With all of the new and exciting changes in Capital Gains Tax savings, the new revised version of my Interview with the Pros series has been updated for 2007.
You will hear directly from the founder of the charitable foundation offering the installment sale through the foundation for maximum tax savings. The information of how a charitable bargain sale is combined with an installment sale to provide a guaranteed income stream, charitable tax deduction and partial forgiveness of capital gain tax and recaptured depreciation is explained in simple language.
Your CPA and attorney will love this important information. You will know what only about 1% of any potential seller or their counsel even aware of.
My segment is new as well, detailing how the recent changes have opened up ways to help people that didn't exist last October.
Here's the new link Interview with the Pros - 2007 Revision
If you have more than 100K inequity in any investment you are selling, you will receive your investment back tenfold by learning this information prior to sale.
You DO have great options!!
Paula Straub
760-917-0858
Qualification Questionnaire - Find out if you qualify to save thousands in taxes
Thursday, February 08, 2007
Wednesday, January 31, 2007
Californian's Get a Break in 2007
Among new laws taking effect for investment property sales after January 1, 2007 , this one gives a break to most real estate investment property sellers.
Here's an excerp from a San Francisco newpaper article:
-- Lower withholding on property sales: If you sell any type of real estate other than your primary residence for more than $100,000 in California, the escrow company is usually required to withhold part of the proceeds for state taxes.
The old withholding rate was 3.33 percent of the sales price.
"Many times that resulted in over-withholding," says Denise Azimi, a spokeswoman for the California Franchise Tax Board. Sellers had to wait until they filed their return to recoup the excess tax.
Now you have a choice: You can request withholding at the old rate or an amount equal to your estimated capital gain, taxed at your marginal state-tax rate, which for most individuals is 9.3 percent.
If you sold a $1 million property with a $100,000 capital gain, under the old law your withholding would have been $33,333. Under the new option, it would be $9,300, assuming a 9.3 percent tax rate.
The new law applies to property sold starting this year.
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This is especially important to sellers with a high selling price and fairly small gain. I've had client's tell me nightmare stories about having to take out home equity loans to cover the franchise tax!
We here in California will gladly take any new tax breaks we can get!
Paula Straub
www.savegainstax.com
Questionnaire to find out if you qualify to save thousands in Capital Gains Tax
Here's an excerp from a San Francisco newpaper article:
-- Lower withholding on property sales: If you sell any type of real estate other than your primary residence for more than $100,000 in California, the escrow company is usually required to withhold part of the proceeds for state taxes.
The old withholding rate was 3.33 percent of the sales price.
"Many times that resulted in over-withholding," says Denise Azimi, a spokeswoman for the California Franchise Tax Board. Sellers had to wait until they filed their return to recoup the excess tax.
Now you have a choice: You can request withholding at the old rate or an amount equal to your estimated capital gain, taxed at your marginal state-tax rate, which for most individuals is 9.3 percent.
If you sold a $1 million property with a $100,000 capital gain, under the old law your withholding would have been $33,333. Under the new option, it would be $9,300, assuming a 9.3 percent tax rate.
The new law applies to property sold starting this year.
-------------
This is especially important to sellers with a high selling price and fairly small gain. I've had client's tell me nightmare stories about having to take out home equity loans to cover the franchise tax!
We here in California will gladly take any new tax breaks we can get!
Paula Straub
www.savegainstax.com
Questionnaire to find out if you qualify to save thousands in Capital Gains Tax
Monday, January 29, 2007
Time to Sell Florida Investment Property?
Hi All,
I've been getting a ton of calls from Florida property owners lately. There is a very good reason for this.
Three things have happened in the Florida real estate market in recent years.
First, property values have increased dramatically. That's good news, of course.
Second, property is being reassessed for the higher values and property taxes are increasing rapidly. Not so good...
Third, due to the recent hurricanes, homeowner's insurance is either being canceled or has become so cost prohibitive that many people can no longer afford it. Again, not good for owners.
My parents live in Florida on a fixed income. They own their home outright, so have the option of not having home owner's insurance. Their carrier is pulling out of the Florida market completely. The 'replacement' carrier is almost tripling the premiums and increasing the deductible. They have decided to take their chances and go without.
For those with mortgages, this is not an option. Most lenders require you carry insurance.
So, now many retirees are finding they can no longer afford to remain in Florida. They are selling their homes and moving to places like the Carolina's and Georgia. Those with second homes are also selling.
Their residences have often appreciated and the sellers will face capital gains issues.
Also, many people own rental properties in Florida. What used to generate a decent income for them, now barely turn a profit. With the tax and insurance increases, the rent profit is diminished considerably. Rents cannot be raised enough to offset the expenses.
