Kerry Veach

Section 1031 exchange of the Internal Revenue Code will defer an estimated $3.2 billion in capital gains and recaptured depreciation taxes for individuals and corporations in 2012 according to the Joint Committee on Taxation. The tax deferral is estimated to be $3.7 billion and $4.1 billion in 2013 and 2014 respectively. What do these taxpayers have that you may not?
• Conscious competent investment or commercial realtor, CPA, real estate attorney, title officer or financial advisor who listens and asks questions.
• A clear understanding of the value of a 1031 exchange.
• Real and personal property held for productive use in a business or for investment.
What is the Impact of a 1031 Exchange?
Section 1031 exchange of the of the Internal Revenue Code states, no gain or loss is recognized when property held for productive use in a business or for investment is exchanged for property held for productive use in a business or for investment. Simply put, property either real or personal such as investment rental and commercial property, land or aircraft, vintage cars, precious metals held in a business or for investment is eligible for a tax deferral on the gain triggered when sold given like-kind property is replaced within 180 calendar days.
The tax deferral represents an indefinite, interest free loan until the replacement property is sold or stepped up to heirs upon death, in which case, depending upon the circumstance, may eliminate the deferred tax. The 1031 exchange defers the federal and state capital gains and recaptured depreciation tax that can represent upwards of 40 percent of the sales price. Imagine being given an interest free loan on land with an original purchase price of $150,000 and $100,000 of improvements depreciated over ten years sold with eight percent selling expenses.
State Tax Estimated Tax
Sales Price 300,000 400,000 500,000 700,000
Alabama 5.00 16,109 34,509 52,909 89,709
California 9.55 18,946 41,532 64,118 109,290
Florida 0.00 12,991 26,791 40,591 68,191
Iowa 8.98 18,591 40,653 62,714 106,837
Kansas 6.45 17,013 36,747 56,481 95,949
Kentucky 6.00 16,733 36,053 55,373 94,013
Montana 6.90 17,294 37,442 57,590 97,886
Nebraska 6.84 17,256 37,349 57,442 97,628
W. Virginia 6.50 17,044 36,824 56,604 96,164

The tax deferral is even higher with collectibles given the capital gains rate is 28 percent versus 15 percent. Effective January 1, 2013, the federal capital gains rate is scheduled to increase to 20 percent with an additional 3.8 percent for taxpayers with income greater than $200,000.
What are the 1031 Rules?
There are many. A qualified intermediary is required who cannot be someone or firm you have worked with in the two year period prior to the exchange such as your lawyer, CPA or realtor. There are exceptions to what is known as disqualified persons. The titleholder who sells is the titleholder that buys. The replacement property value must be equal to or greater than the property sold. The exchange must be completed within 180 calendar days of the initial closing. Property must be formally identified to the Qualified Intermediary by the 45th calendar day post-closing. If selling or acquiring from a related party, then there are special rules to follow. The taxpayer cannot pledge, borrow or receive a benefit from the proceeds while they are held in the exchange.
To receive a complimentary eBook on “Ten Reasons Why a 1031 Exchange Makes Sense” either click on the button below or contact our office at 800.227.1031 or andgus@atlas1031.com.

Did you know that you could save big bucks by installing “green” home improvements such as an energy efficient roof and insulation, a geothermal heat pump, energy star windows and/or doors, or a small wind energy system?

Here’s the breakdown:

A small wind energy system consists of a small turbine which gets wired into your home’s electrical grid.  As the propellers turn, the turbine produces kinetic energy which is then converted into electricity.  This nifty little contraption could lower your electric bill by at least 50%, or $600/year, and can generate 30% – 80% of the electricity needed for an entire household.  It’s also eligible for a 30% tax credit for the total cost of equipment and installation.  A wind turbine is a good investment for households which average at least $150/month in electric bills.  And of course, it doesn’t hurt to live in an area that produces relatively good winds.

