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So how do you find the best foreclosures. Its not easy as the business is very competitive, especially in this current crazy real estate boom.
Firstly you must be methodical as well as diverse. Deals are all over the place. It is recommended you specialize in an area that you are familar with.

Secondly how do you find inventory?. There are many companies that offer foreclosure lists. You will find them on the web or through a title company. Be careful to locate fresh leads. In other words you need fresh daily leads on Defaulted and Trustee sale properties. If you purchase information that is outdated you may not succeed as the property may sell, be re-instated or refinanced prior to your endeavors to contact the current owner.

Thirdly, defaults, these are loan defaulted properties. The owners of the properties have not paid in 3 months and have been notified that their property could be sold at public auction if they do not re-instate their loan. You are endeavoring to purchase the property prior to Trustee sale. Once you have located a property, made contact with the owner you now need to contact your escrow and/or title company for comparable sales and vesting information. It is important that not only you know what the property is worth BUT more importantly you are going to speak with the OWNER.Vesting will tell you this vital info. After you have satisfied yourself that a possible purchase exists you may request a prelimanry title report that will give you all the information on outstanding loans , liens ,judgements and court actions against the property
Fourthly. How to make contact with the owner. This can be done via mailers, phone calls and the most important,DOOR KNOCK.
Meeting the owner is the beginning of the ‘close’. This is where they will begin to trust you. NO TRUST NO DEAL. Your offer must be a combination of price, accommodation,(helping to move them on), empathy, immediate assistance to support their dire needs. You will see the true picture by the DOOR KNOCK’.

Fifth. The DEAL. So you have come this far WOW, You have made entry into the house, inspected and the seller likes you and wants to do business, the deal is fair, the docs are ready to sign. You have previously contacted your escrow/title company and/or attorney and they have guaranteed that you have all the right docs ready to be notarized. RIGHT! CONGRATULATIONS your in the real estate foreclosure business.

A final tip, make sure the seller /client MOVES OUT,
the old saying ‘POSSESSION IS 9/10ths of the law’ still holds. Have the escorw company hold funds until the property is vacant.

When the movers truck is full, house empty, seller off the property and you have the keys. Release the funds. NOW YOU REALLY OWN THE HOUSE.
Sixth.Trustee Sale properties. If the owner has not re-instated the property prior to the trustee sale date (5 days prior to sale in California) then the property will sell at the nominated court house steps on the date and time posted by the trustee. If you are successful in being the highest bidder you will receive a Grant Deed to the property. This is a popular hassle free way to buy foreclosures as you do not have to deal with the owners and possible associated problems. But of course if ITS EASIER THEN EVERYONE WILL BE AT THE TRUSTEE SALE.

Good luck

For further Info and advise go to; http://www.homeowneresaa.org.614

Peter M Smyth ,a licensed Californian Real Estate and Mortgage Broker. Peter has been involved in the real estate, mortgage lending and distressed property sale business for over 20 years.
He has successfully purchased & sold propeties on four continents. Australia, Asia, Europe and North America
email bigboythai@hotmail.com for advise and business opportunity.

Tip! Without putting too much pressure on yourself, make dates or appointments to work on your taxes. A day for compiling information.

Understand the tax consequences of flipping houses, rehabbing houses, and how to defer taxes with the 1031 Exchange before you get into real estate investing. Problems arise when real estate investors don’t follow federal and state tax laws. This is why you need professional advice. Although I am not a tax advisor, here are some common mistakes beginning real estate investors make by not understanding tax liabilities:

Flipping Houses

The reason flipping houses is a mistake for some beginners is that they don’t know the income tax consequences. One problem with flipping houses, or selling too many properties too quickly, the IRS could say that your real estate business is your trade, subject to ordinary income and self-employment taxes.

Tip! Do file your taxes before April 15. Extensions give IRS more time to review your return since it is not filed during the season rush.

Self-employment tax, a social security and Medicare tax primarily for individuals who work for themselves, is similar to the social security and Medicare taxes withheld from the paycheck of most employees. The self-employment tax rate costs you 15.3% of your profits. (However, this may provide retirement benefits.)

Rehabbing Houses

Another common mistake that beginning investors make is selling a property after holding it for almost a year. Some rehabbers work part time on a fixer and take six months to get the house ready. Add on two months to sell with a 60 day closing, and they’re up to ten months. To take advantage of the low 15% capital-gains tax rate, you must keep the investment property for at least a year before selling. If you sell before a year, your tax rate, the usual capital gains rate of 35%, could eat up a significant amount of your profits.

Tip! Participate in company retirement plans. Every dollar you contribute will reduce your taxable income and thus your income taxes.

If you’re rehabbing houses, be patient. You could save thousands in taxes by holding your property just a few more weeks.

