Archive for the ‘Vacation’ Category

Could this be a location for a 1031 property?

United States Internal Revenue Code (26 U.S.C. § 1031)

Section 1031 of the Internal Revenue Code is most often used in connection with the sale of real property.  If you have been in the real estate market looking for a way to invest money and defer taxes, you may have heard about ‘Like-kind exchanges’ or ‘Tax Deferred Exchanges’ as a possible means to accomplish your goals. These are alternate names for what is commonly known as a 1031 Exchange.

This is a simple transaction that allows you to exchange properties of like-kind and defer the taxes. The transaction is simple, but understanding the process may not be! What property qualifies? Here are a couple of examples of what does not qualify:

  • 1031(e) livestock of different sexes do not qualify for like kind exchange.

  • 1031(h)(1) real property outside the United States and real property located in the United States are not of like kind.

I was surprised about 1031(e). Aren’t you?

What is the difference between a second home and a vacation home? What taxes are being deferred? How long are taxes deferred? How does this benefit me? As a buyer, should I consider entering into an identified 1031 Exchange?  Do qualified exchanges have to be simultaneous? If not, how long do I have to complete a qualified exchange?  

There are many more questions depending on individual circumstances and it is in your best interest to get correct answers to the questions for your individual circumstances rather than depending on an overview to make your decision. Your professional Realtor® will be able to give information, but a Realtor® is only part of the resources you need. Your Realtor® will identify properties for your consideration. Another team member should be a tax attorney and a CPA who are experienced with 1031 Exchanges. They can give answers to how a 1031 Exchange fits into your portfolio, and how a 1031 Exchange fits into your estate.

If you are interested in a 1031 Exchange in on the Charleston Coast, contact me at Mark@MarkandPatriciaFuchs.com, or my business partner, Patricia Fuchs at Patricia@MarkandPatriciaFuchs.com

As part of Dunes Properties of Charleston, Nobody Knows the Charleston Coast Better.

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One of the relaxing places in Mt. Pleasant

Facebook and Twitter offer insights into what’s important to people RIGHT NOW! After reading a number of posts on both, I started to see a pattern that I hadn’t expected: Lots of us are expressing appreciation for what we have around Charleston, SC.

Many posts are about good meals at various local restaurants. There have been a few about the weather and some about what’s the economy doing. Others talk about various activities that people are enjoying and a number that express appreciation for friends, or share family moments and dishwashers that don’t work…lots of people offered suggestions on what to do about that one!

One post talked about driving to the Ravenel Bridge to walk across the bridge (a favorite pastime of many), but the rain there caused her to have to find sunshine on a walk on the beach instead. I thought that one was particularly interesting since it helped me to appreciate that there are options for something as simple as a daily walk!

Patricia and I were driving back from a trip to Hilton Head on Sunday. As we were driving on 17S, we both commented on natural beauty that surrounds us. We decided to move here to for business reasons, but fell in love with the area because of what it offers, the people, the food and the natural beauty that surrounds us everyday. When I read posts that show the appreciation that others have for what surrounds us it makes me smile. People from other areas want to be here. They buy second homes, or take vacations here because of what we get to enjoy everyday.

I have come to appreciate what we have and look forward to enjoying it for a very long time. I hope you do to!

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Palm Seasons on Isle of Palms

In one of my previous blogs I waxed eloquently (OK, maybe not!) about our 26th anniversary. This time I want to tell you about the great week we enjoyed on the Isle of Palms in South Carolina with some of the family. Patricia and I have a fractional ownership in a 5 bedroom residence located at 2 Palm Court on the corner of Palm Blvd. We have use of the property one week out of every quarter and the schedule rotates among the 13 shares so that each owner has access to some of the more favorable weeks during the year. Our friends, Keith and Jill, are also owners and swapped weeks with us. We owe them a great deal of thanks, because the week we had was AWESOME!!!

Our daughter Heather and her husband Haydn with her good friend Carrie and Carrie’s friend Jeremy joined us. So did my brother Terrence and his friend Linda. Oh, and Murphy, Heather and Haydn’s Golden Retriever was there with us. Some came early and left early in the week. Others came early and stayed late. The weather was the best with sunny skies and temps in the 70’s during the day and 50’s at night. Did I mention that the property has a pool and deck off of the main floor, are that it has great views of the Atlantic Ocean from the second floor porch and the porch on the roof? Also, it is a short walk to the beach? Sunny skies, warm temperatures, a pool and a beach…good food, family and friends, did I mention that it was a great week?

There was more to do than I can write about in this short post. We had great meals at 2 Palm Court and a number of local restaurants. We played tennis (well, Jeremy, Terrence, Carrie and Linda did, I was watching the Masters.) Some of us played golf (Haydn, Mark, Carrie and Jeremy.) And a few sun bathed (I watched the Masters.) Sometimes you just need a week like that.

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