Thursday, December 31, 2009

GRTC sells bus headquarters site to RRHA for $5.4 million | Richmond Times-Dispatch

GRTC sells Fan bus barn comlex to Housing Authority which in turn is supposed to sell to a private developer. Begs the question "Why not list and sell the property on the open market directly?"
GRTC sells bus headquarters site to RRHA for $5.4 million | Richmond Times-Dispatch

Tuesday, December 15, 2009

New coffee shop in Fan to go green with bicycle deliveries

December 9, 2009 by Al Harris
An old brick service station on the southern edge of the Fan is being reborn as a coffee shop and roasting company.

Local owner Noelle Archibald says the Lamplighter Roasting Company should be open next week. The new business is located at 116. S. Addison St., one block south of Cary Street.

Earlier this week BizSense wrote about a new coffee shop in the Museum District that roasts coffee beans.
Lamplighter, too, is equipped with its own roaster. Archibald said the shop will roast green coffee and deliver beans by the pound by bicycle to homes and businesses throughout the city.

A one-time delivery of coffee beans will cost $12, said Archibald, but the shop is offering subscriptions where the cost drops to $10 a pound if you pay in advance for weekly deliveries. Wholesale prices are also available to businesses, and coffee beans will be delivered in reusable 5-gallon buckets. Archibald said she has already sold a few subscriptions, which has helped fund the venture.

In an increasingly common sign of the times for entrepreneurs, Archibald said she has embraced bartering as a way to keep start-up costs low.

“We are paying our accountant in beans, and some of the tradesmen are being paid partly in beans,” said Archibald.

Another sign of the times: Archibald said she received more than 75 applications after putting up an ad on Craigslist to find a couple of people to help out at the shop.

Archibald has partnered with roaster Jennifer Rawlings, who was previously the co-owner of 17.5 Ethos Café in Shockoe Bottom. That coffee shop was forced out of business by the flooding caused by tropical storm Gaston after only being open for a couple of months. Rawlings said the roaster can produce $25,000 worth of wholesale coffee a month.

Although the new shop is located off of the main street in a part of the neighborhood where there are a couple of boarded-up houses and the only other business presence is a salon, it is located one block away from the soon-to-be-vacated GRTC garage. The large tract of property in the Fan will likely see mixed-use development in the future.

Lamplighter is the latest addition to the list of local coffee roasting companies, which includes the Black Hand Coffee Company, Blanchard’s and Rostov’s.

Friday, December 11, 2009

A "Walkable" location for a home sells for more money

CHICAGO - Though housing values are still slow to rebound from the collapse of the real estate market, a new analysis from CEOs for Cities reveals that homes in more walkable neighborhoods are worth more than similar homes in less-walkable neighborhoods, pointing to a bright spot in the residential real estate market.

The report, “Walking the Walk: How Walkability Raises Housing Values in U.S. Cities” by Joseph Cortright, analyzed data from 94,000 real estate transactions in 15 major markets provided by ZipRealty and found that in 13 of the 15 markets, higher levels of walkability, as measured by Walk Score, were directly linked to higher home values.

“Even in a turbulent economy, we know that walkability adds value to residential property just as additional square footage, bedrooms, bathrooms and other amenities do,” said Cortright. “It’s clear that consumers assign a tangible value to the convenience factor of living in more walkable places with access to a variety of destinations.”

Walkability is defined by the Walk Score algorithm (www.walkscore.com), which works by calculating the closest amenities – restaurants, coffee shops, schools, parks, stores, libraries, etc. – to any U.S. address. The algorithm then assigns a “Walk Score” from 0-100, with 100 being the most walkable and 0 being totally car-dependent. Walk Scores of 70+ indicate neighborhoods where it’s possible to get by without a car.

By the Walk Score measure, walkability is a direct function of how many destinations are located within a short distance (generally between one-quarter mile and one mile of a home). The study found that in the typical metropolitan area, a one-point increase in Walk Score was associated with an increase in value ranging from $700 to $3,000 depending on the market. The gains were larger in denser, urban areas like Chicago and San Francisco and smaller in less dense markets like Tucson and Fresno.