1031 Exchange

However, the Internal Revenue Code provides real estate investors away to defer capital gains taxes indefinitely. Section 1031 of the Internal Revenue Code provides a tax-free exchange. Also known as a “like-kind” exchange, this code allows you to sell a business or investment property and defer capital-gains taxes by immediately reinvesting the gains into a similar piece of property. The key, replacing a business or investment with similar property, means that no gain gets paid to the investor. Any profit taken out of escrow gets taxed. This means that beginning investors might take out a portion of the profit after they carefully explore their tax liabilities. In other words, talk to an accountant and find out what your tax would be according to your current usual income. Many business owners take advantage of this because they have many business deductions.

Tip! Make sure you pay in enough taxes to avoid penalties. Uncle Sam charges interest and penalties if you don’t pay in at least 90% of your current year taxes or 100% of last year’s tax liability.

The big mistake beginning real estate investors make doing a 1031 tax-free exchange, taking possession of the profits, voids the tax deferment. You must declare the sale of your property to be a part of a 1031 exchange before you sell the property. Then you have the money placed in a trust account held by an intermediary until you purchase the new investment property. You have 45 days to identify a replacement property and 180 days to close on the new investment. You can’t purchase a primary residence or a vacation home with funds from an investment property and defer taxes in a 1031 exchange.

The best advice for beginning real estate investors:
Talk to an accountant.

Would you be better off making extra money, even if you must pay taxes?

Purchase Agreements - Buyer/Seller

The following information in the document is geared to those who are purchasing or selling - renting or leasing existing structures. When it comes to purchasing or selling land, buildings etc. which can be built upon or added to, obviously there is a great deal more information which is required.

The “all-important” budget

I honestly wish I had a dollar for every time I had to go over this with a client. It often amazes me just how little we do not take into account.

So you are getting married and your parents and future in-law’s decide to get together and purchase an apartment for you and your spouse. Great! Congratulations! Mazal Tov! They tell you your budget is $250,000 - and not one penny more. And even that is pushing the limit.

So with a big smile and a heavy pocket you call an agent and tell them your budget is $250,000. Guess what? That is NOT your budget. That is how much money you have to spend on the purchase of an apartment. That is NOT how much you can buy the property for. Why? Because you conveniently left out,
lawyer fees, agent fees, and any other miscellaneous fees that you have not taken into account. That is assuming that for $250,000 you will find the exact apartment you want in the neighborhood you want all painted and ready for you to move into it! What about changes or improvements? And if you are buying on paper what of escalating and hidden costs? What happens if it is not ready on time?

Each case is different. When you are asked what your budget is,
you MUST become aware of the other “incidentals”. If the $250K is all you have, then your budget should be realistically below that amount depending on the property you wish to purchase.

Rule of thumb: If you think that the “incidentals” will cost $15,000 make that amount $18,000. Always round UP, never down. If you follow that simple rule you will at worst never be sent into a tizzy by some cost not figured in and at best find yourself with some extra cash in your bank account to do some desired change to a bedroom or buy some new furniture.

Tabu & Arnona

The Israel Land Registry registers all land and property in the name of the owner. This is something that the lawyer takes care of and is an integral and critical part of the process of owning a property. When you purchase a property the final step is usually registering that property in your name. Without such registration, legally, the property does not belong to you. (Tabu is a term and institution which was first imposed during the 19th Century by the Ottoman empire which ruled Israel at the time. It was the first attempt in modern times to register all land owners in Israel. This system still exists today. Simply put, Tabu grants the individual the right to own land (including apartments.)

However, there are cases that the Tabu is impossible. Certain properties in Jerusalem are owned by the Church, and leased to the government for ninety-nine years. Thus, Tabu is often impossible in these properties and there is a legal mechanism that protects you as the owner. However, you should be aware if the property you wish to purchase is one that is “church-owned and then leased land”.

There are other instances, each specialized, where registration in Tabu may be delayed for months. These are things which must be discussed with your lawyer and only your lawyer can offer you proper advice in this matter.

The one important thing of the Tabu, is that it lists the size of the property. This is crucial! The amount of meters listed in the Tabu is the legal size of the property you are purchasing or selling. (Below you will learn just how important this is.)

Arnona is the “city tax”. The important thing again about this document is that it too lists the exact meters of the property with some caveats. It does not include any open areas, such as porches and gardens. In Israel, we pay city tax, or the Arnona, only on an enclosed area. (There are other computations made in regard to storage rooms etc.) This is for the agent to show and explain to you depending upon the property.

Many people walk into view an apartment and ask the owner how big it is. The owner says 110 meters. But in Tabu or Arnona (see below) the apartment is listed as 86 meters. Okay, perhaps the missing meters can be found on open porches or in the garden. And perhaps, just perhaps, the owner has exaggerated or never really knew just how big the property was.

It should be noted that there is usually a discrepancy of a few meters between Tabu and Arnona. This is to be expected. However anything over ten meters should require an explanation that makes sense. Again this is also up to the lawyer to make sure that what you are purchasing is what you have seen.

Be careful. Be prepared. Be informed.

