David Fedeles, St. Croix Real Estate

Coldwell Banker St. Croix Realty

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Home » What’s New

1031 Exchange Tax Strategy

April 13, 2017 by Team Fedeles

The following is an article from the Coldwell Banker St. Croix Realty April 2017 Newsletter:

It’s tax time. If you talk to real estate investors, many are doing 1031 Exchanges. A tax-deferment strategy, a 1031 Exchange allows sellers to postpone recognition of capital gains if they purchase a like-kind property (or properties—and “like-kind” doesn’t mean land for land or a condo for a condo. As long as it’s an investment property, it can work.) with profits from their sale. Rules apply, and sometimes the rules change.
In his Real Wealth Network article “How To Do a 1031 Exchange: Important Rules and Definitions to Know for 2017,” Ben Erik Smith explains the procedure. He also advises use of a 1031 Exchange facilitator. You may speak to one of our excellent St. Croix attorneys about this because many have been involved in these transactions.
Takeaways:
  • A 1031 Exchange pertains to investment or business properties only.
  • “Like-Kind” means you swap a property for another investment or business property. You may exchange a rental house for a commercial space.
  • The purchase price and the loan amount on the new property must equal or surpass that of the replaced property.
  • You must identify a like- kind property or properties within 45 days of your original closing.
  • You must purchase the new property within 180 days of your closing.
  • The title holder must match on both the old and new properties.
  • The IRS permits partial 1031 Exchanges when the new property is of lesser value; you pay capital gains taxes on the difference.
Note: 1031 Exchanges are not limited to real estate transactions.

Filed Under: Coldwell Banker, St. Croix Real Estate Market

New Ferry Service Between St. Croix and St. Thomas

April 4, 2017 by Team Fedeles

The long-awaited ferry providing service between St. Croix and St. Thomas made it’s first trip this morning, departing St. Croix at 7am. The privately-funded ferry will make two round trips per day, seven days a week. The trip is $50 one-way and riders may pay when they board. Tickets are also available online at www.qe4ferry.com. The schedule is as follows:

Depart St. Croix at 7 a.m. – Arrive St. Thomas at 9 a.m.
Depart St. Thomas at 10 a.m. – Arrive St. Croix at 12 noon
Depart St. Croix at 1 a.m. – Arrive St. Thomas at 3 p.m.
Depart St. Croix at 4 p.m. – Arrive St. Croix at 6 p.m.

Filed Under: Life on St. Croix, St. Croix Businesses

Marching Into Spring

March 16, 2017 by Team Fedeles

This year is off to a busy start and we couldn’t be enjoying it more! Not only has the real estate market been hot, the island has been bustling with activity. And this month we’ll witness two of the most anticipated celebrations of the year.

The 48th Annual St. Patrick’s Day Parade will take place on Saturday, March 18, in Christiansted. As you may know, we like to celebrate – for reasons big and small – here on St. Croix. The history of the Parade is the perfect example of how spontaneous and enthusiastic we can be!

On March 31, 2017, the U.S. Virgin Islands will honor the Centennial Commemoration of Transfer Day. We look forward to taking part in ceremonies and celebration on St. Croix to mark this historic moment. Don’t forget that the USVI is offering $300 in spending credits to anyone booking a 3-night hotel stay between now and December 31, 2017 (book by October 1) to commemorate the Transfer Day Centennial.

It certainly doesn’t stop in March though. The 4th Annual Coconut Cup SUP Festival is March 31 – April 2, followed by two culinary events that are sure to entice you. Taste of St. Croix, April 5-9, celebrates the flavors of our island by showcasing more than 50 local chefs, restaurants, and farms. St. Croix Food & Wine Experience, April 7-10, is a series of mouthwatering events benefiting the St. Croix Foundation.

We’re looking forward to seeing our good friends, Bob and Michele Freiburghouse later this month too. It’s hard to believe we met nearly 20 years, five real estate transactions and countless good times ago! Check out their interesting St. Croix story on our blog. See you soon, Bob and Michele!

Warm regards,
The Fedeles Team

Filed Under: Newsletters

Featured Client: Escaping the Corporate Crush

March 15, 2017 by Team Fedeles

Bob and Michele FreiburghouseEveryone has their own unique St. Croix story, though there’s usually a common theme of escaping the rat race on the mainland. Bob and Michele’s starts the same way, but is a fascinating near 20-year tale.

They came down in 1998 to see the island and check out real estate. David showed them 20+ houses and they made an offer that week! They returned to New Jersey to sell all of their belongings. Then moved their small family down to the Caribbean — including a 5-month-old baby and two dogs!

Bob describes their move as “starting a new life on the island away from the corporate crush they had endured for years.” They both found jobs that were different than what they had in the States. For instance, Bob went from being a tech company executive to a teacher and technology director for a school.

Bob and Michele were drawn to St. Croix because they wanted to remain in the U.S. In comparing St. Croix to the other U.S. Virgin Islands, they felt that St. Thomas and St. John were more tourist-ey and St. John was just too small.

