Outer Banks Community Forum

Coastal Gardening Festival

Sabrina Gordon — Fri, 16 May 2008 15:24:02 +0000

The Coastal Gardening Festival will be held on Saturday, May 17 from 10a.m. til 3p.m. at the Outer Banks Arboretum and Teaching Garden that is adjacent to the Baum Center on Mustian street in Kill Devil Hills. There will be plant sales, demonstrations, children’s activities, vendors, a raffle, food and lots more! The event will be held rain or shine.

The festival is sponsored by and benefits the NC extension master gardeners. If you would like more information please call the extension office at 473-4290.

Son of the last lighthouse keeper at the Bodie Island Lighthouse will be signing his book

Sabrina Gordon — Tue, 13 May 2008 17:40:06 +0000

John Gaskill is the son of the last lighthouse keeper of the Bodie Island Lighthouse and has written a book called John Gaskill Remembers. He will be at the Bodie Island Visitor Center on Tuesday, May 13 from 10a.m. to 1p.m.

In the book Gaskill tells many wonderful stories of growing up on the Outer Banks and of living at the lighthouse;such as painting the lighthouse by hand and putting out the flame of the lighthouse, and also of the wreck of the schooner Laura Barnes. Gaskill who is now 92 is a wonderful piece of history of the Bodie Island Lighthouse.

The book signing is sponsored by Eastern National, who is a cooperating association with the National Park Service at Cape Hatteras National Seashore.

May Calendar and Hours for the Elizabethan Gardens on Roanoke Island

Sabrina Gordon — Sun, 11 May 2008 13:35:31 +0000

May (Hours: 9 am – 6 pm daily)

May 10
Mother’s Day Weekend Plant Sale
Buy a plant or gift for your mom at our Mother’s Day Plant Sale, Saturday and Sunday, May 10th and 11th.

May 11
Mother’s Day Weekend Plant Sale
Buy a plant or gift for your mom at our Mother’s Day Plant Sale, Saturday and Sunday, May 10th and 11th.

May 14
Quarterly Meeting of the Elizabethan Gardens Board of Governors
The Elizabethan Gardens Meeting Hall

May 15
Quarterly Meeting of the Elizabethan Gardens Board of Governors
The Elizabethan Gardens Meeting Hall

May 29
Roanoke Island House and Garden Tour
The Elizabethan Gardens and Roanoke Island Garden Club invite you to The 2008 House and Garden Tour on Thursday, May 29th, from 9 a.m. to 4 p.m. The $25 admission will provide access to island homes and their gardens, and special programs at The Elizabethan Gardens. All proceeds benefit The Elizabethan Gardens.

Great Events on Roanoke Island in May

Sabrina Gordon — Mon, 05 May 2008 20:24:28 +0000

May

History, Arts and Fun – All Rolled Into One!
May 1 - 31, 2008
Enjoy daily programs aboard the Elizabeth II, in the Settlement Site and in the interactive Roanoke Adventure Museum. A docudrama in The Film Theatre entitled “The Legend of Two- Path,” art shows monthly in The Art Gallery, gifts at The Museum Store, picnic areas, marsh-side boardwalks, a fossil pit, a host of friendly interpreters and other daily scheduled events.Don’t miss the Roanoke Island Maritime Center, just a block away, that features a working boathouse and the Roanoke Marshes Lighthouse.The screw-pile light is a reproduction of one that stood near the site. View the permanent display on the history of the structure. Hours vary seasonally for both attractions. For more information call (252) 475-1500.

Roanoke Island Maritime Center
May 1-31
The Roanoke Island Maritime Center will offer a variety of maritime skills, boatbuilding, sailing programs and workshops throughout the year in the Creef Boathouse. Visit the Roanoke Marshes Lighthouse and learn the history of the screw-pile lights. Times and dates vary seasonally. Call (252) 475-1750 for current programming schedules.

