About the health care law's 3.8 percent tax

John Eaton doesn't see himself as someone in the business of batting down falsehoods, but the 3.8 percent questions keep coming and he feels duty bound to answer them.

"Every week I get asked about it," said Eaton, government affairs director for the Idaho Association of Realtors, who was in Idaho Falls Wednesday to speak at the Realtors Political Action Committee picnic in Tautphaus Park.

The number 3.8 (go ahead and Google it) refers to a Medicare tax imposed by the new health care law on capital gains from investment income.

At some point in the past two years, Eaton said, a newspaper article reported that for anyone with an income above $200,000, or couples with adjusted gross income of more than $250,000, a 3.8 percent tax would be imposed on home sales and real estate transactions.

The AGI part was right, but a lot else was wrong, Eaton said. Once it went viral, people began hearing that if they sell a home for $100,000 they will be paying $3,800 to fund Medicare. As one might expect, this was not well received.

Here's the way it's actually intended to work, starting in 2013:

• If you report $1 million in capital gains (which can include real estate sales), you pay $19,000.
• If you report $600,000 in capital gains, you pay $3,800.
• If you report $525,000 in capital gains, you pay $950.
• If you report $500,001 in capital gains, you pay 38 cents.

Eaton said he doesn't see the provision affecting a lot of Idaho homeowners. "It may affect people in states where property values are higher," he said.

He suggested that anyone who wants a more detailed explanation should visit http://www.snopes.com/politics/taxes/realestate.asp.

I can already hear some of you fulminating about this, but for the sake of your blood pressure I would like to caution that the Realtors Political Action Committee is hardly a hotbed of liberalism. Here are its guiding principles:

• Protect private property rights
• Reduce unnecessary regulations and government intrusion
• Ensure a fair tax code
• Protect the American Dream of Home Ownership

Eaton's Twitter feed is https://twitter.com/IdahoRPAC.

Famed architect's home open to public on July 28

A home built by Art Troutner, Idaho's answer to Frank Lloyd Wright, will be open to the public July 28 from 10 a.m. to noon.

The Idaho Falls Historic Preservation Commission, in partnership with Century 21 High Desert Realty and Voigt Davis Realty, will be sponsoring an open house at two mid-century modern homes Saturday July 28.

The homes will be open to the public from 10 a.m. to noon. Members of the Historic Preservation Commission, city staff, and the realty firms will be on hand to answer any questions.

In the 1950s, because of the Atomic Energy Commission's National Reactor Testing Station (later the INL), Idaho Falls had the greatest growth of any community in Idaho. The city’s population increased 73 percent during the Eisenhower era, and the city's housing stock reflects it.

This tour allows members of the public to give themselves self-guided tours of two unique homes built then. The first is located at 460 9th Street, and was designed by the firm of Clinton Sunberg, one of the two principals of Sunberg and Sunberg. A long, low home with a prominent front door, the home integrates the rear patio and back yard, a new idea for homes after World War II (pre-war homes were oriented toward the street and had front porches more often than not.)

The second home, listed on the National Register of Historic Places in 2008, was designed and built by Art Troutner in 1956 for Ada Poitevin. Troutner is best known for his company, Trus-joist, and his design of the Kibbie Dome at University of Idaho. The home appears circular, but has sixteen sides with a skylight in the center and a intriguing and innovative roof structure.

Troutner was the subject of an Outdoor Idaho documentary in 1998. Here is a link to an essay written about him and his 35-year career: http://idahoptv.org/outdoors/shows/designingidaho/troutneressay.html.

For more information on the open house, call the Planning Department at 612-8276.

"Seven Habits" author Stephen Covey dies at EIRMC

Stephen R. Covey

Stephen R. Covey, author of "The Seven Habits of Highly Effective People" as well as three other books that have all sold more than a million copies, died early Monday at Eastern Idaho Regional Medical Center in Idaho Falls.