"These findings are significant for policy makers,” said Carol Coletta, President and CEO of CEOs for Cities, which commissioned the research. “They tell us that if urban leaders are intentional about developing and redeveloping their cities to make them more walkable, it will not only enhance the local tax base but will also contribute to individual wealth by increasing the value of what is, for most people, their biggest asset."

An example of the effect of walkability on housing values cited in the study is found in Charlotte, NC. In a neighborhood with a typical Walk Score of 54 called Ashley Park, the median home price was $280,000. In a neighborhood with an above average Walk Score – 71 – called Wilmore, an otherwise similar home would be valued at $314,000. Controlling for all other factors including size, number of bedrooms and bathrooms, age, neighborhood income levels, distance from the Central Business District and access to jobs, “if you were to pick up that house in Ashley Park, and place it in more walkable Wilmore, it would increase in value by $34,000 or 12 percent,” Cortright said.

In the typical metropolitan areas studied, the premium commanded for neighborhoods with above average Walk Scores compared to those with average Walk Scores ranged from about $4,000 to $34,000, depending on the metro area.

"Walking the Walk’ shows definitively what we’ve always believed – that homes in walkable neighborhoods continue to be a good investment, and are one of the simplest and most effective solutions to fight climate change, improve our health, and strengthen our communities,” said Walk Score founder Mike Mathieu. "Our vision is for every property listing to include a Walk Score: Beds: 3 Baths: 2 Walk Score: 84."

The study included 15 metropolitan areas, finding a statistically significant positive relationship between walkability and home values in 13 areas: Arlington, Virginia; Austin, Texas;; Charlotte, North Carolina; Chicago, Illinois; Dallas, Texas; Fresno, California; Jacksonville, Florida;; Phoenix, Arizona; Sacramento, California; San Francisco, California; Seattle, Washington; Stockton, California, and Tucson, Arizona. In one metro area, Las Vegas, walkability was correlated with lower housing values, and in Bakersfield, California, there was no statistically significant connection between walkability and housing values.

Wednesday, December 9, 2009

Kerry Riley has moved to new realty company

Kerry Riley is now affliated with One South Realty Group on Main Street in the Fan District as a sales associate. I made this change to be with the most aggressive, "out-of-the box", progressive firm in the area. I look forward to helping make positive changes the real estate market and community in Richmond. I appreciate your support.One city. One focus.
One unique realty group.
In January of 2008, the One South Realty Group opened its doors.

What had been an informal association of high producing agents and development teams finally became formalized and One South Realty was born.

With experienced agents who brought with them an extensive experience base rooted in construction, development, residential sales, commercial sales and leasing, OSRG has quickly become one of the premier brokerages in the entire Richmond Metro area.

While focusing on progressive marketing techniques to better deliver materials designed to create results, OSRG has grown quickly into the teeth of a market going through a fundamental change. Utilizing extensive “e” techniques and a powerful web presence and combining it with the Richmond Metro’s most knowledgeable agents, OSRG is already changing the way business is done in Richmond.

Each and every agent at OSRG brings a passion for Richmond and the many unique neighborhoods that define our fair city. Whether working with buyers or sellers both in the City of Richmond and in its suburban areas, OSRG can help buyers and sellers make the intelligent decisions that are required to help them achieve their goals.


Check out be link above and scroll through the site to see all the different projects in which we represent.

Tuesday, December 1, 2009

20 Tax Saving Tips before the Year End

Great tips courtesy of Grant Thornton:

1. Make up any estimated tax shortfall with increased withholding, not estimated tax payments
If you’re in danger of being penalized for not paying enough tax throughout the year, try to make up the shortfall through increased withholding on your salary or bonuses. Paying the shortfall through an increase in your last quarterly estimated tax payment can still leave you exposed to penalties for underpayments in previous quarters. But withholding is considered to have been paid ratably throughout the year. So a big bump in withholding on high year-end wages can save you in penalties when a similar increase in an estimated tax payment might not.

