Dealing With 1031 Tax Exchanges For Real Estate Transactions

By Matttew K. Delaware

The closing of a sale on real estate property involves a number of expenses that may draw off from your proceeds and reflect themselves on the closing statement. Some of these are the standard operating expenses or the ones used for your agent's commission and the recording of the deed. But during the proceedings, additional expenses may also arise like security deposits and rent proration.

These sorts of expenses don't seem to fit on your typical closing statement, and for good reason. Some costs are appropriate to debit off your closing statement during a 1031 exchange transaction, and there are some that most certainly are not.

The property's new owner can have future rent and security deposits via a check taken from your personal account. It may pose some danger to debit these kinds of expenses to the closing statement primarily because in the process, you are taking 'boot' from the transaction's proceeds. In addition, you are freeing an amount from your account that is supposed to be for your own use.

Taking away boot or sale proceeds has caused many investors to be pursued by the IRS for judicial proceeding. Cash benefits or boot from the sale of a property is not part of a like-kind exchange.

You are responsible for all the expenses related to your replacement property particularly those that are not under like-kind exchange. In the course of a 1031 exchange - you also have to take into account fees for loan origination, underwriting, and processing. Payment of these fees has to come from your own property.

The fact of the matter is that the IRS examines these sorts of transactions, and will not look kindly on your receiving non-like-kind proceeds or cash benefits from 1031 transactions. With this in mind, you should be wary and take care regarding what expenses end up on your closing statement. - 23200

About the Author:

Investors in the U.S. can save a lot of money by using 1031 tax exchanges to defer all of their capital gains tax on the sale of investment property. 1031 exchanges are like an interest free loan from the IRS.

Vital Information About Online Stock Trading

By Dr. Asoka Selvarajah

It has taken many years for the evolution of the stock market and was much different in the past. Trading in stocks has gradually developed and is at present a good method of making money if one knows how to trade. The stock market gives investors and traders a wide opportunity to make money through various options like breakout systems, online stock trading, options trading, speculation, hedging and stock swing trading.

It is important to have a proven trading plan and one should not enter into the stock market without having basic knowledge of stock trading. Also, you need to spend considerable amount of time in studying the procedures and policies concerning online stock trading.

It is the opinion of financial experts that you should have confidence in your abilities, be responsible for all of your actions and have a good focus. You should never lose your cool in the sea of traders. It is important to have your own trading approach which could be quite different from that of other traders and remember to always trade with great care and caution.

It is important to realize that in order to make money, you may have to lose a little and learn from it. To minimize your losses, you should train yourself thoroughly first. Make sure that you do thorough research before you do online stock trading, and get advice from professional brokers as to what services they offer, what you can trade, etc.

There are lots of benefits in having an internet connection for online stock trading. Online stock trading deals with buying and selling of shares using computers. If you want to trade, you need to get hold of a reliable broker and open an account with him. You will have to deposit some minimum amount of money into your account and then start trading. Take note that there are "execution only" brokers. They just follow your trade orders and do not give any advice. They are much cheaper than a full-service broker.

Online stock trading is a good way of searching for investment opportunities in the stock market and also creates an investment portfolio. You should have a computer with an internet connection for trading. You should have discipline and a good trading plan. Also having a thorough understanding about money management is a must. In fact, almost all of the traders who fail in the stock market do not have a proper understanding of money management.

Apart from stock trading, is futures or forex suitable for you? Foreign exchange is the biggest financial market all over the world. Moreover, forex markets are open all round the clock.

Finally, it has become easy and inexpensive to enter online stock trading. One should be aware of the risks involved and should note that it is easy to lose all the trading money if one does not have sufficient knowledge of stock markets. Inspite of this, if a person takes sufficient time to study the markets and take a valid trading approach, making huge profits is definitely possible. - 23200

About the Author:

Which Of These 7 Deadly Mistakes of Online Trading Are You Making Right Now? Get Dr. Asoka Selvarajah's critical Free Report, The 7 Deadly Mistakes Of Online Trading and surge your trading profits, starting today. Visit His Online Trading Site (OnlineTradingRebel.Com) Right Now!

Discipline Yourself with Credit Cards

By Rick Amorey

Before you go into online stock market investing, there are a few avenues of investigation that you may find profitable. You'll be able to find information regarding this, which will be helpful to the would-be investor; you can pick up a book at a reputable bookstore, sign up for newsletters, or even go into a seminar to glean good advice. But before you spend for these, try to do research on your own first. Libraries and the Internet are chock-full of helpful information.

And, one thing you should keep in mind is to set down some boundaries before you start to invest. Not like some online stock market investments you may have seen around, investing is not a wonderful and perpetual source of money as implied. I'll tell you this; stocks will generally perform better than any other investments after long periods of time. Bottom line, though, all investments have their own risks at making profit.

Make sure you have taken the time to investigate your own financial situation, before you seek stock market advice. Track where your money is going and how its being spent, apply steps to get rid of credit card debt, and get yourself into a good money situation. But, if you cannot do this, then I'll advice you to refrain from investing in the market for now.

