Real Estate Purchase 101 - Tax Benefits

"Almost everyone knows that it’s better to own your house than to rent it. After all, when you pay rent, it goes to a landlord and when you pay down on a home, it goes to a future investment in a valuable item. But did you know that owning real estate can have other advantages, too? Specifically, did you know that there are a number of tax benefits to owning real estate that those people who just rent will never be able to take advantage of? If you’ve been thinking about purchasing a home but haven’t yet made the plunge, here are some of the tax benefits that you might want to think about:

• Closing costs. In the year that you first purchase your home, you can deduct some of the closing costs on your taxes. This is true even if the seller was the one that paid your closing costs, meaning that you’re basically getting free money. This is only good in that first year, though, so you need to know about it in advance.

• Home mortgage interest deductions. Every year, you pay mortgage on your home. And every year, you can deduct the interest of that mortgage from your taxes. Interest is deductible on any amount up to one million dollars of home mortgage – so unless you’re buying a mansion, you can probably deduct all of your home mortgage interest.

• Home equity interest deductions. When you take out a home equity loan, it will also have interest and this interest is also deductible on your taxes. Interest on up to $100,000 of home loan debt can be deducted.

• Real estate tax deductions. You have to pay real estate taxes but you can get some of that money back as a deduction at tax time.

• Remodeling improvement deductions. If you make major changes to your home, you may increase its value which ups the tax basis and saves you money later on.

• Sale of your home. In the future, when you go to sell your home, you can actually get a tax break on the money that is earned from the sale. There are some rules to follow here (and it’s always best to work with a realtor and a tax attorney to make sure you’ve followed them correctly) but basically, if you lived in the home for at least two years, you can get at least $250,000 from the sale of the home tax-free.

Buying a home has a number of different benefits that you can probably think of on your own. But you might need help figuring out all of these tax benefits. Working with a professional who is knowledgeable about the ins-and-outs of home ownership tax deductions can help you to save money each and every year that you own your home. This means that when income tax time comes around and all of the renters that you know are groaning that they have to send money to the IRS, you’ll be smiling and tucking your savings away."

Kinan Beck is the Broker and co-owner of One Source Realty in Austin Texas. Visit Kinan’s Austin Real Estate Guide, visit his Austin Realtor website, & his Tulsa Realtor website. He has seen considerable success in real estate, and looks forward to many more years in the business. Article Source: http://EzineArticles.com/?expert=Kinan_I_Beck

7 Reasons Why Everyone Needs a Network

"Call it a clan, call it a network, call it a tribe, call it a family. Whatever you call it, whoever you are, you need one." - Jane Howard

Marta worked at a bank for 20 years. During her career she rarely socialized with co-workers nor did she join any professional groups. She devoted her time to her husband and family, ensuring that their needs were met. At age 49 her husband unexpectedly asked for a divorce. Now at age 50 she finds herself alone a lot. She is single in a small town with only one friend. During her marriage, she relied on her family as her network. Now she seldom sees her sisters and her three grown children live on their own.

"No one should ever find themselves in this situation," says Kathleen Ronald, networking expert from Speaktacular in Los Angeles, California. "It is my belief that, yes, you do have a family and work, but foster friendships along the way too."

Regardless of circumstances, we all need a network. Networks bring us together as human beings to support each other with information and services.

Here are 7 reasons why everyone needs a network.

1. Networks provide valuable resources.

Surround yourself with experts in their fields. Get to know people from all walks of life so that when you need information you can turn to your network. Wouldn't it be great to know an auto mechanic, a computer guru and a talented lawyer? They may or may not provide services directly to you but they can steer you toward those who can best fulfill your situational needs. A great real estate lawyer, for example, can refer you to a top tax attorney.

2. Networks save you time.

Why search the net for a Real Estate Agent or house cleaner when you can call a friend? Connecting with your network allows you to skip the research. For example, you notice a sunspot on your skin and have never been to a dermatologist. Wouldn't you rather work with a doctor recommended by a trusted friend or colleague? You'll walk into the office knowing that your friend has already had a good experience with the doctor.

3. Networks reinforce the need for other people.

No matter how much technology advances, we still need people. They need us too. One of the joys of networking is passing on resources, people and information to others. Your co-worker, for example, tells you he's having trouble getting up the courage to ask for a raise. You mention a seminar you took on negotiation. He attends and thanks you for making such a big difference in his career.

4. Networks round out your life.

Life can include many networks. Take a look at your current networks such as: spiritual, social and professional. Which networks are weak or non-existent? Refuel current networks or fire up new ones to round out your life. For example, when Teresa, a Silicon Valley professional had her first child, she didn't know any mothers with young children. She joined a new moms group where she gave birth at Sutter Hospital. From there, she began to build a network of working mothers and set up a childcare exchange.

