capital gains taxes http://www.artwoo.com Returned search results for capital gains taxes Copyright 2008 Sat, 22 Nov 2008 13:01:53 +0000 http://www.artwoo.com/rss/capital+gains+taxes Home Seller Capital Gain Tax Changes http://www.artwoo.com/article/home-seller-capital-gain-tax-changes http://www.artwoo.com/article/home-seller-capital-gain-tax-changes#comments Mon, 01 Sep 2008 23:57:25 +0000 capital gains taxfree profitstax liabilitiesreal estate investorstax exclusionnecessary repairshousing assistance http://www.artwoo.com/article/home-seller-capital-gain-tax-changes
It works like this: If you sell a home that has been your primary residence for two out of the last five years you can exclude up to $500,000 in capital gains from income tax. The original intent was to prevent large liabilities from locking older homeowners into their homes.

That exclusion has been a wonderful break for clever . You could buy a home that needed rehabbing. Move into the home and start doing the . After 18 to 20 months you could offer the home for sale with the stipulation that the deal could not close until after you passed the two year residency mark.

The idea here was that the home would be worth a great deal more after fix-up, yet you could avoid paying capital gains tax on your profit because you had lived in the property for the required two years. This is a terrific way for new real estate investors to get started. With the tax from a couple of these deals you would have the cash need to make down payments on two or three properties and you would be off and flying.

No Tenants, Please

Some investors using this tactic rented the property before or after they used it as a primary residence. They may have bought a property that was already being used as a rental and it suited their needs to leave the tenant in place for a year or three, before they moved in. Until Jan. 1, 2009 they could still claim the if the home was used as their primary residence for two out of the five years they owned the property.

When it finally dawned on the politicians that the rule was curtailing the amount of tax income that they could frivolously spend, they, of course, changed the rules. Under the "The Tax Act of 2008" the amount of profits that can be excluded from your income tax becomes more complicated. Your gain will now be taxed based on the percentage of time you used the home as your primary residence.

Under the new act, any capital gain must be divided between qualifying and non-qualifying use. That means your non-qualifying use of the property will cut the amount of capital gain that can be excluded from your income tax.

It Now Works Like This

You avoid up to $250,000 in capital gains ($500,000 if married and filing jointly) when selling your home. To earn that exclusion you must own and live in the property as your primary residence for at least two years out of the five years ending on the date of sale.

Here's where you must be careful. If the property isn't used as a primary residence during the entire five-year period you will have to pay more capital gains tax. If you use the house as a rental, or a vacation home or as a second home; any of those would be non-qualifying use and would reduce the amount of your capital gains tax exclusion.

Just remember that "Qualifying Use" means the property must be used as a primary residence. Non-qualifying use means the property is not being used as a primary residence by either the homeowner or the homeowner's spouse. If you use the home as your primary residence you will not need to allocate your gain.

Calculating Gain

In most cases calculating your gain will be simple. The gain from the sale just needs to be allocated between what gain is excluded and what gain is not excluded. The portion of capital gain that cannot be excluded is determined by dividing the period of non-qualifying use by the period of ownership:

Period of non-qualifying use
--------------------------------------
Period of ownership

Until the new act, tax advisors suggested homeowners sell their home after living their for at least two years out of the five years ending on the date of sale. This allowed the owners to qualify for the capital gains exclusion, because the exclusion was based on the last five years of ownership.

Under the new regulations the exclusion is based on the period of time when the property is used as a primary residence. Any other use could mean you must pay more in capital gains tax.

Taxpayers owning second homes, vacation homes, and rental properties will need to revise their capital gains strategy accordingly. The use test is applied for the time period beginning January 1, 2009, until the property is sold. To get the most tax benefit, the property will need to be used entirely as a primary residence during this time period.

If you would like to review the many ways government can confuse a free market with an incomprehensible tax code, you will find a summary of the tax provisions in H.R. 3221 from the Ways and Means Committee here:

http://taxes.about.com/gi/dynamic/offsite.htm?zi=1/XJandsdn=taxesandcdn=moneyandtm=30andgps=514_1681_1020_567andf=10andtt=13andbt=0andbts=0andzu=http%3A//waysandmeans.house.gov/media/pdf/110/eresummary.pdfMark Walters is a third generation real estate investor and founder of CreatingWealthClub.com. For a limited time Mark is offering his big guide to finding hard money loans for real estate investing free. Free guide to private money loans.  http://www.FindPrivateMoney.info]]> Tithing - Giving Money Away To Gain Tax Benefits http://www.artwoo.com/article/tithing-giving-money-away-to-gain-tax-benefits http://www.artwoo.com/article/tithing-giving-money-away-to-gain-tax-benefits#comments Wed, 29 Nov 2006 02:27:09 +0000 acts of kindnesstax creditsmaximum credit401 k plancharitable donationscapital gains taxestax deduction http://www.artwoo.com/article/tithing-giving-money-away-to-gain-tax-benefits
As human beings we are compelled to help those who are less fortunate than ourselves. It makes us feel good inside when we are able to help a family in trouble, donate money to the church, or donate our old clothes to the Good Will. But did you know that these can actual lower the amount of taxes that you pay?

are given by our government to encourage and reward acts of kindness and donations to charitable organizations.

Tax credits in many ways are better than s. You see... a tax deduction is a method that lowers your taxable earned income. For instance, a tax deduction could be the interest you pay on your house, or the contributions you make to your employers 401(k) plan. With lower earned income, you pay less tax.

A Tax Credit on the other hand, does not require you to lower your earned income to receive a reduction in the taxes you pay. You simply calculate how much you owe for taxes and then subtract the tax credit from the total.

For tax year 2006 , taxpayers filing as single and unmarried head of household have a amount of $200. Taxpayers that are filing as married filing joint have a maximum credit of $400. Taxpayers filing married filing separate have a maximum credit of $200. What this means is that if you contribute to a charitable organization you can take anywhere from $200 to $400 off the amount of taxes you owe to the government. Where else can you get a deal like that?

As always check with your accountant or tax professional for advice on making and tax credits. However, tax credits are available to everyone and are fairly straight-forward.

Charitable organizations help thousands of people every year have a better life. Who knew that in helping them do their job, you too could benefit. I pays to help others. Get great information on how to reduce your Income Taxes and by signing up for our free newsletter at http://www.taxes-rule.com ]]> A Real Estate Business Strategy To Generate Up To $500,000 From Your Home http://www.artwoo.com/article/a-real-estate-business-strategy-to-generate-up-to-500000-from-your-home http://www.artwoo.com/article/a-real-estate-business-strategy-to-generate-up-to-500000-from-your-home#comments Tue, 25 Jul 2006 00:27:09 +0000 irs publication 523real estate businessirs govirs rulebusiness taxtax deductionbusiness strategy http://www.artwoo.com/article/a-real-estate-business-strategy-to-generate-up-to-500000-from-your-home business strategy for real estate in this investment tip. Read on..

The IRS has a "2 Years and a Day" rule that can mean money over and above your home based deduction.

This secret alone can mean that your own home can earn you half a million dollars, so this is one strategy you don't want to miss.

This states you can generate up to $250,000 tax-free profit on your home, and up to $500,000 (if you are married) and $250,000 if you are not if you have lived in the home at least two years and one day out of five years of real estate ownership.

This means you can rent your home as part of your real estate business, get a home based business and make up to $500,000 tax free. As long as you have rented your home for up to three years, you can take advantage of this great business strategy.