Having a credit card is a good way to measure discipline; if you have credit card debt, then chances are good you won't be able to handle the pressure of owning your own shares. But I'm not discouraging you, though: you may be able to get rid of this weak link in your financial armor, and you'll be able to take on the demands of the stock market.

Think of it like this: owning stock is essentially owning a small part of the company you invested in. If your boss had a substantial credit card debt, would you entrust him with other financial aspects? Probably not. Likewise, you should buy and manage stocks if you are confident in the company's direction. At any rate, you'll have one less thing to worry about without credit card debt. - 23200

About the Author:

The trading business carries no guarantee that you'll profit, and don't let anyone tell you otherwise. Rick Amorey instead suggests the comprehensive program of Emini Trading. Be an educated trader with the help of Emini Trading System, and secure your future at a consistent pace.

Pre-foreclosures - Why Real Estate Gurus Prefer Them

By Clifford Carr

Due to the recent real estate collapse, many people across the United States are losing their homes to foreclosure. The period of time before the official foreclosure is called pre-foreclosure. Depending on the state the pre-foreclosure period lasts from seven days to a 60 days. Real estate experts know that the pre-foreclosure period is a great time to purchase a home.

Many houses that are 'for sale by owner' are houses that are in a period of pre-foreclosure. The lenders sometimes allow the homeowners to try to sell their home before foreclosing it. The banks are not in the real estate business themselves and would rather the owners sell the home instead of (the lenders) having to foreclose it.

Here are some of the reasons many real estate professionals prefer purchasing a pre-foreclosed properties rather then waiting until they reach foreclosure:

- Pre-foreclosed houses are often cheaper considering as it's being sold by a home owner that is in a hurry to sell to avoid facing foreclosure and the bad credit that goes along with it.

- Since you won't be at an auction, you will be given more time to talk to the home owner about any questions you may have concerning the house.

- Typically less competition then at a foreclosure auction. Foreclosures attracts more of the mass real estate market then pre-foreclosures do.

- More time to evaluate financial scenario then at an auctioned property.

- Many people can become more emotionally driven during bidding and pay more then they had intended to.

- You can bring an inspector along with you to inspect a pre-foreclosed home.

- You will be allowed to make a low down payment on a pre-foreclosed house. This is not the case at a foreclosure auction.

Always check to make sure that the pre-foreclosed home you're interested in has no liens or judgements against it. You should also bring along someone to inspect the home for you so you'll know of any problems. The risks in purchasing a pre-foreclosed home are similar to purchasing a home the traditional way, only a lot less expensive. - 23200

About the Author:

See descriptions on the top pre-foreclosure sites to see what they have to offer at government auctions review or go direct to pre-foreclosures

Forex Trading Education - The London Open Checklist

By Michael Jones

Part of your Forex trading education should include a study of the effect market timings can have on trading and volume.

One of the most active periods of the day is from the time the London market opens. Often around that time good trading opportunities will appear.

Around London open time develop recognition skills and add them to your Forex trading education so you can capitalize on this productive market session.

The following questionnaire and checklist will help.

London Open Preparation

Check these points about fifteen minutes to half an hour before the London market opens:

MACD indicators on the 4 hour and 1 hour charts - if they are not going in the same direction exercise great caution!

If there is divergence on the 4 hour, 1 hour or 15 minute charts on the MACD indicator, look for other signs that price may go in the direction of the divergence.

On the 4 hour chart what is the overall trend?

Do a Fibonacci calculation on the last swing high and low and see if price is pulling back to an optimum retracement level or whether it is reaching a key extension level.

Note price in relation to the 200 EMA (Exponential Moving Average) on the 4 hour, 1 hour and 15 minute charts. Is price bucking the trend? In other words, is price above the 200 EMA on the 4 hour and 1 hour chart but below it on the 15 minute? Then be prepared for price to go long at some stage. (Draw the opposite conclusion if price is below the 200 EMA on the 4 hour and 1 hour chart but above it on the 15 minute chart.)

Are any fundamental announcements due?

As the candle closes on the 15 minute chart at London open, do you see any distinctive candle patterns such as tweezers, or doji's or hammers indicating price exhaustion?

What would my risk be and where would I place my stop if I entered a trade right now in a particular direction?

Within a few minutes of London open, if you see a number of factors converging from the analysis above, make a decision one way or the other:

trade

wait for clearer signals or a better entry point

This kind of analysis carried out at the time the London market opens will certainly increase your Forex education and possibly provide you with a number of excellent trading opportunities.

You will be able to fine tune your analytical skills and be in touch with the underlying feel of the market.

Forex trading education does not depend on a magical formula. What it does entail is years of work, study, practice and experience, often hard earned through watching many trades go bad.

At last, the Forex trader learns the mental and emotional skills necessary to remain disciplined at all times - the hardest and most important aspect of Forex trading education.

Practice a procedure like the one above day after day and begin to see some progress as you get nearer the time you make profits consistently from currency trading. - 23200

About the Author:

For a free candle & chart pattern recognition reference tool click here: Candle Trading See how to use trendlines to get an optimum trade entry point: Trendline Break