The Los Angeles Times from Los Angeles, California • Page 247

K2 SUNDAY, FEBRUARY 17, 1991 LOS ANGELES TIMES At Home CALENDAR Home, Garden and Real Estate Events Where Individualism Is the Standard Elysian Heights: Architectural oddities and the freedom to do your own thing add, charm to Echo Park neighborhood. By MANON TREE Ellen Landauer and her husband, Lewis Turlington, began their house hunt in mid-1988. After a nine-month search, they bought a charming mini-Victorian in Elysian Heights, a neighborhood in northwest Echo Park, for $180,000. The one-bath turn-of-the-century house boasts many original features. The entry hall has leaded-glass windows and the bathroom a dainty, claw-foot tub.

From the parlor room, French doors open onto a living room with built-in bookshelves and a pillared mantel over, a tiled fireplace. The dining room has a built-in buffet with leaded TUESDAY WOMEN BUILDERS A get-acquainted meeting of the National Assn. bf'Women in Construction for women employed in all phases of the construction industry. TIME: 6:30 to 8:30 p.m. PLACE: Western Federal Savings Loan, Community Room, 22001 Ventura Woodland Hills.

SPONSOR: San Fernando Valley chapter, NAWIC, (805) 253-0728, Diana Smith. FEE: No charge. WEDNESDAY RUST BELT Strategies for redevelopment of the'once-thriving 10-mile industrial corridor along the Los Angeles River will be discussed by Mike Davis, instructor at Southern California Institute of Architecture. TIME; noon to 1 p.m. PLACE: Los Angeles City Hall, Room 540, 200 N.

Spring Los Angeles. SPONSOR: South CentralSoutheast Task Force, Dept. of City Planning, (213) 485-3445 or FEE: No charge. TROUBLED TIMES A seminar that focuses on wholesale values in the foreclosure market in Southern California, Texas, Palm Springs, Colorado and Reno. TIME: 7 to 9 p.m.

PLACE: Cal State Los Angeles, Room 540, 5151 State University Drive, Los Angeles. SPONSOR: CSLA Entrepreneurial (213)343-2971. FEE: No charge; $3 optional fee for foreclosure workbook. BANKRUPTCY The handling of Chapter 11 and Chapter 7 bankruptcy cases in today's real estate market is the topic of Leonard M. Shulman of Frandzel Share, a general representative of debtor-corporation; commercial lenders and creditors.

TIME: 7:30 to 9 a.m. PLACE: Airporter Inn, 18700 MacArthur Irvine. SPONSOR: California Investment Real Estate Forum, (714)730-5050. FEE: $15, Forum members; $20, non-members. Elysian Heights resident Valerie Tuna is worried that gentrification will TONYA EVATT For The Times dilute the community's character.

I 1 AT A GLANCE Population 1990 estimate 24,376 1980-90 change 14.6 Median age- 31.8 years Annual ncome Per capita; 9,122 Median household 24,208 Household distribution Less than $15,000 28.6 $15,000 33.1 $30,000 $50,000 $50,000 $75,000 11 $75,000 4.7 LMni WATER WAYS John Tettemer, John Tettemer Si Associates, will address trie building industry's compliance with the new Environmental Protection Agency storm-water discharge rules affecting construction sites. TIME: 6:30 to 9 p.m. PLACE: Sheraton Cerritos, 12725 Center Court Drive, Cerritos. SPONSOR: Los Angeles County East chapter, Building Industry Assn. of Southern California, (818) 449-6484.

FEE: $25, members and non-members. CONTAMINATED WATER KEEP OUT THURSDAY They chose Elysian Heights, Landauer said, for several reasonsverdant hills, lots of character and the diverse socio-economic blend, which reminds her of New York City, where she's spent most of her life. "I'm from New York," Landauer said, "and I need to see different facesOtherwise, everything's boring. New York is a complete mixture. It's kind of like that here, so I feel comfortable." It is common to hear such' descriptions of Elysian Heights from other residents.

This community of hardy individualists has a reputation for attracting freethinkers and people of diverse backgrounds. Many artists, writers and persons who run small businesses from their homes from photographers to accountants-thrive in the secluded, bucolic setting 10 minutes northwest of downtown. Elysian Heights begins at the base of the hills north of Sunset Boulevard and ends at Riverside Drive. It is bounded on the east by Elysian Park and on the west by Glendale Boulevard. Originally part of the Spanish land grant for the pueblo of Los Angeles, founded in 1781, the subdivisions of Elysian Heights, Ange-lino Heights and Echo Park were initiated by a land boom during the last decade of the 1800s.