5. Networks cushion a crisis.

Life includes crises. Divorce, death and business failures - to name a few. When faced with these crises, you don't have to "go it alone." Lean on your networks to get referrals for professional, emotional and financial services you need. For example, if you abruptly find yourself without a job, people in your network often can and want to help. Since more than 70% of jobs come from word-of-mouth, your network is a great place to get quick job leads.

6. Networks make it easier to meet new people.

New to your profession? Join a professional organization to meet others in your industry. For example, when Karen first took on a project management role, she joined the Project Management Institute. At breakfast meetings and conferences, she received great tips from seasoned professionals and met new clients. Want to find a significant other? Network more, because most people find significant others through their networks.

7. Networks offer abundance.

Strong networks give you what you need when you need it. They also allow you to pass on to others what they need when they need it. Networks move you out of scarcity and into abundance - an abundance of resources, information and people. After years of building her networks, Kathleen Ronald says, "Every city I go to, I have friends there. It's the best feeling!" So when you head off to a place like New York City for the first time and don't know anyone there, ask people within your network to point you where to go and who to see.

The good news is that networks abound today. Take the opportunity to attend business and community events, volunteer, and stay in touch with friends and family. You can also tap into one of the many online social networks like http://www.MySpace.com or http://www.Classmates.com. You never know what resources you can pass on to other people or what they can offer to you. Stay connected. Everyone needs a network.

Sue Brenner, Performance Coach and Author, wants you to get the most out of life and work. That’s why she wrote "The Naked Desk: Everything you need to strip away clutter, save time and get things done" - http://x.actionsymphony.com While you’re there, get her free eZine, "Ignite Your Life." Article Source: http://EzineArticles.com/?expert=Sue_Brenner

Tips For Quicken And Microsoft Money Users

Although your chances of being audited are probably remote, some of the people who read this will be audited. Here are some things you should do - and shouldn't do - if you get audited.

Quicken or Money Tasks You Should Complete

The Quicken and Money Tax Summary reports list and tally each of the taxable and tax-deductible transactions included on your return. Since the audit will probably consist of the agent reviewing these transactions and deductions, you’ll want to have a listing of the transactions if you use Quicken, Microsoft Money or a similar software program. A Tax Summary report gives this information.

If you know beforehand that a specific tax deduction is being questioned, be sure to bring all the source documents that evidence the pertinent transactions. For example, if the IRS is questioning your charitable contributions deduction, bring any canceled checks you used to make your contributions.

WARNING Don’t bring a laptop computer with Quicken or Microsoft Money to the audit. The IRS agent may appreciate your enthusiasm, but remember that your Quicken or Microsoft Money file largely summarizes your financial life. And Quicken’s or Money’s reports make it easy for the agent to quickly review every nook and cranny, searching for income you may have missed or deductions you shouldn’t have taken.

Other Pre-Audit Preparation Tasks

There are a couple of other things you should be sure to do before you attend the audit, First, make sure that you understand all the numbers on your return, and remember that you signed it under penalty of perjury.

Second, you may want to consider asking your tax preparer to represent you at the audit. There are a variety of reasons for doing this. If you don’t understand your return but your preparer does, it makes sense to have the preparer at the audit.

Sometimes it also makes more sense to have a tax practitioner represent you because he or she knows (or should know) quite a lot about the income tax laws but relatively little about your financial life.

I know a tax attorney who follows this approach because the tax practitioner can honestly answer many IRS questions by saying, “I don’t know.” The tax attorney feels that the “I don’t knows” tend to terminate many spontaneous inquiries.

Things to Do during the Audit

An audit doesn’t have to be a bad experience. All that really happens is that the IRS agent will ask you to explain and document items that the IRS doesn’t understand.

Nevertheless, let me provide you with two final suggestions. First, if the agent identifies himself or herself as a special agent, ask to terminate the interview so you can reschedule it. A special agent investigates criminal tax code violations, so you’ll probably want a tax attorney present at any meetings.

Another thing I suggest is that you be very reserved in your comments. Don’t lie, of course, but don’t volunteer extra information. If you have questions about some deduction or how to treat some income item, ask a tax preparer or telephone the IRS’s taxpayer assistance line, but don’t expect the IRS agent auditing your return to answer tax-preparation questions. (My feeling is that there’s a very strong tendency for the auditor to look only for things that increase your income tax bill, and not for things that decrease your bill.)

About the author: CPA Stephen L. Nelson is the author of numerous best-selling books about small business accounting and the popular downloadable do-it-yourself incorporation guides Incorporating Incorporating a Business in Georgia, Incorporating a Business in Virginia and Incorporating a Business in Massachusetts Article Source: http://EzineArticles.com/?expert=Stephen_Nelson

Reasons for Getting a Tax Attorney

People can get sued for many reasons. There are a few ways to protect your self from a lawsuit, but some lawsuits are just unexpected. The most common way of getting in trouble with the law without even knowing it is when it comes to the tax law. Many people make mistakes when it comes to their taxes without even knowing it, but they will later find themselves in rough problems with the IRS. In this case, the best way to get protection is with a tax attorney.

