Owner Information

Telluride Ski Resort Announces Alliance with Vail Resorts to Participate in its Epic Pass Program

Consolidation and alliances are nothing new in the ski resort industry. In fact, I started my career in 1996 at Keystone Resort; the same year that Vail Resorts acquired Breckenridge and Keystone resorts in Colorado. That same year, Intrawest and American Skiing Company along with Vail Resorts took their companies public in order to raise acquisition capital.

What followed the consolidation phase of the 1990’s and on the heels of yield management strategies and database marketing tactics was a season pass pricing war. The resulting Buddy Pass season pass product sent the industry into a frenzy and was the true catalyst of the passes we see offered today.

All of this has been great for snow enthusiast by the way, albeit a bit confusing, with many options in play after the Buddy Pass including the Rocky Mountain Super Pass, The Mountain Collective, MAX Pass, Powder Alliance and the Epic Pass.

The biggest effects on the Season Pass options came as Vail Resorts has over the years purchased or partnered with 45 resorts worldwide and included all of them on their Epic Pass.

In 2017, the game changer was the Crown Family from Aspen Skiing Company and KSL Capital Partners came together to acquire the remaining Intrawest Resorts and Mammoth Resort to form a new ski resort consolidation entity: Alterra Mountain Company.

In January of 2018, Alterra announced its 2018/2019 Ikon season pass which will include the 12 Altera owned resorts plus a handful of stout Independent Resorts such as Jackson Hole to make a 23-resort season pass offering, a new and worthy competitor to the Epic Pass.  

For the last two seasons Telluride Ski Resort has belonged to previous rival to the Epic Pass; the Mountain Collective – of which several currently included resorts have defected now to the Ikon Pass starting next season. The Collective currently offers 2 days of skiing at 16 of its collective all non-vail owned resorts.

With the new Ikon Pass, and the future of the strength of the Mountain Collective Pass uncertain, Telluride Ski Resort recently announced the exciting news to form a long-term alliance with Vail Resorts and join its Epic Pass program as a partner resort. After 2017/2018, Telluride Ski Resort will no longer participate in the Mountain Collective.

Telluride Ski Resort has made it very clear that it intends to continue to be independently and privately owned and operated. The Resort anticipates additional Epic Pass skier visits to Telluride to be about 10,000 visits next season and an annual economic impact to the Telluride destination of around $5,000,000.

The decision seems very beneficial and logical for Telluride as many of the current 750,000 Epic Pass holders live in areas such as Dallas, Chicago, Houston and New York which have direct flight access to the Montrose/Telluride airport.

With this significant Telluride momentum building announcement, we welcome all Epic Pass holders to experience the magic of Telluride next season. Look for more information on pricing and full details on Ski Resort season pass offerings in the months to come.

Epic Pass Benefits in Telluride:

  • Up to 7 Free Days in Telluride – No Blackouts
  • 50% off Additional Days in Telluride

Telluride Season Pass Holder Benefits:

  • 50% off Lift Tickets at Any of the 45 Vail Owned Ski Resorts – No Blackouts

For Epic Pass Information:

  • https://www.epicpass.com/

For Telluride Ski Resort Season Pass Information:

  • http://www.tellurideskiresort.com/pricing-products/season-passes/

 

Final New Tax Bill - Real Estate Effects Summary

Final Tax Bill Effects on Residential & Commercial Real Estate 12/20/17

 

Major Provisions Affecting Current and Prospective Homeowners

  • Tax Rate Reductions
    • The new law provides generally lower tax rates for all individual tax filers. While this does not mean that every American will pay lower taxes under these changes, many will. The total size of the tax cut from the rate reductions equals more than $1.2 trillion over ten years.
    • The tax rate schedule retains seven brackets with slightly lower marginal rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
    • The final bill retains the current-law maximum rates on net capital gains (generally, 15% maximum rate but 20% for those in the highest tax bracket; 25% rate on "recapture" of depreciation from real property).
       
