DEAR BOB: About three years ago, I bought atenancy-in-common (TIC) in a six-unit apartment building. The building is very”upscale.” But the owner couldn’t qualify for a condo conversion dueto lack of enough parking spaces. I knew there was one master mortgage on thebuilding and I was obligated to pay my share of the mortgage and expenses. Weall get along great, everyone pays his or her share every month, and there areno problems. However, now I need to sell my TIC because I am moving to LosAngeles. But I am having great difficulty finding a realty agent to list andsell my TIC. I even tried advertising “for sale by owner” in thenewspaper. Any suggestions? –Wendy R.
DEAR WENDY: A TIC is a poor substitute for a condominiumconversion. I fully understand all the reasons a property owner would create aTIC instead of a condo.
Purchase Bob Bruss reports online.
But the result is a very constrained TIC resale market. Manyreal estate brokerages refuse to accept TIC listings because of the difficultyfinancing such resales. Check the newspaper classified ads and try to find alocal brokerage that specializes in sales of TIC units.
$500,000 HOME-SALE TAX EXEMPTION ONLY AVAILABLE IN YEAR OFSPOUSE’S DEATH
DEAR BOB: My husband passed away on Feb. 1, 2006. Youmentioned in a recent article that surviving spouses need not rush to selltheir principal residence within the same year of the spouse’s death. I plan tosell my house in early 2007 so I can move back to Michigan to be near myfamily. You said the surviving spouse receives a new stepped-up basis on atleast 50 percent of a home’s market value (100 percent in community propertystates). As a surviving spouse who inherited my late husband’s half of ourhome, when should I get this evaluation made? Also, since my husband passedaway in February 2006, can I still file a joint tax return for 2007 to claim a$500,000 home-sale tax exemption? –Judy L.
DEAR JUDY: You should obtain evidence now of the home’smarket value as of the date of your husband’s death. A professional appraisalis best.
You can only file a joint income tax return in the year ofyour husband death. That is 2006 in your situation. No, you cannot file a jointtax return for 2007, nor can you claim a $500,000 principal residence sale taxexemption later than Dec. 31, 2006. Please consult your personal tax adviser toclarify your situation.
WHERE TO OBTAIN A HOME EQUITY LINE OF CREDIT
DEAR BOB: You often recommend homeowners should have asubstantial home equity line of credit just in case of an emergency need forcash. Where can I obtain such a credit line? –Karl A
DEAR KARL: Virtually every bank offers home equity lines ofcredit, known as a HELOC. If you have good income and good credit, you shouldpay an adjustable rate of interest at the prime rate or lower. The annual feeis usually $50. You only pay interest when you use part or all the moneyavailable from your HELOC.
The new Robert Bruss special report, “Pros and Cons ofFast and Slow House Flipping for Big Profits,” is now available for $5from Robert Bruss, 251 Park Road, Burlingame, CA 94010 or by credit card at1-800-736-1736 or instant Internet delivery at
(For more information on Bob Bruss publications, visit his
Real Estate Center).
Copyright 2006 Inman News