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1031 refers to the number assigned to the Internal Revenue Code Section that provides for the tax-deferred exchange of real and personal property.

To qualify for tax-deferred treatment, the relinquished property must be exchanged for replacement property that is like kind.  Like-kind means similar in nature and character notwithstanding differences in grade or quality.

The fact that any real estate involved is improved or unimproved is not material, as this fact relates only to the grade or quality of the property and not it’s kind or class.  Thus, as an example, raw land held for investment may be exchanged for single-family rentals used for a trade or business.

Foreign national participation is allowed.

US Hwy 17-92 & Poinciana Boulevard

…remember what it looked like on June 20, 2007…

Only 14 permits were pulled for the month of July.  Compared to this time last year, this is a bombshell.  For the year to date, housing permits have dropped 60.7% from the same period in 2006, and only six multi-family structures were permitted in June, compared to 202 multi-family permits pulled in January.

When the tide begins to turn, resale properties will be the first to move.

Westside, when finished, will be a luxury mixed use development containing homes, offices, upscale businesses, and short-term rentals.  Included will be a 72-acre preservation and park area.

Slated for two retail centers with condominium living on the upper floors, and upward to five restaurants, it will provide a new level of ambiance along the Western corridor of US 192.  Homes are already underway along Westside Boulevard beginning in the $300,000’s.

Long-range plans also call for a potential semi-private high school. 

US Hwy 192 at Celebration

… a world class resort condominium hotel…

1 & 2 BD’s from the $300,000’s

Knowing Phase 1 and Phase 2 will not address all of the inequities, these will try to be resolved by the legislators in time for the general election in November 2008;  simple, to the point.

Time will tell.

On January 29, 2008 Florida voters will have the opportunity to pass a new Constitutional Amendment addressing a change in the current homestead exemption law.

Known as the “Super Homestead Exemption,” it will exempt 75% of the first $200,000 of a home’s value, and 15% of the next $300,000.  The maximum homestead exemption would be $195,000 - compared to the current $25,000.

The upper limit threshold of $500,000 will be indexed to personal income and could be increased by approximately 4% annually.  The legislature could also increase this with a two-thirds majority vote.

Keeping in mind 94% of Florida’s homesteaded property is valued at $500,000 or less, it is clear this bill is aimed initially at tax relief for the general population. 

This should enable owners that have been “locked in their homes,” the opportunity to both move up to larger properties or to down size without being punished by the current tax code.  This amendment would nearly cut property taxes by 70% for the owner of a new median priced home.

Several other features are included:  Low-income senior protection; a limitation on the authority of local governments to increase property taxes; authorization for the legislature to assist working waterfronts and affordable housing with assessment changes; and the provision of a $25,000 tangible personal property exemption for small businesses.

A statutory “Roll-Back & Cap” law has been signed into law by

This law provides an overall cap limiting what governments can collect from property taxes and requires a local government to collect the same amount of revenue it did the previous year with a small adjustment for new construction and statewide personal income growth. 

All local governments will be required to freeze their tax base at the 2006-2007 level, with a small allowance for growth, and then cut an additional 3%-9% based on their individual five year history of tax increases.  Independent special taxing districts will be subject to a 3% cut. (School boards are exempt from this provision.)

This will be reflected in the upcoming tax bill in November since Floridians pay taxes in arrears.

The “Roll-Back & Cap” will apply to, and protect, all classes of properties from big unpredictable year-to-year tax increases.  This includes vacation homes, rental property, and commercial properties. 

As a fact, this is the first guaranteed property tax protection for non-homesteaded properties in

CYPRESS POINTE

… new building continues…

Old Lake Wilson Road, Davenport

Enough was enough.

The Florida Fish & Wildlife Conservation Commission eliminated all ‘incidental take’ permits that had not been processed by July 31.

Mitigation will now be the proceedure to follow, and all tortoises found on a developmental site will have to be relocated before development can take place.

This not only covers the Four Corners area, but the whole State of Florida.  Gopher tortoises can be found in all 67 counties, though not always in viable breeding colonies.