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2. Bunch itemized deductions to get over AGI floors
Bunching deductible expenses into a single year can help you get over AGI floors for itemized deductions, such as the two-percent AGI floor for miscellaneous expenses and the 7.5-percent floor for medical expenses. Miscellaneous expenses you may be able to accelerate and pay now include:

•deductible investment expenses, such as investment advisory fees, custodial fees, safe deposit box rentals and investment publications;
•professional fees, such as tax planning and preparation, accounting and certain legal fees; and
•unreimbursed employee business expenses, such as travel, meals, entertainment, vehicle costs and publications — all exclusive of personal use.
Bunching medical expenses is often easier than bunching miscellaneous itemized deductions. Consider scheduling your non-urgent medical procedures and other controllable expenses into one year to take advantage of the deductions. Deductible medical expenses include:

•health insurance premiums,
•prescription drugs, and
•medical and dental costs and services.
In extreme cases, and assuming you are not subject to AMT, it may even be possible to claim a standard deduction in one year, while bunching two years’ worth of itemized deductions in another.

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3. Take full advantage of above-the-line deductions
Above-the-line deductions are especially valuable. They aren’t reduced by AGI floors like many itemized deductions and have the enormous benefit of actually reducing AGI. Nearly all of the tax benefits that phase out at high income levels are tied to AGI. The list includes personal exemptions and itemized deductions, education incentives, charitable giving deductions, the alternative minimum tax exemption, some retirement accounts and real estate loss deductions. Above-the-line deductions that reduce AGI could increase your chances of enjoying other tax preferences. Common above-the-line deductions include traditional Individual Retirement Account (IRA) and Health Savings Account (HSA) contributions, moving expenses, self-employed health insurance costs and alimony payments.

Take full advantage of these deductions by contributing as much as possible to retirement vehicles that provide them, such as IRAs and SEP IRAs. Don’t skimp on HSA contributions either. When possible, give the maximum amount allowed. And don’t forget that if you’re self-employed, the cost of the high deductible health plan tied to your HSA is also an above-the-line deduction.

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4. Accelerate income to “zero out” the AMT
You have to pay the AMT when it results in more tax than your regular income tax calculation, typically because the AMT has taken away key deductions. The silver lining is that the top AMT tax rate is only 28 percent. So you can “zero out” the AMT by accelerating income into the AMT year until the tax you calculate for regular tax and AMT are the same.

Although you will have paid tax sooner, you will have paid at an effective tax rate of only 26 percent or 28 percent on the accelerated income, which is less than the top rate of 35 percent that is paid in a year you’re not subject to the AMT. If the income you accelerate would otherwise be taxed in a future year with a potential top rate of 39.6 percent, the savings could be even greater. But be careful. If the additional income falls in the AMT exemption phaseout range, the effective rate may be a higher 31.5 percent. The additional income may also reduce itemized deductions and exemptions, so you need to consider the overall tax impact.

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5. Avoid the wash sale rule with a bond swap
Bond swaps are a way to maintain your investment position while recognizing a loss. With a bond swap, you sell a bond, take a capital loss and then immediately buy another bond of similar quality from a different issuer. You’ll avoid the wash sale rule because the bonds are not considered substantially identical.

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6. Don’t fear the wash sale rule to accelerate gains
Remember, there is no wash sale rule for gains, only losses. You can recognize gains anytime by selling your stock and repurchasing it immediately. This may be helpful if you have a large net capital loss you don’t want to carry forward or want to take advantage of today’s low rates. Waiting until after 2010 to pay tax on unrealized gains could result in a larger tax bill, if rates do indeed go up.

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7. Defer investment interest for a bigger deduction
Unused investment interest expense can be carried forward indefinitely and may be usable in later years. It could make sense to carry forward your unused investment interest until after 2010, when tax rates are scheduled to go up and the 15-percent rate on long-term capital gains and dividends is scheduled to disappear. The deduction could save you more at that time if rates do go up.

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8. Consider an 83(b) election on your restricted stock
With an 83(b) election, you immediately recognize the value of the restricted stock as ordinary income when the stock is granted. In exchange, you don’t recognize any income when the stock actually vests. You only recognize gain when the stock is eventually sold.