  • Exclusion of Gain on Sale of a Principal Residence
    • The final bill retains current law.
       
  • Mortgage Interest Deduction
    • The final bill reduces the limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/17. Current loans of up to $1 million are grandfathered and are not subject to the new $750,000 cap. Neither limit is indexed for inflation.
    • Homeowners may refinance mortgage debts existing on 12/14/17 up to $1 million and still deduct the interest, so long as the new loan does not exceed the amount of the mortgage being refinanced.
    • The final bill repeals the deduction for interest paid on home equity debt through 12/31/25. Interest is still deductible on home equity loans (or second mortgages) if the proceeds are used to substantially improve the residence.
    • Interest remains deductible on second homes, but subject to the $1 million / $750,000 limits.
       
  • Deduction for State and Local Taxes
    • The final bill allows an itemized deduction of up to $10,000 for the total of state and local property taxes and income or sales taxes. This $10,000 limit applies for both single and married filers and is not indexed for inflation.
    • The final bill also specifically precludes the deduction of 2018 state and local income taxes prepaid in 2017.
  • Standard Deduction
    • The final bill provides a standard deduction of $12,000 for single individuals and $24,000 for joint returns. The new standard deduction is indexed for inflation.
    • By doubling the standard deduction, Congress has greatly reduced the value of the mortgage interest and property tax deductions as tax incentives for homeownership. Congressional estimates indicate that only 5-8% of filers will now be eligible to claim these deductions by itemizing, meaning there will be no tax differential between renting and owning for more than 90% of taxpayers.
       
  • Repeal of Personal Exemptions
    • Under the prior law, tax filers could deduct $4,150 in 2018 for the filer and his or her spouse, if any, and for each dependent. These exemptions have been repealed in the new law.
    • This change alone greatly mitigates (and in some cases entirely eliminates) the positive aspects of the higher standard deduction. 
  • Mortgage Credit Certificates (MCCs)
    • The final bill retains current law.
       
  • Deduction for Medical Expenses
    • The final bill retains the deduction for medical expenses (including decreasing the 10% floor to 7.5% floor for 2018).
  • Deduction for Casualty Losses
    • The final bill provides a deduction only if a loss is attributable to a presidentially-declared disaster.
    • The House bill would have eliminated the deduction for casualty losses with limited exceptions.
  • Moving Expenses
    • The final bill repeals moving expense deduction and exclusion, except for members of the Armed Forces.

Major Provisions Affecting Commercial Real Estate

  • Like-Kind Exchanges
    • The final bill retains the current Section 1031 Like Kind Exchange rules for real property. It repeals the use of Section 1031 for personal property, such as art work, auto fleets, heavy equipment, etc.
       
  • Carried Interest
    • The final bill includes the House and Senate language requiring a 3-year holding period to qualify for current-law (capital gains) treatment.
  • Cost Recovery (Depreciation)
    • The final bill retains the current recovery periods for nonresidential real property (39 years), residential rental property (27.5 years) and qualified improvements (15 years). The bill also replaces separate definitions for qualified Restaurant, Leasehold, and Retail improvements with one definition of "Qualified Improvement Property."
       
  • Qualified Private Activity Bonds
    • The final bill retains the deductibility of qualified private activity bonds used in constructing affordable housing, local transportation and infrastructure projects and for state and local mortgage bond programs.
       
  • Low Income Housing Tax Credit
    • The final bill retains current law. However, a lower corporate rate will negatively impact the value of the credits in the future, and will result in less low-income housing being developed.
       
  • Rehabilitation Credit (Historic Tax Credit)
    • The final bill repeals the current-law 10% credit for pre-1936 buildings, but retains the current 20% credit for certified historic structures (but modified so the credit is allowable over a 5-year period based on a ratable share (20%) each year).