Ted W. Gross owns Virgin Earth, a real estate brokerage firm in Jerusalem, Israel. Virgin Earth represents residential and commercial real estate all over Israel. The web site for Virgin Earth is: http://www.virginisrael.com. Virgin Earth also maintains an RSS Feed on its current properties which can be found on most pages in the web site of Virgin Earth. Ted Gross can be reached at: virginearth@gmail.com Ted Gross is also a published author and maintains a web site for his works. This can be found at: http://www.virginisrael.com/twg/iw.html

Higher taxes on top of a high LTV can destroy your cash flow.

Over the past couple of years, I have been concerned that rising property tax rates will eventually threaten the livelihood of rental property owners.

As if to partially confirm this, I have recently been contacted by two different investors who are victims of property tax hikes that took them from a positive to a negative cash flow.

In both cases we are talking about a doubling of the property tax bill in one single year.

I personally experienced a near tripling of taxes on a rental property. My per month cost for taxes went from an initial estimate of $54.17 at the time of purchase to $125 per month the following year.

The fact is no single entity on the face of the earth can affect your real estate investments the way that government can. Governments can add a significant cost of doing business via rising tax rates.

It can change the rules in the middle of the game, force you to pay up or else, and only government, (especially local government), has the power to affect every single property owner in a given city, or county. Even bankruptcy won’t rescue you from the clutches of the tax man.

The general rule of thumb for residential property investing is that you should never exceed 80% financing on your income property. You should plan for higher taxes and keep your LTV at a reasonable level. While there are 90% and even 95% loans out there for investors, it can be dangerous to take out such loans as the risk of negative cash flow is much higher.

Most investors and even home owners, should be very cautious about refinancing residential properties to pull additional cash out. A higher loan amount, combined with a large tax assessment could put you in the red overnight.

If your strategy is to buy and hold, be very cautious about exceeding an 80% Loan To Value. Over-financing can cost you a whole years profits to compensate for a two month vacancy.

If your rent rates have to be artificially high in order to cover loan payments and taxes, you may not be able to find a suitable tenant. Few investors can handle the financial strain of vacancies and negative cash flow for long periods of time.

The issues facing our cities and counties in the 21st century are complex and appear to be beyond the knowledge and expertise of most local politicians. We must find new ways to manage the costs of government services in order to insure a supply of affordable housing in the years to come. Increasing property taxes has traditionally been a local governments answer to every budgeting need. If this continues, it could put investors in many cities out of business, and ruin the small investor’s ability to provide affordable housing.

For now, keeping lots of equity in your properties is the only real way you have to protect yourself from negative cash flow caused by rising property taxes. While it is exciting to think about taking tens of thousands of dollars out of your properties to use for “tax free income”, smart investors are very conservative here, and prefer to keep lots of equity for a rainy day.

Donna Robinson is a real estate investor, author, and consultant located in Atlanta Georgia. You may read more of her articles on her website at http://www.RealEstateInvestorHelp.com or you may contact her by email at drobinson@reihelp.com or call 404 542-9903.

Tip! To calculate your tax refund or return, you must first find a website that has tax calculating software that’s free to use. Start by creating a user account at the website you have selected.

The Telephone Excise Tax Refund (TETR) is a one-time payment available on your 2006 federal income tax return. It is designed to refund previously collected long distance telephone taxes. Individuals, businesses and tax-exempt organizations are eligible to request it. Over 159 million filers are eligible to request the refund.

Individuals taxpayers have a choice, they can take the standard refund amount between $30 to $60 (based upon their exemptions on their 2006 return OR they can locate old bills and use the actual amount.

Even if you don’t have to file a return, you can still request the refund. Details can be found at the IRS web site.

If you are filing a Schedule C, E, or F you may be eligible to use a special formula that reads like this: The refund is capped at 2 percent of the total telephone expenses for businesses and tax-exempt organizations with 250 or fewer employees (this covers over 99 percent of all businesses in America). The refund is capped at 1 percent for those with more than 250 employees.

Tip! Whichever you decide, taking the time to look at your taxes both ways can really help to give you a bigger tax refund this year. The computer will do all calculations and the paperwork, so, you have nothing to lose, and everything to gain.

IRS provided this example of computing the Telephone Excise Tax Refund (TETR): If a business has an April 2006 telephone bill of $1,000, which includes federal telephone excise tax of $28, the tax percentage is 2.8 percent. If the September 2006 bill is $1,100 including federal telephone excise tax of $16.50, the tax percentage is 1.5 percent. The business’ long-distance excise tax percentage is 1.3 percent (2.8 percent for April minus 1.5 percent for September). The business multiplies 1.3 percent by its total phone expenses over the 41-month period to arrive at the amount of its refund. If this business had more than 250 employees, its refund would be limited to 1 percent of its total phone expenses for the period. If the business had 250 or fewer employees, the 2-percent cap would apply and would not limit the amount of the refund

This refund is the most wide-reaching in IRS history. For sure tax software companies are gearing up to include this refund in the 2006 software programs. For those choosing the standard method to compute this refund, there will be an additional line right on your 2006 tax return for the refund

Tip! Maybe you’re wondering how much your tax refund will be, or you might want to know if you’re going to owe money at tax time. If you would like to find out, then I suggest using an online Federal income tax refund - return calculator.

