Testimonials:

To whom it may concern.
My wife and I have enjoyed the services provided by Andrea McGilvray and truthfully say she is one of the most competent realtors we have ever encountered. Andrea did a wonderful and complete research to find properties to show to us. We were pleasantly surprised to find she had researched and found what we were interested in by using the exact parameters we gave her. It was a pleasant experience to work with a realtor who complied with our priorities and not once did she try to entice us to look at something we were not interested in. If anyone is looking for a professional realtor who is tuned in to the customer, one cannot go wrong in opting for Andreas services.

Les and Dee Dennis-Anchorage Alaska

In this challenging real estate market, you need someone you can trust to go the extra mile and I was honored to have had Andrea McGilvray on my team. She has that stellar combination of personal and professional integrity, a friendly approachable manner, and unbelievable work ethic. Her dedication to customer service is evident in all that she does. She kept me informed with automated e-mail updates on newly listed properties, she rearranged her schedule (on more than one occasion) to meet me at properties all over Medina County on weekends and weekdays after I got off work, and she never quit until she found me the perfect property. It was a two-for-one deal where I ended up with keys to my dream home and a wonderful new friendship.

Signed, Danna K. Lengefeld, Homebuyer

We strongly recommend Cowboy Capital Realty and Andrea McGilvray. Andrea is the Best Realty Agent in the business. She is top notch. Andrea will go the extra mile for her clients to make sure they get the “best deal”. We have relatives and friends that are real estate agents, yet we decided to have Andrea represent us. Unquestionably that was an extremely wise decision. She is professional and personable. Andrea worked tirelessly on our behalf and kept us informed “every step of the way”. We could not be more pleased. We will certainly contract with her again if we ever need her.

Sincerely

Mr & Mrs Rick Carey

Intent to Hold for Investment Lessons Learned from Goolsby v. Commissioner

A taxpayer’s intent to hold both the relinquished property and replacement property for investment or for use in a trade or business is a requirement for any exchange transaction qualifying for tax deferral under Internal Revenue Code Section 1031. The IRS and federal courts may examine all of the facts and circumstances surrounding the transaction to determine the taxpayer’s true intent at the time of the exchange. If those facts and circumstances are not consistent with the requisite intent, the exchange may not qualify for tax deferral. A recent Tax Court case illustrates this point.

In Goolsby v. Commissioner (April 1, 2010); T.C. Memo. 2010-64, taxpayers exchanged a relinquished property in California for two replacement properties located in Georgia. Two months after the exchange was completed, the taxpayers moved into one of the replacement properties (the Pebble Beach property) and used it as their personal residence. The IRS took the position that the Pebble Beach residence was not acquired with the requisite intent to hold for investment and failed to qualify as replacement property within the meaning of Section 1031(a). The Tax Court rejected the taxpayers’ argument that certain other facts demonstrated that they intended to rent the property when they acquired it and decided later to move into the property. As a result, the taxpayers were liable for the capital gain taxes allocable to that portion of their exchange and also for an accuracy related penalty for understatement of tax. In rejecting the taxpayers’ argument, the Tax Court found that the Goolsbys:

  • conditioned the purchase of the Pebble Beach property on the sale of their former primary residence in California;
  • asked their qualified intermediary (QI) about converting an investment property into a residence before the exchange was completed;
  • failed to research whether the covenants of the homeowner’s association would permit the Pebble Beach property to be used as a rental and generally did little research on the rental market;
  • placed a rental advertisement in a small neighborhood newspaper for only two months and made no other efforts to rent the property;
  • began preparations to finish the basement of the Pebble Beach property within two weeks after purchasing the property.

Based upon these facts, the Tax Court concluded the taxpayers intended to move into the Pebble Beach property and lacked requisite investment intent to hold for investment at the time of the acquisition. Other cases illustrate the importance of establishing the taxpayer’s intent to hold for investment at the time of the exchange and that the taxpayer bears the responsibility of proving it. See e.g., Bolker v. Commissioner, 81 T.C. 782, 804 (1983), affd. 760 F.2d 1039 (9th Cir. 1985) and Click v. Commissioner, 78 T.C. 225, 231 (1982). Additionally, as seen in Moore v. Commissioner, T.C. Memo. 2007-134, the taxpayer’s principal motivation must be to hold the property for investment purposes (e.g. rental income), rather than as a residence or for other personal use. In the end, the lessons of the Goolsby case are:

  1. A taxpayer should make significant efforts to use the property acquired in a 1031 exchange as an investment property or in the taxpayer’s trade or business before converting the replacement property into a personal residence or into another non-qualifying use.
  2. The IRS and the Tax Court will look at all objective evidence surrounding the acquisition to determine whether the taxpayer’s use of the replacement property after the exchange is consistent with an investment or trade or business intent.
  3. Any non-privileged discussions evidencing a contrary intent before, during, or after the exchange are fair game for the IRS, even the taxpayer’s discussions with a qualified intermediary.
  4. There is no substitute for careful planning, including the development of facts and circumstances that would substantiate the taxpayer’s objective intent to hold the replacement property for investment or for use in a trade or business.