If you intend to make this claim as well as make a home based business tax deduction for your business, you need to move back into your real estate if it has been three years since you have lived there -- but the amount of time you spend living in the real estate property before and after the rental counts towards the 24 month and one day rule.

As long as you have not bought and sold another real estate property while leasing out property A, this business strategy can work for you, helping you to make money from both the IRS and from any home based business tax deduction you qualify for.

Don't forget to grab any home based business tax deduction you can -- you will be taxed some money on your profit, in all likelihood.

If you need more information a great resource is the Selling Your Home at http://www.irs.gov

In Canada this business strategy for real estate is much better!

Canadians can qualify for a home based business tax deduction or two for their real estate business, but their capital gains taxes exceptions are even easier because you are exempt from such taxes on your main residence.

If you have multiple homes, call a CA to figure out whether this business strategy will work for you.

Your CA will be able to explain residency qualifications for you. Again, though, focus on each home based business tax deduction while also going for the capital gains exemption.

It's a solid real estate business strategy to spend less on taxes than you have to in order to expand your profit line.

That's one way to make the most of each home based business tax deduction.

Take advantage of $147 in free investing tips showing examples of other investment techniques and real estate business strategy for you to profit from. Brad Wozny and his mother generated over $1 Million profits in real estate in 93 days. Their mission to help 100,000 Women and Families Achieve Financial Freedom. Brad and Mary are endorsed by Mark Victor Hansen, co-Creator of "Chicken Soup for the Soul". Click on http://millionaireriches.com/wpblogger/ now for $147 in FREE Gifts and Tips ]]> Things To Know When You Buy Property In Spain http://www.artwoo.com/article/things-to-know-when-you-buy-property-in-spain http://www.artwoo.com/article/things-to-know-when-you-buy-property-in-spain#comments Mon, 11 Dec 2006 08:27:10 +0000 buy property in spainproperty in spainreal estate agentlaws in spainhome in spaincapital gains taxesspanish lawyer http://www.artwoo.com/article/things-to-know-when-you-buy-property-in-spain buy . These are generally used as vacation homes for part of the year. Some people rent the property for part of the year, when it's not in use. The market has been very good for real estate in many areas, particularly the Costa Blanca.

Things to Know When You Buy Property in Spain

The first thing you should do when searching for a is to find a reputable . You want someone who is registered and experienced. Unscrupulous agents have been known to exploit foreign buyers who may not understand real estate . Learning to speak Spanish is a good way to understand and communicate effectively.

Be sure to hire a lawyer to assist you in your purchase. An attorney will go over the contract, mortgage information and protect your interests in the sale. A will be well acquainted with the laws involving real estate transactions.

A real estate agent may recommend a lawyer. It's better to get a lawyer independently to be sure he is working only for you. A friend or neighbour may be able to recommend someone for you.

In some cases, the seller may ask you to put a reduced price in the contract and pay the difference in cash. The reason for this is the seller wants to pay less in . Keep in mind that this practice is illegal and is considered tax evasion.

While this may not seem like a problem, keep in mind that you would be paying more taxes later, in the event you sell the property. If you sell, your capital gains tax will be based on the purchase price and your selling price. This may cost you a significant amount more in capital gains taxes.

Taking a Mortgage to Buy Property in Spain

Unless you are independently wealthy, you will probably need a mortgage to purchase your vacation property. There are a variety of different mortgage types you can get for purchasing your new home. Take the time to research your options to get the best deal.

An International Mortgage can be found with a lender in your home country. Larger mortgage companies generally offer mortgages to people interested in purchasing properties in other countries. These are generally offered for a second home when you already own a home in your country. In general, you can finance 70 percent of the purchase price with a 30 percent down payment.

Second mortgages are a popular method for buying a holiday home. This is a good option if you have significant equity in your primary residence. With a second mortgage, you are borrowing against your primary residence to fund the purchase of your home in Spain. Your home is the collateral. Make sure you can afford the payment, interest and taxes.

A Spanish mortgage is offered by a Spanish company to non residents looking to purchase property in the country. These are generally offered by larger banks. Be sure you understand the terms and conditions of the loan. This is easier if you speak the Spanish language. A lawyer can also help you understand the terms of the loan. Compare interest and fees here with lenders in your home country.

Once you have researched your options and understand the differences, you will be ready to choose a lender. Decide which avenue of funding you will pursue. Then you are ready to begin your search for a lender. The internet is a good way to compare lenders and loans. Concentrating on latest news in Spain, Peter J. Mason writes articles at large for http://www.alicante-spain.com . Writing for reports (for example http://www.alicante-spain.com/spain-tips/buy_property.html on buy property in Spain ) he demonstrated his capability in the field. ]]> A 1031 Exchange Is Win/Win For Everyone http://www.artwoo.com/article/a-1031-exchange-is-winwin-for-everyone http://www.artwoo.com/article/a-1031-exchange-is-winwin-for-everyone#comments Sat, 01 Mar 2008 11:20:01 +0000 1031 tax exchangeinterest free loancapital gains taxescapital gains taxbeneficial arrangementproperty investorsreal estate investors http://www.artwoo.com/article/a-1031-exchange-is-winwin-for-everyone 1031 tax exchange is a method used by so that they may indefinitely defer tax liability on a property's sale. This is accomplished by transferring the rights to a property that one would like to sell to an intermediary, who then holds on to the sale proceeds and uses them to purchase a replacement in compliance with the rules set out in Section 1031.

Although the current popularity of the 1031 might lead one to believe that it only recently came on the scene, this is untrue. Actually, the history of the 1031 stretches all the way back to 1921, although the original concept was significantly different than what we currently think of as an exchange. The 1031 Exchange truly came into its own in the 1970s, which saw a host of significant changes in the manner that these exchanges were regulated. These modifications paved the way to a more powerful conception of the 1031 process and generated greater interest among .

The deferral an exchange grants to the taxpayer might, at first, appear to represent a gift given by the government, however it is, in reality, closer to an , because the taxpayer is expected to repay the money gained from the tax deferral by paying upon the subsequent sale of a replacement property. Additionally, this interest-free loan may be kept by the investor indefinitely; an investor may elect to conduct any number of exchanges before ultimately making the decision to make an outright sale, on which capital gains taxes must be paid.

Section 1031 exists as a mutually between the investor and the United States government, providing a benefit for the U.S. economy in addition to the individual taxpayer. By looking upon the transfer of money in an exchange as representing an extension of an existing investment rather than as a separate transaction liable to be taxed, investors are given the opportunity to transfer their money into the most profitable possible investments. This, in turn, helps to elevate the economy by bolstering the growth of new jobs.

