How Much Is Building and How Much Is Land?

How Much Is Building and How Much Is Land?
One of the biggest tax advantages of owning a rental
property is the depreciation you can take on the amount you
paid for the property. Of course, the IRS understands that
land does not wear out. So, only the portion of the
purchase price related to the building and the contents is
subject to the allowance for depreciation. This makes
determining the building/land split a very important
decision. Take for instance a $200,000 home. If you can
justify 10% of the value is for land and 90% is for
building, you can take a depreciation deduction of at least
$6,545 per year. Compare that to the same $200,000 home
with a land value of 30% and a building value of 70%. In
this case, the depreciation deduction is only going to be
$4,580 per year. The result is almost a $2,000 difference
in tax deduction per year.

But how do you determine the value of the land and the
building? There are a few options available. The first
option is to check the county real estate tax bill for the
property. Frequently, county assessors print the estimated
land value and improvements value on the actual tax bill.
These assessed values may be lower than the price of the
property at the time of purchase. So, if you use this
method, you should take the relative values of the land and
the improvements to arrive at the ratio of land value to
total value. Then, you can apply that ratio to your
purchase price to determine the land value for your tax
return.

A second option you can use is comparable sales values
based on appraisals for similar properties in the area.
You can speak to a real estate agent to find out what
appraisers are using for land values in the area.

A third option to determine the split between building and
land is to use an industry standard for the area. This
standard could be anywhere from 80% building and 20% land
in some areas, to 30% building and 70% land in other areas
where land is at a premium - many areas in California and
Hawaii come to mind. Although it is rare for the IRS to
challenge an industry-standard split, in the event of an
IRS challenge, you may be forced to go back to one of the
first two methods.

We find industry standard splits to be the most common
method of allocating the purchase price between land and
building simply because they are so easy to apply. With
recent escalations in the prices of real estate throughout
the country, however, this may be an area the IRS chooses
to examine. We recommend that the industry standard be
viewed as a last resort and encourage everyone to at least
explore the other options simply because they provide good
support for the IRS and they may even provide you with a
more advantageous allocation.

Be sure to review these options with your tax preparer
before they begin preparing your tax return.

----------------------------------------------------
Tom Wheelwright is not only the founder and CEO of
Provision, but he is the creative force behind Provision
Wealth Strategists. In addition to his management
responsibilities, Tom likes to coach clients on wealth,
business, and tax strategies. Along with his frequent
seminars on these strategies, Tom is an adjunct professor
in the Masters of Tax program at Arizona State University.
For more information, visit
http://www.provisionwealth.com.com .

Why Now is the Time to Buy Your Property in France

Why Now is the Time to Buy Your Property in France
If you are thinking of purchasing a property in France then
right now is the best time to do it. There are deals galore
at the moment with vendors in certain parts of France
accepting offers of 10% and sometimes 15% below asking
price meaning there are literally tens of thousands of
pounds to be saved by buying now while your bargaining
power is at its strongest.

This shift in the market can be seen all over France from
Poitou Charentes right through to some areas of the Cote
d'Azur and is especially evident for character village and
countryside homes which are the least in demand from the
local French population and therefore seeing the biggest
price reductions. British and Irish buyers who are
traditionally looking for this type of property are wasting
no time in taking advantage of this lull in the market
before prices kick on once again as they have done in the
previous five years. Other highly sought after areas such
as the popular ski resorts, commercial towns or tourist
hotspots are seeing far smaller price reductions from
vendors as demand is still high and will always attract
buyers.

The reason for this quiet market in France right now is not
easy to boil down to just one variable but two in
particular are likely to have had an effect: Euro interest
rates and large price increase over the last five years.
The Euro base rate of interest is now at 3% after last
month's increase bringing most mortgage interest rates to a
little over 4% p.a. which has taken the pace off the
demand. French buyers are now more cautious and wary of
another increase in interest rates wandering if there is
more of a correction in the market to come after the boom
in property prices in previous years.

New Build/off plan property is performing far better and
developers are having no trouble at all selling their units
and indeed are struggling to keep up with demand for French
residents and foreigners alike. Unlike other countries such
as Spain new developments are not as frequent in France yet
demand by French citizens for new homes which has
historically been far greater than for old homes sees no
sign of changing. This limited supply and excess demand
therefore keeps the new build market strong in France even
in times when market conditions are not at their strongest.

