Tax lien certificates are debt instruments and one of the many examples of cash flow notes. Procuring one of these notes, which can either be bought or sold, means that the debtor will automatically owe you the debt. Notes obtained from the real estate industry are among the most popular type of notes. Investors prefer to collect them in lump-sum rather than wait for monthly payments.
A lien on a property for not paying taxes is called a tax lien certificate. Owners of a real estate have financial obligations, or a tax lien, each year. To remove the tax lien, they would have to pay the property taxes on time. The county government will allow investors to pay on the owner’s behalf if the taxes are not paid. As proof of purchase, the winning bidder will receive a tax lien certificate at the public tax lien auction.
The investor or certificate owner may expect 2 outcomes:
1. He or she may become the owner of the real estate without the mortgages and mechanics lien or
2. Every year, they will have an annualized return of 16-50% on what they paid in order to obtain the tax lien certificate.
Being the owner of this certificate means sitting back and waiting. The property owner must visit the county tax collectors office when they decide to pay their tax obligation. Here, they will repay the amount you paid to get the certificate plus interest. You will be contacted by the government and asked to return the certificate. The government will then make a check in the amount you paid to get the certificate plus interest.
Tax lien certificates are a great investment for those who are investing in foreclosures. Remember that above everything else, property taxes get paid first. These taxes are even paid before mortgages. Because of this, investing in tax lien certificates is a safe investment. It may be a good idea to see if you can invest in the certificate when you come across a foreclosure and find unpaid property taxes. Tax liens are available in every county in the United States, the most popular being in Maricopa, Arizona.
There have been a lot of changes in the past few years regarding the tax laws. One change includes the Job Creation Act of 2010, which was part of a package designed to help stimulate the economy into new growth. These changes affected the money people earned in 2011 with some of the affected areas being in worker’s gross pay and people’s pensions checks.
When creating new laws during the 2010 tax period there were also several credits that were cut including the making Work Pay credit. The various credits were extended to people who were actually employed during the year and not to those who were retired unless they had collected some form of income.
To help increase the amount of money an employed worker could take home the tax relief Act was created. This reduced the percentage of money that was taken out of a wage earner’s check for social security. This new act did not apply to people receiving pensions.
Even though the laws were created and placed into effect in 2010 they came so late in the year that they did not apply to the previous year’s taxable income. Most employees will not see the changes until they receive a paycheck in February of 2011.
Even though the amount of money withheld for social security will be less there will not be any changes made in other amounts withheld for services such as medicare.
For people receiving pension checks there usual allotment may be lowered depending on the plan used to calculate their amounts. The IRS has published several helpful guides for people who want to understand more about how these changes will affect the money they receive.
It is important for both retired individuals and those who are actively employed to review all of their financial statements pertaining to their withholdings every year to make sure they understand what changes pertain to them.
When doing your taxes there are so many things to remember that mostly everyone forgets about tax benefits for parents. You could receive benefits for your kids. Here are some ways to see if you apply.
– As of March 29, 2010 you can reduce premiums you paid for health insurance, but that’s only if you were self employed. If your child is under 27 even if they have never been your dependent you can claim them. Meaning if you have a child you have never claimed and he or she is under the age of 27 by December 31, 2010, then you can make them one of your dependents that’s only if you paid premiums on any health insurance, and you were self employed then you can minus the premiums you paid for it.
– If you have ever been laid off work and had to hire someone like a baby sitter or a nursery and daycare center. If your kid is under 13 years of age you might be able to claim them as one of your dependents. Meaning if you got fired and you have a kid under the age of 13 and you had to hire someone to watch them as you look for work, you could claim them as a dependent.
-The EITC is a program where you could benefit from incomes you have earned from farming, wages, and self-employment. Actually it takes down the wage of tax you owe and can possibly give you a refund. Therefor certain people can get rewards for incomes they have earned.
– When you have children and they have income that comes to them by working they possibly can have to file a tax return.
-Interest from student loans. If you have a kid that is in college and you pay qualified student loans you can reduce the interest you paid.
