Santa Monica Pier turns 100 years old on September 9, 2009. Festivites start at 7:00am with a mornin blessing, at 6:00pm the event kicks off. First firework’s display, in 20 years will begin at  8:25pm. Download the brochure and get all planned events and parking.

As of today, there are 106 homes and 144 condos on the market in Santa Monica. Four are new listings. Two properties opened escrow and three properties closed escrow yesterday. Highlights follow:

Just Listed:

837 10th Street #10 w/1BD+1BA asking $459,000 North of Wilshire. (09-395689)
2002 4th Street #201 w/1BD+1BA asking $339,000 in Ocean Park. (09-395843)

In Escrow:

2212 Pier Avenue after 124 days on the market. (09-366697)

SOLD:

553 12th Street sold for $2,895,000 ($616 per square foot) North of Montana. (09-343259)
714 Euclid Street sold for $1,600,000 ($1197 per square foot) North of Montana. (09-37688)

If you would like to discuss any of this information or are interested in buying or selling real estate in Santa Monica, please contact Anthony Hitt at 310-264-1600 or at anthony@anthonyhitt.com.

As of today, there are 107 homes and 146 condos on the market in Santa Monica. Four are new listings. Two properties opened escrow and three properties closed escrow yesterday. Highlights follow:

Just Listed:

207 10th Street w/5BD+3.5BA asking $2,499,900 North of Montana. (09-395395)
126 Montana Avenue w/3BD+2.5BA asking $1,349,000 North of Wilshire. (09-395369)
805 25th Street w/3BD+3BA asking $721,000 North of Wilshire. (F1819055CN)

In Escrow:

632 11th Street after 46 days on the market. (09-385239)
150 Fraser Avenue after 70 days on the market. (09-376685)
939 15th Street #7 after 13 days on the market. (09-388143)
21546 16th Street after 29 days on the market. (09-389339)

SOLD:

1024 Pine Street sold for $1,750,000 ($614 per square foot) in Sunset Park. (09-366661)
212 Marine Street #203 sold for $1,075,000 ($621 per square foot) in Ocean Park. (09-381099)

If you would like to discuss any of this information or are interested in buying or selling real estate in Santa Monica, please contact Anthony Hitt at 310-264-1600 or at anthony@anthonyhitt.com.

Over the last few years, a great number of individuals have sold their home or rental property through a short-sale process.  Additionally, many businesses due to the currently poor economic conditions have exchanged debt under debt cancellation agreements.  As these taxpayers have eventually discovered, the cancellation of debt is considered income under federal tax law.

Anyone considering a transaction of this nature should contact their tax advisor or CPA, as special provisions are available under the Internal Revenue Code, through which qualified taxpayers may eliminate, reduce and defer the income generated from the discharge (cancellation) of their debt:

The discharge occurs in a title 11 case (bankruptcy), the discharge occurs when the taxpayer is insolvent.

A taxpayer is insolvent when their total liabilities exceed the fair market value of assets. See Illustrations – 1 and 2 below for more information.

The indebtedness discharged is qualified farm indebtedness, in the case of a taxpayer other than a C corporation, the indebtedness discharged is qualified real property business indebtedness, or the indebtedness discharged is qualified principal residence indebtedness which is discharged before January 1, 2013.

Additionally, for certain businesses, a delayed recognition of certain cancellation of debt is also allowable over a 10 year period, as follows.  The tax is deferred for the first 4-5 years and income recognition is spread across the following 5 years.  This provision is for specified types of business debt repurchased by the business after December 31, 2008 and before January 1, 2011.  See Illustration – 3 below.

As a reminder, the information above refers to federal tax law, and state laws may vary significantly with regard to the cancellation of debt income.

Illustration – 1

Assets   Liabilities  Income

Property  25,000    100,000            -

Other Assets  25,000              -            -

Cancellation of debt         -    (20,000)    - 50,000     80,000            -

Cancellation of debt income is zero because liabilities exceed assets once the transaction is complete.

Illustration – 2

Assets   Liabilities  Income

Property  25,000    100,000            -

Other Assets  25,000              -            -

Cancellation of debt         -    (60,000)            -

50,000     40,000  10,000

Cancellation of debt income is $10,000 because assets exceed liabilities by $10,000 once the transaction is complete.

Illustration – 3

Transaction    Amount

2009   Cancellation of debt income             (100,000)

2010   delayed income recognition    -

2011   delayed income recognition    -

2012   delayed income recognition    -

2013   delayed income recognition    -

2014   1/5 of CODI recognized     20,000

2015   1/5 of CODI recognized     20,000

2016   1/5 of CODI recognized     20,000

2017   1/5 of CODI recognized     20,000

2018   1/5 of CODI recognized     20,000

Andy Domin, CPA

Fineman West & Co, LLP

9100 Wilshire Blvd, Suite 200 W

Beverly Hills, CA 90212

adomin@fwllp.com

Calling all foodies! Here’s your chance to sample some of Santa Monica’s best restaurant fare during an afternoon on the Santa Monica Pier. The 8^th annual Taste of Santa Monica is coming on Sunday, September 13 from 1:00 pm to 5:00 pm… with a continuing happy hour if you’re really in the mood!

Dozens of restaurants will offer their best tastings and you can buy your “taste bucks” at the event. By the way, you can reserve a VIP ticket for early admission and unlimited food and wine. Several restaurants that I’ve posted info about on this site will be attending – plus some that I haven’t had a chance to try out, so try to check it out! Cirque du Soleil performers will be roaming the event, so you’ll also get a hint about their newest show, “KOOZA.”  I can’t wait.

Read the full article on The Lookout.