Like anything else, the 1031 exchange has skeptics. Some advocates of change in Section 1031 will argue that the tax free profit gained by to the taxpayer in the exchange process represents an unreasonable advantage. Another frequent concern is that the strict deadlines imposed on some aspects of the 1031 process could promote an atmosphere of frantic buying, resulting in an increase in the cost of replacement properties. These criticisms, however, are only tenuously linked to reality, and the odds that Section 1031 will go through significant changes in the foreseeable future are slim. Looking at the big picture, most will concede that the 1031 exchange is greatly beneficial to all parties involved, as it allows taxpayers increased profits on the sale of property while also promoting job growth and consequently promoting the greater good of the U.S.. There is no reason to doubt that the 1031 tax exchange is destined to be a part of the investment world for years to come. Here Are Two Important Resources For Learning More About A 1031 Tax Exchange: http://www.1031podcast.com and http://www.top1031exchange.com ]]> Our Own Homes Are The Mother Of All Tax Shelters http://www.artwoo.com/article/our-own-homes-are-the-mother-of-all-tax-shelters http://www.artwoo.com/article/our-own-homes-are-the-mother-of-all-tax-shelters#comments Mon, 24 Jul 2006 02:27:14 +0000 mortgage paymentsirsmortgage debtstate taxestaxes duemoneyvast http://www.artwoo.com/article/our-own-homes-are-the-mother-of-all-tax-shelters vast number of companies out there spending a lot of on advertising trying to convince us that we should be sending our hard earned dollars to some island in the sun, where (for a nice fat fee of course) they will keep our money safe and out of the hands of the . Most of these programs, for lack of a better word, are illegal or at the very best not as tax efficient as the claims they make.

Uncle Sam allows us to use our homes as a means of collecting a large number of tax deductions, credits and benefits. These were designed and assigned to law to help us offset the cost of owning our own homes. After all, homeowners are the cornerstone of any good economy. We buy consumable goods and services which creates jobs and supplies much needed dollars in both local and . These taxable deductions also keep the housing market fueled with new buyers which in turn helps keep the value of our homes going up. It really is only a matter of very simple math. As the demand for more and more homes increase, the supply gets smaller, (they don't make land anymore) - then the market price can only go one way, up. This creates real wealth for future generations of our families. For most of us, that is the "Great American Dream" - owning our own homes and creating real wealth for our retirement.

Our interest payments make up the largest portion of the in the early years of the loan. The interest we pay on our Home Loan, up to a maximum of $1 million in that's secured by a first and second home is tax deductible. These deductions will reduce our taxable income when calculated against our at the end of the year. The rules on these deductions are not too complicated once you know where to look. The $1 million level applies to joint tax filers. If you file single or separately you receive half the deductions allowed.

The interest we pay on a home improvement loan is also deductible against our end of year taxes, but calculated a little differently. We can deduct all the interest on a home improvement loan so long as the work is classed as "capital improvement". Repairs, maintenance or cosmetic upgrades do not count and are not tax deductible. Capital improvements increase the home's value. Adding a new room, a bathroom, anything that prolongs its life such as a new roof or adapting the home for new uses to assist older people or people with disabilities would be included for this purpose.

The Taxpayers Relief Act of 1997 which covers the exclusions on Capital Gains allows married couples who file jointly to keep up to $500,000 tax free profits on the sale of a home used as a principal residence for at least two of the prior five years. This amount is halved for those who are filing single or separately. Our taxable capital gains are reduced by the amount of our selling costs. These include real estate commissions, title insurance, legal fees, advertising, and inspection fees. Capital Gains are calculated on the following basis: the original purchase price, plus the cost of capital improvements, minus any depreciation and the selling cost.

With more and more people creating "Home Based Businesses" there are tax deductions available. If you use a portion of your home exclusively for business you could qualify to deduct a percentage of costs related to that portion. You can Include a percentage of your insurance, repair costs, utility bills and depreciation.

It would appear that the "Grass is not always greener somewhere else" and sometimes the solution to our problem is right there, on our own doorstep.

Have an opinion or a question you would like me to answer, then write me! http://www.CarlHampton.com Carl Hampton is the best selling Author of "From Credit Despair To Credit Millionaire" http://www.CarlHampton.com http://www.fcdtcm.com ]]> Top 7 Ways To Minimize Your Income Taxes http://www.artwoo.com/article/top-7-ways-to-minimize-your-income-taxes http://www.artwoo.com/article/top-7-ways-to-minimize-your-income-taxes#comments Mon, 07 Aug 2006 06:27:10 +0000 income taxesproperty taxesretirement plan distributionsretirement plan distributiontax brackettaxable investmentsmoney http://www.artwoo.com/article/top-7-ways-to-minimize-your-income-taxes income taxes? Are you getting all the credits and deductions you are entitled to? Here are 7 tips to help you minimize taxes and keep more in your pocket:

1. Participate in company retirement plans. Every dollar you contribute will reduce your taxable income and thus your income taxes. Similarly, enroll in your company's flexible spending account. You can set aside for medical expenses and day care expenses. This money is "use it or lose it" so make sure you estimate well!

2. 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.

3. Buy a house. The mortgage interest and real estate taxes are deductible, and may allow you to itemize other deductions such as and charitable donations.

4. Keep your house for at least two years. One of the best tax breaks available today is the home sale exclusion, which allows you to exclude up to $250,000 ($500,000 for joint filers) of profit on the sale of your home from your income. However, you must have owned and lived in your home for at least two years to qualify for the exclusion.

5. Time your investment sales. If your income is higher than expected, sell some of your losers to reduce taxable income. If you will be selling a mutual fund, sell before the year-end distributions to avoid taxes on the upcoming dividend or capital gain. Also, you should allocate tax efficient investments to your taxable accounts and non-efficient investments to your retirement accounts, to reduce the tax you pay on interest, dividends and capital gains.

6. If you're retired, plan your s carefully. If a retirement plan distribution will push you into a higher , consider taking money out of to keep you in the lower tax bracket. Also, pay attention to the 59- age limit. Withdrawals taken before this age can result in penalties in addition to income taxes.

7. Bunch your expenses. Certain expenses must exceed a minimum before you can deduct them (medical expenses must exceed 7.5% of your adjusted gross income and miscellaneous expenses such as tax preparation fees must exceed 2% of your AGI). In order to deduct these expenses, you may need to bunch these types of expenses into a single year to get above the minimum. To achieve this, you might prepay medical and miscellaneous expenses on December 31 to get above the minimum amount.

The most important thing is to be aware of the tax deductions and credits that apply to you and to plan for taxable events. And don't be afraid to ask for help. The benefits from consulting an experienced tax professional far outweigh the cost to hire that professional. Kristine A. McKinley, CFP, CPA, and founder of Beacon Financial Advisors, teaches individuals and families how to invest and plan for retirement, college, and other financial goals. Kristine offers financial and tax planning on an hourly, fee-only basis. To sign up for free financial planning tips, worksheets, checklists and more, visit http://www.beacon-advisor.com. © 2006 Beacon Financial Advisors, LLC and Kristine A McKinley ]]> Tax Tips For Passive Income Streams http://www.artwoo.com/article/tax-tips-for-passive-income-streams http://www.artwoo.com/article/tax-tips-for-passive-income-streams#comments Sat, 18 Aug 2007 21:15:00 +0000 small business ownerssmart investorsinternational investorssmart investment decisionssmart taxwork at home businessesinvest money http://www.artwoo.com/article/tax-tips-for-passive-income-streams international investors.

These people cheat themselves of their hard earned money because they failed to learn the benefits governments give anyone, if only they will start a business.

No one likes to pay taxes, but they are a part of life. Think of taxes like you would an investment. make more. payers pay less.

Most never think of taxes until it is time to fill out their tax forms. By then, it is too late. Most deductions depend on the individual's personal situation.

There are a few tax principles that apply to investors and small business owners. Most can help them save money.

, writing off expenses, effectively managing capital gains and paying attention to deductions, all year, will save a small business owner thousands of dollars.

Write Offs

It is amazing how many investors do not consider themselves as business owners. They in an effort to make money. They take courses. They buy periodicals. And, all this goes to waste because they fail to take advantage of the tax write offs offered them as small business owners.

