Reduce your Taxes by Investing in Real Estate

Taxes are your biggest expense in your lifetime, so choose your source of income wisely! Real estate has some of the BEST TAX BREAKS of any investment in America!
The more you earn through your job, the more you get taxed, and the system is setup that way to punish hard workers and reward investors. Have you looked at the bottom stub of your paycheck lately and seen how much the government steals from you? Wage income not only requires work, it gets taxed at a very high rate, plus the government takes FICA, which is put into a system that may be bankrupt when you retire.
Body Text: Real estate has so many tax advantages over wage income:
Capital Gains Rates
The maximum federal tax rate on capital gains is 15%, whereas wage income is taxed at 35%. There's state taxes, too, and some states offer further discounts on capital gains income. Remember, capital gains requires that you hold a property for 12 months or more before selling and that it was held for productive use (i.e., as a rental, no a long-term fix and flip).
Exemption for Principal Residence
If you sell your residence, the first $250,000 is exempt from gain or $500,000 if you are married. Remember, this requires that the residence was used as such for two of the last five years.
1031 Exchanges
Under IRC Sec 1031, you can roll your profits from a rental property into more real estate and defer paying taxes altogether. Your tax basis rolls into the next property. The rules are rather stringent, in that the exchange must be completed with 180 days and the exchange property must be indentified with 45 days of the sale of the relinquished property (more info at www.1031x.com).
Interest Deduction
You get to deduct interest you pay on debt you have used to acquire your real estate.
Depreciation
For rental properties, you get a tax deduction for the “wear and tear” on the structure, even if the property increases in value! Thus, you can actually break even or make money, but on paper show a loss to offset other income.
No FICA Tax
Your income from real estate is general NOT subject to FICA tax withholding. Regular self employment income is subject to 15.3% tax on the first $97,000, and thereafter your earned income is subject to medicare withholding (which you may never get back in your lifetime the way things are going!). Article Source: http://www.articlesbase.com

Hiring a Business Tax Attorney

The tax paid by individuals who run businesses and business organizations is known as business tax. There has to be kept in mind that through the intricacies of tax planning and act as advisors and negotiators in case the government contests taxation claims, a business tax attorney is practically guiding the business. Tax liabilities can be minimized by the guidance of a business tax attorney. Also, pay attention to the fact that a business tax attorney can practically maximize profits through the business. If you choose to hire a business tax attorney you may be able to avoid possible tax avoidance investigation by the government. Also, hiring a business tax attorney is recommended because in this way the guidance provided can make expert counsel available in case of litigation.
An important aspect which has to be taken into consideration is being represented by the fact that due to a bewildering range of tax laws relating to sales tax, employment tax, property tax, international business tax, and local and federal tax laws, US tax laws prove to be extremely complicated and confusing for the ones who do not have knowledge and experience. Therefore, there as to be kept in mind that hiring a business tax attorney who will advise on the best way to structure the business in order to take advantage of exemptions and rebates under tax laws without getting into legal hassles with tax departments, is in the interests of those starting a business. Also, pay attention to the fact that, in order to restructure their businesses in a way that maximizes business and minimizes tax, even established businesses need to consult a business tax attorney. Through the nitty-gritty of tax planning for business contracts, acquisitions, mergers, ownership, joint ventures, overseas investment
, divestiture, and lease agreements, a business tax attorney provides with the best guidance for you and your organization.
For more resources regarding appeal attorney tax or even about Arizona tax attorney and especially about tax attorney Philadelphia please review these pages. Article Source: http://www.articlesbase.com

UK Property Investment – Huge Capital Growth on Realestate

UK property investment can provide an enormous sense of gratification that you simply cannot find with other forms of investment. UK Property investment is now enhancing a far more mainstream investment vehicle, available to investors with the knowledge and foresight to spot effective investments before the competition can. Yet while they linger comparatively open and accessible, the road to prosperous property investment and land investment is littered with those who have made a multitude of investment and other mistakes and paid the price.So, you can realize your dreams of UK property investment find the right investment opportunities and avoid the pitfalls along the way. By protecting up-to-date with the current news and articles featured on this website, you will gain the proficiencies necessary to make a profit from your investment. Buying cheap UK property from tormented sellers in the UK for investment objective is quickly becoming popular for many property investors. Experts in the property field unremittingly claim that an investor's money is made when he buys cheap UK investment property. The reason is that when you buy such a property, you can turn it into an lucrative asset and therefore enjoy the profits it offers while benefiting from genuine built in equity from first day.The popularity investment in UK property to rent it out or turn it into a buy-to-let vehicle hinges on the issue that investors can earn a advanced returns with careful property selection and controlled borrowing. Estimations have showed that investing a property in UK has made 66,000 investors into millionaires, according to Midas Estates.For a time, few persons demand that now may not be such a good time to plan a UK property investment, many experienced investors know that now is an excellent point in the property cycle to pick up bargains. With the stabilizing of property prices in the UK, many people deem that the price adjustments present a good opportunity for property investors who are in for the long haul. A long-term approach to property investment is touted as an effective means of ensuring a more financially secure future because of the capital growth the property accrues over a long period of time. As property investors put it, the longer you're in it, the higher your return.Finding cheap propertiesEvery year thousands of UK properties are sold at under market value. Many of UK property investment are released through property auctions regarded by many as one of the best ways to locate cheap properties. Now is particularly a good time to scour auctions with the market experiencing an evening out of prices which means you have a lot less competition. Often properties in auctions are sold cheaply because they require modernizations, renovation or development.To generate wealth through UK property investment, you must search property in areas where capital growth and a good cash flow are possible such as those areas where demand outstrips supply. Article Source: http://www.articlesbase.com