St. Croix was a place where we thought we could raise our family and enjoy island life. We had visited other Caribbean islands and liked them — particularly the British Virgin Islands, but St Croix was unspoiled by development and had everything we needed.

They owned a large sailboat and Bob sailed it down from New York right after they moved. Later they bought a smaller boat to make weekly trips to Buck Island.

We went to Buck Island every Sunday and anchored off the beach. It was a social event for lots of residents. We became friends with people from all walks of life. On the island it did not matter how much money you had or did not have. People all had the shared experience of moving there from somewhere else and living the island life.

The house they bought was on the East End and had fantastic ocean views, great breezes and plenty of room for their dogs. Bob describes it as, “the start of the island life. Water from a cistern, a generator for the frequent power outages, a pool, and a well built concrete home that withstood three hurricanes while we owned it.”

They lived on St. Croix for 11 years, until needing to return to the States for health reasons. A few years ago, they purchased a parcel of land to build, but ultimately decided not to. Last year David sold them a condo which they have renovated and it’s now their second home. “Even though our permanent home now is in NC our hearts never left St. Croix. We try to spend as much time as possible on the island.”

We asked Bob if he had any advice for someone considering moving and/or buying real estate on St. Croix. Here’s what he had to say:

Understand that island homes are very different that state-side homes. Don’t expect to have a bathroom for every bedroom, a garage, a basement, tons of storage, run your AC 24/7, etc. Island life is simple and the homes are simple. Homes directly on the ocean get a lot of salt while homes on hills have better views and breezes – it all depends on your taste. You can always drive to a beach. We preferred the East Dnd of the island where many of our friends lived, but we had friends out West and I worked there.

I’m so glad to call Bob and Michele friends and it makes me happy to know they feel the same. Bob shared, “David not only showed us the right properties, he introduced us to lots of people and became a true friend.”

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Filed Under: Featured Clients

Caribbean Cinemas Brand New Theater Opening This Weekend!

March 7, 2017 by Team Fedeles

caribbean cinemas openingRoll out the red carpet! Caribbean Cinemas is opening their brand new, state-of-the-art cinema complex on Friday, March 10, in Sunny Isle. The new complex has eight screens with stadium seating, 100% digital projection, and high-definition surround sound. One of the cinema auditoriums will be a Premium Large Format Auditorium — CXC (Caribbean Cinemas Extreme) — which will create an immersive experience by providing a wall to wall and a ceiling to floor screen – almost four stories tall!

Caribbean Cinemas recently shared ticket pricing with us. They also announced that a few weeks after the grand opening, patrons will be able to purchase tickets online. We got a sneak preview of what they’ll be showing for opening weekend: Kong: Skull Island, Logan, Get Out, La La Land, Fist Fight, John Wick: Chapter 2, and Rock Dog. Caribbean Cinemas Pricing

The complex also features two private event rooms, an arcade, and a Deli Cafe. Caribbean Cinemas is looking forward to hosting birthday parties, film festivals and other community events.

Follow Caribbean Cinemas US Virgin Islands on Facebook and check out their St. Croix web site for updates.

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Filed Under: Fun on St. Croix, St. Croix Businesses

St. Croix Chamber of Commerce Annual Awards

March 3, 2017 by Team Fedeles

Congratulations to the nominees of the St. Croix Chamber of Commerce annual top business and community leader awards!

St. Croix Chamber of Commerce Awards GalaNew Business of the Year 2016
Bellissimo’s Beauty & Spa
New Attitude Unisex Plus Boutique
Lyric Sails

Small Business of the Year 2016
Jaccar Ice Cream
Orbitel Access LLC
Shupe’s on the Boardwalk

Non-Profit Organization of the Year 2016
American Association of Retired Persons (AARP)
Domestic Violence & Sexual Assault Council (DVSAC)
Project Promise

Professional Business Man of the Year 2016
Patrick Kralik
Joel Holt

Professional Business Woman of the Year 2016
Debbie Henry
Carlotta Moorehead

Business of the Year 2016
Caravelle Hotel &Casino
Diageo, USVI
Limetree Bay Terminals, LLC

Lifetime Achievement Award 2016
Sal Sanpere

The awards gala will take place on Saturday, March 4, with a them of “Over 90 Years……Looking Back and Moving Forward!”

Filed Under: St. Croix Businesses

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About David Fedeles

Twice voted Best Real Estate Broker on St. Croix. Coldwell Banker President's Circle three years in a row. Read More…
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St. Croix and New York

David Fedeles is a licensed real estate broker in both St. Croix USVI and New York. If you are looking for your dream home in America’s Paradise, David is ready to work with you!

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Tel: 340-778-7000
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Coldwell Banker St. Croix Realty | Gallows Bay Mkt
5030 Anchor Way, Suite 12 | Christiansted, VI 00820

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