Have you purchased office equipment lately? Do you have a home based office? You can write off any portion of this equipment, your home, or automobile used to earn an income.

The important thing is to keep records. , and investors, need to keep records of their business practices. At the end of the year they need to calculate the percentage of use went to the business.

If the automobile was used for business 20% of the time then every bill through the year that went into the vehicle, from air freshener to insurance, is a tax write off.

This is the same for the house. Everything from mortgage, insurance, renovations, utilities, lawn care, paint, and even the cleaning supplies can be written off. If the home office takes up 10% of the home's floor space, then 10% of every dollar that goes into the home, from mortgage insurance to window washing is a part of the tax write off.

Investors who invest in small businesses or are self-employed, generate operating expenses which can be written off. These include business trips, education, grooming, clothing, and cosmetic supplies.

However, all of these receipts must be kept, and logs must be maintained on a daily basis, or the revenue agency can refuse to allow the claim.

Capital Gains

Homeowners who sell need to report the capital gain on the sale is the actual cost of the home. If the home was improved then the cost of the improvements is calculated into the adjusted cost base of the home =96 reducing capital gains.

This is important for investors who trade stocks. Deferred payments can save the stock investor thousands of dollars.

Losses

Almost all work at home endeavours, and home based ventures experience losses. A client doesn't pay. A contract is broken, and the business owner experiences a lost.

This loss can be is tax deductible, especially if the business owner sends the account to collections. They may never recover their money, but they can use the loss as a tax write off against revenue.

However, there are other losses many home based business owners overlook. These include fees paid and commissions. Most new business owners and investors never think of deducting the bank fees from the account used for business purposes.

Conclusion

In the business world, there is no difference between saving money and making money. Anything that keeps the business in the black is equal. That means saving $1 equates to earning $1 or making $1 in sales. All are equally important to the venture's bottom line. Mark Walters is a third generation entrepreneur and author. He offers free training and investing videos designed to speed you towards financial independence at http://www.cashflowinstitute1.com/Articles.html ]]> Life Insurance: Do You Have Too Much? http://www.artwoo.com/article/life-insurance-do-you-have-too-much http://www.artwoo.com/article/life-insurance-do-you-have-too-much#comments Tue, 06 Feb 2007 14:27:02 +0000 life insurance coveragelife insurance moneygrowing familyreassessbreadwinnersbreadwinnerasking the right questions http://www.artwoo.com/article/life-insurance-do-you-have-too-much asking the right questions or do you feel that you are still confused? Let's take a look at the function of life insurance and see if yours is working for you.

The Four Reasons To Have Life Insurance

It provides security in case the main in the family dies.



It provides money for charitable causes

It could pay future estate taxes

It could also provide a pension

If your life insurance isn't capable of replacing your main ' income, then you need to have more. The situation is even more important if you have children at home. There are many people who fail to protect their loved ones in this way. Also being able to pass on to the next generation, can significantly lighten the financial load for your loved ones.

The second reason is giving to future generations. By specifying donations, you can provide relief to your favourite charitable organization.

Life Insurance Can Help With Taxes

If you've accumulated a lot of worldly goods, your life insurance can help to pay for the estate taxes. If you are unprepared, your heirs may face thousands of dollars in taxes after your death. Life insurance is a great way to pay those death taxes without eating into the estate itself.

Your Life Insurance After Your Working Years

Once you retire you may not need life insurance. If you have sufficient financial assets and your mortgage and children's education are paid, then you can reassess your life insurance at that time and perhaps drop it entirely. But it is always advisable to consult a broker before making any major changes in your portfolio of life insurance.

How To Calculate How Much Life Insurance You Need

If you have a , the has to generate enough income to support that family.

When you die the life insurance coverage becomes the life insurance capital and that capital has to be invested conservatively to generate the needed income.

Let's say you leave $1 million to a spouse and three children which, invested at 5%, will generate $50,000 before taxes. Is that sufficient? If so, that's what you need.

But What Happens To This Life Insurance Capital?

Here's one scenario. Your children grow up and leave. Your spouse their converts the $1,000,000 into an annuity or just continues the income as a pension. And that is one way you can be helped by life insurance. Ivon T. Hughes of The Hughes Trustco Group is the author of the Life Insurance Handbook: How To Get The Best and Cheapest Life Insurance available FREE to all new subscribers at: http://www.hughestrustco.com ]]> The 1031 Exchange - What A Deal http://www.artwoo.com/article/the-1031-exchange-what-a-deal http://www.artwoo.com/article/the-1031-exchange-what-a-deal#comments Fri, 29 Feb 2008 13:30:00 +0000 interest free loancapital gains taxescapital gains taxbeneficial agreementsection 1031individual investorfirst glance http://www.artwoo.com/article/the-1031-exchange-what-a-deal capital gains tax liability on a property's sale. This is achieved by relinquishing rights to a property one would like to sell to a qualified intermediary, who holds the funds gained from the sale of the relinquished property and uses the money to buy a replacement property that fulfills the regulations delineated in .

Although the current (and growing) popularity of the 1031 might lead you to believe that it only recently came on the scene, this is not actually true. As a matter of fact, the history of the 1031 stretches all the way back to 1921, though at its conception, it was quite a bit different than what we currently think of as an exchange. Section 1031 really came into its own in the seventies, which saw many important modifications in the way that exchanges were conducted. These modifications paved the way to a farther-reaching conception of the exchange process and created greater interest from investors.

The capital gains tax deferral Section 1031 provides to the investor might, at , appear to be a gift from the US government, but it is, in reality, closer to an interest-free loan. This is because there is an expectation that the taxpayer will repay the extra funds gained from the deferral by accepting capital gains liability upon the eventual sale of a replacement property. Additionally, this may be kept for an indefinite period of time; an investor can conduct any number of exchanges before finally electing to sell outright, at which point taxpayer must pay .

Section 1031 of US tax code represents a mutually between the investor and the United States government, profitable for the U.S. economy as a whole in addition to the . By looking upon the transfer of money in an exchange as representing an extension of an existing investment rather than as a discrete transaction liable to be taxed, investors gain the opportunity to move their funds to the most profitable possible investments, which, in turn, boosts the country's economy by bolstering the growth of new jobs.

Like anything else, the 1031 exchange has its skeptics. Some advocates of change in Section 1031 will pose the argument that the tax-free income gained by to the investor in the exchange process lends them an unfair advantage. Another common issue of concern is that the strictness of the time limits attached to steps in the exchange process could engender a frenetic rate of buying, with a resultant increase in asking prices for replacement properties. The aforementioned complaints, however, are only tenuously linked to reality, and the odds that the 1031 exchange procedure will go through any significant change in the coming years are quite low. In general, most will agree that Section 1031 is immensely beneficial to all parties involved, allowing investors increased profits on the sale of their property while also encouraging the creation of jobs and consequently promoting the greater good of the U.S.. Little doubt exists that the 1031 is destined to be a mainstay of the investment world for years to come. Here Are Two Important Resources For Learning More About A 1031 Tax Exchange: http://www.1031podcast.com and http://www.top1031exchange.com ]]> How To Eliminate Capital Gains Tax http://www.artwoo.com/article/how-to-eliminate-capital-gains-tax http://www.artwoo.com/article/how-to-eliminate-capital-gains-tax#comments Thu, 03 May 2007 06:30:00 +0000 charitable remainder trustcapital gainsfederal estate taxirsassetsunencumberedtra http://www.artwoo.com/article/how-to-eliminate-capital-gains-tax irst off I will give a short summary of the Elimination Trust (CGET). Then, I will provide some details about how it works and conclude with a case study as an example of how someone might use this.