Cassandra Ingraham is a Tax Accountant and Instructor for Basic Tax Classes in the San Francisco Bay Area. During the balance of the year she can be found at http://www.taxeswilltravel.com providing Formal Introductions to Lenders for Accounts Receivable Funding (Factoring) and Purchase Order Funding.

Individuals with Tax issues can find dozens of self-help tax articles at: http://taxeswilltravel.com/article_index.htm

Tip! Although legally you need only keep tax records for three years from the date you filed the related income tax return, you should keep a copy of your actual tax returns, W-2s, 1099s, etc., indefinitely. The IRS destroys original tax returns after three years, and you or your heirs may need information from the returns at some point, or you may need to prove your earnings for Social Security purposes.

How do some people seem to always pay less tax or get a bigger tax refund than anyone else, while you try everything possible, just to break even? What if you could find a way to get 20%, 30% or even 50% more money on your tax refund, how much money would that be? Hundreds, maybe even thousands of dollars.

If you could learn just one thing that would help you to get more money back at tax time, this is it. Learn how to use more Federal tax deductions and tax credits when you prepare your taxes. When you learn how to find and use the over 350 tax deductions and credits that are available to every taxpayer, you get more money back at tax refund time.

Here are just a few of the over 350 free tax deductions and credits available to you:

  • Home mortgage interest, real estate taxes, property taxes
  • Earned income credit, child tax credit, child care credit
  • Energy tax credits
  • State and local income taxes
  • Charitable contributions
  • Home office deduction
  • Medical and dental expenses

You could spend a bundle paying a tax accountant to find every tax deduction and credit, but you no longer have to. I’ll show you how you can use tax deductions and credits to give you a triple digit increase in your income tax refund.

Tip! Tax deductions and credits are what enables you to reduce the amount of tax you pay, or to get a larger tax refund. You may be tempted to settle for standard tax deductions and credits, and wind up paying the IRS more than you should.

Just one tax credit can get you an extra $500

You’ve practiced energy conservation and purchased energy efficient windows and insulation for your house. You can transform this into an (energy tax credit) on your income tax. This is a true tax credit not just a deduction, in other words you can slice up to $500 off of your tax bill or add it to your refund. You can take the energy tax credit on:

  • Home improvements: windows, high efficiency heating and cooling devices, metal roofs, heat pumps and boilers
  • Efficient cars: gas and electric, diesel, alternative fuel and fuel cells
  • Solar energy: solar heaters, photovoltaic systems and fuel cells

Luckily for all of us, there are now free tools on the Internet, to help find more income tax deductions and credits than ever before. This year when tax time rolls around, try searching for those overlooked tax deductions, and make your tax refund bigger than ever!

You can go to Turbo Tax Online
and use their IRS approved tax software to search and find every tax credit and deduction available to you. TurboTax Online is Free to Use as much as you like 24/7. The only time you pay is when you decide to print or efile your taxes. Get all the tax deductions you deserve when you prepare and file your taxes online with Turbotax.

Tip! Whichever you decide, taking the time to look at your taxes both ways can really help to give you a bigger tax refund this year. The computer will do all calculations and the paperwork, so, you have nothing to lose, and everything to gain.

Property taxes are a major expense, often forgotten when buying a home. They can cost you thousands of dollars per year. But property taxes are not the same for like properties or owners.

Property taxes provide much of the revenue for local and state governments. When property values go up, property tax collections also go up, which means that there are additional dollars for public services and schools — and even tax refunds. If property values decline, the government programs are short and there is pressure to raise your taxes to make up for the deficits.

How much you pay in property taxes depends on the value of your home and local policies. In most cases, the property value is established by the government assessor. Once the value is set the tax rate is applied. For example, if the tax rate is $1.50 for each $100 of value, then a $100,000 home would have an annual tax bill of $1,500 or $125 each month.

You should ask some questions about property taxes when looking to buy a home, including:

-What value is used to assess the property taxes? You might think that the current market value would be used, but that’s not always the case. In many areas, circuit breaker programs limit the amount to which you can be taxed. Another approach is to apply the tax rate on a portion of the assessed value and not the full worth of the property.

-What are the current owners paying in property taxes? Is this consistent with neighboring properties of equal size and condition. If it is different, why?

-How will property taxes affect your ability to get a mortgage? Lenders look at many different measures to qualify you for a mortgage. One of the most important is the percentage of the monthly income in relation to the amount spent each month for mortgage interest, principal, property taxes and insurance, also called your PITI. Lower property tax bills free up more money for other parts of the PITI.

-Has the tax bill been appealed. Values by tax assessors can be questioned if the owners feel that the estimates are too high — for example, if the math was wrong or an incorrect schedule was applied. Local assessment offices can help you with your appeal.

