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Author: Nicole Villaroel

Internal Revenue Code Section 1031 Tax Deferred Exchange (Part II)

Posted on Jul 31, 2017 in Real Estate

An opportunity to defer taxes and build wealth arises when and individual or entity sells an investment property for more than he or it purchased it for. Generally, tax on the seller’s capital gain is due upon the sale of property. However, Internal Revenue Code Section 1031 provides an exception to this rule and allows a seller of investment property (referred to here as the “Relinquished Property”) to re-invest his proceeds into another investment property (referred to here as the “Replacement Property”) as part of a qualifying “like-kind” Exchange. Often misunderstood by taxpayers, capital gain deferred in an Exchange is […]

Real Estate Buyer Alert: Miami-Dade County Commercial Surtax Applies to Certain Bulk Condominium Purchases

Posted on Sep 9, 2016 in Real Estate

Under Section 201.02 and 201.031 of the Florida Statutes, certain counties are authorized to levy a surtax on documents that transfer interest in Florida real property. However, transfers of interest in single-family residences are exempt from this documentary surtax. The tax applies to deeds and other instruments related to real property in an amount not to exceed $0.45 per $100.00. In 1984, Miami-Dade County exercised this authority, established a Housing Assistance Loan Trust Fund, and implemented the Documentary Surtax Program. This program benefits very low to moderate-income families. Very low-income families have incomes of 50% or less of the median […]

Residential Loan Closings Under the TRID Rules

Posted on Aug 11, 2016 in Real Estate

On October 3, 2015, the Consumer Financial Protection Bureau (“CFPB”) implemented a new rule combining the mortgage disclosures borrowers receive when applying for a mortgage and those they receive at the closing table. For more than thirty years, the Truth in Lending Act (“TILA”) and the Real Estate Settlement Procedures Act (“RESPA”) were separately administered. In 2010, Congress directed the CFPB to create rules and model disclosures that combine the required disclosures under TILA and RESPA into an integrated disclosure for mortgage loan transactions. Consumers currently receive different but overlapping federal disclosure forms with the terms and costs of mortgage […]

Loan Originator Compensation Rule under Dodd Frank

Posted on Mar 3, 2016 in Real Estate

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act” or simply, “Dodd-Frank”) was enacted in July 2010 in response to the 2008 financial crisis. The Dodd-Frank Act created the Consumer Financial Protection Board (“CFPB”) as the primary regulatory body empowered to enforce new and existing lending regulations. In addition to enforcing new and existing lending regulations, the CFPB was designed to educate consumers and study the financial services and markets. One of the CFPB’s first endeavors was to enact the Loan Originator Compensation Rule (the “Rule”), which implements Dodd-Frank’s requirements, as set by Congress. The Rule functions […]

Internal Revenue Code Section 1031 Tax Deferred Exchange (Part I)

Posted on Feb 19, 2016 in Real Estate

An opportunity to defer taxes and build wealth arises when and individual or entity sells an investment property for more than he or it purchased it for. Generally, tax on the seller’s capital gain is due upon the sale of property. However, Internal Revenue Code Section 1031 provides an exception to this rule and allows a seller of investment property (referred to here as the “Relinquished Property”) to re-invest his proceeds into another investment property (referred to here as the “Replacement Property”) as part of a qualifying “like-kind” Exchange. Often misunderstood by taxpayers, capital gain deferred in an Exchange is […]