Don’t think that because it’s called a geothermal heat pump, it only produces heat.  In fact, a geothermal heat pump serves as a replacement for the more traditional HVAC system.  On top of that, installing one makes you eligible for a 30% tax credit.  And because it uses 25% – 50% less electricity than a traditional HVAC system, so you can save about $600/year on heating and cooling costs.

Anyone who has ever lived in a drafty home understands the importance of good windows and doors.  For storm door or standard door replacements, you can claim up to a $500 tax credit.  For storm windows or standard window replacements, you can claim up to a $200 tax credit.  For skylight replacements, you can also claim up to $200.  The only pitfall to this is that 2011 was the last year you could install to qualify for these credits.

Of course, energy efficient windows and doors will perform much better in a well insulated house.  If you added insulation to your home in 2011, you could qualify for a tax credit up to $500.

If you installed a new heat efficient metal or asphalt roof to your house in 2011, then you could qualify for a $500 tax credit.

And last, but certainly not least on the list, is a non-solar energy efficient water heater.  If you installed on of these in 2011, you can qualify for up to a $300 tax credit on equipment and installation.

To determine if the system or systems you installed qualify for the above mentioned credits, visit the Energy Star Website.  Make sure you save, or have saved, all receipts and certifications for equipment and installations.  And finally, file Form 5695 with your tax returns this year.

If you are thinking of selling or buying a home in the Northwest Region of Florida, contact The Veach Team for a complimentary consultation.

Information Source: http://www.houselogic.com/green-living/

One of the basic principles of universal design, also called “ageless design,” is that it makes homes more practical and safer for everyone — not just the elderly or people with limited mobility. Even if you’re not a professional designer, you can certainly incorporate this smart thinking into your own home. If you’re remodeling or simply adding a few upgrades, be sure to keep universal design features in mind. Here are some simple (and great!) ideas from HouseLogic for getting started:

Replace doorknobs with lever-style handles. Doorknobs require lots of dexterity and torque to open; with levers you simply press and go. Imagine an emergency situation when everyone, including small kids, needs to exit fast: A lever handle is a safe, foolproof way to open a door. Levers are also attractive, and can contribute to the value of your home. A standard interior passage door lever in a satin nickel finish costs about $20; you’ll pay $25 to $30 for a lockable lever set for your bath or bedroom.

Replace toggle light switches with rocker-style switches. Rocker switches feature a big on/off plate that you can operate with a finger, a knuckle, or even your elbow if necessary (great if you’re carrying a laundry basket or bags of groceries!). Rocker switches are good-looking, too. Conventional toggle switches get dirt and grime embedded in them after a couple of years; no such problems with rocker switches! You’ll pay $2 for a single-pole rocker switch, up to $10 for multiple switch sets.

Anti-scald devices for your bathroom prevent water from reaching unsafe temperatures. An anti-scald shower head will reduce water flow to a trickle if the water gets too hot. An anti-scald faucet device replaces your faucet aerator and also reduces hot water flow.

Motion sensor light controls add light when and where you need it. They come in a variety of styles and simple technologies. Just stick plug-in sensors into existing receptacles, then plug your table or floor lamps into them. When the sensor detects motion, it turns on the light.

If you’re thinking of buying or selling a home in Panama City Beach, Destin or anywhere in the area—then the Veach Team is prepared to help you find the Florida home of your dreams or the investment property that will put your money to work for you. Contact us today, and let us show you why “Life is a Beach” here in beautiful Destin! And don’t forget to “LIKE” us on Facebook and Twitter – we’d love to talk with you.

I have been thinking about ways to educate readers, so they will be able to make more informed real estate decisions in 2012.  Sometimes when opportunities are plentiful as they are right now, and for the foreseeable future, it can be as difficult as it is when you have to dig around to find favorable circumstances.

This was the case a few years back.  Things were hard then, and many jumped on the chance to be a first-time homebuyer by taking advantage of the Housing and Recovery Act of 2008.

Let’s say you were one of those first-time homebuyers who took advantage of the Recovery Act of 2008.  Well, it’s February, 2012—now what?   It’s past time to begin paying back this no-interest loan—right?  In fact, if you purchased your home in 2008, the first installments were due in the 2010 income tax year.

