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Bankruptcy Basics
According to the American Bankruptcy Institute “household debt is at a record high relative to disposable income.” The Administrative Office of the U.S. Courts reported that the number of filings for the year ended March 31, 2003 “exceeded 1.6...
Buying Overseas Property
Copyright 2005 Hugh Griffin
Fourteen Top Tips for Overseas Property Investment:
1. Buy what you want to buy. The most important decision when buying a property is deciding exactly what you want the property to do for you. Is it purely for...
I’ve heard about FACTA. What does it mean?
Employers are starting to hear about this new law called FACTA, and are starting to be aware that they need to do something. But what should they do? What FACTA means is that if you, as an individual, lose the information on anyone you have ever...
Love The Thrill of Risk? Invest in an Annuity!
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Are you tired of Tenants, Toilets and Trash?
===========================================================
Wouldn't you rather go to Tahiti?
Are you a landlord with rental property whose value has
significantly appreciated?
Are you ready to cash in those profits and take that trip to
Tahiti?
Before selling your property, check with your accountant who
will tell you that you will be paying $60,000 in Capital
Gains Tax to Uncle Sam. Your accountant will also tell you
that adding another $20,000 to your income by that sale is
called recaptured depreciation. This will bump you into the
next tax bracket and doom you next April 15th into sending
the IRS a check for maybe another $7,000.
Are you still ready to sell that property?
It looks like that trip to Tahiti is going to be sometime in
the far future…
But wait! You decide to check with your realtor and then
find out about a 1031 exchange to defer your Capital Gains.
Your realtor tells you if you buy another like-kind rental
property of equal or greater value, you won't get hit with
the gains tax on the sale. That is all fine and good, but
it does not really get you out of the headaches associated
with collecting rent, keeping your unit occupied, finding
clean/classy tenants that won't trash the place, nor does it
keep you from getting that 2am call to fix an overflowing
toilet. To top this off, now you have to pay more in
property taxes and must charge higher rent.
Hmm…maybe this idea is not the ticket to that South Pacific
paradise either.
This is the dilemma I heard from my financial clients again
and again. They were frustrated and felt trapped in their
current situation. So what is a frustrated income property
owner to do? After a lot of research and roadblocks, I found
the perfect solution that has changed the lives of my
clients and took away stress to bring enjoyment of life.
For anyone who is tired of being a landlord and who owns a
rental/commercial property that has gone up a lot in value,
take heart.
A 1031 exchange into a Tenant In Common Property may be your
answer.
There are very specific rules to follow set by the IRS, and
the entire detailed process is the subject for a future
article, but here's the gist:
1-Sell your current income
property;
2-Before the close of escrow, you declare via a Qualified
Intermediary (also called an Accommodator, who is a
qualified third party) that you intend to do a 1031 exchange
into a Tenant in Common Property;
3-Work with a reputable
company to identify a property that you would like to
purchase an interest in;
4-At the close of escrow, your
proceeds are transferred by the Accommodator to purchase
your proportionate share of a larger "A" rated commercial
building;
5-You may choose a business center, a medical
office building, or similar high-end property; and lastly,
6-You get a deeded interest in this property, so you can
keep it, resell it, pass it to your heirs, or even gift it
to charity upon your death.
The way that this works is all the new fractional owners, or
"Tenants in Common" hire an ace Management Company to handle
all the property management tasks. The company finds and
keeps high quality tenants, does the maintenance and
upgrades, pays the property taxes, and handles all the day
to day crisis that arise. Probably the three most important
factors in this entire process are:
1-Your choice of company
that offers the properties for sale;
2-the Accommodator,
and;
3-the management company.
Make sure each of the three parts is a top notch with proven
track records. Anything less could spell disaster.
When this 1031 option is done properly, your benefits will
be:
Deferral of all Capital Gains,
A monthly contractual income (usually based on 6-7% return
on equity),
Building depreciation for tax savings,
Unlimited property appreciation potential, and
No more headaches of property management.
Good-bye Tenants, Trash and Toilets!
Hello Tahiti!
=-=-=-=-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
How much would you pay to save thousands in Capital Gains
Tax? I'll teach you for free in a Teleconference that may
change your life. Sign up at ==> http://www.savegainstax.com
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
Paula Straub is a Financial Advisor, Insurance Agent and
Mortgage Loan Originator in San Diego, CA. As a successful
business owner, Paula strives to guide clients to financial
independence in the most timely and efficient manner
possible.
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| Internal Revenue Service |
| The US government agency responsible for tax collection and tax law enforcement. Includes income tax forms, instructions, and agency publications. |
| www.irs.gov |
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| Tax Information for Individuals |
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| www.irs.gov |
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| Tax Center - Yahoo! Finance - Tax forms, tips and calculators. |
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| tax.yahoo.com |
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| Taxes: Tax Planning, Tools and Advice - MSN Money |
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| moneycentral.msn.com |
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| Tax - Wikipedia, the free encyclopedia |
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| en.wikipedia.org |
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| turbotax.intuit.com |
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| Taxes & Estates, Tax and Estate Planning Advice - Forbes.com |
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| www.forbes.com |
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| Essential Links to Taxes |
| TurboTax Premier For Federal Returns 2005 Win/Mac, TurboTax Total Tax Solution Deluxe 2005 with State Win/Mac, TurboTax Basic 2005 Win/Mac... ... |
| www.el.com |
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| Government > Taxes in the Yahoo! Directory |
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| dir.yahoo.com |
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| Taxes - Tax News for Home and Business from CNNMoney |
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| money.cnn.com |
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| The Tax Foundation - Educating Taxpayers Since 1937 |
| Devoted to educating taxpayers about tax policy and the total tax burden borne by Americans at all levels of government. |
| www.taxfoundation.org |
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| Welcome to the Vermont Department of Taxes |
| Welcome to the Vermont Department of Taxes... ... Changes to Property Tax Adjustments in 2007 - updated 10/18. - Tax Expenditures Transition Report on ... |
| www.state.vt.us |
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| Franchise Tax Board Homepage |
| The department that collects state personal income taxes and bank and corporation taxes for the State of California. Access to forms and tax information. |
| www.ftb.ca.gov |
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| HM Revenue & Customs: Home Page |
| News and information on tax and national insurance, including downloadable leaflets and forms and the latest news on filing tax returns on-line. |
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| State and Local Tax |
| Piper Resources; State Tax Rates and Structure ...Federation of Tax Administrators; State Payroll Taxes Information ...Symmetry Software ... |
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| Quicken.com |
| www.quicken.com/taxes/ - 3k - Cached - Similar pages |
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| Tax news and advice from Bankrate.com |
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| Online Tax Advice - Tax Preparation Help - Income Tax Tips |
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| www.marketwatch.com |
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