So why make an 83(b) election and recognize income now, when you could wait to recognize income when the stock actually vests? Because the value of the stock may be much higher when it vests. The election may make sense if the income at the grant date is negligible or the stock is likely to appreciate significantly before income would otherwise be recognized. In these cases, the election allows you to convert future appreciation from ordinary income to long-term capital gains income. The biggest drawback may be that any taxes you pay because of the election can’t be refunded if you eventually forfeit the stock or the stock’s value decreases. But if the stock’s value decreases, you’ll be able to report a capital loss when you sell the stock.

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9. Set salary wisely if you’re a corporate employee-shareholder
If you are an owner of a corporation who works in the business, you need to consider employment taxes in your salary structure. The 2.9-percent Medicare tax is not capped and will be levied against all income received as salary. S corporation shareholder-employees may want to keep their salaries reasonably low and increase their distributions of company income in order to avoid the Medicare tax. But C corporation owners may prefer to take more salary (which is deductible at the corporate level), because the Medicare tax rate is typically lower than the 15-percent tax rate they would pay personally on dividends.

But remember to tread carefully. You must take a reasonable salary to avoid potential back taxes and penalties, and the IRS is cracking down on misclassification of corporate payments to shareholder-employees.

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10. Give directly from an IRA if 70½ or older
Congress just extended a helpful tax provision that allows taxpayers 70½ and older to make tax-free charitable distributions from individual retirement accounts (IRAs). Using your IRA distributions for charitable giving could save you more than taking a charitable deduction on a normal gift. That’s because these IRA distributions for charitable giving won’t be included in income at all, lowering your AGI. You’ll see the difference in many AGI-based computations where the below-the-line deduction for charitable giving doesn’t have any effect.

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11. Give appreciated property to enhance savings
Think about giving property that has appreciated to charity. You avoid paying the capital gains taxes you would incur if you sold the property, so donating property with a lot of built-in gain can lighten your tax bill. But don’t donate depreciated property. Sell it first and give the proceeds to charity so you can take the capital loss and the charitable deduction.

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12. Make payments directly to educational institutions
If you have children or grandchildren in private school or college, consider making direct payments of tuition to their educational institutions. Your payments will be gift-tax free, and they will not count against the annual exclusion amount of $13,000 (for 2009) or your $1 million lifetime gift tax exemption. Just make sure the payments are made directly to the educational institution and not given to children or grandchildren to cover the cost.

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13. Plan around gift taxes with your 529 plan
A 529 plan can be a powerful estate planning tool for parents or grandparents. Contributions to 529 plans are eligible for the $13,000 per beneficiary annual gift tax exclusion, so you can also avoid any generation-skipping transfer (GST) tax when you fund a 529 plan for a grandchild — without using up any of your $3.5 million GST tax exemption. Plus, a special break for 529 plans allows you to front-load five years’ worth of annual exclusion gifts ($65,000) in one year, and married couples splitting gifts can double this amount to $130,000. And that’s per beneficiary.

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14. Wait to make your retirement account withdrawals
Taxpayers have no choice but to begin making distributions from IRAs, 401(k) and 403(b) plans, and some 457(b) plans, once they reach 70½. (Learn about the temporary reprieve from required minimum distributions in 2009). But many taxpayers want to know whether they should begin making distributions earlier or wait and make only the required distributions.

If your account is appreciating and you don’t need the money immediately, consider waiting to make withdrawals until required. Your assets will continue growing tax-free. Not only will your account balance likely be larger if you wait, but if you live long enough, your total distributions should also be greater.

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15. Get kids started with a Roth IRA
It’s never too early to start saving, and a Roth IRA can offer your children unique benefits. For one, Roth IRA contributions can be withdrawn tax- and penalty-free at any time and for any reason. Early withdrawals are subject to tax and a 10-percent early withdrawal penalty only when they exceed contributions. Additionally, if a Roth IRA has been open for five years, there are two exceptions to early withdrawal penalties that can be particularly helpful to young IRA owners:

•Withdrawals in excess of contributions used to pay qualified higher education expenses are penalty-free, but they’re subject to income tax.
•Withdrawals up to $10,000 in excess of contributions used for a first-time home purchase are both tax- and penalty-free.
To make IRA contributions, children must have earned income. If your children or grandchildren don’t want to invest their hard-earned money, consider giving them the amount they’re eligible to contribute — but keep the gift tax in mind.

