The Times from Munster, Indiana • 34

1 Are you a local business owner? Send information about your business, grand opening, relocation or renovation to businessnwitimes.com or fax us at (219) 933-3249. RJ If 1 llUlilul SVAGO CAFE Dyer nwi.combus bizProfile Dawn and Tim Moore, owners of Svaqo Cafe iness 1 71 ilk I 'i I in Dyer, worked with a chef to develop an extensive menu of salads, soups, appetizers and paninis which feature special sauces and unique cheeses. Not just the same Tired of chain restaurants, couple opens iMMigMMillllU-iri'WrtMMIIIiaail lll-l llln MMfllMilMMMMMWIW mi MTIIinnl'iri -1 Christopher yugo estate planner 1031 Exchanges can help you avoid capital gains tax As most of you know, capital gains can usually be avoided when it results from the sale of a personal residence. However, the tax benefits dffered to personal residences are generally not offered to investment property. If you own rental property and a sale results in capital gains, you will likely have to pay capital gains tax.

One possible solution to avoid or delay recognizing capital gains is to use a 1031 exchange. A 1031 exchange is a tax strategy used to exchange like property without incurring capital gains tax liability. The 1031 exchange has estate-planning benefits because you delay, and possibly avoid, paying tax. A common 1031 exchange works like this: A person, the exchanger, wants to sell investment property, called the relinquished property. The exchanger sells the property and turns the money over to a middleman called a qualified intermediary.

The intermediary holds the money and documents the exchange. The exchanger has 45 days from the date of closing to identify like kind property to replace the relinquished property. Alter the exchanger has identified the property in writing to the intermediary, he has up to 180 days from the date of the first closing to close on the replacement property. I say up to 180 days because the rule actually provides 180 days or by the tax filing due date. What that means is if you sell the relinquished property in December, you must have the transaction completed by the tax-filing deadline, normally April 15.

That gives you less then 180 days. However, you can get around this tax-filing deadline by filing for an extension. If the investor identifies the property within 45 days and closes on the replacement property within the 180 days, he avoids recognizing capital gains, and thus delays paying the tax. If the person owns the property when he dies, he can receive the date of death step up in basis and avoid capital gains altogether. Although 1031 exchanges are complicated, they can offer a great deal of flexibility.

For instance, you can identify more than one property within the 45-day period. You can identify up to three properties without regard to their fair market values. You can identify more than three properties as long as the total fair market value isn't more than 200 percent of the relinquished property. Here are a couple of important things to remember the investment property can't be property that you are holding for sale or a personal residence. The swapped property must be like kind, such as commercial rental property for commercial rental property.

Don't blow that 45-day identification period or the 180-day completion period. And most important of all, do not take possession of the funds. Use a qualified intermediary such as a bank. If you violate any of these rules, the transaction will fail and you will have to pay the tax. If you are considering a 1031 exchange, contact an attorney and an accountant that have experience in these matters.

Opinions expressed solely are those of the writer. Christopher W. Yugo is a member of the Indiana Bar and a vice president and senior trust Officer for First National Bank's Trust Department Address questions to Yugo in care of The Times, 601 W. 45th Munster. IN, 46321.

Yugo's information is meant to be general in nature. Specific legal, tax. or questions should be referred to your attorney, accountant or estate-planning specialist. SUNDAY JUNE 1 2008 PAGE C2 professionals on the move National Able Network a nonprofit employment and training agency, has named Brian Caminar, of Chicago, to vice president of work force programs. Caminar has assumed responsibility for all of the agency's work force programs, including the Trade Adjustment Act and the Workforce Investment Act programs that operate out of the Calumet City office.

Jim Meeks has joined Boulder Bay Realty Group in Valparaiso as an associate broker. He will specialize in the Valparaiso and Duneiand areas. Jeffrey Bartholomew, CIC, CPCU and president of Bartholomew Son in Valparaiso, has completed the annual continuing education requirement of the Society of Certified Insurance Counselors. Four CPAs from the Calumet Region attended the Indiana CPA Society Leadership Cabinet and Emerging Leaders Alliance biannual meeting at the Marriott in downtown South Bend. The program aims to help the Society plan and forecast the future of the profession.