11th Annual Mollie Fearing Memorial Art Show
May 5-27
Art Gallery
The Dare County Arts Council sponsors the Mollie Fearing Memorial Art Show through Roanoke Island Festival Park. It is an open entry exhibition that features two- and three-dimensional art from community artists on all levels. It is held in honor of the former mayor of Manteo, Mollie Fearing, who was instrumental in starting the first art society on Roanoke Island. The show generally includes paintings, sculpture, ceramics, photography, fiber, jewelry and mixed media art. An opening reception will be held on Sunday, May 4 from 4 to 6 p.m. It is free and open to the public. The show may be seen Monday- Friday from 9 a.m. to 5 p.m. For more information call (252) 475-1500

Battle of the Bands
May 10 from 6-9 p.m.
Outdoor Pavilion
The event is sponsored by Dare County Parks and Recreation Department .Tickets are $5.00 and may be purchased at the gate the night of the event. Bands form local schools will be participating. For more information: Katherine Irby at kats1970@yahoo.com.

March of Dimes- Walk America 2008
May 17 at 8 a.m.
Outdoor Pavilion
The March of Dimes will sponsor this event. Registration at 8 a.m. and the walk begins at 9 a.m. There will be music, team photos, food, and face-painting- a fun-filled family day! The five-mile walk takes participants through historic Manteo, followed by a picnic. For additional information call (757) 361-0000 or 1-800-732-7097.

Outer Banks Beach Music Festival
The Best Party at the Beach”
May 25 gates open at11-6:30 p.m.
Outdoor Pavilion
Ready for some fun in the sun? Our annual festival celebrating beach music and the coming summer season. Big crowds gather on the spacious lawn of the pavilion. The best beach music bands take the stage and play all day long. This year we have performing: The Band of Oz, The Craig Woolard Band, The Coastline Band and Maurice Williams and the Zodiacs. Kick off your shoes and dance on the lawn. Bring plenty of sunscreen and blankets or folding chairs. Food and beverages, including beer, are available. Tickets can be purchased in advance or the day of the event, held on the Sunday of Memorial Day weekend. They are $20 in advance and $25 the day of the event. For more event information and to Save money on your tickets, visit our website at: www.OuterBanksBeachMusicFestival.com

4th Sunday @ 4 pm
Mojo Collins in Concert
May 25 at 4 p.m.
Art Gallery
North Carolina’s own Rock, Folk and Blues Legend & Premier Songwriter-Performer and recipient of 1999-2000 North Carolina Arts Council Music Fellowship in Songwriting, Mojo Collins has honed a unique musical talent during five decades of performance and experience. A renowned guitarist, often compared to Jim Hendrix, Dickey Betts and Rick Derringer, his repertoire of original music includes blues, rhythm and blues country, folk, jazz, classical and easy listening. Mojo Collins is a concert class performer, with over 300 original songs to his credit. The price of admission is included in the general admission price to the Park. Call (252) 475-1500.

Megan Rubino: Recent Watercolors
May 30-June 30
Art Gallery
Megan Rubino is a Kill Devil Hills watercolorist who will be showcasing original work that focuses on uplifting subjects with vibrant, island colors. Rubino’s subjects traditionally include island landscapes complete with beach umbrellas, old cars, surfboards, sandals, palm trees, dunes and sea. Her touch with the paintbrush is as light as her spirit, which generates uplifting sayings that she creates for her line of greeting cards and prints. An opening reception will be held on Sunday, June 1, from 4- 6 p.m. It is free and open to the public. The show may be seen Monday- Friday from 9 a.m. to 5 p.m. For more information call (252) 475-1500.

Golden Dragon Acrobats from China

Present CIRQUE D’OR
May 31 at 8 p.m.
Outdoor Pavilion
The Golden Dragon Acrobats represent the best of a time honored tradition that began more than twenty-five centuries ago. The Golden Dragons are recognized throughout the United States and abroad as the premiere Chinese acrobatic touring company of today.
The reputation of the company is solidly rooted in a commitment to the highest of production values and an attention to artistic details that is unparalleled in the art form. World renowned impresario Danny Chang and choreographer Angela Chang combine award-winning acrobatics, traditional dance, spectacular costumes, ancient and contemporary music and theatrical techniques to present a show of breathtaking skill and spellbinding beauty. 2008 will mark the highlight of the Golden Dragons’ touring career with their 30th anniversary United States tour. The year will also see the company’s home nation of China host the 2008 summer Olympics in Beijing with the theme slogan “One World One Dream”. The reflection of that slogan epitomizes the essence and the universal values of what all of us who love the arts hope to foster — Unity, Friendship, Progress, Harmony, Participation and Dreams. The Golden Dragons remind us that we belong to the same world and we share the same aspirations and dreams.The performance is free and open to the public.This program is sponsored and funded, in part, by the generous support of Dominion Power Call for more information (252) 475-1500.

