| September Guest Columnist/ Get Educated
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The New Capital Gains Rate
Is Now 18.8% Whether you love, hate or could care less about the new un-repealed health care law, the fact is that it directly affects all investors. Stock investors, retirees with interest, and more specifically, real estate investors will now pay a higher tax rate on their investments. All investors will pay an additional 3.8% on investment income or capital gains if their incomes are greater than $200,000.
$200,000 does seem like a lot if income but when you are a long term real estate investor that may be one transaction. Let me give you a scenario seen all the time in South Florida. Mark and Mary Smith come to Sanibel Island and buy a rental condo. They use it two weeks a year. Mark and Mary are each employed in downtown Chicago and make $260,000 combined. That is not rich in Chicago with 10.25% sales tax and 5% state income tax. If they sell that condo and make $100,000 net profit, their tax rate is now at minimum 23.8%, this includes Illinois tax and the new 3.8% health care tax. This does not include recapture tax, in which case the rate is probably at least 2% higher. Bottom line is real estate transactions are now paying for healthcare.
So what do they do? Now is the time to reinvestigate IRC section 1031. A 1031 exchange will allow investors to defer or avoid tax if they follow the rules and purchase additional real estate. This deferral will include the new 3.8% health care tax. So back to our friends Mark and Mary; let's assume they decided to take their gain from the sale of their Sanibel Condo and go back to Illinois. Chicago real estate has continued to drop, so it is at an all-time low. The Smiths must hire a qualified intermediary like 1031Tax Free Strategies to help facilitate the transaction. All of their proceeds go into escrow and they now have 180 days to complete the exchange. Within the first 45 days of that 180 day period, they will need to identify their replacement property(s).
The minimum tax savings with a 1031 Exchange in this example is $23,800. This means no money for Uncle Sam and $23,800 in real estate for Mark and Mary Smith. A 1031 exchange is an easy and common transaction.
To learn more about 1031 Exchanges and taking control over your valuable tax dollars, please contact the professionals at 1031 Tax Free Strategies at 239-333-1031 or visit our website at www.1031company.com.
Email Dave at: owens@advantatrust.com
Thanks for the info Dave!
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| | Featured Property of the Month
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Brand New Construction
NEW LISTING!
SEA GRAPE COTTAGE
CURRENTLY THE ONLY AVAILABLE BRAND NEW ENERGY EFFICIENTLY DESIGNED CONSTRUCTION ON CAPTIVA ISLAND
Completion early 2013
Features: 4BR/3BA Craftsman Beach Cottage Energy Efficient Design Spacious Decks plus Sky Deck Vaulted Ceilings French Doors 2 Car Garage plus Golf Cart Garage Key West Style Courtyard Lushly Landscaped Pool Near Beach on Private Street Great Rental Potential
Offered at $1,695,000
* FLOORPLANS AND ELEVATIONS AVAILABLE
* Enjoy as a permanent residence, winter retreat,
vacation home or rental investment.
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Learning How To Live On The Islands
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The Top 5 Reasons to Leash Your Dog on Sanibel
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Native Plant Tour Details
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Bike Safety
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Everything You Wanted To Know
About Where the Shells Are On The Islands!......
My friend
Pam
MADE the New York Times!!! She is Shellebrity Extraordinaire!
GO TO: her Blog post
to see
THE WHOLE SCOOP
AND READ ALL ABOUT IT!
Congrats to Sanibel, Pam and Clark!
Order your shelling Uniform
and shop for great gift ideas for fellow Shelling Lovers
GO TO:
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Make Island Time........Full Time
Waterfront Captiva Home
Near Beach Captiva Homes
WE HAVE SOME GREAT OPTIONS
TO CONSIDER FOR 1031 EXCHANGE
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Mark Your Calendars Now for.... 
Time to think about decorating a golf cart for the Captiva Holiday Village Golf Cart Parade and a boat for the Boat Parade
Prepare to march in the Mullet Parade
and the Junkanoo Parade Get your groove on for the Joyous Jam watch Firedancers on the beach experience Opera at Sunset
Be educated and entertained by the variety of Chautauqua offeringsBe dazzled by a magical village dressed for the holidays
where you can dine, shop and enjoy waterfront activities from beach to bay.
If you're not here
Plan your tripif you're lucky enough to live here
enjoy unique holiday events in your own backyard
Check the schedule of events here:
captivaholidayvillage.com Still Time To Sign Up To Volunteer!
Fitness, Family and Fun in the Captiva Sun! REGISTRATION HAS REACHED CAPACITY AND IS CLOSED
but still time to sign up to volunteer for details on volunteer opportunities
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| .
Royal Shell Real Estate
Simply the Best!
 Royal Shell Real Estate won (NewsPress)
Best of Southwest Florida Award
for best real estate office
JOHN AND DENICE ARE TOP PRODUCERS
AT ROYAL SHELL
 We are proud to announce that once again we are Top Listing Producers at Royal Shell Real Estate for the month of July! Call Us Today!
To list your island property!
Denice Goes "Back To School"......
for Continuing Ed. The classroom
was the "Santiva" from McCarthy's Marina. The instructor was Kristie Anders from SCCF. The subject was Environmental Considerations of Coastal Living.
I love school on the islands!
2 day old baby turtle came
for "Show and Tell"
Also studied Negotiations and Core Law Now even more educated and ready to assist you with your
Real Estate needs
WHETHER BUYING OR SELLING CALL JOHN AND DENICE BEGGS
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Sanibel/Captiva Island August Sales
(August 1 thru August 28)
Total Sales: $18,977,500.00
Residential Sales
$6,213,000.00
Vacant Land Sales
$2,845,000.00
*All statistics taken from Sanibel-Captiva MLS.
*All Information Deemed Reliable But Not Guaranteed.
*Contact us if you would like to receive auto updates
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Ahi tuna is a Favorite of Islanders
Learn How to Prepare it
Recipe Courtesy of Chef Aziz and Host Andrea
INGREDIENTS
4 oz. Ahi tuna loin
3 oz. Sliced English cucumber
2 oz. Wakame
2 oz. Black and white sesame seeds
1oz. Sesame oil
1oz. Rice vinegar
Lime wedge for garnish
DIRECTIONS
Tuna: Heat a small saute pan over medium-high heat. Cover one side of the tuna loin with the sasame seeds and add to the pan. Sear the tuna rare - aproximately 30 seconds on each side the center should remain rare.
Salad: Cut cucumber into 1/8-inch slices. Combine all ingredients in a bowl. Season with salt and pepper to taste. Mix all ingredients together well.
Serve: Place the English cucumber salad on a plate. Slice and place the tuna around. Top with pickled ginger and serve garnished with a lime wedge.
Want to dine on the beach? GO TO: traditionsonthebeach.com/ to view the menu then CALL 239-472-4559 for reservations. *Live Music and Dancing Nightly Make Traditions ......Your Tradition.....
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" There is no end to education. It is not that you read a book, pass an examination, and finish with education. The whole of life, from the moment you are born to the moment you die, is a process of learning."
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Stay Up-to-Date....
We invite you to visit our website to get to know us better and to search for your own piece of paradise!
Give us a call at 239-357-5500 if you're thinking about selling and would like us to prepare a comparative market analysis.
We are happy to be of service whether you're buying or selling to help you achieve your real estate goals. Customer Satisfaction is our Specialty! We appreciate your referrals
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Sincerely,John and Denice Beggs Royal Shell Real Estate Direct: 239-357-5500 Office: 239-472-0078
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