Summary: The Capital Gains Elimination Trust is better known as a . How this works is one would deposit highly appreciated into the CGET. The trust sells the assets and pays no capital gains tax. You then get to withdraw an income each year from the trust. The withdrawal can be earnings and principal.

Donors can be the trustees of the trust and decide how to invest the trust's assets. In addition, they get an income tax deduction for their contribution to the trust that is based on the term of the trust, the size of the contribution, the distribution rate, and the assumed earnings on the trust.

At this point, the assets are now removed from their estate, they have paid no tax on the capital gains, and they have a stream of income. The IRS requires at least 10% of the present value to be projected to go to a charity of your choice.

If someone wanted the money to be left to family, they could use part of the money they would have paid taxes on and buy a life insurance policy outside of their estate. Then, their children will still receive as much or more inheritance money, free of income and estate taxes.



A CGET can be used with real estate, stocks, or any other asset with capital gains, and must be with debt.



Details: CGETs are subject to a maze of law and regulation. The failure of a CGET to meet all requirements can result in a trust being disqualified as a Charitable Remainder Trust, with negative income, gift, and consequences. The loss of charitable status would also defeat a donor's charitable intent.



Some of these requirements involve numerical tests, several of which have long been a part of the qualifying conditions for CRTs. The Taxpayer Relief Act of 1997 ( 97).

Pre-TRA 97 and#61607;5% probability test (this applies only to charitable remainder annuity trusts)

and#61607;5% minimum payment test TRA act of 1997 and#61607;50% payout limitation test and#61607;10% minimum charitable benefit Relief Provisions TRA 97 provided several relief provisions for trusts which would meet all CRT requirements, except the 10% minimum charitable benefit requirement. The law provides that a trust may be declared void ab initio (from the beginning). Under this option, no charitable tax deduction is permitted to the donor for the transfer and any income or capital gains created by property transferred to the CRT becomes income and capital gain to the donor.

The new law also allows a donor to reform a trust, by modifying either the annual payout or the term of a CRT (or both), to allow the trust to meet the 10% minimum charitable benefit. Strict time limits have been imposed for this reformation.



Seek Professional Guidance The laws and regulations surrounding Charitable Remainder Trusts can be complex and confusing. Individuals facing decisions concerning the tax and estate planning implications of a CGET are strongly advised to consult with an attorney.



Case Study: Beth and John own $1 million of stock that cost $100,000. They realize that their portfolio needs better diversification and would like more income, but they do not want to pay the capital gains tax. They could place the stock in a trust set up by their attorney. The trust would be a tax-free entity and could sell the stock without paying the tax.

Now there is $1 million cash that can be invested. This could go into a balanced portfolio, or an annuity. It doesn't matter. And Beth and John can make a one-time decision on how much lifetime income they'll receive from the trust.



The IRS will let Beth and John take an income tax deduction of $417,180 when they do this, as long as at least 10% of the money that originally goes into this trust is left to charity. And since they technically no longer own the $1 million, it is out of their estate, thereby saving their heirs $460,000.



Beth and John are thrilled. They'll end up with more income, less market risk, and a nice tax deduction. But the kids aren't so happy. They thought that they were going to get the $1 million. However, a wealth replacement trust would take care of that.

Beth and John take part of their new income and buy a $1 million, second-to-die life insurance policy on their lives. The policy is owned by an irrevocable life insurance trust so the proceeds are removed from their estate. When the survivor dies, the children will receive $1 million tax-free, and the charity will get whatever remains in the trust.



If you ever have questions about planning for your immediate or long-term retirement goals, please feel free to call or send in the enclosed coupon. Respectfully, Mark K. Lund, CRFA Wealth Manager Stonecreek Wealth Advisors, Inc. 10421 So. Jordan Gateway, Suite 600 So. Jordan, UT 84095 801-545-0696 www.stonecreekwealthadvisors.com Securities offered through Sammons Securities Company, LLC Member NASD and SIPC Mark K. Lund, CRFA, has spent almost a decade as a Wealth Manager, serving the retirement planning needs for clients in Salt Lake City, Utah. Mark is one of a very small number of retirement planners across the country trained in retirement tax strategies. Most financial professionals typically take only one aspect of your personal finances and attempt to make it grow in a very linear, single-dimensional fashion. That's why they don't bother to correlate other items or tax issues in your total financial picture! Mark looks at all four phases of wealth accumulation to plan the most effective way to manage your wealth. To learn more about Mark, please visit http://www.stonecreekwealthadvisors.com ]]> Convert A 1031 Tax-Free Exchange Property Into http://www.artwoo.com/article/convert-a-1031-tax-free-exchange-property-into http://www.artwoo.com/article/convert-a-1031-tax-free-exchange-property-into#comments Fri, 02 Jun 2006 12:32:15 +0000 federal income taxescapital gains taxesirsinvestment property owners1031 exchangesaleinvestment house http://www.artwoo.com/article/convert-a-1031-tax-free-exchange-property-into capital gains taxes when they sell. A is a provision in the code that permits to sell properties and buy new ones without having to pay taxes on the of the old properties, assuming stipulations concerning the use of the proceeds and time limits have been met.

Investors have 45 days following the sale of their old properties to find a new one and to comply with particular written notice provisions, as outlined by the IRS. The purchase of the new property must then close within 180 days. If those provisions are met, the investor will pay no on the property, assuming the new property is an investment like the one just sold. The replacement property must be of equal or greater value.

The property can be multiple houses, farms, or other real estate, but it can't be the investor's principle residence. The IRS prohibits using a 1031 exchange for the purchase of a new home. However, there is an exception to that rule. If the investor rents out a home for two years following the exchange, that house can then be converted to the investor's place of residence, since the home was initially used to fulfill the stipulations of a 1031 exchange, which specify that an must be replaced with another investment house.

If an investor chooses to take that route, after five years from the date of the new home's purchase, that home can then be sold and the taxes excluded, due to an IRS exclusion for the sale of a primary residence, which can be $500,000 for married couples and $250,000 for an individual.

This can be a great way to avoid taxes on a significant amount of profit from investment in houses, but you'll want to make certain you have followed the tax code meticulously. If you want to learn more about 1031 tax-free exchanges, you can visit http://www.irs.gov and consult with your own tax consultant, accountant, or attorney. It could save you thousands of dollars while you're moving up the ladder in your overall real estate investment strategy.

Copyright © 2006 Jeanette J. Fisher Jeanette Fisher, http://www.jeanettefisher.com , teaches beginning real estate investors how to set up a real estate investing plan. Free ebook, "The Truth about Making Money Flipping Houses" at http://doghousetodollhouse.com ]]> Term Life Insurance To 100 http://www.artwoo.com/article/term-life-insurance-to-100 http://www.artwoo.com/article/term-life-insurance-to-100#comments Sat, 23 Jun 2007 22:35:00 +0000 term life insurancelife insurance coveragesubstantial fortunefamily fortunecapital gains taxesheirslevel term insurance http://www.artwoo.com/article/term-life-insurance-to-100 Term Life Insurance Coverage for Life

Imagine that you have worked your whole life, past the age of retirement, building a healthy and for yourself and your family. Now that you are in your Golden years, you want to make sure that the is distributed according to your wishes. While most premiums for insurance policies are based on age, carriers do have what is called term life insurance to 100. You can purchase this policy between the ages of 71-80 (check with a qualified financial advisor as each carrier may have different requirements). Just like , the premiums for term life insurance to 100 remain unchanged and stop all together when you reach the age of 100. Even if you live to 120 years old, you will continue to be covered. This type of policy basically covers you for life.