Outer Banks Mortgage Rate Update 5-3-08 form Shane Cook

Shane Cook — Sat, 03 May 2008 15:59:01 +0000

Good news this week. First the FED lowered Federal Interest Rates by another .25% yesterday, taking Prime Rate down to 5%. The big news on this is when he lowered the rate he said “The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time.” This comment, along with other positive economic data (jobless claims are down, Dollar is moving up again) is making many economists believe that we are coming out of the woods on our mini-recession. Only time will tell, but this week there is a large sense of optimism from all the headlines I am reading (see articles below.) Mortgage interest rates are a hair lower this week, but I expect some small increases into next week from the rally of the stock market the last few days. Have a great sunny weekend and don’t hesitate to contact me if I can help in any way. Always available 207-2665

GLOOM LIFTING? Employers cut fewer jobs in April, jobless rate falls…
Sense of Optimism Begins to Ease Onto Wall St…
Dow crosses 13,000; Dollar UP…

Shane Cook

Senior Mortgage Specialist

800-256-7887/Cell 252-207-2665

“A pre-qualification you can trust”

Total Loan Denial Letters Issued After Pre-qualification 2005, 2006, 2007, 2008: 0

All quotes listed below only require 10% down, and have no private mortgage insurance (PMI), for qualified borrowers. Quotes listed below are for 30 day locks. Add .125% of a percent for Interest Only.

Conforming: loan amount less than $417,000

40 Year Fixed: 6.125% 1 Origination

30 Year Fixed: 5.75% 1 Origination

30 Year Fixed: 6.0% 0 Origination

15 Year Fixed: 5.375% 1 Origination

3 Year ARM: 5.5% 1 Origination

5 Year ARM: 5.875% 1 Origination

100% Financing Government Loans: Primary Residences Only

VA 30 Year Fixed: 6.25% 0 Origination

FHA 100% Genesis: 6.25% 0 Origination

FHA 97% Financing: 6.0% 0 Origination

Farmers Home (USDA): 6.0% 1 Origination

Jumbo Loans: loan amounts greater than $417,000 (Primary and Second Homes)

Portfolio 5 Year ARM: 5.5% 1 Origination

Portfolio 7 Year ARM: 5.75% 1 Origination

****Rates change daily, and must be locked in before they can be guaranteed until they are locked in. First Horizon has an application fee of $300 for conforming loans and $370 for Jumbo loans. No hidden fees, or pre-payment penalties of any kind, and I have never changed a rate on a customer in my career as a loan officer once it has been locked in. First Horizon is an equal opportunity lender.

Shane Cook

Senior Mortgage Specialist

First Horizon Home Loans

(Office) 800-256-7887

(Cell) 252-207-2665

(Fax) 866-669-5871

The Food Pantry on Hatteras Island needs Donations

Sabrina Gordon — Fri, 02 May 2008 22:30:06 +0000

The Hatteras Island Food Pantry needs any kind of donation, but the mainstays they really need right now are peanut butter and jelly, canned meats, Spaghetti and sauce, cleaning supplies, personal hygiene products and pet supplies. Donations may be made at Locomotion’s Changing Tide Thrift Shop in Buxton.

Donations must be made on Tuesdays and Thursdays from 2-7p.m., on Wednesday, Friday and Saturday from noon to 5 p.m. or at the Buxton United Methodist Church on Tuesday-Friday from 9a.m. til noon. If you would like more information please call 995-4603.