Immigrants from the Midwest flocked to the young Los Angeles, encouraged by low railroad fares and the promise of clean air and a mild climate. Later, immigrants, spurred by events in post-World War I Europe, began to arrive, some settling in the hills and valleys of Elysian Heights. Steep terrain and deep gulches made access to hillside homes difficult, so a network of 36 stairways was built in the Echo Park -Elysian Heights area. Early this century, the horse-drawn Elysian Park Street Railway operated along Echo Park Avenue, depositing residents at the stairway nearest their BUSINESS PRACTICES Debra Fink, general manager of the Jon Douglas Co. and former legal counsellor the California Assn.

of Realtors, will discuss "Professional Business Practices' in Real Estate." TIME: 5:30 to 9:30 p.m. PLACE: 'Beverly Hills Hotel, Crystal Room, 9641 Sunset Beverly Hills. SPONSOR: Real Estate and Construction Division of the United Jewish Fund and Beverly Hills Board of Realtors. $25. CONTRACTS A two-session course over two Thursdays with realtor Andrea Kobliner, co-owner of Crestview Estate Properties, examines real estate contracts and home purchase procedures.

TIME: 7 to 10 p.m. PLACE: Los Angeles Pierce College, 6201 Winnetka Woodland Hills. SPONSOR: Pierce College Community Services, (818) 719-6425. FEE: $28. SECONDARY MARKETS An assessment of changes in loan requirements affecting mortgage brokers will be given by Bill Moffatt, Plaza Funding Roy Downey, Federal National Mortgage and Pat Nicholas Residential Funding Corp.

TIME: 7:30 to 8:45 p.m.- PLACE: University City Hilton Towers, 555 Universal Terrace Parkway, Universal City. SPONSOR: Los Angeles County Assn. of Mortgage Brokers, (213) 384-4468 or (818) 241-0173. FEE: $27.50, members; $37.50, non-members. SATURDAY KITCHEN REMODEL How to get more for your remodeling dollars crumbling ruins of abandoned cottages." Kandel and housemate Bryan Hennis found a fixer-upper on Morton Avenue last year for $165,000.

The house, a 1907 pre-Craftsman, has 1,400 square feet, with two bedrooms and l'S baths, and needs lots of cosmetic restoration, no problem for Hennis, who is a skilled renovator. "We bought over here because it's a quiet street and the neighborhood has lots of character," Kandel said, adding that he feels reassured knowing the house is sitting on solid rock. Notebook Seller's Once-in-a-Lifetime Opportunity home. The remaining stairways are now architectural preservation pieces, adding a rich dimension to Elysian Heights' unique look. Uniformity is not the standard here.

Where else in Los Angeles can you paint your house pastel shades of pink, green, yellow and purple without an uproar from the neighbors? That's exactly what Peter Shire, artist and lifelong resident, did, and he was "disappointed" by the lack of response from his neighbors. Shire's colorful house is nestled among wood-frame and Spanish-style homes, surrounded by foliage. "I can look at an open hillside that seems to belong to nobody," Shire said. "This is important for the human spirit." Other oddities unique to Elysian Heights are forgotten vestiges of bygone eras. Resident Andrew Kandel, a geologist at an environmental and engineering consulting firm, enjoys taking long walks to search out forgotten mementoes of the past.

"I can feel the layers of the past," Kandel said. "I recognize different eras in the styles of buildings as I walk around, forgotten stairways that lead to nowhere Consumer REAL ESTATE TAX TIPS Advice for homeowners and investors Fourth of 6 parts ical subdivision to care for an individual in the taxpayer's condition. Under those circumstances, for sales after Sept. 30, 1988, the taxpayer must have lived in the property for at least one year during the previous five-year period. For married taxpayers filing separate returns, the maximum exclusion is $62,500 for each return.

It should be noted that if one spouse meets all three requirements for the exclusion, both spouses are treated as meeting the requirements. For example, if the husband is. over 55 and meets the other two tests, the IRS has ruled that he and his wife are both eligible for the once-in-a-lifetime exemption. Although the tax law is not always clear, the Internal Revenue 'Service has given some' guidance that will be helpful in considering the applicability of the once-in-a-lifetime exemption. According to the IRS, qualifying ownership and use need not be concurrent.

Take, for example, a case where a taxpayer occupied a rental apartment that later was converted to a condominium unit that the taxpayer purchased. I1040JS3 will be explored in depth for homeowners planning kitchen changes. TIME: 8:45 a.m. to 3 p.m. PLACE: Pasadena City College, Room C309, 1570 E.

Colorado Pasadena. SPONSOR: PCC Community Education, (818) 578-7261. FEE: $79, including remodeling handbook. Los Angeles Times "Elysian Park is a stone's throw from the house," added Hennis, a surgical technician at County-USC Medical Center. "The mountain trails are great for bicycling.

