View of Downtown along the Stone Arch bridge from St. Anthony Main

Since I posted about Cathedral Hill in Saint Paul a couple of days ago, I think it’s fitting to write about the area’s closest Minneapolis match. And then I also get to scratch another of the area’s many, many St. Anthonys *. (Scroll below for the gripping answer as to why so many places are named the same name).

St. Anthony Main is located along the Mississippi River in Northeast Minneapolis just up the river from the University of Minnesota campus. From here the view to downtown in unparalleled. Simply put, it’s gorgeous.

Several streets still has the charming cobblestone of its yesteryear and can easily take you to local nightlife, specialty shops, river walking trails and what it probably most important to any neighborhood - the new high-end grocery (Lunds- the one with the green roof) and the long-established liquor store (Surdyk’s). From here happening downtown workers hop on their razor scooters to get across the bridge to cube city, while empty nester folks relish that child rearing and suburban life is in their past. It’s a good mix.

It’s hip loft and condo land that suck up most of the view of J.J. Hill’s Stone Arch bridge and downtown Minneapolis, but there’s retail there with several restaurants that offer patio dining. Honestly, it’s one of those places that I’m always shocked isn’t flooded with people. Between the historic buildings and the river, it’s got the makings of hipper than hip.

You can learn about the area’s interesting past from one of the horse drawn carriage drivers that will tour you around for about $30 and take you on Nicollet  Island. Or while riding or take the Segway tour from the folks at Magical History Tour. And as always, you can start searching for you next home in St. Anthony Main - and then you can hold the Webdig’s rebate check on the site’s homepage.

[Why so many St. Anthonys? One of the first Europeans to “discover” Minneapolis’s Saint Anthony Falls in the late 1600’s was a Catholic missionary named Father Louis Hennepin. He named the falls after his order’s patron saint, Saint Anthony of Padua and apparently the rest of state followed his lead. It’s Friday, now go impress your friends at Happy Hour.]

We have had many inquiries about how the IRS will treat the 2/3 commission rebates which we give to our customers. While we are not CPA’s or Attorneys and can not give tax advice, below is an article about the IRS ruling which online broker Redfin of Seattle, received by request. We wish to thank Redfin for making this request and gaining clarity for us all. Redfin is very similar to Webdigs except that, at Webdigs, we provide full real estate and other services such as mortgage and insurance. Congratulations Redfin on this IRS ruling and on your success.

IRS Rules That Redfin Does Not Have to Report
Commission Refunds as Taxable Income

SEATTLE - March 7, 2007: Online real estate broker Redfin Corporation today announced a ruling from the U.S. Internal Revenue Service that Redfin does not have to issue Form 1099 to customers that receive commission refunds because such amounts generally are not taxable as income. Redfin is notifying all of its home-buying customers by mail that the company will not report their commission refunds to the IRS.

Redfin Direct combines an e-commerce application with the services of a local, experienced Redfin agent who handles home tours, pricing advice, offer presentation, negotiations, inspections and the closing process. Home-buyers who can find a home to buy on their own get two-thirds of Redfin’s commission refunded at closing.

Across Washington and California, Redfin’s average commission refund is more than $10,000. Redfin customers typically apply their refund to closing costs, which include loan fees, local property taxes and escrow-related costs as well as an initial mortgage payment. As the commission refund usually exceeds closing costs by thousands of dollars, Redfin often issues its customers a check for the excess.

Prior to Redfin Direct, commission refunds in excess of closing costs were relatively rare, and no ruling existed as to whether such amounts were required to be reported on Form 1099. Accordingly, Redfin petitioned the IRS in November 2006 for a ruling, which Redfin received from the IRS last week.

Because an individual or corporation can only petition the IRS on its own behalf, Redfin could only seek a ruling to clarify its own reporting obligation, not to address the individual circumstance of each customer’s tax return. The ruling does however state that “a payment or credit at closing from [Redfin] represents an adjustment to the purchase price of the home and generally is not includible in a purchaser’s gross income.’

In support of its ruling, the IRS cites guidance addressing a non-profit’s down-payment assistance to low-income families buying houses or a manufacturer’s rebate on a car, neither of which are taxable. The full text of the ruling is available on Redfin’s blog.

“Seeking a ruling from the IRS is not an insignificant undertaking,” said Redfin VP of Real Estate Operations David Wilner. “Rather than having hundreds of customers make inquiries with the IRS on a case-by-case basis, we felt it was the right thing to do as part of our commitment to supporting customers through every phase of the home-buying process from offer to close and beyond.”