Most people don't realize that there is a significant difference between a CPA and tax attorney. They can prepare a strong case when dealing with the IRS and everything you tell him is confidential. If you tell your CPA that you've done something illegal when it comes to taxes, he has to testify in court. On the other hand, the relationship between you and your lawyer is somewhat similar to that between you and your priest or your doctor. Most people hire a tax attorney when they start having problems with the IRS, but it is best to already have an attorney before any incident. If the IRS starts an investigation on you, it might be a mistake or you might have done something illegal. There are a number of things that you can do wrong when it comes to taxes and the IRS has the right to start investigating. To make sure that the investigation doesn't end badly for you, you need to hire yourself a good attorney. Unlike general attorneys, these are confronted with tax problems every day. They have higher experience in this field and they know how to get around a rough situation.

The tax law is complicated because of three facts: it changes often, it can differ from state to state and it is not black and white. If you don't have special knowledge about this matter, you will find it hard to keep in touch with all the changes in the jurisdiction. That is why you need a person with experience to handle your problems with the IRS. Your lawyer will "fight" the IRS for you. Most people get in higher difficulties because they try to handle the IRS themselves and they give more information than they should. The IRS can start investigation based on our statements so it is best to let a tax attorney talk for you.

A tax attorney can stop the IRS through a number of strategies and it is up to you to decide what exactly to use. You can explain your situation and you and your attorney can come up with the best solution for your problems. The IRS uses many techniques in order to get what they want and they usually succeed. Only an experienced attorney can stop them in their tracks.

Any person that owns a business or has a reasonable amount of money in real estate or cash should try hiring a lawyer. You can't keep in touch with every move in the tax law, but your attorney can. A good attorney can make you save thousands of dollars in tax deductions and he can make sure that the IRS can't touch you. The best way to stop a problem with the IRS is preventing it and only a good attorney can help you do that. You just need to search and find out who is the best.

Avoid any problems with the IRS with the help of a tax attorney.

Article Source: http://EzineArticles.com/?expert=Ioan_Margineanu

Sleep Peacefully, Hire a Seattle Tax Attorney

A good Seattle tax attorney in addition to solving your tax problems can also help you improve your financial status. If you hire a tax attorney in Seattle you will be provided with practical, economical as well as legal suggestions on how to manage, maintain and improve your finances. You will definitely require the assistance of a tax attorney when you plan on filing a tax return case. Another situation where your tax attorney can literally save your skin is when you are faced with the prospect of being sued by the IRS for non-payment of tax dues.

If is therefore obvious that an attorney offers you both state as well as federal services in matters of tax payments. Going to a tax attorney can have the effect of a purgative. You need to literally bare all if you want this professional to pull you out of trouble. There are many cases when a person has got embroiled in a controversy which is entirely not his fault. It is possible that he got caught up in this web, because of the lure of making money the easy way. In a situation like this, when the person is resting on his laurels (of course, none of which has been won the hard way) he wakes up one day to find that he should be pulling out his running shoes, as the IRS is on the lookout for him. This is certainly not an enviable situation to be in. It means a lot of trouble, both physical and mental for you and your family.

A Seattle tax attorney could be kept informed of all that happens in the life of a client also because he is sworn to secrecy when it comes to financial matters. He is probably not bound by this code, if he were to be asked about any other personal details. On the other hand, investments, debts and all other financial obligations should be kept as confidential as possible. It is also to be remembered that this professional cannot keep facts to himself on the grounds of secrecy, when he is approached by the IRS or its representatives. Chances are that he might land in the same jail as the client if he does so!

They will insist on the client learning the maxim: tax avoidance is legal, but tax evasion is not. The former refers to an exercise undertaken by a tax attorney to reduce the tax burden of a client. A Seattle tax attorney can advise the client on how much tax money he needs to pay as a minimum amount, in order to fall within the legal limits, as specified by the state authorities in Seattle. On the other hand, tax evasion refers to the complete non-payment of dues, even though the client is fully aware that he needs to remit a certain amount on or before a certain date.