----------------------------------------------------
Nick Dowlatshahi is the Managing Director of Leapfrog
Properties who are a property agency specilaising in
helping the British & Irish buy property in France. Visit
http://www.leapfrog-properties.com to see our vast
selection of French property

Orange County Houses - Learn How To Find Companies That You Can Sell Your Home To

Orange County Houses - Learn How To Find Companies That You Can Sell Your Home To
Do you live in Orange County and you want to sell your
home? If you do then you have a couple of different options
that you can choose from. The best choice and the fastest
way to sell your home would be to find the companies that
say, we buy Orange County houses.

There are many companies in California that put these signs
up. So how do you find the companies that say, we buy
Orange County houses?

There are a couple of different ways that you can find
them. One way to find them is to look at the billboards
that are on the side of roads and interstates.

There are always signs up that say, we buy Orange County
houses. You just need to watch for them and then write down
the information for the company to contact.

Another way that you can sell your home to these companies
is to look in your local paper or phone book. You will be
able to find companies that will buy your home in Orange
County.

You may have to do a little searching unless you already
know where to look to find this information. However, with
a little searching you will be able to find the companies
that will buy your home.

A third way that you can find the companies that say, we
buy Orange County houses, is to go online and do a search
to find them. You can go to any major search engine to
start your search.

This will take you some time but it will be well worth it
when you can sell your home fast. You want to make sure
that you check into more than one company. That way you
will be able to find the company that will give you the
most money for your home.

You can also go to forums that have to do with real estate
in Orange County. You will have to search for forums to
visit but when you find them you can find what companies
others have used to sell their home.

No matter what way you choose to find the companies that
advertise, we buy Orange County houses, you have to take
your time and look at more than one. If you don't then you
will be settling on the price for your home.

You can sell your home for a good price to one of these
companies if you just take the time to find the right one
to sell to.

----------------------------------------------------
James Redmond invites you to visit his best home offer
website if you must sell your house fast. If you are a
private party who must sell your home because of divorce,
bankruptcy or other issues he can help. He specializes in
private party must sell home help including selling high
end homes. Please click here now to learn more:===>
http://www.thebesthomeoffer.com/

When good credit goes bad

When good credit goes bad
By regularly checking your credit report, you're doing a
great job of managing your credit. It's a good way to stay
on top of things. And you know what else is smart? Being
aware of the most common credit pitfalls.

There are four credit "dangers" you should always have on
your radar. If you're not careful, these situations can
sneak up on you and lead to a credit disaster. So let's be
sure you know how to avoid them...

Unpaid bills
This may seem like a no-brainer, but you'd be surprised at
how many people don't realize that unpaid bills can hurt
their credit. If you skip payments on anything from your
mortgage or car loan—to a $25 credit card
payment—your credit score can drop. Even late
payments can negatively affect your score.

The biggest culprit for many people is an unpaid medical
bill. It's easy to see how it happens: you assume your
insurance company is taking care of the bills and they
don't get paid. It's usually a simple mix-up of what your
insurance company does and does not cover.

Unfortunately, this confusion can result in a collections
record on your credit report (and those stay on your report
for at least seven years). So it's important to fully
understand your insurance coverage and make sure your
medical bills are paid. And if a collections account
appears on your credit report due to a mistake, be sure to
work with the parties involved to get the issue resolved.

Identity theft
When someone steals your identity and goes crazy with your
credit—it can mean chaos for your credit report. It
is a real problem these days. But if you know how to
protect your identity, you have a better chance of
protecting your credit.

Are you taking steps to cut down on your risk? You should
start with the following: shred everything with your name
on it before you throw it away...only use your credit card
on websites you know are safe...don't carry your Social
Security card in your wallet...and consider paying your
bills online or with automatic payment (less mail for
thieves to get their hands on).

You should also consider signing up for credit monitoring.
It's an easy way to keep a close eye on any changes to your
credit.

Divorce
After the hassles of going through a divorce, the last
thing you need is to have your credit suffer because your
ex-spouse is racking up credit card bills or missing
payments. So get your credit report and make sure all joint
and co-signed accounts from your marriage are closed or
refinanced as soon as you can.

Judgments
The verdict is in: most judgments such as small claims,
civil suits and tax liens are guilty of tainting your
credit standing. These can remain on your credit report for
seven years or longer. And that can make it harder for you
to get the best interest rates on loans.

You see, credit doesn't have to be scary. The more you
know, the easier it is to stop things from sneaking up on
you.