Here also there will be a capital gains tax problem on sale.
There are ways to minimize this burden. If you are selling Florida property or know someone in this situation, fill out a questionnaire or call me at 760-917-0858. I can help.
Paula Straub
ps. Check out the new Beginner's Guide to Saving Capital Gains Tax
I've been getting a ton of calls from Florida property owners lately. There is a very good reason for this.
Three things have happened in the Florida real estate market in recent years.
First, property values have increased dramatically. That's good news, of course.
Second, property is being reassessed for the higher values and property taxes are increasing rapidly. Not so good...
Third, due to the recent hurricanes, homeowner's insurance is either being canceled or has become so cost prohibitive that many people can no longer afford it. Again, not good for owners.
My parents live in Florida on a fixed income. They own their home outright, so have the option of not having home owner's insurance. Their carrier is pulling out of the Florida market completely. The 'replacement' carrier is almost tripling the premiums and increasing the deductible. They have decided to take their chances and go without.
For those with mortgages, this is not an option. Most lenders require you carry insurance.
So, now many retirees are finding they can no longer afford to remain in Florida. They are selling their homes and moving to places like the Carolina's and Georgia. Those with second homes are also selling.
Their residences have often appreciated and the sellers will face capital gains issues.
Also, many people own rental properties in Florida. What used to generate a decent income for them, now barely turn a profit. With the tax and insurance increases, the rent profit is diminished considerably. Rents cannot be raised enough to offset the expenses.
Here also there will be a capital gains tax problem on sale.
There are ways to minimize this burden. If you are selling Florida property or know someone in this situation, fill out a questionnaire or call me at 760-917-0858. I can help.
Paula Straub
ps. Check out the new Beginner's Guide to Saving Capital Gains Tax
Tuesday, January 16, 2007
New Real Estate Investor Product is Launched
It's been in the works for quite a while and now it's online!
Since many of my readers and clients are real estate investors I wanted to put together an educational product addressing issues related to the sale or exchange of real properties.
Whether you are just beginning your real estate investing career or are an old hand with a large porfolio, you need to know what options you have as exit strategies when the time comes to sell. If you don't, you may be burdened with a much greater tax obligation than you ever anticipated.
"The Definitive Beginner's Guide to Potentially Saving Hundreds of Thousands of Dollars in Capital Gains Tax" is available for download at:
Beginner's Guide Resource
There are also a couple of great bonuses thrown in and the cost is minimal.
So, go right now and check it out. If you are still actively investing, this knowledge can be used to your advantage when purchasing property as well.
If you educate the seller that they have options to minimize their taxes, that may seal the deal and put you ahead of your competition.
Paula Straub
760-917-0858
askpaula@savegainstax.com
Qualification Questionnaire for quick personal reply
Since many of my readers and clients are real estate investors I wanted to put together an educational product addressing issues related to the sale or exchange of real properties.
Whether you are just beginning your real estate investing career or are an old hand with a large porfolio, you need to know what options you have as exit strategies when the time comes to sell. If you don't, you may be burdened with a much greater tax obligation than you ever anticipated.
"The Definitive Beginner's Guide to Potentially Saving Hundreds of Thousands of Dollars in Capital Gains Tax" is available for download at:
Beginner's Guide Resource
There are also a couple of great bonuses thrown in and the cost is minimal.
So, go right now and check it out. If you are still actively investing, this knowledge can be used to your advantage when purchasing property as well.
If you educate the seller that they have options to minimize their taxes, that may seal the deal and put you ahead of your competition.
Paula Straub
760-917-0858
askpaula@savegainstax.com
Qualification Questionnaire for quick personal reply
Friday, January 05, 2007
Off to a great January Start
Happy New Year! I'm very excited to begin 2007.
My product "The Definitive Beginner's Guide to Potentially Saving Hundreds of Thousands of Dollars in Capital Gains Tax" will be launching any day now.
It's geared towards real estate investors and planning for exit stratgies even when just getting started in the business.
I was interviewed for the January 2007 issue of Financial Advisor Magazine and the article just came out. Here is a link to it:
Article in January 2007 Financial Advisor Magazine
Things were changing so fast before press time, it doesn't reflect the most current version of the Installment Sale Through a Foundation, but it does give a great overall view of what's happening in our industry.
Till next time...
Paula Straub
Find out if you qualify to save capital gains tax
Qualification Questionnaire
My product "The Definitive Beginner's Guide to Potentially Saving Hundreds of Thousands of Dollars in Capital Gains Tax" will be launching any day now.
It's geared towards real estate investors and planning for exit stratgies even when just getting started in the business.