Francisco Segura owns and operates http://www.taxattorneyreviews.com Article Source: http://EzineArticles.com/?expert=Francisco_Segura

What You Should Look for in a Business Tax Attorney

No one plans to rack up tens of thousands of dollars of debt with the IRS when they open their business. Most of these problems start small. Little things, like maybe forgetting taxes for one or two payroll periods. Eventually things spiraled out of control. Now you're up to your eyeballs in debt to the IRS with no idea where to turn for help. For serious tax problems, including large IRS debts, payroll and other employment tax problems, you need a tax attorney. Here are some tips for finding an attorney who can successfully go to bat for you against the IRS. Why you can't go with a typical lawyer Tax law is one of the most complicated fields of law. Taking one or two tax law classes in law school doesn't give an attorney the training or experience necessary to represent you effectively against the IRS. It would be like going to an obstetrician for brain surgery. They're both doctors, yes, but with very different specialties. Good tax lawyers know the IRS's rules, and they can use those against them. They have specialized data bases/libraries they subscribe to and know how to utilize to have access to the very complicated, and constantly changing, laws and rules governing tax laws and procedures. The stakes are too high to gamble on a lawyer without these specialized tools, training and experience in tax law. If things go wrong, the business you've worked so hard to build could be shut down. You personally could even go to jail. Your CPA can't help you, either
CPAs know the day-to-day accounting stuff needed to run a business and to file its tax returns. But when it comes to actually going head-to-head in controversies with the IRS, you need someone with both real litigation training and experience and a broad knowledge of how to deal with tax problems. Also, be advised: you have no confidentiality privilege covering potential criminal liability with your CPA. In fact, your accountant is required by law to disclose certain accounting errors, which may land you in even bigger trouble. Consider the ramifications of having your CPA called in as the star witness against you if your case goes to trial. Look for specialized education Diplomas don't lie. Look for specific tax experience and training. Look for a lawyer that specializes in tax law, and preferably one who graduated from a highly-rated law school, such as NYU School of Law. Try to find a lawyer with a Master's law degree specializing in tax law (LL.M. in Taxation). Make sure they are staying current in their field as well. Laws constantly change, and you want to make sure your business doesn't suffer with a tax attorney who's behind the times. References count Ask around. If you know a good lawyer or judge you trust, ask if he or she knows someone who specializes in tax cases who he or she feels comfortable recommending to you. Peer-reviewed ratings, like Martindale-Hubbell, can also give you an idea of what other lawyers are saying about the one you're considering hiring. Ask what the Better Business Bureau has to say about the lawyer. Field experience is absolutely necessary Any time you have a controversy or a fight, you want a litigator. If you have a dangerous or complicated controversy with the IRS, your tax lawyer should also have extensive litigation experience, though very few do. You need someone who has real training and experience in dealing with conflicts and proceedings with someone who's after you.
A significant reason why the IRS settles is because they have to consider the hazard of litigation. They are going to want to get things settled and avoid a lengthy court battle -- but only if your case poses a risk to them. You need a credible threat of being able to go to court and really stand up to the IRS to get leverage to make them settle.

Clifford N. Ribner serves as a tax attorney in Tulsa, Oklahoma. For more than 28 years, he has helped people with serious tax problems fight the government and win. If you're in danger of losing your business because of tax problems, visit him online at http://www.cnribneratty.com.

Article Source: http://EzineArticles.com/?expert=Clifford_N._Ribner

When An IRS Tax Attorney is Needed

Tax payers having problems with the IRS often wonder when they need the assistance of an IRS tax attorney versus trying to handle these problems on their own. The question as to whether or not a tax lawyer is needed can be very important because many options available to taxpayers, whether or not they have filed their back tax returns, have definitive time frames.

The short answer to when do you need IRS tax attorney help is simple. You should seek the assistance of an IRS tax attorney as soon as you start thinking you might. If there is any question in your mind as to whether or not you need a lawyer to help you with IRS issues, then chances are you already passed the threshold of when one may be of great assistance to you.

The IRS has many different collection options at their disposal and will be aggressive in their collection of perceived or real back taxes, penalties, and interest. Did you know, however, that you have legal rights that the IRS may have violated? Did you know that you can sue the IRS for improper actions? An experienced and qualified tax lawyer will know this and should be able to protect your rights.

Every day the IRS makes mistakes and those mistakes can cause significant harm to taxpayers who may or may not have violated tax laws. Even if you believe you made mistakes in the filing of your taxes that does not mean you do not have recourse. You need to make sure your rights are protected by having a qualified tax attorney review your particular circumstances and provide you with information about what, if any, recourse you have.

Protecting your rights against the IRS is something you need to take seriously and you should consider an experienced IRS tax attorney. Law firms like the Mandale Law Firm in Pennsylvania & New Jersey concentrate specifically in this area of the law in order to protect your rights as taxpayers.

Mandale Law provides a customized approach to the tax relief rather than the assembly line technique that is the norm within the industry. For more information on getting an IRS tax attorney go to http://www.mandalelaw.com or call 1 (888) LIEN-FIX (543-6349).

Article Source: http://EzineArticles.com/?expert=Karen_Kirby