Saturday Reporter-Herald January 29, 2011 E1
Real Estate Matters
www.homeandrealtyguide.com • Saturday, January 29, 2011 • Reporter-Herald
Family Business
Sale may affect federal income taxes ILYCE GLINK TRIBUNE MEDIA SERVICES
Grandview subdivision in the early 1950s. After meeting with Realtors in Denver in 1948, Willard and Bill helped form the Loveland Board of Realtors. The group is now known as the Loveland/ Berthoud Association of Realtors. “Before that, they didn’t share information on listings,” John said. “You listed and sold your own stuff, and you didn’t cooperate with other real estate agents. It opened up just a whole new era for real estate in Loveland. With their abilities to in and around Loveland in share listings and share inthe early 1900s, and subdiformation, pay coop listings, vided some of it up for resicoop under commissions — dential properties. After los- those kinds of things were a ing his farm due to the big deal, which had not hapstruggling economic clipened before.” mate, David’s son, Willard, After Willard passed away came to Loveland in 1922 to in 1955, Bill continued debegin his career as an aucveloping Warnock Realty. tioneer for farms, ranches, “Dad really took the busilivestock and homes. He ness to the next level,” John formed Warnock Realty Co. said. “He had seven agents “One of the things that in the 60s. I never really unhas always amazed me is the derstood what he did, but he resilience of the company to was successful. Both he and go through the great demom were civic-oriented pression,” John said. “The people. economic tides that we’re “He was a gentleman of going through today are a the first degree, in terms of walk in the park compared who he was,” John said. to that. It was just a tough, “Just a remarkable man, tough time to go through. and I miss him.” So I’ve always admired my Bill passed away in 2004. grandfather’s ability to surJohn said Bill was in the ofvive through economic fice the week he died, and times. And then World War they closed over $5 million II comes along, there again, dollars in transactions in the that had to be a 15- or 20week after he passed. year period. How do you do “Just a remarkable legait? How do you get through cy,” John said. “He didn’t that?” have to work, he chose to work.” Willard’s son, Bill, who is John and Jean’s father, PASSING THE TORCH joined Willard at Warnock In the early 70s, Bill’s Realty in 1947 after returnsons, Dave and John, joined ing from WWII as a soldier in the Navy. Bill and Willard the firm. eventually became more inReal estate prices began volved in the residential sec- climbing quickly in the late 70s due to inflation. But tor and established the
Despite changes, challenging economic climate, Warnock family continues real estate tradition in Loveland
Q
uestion: I am 67 years old and own a rental property. I would like to sell the home but don't want to pay taxes on the gain. Should I live in the property for two years and then sell it? I'd like to avoid paying capital gains taxes on the sale. I am still working, but I'm in the poverty income tax bracket. The house has no mortgage, but the taxes, insurance and utilities are eating up my savings. Is there any way I could declare a hardship and avoid the capital gains taxes? Answer: Before you make any decision, you need to know what effect the sale of your home would have on your federal income taxes. If you don't make much money now, you're probably not paying much to the federal government. If you know what sales price you might get from the sale of the rental property, you then can decide whether to sell it and not worry about the tax consequences. However, if you've owned the property for many years and the taxes you owe will be quite significant, you may have some options to limit the amount you pay without fully eliminating the entire tax bill. The only sure way to defer the payment of capital gains and other federal income taxes on the sale of rental properties is to use a company that specializes in 1031 exchanges. When you use a company that handles 1031 exchanges, you basically sell the current investment property, place all the proceeds from the sale with the exchange company and buy a replacement investment property of like kind within a certain time period.
JADE CODY SPECIAL SECTIONS EDITOR
W
ith roots in Loveland real estate from as far back as 1906, the Warnock family has had a hand in much of the shaping of the community in the last century. Willard Warnock, son of a farmer and the founder of Warnock Realty in 1922, overcame historical hurdles such as the great depression, the dust bowl and World War II. Willard’s son, Bill, then took the business to new heights while weathering a tight market in the 80s and championing a merger with a national company, Prudential, in 1991. Today, John Warnock and his daughter, Sarah, serve with Prudential Rocky Mountain in Loveland, while Jean (Warnock) Mackey, along with her husband Don Mackey, have recently moved from Prudential to RE/MAX Action Brokers in Loveland.
THE BEGINNING: WARNOCK REALTY John and Jean’s great grandfather, David, owned about 40 acres of farmland
I See GLINK/Page E3
John & Sarah Warnock
Jean Mackey
Don Mackey
with an energy crisis in the early 80s, the real estate industry began struggling. “The 80s were a horrible time in real estate,” John said. Mortgage rates skyrocketed, going as high as
17 percent, and loans were difficult to obtain, he said. Jean joined the company in the 90s as an agent, and the industry gained steam I See FAMILY/Page E2
Inside Insidethis thisweek’s week’sHome Home& &Real RealEstate Estate
Proper ty of the Week
Real Estate Transactions
Carol O’ Meara:
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Listings from Front Range properties recently sold
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