With the booming property prices of recent years, more and more people are finding themselves facing a large tax bill when they come to sell their investment properties. However, did you realize that there is a perfectly legal way of deferring payment of such taxes by utilizing the advantageous 1031 tax code that was introduced by the IRS in the early 1990s? A 1031 exchange is a way of deferring payment of capital gains tax on certain types of real estate. Normally when an investment or business property is sold, capital gains tax has to be paid. However, with 1031 […]

‘In this world’, said the great Benjamin Franklin, ‘nothing is certain but death and taxes’. While modern medicine continues to work on a cure for mortality, 1031 exchanges offer a valuable mechanism against the foibles of the taxman. Allowing the exchange of one property for another, this property market trend can help you hold on to money that might otherwise end up with the IRS. How do you know whether you are eligible to take advantage of this great property trend? The first stipulation is that the two properties involved in the swap be in use for ‘trade or productive […]

Property taxes are decided collectively by school boards, town boards, legislators, and councils. The tax rate is set by collating the amount of funds an area needs. This is then divided that by the “total taxable” assessed value of the area. The tax an individual pays is computed by multiplying the tax rate by the assessed value of your property and then deducting any applicable exceptions. Property taxes are at an all time high. Studies indicate that they have increased more than 35% in five years. Property is assessed by determining property costs in any given area. Property is valued […]

oes Tax Season get you down? Here are 4 simple steps that any small business owner can take to lower your tax bill this year. STEP #1: Understand How Serious Your Tax Problem Is Are you aware of just how much in taxes you are paying? Here’s how much the average family spends on various consumer categories — as a percentage of income. You must realize that it’s not how much you spend on taxes that is important, it’s how much you spend on taxes as compared to all other major categories of spending. Consumer Spending: How Do You Spend […]

You don’t want to mess with the Internal Revenue Service. One small mix-up when handling your finances can cost you big. For example, in recent years the IRS has increased its filing of levies, liens and wage garnishments. In fact, in 2004 alone, approximately 2.5 million levies were filed. The experts at JK Harris & Co., one of the nation’s largest tax resolution firms, offer this list of common ways people get into trouble with the IRS. You can only claim exemptions for yourself, a spouse and for all “dependents.” Dependents have to meet specific criteria, however, so make sure […]

Obtaining a solid monetary footing is a lot like building an effective company. It can be a decades-long business requiring preparation, ability, persistence, as well as a little bit of luck. The proverbial millionaire next door is an overnight success two decades planned. Thinking about the long roadway in advance, you have every factor to get going today. Have a PlanFinancial safety and security won’t occur by accident, and also it will not take place overnight. Just as organizations have quarterly goals, annual revenue targets, and five-year service plans, you need to approach your life with a long-term technique comprised […]