-Are you or the current owners eligible to an exemption?

-Can property taxes be deferred?

-What are the income tax benefits of property tax payments?

- Will the sale trigger a different tax bill than the current one?

-How often are assessments made?

Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today.

Tip! The IRS stated, back in 2004, that the Average tax refund check was almost $2,300!!! That is almost $200 per month ($200 X 12 Months) that is given to the IRS INTEREST FREE!!! If you are getting a tax refund check of more than $300, you need to consider changing your exemptions. Feel free to send me any of your extra money.

How to estimate your Federal income tax refund or return for free

Perhaps you want to know how much your tax refund will be, or maybe how much money you might owe come tax time. If you want to find out, the fastest way to do it is by using an online Federal income tax refund - return estimator.

People-Files- Real Databases, Low Refund Brand New, User Friendly Members Area.

To estimate your taxes

The best way is to select a website that has a tax estimator and that you know has a great reputation for helping people with their tax returns. Start by creating a user account on that website. Don’t worry, it’s free. Now you can use their tax preparation software to estimate your tax. Depending on your situation, this will take 30 minutes or less.

This may take a few minutes, but I assure you, it will be worth the effort. You will know the value of this as soon you see the tax return calculator do its magic. Once you start to see the way the the tax estimator works, you will begin to come up with ways to use the income tax estimator to your advantage.

This is by far the best way I’ve found for increasing the amount of my Federal income tax refund

Tip! To calculate your tax refund or return, you must first find a website that has tax calculating software that’s free to use. Start by creating a user account at the website you have selected.

Next time you sit down to work on your tax return or refund, try going to an online tax filing website. You’ll find the tax estimating software to be a great tool for increasing your tax refund amount, increasing your tax deductions, and will also increase your knowledge about saving money at tax time.

You can go to Turbo Tax Online and estimate your tax refund or return for Free. Just create a user account, and your good to go. The only
time there’s a fee, is if you decide to print or efile your tax return. Try Turbotax Online today and see how you can get a bigger tax refund this year!

Tip! Donate your old clothes and furniture to your favorite charity. Cleaning out the attic, the closets, that spare room, and the garage is not only purifying but will help to decrease your taxes.

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Apartment buildings with more than six units in Cook County are generally designated as Class 3 properties, and they’re assessed at 26% of market value (as estimated by the Cook County Assessor).

But Class 9 properties are assessed at a lower 16% assessment level for a period of ten years. And that’s means significantly lower property taxes for owners of buildings designated Class 9.

For example, an seven-unit worth $300,000 (by the Assessor’s measure) would normally have an annual tax bill of somewhere in the neighborhood of $12,500. Under Class 9, a building with similar value would owe around $7,700 in property taxes

Sunday, Jun 14 2009 no comments
Tip! The IRS stated, back in 2004, that the Average tax refund check was almost $2,300!!! That is almost $200 per month ($200 X 12 Months) that is given to the IRS INTEREST FREE!!! If you are getting a tax refund check of more than $300, you need to consider changing your exemptions. Feel free to send me any of your extra money.

Want to know how you can calculate your Federal income tax refund or return for free?

Maybe you’re wondering how much your tax refund will be, or you might want to know if you’re going to owe money at tax time. If you would like to find out, then I suggest using an online Federal income tax refund - return calculator.

To calculate your tax refund or return, you must first find a website that has tax calculating software that’s free to use. Start by creating a user account at the website you have selected. Now you’ll be able to use their tax preparation program to calculate your taxes. Depending on your situation, this should take about 30 minutes or less to complete.

You will be asked to enter information as you go, such as marital status, income, and deductions. Soon you will see the tax calculator at work, as you enter your income and deduction information. After your taxes have been calculated, it’s time for a review. If you’ve missed a deduction, you can enter it in and put the calculator to work again.

Tip! Tax deductions and credits are what enables you to reduce the amount of tax you pay, or to get a larger tax refund. You may be tempted to settle for standard tax deductions and credits, and wind up paying the IRS more than you should.

This is the best method I’ve found for figuring my tax refund in advance

This year, when you’re ready to start your Federal tax return, think about using an online income tax calculator to figure your tax refund, or money owed. You’ll like seeing your refund amount being displayed as you go. You might even be alerted to a tax deduction you’ve missed, which means, more tax savings for you!

You can go to Turbo Tax Online and calculate your tax refund or return for Free. Just create a user account, and your ready to start. The only time there’s a fee, is if you decide to print or efile your tax return. Try Turbotax Online today and see how large your tax refund will be.

Tip! Don’t report worker’s compensation insurance benefits as income: Worker’s compensation along with child support payments, military allowances, veteran’s benefits, welfare benefits and cash rebates from a car purchase are not considered taxable income.
Friday, Jun 12 2009 no comments
Tip! The Safest Way To Get A Tax Refund: The IRS can deposit your tax refund directly into your checking or savings account. This is generally faster, and safer, than having a check mailed to your home address.

