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Where is the best place for real estate investment in Florida?



In many parts of the country, real estate is on the decline. In Florida, however, the opposite is taking place. Now, is the best time to purchase a piece of real estate in the Sunshine State. Why is now such a great time to buy? The job rate is increasing and so is the purchase rate. Those two things together equal a great profit for you in the long run.

There is currently a process called “pre-construction investment” that allows you to purchase a home that is being built for a small down payment. As the construction continues, the home value goes up. By the time the construction is complete, the home is worth that you originally financed and you’ve made some money.

Here’s how it works. You purchase a piece of land from the construction company or a developer. Often times, you’re only required to put a small amount down (like $5,000). While the home is being built, you’re not required to make payments on the loan; this allows you to sit on the equity. When the home is complete, you can sell it for the current market value and earn the equity as profit.

So where can you find land that qualifies for pre-construction investment? Ask any developer. Chances are, there are neighbors being built all over the state.

Roll Your thrift savings plan tsp In Real Estate For Foreclosures

So you want to get a great investment of your TSP. Well your TSP should be rolled into real estate. But not just any old real estate. With the sub prime mortgage issue looking to continue hurting real estate prices your best bet is to find homes at rock bottom prices. There is no better way to find that than with property foreclosures. These are sometimes called distressed homes. I have actually seen some of these properties sell for under $10,000.00. So here is what you want to do, you can use your TSP or what is better known as the Thrifty Saving Plan. What exactly is this? The Federal Thrift Savings Plan, or TSP, is a retirement savings plan for USA civilians who are currently, or previously were, employed in the service of the United States Federal Government and is for those individuals in the United States uniformed services. This TSP as of July 31, 2007 have over USD$224,000,000,000, that’s a lot of cash floating around. You don’t need to roll it over in real estate you just need to pay a low $50.00 and apply for a loan. This loan can be used to purchase a foreclosed loan. This is a brilliant plan that many people are putting in action. However your first step is to:

Find A Listing Of Foreclosed Homes First:


WAIT!

Then when you sign up contact the TSP offices at 1-TSP-YOU-FRST (1-877-968-3778) and find out how much you qualify for. Then browse the List and look for properties that fall in that bracket.

Once you have done that then you are off to the races in finding a better investment.

Try and sign up for these guys too they offer a very large and comprehensive list of foreclosed properties.

 


Click here for Bargain.com

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Real Estate Loss Tax

Tax Help

Real estate loss taxes are very important to many people. This can take the form in losses on property rentals on an every day property as well as losses on a sale of real estate. However there are losses on real estate that take place. This differs if you are an individual or a company. The major concern is the carry forward of these losses. If you make a loss on the sale of a property then you are able to carry those loses to apply against your earning in future years.

Real Estate Loss Taxes for Landlords

Landlords must have up to date accounting records pertaining to the following the cost basis, the income, and total expenses (normally called net income). The best way to do this is with property software that calculates this on a spreadsheet. You can easily see your net income and profit and loss with these types of software.

Software that we recommend


 

In order to keep track of your real estate loss tax ensure you use:

  • The purchase price of the property in question.
  • The accumulated depreciation and annual depreciation for the current year.
  • Total rental income,
  • Total security deposits held and collected.

The expenses that you must consider are:

  • Property management fees
  • The total advertising costs incurred during the rental process.
  • Property maintenance and repair costing – inclusive of utilities, landscaping, waste management etc.
  • Property insurance expenses.
  • Returned or reimbursed security deposits.

Once this is ascertained you can quickly determine if you made a loss or a profit. If you made a real estate loss of this kind then you can carry forward those loses to apply against income until you begin making a profit and then apply that to your taxes in the next year. However this changes if you decide to sell the property.

Real Estate Loss Taxes for Investors

If you purchase a property for $x.00 and sell it for less than $x.00 then this is considered a capital loss and can be brought forward to the following year. This would be coupled with the loses that you made if you had attempted to earn rental revenue and this also ended up being an operating loss. However you must note that: the IRS limits losses from property rentals to a maximum of $25,000 per annum with further information found in Schedule E of the IRS instructions.

To actually determine a real estate tax loss you must first calculate the losses. This is

SALE PRICE – COST BASIS = Gain / (LOSS)

Cost Basis is : Purchase Price + In purchase costs (realtor fees etc.) + property improvements + selling costs (advertising, real estate agent commission) – total accumulated depreciation.

If there is the loss the IRS schedule states ‘Generally, losses from passive activities that exceed the income from passive activities are disallowed for the current year. Unused passive losses are carried forward to all future years. A similar rule applies to credits from passive activities.’ Hence you must note that you can carry forward the losses. Please note it is always best to seek professional advice in these matters. Get free real estate loss tax advice here:

www.taxbrain.com - Online Taxes

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