The Lake County board member who attending the meeting was Robert Swartz, CPA, CITP, Swartz, Retson P.C., Merrillville. The Lake County Leadership Cabinet members who attended the meeting were: Frederick Arand, CPA, Ancilla Systems, St. John; Louis Stratton, CPA, Meador Stratton, LLP, Highland; and Curtis Whittaker, CPA, Whittaker Gary. The following physicians recently joined the medical staff at Advocate South Suburban Hospital in Hazel Crest. Board-certified obstetriciangynecologist Mary Burke, M.D., attended medical school at Creighton University in Omaha, Neb.

She completed a residency at Henry Ford Hospital in Detroit. Burke practices in Chicago Heights. Board-certified cardiologist Mohamad Martini, M.D., attended medical school at the University of Damascus School of Medicine in Damascus, Syria. He completed an internship and residency at Mercy Hospital and Medical Center in Chicago. He completed a fellowship at Brigham and Women's Hospital and Harvard Medical School in Boston.

Dr. Martini practices in Hazel Crest. To submit an item for Professionals on the Move, send information and a photo, if available, to 601 W. 45th Munster, IN 46321, e-mail to businessnwitimes.com or fax to (219) 933-3249. Faxed photos will not be published.

east of Taft). Contact Beverley Steinman at catchbevsbcglobal.net or (219) 730-1262. Info: www.nwinetworking.org. JUNE 11, 12 AND 17 INDIANAPOLIS Three seminars in June will address various legal issues encountered by human resources professionals: "Fundamentals of FMLA," from 12:30 to 4 p.m. June 11 at the Indiana Chamber Conference Center at 115 W.

Washington Suite 850S in downtown Indianapolis. Cost: Indiana Chamber members, $199; nonmembers, $224. "Advanced FMLA," from 8:30 a.m. to 4:30 p.m. June 12 at the Indiana Chamber Conference Center.

Cost Indiana Chamber members, $299; nonmembers, $324. '14th Annual Employment Law Seminar," from 8 a.m. to 4:15 p.m. June 17 at the Indiana Chamber Conference Center. Cost Indiana Chamber members, $299; nonmembers, $324.

To register for more information, visit www.indianachamber.comconferences or call (317) 264-6885 or (800) 824-6885. To read more calendar, visit www.nwitimes.comtusiness. To include an item in the local business calendar, send event information, time, date, cost and location to: businessnwitimes.com or fax to (219) 933-3249. Rachel Aldrin of Hobart entertains lunchtime guests at Svago Cafe in Dyer. The restaurant offers entertainment a couple of nights a week and plans to begin serving wine within a month, focusing on boutique wines from different vineyards.

JOHN J. WATKINS I THE TIMES old thing Italian-themed cafe Number of employees: 20 Type of business: Full-service restaurant Web site: www.svagocafe.com on boutique wines from different vineyards. "We weren't sure if people in this area were ready for it, but since we've opened, business has been good," Moore said. "It's a lot of hard work but we're really enjoying it-more than we ever expected to. We're getting a lot of positive feedback." THURSDAY SCHERERVILLE A BNI (Business Networking International) business development group meets at 7 a.m.

Thursdays at the Paragon Restaurant at 1545 W. U.S. 30. Call Michael Pelz at (219) 977-2090 for more information. VALPARAISO The Porter County Business League meets at 7 am Thursdays at the Round-the-Clock restaurant, 217 E.

Lincolnway. Contact Kim Michalski at (219) 510-3674 for more information. FRIDAY CROWN POINTHAMMOND TechPoint hosts a free live video feed of its New Economy New Rules briefing, "New Innovation," from 7 to 8:30 a.m. at the Purdue Calumet Entrepreneurship Center in Hammond and the Purdue Technology Center in Crown Point. Registration is required.