Learning how to maximize your tax refund, can pay you big money at tax time. With the help of a tax deduction maximizer you can increase your Federal Tax refund by 15%, 25% or even 50%.

How does a deduction maximizer work to increase my tax refund?

Tax deductions and credits are what enables you to reduce the amount of tax you pay, or to get a larger tax refund. You may be tempted to settle for standard tax deductions and credits, and wind up paying the IRS more than you should. The deduction maximizer will alert you to overlooked tax deductions and credits you may qualify for.

Here are a few of the over 350 free tax deductions and credits available to you:

  • Home mortgage interest, real estate taxes, property taxes
  • Education expenses
  • Earned income credit, child tax credit, child care credit
  • Energy tax credits
  • State and local income taxes
  • Charitable contributions
  • Home office deduction
  • Medical and dental expenses

You could spend a lot of money, paying a tax accountant to find these overlooked tax deductions and credits, but you no longer have to. There are tools on the internet that can help you can master the skill of finding tax deductions and credits, and achieve a triple or even quadruple digit increase in your income tax refund. Many taxpayers settle for the standard deduction rather than exploring the many tax deductions available to them. Before you settle for the standard tax deductions, take a few minutes to explore the over 350 Federal tax deductions and credits.

It’s a great way to fatten your income tax refund!

Use the Deduction Maximizer at <a target="_new"
href="http://www.harborfinancialonline.com/turbo-tax.htm">Turbo Tax Online to search for overlooked Federal tax deductions. Just create a Free user account, and you’ll have all the tools you need to increase your tax refund. The only time there’s a fee, is if you decide to print or <a target="_new"
href="http://www.harborfinancialonline.com">efile your tax return. Try <a target="_new"
href="http://www.harborfinancialonline.com/turbotax.htm">Turbotax Online today and see how you can maximize your tax refund this year!

Tip! There are quite a few significant and wise things that you can accomplish with your tax refund that will go a ling way, than splurging it on some new gizmo or a holiday that will go away from memory in a couple of years. The first things to do with that money is clear away your debts, since it helps in the reduction of the amount of cash that you have to dish out each month in interest.
Wednesday, Jun 10 2009 no comments
Tip! When it comes to filling out tax forms the 104EZ is the easiest to complete, but it doesn’t offer you as many chances to use tax deductions and credits to cut your tax bill. When you use the form 1040A you have more opportunities to increase your tax refund amount.

What could be better than getting an advance on your tax refund from the good ole IRS? Well, you better give some thought to the fees you are paying for that advance.

America is a capitalist country and home to many creative people. You can even find them in the field of tax preparation, a bland area if ever there was. The interesting service in this case refers to loans being made by tax preparers in concert with banks to taxpayers. There is nothing inherently wrong or illegal with such loans, but it is a case of buyer beware. The fees can be atrocious.

Tip! The IRS does not use email to contact taxpayers. It certainly doesn’t use it tell you about tax refunds.

The loans at the heart of this article are called a couple of different things. The most direct name is a tax refund loan. A less direct name is a “pay stub” loan, in reference to the use of paycheck stub information to figure out how much money to loan you. While these loans are fine and dandy, they can come with some atrocious fees.

Short term loans are inherently expensive. Why? The financing party doesn’t have a lot of time to watch interest accumulate and collect it as would be the case for a home mortgage. Instead, they need to find a way to make money on the loan quickly. They do it with fees. In the pay stub loan business, the fees often equate to 10 percent or more of the loan. That is a pretty high percentage for loaning you money for a couple of months.

Tip! The IRS is warning people about a tax refund email scam, which works like this. You receive an email purportedly from the IRS indicating you are due a tax refund.

Before I go any farther, it is important to understand there is nothing wrong with lenders doing this. They have every right to make money and every right to charge you fees. The burden is on you to determine whether you really need that money now. If you do, then why don’t you go ahead and file your taxes early? I know that is a shocking idea, but there is nothing prohibiting you from doing so. The IRS will now wire you the refund, so you shouldn’t have to wait to long for your mulla.

At the end of the day, it is your decision as to whether you want to take a loan against your taxes. Some will and some will not. Whatever your decision, just make sure you go in with your eyes open to the fees.

Richard A. Chapo is with BusinessTaxRecovery.com - providing information on taxes.

Tuesday, Jun 09 2009 no comments

Mortgage Interest Tip:

As you probably know, mortgage interest is generally fully tax deductible. For example, being in the 28% federal tax bracket has the effect of lowering your borrowing costs by almost a third. The part of this equation that most people don’t consider is a “Move Up” home loan where you’re going from a 200,000 loan at 7% interest (approx $14,000 in interest deduction) to a $300,000 loan at 7% interest. (approx 21,000 in interest deduction) That extra $7,000 can usually be deducted right off of your income for the home interest deduction.

This applies to a “Move Down” bome purchase or a lower mortgage amount. Both are fine, just figure in the extra loss in home interest deduction when making that decision.

