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Show Misconceptions common with foreclosures & repos Foreclosures, HUDs and bank repossessions are seldom seen in Dav is County, especially in the kind of real estate market we have seen the last several years. The Home Seller by Janet Benzley, GRI & CRS Even in the late 1980s when the market was so depressed, there were fewer here than in other parts of the Salt Lake Valley. Our real estate market seemed to be more stable, which I often point out to buyers who are considering buying in other parts of the metro area. Even so, there are some misconceptions an misinformation about what happens when someone gives a house back to the bank, or takes a capital gain on real property. Laws and IRS rules also change, or if your are ever confronted by a possible foreclosure, or faced with a capital gain, be sure you get competent advice from someone with experience and the latest information, a mistake, if one is made, can be costly for you. u One misconception about a volunthe house back giving tarily instead of going through foreclosure is hat any capital gains that might be realized go away. For instance, you bought a house for $100,000 and later refinanced it for $140,000. You now need to sell, but discover that its maximum market value is still only $140,000. Adding the selling costs to the $140,000 over prices it, and it wont sell. If you price it where it will sell, you will owe more, the existing mortdeed-in-lie- gage, plus closing costs, which means you will have to come to the closing table with extra cash to close. That is a hard pill to swallow, even if you have the cash. You look long and hard at just giving the property back to the bank. Since you arent selling the property, you wont realize any gain. Right? Wrong! If the bank takes the property back, the IRS may consider it debt forgiveness and levy taxes on the entire difference at you tax rate. If the bank cannot sell it for what is owed, they can also pursue you for the difference, plus you may owe the bank for their costs. Not a pretty picture. On the other hand, you can roll over any gain achieved on a personal residence into the next personal residence if purchased within 2 years, or e either side of the sale. A 1031 be must handled exchange strictly by the IRS code and is not discussed here. Lets say the same property sold for $140,000, but the purchase price for the new resitax-fre- dence, including improvements made in the two years resulted in only a $130,000 value. The 50 percent capital gains rate means that you will pay taxes only on $5,000, not the entire amount, and capital gain income tax rates are capped at 28 percent. Knowing some of the advantage and pitfalls of handling short sales or rolling over capital gains is important to realize all of the benefits of owning real estate. To be sure you cover all of the finer points, please seek qualified, competent advice. This column only paints the broad picture, and is not intended to be either legal, tax or financial advice. Business Habitat can heip with emerging businesses Cherie Huber Contributing Writer offers tenants a place to make copies inexpensively and a conference room trade it for part of the rent, that the tenants can use free of Eric Hale says he has always been interested in small businesses and I really enjoys helping people succeed in their business. That being the case, when he found that the building which had housed the Design Mart was for several years was up for sale, he could see the potential. He and his wife, Renae, began what they call Business Habitat at 640 North Main in North Salt Lake. Business HabijtjTiight be called 'the first hortte away from home for emerging businesses. Wejike to do business with people whose businesses have grown just enough so that they are ready to move out of their basement. The emerging business can rent a small office for as little as $117 a month including heat and utilities for a 180 square foot office. The tenant only needs to put in a phone line. At the same time Business Habitat has room for larger businesses too. The largest tenant is Northern Utah Doors which supplies entry and garage doors for the Wasatch front. In addition to small offices with inexpensive rent. Business Habitat charge. And Hale is always looking for new ways to help his tenants succeed in their fledgling businesses. We want to have everything a business could need to get going, Hales said. The building could eventually house as many as 130 tenants There are 35 tenants in the building right now and another 14 spaces are almost ready to be occupied. To completely redo and refurbish the building will take two more years. Then Hale wants to redo the grounds too and make it more attractive. Right now the major concern is getting the building ready, Hale said. But we have plans to do the outside and make it into a very nice looking complex. Right now a tenant can sometimes even work off part of the rent I love barter so I will barter on anything I can get or I will trade for part of the rent. For example, right now I need flooring, remodeling, cleaning maintenance and electrical work. I will take anything that can be used to further this project. I would be happy to Hale said. Business Habitat has already attracted a lot of interesting tenants. For example there is ACT, a trucking broker; Benchmark Systems which repairs computer monitors; CheckStop, a firm which helps businesses collect on bad checks, Curtis Cleaning and Rainbo Carpet Cleaning. In addition several construction companies maintain offices there. Midway Mining sells mining e supplies, Netway offers an service and Shopping Smart operates a business that helps subscribers save on grocery