Why Term Life Insurance to 100 is Ideal

Term life insurance to 100 is an ideal policy for estate planning. Usually, families put together estates if there is a substantial fortune to distribute. Even if there is a modest fortune, the goal is to make sure your get their inheritance intact and also for your heirs to avoid paying taxes on what you leave them. With term life insurance to 100, benefits are paid tax-free upon your death. You will not only ensure that your funeral expenses are covered but also those are also taken care of. For example, should you leave your children property such as houses, the capital gains on those inherited items would be paid. Ensuring that your heirs receive tokens of your legacy intact makes your gifts truly gifts. Who wants to be left a cottage in the country if you have to suddenly come up with a huge amount of taxes before you can enjoy the bequest? Surely, as the patriarch or matriarch of a large family, you could ensure that your children and grandchildren will continue to enjoy your legacy to its fullest.

If you outlive all of your heirs, term life insurance to 100 is also perfect for leaving a bequest to your favorite charity. You may purchase face value amounts of $10,000.00 to $1,500.000.00 (there are different versions of term life insurance to 100 that offer higher face values). If you choose to donate your death benefit to a charity, make sure to visit the charity to fill out all the appropriate forms. There are very specific questions that require answers before a charity can accept a gift in the form of life insurance.

Cash Back Options on Surrendered Policies

Some carriers have different versions of term life insurance to 100 policies as well as required number of years to pay before you can surrender a policy. For example, if you choose a carrier that has term life insurance to 100, the policy may require you wait until after 10 years before you can cash out the policy. If in the 11th policy year, for instance, you decide you no longer require insurance protection, you can surrender your policy in exchange for a one-time cash value as stated in your policy contract. Other versions of the policy might allow you to surrender the policy at any time with no time requirement. You would be allowed to surrender for the cash value stated on the policy.

As always, it is best to seek the advice of a reputable financial advisor to help you choose the best carrier as well as which type of term life insurance to 100 policy suits your needs. Sharon Taylor is a professional writer for http://www.equote.com eQUOTE Life Insurance. eQUOTE is an excellent online resource providing online quotes for http://www.equote.com/life-insurance/term-life-insurance.html term life insurance to families in 42 states. ]]> How To Make Money With An Investment Property Company http://www.artwoo.com/article/how-to-make-money-with-an-investment-property-company http://www.artwoo.com/article/how-to-make-money-with-an-investment-property-company#comments Sun, 08 Oct 2006 16:27:05 +0000 stock sharesstock shareproperty investmentsmoneyinvestment propertyinvestorstaxation http://www.artwoo.com/article/how-to-make-money-with-an-investment-property-company
The following is an explanation of companies. Well, as the name says, this is a type of specialized company, that takes care of . And when I say property investments, I mean, they invest in properties, but they invest your . This type of company gleans you profit via investing in properties.

2. Benefit of investment property company

It is best for people to use an investment property company when during property investments. The first of the many advantages would be the fact that you deal better with the tax bills. Why is that? Well, you save some money because a company pays less money as taxes than a regular person. We are talking of course about percentages.

3. Money and taxes

are usually more likely to find ways of reducing the bills. One of the easiest ways for an investment property company to save some taxation money is to sponsor different events or charity actions. What is the advantage in that you might say? Well, when a company is sponsoring, they are deducted some percentages from the taxation money. If the company has a high capital, they will pay less money as taxes.

Many investments carry significant risk that the investor will lose some or all of the invested capital. For example, investments in company s put capital at risk.

A stock share is partial ownership of a company, and the value of the stock depends on many factors, including the likelihood that the company will pay a dividend (a distribution of profit to shareholders). When stock shares are first offered for sale, the company receives the capital from the stock purchaser and uses the capital to operate its business. Once stock shares are sold to investors, the investors can sell the shares to other investors. Publicly-traded companies' stock shares are bought and sold (traded) on the stock markets.

The value of a stock share depends on what someone is willing to pay for it at a certain point in time. Unlike capital invested in a savings account, the capital value (price) of a stock share constantly changes. If the price is relatively stable, the stock is said to have "low volatility." If the price often changes a great deal, the stock has "high volatility." All stock shares have some volatility, and the change in price directly effects ROI for stock investments.

4. Saving money through things like strategies and inside secrets

There are many options. There are a lot of strategies and inside secrets that an investment property company uses to save money. And this is not the only advantage that such a company offers. When you give them a certain amount of money to invest in properties, you will be sure that, in case they fail, you will still get the money back. You will not lose money using this method. For more great money related articles and resources check out http://ALL-BROKERS.INFO ]]> Incorporating: LLC, S Corp, or C Corp http://www.artwoo.com/article/incorporating-llc-s-corp-or-c-corp http://www.artwoo.com/article/incorporating-llc-s-corp-or-c-corp#comments Wed, 02 Jul 2008 12:36:22 +0000 limited liability companyscale corporationssmall business ownerc corporationssuccessful small businessentity tablec corp http://www.artwoo.com/article/incorporating-llc-s-corp-or-c-corp successful small business you may have thought about incorporating. You have probably heard of the many benefits that incorporating offers a , but you always heard that setting up a corporation was both expensive and timely. The way it used to be was you would have to go to a qualified attorney specializing in incorporating small businesses. Thanks to the many online incorporating resources available today, incorporating can now be set out at a reasonable cost, and with relative ease. The key to setting up a corporate entity is guidance, which allows you to submit the proper forms to the proper agencies. There is no need to pay an expensive attorney to fill out those forms for you; you can do it yourself with a little bit of research.

The most difficult part of incorporating your business is not the incorporating process itself, but rather choosing an appropriate entity that is suitable for your needs. Some of the common choices include a (LLC), an S corporation, or a oration. This is not a one size fits all choice, what might be appropriate for one small business owner, might be the opposite of what another small business owner needs. You will have to do a little bit of research, as each corporate structure has its positives and negatives. If you take a look at a corporate , you will be able to weigh your needs with the corporate structure that is right for you.

The first corporate structure will take a look at is the C Corporation. A C Corp is what you think about when you think big business. are probably most suitable for large-. The reason being is that they are the most complex to operate. You must hold annual stockholder and Board of Directors meetings, and keep track of corporate minutes. In addition to the more complex record-keeping C corps are the most expensive corporate structure to operate. You will have to file to different tax returns, one for yourself and one for your corporation. Depending on your state you may have to pay additional taxes, like in the case of California. It's also important to realize that double taxation is a possibility, without proper planning, this adds to your costs. Now, these negatives don't come without their positives. C corporations offer the most benefits of all the corporate structures. You get full deductions for health and disability insurance. Full deductions for medical expenses, above and beyond any existing coverage. Stock options are treated favorably, due to capital gains. Moreover, life insurance, pension plans, and dinner allowance are just some of the many benefits available.