But wait a minute; in 2009 the American Recovery and Reinvestment Act of 2009 was initiated expanding the first-time homebuyer credit from the original $7,500 to $8,000.  This was aimed at purchases being made during 2009, and before, December 1st of that year.

Then, later in 2009 the Worker, Homeownership and Business Assistance Act of 2009 extended eligibility to taxpayers who had binding contracts to purchase a home before May 1, 2010 and could close on or before July 1, 2010.

Then, the Homebuyer Assistance and Improvement Act of 2010, which was enacted on July 2, 2010, extended that closing date (of July 1, 2010) to September 30, 2010.

If you purchased your home in 2009, you do not have to pay the government back as long as you live in the home (as your primary residence) for at least three years from the date you closed on the loan.

Since then,  it seems that the IRS has released the First-Time Homebuyer Credit Lookup Tool   to help you figure out how much you owe; what, if anything, you owe; how to pay it back and when you have to finish paying it back.

Therefore, I suggest you take a look at the DOT form 5405 along with the instructions for filling out the form, and then take a nap to rest, and let all this digest.

Then, if you still don’t understand any of it, like most of the rest of us——or if you have questions about your FTHBC account, call the FTHBC toll free number at 1-800-919-0352. “It’s the fastest way to get your questions answered,” or so they say.

However, if you are at all ready to move ahead, and your head (pun intended) is in the right place, then you are staring perfect-timing in the face (no rhyme intended)!  You can upgrade to a better home or invest in rental property here on the Emerald Coast, or both.

In a truly remarkable article titled, “Buy a House or Bury Your Money?” Robert Freedman has hit the proverbial nail on the head, if you will, when he so eloquently reports on the difference between property values and interest rates.

There are plenty of ways, when dealing with a really good lender, to upgrade your home and come out ahead while values are moving up and rates are holding.

If you are thinking of buying or selling a home in Panama City Beach, Destin or anywhere in the area—then the Veach Team is prepared to help you find the Florida home of your dreams or the investment property that will put your money to work for you. Contact us today, and let us show you why “Life is a Beach” here in beautiful Destin! And don’t forget to “LIKE” us on Facebook and Twitter – we’d love to talk with you.

The joy of Christmas is in the air, and the day itself is nearly here! The malls are full of shoppers, as expected—but wait! There are some other shoppers out there, and they are buying too! All over the country news is trickling in with real estate numbers higher than expected, and for sure—they are higher than this time last year!

Are you one of those savvy buyers taking advantage of the amazing real estate deals to be had right now? I sure hope so because at this rate, with home values rising, and properties moving, you sure would not want to miss your chance by spending your money in a mall when it could be providing you and your family a dream home by the first of 2012!

Mortgage rates are at an all-time low. As I write this post, a 30-year fixed mortgage can be had for a record low of 3.91% for buyers with good credit. December is the second month in a row that these lower, affordable rates have pushed sales up. Do not wait around thinking it will last forever…it won’t!

If you’re thinking of buying or selling a home in Panama City Beach or Destin, the Veach Team is prepared to help you find the Florida home of your dreams. Contact us today, and let us show you why “Life is a Beach” here in beautiful Destin! And don’t forget to “LIKE” us on Facebook – we’d love to talk with you.

Folks, have you heard the news? Our real estate market is increasing in value! In its December 2011 issue, Money Magazine, under the REAL ESTATE category, there is an article called “Markets That Moved the Most.” The article stated that while some areas are still searching for bottom, others are starting to bounce back, and out of the five cities listed under the biggest home value increases in the nation, Destin, Florida, was #4 with a one-year increase in value of 2.9%.

There are some terrific deals to be had here on the Emerald Coast, and it is one of the greatest areas in the world to live–so if you are thinking of buying or selling a home in Destin, or anywhere in the area, the Veach Team is prepared to help you find the Florida home of your dreams.

ReMax Southern Realty is more than just a real estate company. Each of our agents are dedicated to providing you with the support and services you expect in order to achieve your goal of selling your home or buying your new home.

