Death Taxes Could Cost You Your Job

The politicians can have a great time with this one. The left says the rich should pay death taxes to redistribute the wealth. The right says it bad for business. The left responds so what. Both sides play up to their political base and America suffers. My opinion is there should be no tax or fees to transfer an estate to the next generation. Why? Cause it could cost us working folk our jobs. Let me try to explain. It is a fact that most new jobs are created by small business and these business’s are usually privately owned closely held corporations.

Small companies do not have cash. As the business grows it has to invest in buildings, trucks, inventory etc. And yet when dad dies the estate is presented with a bill from the IRS. They call the bill estate or death taxes and it can be thirty percent of everything dad owned at the time of death.For more info visit this link Ustaxnews.com

Death Tax and Conservation Easements

The death tax is a tax many landowners, farmers, ranchers, business owners, and their heirs are faced with at time of death. The death tax, when owed, often forces heirs who inherit land to sell the land they inherit. In such cases, heirs are forced to sell the family farm or ranch to generate money that is needed to pay the taxes due at death. Some landowners consider putting conservation easements on their land. A conservation easement, they may think, will devalue the land and devalue the size of the estate at time of death. This, the landowner hopes, will allow their heirs to keep the family farm or ranch – the family business – in the family for future the next generation and for future generations to come. Therefore, the conservation easement may be a tool that will help the landowner reduce exposure to the death tax.

Conservation easements, some say, help keep land in the family at time of death. Others say this may not be true. In fact, opponents say conservation easements can be risky and go so far to say they are a mistake and they can be a poor financial decision. And other folks aren’t sure what the issues are or what’s may be at stake. A conservation easement can be created by a landowner giving up rights in the land in exchange for tax credits. Real estate includes a bundle of rights. The bundle of rights may vary property to property. And these private property rights can be separated. Property rights may include water rights, air rights, building rights, development rights, and other rights.

Conservation easements are created when the landowner gives up specific rights he or she has and, at the same time, he or she gives up all future owner’s rights in the land – such as the right to build or develop. Or, the right to use his land certain ways. Or, the right to use natural resources on the land, may be given up and lost forever. In exchange for these rights – the landowner may receive income tax credits or breaks toward future income.

Death, Taxes, and Foreclosures

So how do you find the best foreclosures. Its not easy as the business is very competitive, especially in this current crazy real estate boom.  Firstly you must be methodical as well as diverse. Deals are all over the place. It is recommended you specialize in an area that you are familar with. Secondly how do you find inventory?. There are many companies that offer foreclosure lists. You will find them on the web or through a title company. Be careful to locate fresh leads. In other words you need fresh daily leads on Defaulted and Trustee sale properties. If you purchase information that is outdated you may not succeed as the property may sell, be re-instated or refinanced prior to your endeavors to contact the current owner.

Thirdly, defaults, these are loan defaulted properties. The owners of the properties have not paid in 3 months and have been notified that their property could be sold at public auction if they do not re-instate their loan. You are endeavoring to purchase the property prior to Trustee sale. Once you have located a property, made contact with the owner you now need to contact your escrow and/or title company for comparable sales and vesting information. It is important that not only you know what the property is worth BUT more importantly you are going to speak with the OWNER.Vesting will tell you this vital info.

This can be done via mailers, phone calls and the most important,DOOR KNOCK. Meeting the owner is the beginning of the ‘close’. This is where they will begin to trust you. NO TRUST NO DEAL. Your offer must be a combination of price, accommodation, (helping to move them on), empathy, immediate assistance to support their dire needs. You will see the true picture by the DOOR KNOCK’. Fifth. The DEAL. So you have come this far WOW, You have made entry into the house, inspected and the seller likes you and wants to do business, the deal is fair, the docs are ready to sign. You have previously contacted your escrow/title company and/or attorney and they have guaranteed that you have all the right docs ready to be notarized. RIGHT! CONGRATULATIONS your in the real estate foreclosure business.