Last month we looked at the broad scope of property that can be considered “like-kind” and qualifies as either relinquished or replacement property in a 1031 tax deferred exchange. To learn more about certain types of assets that do not qualify for non-recognition treatment, click on Property Excluded from §1031 Treatment


The Feds are suing Arizona.

The Feds are suing Arizona.  The height of stupidity.  All the federal government has to do is run the presses a little longer to pay for their expenses.  Arizona doesn’t have that luxury.

What can you do?  Well, we now have an opportunity to put our money where our mouth is.  Arizona has set up a web site enabling us to donate to their Border Security and Immigration Legal Defense fund.  They take all the standard credit cards.

https://az.gov/app/keepazsafe/donation_information.xhtml

There is also a Facebook link

http://www.facebook.com/l.php?u=http%3A%2F%2Fbit.ly%2FbkQzZc&h=c4344eaXa7PesE0gbCgUFHnmegg

Texas version of the SAFE Act

Five transactions/12 months back for now in Texas – SAFE Act on hold.

Well here in Texas it is again the same as before until the legislative changes during the coming months can make other changes..  We were told that June 1st, no owner financing, now we are back again to what Texas originally had. The Texas Department of Savings and Mortgage Lending has taken significant steps to allow Texas property owners to continue to seller finance up to five (5) transactions in a  12 month period.  The commissioner has delayed the implementation of the SAFE Act requirement for liscensure in seller-financed transactions in Texas until August31, 2010.  Well we will see what happens.

Bandera County Board of Realtors is holding its annual BBQ – Free BBQ Brisket

It is that time a year again, The Bandera County Board of Realtors is holding its annual BBQ – Free BBQ Brisket

Where: Bandera County/City River Park

When: Tuesday July 13, 5:30 to 9pm

What to bring: lawn chair and a dish

Why: To Network!!!!

BYOB! No Glass!!!!

Admission: Free

So please come and join us for a great evening!

BTW. we have a new BLOG! Check it out! feedback and info to add to it would be great!.

http://bcbor.wordpress.com/

IF you wish to let me know what you are bringing that is great, or just surprise us!!  Also if you wish to let me know if you are coming that would be good too. We plan on having aprox 75 people!!! Be one!

Bandera Water Rights

I got this email in today by Dave Allen and I felt it was important to get this posted!!!

Concerning agenda item X, the Board President started with offering us choices of allowing them to issue pumping permits to the Trinity Aquifer that would draw it down another 20, 30 or 40 feet on average, as our Desired Futue Condition (DFC) for the year 2060.  At that point, hands started raising and public comment was recognized which was overwhelmingly in favor of a zero net drawdown average as our DFC.

After a lively debate with the board and then, among themselves, they ended up voting for no more than a 10 foot decline.

Because the Trinity aquifer in our area is affected by what happens in the surrounding districts mainly to the north, we hope that they follow our example.  Ultimately, we come under GMA-9 jurisdiction, and whatever DFC consensus they reach.  The vote by our board is considered a victory for local conservation, given the three initial alternatives.

Director Kneupper had two important items on the agenda which passed.

Item XIII, to permit all unpermitted wells which require permits, and Item XIV, to have meters installed on existing permitted wells and to get pumping reports from them.  The district will gain valuable data from these meters, which will help in planning future pumping limits.

Thanks to Lee for fighting the good fight to stabilize and prevent declines in groundwater and springflows, and thank the Good Lord for the abundant rain we received this week.

Dave Allen

Bandera Water Matters

Flood insurance and Tax Credit processing extension!

Finally, you may resume closing loans with flood insurance. It is indeed retroactive to June 1.
Tax deadline has been extended to September 30th and
USDA unfortunately has not been.

Please see comments below

The Congress has passed the following:

·         Tax credit processing extension

The Congress has passed  H.R. 5623, the Homebuyer Assistance and Improvement Act, which extends the tax credit closing deadline until September 30th.  There will also be no gap between June 30th and the date the President signs the bill into law.  The extension only applies to transactions in which the purchase contract was signed by April 30th.

·         Flood insurance extension

The Senate has passed H.R. 5569 which extends the National Flood Insurance Program until September 30, 2010.  The bill is retroactive from June 1, 2010 to the date the President also signs this bill.

USDA

There is still no decision on the USDA extension.   Since the Senate adjoined until July 12th, the House must decide whether to accept the supplemental appropriations bill passed by the Senate or it will be necessary to delay final action on the USDA extension until after the July 4th recess.