Vacation rentals are also plentiful in the area. Why not come up for Christmas or the week after and look around? You will find yourself not wanting to leave—I guarantee it!

There has never been a better time to own real estate. Rates are down, values are increasing and the economic outlook for 2012 is good. There are those who would like you to see it otherwise, but for those of you who believe in our country and our way of life, you know, and I know, that you can’t keep an American down for long. Optimism and hard work is in our blood—and it has been from the start!

Contact us today, and let us show you why “Life is a Beach” here in beautiful Destin! And don’t forget to “LIKE” us on Facebook – we’d love to talk with you.

Christmas lights can be simple displays erected by northwest Florida home owners to show good cheer, or million-bulb light-apaloozas that draw gawkers from near and far. Courtesy of HouseLogic, here are some tips on how to get the most from — and spend the least on — your holiday display.

Safety first. Emergency rooms are filled with home owners who lose fights with their holiday lights and fall off ladders or suffer electric shocks. To avoid the holiday black and blues, never hang lights solo; instead, work with a partner who holds the ladder. Also, avoid climbing on roofs after rain or snow.

Unpack carefully. Lights break and glass cuts. So unpack your lights gingerly, looking for and replacing broken bulbs along the way.

Extension cords are your friends. Splurge on heavy-duty extension cords that are UL-listed for outdoor use. To avoid overloading, only link five strings of lights together before plugging into an extension cord.

LEDs cost less to light. LED Christmas lights use roughly 70% to 90% less energy and last up to 10 times longer than incandescent bulbs. You can safely connect many more LED light strings than incandescents. Downside: Some think they don’t burn as brightly as incandescent bulbs.

Solar lights cost nothing to run. Solar Christmas lights are roughly four times more expensive to buy than LEDs, but they cost nothing to run. They’re a bright-burning, green alternative.

Dismantle lights sooner than later. Sun, wind, and rain all take their toll on Christmas lights. To extend the life of lights, take them down immediately after the holidays. The longer you leave the up, the sooner you’ll have to replace them.

Plan next year’s display on Dec. 26. Shop the after-Christmas sales to get the best prices on lights and blowups that you can proudly display next year. Stock up on your favorite lights so you’ll have spares when you need them (and after they’re discontinued).

Permanent attachments save time. If you know you’ll always hang lights from eaves, install permanent light clips ($13 for 75 clips) that will save you hanging time each year. You’ll get a couple/three years out of the clips before sun eats the plastic.

Find those blueprints. Instead of guessing how many light strings you’ll need, or measuring with a tape, dig up your house blueprints or house location drawings (probably with your closing papers) and use those measurements as a guide.

Store them in a ball. It sounds counter-intuitive, but the best way to store lights is to ball them up. Wrap five times in one direction, then turn the ball 90 degrees and repeat. Store your light balls in cardboard boxes, rather than in plastic bags: Cardboard absorbs residual moisture and extends the life of your lights.

If you’re thinking of buying or selling a home in Panama City Beach or Destin, the Veach Team is prepared to help you find the Florida home of your dreams. Contact us today, and let us show you why “Life is a Beach” here in beautiful Destin! And don’t forget to “LIKE” us on Facebook – we’d love to talk with you.

Great food, family gatherings, football—Thanksgiving certainly was a day to be thankful for all of our blessings here in the greatest country in the world—the USA!

Thanksgiving is a wonderful tradition in our country, and it brings all of us here on the Veach Team to a center point: Gratitude!

Officially one of our country’s annual traditions since 1863, it was decided by President Abraham Lincoln that each November we would spend a day giving thanks for our blessings. But it does not now, nor has it ever, come to us without a cost, and that is where we are focusing—on our troops.

The impending withdrawal of many of our troops from the Middle East gives us cause to stop and consider the sacrifices these men and women have made for the freedoms we all enjoy. It is imperative that each of us think about the various ways we can make their re-entry into mainstream society as seamless as possible.

