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Tax Planning Notes
Question: Buying Condo, what kind of extra fees can I expect?
I am planning to buy condo and pay all the money upfront, this means I will not be taking out any mortgage. So lets say condo costs 300k what others fees should I expect to pay, for example tax, etc..? Please list the fees and how much they would be if condo costs 300k and I pay the whole sum upfront. Also please note this is a brand new development which was just build so I would be buying directly from developer. Its a 16 units condo building in Brooklyn, New York.
Please give an actual $$$$$ ammounts of actual fees on the 300k condo I want to know how much I will actually have to pay….
Answer: With the information you have provided you cannot expect exact figures but I can help with you basis to come up with a pretty good guessestimate.
1/ Real estate taxes - these are levied based either on assessed value or fair maket value. Say the applicable real estate tax rate for your locality is $1.00 (pls. find out what it is) then the real estate taxes assessefd would be $1.00/$100 of $300k which is $3,000 annually.
2/ Property insurance....an estimate used by lenders is $500/$200,000 of market value which would be $500/$200,000 of $300k....$750 annually.
3/ Condo dues...can vary greatly but typically btw $100 - $250 per month or ...assume highest value to be conservative...
Total costs = $3,000 + $750 + ($250x12) = $6,750...does not factor utilities and other erlated expenses such as phone, cable etc.....
Jim Britt Speaks to Gabby Huguenin on Wealth Building
Tax Planning Centre
Question: Henge help?
I’m thinking of building a henge.
I’ve studied the layout of Stonehenge, so I have a good idea of what I’m up against, in terms of engineering and architectural challenges.
I’ve sourced the necessary materials, and found a suitable piece of land.
I see it becoming a shared facility, not only a tourist attraction, but a place where Pagan groups will be able to hold ceremonies, and perhaps weekend conferences, once the nearby conference and accommodation centre is complete.
As it will be a site of Spiritual and Religious significance, should I be able to claim tax breaks from the Government, during the construction phase?
Has anyone else has ever built a henge, and did they find their local planning authorities to be helpful?
I’ve been told that sacrificing a white bull will improve my chances of getting a planning permit, but I don’t want to overdo things in case I jeopardise my chances…
Answer: Why build a Stone Henge? I've had great results with Styrofoam Henge, or even Cardboard Henge.
Center For Tax & Strategic Planning
Tax Planning Techniques
The government provides estate tax as a levy against the taxable estate of a deceased person. Taxable estate is gross estate that is reduced by some allowable deductions. The value of an asset is determined on the basis of “fair market value” or the amount that it would fetch if sold in the open market. Every benefactor needs to have a personal representative who will be choosing the date for valuation to ascertain the asset’s value.
It can either be the date when the benefactor dies or six months later. The date of alternative valuation is followed only if there is lower tax incidence. The estate’s liability for taxation starts with the death of the benefactor and it is paid out of the estate before the property is distributed to the beneficiaries. Unless there is an extension the estate tax needs to be paid within nine months from the day the benefactor dies.
Estate tax planning is essential if you want to preserve your wealth for the coming generations. In order to start planning, you need to know the potential estate tax liability. According to the law that was enacted in the year 2001, whatever you own will be subject to the federal estate tax when you die, until 2010. There will be no federal taxation on the estate till 2010. This law will expire by the end of 2010.
No financial plan can be considered complete without estate planning. It is the best method of preserving the assets you have for your future generations. Many people think of estate planning as legal wills. They need to know that it is not a will but a series of legal steps through which they can allow beneficiaries to avoid the probate and minimize the incurred taxes. Estate planning helps you get a direct control on how you will like your asset to be treated when you die.
Till the year 2005 there was no estate tax levied on the first 1.5 million dollars of the net estate, but there will be an increase in the basic exemption level in 2009 to 3.5 million dollars. Although this tax will be removed in 2010, it will be reinstated to an exemption of 1 million dollars in 2011. There are many ways through which you can bring about a reduction in estate tax. One technique is to gift the asset during your lifetime. Since 2006, the federal tax law permits every individual to gift approximately 12000 dollars every year to as many people as possible without incurring gift tax.
Another option would be to give such gifts every month when alive instead of giving a lump sump after death so that the taxable estate can be reduced. Stocks, business or a percentage of ownership in real estate can also be given as a gift till it is below the 12000 dollars amount. There is no estate or gift tax applicable if you are transferring assets to your spouse in your lifetime, irrespective of the amount. But the surviving spouse should marry again and transfer the property to the new spouse in order to be able to enjoy the unlimited marital deductions.
About the Author:
Sacramento CPA Firm Murray and Young offer Tax Representation by a former IRS auditor. For useful articles and tips by Sacramento Estate Tax Planners, please visit our website at http://www.april15.com.
Article Source: ArticlesBase.com – Understanding The Need For Proper Estate Tax Planning
One Life, Plan It… North Financial
Tax Planning Letters
Question: Why is the Internal Revenue Service spending money on letters?
The Internal Revenue Service is spending $42 Million on letters to alert taxpayers to expect rebate checks as part of the economic stimulus plan. The notices are going out this month to an estimated 130 million households who filed returns for the 2006 tax year, at a cost $41.8 Million. Since this is just a letter and does not include a check, is it really needed?
Answer: Because each government agency is charged with wasting a
certain amount of money each year, and this is the the way the IRS chose to do it.
Have You Received an IRS Letter?