Tax Deed Auctions - Cashing In With Tax Lien Investing

By: Brent Crouch

As stories of dramatic earning potential and easy profits begin to circulate, many people are growing to regard tax lien investing as some kind of gimmick. Actually, since tax lien auctions are regulated by the government, tax lien investing is very low risk and if you take a moment to do the math you'll see that this highly rewarding opportunity is anything but a gimmick.

Earn your Money Back-Plus Interest and Penalties

When you place a bid at a tax lien auction, you are bidding on a property for which the owner has become delinquent in their taxes. When you win an auction, you will either eventually gain the actual real estate, or you will earn back your investment plus any penalties and interests that accrued during the redemption period. Consider this credit card metaphor-when you don't pay off a credit card balance in its entirety, finance charges are added to the total. If you're late on a credit card payment, late fees are tacked on. Often these accrued fees are staggering in comparison to the amount you would have initially owed. This is essentially the way tax liens work-except that the amounts of money and respective interests involved with real estate are a good deal higher.

When you become the a tax lien investor, you become a secured creditor. With each passing month that the back taxes go unpaid, your wallet gets fatter. The shorter the redemption period, the greater the penalties and interest rates. Six month redemption periods are often the most valuable to an investor.

Home Foreclosures and the Tax Lien Investor

You always want to research your properties and invest wisely in good quality real estate-because sometimes, the property may become yours to own, rent or sell. Imagine you bid $3,000.00 on a property that has a market value of $150,000.00. if the owner fails to redeem their taxes within the redemption period, you become the owner of that real estate. And congratulations--you've just earned four middle-class yearly salaries in six months.

Some investors choose to rent the property as a source of continually generated revenue. Average rent typically ranges from $700.00 to $2000.00 per month. That equals $8,400-$24,000.00 in annual income.

A well-developed tax lien portfolio has no peer when it comes to low-risk, high-gain investing. You make money whether the homeowner redeems their taxes or not-it's a true win-win situation.

Click Here for Our Free Government Tax Sales List http://www.taxlienproperties.net/state-tax-lien-list/

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Stop Tax Procrastination - Discover 10 Tax Tips to Help Small Businesses

By: Ron Finkelstein

Preparing taxes seems complicated but this guide to tax deductions will go a long way in clearing a lot of confusion and putting things in perspective. So if you are among those who procrastinate endlessly to prepare a tax return for your small business, take a look at the guide and it you'll find that it isn't so bad after all... you might just find the energy and drive to get your papers ready in time!

Clear the Calendar: Lack of time is the largest contributor for procrastination. After examining your schedule, select one day dedicated to filing your taxes. If this requires closing the business or filling in with additional employees on that day, just do it.

Use a Bookkeeper: If the work involved in filing your taxes seems overwhelming, you may want to consider hiring a bookkeeper. They can assist you in organizing your specific business concerns, making April taxes seems less daunting.

Take a Trip to the Spa: An overlooked way to increase productivity is to reward yourself when you accomplish a tough task. Rewards to consider might include a day at the spa, a massage, a family outing, or any other reasonable thing that will help motivate you.

Buy a tax program: like Taxcut or TurboTax. These programs make tax preparation easier, and perform all the tasks to make it a less cumbersome process.

Track down a good Accounting Professional: When your business starts to grow, there will be an increase in your income and you will have to face many complications. An accounting professional will be able to help you in overcoming annoying experiences and expensive mistakes. Another advantage of hiring such a specialist is that he can help you with other issues, like providing strategies for managing your cash and giving other practical business and tax tips.

Pay Yourself First: How valuable are YOU to the company? To determine your hourly pay, add your profits for the fiscal year and divide by hours you worked. Next, calculate your tax refund divided by the hours required to complete the return. If your hourly pay matches or is greater than this amount, then you should have plenty of motivation to begin tax return preparations.

Ask for an extension: Most heads of small firms don't have any spare time. However, putting off filing can bog you down in guilt, so that you don't really derive much benefit from putting potential filing time into other company business. Consider asking the IRS for an extension.

Take a Tax Preparation Class: One of the main reasons people delay is because they are uncertain about the requirements. A one-day course in tax preparation for small businesses will help you feel less inhibited and more confident. The IRS itself and various partner organizations offer free online workshops to fit this need. Topics covered include revenue, expenses, filing electronically, employment taxes, keeping records, and various other topics of interest.

Time for a CFO?: As the company grows, so do its financial matters. There comes a time when a staff accountant may no longer be enough for the company. The company's management team may be spending a great deal of time making financial decisions, taking away from their other duties. Or the company, in its quest for additional growth, may desire to offer public stock or raise additional capital. At this point you may want to consider hiring a CFO.

Slow at First: Think in terms of baby steps. Think back to the start-up of the company. If you had known every task necessary to begin the business, you probably wouldn't have considered starting it. So, think small steps. Start with an easy task like organizing files and then go on in small steps.

People never have fun when they have to sit down to file taxes. When you put this tax off, however, you end up with more stress than you would have completing your tax return. Get rid of all of that extra stress. Don't procrastinate any longer. Get rid of all the stress before April so that you can relax.

Ron Finkelstein is NOT a Tax Attorney or an accountant. He is merely a small business owner who has learned a whole lot about The Most Overlooked Tax Deductions, how to pick a tax lawyer, and How to save big when filing business taxes.

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