According to a statement issued by the family, Covey, 80, died from complications that followed a bicycle accident he had in April. Though he had been wearing a helmet, he was hospitalized after being knocked unconscious on a steep road in the foothills of Provo, Utah, about 45 miles south of Salt Lake City. At the time, his publicist, Debra Lund, said doctors had not found any signs of long-term damage to his head. Catherine Sagers, Covey's daughter, told The Salt Lake Tribune in April that her father had suffered some bleeding on his brain after the bicycle accident.

Covey had a connection to this area through a cabin the family owns at Hebgen Lake in Montana, about 20 miles from West Yellowstone. In his book "The Seven Habits of Highly Effective Families," Covey wrote that his grandfather first went there to recuperate from a heart attack. "That area was the best medicine for him. ... The word 'Hebgen' has become something of an intergenerational family mission statement. It means family love, unity, service, and joy to each of us in the family."

In addition to his books, Covey was co-founder of the Utah-based professional services company Franklin Covey.

Here is the text of the family's statement:

Our beloved husband and father, Stephen R. Covey, passed away peacefully in the Eastern Idaho Regional Medical Center at 2:15 this morning, due to the residual effects of a bike accident he suffered this past April. He was in his 80th year. In his final hours, he was surrounded by his loving wife and each one of his children and their spouses,  as we sang him his favorite hymns, just as he always wanted. We extend our heartfelt gratitude for all of the love and prayers that have been showered upon Stephen and our family from all around the globe over the past several months.

All our love,

The Stephen R. Covey Family

Moffatt Thomas law firm to have ribbon cutting at new location Thursday

Moffatt Thomas has moved into new offices at 900 Pier View Drive.

The Idaho Falls office of Moffatt, Thomas, Barrett, Rock & Fields has moved into new offices at Snake River Landing, at 900 Pier View Drive, Suite 206.

The law firm is occupying 5,600 square feet on the second floor of a building built by G.L. Voigt Development, which is also home to First American Title, Stifel Nicolaus and the University of Phoenix.

This Thursday there will be a ribbon cutting there at 4:45 p.m., followed by a Chamber Business After Hours from 5 to 7 p.m. The public is welcome to attend both events.

Moffatt Thomas was founded over 50 years ago and has offices in Boise, Pocatello and Idaho Falls.  The Idaho Falls office of Moffatt Thomas represents many of the area's leading enterprises, including employment, agriculture, health care, banking, water, finance, business, tax, construction, environment and government affairs.

Statewide, Moffatt Thomas employs more than 85 people, 40 of whom are attorneys. Eleven of those employees are in the Idaho Falls Office. Attorneys include Brad Williams, Kimberly Evans Ross, Jon Stenquist, Ed Cather, Ben Ritchie, and Lee Radford.

Bill's Bike Shop breaks ground on new building Friday at Snake River Landing

An architect's drawing of the new Bill's Bike Shop building at Snake River Landing.

Bill's Bike Shop will be breaking ground Friday on its new 10,000-square-foot building at Snake River Landing, which owner Gary Wight hopes to see finished as early as late December.

Bill's was established in 1947 on Idaho Falls' south side by Bill and Alice Murdoch, and has put at least four generations on two wheels. They've been on Holmes Avenue since the mid-1980s, but Wight, who bought the business in 2010, announced earlier this year they would be moving to Snake River Landing. He said he plans to keep the Holmes Avenue store open in some capacity, but the new building will be a full-service bicycle shop from the ground up, with rooms for meetings and classes and a service department that will help them keep up with the massive amount of repair work they do (roughly 600 bikes a month.)

When it came to finding a bike-friendly location, Snake River Landing, with its miles of paved trails and incorporation of the Idaho Falls Greenbelt, presented itself as an ideal place for test rides and rentals. A 400-acre, master planned community on the west bank of the Snake River between Pancheri Drive and Sunnyside Road, it is laid out to incorporate retail, office, restaurant space, along with homes, all in a development that includes parks, trails and water features.

"I wanted to be where it was bicycle friendly," Wight said.

Before buying Bill's Bike Shop in December 2010, Gary Wight had 30 years of experience in the car business in eastern Idaho. "Aside from two extra wheels and two extra zeros, there isn't much difference between selling bikes and selling cars," he said. (Photo by Melissa Bristol)