Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

Archive for July 15th, 2003

Turpentine Creek Property Taxes

Posted by taxguru on July 15, 2003

I have long been a supporter of the big cat wildlife refuge outside of Eureka Springs. One of the first projects I was involved with when I first started working with them was to try to put together a loan package for them to refinance the original property purchase loan with a new bank loan. Another goal was also to clean up the name on the title for the property from that of the foundation’s president, Tanya Smith, to the foundation itself.

The true non-profit nature of Turpentine Creek’s finances made it impossible to satisfy the banks’ loan criteria. As the old banker’s joke goes, they only want to loan you an umbrella when it’s not raining and money when you can prove that you don’t need it.

The title issue has created a problem with the county property taxes. If the foundation’s name were on it, the property would be tax exempt. However, with Tanya’s name on it, they have been assessed the full amount of taxes. They are in a very real Catch 22 situation. Tanya can’t transfer the property to the foundation without triggering the original seller to demand payment in full for the loan, which obviously can’t be afforded.

The Carroll County ruling authorities have been complete jerks about this situation and are threatening to sell the property at the end of July if the $26,000 in back taxes for the past five years aren’t paid. I’m not involved enough in local politics to understand why they are being this nasty to a charity that has been filling a very real need; but it’s obvious that some people have ulterior motives for trying to shut them down.

Here is Tanya’s explanation of the problem. She is absolutely right that they should be exempt from property tax and the county is being completely unreasonable in not taking into account the difficulties in straightening out the title issue.

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Posted by taxguru on July 15, 2003

Who’s Rich – As we all should know by now, if our superiors, the rich lefties, don’t need a tax cut, then none of us common folk need one either.

Court activism makes Balanced Budget Amendment a bad idea

Climbing Deficit Renews Battle Over Tax Cuts Versus Spending

Hillary’s Scheme: Inside the Next Clinton’s Ruthless Agenda to Take the White House – People have been calling me crazy over the past few years for claiming that Queen Hillary has always been planning to run in 2004 for a third term in the White House. Actually, I have always explained that her plan was for the rest of the DemonRats to field such a pathetic bunch of losers that she will be “drafted” to save the party, and the country. That plan is right on schedule.

Five Financial-Market Fallacies

The Sixth Supply-Side President. Bush is in league with Grant, JFK, Reagan, and more. – However, spending like Teddy Kennedy is not an admirable trait in Bush.

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1031 Exchanges

Posted by taxguru on July 15, 2003

Based on some recent email exchanges, I’ve updated some of the FAQs regarding 1031 exchanges on TFEC’s website:

Dealing with property owned in a partnership

Reverse exchanges

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I use Google several times a day to research all kinds of questions.

Posted by taxguru on July 15, 2003

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Everybody loves a feeding frenzy.

Posted by taxguru on July 15, 2003

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Sitting Ducks

Posted by taxguru on July 15, 2003

Needy local, state governments tack more taxes onto travelers – Tourists are popular targets because they can’t vote and punish the rulers who nail them with those taxes.

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