburnfun

Woburn is not only a great town to live in, but it is conveniently located. Also it is such a good town to raise your family, with activities all summer long including , pools and parks.

bookworm.jpg

Bookworm Wednesday is back again, what a great way to motivate your kid to read. No efforts and its free. Every Wednesday at 10:00 a.m. from July 9th – August 13th

Just bring a book report* with you to the select Bookworm Wednesdays movie and that’s your price of admission!
 Download the Book Report  Also check the Woburn Library for more reading challenges.

 Fun Runs

Fun Runs are just another way to keep your child healthy Join the Recreation center for a .8 Mile race for children up to the age of 12 starts at 6:15 or a 2.5 mile race starts at 6:40 Fun Runs are free of charge. All children who participate will receive a ribbon!!

Meet at the Horn pond parking lots every Thursday from July 10th – August 14th.  It is recommend to get there early it does get crowded sometimes.

 Free Craft Program!

An enjoyable place for children to make fun arts & crafts projects with our instructors. There is a different craft offered each afternoon. You do not need to be registered for this program.

This Program begins on June 25th and runs until August 21
Summer 2013 Schedule
Monday    1:30 – 3:30    Library Park……….
Tuesday   1:30 – 3:30    Green Street Pool
Wednesday 1:30 – 3:30   North Woburn Pool
Thursday 1:30 – 3:30    East Woburn Pool

4 Week Movie Series @ Library Park

There’s no better way to spend a cool summer night in Woburn than enjoying a great movie in the great outdoors. Consider joining us under the stars on Tuesday nights recommended that you arrive a little early so that everyone will be able to get settled before the movie starts. Bring your own snacks/juice and money for ice cream man. Don’t forget your lawn chairs and blankets for the family. For a listing of the movies visit www.woburnrec.com in July

 Family Night & Outdoor Library Park

Sponsored by the Woburn Rotary Club Food will be served starting at 6:00 Children’s Concert: 6:30 – 7:30 Outdoor Movie: 8:15 or 8:30 depends on sunset Other activities include: Moonwalk, Fire Safety House, and other Children’s Games. Also check the Woburn Library for similar activities.

Mayor’s Field Day August 21st

@ Library Park
11:00 – 2:00
Come celebrate the end of the summer with the Recreation Department!!!
There will be many fun – filled activities and events for children such as a dunk tank, moonwalk, magician, face painting, along with great onstage performances. *Rain Date August 22nd

Hope you enjoy living in Woburn and look for more fall activities at the rec center and all the sports activities possible. Have a great summer

JanineAbout the author: Janine Elkhoury is a Realtor at RE/MAX Legacy and a resident of Woburn.  You can learn more about her on her website www.bostonrelocationagent.com

 


DehumidifierIn an earlier blog, I wrote about the importance of running a humidifier in the winter time. (Benefits of a Humidifier)  The flip side of that is the importance of running a dehumidifier in the summer time.  A dehumidifier cools the ambient air in the environment, usually basement areas.   In the process of cooling the air, moisture absorbed in the air is condensed into a collection reservoir.   The reservoir can have an automatic overflow shut-off or can be configured to flow into a drain or a sump.  It can also be manually emptied when full.

The question to ask is why do I need it?  In the typical basement which is below grade, there are several factors at play.  The ground contains moisture and the old stone, block or cement foundations are porous and allow moisture into the basement.  Excess moisture creates dampness, and could lead to mold or mildew.  Any items of value such as furniture or books will eventually be damaged or destroyed by the moisture.  Your basement will also smell damp and the odor will carry through your home.

Another factor is relative humidity or dew point as referred to by your local weatherperson.  On humid days and in cool basements, dew point is important.  A high dew point will result in moisture condensing on the cool basement walls, causing the same potential condition identified above.   Dew point is the temperature at which saturated air will condense on a surface.  A lower dew point indicates there is less moisture in the air.

A dehumidifier can be the solution.  It runs on electricity and works like a refrigerator or an air conditioner.  Coils with gas inside are cooled and provide a surface for the “wet” air to pass over.   The moisture is extracted out of the air and condensed on the cold coils.  Water drips into a collection reservoir and you would be surprised at how quickly it fills up.  If the water is not automatically drained out, then it would be best to have a device that automatically shuts off when the reservoir is full.  Otherwise the excess water will spill over onto the floor of the basement.

If a home has no basement or is built on a slab, you may also need a dehumidifier as high humidity will condense on the cool floor.

Prices for effective dehumidifiers are typically between $150 and $350.  Buying a recognized brand name is wise as the company will hopefully be there if there is a problem or a repair needed.

We tend to hang onto things longer and when we run out of space, we will store things in the basement.  If something is of value, either sentimental or monetary, you should protect its value by using a dehumidifier.  A dehumidifier is a wise investment.

Roland Crop 2011 jpeg (1)About the author: Roland Spadafora is one of the Broker Owners at RE/MAX Legacy.  He can be contacted through his website at www.spadaforateam.com