----------------------------------------------------
TransUnion's TrueCredit empowers consumers to manage their
credit health, providing information on credit-related
issues that range from the significance of a credit report
to identity theft protection. TrueCredit's offerings
include educational materials, free monthly newsletters and
online products, including credit reports, credit and
insurance scores, credit monitoring, debt management tools
and identity theft insurance services.
http://www.truecredit.com/

What type of Credit Report do I need to get a Mortgage?

What type of Credit Report do I need to get a Mortgage?
We all know your credit report is very important in the
decision making process for loans. With the current
tightening up in the lending arena, one might ask yourself
what is required to buy a house in today's market? During
the last 7 years buying a house was fairly easy for just
about everyone. The rates were incredibly low and they
currently still are. Here is what banks are currently
looking for to get you in a house. I will talk about two of
the most popular loans, FHA and Conventional. Most of the
creative financing that has existed over the years is gone;
we are going back to the plain old vanilla loans.

Conventional Loans

Conventional loans are loans that are secured by government
sponsored entities such as Fannie Mae and Freddie Mac. This
type of loan is usually used for the following type of
loans:
a. Purchase
b. Refinance

The current loan limits for conventional loans are
$417,000. This particular loan is riskier for banks and
requires good credit. This type of loan is run through
either Freddie Mac or Fannie Maes automated underwritten
engines. All banks use this software to determine whether
you are approved or not. This loan typically requires a
little money to get into a home, and is for good credit
borrowers. Here are the determining factors from your
credit report that these engines take into account.
1. Your Credit Score
2. Employment history
3. Time on Job
4. Payment history
5. Debt to Income ratio
6. How much savings do you have
7. How much revolving credit do you have and for how long.

FHA

FHA loans are loans that are insured by the Federal Housing
Authority, which is an entity of HUD (Housing Urban and
Development). This loan is less risk to the banks, and has
a lot of benefits when coming to your credit report
history. Here are the benefits.
1. No credit score requirement
2. Low down payment (3%)
3. Easy credit qualifying

Here is what FHA typically looks for to get you into a
house.
1. Clean 12 to 24 month history
2. If you have no credit, FHA will allow alternate lines of
credit, such as:
a. Letters of payment history for the last 12 months in
good standing from the following:
1. Electric Company
2. Water Company
3. Cable Company
4. Day Care
5. Child support history
6. Cell Phone Company

This loan also requires good rental history, you don't have
to have it, but if you have credit issues it's typically
required. When applying for a FHA loan, you probably should
get a current copy of your free credit report and do some
research. FHA is a loan that is less harsh on your credit,
but you need to show at least 3 source of credit reporting
in good standing. Having late payments on your credit
report during the last 12 to 24 months is sure way to get
denied. Get a copy of your free credit report today.

----------------------------------------------------
At http://www.my720fico.com you can get a Free copy of your
credit report with scores. We also provide lots of articles
to help with educating you in regards to your personal
credit.

Honeymoon For Free With Travel Reward Credit Cards

Honeymoon For Free With Travel Reward Credit Cards
All newlywed couples want to celebrate this special time by
going on a great honeymoon. However, such trips can be very
expensive. If you plan to go on a romantic travel
destination, there are some things you can do in advance to
prepare for this special occasion. One ideal preparation
for a honeymoon trip would be to acquire a travel reward
credit card.

A travel reward credit card isn't difficult to have. All
you have to do is fill up an online application and wait
for an approval. Getting an approval is easy especially if
you have a good credit history. Once approved, you can
start earning points to get a free travel.

Of course, travel reward credit cards require higher points
than other reward credit cards because travel expenses are
more expensive. Usually, travel reward credit cards require
its card holder to make purchases from affiliate stores and
establishments in order to get points. However, some credit
cards also give a corresponding point from general
purchases made using the card. These points are converted
into mileage points until the minimum amount is reached
which earns you a free travel ticket.

Aside from earning mileage points, travel reward credit
cards also provide other bonuses such as discounted rates
on hotel accommodations, car rentals and other travel
related expenses. Other perks include a free travel
accident and car rental insurance, as well emergency card
and cash replacement.

When looking for the right travel credit card, you will be
confronted with a lot of choices. It is best if you take
your time on reading each card's complete list of terms and
conditions before signing up for one. Compare which travel
credit card offers the best deals.

Don't forget to consider other fees associated with owning
your credit card. For example, what is the APR? It would be
best if you can find a travel credit card which offers a 0%
introductory APR either on your purchases or balance
transfers or better yet, for both types of spending. When
the introductory rate expires, see to it that the interest
rates remain at a reasonable level.