The S Corporation offers many of the fringe benefits associated with C corporations, but without a lot of the headaches. You don't have to deal a double taxation, and income and/or losses flow directly through to the owners. You are, however, limited to fewer than 75 stockholders, the stocks must be United States owned, must be a domestic corporation, and only offer one class of stock. Much like to C Corporation you must keep corporate minutes, and you must hold stockholder and Board of Directors meetings annually. The most attractive benefit the S Corp offers is the self-employment tax benefit. With S corporations you can save up to 50% on your Medicare and Social Security taxes. If you make more than the $102,000 (2008 limit) your Social Security savings will be nonexistent.

The Limited Liability Company, or LLC, is popular for many small businesses, as it is the easiest to administrate. You do not have to hold board of director meetings, stockholder meetings, or keep track of corporate minutes. LLC's offer superior liability protection. There are also no restrictions as far as member numbers, foreign investors, like the case is with an S corp. The Limited Liability Company is the preferred choice when it comes to businesses that deal in real estate. Real estate gains are taxed at the capital gains rate within an LLC, whereas C corporations are taxed at the corporate tax rate. Now, the downside to an LLC is that you don't get the self-employment tax benefits. So, if you make considerably less than the $102,000 limit, you may be better off with an S corp. If you are considering a Limited Liability Company it's important to check with your specific state for LLC specific taxes.

The above corporate structures come with their benefits and drawbacks. The important thing when selecting an appropriate corporate entity is to find out what's best for your individual business. We all have different businesses, with different business needs, what might be right for one business owner might be the wrong choice for another. So, make sure to do your homework, when choosing between a LLC, C corp, or S Corp, you and your business will be rewarded.If you'd like more information on incorporating your small business, you can visit the site for specific details. For more on choosing between an LLC, C Corp, or S Corp structure you can get more details on that as well.]]> A Very Simple Buy And Hold Method http://www.artwoo.com/article/a-very-simple-buy-and-hold-method http://www.artwoo.com/article/a-very-simple-buy-and-hold-method#comments Thu, 10 May 2007 17:25:00 +0000 oil stockspe ratiosearnings yieldmsnpe ratioshort term tradingvector vest http://www.artwoo.com/article/a-very-simple-buy-and-hold-method
Until they get more financial data if ever. Then I'd get you in TIE at 11 and HANS at 14 like did. OK anyway here it is...

PE is between 8 and 12 offset 360 days (min. holding period)

Rules

1. You must hold your investments for one year; you won't have much to pay, in regards to commissions or taxes. In fact, the government will only get 15 percent of the earning made.

There are a few red on here but common sense would dictate you would never have picked those for they were in the housing industry, which everyone knows was going downhill. Stocks which had the highest gains, we're talking gains of 80 percent and over, were steel and . You may be asking yourself, "How could I have gotten into these stocks? The answer is very easy. When you get the results mentioned above, you would just have to go to or Yahoo to locate the sectors which currently have the lowest s with the highest , cumulatively, over the entire sector.

Simple, after you get the above results go to MSN or Yahoo. . While at these sites you would need to locate and see which sectors have the lowest PE ratios with highest earnings yield, cumulatively, as a whole sector. Steel had an industry average 7 PE ratio. This would be a No-brainer buy. While I respect there is a reason why the wealthiest men in the world are investors. The greatest trader of all time Jesse Livermore lost it all and shot himself. As a trader, you'll never catch all of the massive upward moves.

One investor had enough sense to stay away from tech stocks all together and avoid any financial losses. That investor's name is Warren Buffet. Back in the hay day of the tech stock boom, many people thought Warren Buffet was foolish for not getting involved. That probably couldn't be said about him today. Bill Gates is currently the wealthiest man. However, Warren Buffet is only 6 billion dollars behind Gates. If Warren Buffet lives for another 5 years, it is possible he could surpass Bill Gates as the wealthiest man alive. Mark Crisp - Compounds over 50% p.a. trading momentum stocks once a week. http://www.stressfreetrading.com ]]> Why Would You Consider Real Estate Investing? http://www.artwoo.com/article/why-would-you-consider-real-estate-investing http://www.artwoo.com/article/why-would-you-consider-real-estate-investing#comments Sun, 28 Oct 2007 22:29:59 +0000 real estate investmentreal estate investinginvesting in real estateinvesting in the stock marketon the contrarycapital gains taxesirs http://www.artwoo.com/article/why-would-you-consider-real-estate-investing real estate investing, you can look forward to some stupendous gains that are associated with this investment alternative.

can be very lucrative. If you leverage your down payment to earn a return on the entire value of the property, you could earn a lot more than . For example, assume that you invest $10,000 in a down payment on a house, and you borrow the remaining 90% from the bank. If you earn a 10% return, you will finish with $110,000. On the other hand, if you were to invest that $10,000 in the stock market and also earn a 10% return, you would finish with only $11,000.

Your $10,000 has been doubled in the but returned only $1,000 from stock market. This is because of the fact that you have used your lender's money through real estate investment. This is the best part of real estate investing as it gives you power of leverage in the investment. There are more strong and valid reasons for you to begin investing in real estate.

Another reason for beginning real estate investing is the tax benefits. The actually requires you to depreciate your property and this "paper loss" on the property brings the actual tax liability down every year but the actual value of the property and the land is appreciating in the market. So you actually end up paying taxes on a reported profit figure that is significantly lower than the actual earnings.

Perhaps an even better tax benefit is the 1031 exchange as defined by section 1031 of the Internal Revenue Code. Essentially this allows investors to delay paying any when a property is sold as long as the proceeds are reinvested in an appropriate property. The government is basically encouraging investors to stay in the market with this fantastic incentive.

One of the great benefits of investing in real estate is derived from the flexibility of sale contracts of property. Unlike stock investing, you can be very creative with your offers while buying and selling real estate and you can exchange property for a lot of things other than just cash. This leads to some spectacular win-win arrangements.

Summary:

Real estate is one of the most lucrative investments these days. So how does real estate investing work? For those considering beginning real estate investing, there are many benefits. Leveraging your finance means you can earn up to tens times the profit of stock market investment because your lender's money has been working for you as well. Tax benefits are another reason to become a real estate investor. Required depreciation allowed by the IRS bring tax liability down every year, while the value of the property climbs. Finally, there is great flexibility in real estate sale contracts. http://Investing-Secrets.com provides impartial advice about real estate investment including free articles, reports and a quiz to help you design your REI business right. Visit http://www.investing-secrets.com for more info. ]]> Offshore Investment Advice To Help Your Portfolio Gorw http://www.artwoo.com/article/offshore-investment-advice-to-help-your-portfolio-gorw http://www.artwoo.com/article/offshore-investment-advice-to-help-your-portfolio-gorw#comments Thu, 21 Sep 2006 02:27:06 +0000 offshore investmentcapital gains taxinvestment adviceideaforeign marketsbrokerageinvesting http://www.artwoo.com/article/offshore-investment-advice-to-help-your-portfolio-gorw offshore investment advice.

Anyone who's been for a while has probably heard of individuals moving their funds to to avoid . I always figured it was a fantastic , how ever I didn't know the first thing about it. My first step was to talk to my local broker about the idea, of course since he is paid commissions on my account he just attempted to sell me on the idea of keeping my portfolio with him and his . I was going to have to look else where for the information I needed, so I fired up my favorite search engine and started doing some searches for offshore . What I got back from my queries wasn't easy to understand. While several sites appeared to offer legitimate business advice, others were clearly scams. While I didn't know the first thing about investing offshore I also wasn't about to just send large amounts of money to someone I didn't know or ever talk to. I really needed to talk person to person with someone for some solid offshore investment advice. I really thought the best place to get it would be to find a brokerage that has been handling transactions for Americans to foreign markets over the years.