They will be coming back to return to their civilian lives. They will need homes and jobs, and we want to be ready to make sure those choosing to live and raise their families on the Emerald Coast find the exact right place to live from Pensacola to Port St.Joe, or anywhere in between.

VA loans are mortgage loans that are guaranteed by the US Department of Veterans Affairs, and this is the way to go for military members who are eligible. To get started, veterans will need a Certificate of Eligibility (COE). It is wise to have the process underway while looking for the perfect home.

Buying a home is an important decision—Re/Max Southern Realty works with veterans and their families to find the best fit both financially and with your specifications in mind. In addition, we stand ready to educate you on these loans and to guide you in getting with the right people who can help you get approved.

If you’re thinking of buying or selling a home in Panama City Beach or Destin, the Veach Team is prepared to help you find the Florida home of your dreams. Contact us today, and let us show you why “Life is a Beach” here in beautiful Destin! And don’t forget to “LIKE” us on Facebook – we’d love to talk with you.

OK, OK…so we’re not having a race for land here on the Emerald Coast like they did back in 1893. We are not holding a race where everyone lines up to stake their claim, but we are experiencing some of the same vigorous enthusiasm Americans have always had when it comes to vthe American dream of owning your own home.

After all, when you pay rent—it is a consumer expense. The money, in effect, is gone, and not only that, but in a mere thirty days—you have to do it all over again . . .

Do you need something to help you move off the fence? Try this: as people turn to renting, rentals become scarce, and rents go up! The very thought of it is kind of like trying to swallow bad tasting medicine, isn’t it?

Work on yourself! Get hot to buy and go for it . . .

At some point, a decision has to be made regarding long-term housing for you and your family, and there has never been a better time than now–when rates are at an all-time low and bargains are at a premium.

Think equity instead of consumer spending . . .

The housing industry in our country has suffered set-backs before, and it ALWAYS comes back. It is already coming back this time, and it is not too late to get yours.

You would not think of trying to do surgery on yourself, fix your own teeth, or be your own lawyer—so don’t try to be your own Real Estate Agent! Let us do what we do best—help you locate your piece of paradise without the hassles of the race for land.

If you’re thinking of buying or selling a home in Panama City Beach or Destin, the Veach Team is prepared to help you find the Florida home of your dreams. Contact us today, and let us show you why “Life is a Beach” here in beautiful Destin! And don’t forget to “LIKE” us on Facebook – we’d love to talk with you.

I was thinking the other day about when I first retired from the U.S. Coast Guard as an Engineer after serving more than twenty years. Many people don’t realize that the US Coast Guard is the oldest continuous seagoing service in the history of the United States.

We can all be proud of the men and women serving in this branch of our military. They enforce our Maritime Laws, protect our coast and coastal environment, operate ports and waterways, provide port security, and they are ever ready to defend our maritime borders and conduct safety and rescue for those in trouble.

I started out in the Coast Guard as an enlisted man, subject to more rules and regulations than I ever knew existed. I was daily confronted with new and more challenging disciplines, and since Coast Guard training is taught by professionals who are experienced and have the best possible skills—I learned from them to be a model to others as I went along.

My USCG training proved to be extremely valuable when I launched my real estate career. I won’t say it wasn’t daunting at first, because it was. But as I went along, I relied on my background of discipline and willingness to learn. I consistently applied the things I was told about the Real Estate business by those who were already professional Realtors®, and I found that it didn’t take long before things began to happen for me.

I first became familiar with serious responsibility in the military—and I have honed those skills as I developed my Real Estate career. The best advice I can ever offer to anyone entering the field of real estate is to be prepared to listen, to do – and then to go back and listen some more. Let what you learn from the veterans be the fuel you need to propel yourself ahead, and always be on purpose.

If you’re thinking of buying or selling a home in Panama City Beach or Destin, the Veach Team is prepared to help you find the Florida home of your dreams. Contact us today, and let us show you why “Life is a Beach” here in beautiful Destin! And don’t forget to “LIKE” us on Facebook – we’d love to talk with you.