OBX Mortgage Rate Update

Bernie Trevillian — Wed, 30 Apr 2008 17:25:29 +0000

OBX Mortgage Rate Update
BEACH MORTGAGE CO., INC

LOAN OFFICERS:
BOB KRAINIAK
BERNIE TREVILLIAN
RANDI EURE
JOY WHITE
NATALIE DUTT
RICK FOWLER

*****************Current Offerings as of April 29, 2008*****************
(Rate subject to change)
NEVER AN APPLICATION FEE

SUPER JUMBO ARMS
3/1 Program 5/1 Program
Interest Only
63/4+0 71/8+0
61/2+.50 67/8+.50
63/8+1 65/8+1

95% Primary Homes
80% Secondary Homes $650,000 - $1 Million
(Please Call for Quote)

Lot Loans

90% LTV (80% LTV off-road)
Interest Only Loans
No Loan Limits
48 Hour Approval
1 Total Point ($600.00 Minimum)
1 Yr, 3 Yr, 5 Yr., Balloons also available
(Please call for Quotes)

(Good in Four Wheel Drive Territory)

Jumbo Loans

30 Year: 15 Year:

73/8+0 63/4+0
71/8+.50 61/2+.50
67/8+1 63/8+1

*Available on Primary & Secondary Homes
** Call for LTVs

Construction / Permanent Loans

Interest Only Payments
Quick Closings
Extended Rate Lock with Float Down

* Call for more details

ARM Loans

3/1 ARM: 5/1 ARM: 7/1 ARM:

53/4+0 61/8+0 63/8+0
51/8+1 51/2+1 55/8+1

Primary and Second Homes to 417,000
**** Call for Quotes on Jumbo ARMS****
Investor Loans*

Fixed Rates/Arms

90% to 650,000
80% to 1,000,000
70% LTV up to 1,500,000

* Call for current rates

Conforming Loans*
30 Year: 15 Year:
6+0 51/2+0
57/8+.50 53/8+.50
53/4+1 51/4+1
95% Primary Homes to $417,000
95% Second Homes to $417,000
***VA loan Rate- 53/4+ 0 + 0 30 yr fixed***
*20 Year & 10 Year Loans Available*
Additional Programs

100% Primary Home Buyers
NO Doc/ Low Doc Loans
80/20 No PMI Loans
Pay Option Arms- 1% Rate
95% Second Homes!!!!!!!

CALL TODAY FOR MORE DETAILS

** ALL QUOTES ABOVE INCLUDE ORIGINATION FEE**
RESORT MORTGAGE SPECIALIST FOR
COASTAL CAROLINA

Calendar of Events on the Outer Banks for the month of May

Sabrina Gordon — Tue, 29 Apr 2008 12:00:30 +0000

May 1 - 31
Roanoke Island Festival Park Events
Roanoke Island Festival Park is an interactive family attraction that celebrates the first English settlement in America. The centerpiece of the 25-acre island park adjacent to Manteo, North Carolina, is Elizabeth II, a representation of one of the seven English ships from the Roanoke Voyage of 1585. Costumed Elizabethan sailors greet visitors and help them experience sixteenth century seafaring life. Also visit the Settlement site, Roanoke Adventure Museum and see the Legend of Two-Path film. Events are scheduled throughout the year in our indoor Film Theatre and our Outdoor Pavilion. Admission is charged. The on-site Art Gallery, fossil pit, Museum Store, Outer Banks History Center and marsh-side boardwalks are free and open to all. Hours vary seasonally. For additional information, call (252) 475-1506, (252) 475-1500 or visit roanokeisland.com

May 1 - 31
North Carolina Maritime Museum on Roanoke Island
The NC Maritime Museum on Roanoke Island will offer a variety of maritime skills, boatbuilding, sailing programs and workshops throughout the year in the Creef Boathouse. Visit the Roanoke Marshes Lighthouse and learn the history of the screw-pile lights. Times and dates vary seasonally. Visit obxmaritime.org or call (252) 475-1750 for current programming schedules.

May 1 - August 28
Pilates on the Duck Town Green
“Fit and Flexible” a beginning Pilates class will be held on the Duck Town Green on Thursdays at 7:30 a.m. from May 1 through August 28. The class is geared to all fitness levels. Participants should bring a yoga/Pilates mat or towel for the class. Patti Waller will be the instructor. For more information please call (252) 255-8126.