Source = National Association of Realtors

Telluride 1031 Exchange

If you have a rental property and you are looking for a Telluride vacation home or if you already own a rental home in Telluride and you would like different rental property; perhaps a larger home or different location, or a property that can generate more income and you want to defer capital gains taxes and recaptured depreciation taxes a 1031 exchange might be a great option for you. Section 1031 has been in the tax code since 1921 and there is some talk out there about this being a chopping block item for the new federal administration so you may want to act quickly. 1031 exchanges can be complex and it’s important to follow the rules the IRS has outlined so when you’re ready to do a 1031 exchange, we’ll work with an attorney and your accountant to get this done.

There are many tax advantages to owning rental property, including depreciating the property and IRS code section 1031 allows owners to sell rental property and defer the taxes on any profit and recaptured depreciation.

Here’s how it works:

  • The exchange must involve two like-kind properties, one being sold and one being bought within a certain time frame.
  • Like-kind refers to the nature of the investment not the property form. (IE: one rental property for another would qualify).
  • You must identify the relinquished property as a 1031 exchange before the first sale is made.
  • The new replacement property must be at least the amount of the sold property to avoid paying taxes.
  • The new replacement property must be identified within 45 days and purchased within 180 days after the original property has been sold.
  • Once the original property has sold, the money is required by the IRS to be held by a qualified intermediary and all the cash must be used to purchase the new property.
  • You must take title to the new property in the same name as the original property.

The 1031 exchange can be an amazing tool for your investment properties. The process is intricate and complex. There are restrictions on owner usage and a minimum requirement for rental nights. Talk to an attorney or cpa about your specific situation and contact me to sell and buy your exchange properties.

Maximize Your Telluride Rental Property

Today I’m going to give you my tips for maximizing the return of your Telluride rental property:

 You’ve invested in a Telluride property and you’ve chosen to share it with others by offering it for rent in the vacation rental market. You have many options to choose from, a professional management company or renting it on your own through platforms like VRBO and Airbnb. Regardless of how you choose to rent your property, be sure to do an annual checkup of important strategies to maximize the rental return on your investment. The components of this analysis should include a management performance evaluation, a marketing and pricing review and an appraisal of the property's condition and needed improvements. Completing this review on an annual basis will allow you to more fully enjoy the use of your rental home.

If your property is professionally managed, and there are several excellent rental management companies in Telluride to choose from, make sure you are satisfied with your current rental management company's performance. With so many good rental companies to choose from, you can afford to be picky about the company you and your property are partnered with. If it's time to change your management company, look for a company that is focused on providing 24/7/365 promotional marketing, booking and guest services. Your new company should give the best possible expert care for your property and specialize in executive level homeowner service and communication.

Owners who are making reservations and managing properties on their own should review their property's performance versus prior years. Metrics to look at should include the number of nights rented, average daily rent paid and total income net of maintenance and housekeeping expenses by the week. Identify the time periods that your property didn't rent and address your pricing and marketing targets accordingly.

Today's Internet-driven world allows owners to easily book and manage properties on their own. However, many owners underestimate the amount of time required to self-manage and are realizing that their time is better spent on other things. An effective rental management company can greatly ease the burden of owning rental property.

A professional management company will establish a year-round strategy to promote and book your property. They will compare your property's pricing to similar units and decide how to break out pricing seasons, yield management stay restrictions and seasonal targets like families when school is out, skiers in the winter and hikers, golfers and festavarians in the summer.

Your property should have its own competitive advantage. Is your property newly updated or renovated? Does it compete on lower pricing and value? Does it come with extras like ski passes or gaming systems that help set your property apart? Guest reviews of the destination and their accommodations provide powerful word of mouth advertising that can differentiate your property and make a large difference in the amount of bookings you receive.

Properties today should have large flat screen HD TV's in the living rooms and bedrooms, updated kitchens, bathrooms and bedding. Of course, fast and dependable Wi-Fi to support multiple devices is critical.

Assure to complete an annual maintenance punch list and solicit feedback from your rental manager and guests to communicate potential upgrades to you that will allow you to maximize your rental income and the enjoyment of your Telluride rental property.