After I had put in a few hours reviewing multiple websites, I found a site that looked promising. It was a firm specializing in offshore investment advice. So I decided to call in person, I had been avoiding any site that didn't display a phone number for fear it was a scam. I spoke with a broker at that firm, he was more then happy to hear out my current situation as well as my expectations for the future. After hearing my store he gave me some offshore investment advice that fit what I was looking for, needless to say once our conversation was over I had the confidence to go ahead with the necessary investments to make my dreams a reality offshore.

Now keep in mind investing in offshore markets isn't the easiest and it isn't everyones cup of tea. If you're in a similar position and wanting to find out more information on the subject I suggest that you call a broker that is versed in and can provide offshore investment advice for your unique situation. The better advice you receive at the get go the better chance you have of seeing profits on the back end. If you're looking for more investment tips and articles take a moment to visit our website at http://yourinvestmentoptions.com/ ]]> Residential Investment Property: Some Reasons For Its Rising Popularity http://www.artwoo.com/article/residential-investment-property-some-reasons-for-its-rising-popularity http://www.artwoo.com/article/residential-investment-property-some-reasons-for-its-rising-popularity#comments Tue, 03 Oct 2006 12:27:09 +0000 residential investment propertycapital gainmortgagecapital gainsinvestinvestorspurchase price http://www.artwoo.com/article/residential-investment-property-some-reasons-for-its-rising-popularity investment+property" rel="tag">Residential investment property has gained immense popularity over the past decade. Owing to the increase in demand for rental accommodation, and the resulting rise in rental income, more are likely to dive in the residential property business. However, not all residential properties are profitable investments, and some investors might lose money if they don't choose with discretion.

When you set out to purchase a residential investment property, your key intent should be to leverage, in order to cut down on personal costs, and to acquire an income generating asset. Typically, you should invest in a property whose rental income will cover its entire and operating expenses. Such a property is said to be "self-funding". Once the mortgage is repaid you have two options -- you may continue to reap the benefits of a steady rental income, or you may sell the property at market value (provided the property has experienced appreciation) and invest elsewhere.

In general, there are two primary sources of income from any residential investment property: yield and .

Yield is the expected annual rental return, which is expressed as a percentage of the . For instance, if the purchase price of a property is $100,000 and its expected annual rental return is $8,000, yield is said to be 8%. The yield, in combination with the terms of the mortgage, determines the personal expense on the part of the investor, in order to acquire the property.

Capital gain is the appreciation in value of a property. Or in other words, the profit accrued from selling an asset. It is expressed as growth rate in percent on an annual basis. are generally estimated from the movements in average property prices.

It is wise to analyze both the capital gain and yield potential when selecting a residential investment property. The typical problem faced by you as an investor would be that high yielding properties normally offer low capital gains, and vice versa. You should strike a balance between yield and capital gain, such that it best suits your investment goals. What constitutes the right balance depends on your expected capital gain and yield.

It is recommended that your expected returns from a residential investment property be based on a comprehensive analysis of current trends and market conditions. It isn't advisable to rely on intuitions when scads of money are involved.

On the whole, a residential investment property is a viable investment option if the returns meet your expectations, and exceed those attainable from other possible sources of investment.

Copyright © 2006 Joel Teo. All rights reserved. Joel Teo writes on various financial topics relating to Ahwatukee Real Estate Investment. Signup for his free online Real Estate Investing newsletter today and gain access to the "Six Day Real Estate Investment Profits Course" now at http://www.realestateinvestment101.info/Ahwatukee.html ]]> Secrets That Ensure Profits http://www.artwoo.com/article/secrets-that-ensure-profits http://www.artwoo.com/article/secrets-that-ensure-profits#comments Wed, 12 Apr 2006 21:00:09 +0000 money managementbank profitsfutures tradingfutures marketslostpertinentarticle addresses http://www.artwoo.com/article/secrets-that-ensure-profits pertinent information that may cause you to reconsider what you thought you understood. The most important thing is to study with an open mind and be willing to revise your understanding if necessary.

This interesting some of the key issues regarding . A careful reading of this material could make a big difference in how you think about and trading them.

How a strategic plan works is discipline, not magic. In the market place it's possible to be right, and to still lose money. In fact, it's pretty common. Traders who win on a high percentage of their trades often end up with their capital eroded away, and left with nothing to show for their work. They lose their gains because they don't know how to manage their money.

Being a good manager of your own money is one of the most difficult of skills to learn. But if you do not use good money management to , learn to take small losses when you are wrong and control your use of margin, you will lose it all. No matter how good of a trader you think you are, your first priority needs to be protecting your capital if you want to be successful.

As a trader, your capital is the most valuable asset you have. It is your only asset in the eyes of the market. Without it, you can't work at all. For this reason, bringing in no profits on a trade is better than losing any part of your margined account. If your account is intact, you are alive and live to trade another day. If your capital has suffered a loss your efforts for making gains will wasted playing catch-up. The more you've , the longer it will take to get back to where you started from, because now you have a smaller pile of capital to work from. A smaller capital base means smaller percentage returns on profits. Making 10% on a $5,000 account earns you $500, but if you've lost half of that account and have only $2,500 left, making 10% on your money will earn you only $250. You'd have to do that twice to make the same $500.

Sound money management has two main goals: to avoid losing money, and to avoid missing profit opportunities. The first goal is straightforward. You want to preserve your money and whatever profits you've accumulated. But you don't just want to keep your capital and let it go stagnant. You want to trade with it, to continue to grow it and make your returns larger and larger. Not keeping your money tied up in bad or problem trades for long periods of time will allow you to not miss new profit opportunities when they come along. Failing to avoid either of these will cost you

It's really a good idea to probe a little deeper into the subject of Futures. What you learn may give you the confidence you need to venture into new areas. Working to avoid losing those profit making opportunities isn't quite as obvious a goal. With the second goal in mind let's compare the outcomes of two money-management decisions. Trader X buys a futures position, expecting it to go up, and finds that it doesn't. However, he's certain it will go up eventually, and he's incurred a small loss, so he decides to wait it out. He ends up holding the position for two months before finally selling it. Trader Y buys the same futures at the same time as Trader X, but once he sees that it isn't going up, he sells it at a small loss. He buys another futures position and makes a 10% profit on it. His next trade loses 2%, but after that he makes 7 %, and then loses 1%, and then gains 25% on a series of trades. Because the account is growing and he makes gains on an ever larger base of capital each time, at the end of two months, his account has grown quite handsomely, even though Trader Y was WRONG 50% of the time.

Which money management decision turned out to be the best? While Trader Y made a nice profit, Trader X not only lost time but also never made his money back. Even if he had made his money back on that position, it's hard to see how this was a good use of his operating funds over the course of two months.

Clearly the goal of not tying up your capital in bad trades has an important impact on your profits. Using sound money management will keep your trading funds and your profits safe. Though it is a difficult skill to learn, once you know how to practice good money management techniques, you can almost guarantee that you will be a successful trader.

If you've picked up some pointers about Futures that you can put into action, then by all means, do so. You won't really be able to gain any benefits from your new knowledge if you don't use it.

More information can be found at http://www.futurestradingsite.com">http://www.futurestradingsite.com About The Author: Don Jesel is an established surviving futures day trader of 20 plus years and web master for http://www.futurestradingsite.com">http://www.futurestradingsite.com ]]>