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16. Roll yourself over into a Roth IRA
It’s time to prepare for a unique opportunity in 2010 to roll your traditional IRA into a Roth IRA. Starting next year, there will no longer be a $100,000 AGI limit on this option. And it couldn’t have come at a better time. This type of rollover requires you to pay taxes on the investments in your IRA immediately in exchange for no taxes at withdrawal. So why pay taxes now instead of later?

•Tax rates are likely to go up. The current top individual tax rate is scheduled to increase from 35 percent to 39.6 percent in 2011.
•Your account may also be at its weakest thanks to a downturn that has battered stocks. The upside is that less value in your account means less tax you have to pay on the rollover. Taxes could be a lot higher when your account recovers.
•You pay the tax on your rollover from money outside the account. This too has a silver lining. Your full account balance after the rollover becomes tax-free, effectively increasing the amount of your tax-preferred investment.
•There are no required minimum distributions for a Roth IRA. So you can take your money out if and when you want to, and whatever is left over can be left to your heirs.
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17. Review and update your estate plan
Estate planning is an ongoing process. You should review your plan regularly to ensure it fits in with any changes in tax law or in your circumstances. Family changes like marriages, divorces, births, adoptions, disabilities and deaths can all lead to the need for estate plan modifications. Geographic moves also matter. Different states have different estate planning regulations. Any time you move from one state to another, you should review your estate plan. It’s especially important if you’re married and move into or out of a community property state.

Stay mindful of increases in income and net worth. What may have been an appropriate estate plan when your income and net worth were much lower may no longer be effective today. Remember that estate planning is about more than just reducing taxes. It’s about ensuring that your family is provided for and that you leave the legacy you desire.

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18. Exhaust your gift-tax exemption
Consider exhausting your lifetime gift tax exemption. Using all of the $1 million exemption to give away assets now can save you in the long run. That’s because giving away an asset not only removes it from your estate, but also lowers future estate tax by removing future appreciation and any annual earnings. Assuming modest five-percent after-tax growth, $1 million can easily turn into almost $2.7 million over 20 years. If you gave away the assets during your life, only the original $1 million gift will be added to your estate for estate tax purposes — not the larger value created by the appreciation of the gifted assets.

To maximize tax benefits, choose your gifts wisely. Give property with the greatest potential to appreciate. Don’t give property that has declined in value. Instead, sell the property so you can take the tax loss, and then give the sale proceeds. Be aware that giving assets to children under 24 may have unexpected income tax consequences because of the “kiddie tax.”

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19. Use second-to-die life insurance for extra liquidity
Because a properly structured estate plan can defer all estate taxes on the first spouse’s death, some families find they do not need any life insurance at that point. But significant estate taxes may be due on the second spouse’s death, and a second-to-die policy can be the perfect vehicle for providing cash to pay those taxes. A second-to-die policy also has other advantages over insurance on a single life: Premiums are typically lower than those on two individual policies, and a second-to-die policy will generally permit an otherwise uninsurable spouse to be covered. Work with a Grant Thornton estate planner to determine whether a second-to-die policy should be part of your planning strategy.

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20. Zero out your GRAT to save more
Grantor retained annuity trusts (GRATs) allow you to remove assets from your taxable estate at a reduced value for gift tax purposes while you receive payments from the trust. The income you receive from the trust is an annuity based on the assets’ value on the date the trust is formed. At the end of the term, the principal may pass to the beneficiaries. It’s possible to plan the trust term and payouts to avoid a taxable gift by zeroing out the GRAT. A GRAT is “zeroed out” when it is structured so the value of the remainder interest at the time the GRAT is created is at or just above zero. So, the remainder’s value for gift tax purposes is zero or close to zero.

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This website supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the subject of this document we encourage you to contact us or an independent tax advisor to discuss the potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this document may be considered to contain written tax advice, any written advice contained in, forwarded with, or attached to this document is not intended by Grant Thornton to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.