May 2
First Friday
Downtown Manteo Waterfront. 6 p.m. - 8 p.m. First Friday is a fun-filled, family oriented street festival held the first friday of each month. Join us for live music, magic, artisans, actors in period dress, a rockclimbing wall and more. For more information visit firstfriday-roanokeisland.com

May 2
Pound Puppy
For more information please call (252) 473-2094 or visit puparazzi.tripod.com

May 2
First Friday Pet Parties
5 p.m. - 7 p.m. Costume contests, games, treats and fun for pets and their people. Call (252) 473-2094 or visit puparazzi.tripod.com for party theme.

May 2 - 4
No Time For Sergeants
Theatre of Dare, your community theatre for the Outer Banks, presents No Time For Sergeants! Join the hilarious misadventures of hillbilly Will Stockdale, drafted into the U.S. Air Force, as he combines crushing naivety, stubbornness, and amazing physical strength. Will the Air Force survive the experience? This was Andy Griffith’s breakthrough role on stage and screen. Friday & Saturday 7:30 pm, Sunday 2 pm. COA/Old Manteo Middle School Auditorium. Tickets are $13 in advance, $15 at the door, $8 for students. Visit theatreofdare.org or call (252) 261-4064 for info.

May 3
Carolina Outdoors OBX Surf Kayak Competition
1st Street Beach Access, Kill Devil Hills. Come see the best sea kayakers compete! Novice kayakers as well as members of the Easter Sea Kayakers Association show what they got! Kitty Hawk Kites will also be on hand to demo the newest kayaks for 2008. For registration visit kittyhawk.com or call 1-877-FLY-THIS.

May 5 - 27
11th Annual Mollie Fearing Memorial Art Show
Features an eclectic mix of local art. On display at the Art Gallery at Roanoke Island Festival Park. Held in memory of Mollie Fearing, one of the founders of the root organization from which DCAC arose. In 1975 a group of Dare county residents met at the home of Mollie Fearing where they set about founding an organization that would introduce thousands of school children and adults to music, dance, theatre, painting, sculpture, poetry and literature. The organization would initially be called the Sea and Sounds Arts Council and later, the Dare County Arts Council. Mollie Fearing was elected president of the Arts Council in 1975 and was a vital supporter and advocate of the arts until the time of her death on September 3, 1997. Mollie’s contributions to the community were numerous, from serving as mayor for the Town of Manteo, to serving on the board of the Roanoke Island Historical Association, to her dedication to the arts. Mollie’s legacy in our community remains strong to this day. Open to members and residents. Cash awards. Drop off and pick up dates for artwork will be announced at a later date. Opening Reception: Sunday, May 4, 2008 4-6 p.m. Please log on to darearts.org or call 252-473-5558 for more information.

May 10
25th Annual Yuengling Nags Head Woods 5K footrace and Village Realty 1-Mile Family Fun Run
Nags Head Woods. Not your typical walk down the beach, the dirt trails of the preserve weave through one of the best remaining examples of mid-Atlantic maritime forest and deciduous hardwoods. Get details at outerbankskiwanisclub.org

May 14 - 17
Hatteras Village Offshore Open
For more information please call (252) 986-2579.

May 16 - 19
Kitty Hawk Kites 36th Annual Hang Gliding Spectacular
Jockey’s Ridge State Park, Nags Head. 10 a.m. to 4 p.m. Come see the best sport hang gliders from around the world compete on the dunes of Jockey’s Ridge State Park. During this competition there will also be activities for the whole family taking place across the street from Jockey’s Ridge State Park at Kitty Hawk Kites. Activities include: climbing wall, face painting, kite making, etc. For more information call 1-888-FLY-THIS or visit kittyhawk.com

May 17
March of Dimes - Walk America 2008
Outdoor Pavilion at Roanoke Island Festival Park. The March of Dimes will sponsor this event. Registration at 9 a.m. and the walk begins at 10 a.m. There will be music, team photos, food, and face-painting - a fun-filled family day! The five-mile walk takes participants through historic Manteo, followed by a picnic. For additional information call (757) 361-0000 or (800) 732-7097.

