With the release of nominations last week, Oscar season is upon us here in La La Land. And, as 2005 fades into memory and the first month of 2006 comes to an end, we can’t help but take stock of real estate markets, 1031 investments more specifically and the tenant in common arena in particular.

2005 was a very good year for many real estate investors, but it left many observers wondering how such success can be sustained in 2006 and beyond. In addition, it seemed that for every strong ‘Have’ market (like Southern California, or Washington DC), there was a ‘Have-Not’ market (like Detroit, or Okalahoma City). As we looked for movie analogies, we realized that two, somewhat classics, seemed to sum up 2005; “Groundhog Day” and To “Have and To Have Not”. While 2005 did seem to be déjà vu all over again, which would favor Ground Hog Day, there was also much disparity between the positive events (the ‘Have’s’) and the not so positive events (the ‘Have Not’s’) during the year. All things considered, we’ll go with our title.

Most investors understand that when they sell real property they will be subject to paying capital gains tax on the recognized gain. (IRC§1231). Current federal law provides that ordinary long term capital gains are taxed at a maximum rate of 15%. (IRC§1(h)(1)(C)). Capital gains may also be subjectr to taxation under state or local law.

Capital gains are calculated as the difference between the net sales price of the property and the adjusted basis.

Real Estate 2006
March 13, 2006
Hyatt Regency Century Plaza
Los Angeles
To register go to
www.realestateoutlook.com




TICA 2006 Annual Symposium
Sunday - Wednesday, March 26 - 29, 2006
Manchester Grand Hyatt San Diego
1 Market Place
San Diego, California
For more information go to ticassoc.org