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Egzglm Beach Post-Times, Sunday, December 12, 1976 Robert J. Bruss Home Buyer Gets Deferral on Taxes tg5l j BOCA I " Sr My Qteli nmwiwiOMiiM L f ii ri t w i iinf few wmii.HirMi n iSkw i rttjj M RAVON r ' 131 "w II I) :r:Jmf o W If ill 1 'ifw Q - In 1974 we sold our home in St. Louis and bought a house in Ohio. We deferred the profit tax on our St. Louis home because our new home's cost exceeded the saJes price of our former home. Now my husband has been transferred to Seattle. Can we use this tax deferral rule again or is it available just once? Wendy A., Ohio. A The "residence replacement rule" can be used as many times as you wish, but only once per year. This tax rule permits total tax deferral on your profit when you sell one home and buy a more expensive one within 18 months before or after the sale. A partial tax is due if you buy a less costly replacement. Condominiums, cooperatives and even mobile homes and houseboats qualify if it is your principal residence. ( - 1 recently bought a four-unit apartment house. At that time, 1 bought a lire insurance policy for it from one of the largest insurance companies. They just sent me a notice canceling my policy, even though there has been no fire loss at my property. Is this lepl? Lola T., Illinois. A Unfortunately, yes, in most states. Many fire insurers are becoming very selective as to which properties they will insure. If your property or area doesn't fit the insurer's requirements, many fire insurers will cancel even their present policyholders who have had no losses. When an insurance company refuses to insure property in specific areas, it is called "redlining." The insurer usually draws a line on a map around the areas where it won't insure property. Check with your state insurance commissioner's office to see if this violates your state's laws. If not. lie may be able to suggest where you can buy insurance for your building. Q - I will be retiring in a few years and would like to buy some apartments to provide extra income. Is it possible to avoid the capital gain lax on my present home by trading it as down payment on apartments? Robert (!., Florida. A - You can't trade your personal residence for investment property without owing tax on your profit. That's because you would be trading "unlike property," a personal residence, for investment property. The solution to your problem is to first rent your house to tenants. That converts it from a personal residence to investment property. Then trade it, as "like kind" investment property, for an apartment huusr. If the apartment house seller doesn't want to keep your house, he can then sell it after you get your tax-di-ferred trade. Such a procedure is called a "cash out sale." Of course the apartment seller will pay t.ix on his profit. Q We recently made the final payment on our FHA mortgage to a local hank. liul they refuse to give us anything showing we have paid oil our mortgage. Some time ago ihey sold the mortgage to the Uni versity of Vermont. What should we do? Mr. R. B., Georgia. A - You need a mortgage release, sometimes called a release deed, reconveyance, satisfaction or discharge. This will clear the public records on your title. Refusal to release a mortgage can mean a statutory penalty in most states for the mortgagee. The local bank was just collecting your monthly 'payments. Write to the mortgagee with the details of your final payment with a request a mortgage release be sent to you for recording. Q Five years ago we bought our home with a $30,000 mortgage for 25 years at 7.5 per cent interest. It is now paid down to about $27,500. That means we still owe 92 per cent of the original balance. Is there any quick way to calculate how much we will owe after 10, 15 and 20 years? Al M., California. A - Most public libraries have loan amortization books available. I see from such a book after 10 years you'll owe 80 per cent of the original mortgage balance. After 15 years you'll owe 62 per cent and 37 per cent will be owed after 20 years. If you want your own pocket-size mortgage amortization book, with monthly loan payments at various interest rates and terms, the 1977 Realty Bluebook is the best I've seen. This 390-page book, including suggested purchase forms and finance terms, is available for $12.72 from Professional Publishing Co., 122 Paul Drive, San Rafael, Cal. 94903. Send them $1 and they'll also send you a set of their outstanding real estate contract forms. I have no financial interest in that company. Q I am studying for my real estate license test. But I'm confused about the difference between buying property "subject to" an existing mortgage and "assuming" an existing mortgage. Mel A., California. A - Using either arrangement the buyer must keep up the mortgage payments or lose the