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12C — June 26 - July 16, 2015 — Mid-Year Review — M id A tlantic
Real Estate Journal
A uction
Results of the March 4, 2015 and November 12, 2014 Online Only Absolute Auctions Warner Real Estate & Auction sells 45 NJ homes for USDA, recovering $2.443 million
W OODSTOWN, NJ — Warner Real Estate & Auction
within 24 hours of the auc- tion’s conclusion. The two online auctions generated a total of $2,443,811 for USDA, successfully mitigating the losses of 45 loans. The successful bidders pur- chased the properties “as is,” but with a deed restriction in place which would be released upon submission of a New Jersey certificate of occupancy or a certificate of compliance pursuant to the New Jersey building sub code. Howard Henderson , State Direc- tor, New Jersey State Office, USDA - Rural Development
thanked Warner for their ef- fective efforts. “Thanks for the great job!” said Henderson.
“It was a fantastic auction!” affirmed Neal Hayes , NJ Housing Program Director. n partner(s) as consideration for their partnership interests. If at least one payment under the note is to be received in the year following the exchange, then the gain associated with the note will be taxed under the Section 453 installment method, and recognized only when the actual payments are received by the departed partner(s). Exchanges followed by contribution When an individual com- pletes an exchange and then immediately contributes the replacement property to an entity, or when an entity ex- changes property immediately after receiving it as a contri- bution, a holding period issue could arise. Such an issue was resolved in the taxpayer’s favor in the Magneson case, which involved an exchange by an individual, followed im- mediately by a contribution of the replacement property to a general partnership. Magne- son provides useful authority against challenge by the IRS, and the same logic was applied at the state level in the Marks in Oregon, although its applica- tion in other states is not clear. Election under section 761 As stated above, partner- ship interests are specifically excluded from the application of Section 1031. A very narrow exception applies to a partner- ship that has elected, under Section 761(a), not to be subject to the partnership taxation provisions of Subchapter K. The election applies only to a partnership: (i) for investment purposes only and not for the active conduct of business; (ii) where the partners hold title to the property as co-owners; (iii) where each owner reserves the right to separately take or dispose of his or her share of the property; and (iv) which has no active trade or business. If a partnership makes such an election, a partnership interest will be treated as an interest in the underlying assets, and can be exchanged under Sec- tion 1031. Pamela A. Michaels is an attorney and VP of Asset Preservation, Inc. William F. Webster is a VP, counsel with Asset Preservation, Inc. n
behalf of USDA Rural De- velopment . The properties were located in ten counties throughout New Jersey and stretched fromSussex to Cape May County. Warner launched two high- ly visible marketing cam- paigns to promote both auc- tions, producing more than 250 inquiries, 206 registered online bidders, 150 active participants and 2,464 total bids. The auction terms and conditions required the suc- cessful buyer to return the executed contract along with the required $5,000 deposit
Company (Warner) , a leader in the acceler- a t ed mar - keting and disposition o f qua l i t y real estate, announced
§1031 Exchanges: Available options. . . continued from page 4C
as a partnership installment note (“PIN”) transaction, re- sults in the gain associated with the “boot” being recog- nized only by the departing partners. In a PIN transaction, instead of receiving cash, the partnership receives an in- stallment note in the amount necessary to cash out the de- parting partner(s). The note is transferred to the departing
Richard Warner
the results of the March 4, 2015 and the November 12, 2014 Online Only Absolute Auctions of 45 New Jersey residential foreclosures on
719 S Broadway Pennsville, NJ 08070
927 Crt Hse So Dennis Rd, Dennis, NJ 08210
Former Michael’s Restaurant and Diner consists of one and partial two-story restaurant building situated on 2.07 +/- acres with 300 ft of road frontage on Broadway(Route 49). The 7379 +/- sf building has 6064 sf on the first floor and 775 sf on the second floor. The layout of the first floor consists of a reception lobby, a 56-seat dining room, a 70-seat center dining room, and a solarium dining room seating 36, for a total seating capacity of 162. The first floor also con- tains a six-fixture ladies room and a six-fixture mens room. The second floor contains an office. Heating is provided by a gas-fired, forced-air system.
BANK OWNED- Like New (5 years old) 1-Story 4475 +/- sf, wood frame construction 3 unit retail center condominium with 22 car macadam paved parking lot, concrete bumpers, concrete curbs, sidewalks, walk- ways, road signs, two curb cuts for ingress/egress situated on a professionally landscaped one acre lot. The floorplan consists of the right side (closest to SR 47) unit #1 is 1000 sf with open area and rest room, the middle unit #2 is 2475 sf with 75% open retail area, 25% for storage, restroom and finished walk-up attic, the left side unit #3 is 1000 sf with open area and a rest room.
Richard G. Warner, President/Founder NJ & PA Licensed Real Estate Broker Office: (856) 769-4111 E-mail: rich@warnerrealtors.com www.WarnerRealtors.com
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