May 17
6th Annual Coastal Gardening Festival
The Outer Banks Arboretum and Teaching Garden, Kill Devil Hills. Vendors, speakers, educational booths, plant sales and much more! For more information please call (252) 473-4290.

May 22 - 23
Kitty Hawk Kites Kiteboarding Center Demo Days
MP 15.5, Kitty Hawk Kites Kiteboarding Center, Nags Head. 10 a.m. to 4 p.m. Check out all the newest kiteboarding gear for 2008! Kitty Hawk Kites professionals will be on hand as well as industry reps and professional kite boarders to answer all your questions. This is a great opportunity to compare new equipment side-by-side. As always, Kitty Hawk Kites professionals will be doing power kite demos. For more information visit kittyhawk.com or call 1-877-FLY-THIS.

May 25
Outer Banks Beach Music Festival
11 a.m. - 6:30 p.m. Ready for some fun in the sun? Our annual festival celebrating beach music and the coming summer season. Big crowds gather on the spacious lawn of the pavilion. The best beach music bands take the stage and play all day long. This year we have performing: The Band of Oz, The Craig Woolard Band, The Coastline Band and Maurice Williams and the Zodiacs. Kick off your shoes and dance on the lawn. Bring plenty of sunscreen and blankets or folding chairs. Food and beverages, including beer, are available. Tickets can be purchased in advance or the day of the event, held on the Sunday of Memorial Day weekend. For more event information and to Save money on your tickets, visit outerbanksbeachmusicfestival.com

May 29 - August 28
Pawgaritaville at Puparazzi
2 p.m. - 4 p.m. Tropical themed party for pampered pets and their people. Costume contests party games, refreshments and free “pawgaritas” for the dogs. For more information call (252) 473-20994 or visit puparazzi.tripod.com

May 29
The Lost Colony Preview Night
Waterside Theatre. Witness this final dress rehearsal before the opening night of the production. Tickets sold at a special price for this pre-season opening event. For tickets or information, call (252) 473-3414 or visit thelostcolony.org

May 30 - June 30
Megan Rubino: Recent Watercolors
Art Gallery at Roanoke Island Festival Park. Megan Rubino is a Kill Devil Hills watercolorist who will be showcasing original work that focuses on uplifting subjects with vibrant, island colors. Rubino’s subjects traditionally include island landscapes complete with beach umbrellas, old cars, surfboards, sandals, palm trees, dunes and sea. Her touch with the paintbrush is as light as her spirit, which generates uplifting sayings that she creates for her line of greeting cards and prints. An opening reception will be held on Sunday, June 1, from 4- 6 p.m. It is free and open to the public. The show may be seen Monday- Friday from 9 a.m. to 5 p.m. For more information call (252) 475-1500 or visit roanokeisland.com

May 30 - August 18
71st Anniversary Season of The Lost Colony
Waterside Theatre, Roanoke Island. See an American original drama found only on Roanoke Island in North Carolina’s Outer Banks. Experience a 423 year-old mystery performed under a canopy of stars. Performances are nightly at 8:30 p.m., Sunday - Friday (no performance on July 4th). For tickets: (252) 473-3414 or thelostcolony.org

May 30 - August 18
Backstage Tours - The Lost Colony
Waterside Theatre, Roanoke Island. The ultimate insider treat! Perfect for groups or individuals. The 45-minute walking tour includes exclusive views of the theatre, costume shop and props. Tours are nightly at 6:30 p.m. and limited to the first 50 guests. Reservations required. Tickets are $5 per person. For tickets: (252) 473-3414 or thelostcolony.org

May 31
Kitty Hawk Fire Department Golf Tournament
Click here for more detailed information and registration form.