Before doing your taxes remember to check up on things and make sure if you have kids to research all the benefits available to you. Your tax return will benefit greatly from your knowledge of child tax credits.
- TurboTax Presents Overlooked Tax Deductions (2010tax.org)
- 2010 Tax Season: Are You Ready? (goarticles.com)
For someone who is getting ready to file their personal income taxes, it is easy for them to be eager about the money that may be coming their way. This can cause someone to make mistakes on their tax forms, and to make mistakes that may end up costing them money, or getting them into trouble. One thing that not everyone wants is a tax audit, and this can often be caused by improperly filed taxes. There are many different things that you will want to remember when filing your 2010 taxes, to avoid an audit or additional problems after you submit your return.
The first is to make sure that you claim every single source of income that you have. This can be many different things that you do not think of, such as babysitting, garage sales, having a roommate, or if you do any freelance work on the side of your regular job. You will also want to have all documentation and paperwork for these different things, so there is no confusion when you need to provide documentation. People also make mistakes when they calculate their tax forms, so to avoid any hassles you want to double and triple check all of your calculations.
Other things that may catch the attention of the IRS is when someone tries to claim their own home as their personal office, or for other business purposes. There are limitations to the amount of money that you can write off for your own personal business, so you want to look into all of them before you file your 2010 tax return. You never want to be audited by the IRS, especially if you have done something wrong, because there are severe consequences. Double-check your work, and your documentations, to avoid and 2010 tax return mistakes.
Do you want to go on a vacation, pay off your car, or buy a new cell phone, yet are living paycheck to paycheck? Well don’t despair here are 9 things you can do to make money from home.
This is one awesome service that you can use for free to offer products and service to other people. You can list little things you have made like cabinets, furniture, or even a custom vehicle build. Or you could offer piano lessons.
2. Websites rule
The method to make the most money from home is to use the internet and set up a website. With it you can make money from home and steadily increase the income month to month, year to year. You have complete control over how to build it, how to market it, what to make it about, how many you have even. There is no limit to what you can do or how to make money from home with websites.
The things you love to do most are the things that will help you make the best business. Or rather a business built on what you love will go much farther than one built just on making money. The reason for this is that others are turned off by money hungry people, and attracted to those that genuinely seem to be loving what they are doing.
4. Advertisements for your car
There are lots of companies that advertise not only on tv but on cars as well. They will pay you to have one placed on different areas of your vehicle. The bigger it is the more you can earn.
5. Clear the clutter with eBay
Get rid of all that you no longer have a use for on eBay and you could be the next millionaire. Well thats if you have an old baseball card collection that your grandfather left you. Even if that doesn’t happen at least you will make a few extra bucks and if you get good make a business out of it.
Get your money from home by taking action right now and select one idea from this list. Work on it every day for the next year. If you do I guarantee you will have learned how to make money from home.
- Internet Marketing Affiliate Programs – How to Earn Money From Home (cash-bandit.com)
If you’re considering the type of investment you should put your retirement money into look no further. In this article I’m going to show you three reasons why the Roth IRA is the best fit for this option.
First off a Roth IRA has the ability to let you pull money or take a distribution tax free after age 59 and a half without enduring a penalty. This means whatever you have in your account is not going to be taxed. However with a traditional individual retirement account you have to pay taxes on ever dime you pull out of the account no matter what.
Second, when you consider the Roth IRA Qualifications it also has another great benefit. It also allows you to grow your money tax free as well. This means that if you see big returns in your account one year you won’t have to pay a dime in capital gains or ordinary income tax. Unlike a traditional IRA you will have to pay taxes on every single dollar you pull from the account no matter what kind of growth you get on your account.
Third and finally, a Roth IRA also allows you to pay the taxes on your retirement income up front. The reason this is better than withholding your taxes is because in your younger years as your saving you won’t usually be earning as much, and you’ll have the added benefit of other tax deductions like your children, and home interest payments which will lower your tax liability.
In the end these reasons can give you much better options to having a better retirement. However you must also know that you have to abide by the Roth IRA Withdrawal and Qualification rules in order to set up an account like this. So get started today and contact your local financial professional.