Metas
Naples Florida Real Estate News - 05/18/07
1031 EXCHANGES
If you are using a 1031 exchange to purchase or sell your Naples real estate investment, you should pay particular attention to this post.
The bankruptcy of a national 1031 exchange firm (1031 Tax Group, LLC - “1031 TGâ€) has jeopardized some real estate deals in its filing Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York.Investors who parked their money with 1031 TG and its affiliates now cannot access the funds in transition between a sale and a new acquisition, greatly harming some investors financially. A 1031 exchange, named for its section of the IRS tax code, allows real estate investors to take the profits from the sale of one property and roll them into another property without paying capital gains taxes. While a number of rules must be followed to make the exchange tax-free in the IRS’s eyes, one important caveat is that the money must be held by a third party between selling and buying. It has also highlighted a problem in the like-kind exchange system – a lack of oversight on this legal way to shield capital gains from the IRS. PROPERTY MANAGEMENT
Three consumer and community groups want Gov. Charlie Crist to veto a bill that allows property managers to include a lease clause requiring tenants to pay fees equal to two months’ rent if they move out early.
MORTGAGE RATES
Rates on 30-year mortgages jumped to an average of 6.21 percent – the highest level in five weeks – as investors expressed disappointment that the Federal Reserve continues to worry about inflation threats, according to Freddie Mac’s weekly nationwide survey.
SUBPRIME MORTGAGES
The growing number of mortgage defaults, according to Federal Reserve Chairman Ben Bernanke, won’t seriously hurt the nation’s economy. Bernanke also says that the Fed will do everything possible to crack down on mortgage fraud and abusive lending practices.
Comments
Got something to say?