May 31
Golden Dragon Acrobats from China Present CIRQUE D’OR
8 p.m. Outdoor Pavilion at Roanoke Island Festival Park. The Golden Dragon Acrobats represent the best of a time honored tradition that began more than twenty-five centuries ago. The Golden Dragons are recognized throughout the United States and abroad as the premiere Chinese acrobatic touring company of today. The reputation of the company is solidly rooted in a commitment to the highest of production values and an attention to artistic details that is unparalleled in the art form. World renowned impresario Danny Chang and choreographer Angela Chang combine award-winning acrobatics, traditional dance, spectacular costumes, ancient and contemporary music and theatrical techniques to present a show of breathtaking skill and spellbinding beauty. 2008 will mark the highlight of the Golden Dragons’ touring career with their 30th anniversary United States tour. The year will also see the company’s home nation of China host the 2008 summer Olympics in Beijing with the theme slogan “One World One Dream”. The reflection of that slogan epitomizes the essence and the universal values of what all of us who love the arts hope to foster — Unity, Friendship, Progress, Harmony, Participation and Dreams. The Golden Dragons remind us that we belong to the same world and we share the same aspirations and dreams. Call for more information at (252) 475-1500.

Last week in May - First 2 weeks in August
OBX Daredevils Baseball
(252) 202-1842. obxdaredevils.com

New York Pizza Pub to hold Annual Fundraiser

Sabrina Gordon — Mon, 28 Apr 2008 13:30:58 +0000

An all-you-can-eat pizza dinner will be on Tuesday, April 29 from 4 to 8:30p.m. at the New York Pizza Pub in Nags Head for the Virginia Dare Business and Professional Women’s Club. Tickets are $12 for adults and $9 for kids 12 and under. Kids 3 and under are free. The tickets include an all-you-can-eat gourmet pizza and salad bar. Tickets are available at the door and also through Fran Kapinos at 202-8467.

There is a 50/50 raffle and prize drawings throughout the evening that are new this year. All proceeds will benefit the Virginia Dare Business and Professional Women’s scholarship fund that provides financial assistance to grown women who are returning to school to advance their schooling. Over the years the BPW scholarship women have used their awards to pursue training in medical, educational, professional, artistic and technical.

The VDBPW meets every month with feature presentations. New members and guests are welcome. For more information call Donna Bissell at 202-1216.

Realty Exchange News Spring 2008

Bill Horan — Sat, 26 Apr 2008 11:33:17 +0000

Exchange News
Spring 2008

	*Realty Exchange Corporation*
	“Your Nationwide Qualified Intermediary for Tax-Deferred Exchanges since 1990″

Revenue Procedure 2008-16

Last year the IRS promised to give us more guidance on vacation homes. Revenue Procedure 2008-16 is an effort in this direction. The purpose of the Revenue Procedure is to provide a Safe Harbor under which the IRS will not challenge whether a dwelling unit with limited personal use qualifies as property held for productive use in a trade or business or for investment.

This Revenue Procedure is just a Safe Harbor. An exchange may fall outside these specific parameters and yet still meet the statutory requirements for an exchange. A taxpayer utilizing the Safe Harbor in this Revenue Procedure also must satisfy all other requirements for a like-kind exchange under Section 1031 and the regulations there under. The revenue procedure is effective for exchanges of dwelling units occurring on or after March 10, 2008. We have the revenue procedure 2008-16 on our web site at www.1031.us/IRS.

Related Party Private Letter Rulings

The IRS has been busy over the past few years issuing several Private Letter Rulings (PLRs) pertaining to related parties. Going back to 2004, the IRS provided taxpayers with PLR 2004-0002, and more recently, PLR 2006-16005 and PLR 2008-10016 reaffirming the same position. Under these rulings, if an exchangor sells to an unrelated party and buys from a related party seller who is also doing an exchange and not cashing out, Section 1031(f) (the related party rules) will not make the exchange immediately taxable because the transaction does not have a tax avoidance purpose.

Taken together the PLRs emphasize two basic principles. The first principle is that if the related party also does an exchange of his or her relinquished property (which is also the taxpayer’s replacement property), then the taxpayer may do an exchange with the related party. The second principle is that while 1031(f) does not apply immediately, the two-year holding period still applies to both parties, and they must hold their replacement properties for two years after the acquisition. The most important test to determine if 1031(f) applies is if there is a basis shift along with a cashing out by one of the parties in the related party group. In addition, in PLR 2006-16005, the IRS has ruled that if the taxpayer receives cash boot in the transaction from the QI, only the excess cash received would be taxed. As with any PLR, the holdings only apply to the specific taxpayer and the specific set of facts.

