• Writing a Business Plan? You Need To Know Your Industry and Market Trends Whether for real estate or any other business, knowing your market and the trends within it are crucial for your business plan. Your business exists within a series of ever-expanding spheres of influence. The discussion of these spheres as elements affecting your business will be the bulk of the Industry and Market Trends subsection of your ...
  • Tax Scams to Avoid The Internal Revenue Service has recently issued a guidance list of forty frivolous positions that taxpayers (or more precisely “nonpayers”) have attempted in the past. The IRS released this list to put the public on notice that these positions have no basis for validity in existing law. Tax returns containing these will be rejected. Furthermore, ...
  • When You Owe Taxes… Of any debt, tax debt is perhaps the most stressful. The IRS can be very aggressive in its collection efforts, and has strong, some may say extreme, powers that mere lenders don’t, such as placing a lien on your property (or even seizing it), garnishing your wages, or seizing money from your bank account, all ...
  • What Is Depreciation Recapture? When you sell certain property, whether personal or real estate, that you have depreciated, and have received a benefit from that depreciation, the tax law may require you to report part of your income (equal to the depreciation you have taken and benefited from) as ordinary income taxed at a higher level than the capital ...
  • Should I Hold Property in a Trust or LLC? There are many types of trusts.  A living trust is a common estate planning vehicle that offers probate avoidance but no asset protection.  In such a case, the real estate is best titled in the name of the LLC with the member interests owned by the living trust.  When one party passes, the LLC membership ...
  • What is a Charging Order? A charging order is, in essence, a lien filed against the LLC or limited partnership’s earnings.  After winning a case and getting a judgment, the judgment creditor wants to get paid. He goes to court and gets a charging order, which ‘charges’ him with the right to receive distributions. When profit allocations are made by ...
  • Why You Should Have Separate Accounts for Investment Properties By Garrett Sutton, Esq. It is far too easy for finances to get tangled up, even for the most well-intentioned and serious-minded of investors. That’s why my advice is to do it right the first time. Set up your books so that your investment accounts are separated from your personal and business accounts. Treat your investments ...
  • 10 Steps for Payroll Compliance Payroll definitely requires good bookkeeping and a healthy paper trail. Whether you are hiring a bookkeeper or a bank or payroll service or not, you must make certain that all of the employee payroll-related documentation is on file. The W-4 and I-9 forms signed by employees when they’re brought on board must be on hand. ...
  • The Basics of Bankruptcy In my book, The ABCs of Getting Out of Debt, we discuss several ways to deal with debt. While not a popular option, for many people bankruptcy is the only option. Before you jump into any debt reduction program, make sure to know all of your options available to you. The word bankruptcy alone can conjure ...
  • Credit Reporting is Big Business! Whether you’re a real estate investor, business owner, or just a consumer who has paid bills, you’ve got a credit report. And that report is probably more important to your financial life than any report card you ever received in school. In fact, it plays a key role in what kind of credit you get ...
  • Why You Should Never Hold Real Estate in a C Corporation Last week on Facebook, I made a comment: “Never hold real estate in a C corporation… and fire the advisor that even suggests such a thing.” And many people asked, “Why not?” Well, there are three reasons. Learn How to Create a Real Estate Investment Business Plan in 4 Steps. Reason #1: Capital Gains Taxes Will ...
  • What is a Professional Corporation (P.C.)? In many states, professionals who want to incorporate their business can do so only as a “professional corporation.” In other states, professionals have a choice of incorporating as either a professional corporation or a standard corporation. What services constitute professional services are defined by state law, and vary from state to state. However, it is ...
  • What is The Duty of Care and Why Should Landlords Care About It? The Duty of Care – what does this really mean to a rental property owner? Case law and legislation by lawmakers across the country have established the public policy that landlords exercise reasonable care in managing their properties to prevent foreseeable injuries to others. Consequently, this duty of care is owed by landlords to all people ...
  • Get it in Writing When running a business it is important to have and use solid contracts. A solid contract is one that is: 1.  In writing; and 2.  Drafted well enough to accurately state ‘the deal;’ and 3.  Protects your interests. Many business owners are content to rely on oral contracts.  A ‘handshake’ deal without the need for lawyers and time consuming ...
  • Sick of Debt? Everyone in debt knows that debt can make you feel sick. You plan around it; you think about it; you worry about it. Many of us can trace our level of stress right back to our level of debt. A study at Ohio State University found that people who reported higher levels of stress in ...
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