You can't do that in Griffith Park. Plus, the park is still undeveloped." Elysian Park, opened in 1893, is one of the oldest and largest parks in Los Angeles and surrounds Dodger Stadium. The park includes a recreation center and hiking trails. It is also home to the. Grace Simons Lodge, which was originally the Chavez Ravine Arboretum, the city's first.

The only signs Please see AT HOME, KG you each sold your house for $200,000 minus the $125,000 exemption. This means that each of you is eligible to roll over into a property costing at least $75,000 each. By pooling your resources, as long as your new house costs at least $150,000, you will be able to combine the once-in-a-lifetime with the rollover, and pay no taxes. There are times when you may want to revoke an election previously made, if your circumstances have changed. The law permits the election to be revoked at any time before the latest of the following dates: three years from the due date of the federal income tax return for the year of sale, three years from the date the return was filed, or two years from the date the tax was paid.

If, however, the taxpayer is married, the revocation may be made only if the spouse joins in such revocation. The election is revoked by a statement filed with the Internal Revenue Service showing the taxpayer's name and Social Security number. The ramifications of the once-in-a-lifetime exclusion are different for every taxpayer. Before you enter into a contract to buy or sell a principal residence, whether you are approaching or past the age of 55, it is recommended that you contact your tax adviser. Next: Deducting mortgage points.

Kass is a Washington lawyer and newspaper columnist specializing in real estate and tax matters. OVERLAY ZONES How to establish a historic preservation overlay zone as a planning tool for protection of historic neighborhoods is the topic of a workshop by the Los Angeles Conservancy. TIME: 9 a.m. to noon. PLACE: Clifton's Silver Spoon Cafeteria, 513 7th Los Angeles SPONSOR; Los Angeles Conservancy, (213) 623-CITY.

FEE: advance reservations suggested. EVELYN DE WOLFE Send riotities to the Real Estate Calendar Editor, Los Angeles Times, Times Mirror Square, Los Angeles, Calif. 90053, at least 10 days before the event. Taxes: Homeowners over 55 can take advantage of an important exclusion. But there are strict conditions.

By BENNY L. KASS Home ownership, at least according to the Internal Revenue Codes, still remains the American Dream. We continue to buy and sell homes, trading up into more expensive properties until, at 55, we can exclude up to $125,000 of profit on our years of home ownership. This is called the "once-in-a-lifetime exclusion of gain," and is found in Section 121 of the Internal Revenue Code. But there are strict conditions that must be met.

First, the taxpayer must be at least 55 years old before the date of sale. Turning 55 the year the property is sold does not meet the legal requirement. Second, the exclusion applies only to the sale of your principal residence, which includes condominiums and cooperative apartments. Third, the taxpayer must have owned and used the property as his or her principal residence for a total of at least three years during the five-year period ending on the date of the sale. In 1988, Congress modified this use period for taxpayers who become physically or mentally incapable of self-care and reside in any facility including a nursing home licensed by a state or polit- According to the IRS, the use requirement was met because of the length of time the taxpayer occupied the property, even though he or she did not own it for the full five years.

Keep in mind that the once-in-a-lifetime exclusion is an election, unlike the rollover rules, discussed in last week's article, which are mandatory. Just because you sell your property and meet the tests does not mean you have to claim exclusion. There may be reasons to elect not to take the exclusion on this sale, and instead wait for future sales. However, remember, that this is a once-only election, arid married couples are entitled to a single election per couple not one for each spouse. If a couple makes an election during their marriage and subsequently divorce, no further election is available to either of them or to their future spouses, should they remarry.

Indeed, the Internal Revenue Cdde seems to encourage couples not to marry until after they have taken their once-in-a-lifetime exclusion. For example: You and your prospective spouse are both, over 55. Each of you own a house that cost $50,000, and both of you can sell those homes fpr $200,000 each. Together, you would have gain of $300,000. If you married before you sold your respective houses, you would be limited to an exemption of $125,000.

However, if you both sell your houses before the marriage, you can each exclude the $125,000, for a total of $250,000 worth of exemption. Furthermore, in our example PREVIEW INFORMED INVESTMENTS Fundamentals of Real Estate Investment Taxation will be taught during a five-week CI 101 mandatory course for Certified Commercial Investment Member (CCIM) designation. DATE: Feb. 25, 26, March 4, 5, 11. TIME: 8:30 a.ht to 6 p.ni.

PLACE: Los Angeles Board of Realtors, 601 S. Ardmore Los Angeles. SPONSOR: Los Angeles CCIM chapter, (818) 995-0844, Charlotte Thomas. PEE: $695, candidates; $745, NAR members; $995, non-members; registration required..