Basis Shifting

Section 1031(f) was added to the Internal Revenue Code by Congress in 1989 to avoid basis shifting between related parties in an exchange. What is basis shifting? Let’s use an example of a basis shift between Father and Son. Father has owned an apartment building for many years which is now worth $1 million. The apartment building has a low tax basis of $300,000 (cost less depreciation). If Father sold the property today, he would recognize gain and have a very large tax bill. Father does not like to pay taxes. Son just bought an office building for $1 million. Father wants to sell the apartment building but does not want to pay taxes, and among the family, they know the office building is a great investment. Father exchanges the apartment building worth $1 million directly with Son for the office building worth $1 million. Father now owns an office building worth $1 million with a $300,000 basis. Son now owns an apartment with a $1 million basis. Son immediately sells the apartment for $1 million. Son would have no taxes due since his basis was $1 million and the sale was $1 million. Father exchanged the $1 million apartment with son for the $1 million office building and defers all the tax. Among the family they shifted the basis. They kept the office building, got rid of the apartment building, and didn’t pay taxes. Section 1031(f)(1) of the Code provides that a taxpayer can exchange with a related person and there will be no recognition of gain if both parties hold the properties for two years. Section 1031(f)(2)(C) of the Code provides “with respect to which it is established to the satisfaction of the Secretary that neither the exchange nor such disposition had as one of its principal purposes the avoidance of federal income tax.” By doing an exchange among related parties, they sold the property they wanted to sell and kept the property they wanted to keep and didn’t pay taxes. If Son had kept the apartment building for two years everything would have been fine. In a recent PLR 2007-30002, the IRS analysis was revealed on a basis shift. To modify our example, if Son had a very low basis in the office and exchanged with Father, who also had a very low basis, and then Son immediately sold the property – what would the tax bill be? If Son had a larger tax bill than Father would have paid if Father had sold – the IRS would allow the transaction – i.e. there was no tax avoidance purpose. Among the related parties, they paid just as much tax as if Father had just sold the property.

Two Years After Spouse Dies

Under the previous rules, a surviving spouse only had until the end of the year of death to sell the primary residence and claim the $500,000 exemption. In late December 2007, the President signed H.R. 3648. This legislation includes a section which allows a surviving spouse to claim the maximum $500,000 if the home is sold within two years after the date of the spouse’s death. Other tests have to be met as well. This section applies to sales after December 31, 2007.

Exchangor and LLC, PLR 2008-07005

In this PLR, the IRS explicitly approved an agreement in which the taxpayer/exchangor proposed to acquire replacement property as a single member LLC in a like-kind exchange by acquiring 100% of the interest in a multimember limited partnership (LP) that owned the replacement property. The IRS ruled that the taxpayer would be treated as having acquired the real property owned by the LP. The taxpayer will own the LP as a disregarded entity.

This information has been copied from the FEA Capital Update, dated Feb. 27, 2008. As always with any PLR, the ruling cannot be cited as a precedent. However, the ruling is useful for the purpose of demonstrating the current thinking of the IRS on this important subject.

Tax Free Exchanges Computer Course

Have you thought about taking a like-kind exchange computer course? For a number of years Ed Horan’s Tax Free Exchanges on-line course has been available from CompuTaught and through local real estate schools. A recently updated version is now available — go to www.careerwebschool.com and select the state you desire. The course is available on-line or in CD-ROM format. This course is also included in some on-line state renewal packages available for real estate agents to meet their continuing education requirements. For more information on the computer course, call CompuTaught at 1-888-553-1267.

Realty Exchange Corporation
Call Bill Horan, CES® or Cindy Dove, CES® at 800-795-0769
Trust your exchange to a Certified Exchange Specialist®

14540 John Marshall Highway, Suite 207, Gainesville, VA 20155
office 703-754-9411 or 800-795-0769 fax 703-754-0754
Contact Bill Horan, CES® or Cindy Dove, CES® by Email
www.1031.us

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Bonded and Insured

This publication is designed to provide accurate information on tax-deferred exchanges.
The publisher is not engaged in rendering legal or accounting services. If legal or tax advise is required the services of a competent professional should be sought.