I was interviewed for the January 2007 issue of Financial Advisor Magazine and the article just came out. Here is a link to it:
Article in January 2007 Financial Advisor Magazine
Things were changing so fast before press time, it doesn't reflect the most current version of the Installment Sale Through a Foundation, but it does give a great overall view of what's happening in our industry.
Till next time...
Paula Straub
Find out if you qualify to save capital gains tax
Qualification Questionnaire
Wednesday, December 20, 2006
How do you Treat the New Kid on the Block?
First, if anyone has sent a qualification questionnaire in the last 3 weeks and did not get a response- it was eaten up by the email goblins who sent it to a black hole somewhere. After receiving a call from someone who thought I just wasn't getting back to them as promised, I discovered the email program had decided to just completely break down. It is fixed as of today, and all is back on track. I really hate it when that happens, and it does seem to happen at least twice a year without warning for some reason no one can figure out.
The last few months have certainly brought major changes in the Capital Gains Tax Savings arena. It has become an ongoing evolution and is definitely to the benefit of the seller, as the problem has not diminished as far as the taxes owed if an appreciated asset is sold outright. Not everyone welcomes change, however, and as is all too common - change breeds controversy.
I have come up with an analogy that I believe will describe how different people tend to approach new concepts. It's just a fact of human nature I guess.
Here goes...
Let's say there is a neighborhood full of kids from different families. Some kids have lived there all their lives, some for quite a few years and some are fairly new. They may have some basic disagreements amongst themselves, but they pretty much are able to co-exist with the occasional argument or conflict.
Then a new kid moves into the neighborhood. He's a good looking fellow on the outside, but no one knows much about what he has to offer on the inside because he just showed up in town.
Some of the kids will be eager to shake is hand and look forward to getting to know him better. They'll invite him over, ask him questions and see if he fits into their crowd. They welcome new blood and hope the new guy can bring something positive into their lives. They make the effort right from the start.
Another bunch of kids will keep their distance for a while. They won't introduce themselves right away - they'll watch and see how he seems to fit in with the first group. If all goes well, they'll invite the new guy over when they feel more comfortable opening up. If they see that the first group really doesn't care all that much for the new kid after getting to know him better, they probably won't bother to make an effort later on themselves. They're the wait and see types.
Then there's a third group that is suspicious of anyone new right from the start. They don't want to get to know the new guy- they'd rather just assume he won't fit in and maybe will even make fun of him or try and trip him as he walks by. They're happy with their life as it stands and the group they already know. Plus, someone that good looking probably doesn't have much else going for them anyway, right? Who needs a new friend when they're just fine as they are. They are the nay sayers. It's easy to criticize right from the start.
Back to capital gains tax saving land. The new kid on the block is the Installment Sale Through a Foundation.
There are those who can't wait to find out all about it and how it can benefit them or their clients.
There are those who don't have much of an opinion yet either way. They'll wait and see how it's accepted over time.
And there are those who have taken a stand that they don't think it could possibly have any merit whatsoever- so rather than getting to know how it really works- they prefer to start calling it names and warning others to steer clear. There's got to be something wrong with it right? Even if they don't know exactly what that might be yet. Surely there's got to be something!
I happen to be a member of the first group. Whatever new strategy becomes available I want to be the first to find out all about it. I'll ask questions until I run out. If there is something that could be better, I'd rather ask what can be done to make it right? It's only then that I'll really know if the new kid is worth hanging out with and introducing to my other friends.
As a matter of a fact, so far I like him a lot. He's a work in progress but he has a whole lot more to offer than the kids throwing the stones, and, he's a lot more pleasant to be around.
I'll be launching my new educational product "The Definitive Beginner's Guide to Potentially Saving Hundreds of Thousands of Dollars in Capital Gains Tax" just in time for the holidays. Stay tuned.
Paula Straub
askpaula@savegainstax.com
Qualification Questionnaire (now working again)
The last few months have certainly brought major changes in the Capital Gains Tax Savings arena. It has become an ongoing evolution and is definitely to the benefit of the seller, as the problem has not diminished as far as the taxes owed if an appreciated asset is sold outright. Not everyone welcomes change, however, and as is all too common - change breeds controversy.
I have come up with an analogy that I believe will describe how different people tend to approach new concepts. It's just a fact of human nature I guess.
Here goes...
Let's say there is a neighborhood full of kids from different families. Some kids have lived there all their lives, some for quite a few years and some are fairly new. They may have some basic disagreements amongst themselves, but they pretty much are able to co-exist with the occasional argument or conflict.
