|RE: tax question||<– Date –> <– Thread –>|
|From: Rob Sandelin (floriferousemail.msn.com)|
|Date: Thu, 31 Dec 1998 10:08:20 -0600|
This is kind of how Sharingwood is set up, although our homes are set up in a condo structure because in our area the banks would not give mortgages to homes that did not control their own lot. (I assume they do so in your area or you would not be considering a land trust). The surrounding land is the coop. Make the shares in the coop non-transferable, tied to ownership of a home, and you skirt the tax problem because the coop shares have no financial value because they are attached to the home, not as tradable shares. Not sure if this setup is possible under a land trust as you describe. A local land trust savvy attorney can tell you. Setting up as tied shares may cause your home value assessments to rise some. Strangly, the fact that we have a 25 acre greenbelt surrounding the homes has not yet shown up in an appriasal here yet. Maybe that is because the title is only for the condo unit, which is all the appraisor considers? Rob Sandelin > -----Original Message----- > From: cohousing-l [at] freedom.mtn.org [mailto:cohousing-l [at] > freedom.mtn.org]On > Behalf Of Philip W. Bush > Sent: Wednesday, December 30, 1998 1:55 PM > Subject: tax question > > > At Cobb Hill in Vermont we're working on setting up our final > legal structure. > One option under consideration is a land coop holding all the > land and common > buildings. Individuals member households would own their own > homes and lease > the land under them. > > > Does anyone have experience with that mix of individual ownership > of homes with > coop ownership of common property? If so, a specific question: when an > incoming member sells their existing home to buy in, will the > full cost of the > new home PLUS the cost of the coop share count, for income tax > purposes, in the > calculation of capital gains? Also any other thoughts on that > legal structure > are welcome. > > > Phil Bush > > Cobb Hill > > www.coopsports.com/cobbhill >
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