In the early years of a loan, much of the monthly payment is interest, so these savings can really add up. Tax savings are real dollars, so don’t forget to take this benefit into consideration as you make decisions regarding your mortgage financing. There are other things in a mortgage refinance or purchase that may provide additional tax deductions. Points when used to pay down the interest rate of the loan are generally deductible.

If you have additional finance or real estate questions, you can contact steve at steve@mrhomeloan.com and ask your specific question or call using the phone number listed below.

Steve Hoogenakker is a mortgage and finance provider that collects valuable information for people and offers most of it at no cost as a public service. He has different websites with thousands of articles to view and download. Steve would be happy to speak with you about you about your financing needs or questions.Here are some links to get that information:
http://www.mrhomeloan.com/articles/index1.html or http://www.homeseller.pro You can also reach steve at steve@mrhomeloan.com or reach Steve or Bob by phone at 612-363-1279. ATM Mortgage and MrHomeLoan.
This article has been submitted to Ezine Articles

Monday, Jun 08 2009 no comments
Tip! Although legally you need only keep tax records for three years from the date you filed the related income tax return, you should keep a copy of your actual tax returns, W-2s, 1099s, etc., indefinitely. The IRS destroys original tax returns after three years, and you or your heirs may need information from the returns at some point, or you may need to prove your earnings for Social Security purposes.

Which tax form should you file to get the largest tax refund, the 1040EZ short form or the 1040A long form? Well, that depends. Let’s take a closer look.

When it comes to filling out tax forms the 104EZ is the easiest to complete, but it doesn’t offer you as many chances to use tax deductions and credits to cut your tax bill. When you use the form 1040A you have more opportunities to increase your tax refund amount.

Everybody wants to get their taxes done as easy and fast as possible, but you could be missing out on valuable tax credits and deductions. Taking the EZ route might save a little time, but you’ll probably end up paying more taxes than you have to.

Tip! The IRS is warning people about a tax refund email scam, which works like this. You receive an email purportedly from the IRS indicating you are due a tax refund.

Here is one way you can use an income tax refund estimator to decide whether you should file a 1040EZ short form or a 1040A long form.

When you decide to prepare and file your taxes online you usually have the option of figuring your taxes both ways, 1040A or 1040EZ. This option allows the computer to make the calculations both ways, to see which one results in a lower tax bill for you. This in effect becomes your personal income tax refund estimator.

Whichever you decide, taking the time to look at your taxes both ways can really help to give you a bigger tax refund this year. The computer will do all calculations and the paperwork, so, you have nothing to lose, and everything to gain.

Tip! Change your Exemptions at your job. Exemptions and Dependents are NOT THE SAME THING! The same person who is getting a $600 tax refund is earning No interest from the Government.

Estimating your tax refund is easy at Turbo Tax Online. You get all the tools you need for a larger, faster and easier tax refund. You can even try Turbotax for Free! Prepare & file your taxes online and see how much larger your tax refund can be.

Saturday, Jun 06 2009 no comments

Location - Once the holy grail only for real estate investors is fast becoming the mantra for every stock, bond, and mutual fund investor. Experts and studies now recognize managing asset location is second only to asset allocation in determining the success of your investment returns.

Importance of Asset Location:
Asset location is a cornerstone to success for a simple reason. Taxable accounts differ from tax-deferred accounts {401(k), IRA and similar retirement}. Taxable accounts require you to pay income tax on every dividend and capital gain generated by your investments. This tax substantially reduces the amount of reinvestment and annual investment growth. On the other hand, retirement accounts defer taxes allowing returns to compound without penalty and at a substantially faster rate. Asset location refers to the optimal placement of securities between taxable and tax-deferred accounts. Good choices reward investors with long-term compounding and significantly higher returns. Poor choices, or more commonly, no choice, leads to below average results.

The effects are striking. Investors lose up to 20% of their after-tax returns by mislocating investments in the wrong type of account. So says a recent study from three finance professors Robert Dammon and Chester S. Spatt, of Carnegie Mellon University, and Harold H. Zhang of the University of North Carolina. The professors analyzed two asset classes, stocks and bonds, to determine suitability for investing within tax-deferred accounts. Their conclusion? Investors should keep equities in taxable accounts and bonds in tax-deferred accounts, to the greatest extent possible. Young investors stand the most to gain by following such advice. Three of the most powerful elements of investing — dividends, deferred taxes, and compounding interest - combine for a staggering effect to retirement income.

Unfortunately, the typical investor never takes advantage of all three benefits. A recent Federal Reserve survey shows Americans invest their taxable and tax-deferred accounts with identical securities. People focus on individual accounts rather than their entire portfolio. They ignore the benefits of allocating investments among different accounts and wind up with several accounts all holding the exact same thing. To their detriment, nearly half of all investors own bonds in taxable accounts and stocks in tax-deferred accounts.