purchases with a bimonthly newsletter. The two story building started out as a warehouse for Baileys Moving and Storage. When the moving business was sold to Bob Linnell, Bailey retained the building and the building became Design Mart for five or six years. Later the building housed Baileys Furniture. The Hales bought the building several yenrs ago and it evolved into Business Habitat. For new businesses which just want an office of their own, this place is ideal, Hale said For more details on Business Habitat call Eric Hale at on-lin- 298-920- 8. Duggar appointed to new IAAO subcommitee post IAAO is educational association. Its mission is to provide leadership in accurate property valuation, property tax administration, and tax policy throughout the world. The IAAO offers courses, workshops and seminars, performs research and provides technical assistance. The IAAOs members subscribe to a non-prof- Appraisal Practice. Five internationally recognized designations offered by the IAAO represents the highest level of achievement in the field: the it, (CAE), Assessment Administration Specialist (AAS), the Residential Evaluation Specialist (RES), the Personal Property Specialist (PPS) and the Cadastral Mapping Specialist (CMS). Dick's Ace Home Center has been honored for its retailing excellence and customer satisfaction at Ace Hardwares all Convention, held Oct. 26-3in Deinei, Colo. Disks Ace Home Center was one of approximately 10!) stores out of the 5.000 which comprise the Ace Hnrdwaie dealer-owne- d coop- The specialized plaque was presented to Dicks Home Center by William A. Loftus, Ace senior vice president of retail operations and marketing, for being named the best Ace dealer in the geographical area served by his Ace retail consultant. It was presented at the convention which is attended by over 3,000 Ace dealers and their staff members. Ace Hardware, a cooperative owned collectively by some 5,000 Ace dealers, honored Dicks Home Center for the stores consistent excellence in customer service and satisfaction, and for practicing high standards of retail excellence. It also attests to their commitment to the Ace 2000 process, whose goal is to have Ace dealers become the best independent hardware, home center, 1 erative to receive this High Perfoimance Retailing Award. For 25 years Dicks has been serving the South Davis area. dedicated employees Thirty-fiv- e take pride in the service they offer. Customer satisfaction is the goal of each employee. Brent and Clint Smith manage the Hardware side with Connie Baker and Marva Randle in the Gift and Bridal Registry. gift and appliance center retailers in the industry by the year 2000. In presenting the award, Loftus said, Dicks Home Center exempliindefies what Ace is all about pendent retailers who know their community and their customers, and who constantly strive to serve those customers better today than they did yesterday. We congratulate them for their commitment to retailing excellence. Founded in the early 1920s, Ace Hardware Corporation is a dealer-owne- d cooperative headquartered in Oak Brook, 111. Wholesale sales for the company in 1994 to its 5,000 retailers reached $2.32 billion, an increase of 15.3 percent over 1993. Ace has over 5,000 stores in all 50 states and 56 foreign countries. SNOW PLOWS MANUFACTURED IN SALT LAKE CITY New State of the Art drive into Quik Hitch allows you to easily attach A detach the plow. No unsightly frame or components remain on front of vehicle. 4 Spring loaded pins and electrical plug is all you fasten. Dual adjustable jsck stands keep plow level for easier drive in. Higher ground clearance than other models. SPREADERS 2420 IN STOCK W. 2100 S. Salt Lake City (801) (800) SUPER WASH HOLIDAY GIVEAWAY $00,000 In Cash and Prizes! I EBflJOTnnm Commission, has recently been appointed to the Representatives Subcommittee of the International Association of Assessing Officers Dicks Ace Home Center honored Certified Assessment Evaluator Code of Ethics and Standards of Professional Conduct and to the Uniform Standards of Professional Helen Duggar, RES, valuation appraiser for the Utah State Tax Neckerchiefs Presented Two Eagle Scout neckerchiefs were presented by the Bountiful Rotary Club at the November meeting Receiving the neckerchiefs were Charlie Brock, son of Danny and Kelly Brock of Bountiful, and Jeff Toone, son of Kent and Susan Toone of Centerville. The Bountiful Rotary Club makes the Eagle Scout neclerchief presentation on the first Thursday each month. RECREATION CENTER 298'6220 X. i c (IAAO). A seven-yea- r member of IAAO, Duggar has earned the associations of designation professional Residential Evaluation Specialist (RES). In addition, she has completed IAAO courses in real property appraisal, the income approach to valuation, assessment administration, and instructor training. Her contributions to the association include serving as board chair, president and vice president of the Utah Chapter and acting as IAAOs western region representative. She has also been chosen to serve as an IAAO professional designation advisor. The Representatives Subcommittee is part of IAAOs Outreach Committee and works to increase and strengthen the associations membership. (BUBBLE) CHILD CARE WEIGHT ROOM GRAND PRIZE A NEW 1996 Ford Ranger C, footer j $ I WATER EXERCISE ! WATER WALKING WATER EXERCISE I WATER WALKLNG ! ! WATER EXERCISE WATER WALKING! GET RID OF THOSE EXTRA POUNDS FROM THE HOLIDAYS. JOIN US FOR OUR WATER EXERCISE CLASSES OR COME DO SOME WATER WALKING ! tnd option may vmy) super wash-- Jg&fgjr ' ' TOKENS MAKE 1 GREAT CHRISTMAS GIFTS! ON SALE NOW 5 FOR $1000 Next to Dairy Queen in Centerville In front of Bowmans in Kaysville Next to Smith Foods In Farmington |