Then a new kid moves into the neighborhood. He's a good looking fellow on the outside, but no one knows much about what he has to offer on the inside because he just showed up in town.
Some of the kids will be eager to shake is hand and look forward to getting to know him better. They'll invite him over, ask him questions and see if he fits into their crowd. They welcome new blood and hope the new guy can bring something positive into their lives. They make the effort right from the start.
Another bunch of kids will keep their distance for a while. They won't introduce themselves right away - they'll watch and see how he seems to fit in with the first group. If all goes well, they'll invite the new guy over when they feel more comfortable opening up. If they see that the first group really doesn't care all that much for the new kid after getting to know him better, they probably won't bother to make an effort later on themselves. They're the wait and see types.
Then there's a third group that is suspicious of anyone new right from the start. They don't want to get to know the new guy- they'd rather just assume he won't fit in and maybe will even make fun of him or try and trip him as he walks by. They're happy with their life as it stands and the group they already know. Plus, someone that good looking probably doesn't have much else going for them anyway, right? Who needs a new friend when they're just fine as they are. They are the nay sayers. It's easy to criticize right from the start.
Back to capital gains tax saving land. The new kid on the block is the Installment Sale Through a Foundation.
There are those who can't wait to find out all about it and how it can benefit them or their clients.
There are those who don't have much of an opinion yet either way. They'll wait and see how it's accepted over time.
And there are those who have taken a stand that they don't think it could possibly have any merit whatsoever- so rather than getting to know how it really works- they prefer to start calling it names and warning others to steer clear. There's got to be something wrong with it right? Even if they don't know exactly what that might be yet. Surely there's got to be something!
I happen to be a member of the first group. Whatever new strategy becomes available I want to be the first to find out all about it. I'll ask questions until I run out. If there is something that could be better, I'd rather ask what can be done to make it right? It's only then that I'll really know if the new kid is worth hanging out with and introducing to my other friends.
As a matter of a fact, so far I like him a lot. He's a work in progress but he has a whole lot more to offer than the kids throwing the stones, and, he's a lot more pleasant to be around.
I'll be launching my new educational product "The Definitive Beginner's Guide to Potentially Saving Hundreds of Thousands of Dollars in Capital Gains Tax" just in time for the holidays. Stay tuned.
Paula Straub
askpaula@savegainstax.com
Qualification Questionnaire (now working again)
Tuesday, December 12, 2006
My Pain is Your Gain
It's been a bit longer than usual since I've posted. This is mainly due to more great changes in the capital gains tax saving arena.
Ever since the Private Annuity Trust was discontinued, a lot of professionals have been working overtime to come up with better and better options.
The most recent (effective 12/15/06)is the best yet. Although each time a client can benefit more I'm jumping up and down, I've done a bit of personal grumbling as I have to constantly update my sites, posts and even postpone the launch of my new product- which was due out today.
The new strategy is an installment sale through a foundation, and the thing that has recently changed is the foundation itself. The reason is that the new foundation does all the things the other one did but returns more to the client because it contains costs at a more effective rate.
I'll be holding a special telecall next week to explain in greater detail,and I will be posting more as time allows. Just know that it gives you the maximum savings and return allowed under current tax law and beats the pants off of the other choices out there (except the 1031 exchange for investment real estate).
I also hope to launch my "Definitive Beginners Guide to Potentially Saving Hundreds of Thousands of Dollars in Capital Gains" before the end of December. It's undergoing last minute revisions so the information is brand new and relevant.
I'll keep you posted!
Paula Straub
760-917-0858
Qualification Questionnaire is available to find out what strategies you qualify for.
Free Report
Ever since the Private Annuity Trust was discontinued, a lot of professionals have been working overtime to come up with better and better options.
The most recent (effective 12/15/06)is the best yet. Although each time a client can benefit more I'm jumping up and down, I've done a bit of personal grumbling as I have to constantly update my sites, posts and even postpone the launch of my new product- which was due out today.
The new strategy is an installment sale through a foundation, and the thing that has recently changed is the foundation itself. The reason is that the new foundation does all the things the other one did but returns more to the client because it contains costs at a more effective rate.
I'll be holding a special telecall next week to explain in greater detail,and I will be posting more as time allows. Just know that it gives you the maximum savings and return allowed under current tax law and beats the pants off of the other choices out there (except the 1031 exchange for investment real estate).
I also hope to launch my "Definitive Beginners Guide to Potentially Saving Hundreds of Thousands of Dollars in Capital Gains" before the end of December. It's undergoing last minute revisions so the information is brand new and relevant.
I'll keep you posted!
Paula Straub
760-917-0858
Qualification Questionnaire is available to find out what strategies you qualify for.
Free Report
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