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Virgin Islands Attorney General Vincent Frazer issued an opinion to Lieutenant Govenor Greg Francis on May 17, 2003 relative to the status of tax exemptions on real property transfers in the Territory.  The specific question posed by Lt. Governor Francis was whetther a conveyance of real property to or from a trust for the benefit of a grantor or beneficiary of a trust (reltated to the grantor withing the degrees of consanguinity statutorily set forth in Title 33, Section 128, subsection (a), item 8, Virgin Islands Code, is exempt from the payment of the Virgin Islands documentary stamp taxes.Continue Reading VI Attorney General Rules Against Family Trusts

The Virgin Islands Housing Management, Inc. (VIHM), together with Reliance Housing Foundation recently announced the long awaited onset of the demolition and new construction redevelopment phase of the Emergency Housing Hospital Ground Apartments on St. Thomas, U.S. Virgin Islands.  Ronald R. Pennington, Chair of the BoltNagi PC’s Real Estate & Financial Services Practice Group served as counsel to Reliance Housing Foundation in the transaction.Continue Reading BoltNagi Facilitates $20M Transaction to Revitalize Hospital Ground Housing

If you are currently considering selling and acquiring property of similar value, perhaps a 1031 exchange is right for you. A 1031 exchange differs a typical real estate sale because the property is considered to be exchanged instead of sold. Partial exchanges also qualify and receive partial tax-deferred treatment. One of the main advantages of a 1031 exchange is that the taxes are deferred, unlike those of a sale. As no economic gain has been realized, the government allows you to bypass the payment of taxes.Continue Reading 1031 Exchange: Is It Right For You?

Interest rates are at or near historical lows while at the same time only a limited number of Virgin Islands financial institutions are  providing financing for commercial real estate, even to long time creditworthy customers with long histories of investing in commercial real estate. At BoltNagi PC we have seen financial institutions of all sizes from the small local banks to the large national banks curtailing most all financing of commercial real estate due in part to the antiquated banking laws in the Territory and at this point in time we see no relief in the near term.Continue Reading Creative Ways to Finance Commercial Real Estate

In the current down economy, as government and private sector employees continue to lose their jobs, many are worried about losing their homes too.  To help, U.S. Virgin Islands Delegate to Congress Donna Christensen has aggregated multiple federal programs to help people stay in their homes.

"Several homeowners have called or emailed my office asking about federal programs that can assist them, as they will be out of income and unable to maintain their mortgages," Christensen said in a written statement. "There are programs in the departments of Treasury, Housing and Urban Development, Agriculture (Rural Development) and the Small Business Administration that can be helpful."

Continue Reading Territory Offers Foreclosure Prevention Programs

One of the first recommendations that the BoltNagi Real Estate & Financial Services Group makes to a purchaser of real estate is to obtain a survey and “walk the land”.

 

For just about any real estate purchase, your real estate attorney’s standard advice will be to "get a survey, get a survey, and get a survey!" This is not conspiracy to drive up the cost of your real estate purchase. It is common sense, though, particularly for a big-ticket purchase like real estate. Obtaining a land survey of the property you plan to purchase will identify potential problems and give you peace of mind. Continue Reading Get a Survey! Good Advice for Prospective VI Property Owners

Often time buyers and/or sellers enter into a contract for the purchase of real estate without fully considering the ramifications. Whether pushed by their own financial situation or other outside factors, a person hastily entering in to a contract without fully understanding their rights and obligations can lead to unforeseen consequences.Continue Reading Sanctity of Contract

Virgin Islands landlords receving $600 or more annually in rent from real estate will be required to file Form VI-1099 with the Virgin Islands Bureau of Internal Revenue (BIR) and with their tenants.  They will also have to send Form VI-1099’s to the BIR for all service providers such as plumbers, electricians, handymen, accountants, etc. for rental property services provided to the landlord for payments of $600 or more.  To ensure compliance, the BIR may levy penalties of $50 for each failed to file Form VI-1099 or with the tenant or service provider.  These penalties are capped at $100,000 or $250,000 depending on the delinquency.

Designed to close the tax gap, this new legislation was passed to ensure that income paid to contractors gets reported accurately and deductions for work and improvements or rental properties can be verified by the VI-1099 form. While this new reporting requirement will not impact rental properties held out as a trade or business (owning multiple properties and a full-time business) since they are already covered, it will affect smaller, “mom and pop” landlords, who typically are not armed with accountants to track contractors, verify deductions and report taxes. This will also create a new burden for small real estate operations.

Continue Reading VI Landlords Face New Tax Responsibilites

On September 29, the U.S. Congress voted to extend higher loan limits for government-backed mortgages in the U.S. Virgin Islands and other high cost areas, a move that should help keep borrowing costs low and support the housing sector.

At the height of the financial crisis in 2008, the government raised the ceiling on the size of loans Fannie Mae and Freddie Mac could buy. At the time, the private market for so-called jumbo loans had all but dried up.

The legislation approved by the House of Representatives and Senate, which President Barack Obama is expected to sign into law, would keep in place until September 30,  2011 the higher $729,750 ceiling for single-family home mortgages in high cost areas such as the U.S. Virgin Islands.Continue Reading Congress Extends Higher Loan Limits for VI Fed Backed Mortgages