When a shoulder injury ended my days of playing baseball, I became an umpire. That's when I found
out how little I really knew about the game I had loved since childhood.
Some people say that I must be crazy to let people throw baseballs in
my direction at close to a hundred miles an hour ... then be expected
to judge each one for its proper placement over a 17-inch wide, pentagon-shaped piece
of rubber.
I believe that my keen sense of fair play and ability to think on my feet have
contributed to my success and have
allowed me to participate in high-level events where I have
come to know a number of
well known people
in Hawaii, including the governor.
Umpiring baseball provides me the challenge of being a decision maker
who is openly held accountable by teams of opponents
in the hard-to-be-popular position of enforcing the rules of baseball. I have
umpired at every level from youth baseball to High School ball to
NCAA Division One play. I have officiated the Men's Senior World Series in
Phoenix nine times and am active as the chief umpire in the
KonaBaseball.com league.
How I Define "True Paradise" in Hawaii: Kohala Ranch
Having served for a number of years as Architectural Control
Chairman of Kohala Ranch,
I am quite familiar with virtually every parcel in
this fabulous subdivision of 3+ to 10+ acre parcels
on the Big Island of Hawaii.
A real estate professional, I am the principal broker of the firm of
Hawaii Hoku Star Realty, LLC.
In my daily market analysis of land and residential properties, I regularly
track Kona Coast and northward, especially
the communities of
Waikoloa Village
and Kohala Ranch
(both located on the Gold Coast in West Hawaii), and I keep on top of the
business / industrial / commercial markets as well. My CPA background is handy for
assessing financial realities, pursuing wealth-development targets,
and discovering bargain commercial & investment opportunities.
I enjoy conducting regular caravan tours of
Kohala Ranch
on most Tuesdays and some Fridays.
Access to Kohala Ranch
is limited, so reservations are suggested at
808-883-3331 or 808-880-9000.
One of my favorite books: the Internal Revenue Code - yuk!
I am licensed as a Certified Public
Accountant in both California (#19485 - inactive) and Hawaii (#3473). Although not engaged
in public practice as a CPA (so, don't ask me to prepare financial statements or
perform audits), I have a strong background
in the field of income tax law, especially as it relates to real
estate.
Before I get into discussions of the tax minimization strategies, I need to advise
all readers that they should rely on their own legal and/or accounting professional
for advice that is specific to their situation and that information from this web side is
offered freely with the understanding that it is to be
used at the reader/taxpayer's own risk.
Here's what's new:
Perhaps the most significant impact on the sales price of residential transactions (over the next six months or so)
may be the federal tax credits now available to buyers. The credits were initially introduced in order to stimulate purchases of
residences by FIRST-TIME HOMEBUYERS. Since then, the tax credits have been expanded. Even larger than that originally legislated,
another credit has been made available to CURRENT HOMEOWNERS who
buy a new primary personal residence.
Wow! Imagine the position of a homeowner who would like to step up to an $800,000 home (the maximum sales price
for a tax credit of $8,000). Assuming a married couple the current home can be sold tax free to the tune of up to half-a-mllion dollars worth of that property's capital gain
(generally, the net sales price minus the original cost basis). This win-win provision of the law allows growing families to move up and empty-nesters to pare down.
Furthermore, this government-sponsored opportunity doesn't even require the taxpayer to sell the current primary personal residence. This fact seems to be widely misunderstood qnd
is simply ignored by professional web sites' Q&A pages.
It is my understanding that the current primary personal residence can be converted into an investment rental
property or be kept as the taxpayer's secondary residence. If used as invesment property, there is the future possibility of using Internal Revenue Code Section 1031 (the so-called
"Tax Free" exchanges). For my real estate clients, I oversee their exchanges at no cost to them.
By the way, I am happy to discuss this and other provisions of the tax law with you. Call me at (808) 880-9000, or
send me an email
with your contact information. Initial consutations are provided at no charge.
Getting back to the news about these great new tax credits, it gets even better. These are TAX CREDITS (real 100-cents-on-the-dollar money in your pocket), NOT JUST TAX DEDUCTIONS (which
merely reduce taxable income). Furthermore, these credits are refundable.
That means that, even if the taxpayer doesn't have a tax liability, a check is issued by the government. It is sort of like getting free money, but only if you are in the right place at the right time.
I can
show you how when and where.
I will also make sure that you guard against the dreaded RECAPTURE rule that looms for almost three years, then MIRACULOUSLY DISAPPEARS on one specific day.
Now, let's discuss the question about price. I will begin by giving you the answer. (Don't you wish that all of your teachers did that?) In fact, I will give your two answers: $650,000 and $800,000. Now, here is the meat in the sandwich. The tax credits
have legislated dollar maximums that make it so that, in my opioin, it makes absolutely no sense for any transactions to occur in certain ranges (such as $800,001 - $807,999). In addition,
these laws are such that they distort the market upward and downward at certain break points.
This is good news for the knowledgeable, and it is a pitfall for the uniformed buyer or seller. Regardless of whether you ever contact me personally, do yourself a favor. Find a home priced
at $850K+ and hold firm on your offer of $800K (irrespective of whether you qualify for and intend to use the credit). If you are a seller whose house is valued at somewhere around $650K or
$800K, price it exactly at that amount, and use a strategy of pointing to the new tax law.
It is my experience that people are mesmerized by the complexity of the tax law to the point that the real economic business decision soemtimes gets clouded.
Has this been your downfall heretofore?
Remember,
tax consequences are secondary. A dog wags his tail .. the reverse is not the case. Yes, the CPA is saying that taxes aren't all that important. However, the temporary
impact of this short-lived tax credit legislation is having an impact on market prices.
Buyers: let me show you how,while the seller's head is spinning, you might be able to
snag that million dollar property for $800K. There's no need to leave extra money sitting on the table, is there?.
Sellers:
let me show you how to price your property so as to sell it for the highest amount during this governmemt-induced "hic cough" in the real estate market.
I believe that tax-knowlegeable and sellers can optimize their
positions and realize more money at the close of escrow. No hocus-pocus, no tax magicianry ... just knowledge and the ability to convey it to others.
Let's get acquainted.
I welcome the opportunity to earn your confidence and to be your personal real estate consultant and transactions broker.
JD-CPA@Kona.net