For more information or to register, go to www.btlaw.comEvent.asp? EventID721 or contact Deb Hallberg at deb.hailbergbtlaw.com or at (317) 231-7356. MERRILLVILLE Northwest Indiana Networking Professionals meet at 7:15 a.m. Fridays at Towne Center Retirement Community, 7250 Arthur Blvd. (73rd Avenue, BY SHARON PORTA Times Correspondent Like many local residents, Tim and Dawn Moore were tired of eating at the same old chain restaurants. But this entrepreneurial couple decided to take action.

"We wanted to bring something different to the area," Dawn Moore said. "It's all pretty much the same old thing. We had the idea for an Italian cafe that featured healthy food." The couple had both worked in restaurants and also owned their own business. Tom owns a surveillance company where Dawn also worked. "That business was getting pretty self-sufficient and we wanted a new challenge," Moore said.

"We were going to originally do a coffee house here. But as the atmosphere came together, we decided to make it a full-service restaurant." They liked the new complex and the style of the building along U.S. 30. After they chose an Italian theme, they selected the name of Svago, which means to entertain or amuse. The couple worked with a chef to develop an extensive menu of salads, soups, appetizers and paninis, which feature special sauces and unique cheeses.

"We have a health-conscious bizCslendar MONDAY VALPARAISO Northwest Indiana Professional Networking meets from 8 to 9:30 a.m. Mondays at the South Bend Chocolate Cafe, 57 Franklin SLNIPN members meet to network and chat with others who are in career transition. There is no fee. For information, call (219) 464-4861 or e-mail nipnkvworks.org. TUESDAY VALPARAISO Small business operators are invited to Duneiand Chapter of Business Networking International from 7 to 8:30 a.m.

Tuesdays at Strongbow Inn. For information, call Sandy Boland at (219) 926-2505. GARY Managers, business owners and sales professionals are invited to the Indiana Business Professionals Chapter of the Networking Club from 7:30 to 8 a.m. Tuesdays at The Baker's House upstairs meeting room, 6004 Miller Ave. For information, call Tammie Galloway at (888) 263-6926, extl.

HAMMOND The North Lake Chapter of BNI (Business Networking International) meets from 7 to 8:30 a.m. Tuesdays in the Chops Room at Majestic Start Casino's hotel. For more information, call Michael Pelz at (219) 977-2090 or (815) 370-2940. SVAGO CAFE LOCATION: 1103 Joliet Dyer Owners: Tim and Dawn Moore When opened: August 2007 menu," Moore said. "We're always adding new salads and sandwiches.

We didn't want to just go with a typical beef sandwich, we wanted to offer something different." The restaurant offers entertainment a couple of nights a week and plans to begin serving wine within a month, focusing VALPARAISO Business professionals are invited to the Business to Business Development Group from 7:30 to 8:45 a.m. Tuesdays downstairs at the Fifth Third Bank building, 56 Washington St. For more information, call Jack Kinsey at (219) 531-5331. WEDNESDAY SCHERERVILLE The Highland-Griffith chapter of Leads Club meets at 8:15 a.m. Wednesdays at St.

John Township Community Center, 1515 U.S. 30. Call Luba Petryna Balacky at (219) 201-6874 or visit www.leadsclub.com. CROWN POINT Indiana Business Professionals chapter of the Leads Club meets at 7:30 a.m. Wednesdays at Schoop's Restaurant, 1124 N.

Main St. Call Michelle Frey at (219) 662-9729 or e-mail mkmfreyyahoo.com or visit www.leadsclub.com. VALPARAISO The Valparaiso chapter of Leads Club meets at 7:30 a.m. Wednesdays at the Fifth Third Bank, 56 S. Washington St (on the Courthouse square).

Call Barbara Rivera at (219) 7594274 or e-mail efnbarbaol.com or visit www.valpoleads.com..