property by foreclosure of the lender. A buyer who takes title to property "subject to" an existing mortgage incurs no personal liability to the lender. In the event of foreclosure, the buyer loses his equity in the property. But he usually has no liability to the lender for any deficiency if the property is worth less than the mortgage balance. The original borrower retains liability to the lender, however, in most situations. There are two kinds of mortgage assumptions. One, between the buyer and seller, involves the buyer assuming primary debt responsibility. The seller remains secondarily liable. The other kind of mortgage assumption is with the lender's approval whereby the original borrower is released by the lender from any liability. This type of assumption is probably the safest way to buy property if the existing mortgage is due upon sale. 42 luxurious waterfront townhomes in Boca Raton's finest residential area... Highland Beach. BOCA COVE 2 and i btdmorm priced from $rSlt to $SOim) Immedute utcuiwncy Sales Center open Jaiiv from 10 a m to 5 p m 4MO South Ocean Boulesard (A1A) Highland Beach Honda :i.M44 Just north ot the 4t1h Street Bndcje iSpa:nish Hiver BoulecarJi Phone 1;15I276?10 Calm Beach 7.U 5144 Brouard 4L'h tW(l Pade lM(l o(2 (Aiied and hnan.et! hv t!a.(sh' tsak Here are 3 beautiful reasons Miami why people are leaving Ft Lauderdale and Palm Beach for Hutchinson Island. 1 w " . i , w. j. . . ft m JUb. -idM-. ...m. m is i m TSTEKK9 tarn r rcf mum mf nm ' --k .... -n-r 'ffg r -rnp-rl w-i.p."; . "' ' 7 M in WATERFRONT APARTMENTS valuable a residence here may be five or ten years from now. There are no land leases. No recreation leases. No AS LOW AS . A BEAUTIFUL LIFESTYLE. Begin with a half mile of Atlantic beachfront. Add a par 3 golf course, lighted tennis courts, swimming pools and bike paths. Build lovely 1, 2 and 3 bedroom oceanfront and golf course garden apartments. And do absolutely nothing to destroy the character and charm of a unique island that's only minutes from Fort Pierce, yet quietly removed in its own private world. BEAUTIFUL PRICES. If you did this, you would have a community remarkably like Ocean Village on Hutchinson Island. But, of course, there's nothing like Ocean Village at anywhere near the price (starting as low as $39,500 furnished) anywhere nearby. BEAUTIFULLY PRIVATE. One thing that makes Ocean Village so unique is that it's so far removed from the workaday world. And yet it's within an easy drive of anywhere in the state. Here, where the Atlantic is your backyard, you'll find beautiful features that add to the quality of everyday life. Like our series of mini-lakes. And 60,000 sea oat plants. ... -OvA (Mb ... ,.... ... . .- - membership fees. And no restrictions on renting your residence whenever you want. Which gives you the option of considering Ocean Village as your year-round, seasonal or vacation residence. And when you realize that 'Bul' the developer Gulf Oil Real Estate Company has been responsible for some of the most stable and llito4-.- There are tome exceptional value in m wt' thii moit detirable area. Call our tales office for an appointment today. Iliii if iir distinctive commu V Ocean Golf course furnished villa Priced from $39,500 to $44,900 nities in America, like Virginia's much honored Reston, you know the chaiacter and charm of Ocean Village will be preserved in the future. 'HPS ,Ji4l yam pv And some of the most accessible boating and fishing in America. You'll find our oceanfront Beach Club with an outstanding restaurant, 75 ft. pool and health and social facilities. And, fittingly, a playground and pool Golf course garden apartment Priced from $43,900 to $46,900 Vj ocean village. Drive up and see us soon. Or, tor information, mail the coupon to Ocean Village, 2400 S. Ocean Dr . Fort Pierce, Fla 33450 Telephone (305) 465-5900 Restaurant 461-8822. A beautiful adult condominium set by Lake Worth with instant access to the Intracoastal Waterway, right outside your door, low-rise, low density build ings preserve an intimate view. Close to nature, not 20 floors above it Choose from an excellent selection ot 1 and 2 bedroom apartments waterway CIM!88 N- F?derd Hwy, VVjIV lantana especially for children. WITH GULF OIL REAL ESTATE COMPANY BEHIND IT, OCEAN VILLAGE HAS A BEAUTIFUL FUTURE IN FRONT OF IT. With prices now ranging from the high thirties to the high nineties, virtually any Ocean Village apartment you select represents an outstanding value. And with the appreciation of Ocean Villaae Dronerties donna the 11 wt Name Address City State Zip "fefephefl - - . ' M 1 UM, ( i it . v. aikMMrnr 4 (Where Federal llwy. Meet Dixie llwy.) Phone 588-7900 or 622-J60Q Models Open r i - recent depressed market, we can only agk yni (Q j Hqp fnr yn. rcof how - - Oceanfront apartment licBiiUomSSSQQ 4O.t9gTe0 Daily . . .