The 1031 Exchange: Building Bigger Houses of Cards

Posted by wpadmin | Posted in Finances, Real Estate, Taxes | Posted on 13-01-2016

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We’re sure many wonder just how people get rich: tenacity. That’s the only way we can describe it. It all boils down to how you buy a candy bar for a buck and then sell it for two bucks. Simple as that. Increase the scale as high as you want to go, and you have a major money maker on your hands. That’s why selling homes can be a lucrative business, especially when you involve crowdfunding, but even more so, you save a ton of money on your taxes offsetting real estate capital gains or losses with this:

The 1031 Exchange: Investing Your Business in Something Biggertax return house of cards

How so? How does this work? Simply put, a 1031 Exchange in the IRS Code allows any real estate investor the ability to sell a property, take a profit, and then defer capital gains or losses provided the proceeds go to a reinvestment in a new similar used building. Think of house flipping, for instance.

Not all real estate transactions will actually apply to the 1031 Exchange, though; the property you’re reinvesting into would have to be utilized for trade, business or investment. In other words, if you’re living in a house, and then sell it to a buyer, you can’t use your earnings on it to buy another house to live in and then save on the sales taxes you’ll have to pay anyway. It would strictly have to be on the corporate side — a little something aside from the tax write-offs, say, real estate professionals can take advantage of.

So think of a house of cards, getting bigger and bigger. It’s kind of like that idea. Buy a building for, say, $150K and then turn around, sell it for $200K (you’ve just made $50K in profit). You’d have to pay taxes on the profit itself unless you take your entire $200K and invest in another property. This tax benefit often works quite well for house flippers for obvious reasons, but you get the picture. Keep reinvesting on more and more buildings, and you’ll continually make more and more profit over time while saving on your taxes. That’s the idea anyway.

Learn More About Tax Shelters and Sign Up With ITPN Immediately

And that’s just one way to maximize your taxes and take advantage of the many possible credits you can obtain. Click here to learn about other ways to increase that tax refund. Are you ready to file that tax return? Sign up with the Income Tax Planning Network and get started today.


The 529 College Savings Plan: Benefiting Taxes and Education

Posted by wpadmin | Posted in Finances, Taxes | Posted on 12-01-2016

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Talk about killing two birds with one stone: the 529 college savings plan, operating very much like a retirement plan, not only saves up some on the expense for college later on life, but cuts down on your taxes over time. A nice little tax shelter benefiting you in the long run and ensuring your kids get the quality college education they deserve.

But How Does the 529 College Savings Plan Work?tax return-1

Also known as qualified tuition programs (QTPs), the way contributions work for these types of plans is that it allows you to defer your taxes. All your contributions to these ‘accounts’, if you wish to call them that, are tax-free. It, therefore, means that when it comes time for your budding college student to leave the family nest and venture out into the unknown, you can pull the funds out and not pay any federal tax for the tuition costs, room, and board. Even better is the benefit that you most likely won’t even have to worry about any state tax if the beneficiary, your child going to college, sticks with a university that’s in the same state. Like we said: killing two birds with one stone, education and finances.

This ultimately saves you on the taxes, as a veritable tax shelter, cutting down with these beneficial credits. Plans do vary, so sign up with the Income Tax Planning Network right away and then consult your ITPN specialist to see what your options are. You may have a variety of lifetime contribution limits, some ranging around $200K, so crunch your numbers and see what you’ve got.

Because the Future of Your Child’s Education Ultimately Revolves Around Your Future Finances

Click here for more information about other tax shelters you can take advantage of, plus some information about tax advice when divorcing, or other business tax write-offs you need to know about. Remember: information is power. Planning is power. And here’s where you get a bunch of it.


Why Flypaper Might Be Related To Business Revenue Success

Posted by wpadmin | Posted in Finances | Posted on 16-07-2015

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This morning, while trying to get something off a high shelf, I caught a piece of flypaper with my arm.

Have you ever accidentally touched flypaper? For the unenlightened, I’ll explain. Three bouts of  vigorous scrubbing, four hours of work, an hour-long jog, and three episodes of “Criminal Minds” later,  the faint residue of fly-catching goo is still clinging to my skin. Getting this stuff to come off is a serious trial.

Everyone’s heard the old adage “you catch more flies with honey than vinegar”. Honey is sweet, sure – but it’s also sticky, and that’s what your business needs to be if you’re going to generate real business revenue success.  But how, exactly, do you create something like that? How do you make something that not only brings your customers the revenue your expected – but also the revenue that you didn’t?

It’s simple.

Flypaper Is Designed to Catch Fliesbusiness revenue flypaper

The thing that makes flypaper effective is that it was designed with a goal in mind. That’s why it catches flies – but it also catches things it didn’t mean to (like my arm hair, yeesh!). The key is in having a clear plan to avoid financial peril with your business.

What Makes a Business Sticky?

Stickiness is what keeps your customers coming back again and again. The stickiness of your business revenue can usually be measured in repeat business and word-of-mouth advertising as well as effective cloud-based bookkeeping. How many customers do you have coming back again and again with minimal overhead? Is your product so good that your customers have nothing but good things to say about it? Customer relationships are vital to business revenue.

How Do I Add a Little Stick to My Business Revenue Action Plan?

Evaluate. Stickiness comes from customer relations and product quality. Are you providing the very best product you can? How do your customers feel about their experience with you? Find at least one metric you can use to measure these things – perhaps a survey, or tracking online reviews – and take all the feedback you can get.

Pay attention to what works, and discard anything that doesn’t. If you ensure that every customer comes away from their transaction delighted, then stickiness will follow.

Remember – flypaper was designed with fly-catching in mind. Design your business with the best customer experience possible in mind, and you’ll catch everything you set out to – and more!

4 Ways to Know Donald Trump’s Take on Financial Forecasting Failure

Posted by wpadmin | Posted in Finances | Posted on 16-07-2015

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Who doesn’t love the hairpiece? Seriously. Donald Trump’s the poster child, perhaps, for a special kind of hair, but also for just mega-success, so you’d have to expect that such a man knows a bit about financial forecasting failure. How does one see all the wrong signs and then walk into a financial wall of fire? Very simply, actually, as detailed here:

It’s All About Accuracy When it Comes to Financial Forecasting

Hence, if you don’t have it, you’re going to lose. You’re fired as Donald Trump would say. Given he’s probably one of the most prolific entrepreneurs of our age, these tips would go quite well with his business ethic, so as someone who may be considering everything from a cloud-based bookkeeping service to a rent-to-own consultant or even a 2-hour tax return, you might like to consider the content here as a wealth of resources —financial forecasting failure Donald Trump

And that’s just the beginning. You can read more about it at the Income Tax Planning Network and Cloud Based Bookkeeping, getting access to services that’ll keep you on the right track with your business finances. But more importantly….

“You Have to Think Anyway, so Why Not Think Big?”

Donald Trump said that. Wise words. He also said all the women on the show “The Apprentice” flirted with him, either consciously or subconsciously. We won’t judge. After all, he’s a successful businessman.

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