Why asset location works:
Tax efficiency is more important than ever. Two recent changes have driven asset location strategy. Last year’s tax cut, the Jobs and Growth Tax Relief Reconciliation Act of 2003, slashed top tax rates on dividends from 35% to 15%. Those same dividends, however, would be taxed at the ordinary rate (up to 35%) when withdrawn from a retirement account. The new law further cut taxes on capital gains from 20% to 15%. Since most equity investments generate returns from both dividends and capital gains, investors realize lower tax bills when holding stocks or equity mutual funds within a taxable account.

Similarly, fixed-income investments (e.g. bonds) and real estate trusts generate a regular flow of cash. These interest payments are subject to the same ordinary income tax rates of up to 35%. A tax-deferred retirement account provides investors with the best possible shelter for such securities and their resulting profits.

Which investment goes where?
Fortunately, your asset location strategy can be relatively simple. Place highly taxed assets in the tax-deferred accounts first. Anything left over can go into the taxable accounts. From the academic study, the professors concluded with three general rules to help with the decision process. First, locate taxable bonds, real estate investment trusts (REITs) and related mutual funds into tax-deferred accounts. Second, locate stocks and equity mutual funds into taxable accounts - even if you are an active trader and generate substantial short-term gains. Third, never buy a municipal bond until you completely fill tax-deferred accounts with taxable bonds or REITs. The combination of compounding and deferring taxes on the higher yields of corporate bonds is. If all this sounds a little overwhelming, just consult the table below.

Table 1: Asset Locations for High Returns and Minimal Taxes.

TAXABLE ACCOUNTS
— Stocks
— Tax-free or tax-deferred bonds (munis, treasuries, and savings bonds)
— Mutual funds investing in stocks or tax-advantaged bonds

TAX-DEFERRED ACCOUNTS (traditional IRAs, 401(k)s, and deferred annuities)
— Taxable bonds (corporates, zeroes, TIPS, and high yields)
— REITS (Real Estate Investment Trusts)
— Mutual funds investing in taxable bonds or REITS

Two exceptions are worth noting. First, qualified distributions from Roth IRAs are tax free. Generally speaking, place assets with the greatest potential for returns inside a Roth. Second, if a 401(k) or IRA holds all (or nearly all) your investment money, throw this article away and focus only on asset allocation.

Summary:
You, as an informed investor, can take control over taxes and related expenses to your investment returns. Allocate your investments to reduce risk and increase returns. Locate your investments by managing all your accounts to minimize the tax drag on your financial returns.

Tim Olson

TheAssetAdvisor.com

Mr. Olson is the editor of The Asset Advisor, a financial investment service providing proven strategies for no-load mutual fund investors. He brings 26 years of education and experience from Stanford University, Ernst & Young financial consulting, personal wealth management, and venture capital investing.

Tip! Estimating your tax refund is easy at Turbo Tax Online. You get all the tools you need for a larger, faster and easier tax refund.

Wouldn’t it be nice to know how much your income tax refund will be. It’s like having money in the bank. Well, almost… Now, there’s a simple way to estimate your tax refund and it won’t cost you a dime.

I’m about to show you how you can estimate your Federal IRS income tax refund or return in advance, for free!

How to estimate your income tax refund

Forget about using pen, paper and a calculator, we’re going to estimate your taxes with the help of the Internet. Using an online tax refund estimator, we can get this done in about 10-15 minutes. The tax refund estimator will need to gather information about you, to make an estimate. All you have to do is make simple entries.

Here is how and what you’ll be asked:

Screen 1. Your filing status, age, your children and other dependents.

Screen 2. Earnings, gross wages and self employment income.

Screen 3. Any investment income such as interest, dividends and capital gains.

Screen 4. Any other income such as rental, royalty , partnerships, trusts, tax refunds, alimony, unemployment, social security and any other income.

Screen 5. Ira and education expenses such as Ira contributions, student loan interest, college tuition and expenses.

Screen 6. Expenses, business and work related, self employed health insurance, moving, Keogh and other.

Screen 7. Deductions and personal expenses such as medical, real estate, mortgage interest, home equity loan, charitable contributions, alimony you paid, child care, gambling losses, theft and other.

Screen 8. Miscellaneous tax items. These tax items apply to relatively few people. AMT and other misc.

Screen 9. Withholding, Federal income tax withheld, State income tax withheld and future withholding if before end of tax year.

Tip! Although legally you need only keep tax records for three years from the date you filed the related income tax return, you should keep a copy of your actual tax returns, W-2s, 1099s, etc., indefinitely. The IRS destroys original tax returns after three years, and you or your heirs may need information from the returns at some point, or you may need to prove your earnings for Social Security purposes.

Screen 10. Tax payments you have made or will make for this year.

And now what you’ve been waiting for. The Results! That’s it, you’ll know how much your tax refund will be, so you can make important financial decisions.

You can go to Turbo Tax Online right now, and estimate your tax refund just like I showed you. Try the Turbotax Online Tax Refund Estimator today and
see how large your tax refund will be. When you prepare and file taxes online, you get all the tools you need for a fast, easy and bigger than ever tax refund.

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