Also, check out the annual fee for each travel reward
credit card you're considering. Some credit cards require
an unreasonably high annual fee in order to continue
earning mileage points. Remember that you have other
choices so don't settle for that travel credit card if you
think that the annual fee is too much.

Before submitting your online application for the reward
credit card you've chosen, read and study the complete
agreement form and make sure that everything is clear and
understandable.

Once you've acquired your travel reward credit card, begin
putting your wedding expenses on the credit card. Make sure
that you can pay off your monthly balances in full at the
end of the month. So while you are buying much needed items
for your wedding, you are also earning points towards your
honeymoon. Thus, when the time comes that you'll be
claiming your free travel reward, you may enjoy your
honeymoon even more know how much you saved by using your
travel reward points.

----------------------------------------------------
RewardCreditCardSite.com provides consumers with valuable
reviews and information on the best credit card reward
programs. One can get in touch with the team by emailing
them using the online form located at
http://www.rewardcreditcardsite.com/contact/ or you may
email at admin@rewardcreditcardsite.com. For further
information on the features, or offers visit
http://www.rewardcreditcardsite.com

Six Hot Tips For Buying Property In France

Six Hot Tips For Buying Property In France
Buying property in France can be a daunting prospect for
some as the process is so different from the UK or Ireland.
To help you we have compiled six top tips to help you from
your property search right through to viewings and the
final sale. These tips should help you not only be more
efficient and more enjoyable but also give you an
understanding of what your property purchase in France
entails.

1) Spend a few days- its worth it!

If you are serious about your purchase in France then you
have to spend at least a few days if not a week or more in
the area in order to get a really good feel for your
surroundings but also to see enough property in order to
make the trip worthwhile. A longer trip will also stop you
from making rash decisions about a property purchase simply
because you are short on time and desperate to get your
foothold in France. Viewing trips over a long weekend are
often not enough and add to that that agencies are shut on
Sundays are also often on Mondays and it can mean that you
really won't see enough options to be able to make a
sensible decision. The best advice is to spend a good week
to ten days in your chosen location with 5 or six days put
aside for viewings and a further few days to do your own
research if you find something suitable. These extra days
will allow you to send in a local builder to check the
structure of the property and to give you quotes on any
work that is required. It will also give you the chance to
pop into the local mayor's office where you gather
information such as any planning permission granted in the
area so you can see how it might affect your property- if
at all. This is especially important if you plan on asking
for an extension to your property as you will need to get
to know the local authorities quite well and keep them on
your side. If renovating or building new these extra days
can also wisely be spent with a local architect so that he
can give you advice on what can and cannot be done and
possible costs. All these checks are well worth doing
before you return to the UK and ideally before you make an
offer on the property as it will give you a much clearer
idea of what you can do with the property and its value to
you.

2) Don't be afraid to negotiate

Most people are unsure whether they can negotiate in France
and if so how much. The short answer to this is YES and you
can normally negotiate between 5 to 10% off the price
depending on the state of the market. As I write this we
are seeing offers of up to 10% off being accepted by the
vendor because the market in France is currently a bit slow
in certain areas so now is in fact a great time to go
property hunting with great deals to had. Help and advice
when negotiating on price is in fact one of the many areas
where Leapfrog properties can help its clients.

3) Get a survey/structural appraisal

The process of sending in a surveyor to check the structure
of the property and to give you a report as you would
expect in England is extremely uncommon in France. There
are a few French surveyors but most are based in Paris and
focus purely on commercial property. You are therefore left
with 3 choices: do nothing, pick an English surveyor who
has moved to France or do what the French do themselves
which is ask for an appraisal of the property by the local
builder or architect. The last option is most recommended
as it is prudent to get a professional's opinion before you
make an offer whilst the time it takes to get one of the
handful of British surveyors to see your property it could
have already been sold. However if it is more a question of
peace of mind as supposed to bargaining power then you can
sign an initial sales contract subject to a survey being
done by the surveyor of your choice. If the survey comes
back reporting defects to the extent that you do not wish
to go ahead with the purchase then you can withdraw with no
penalty.

4) Don't be afraid of signing the initial sales contract

The "compromis de vente" (initial sales contract) is
designed to protect both the buyer and vendor. If you make
an offer on a property and the agent very soon after asks
you to sign a compromis de vente this isn't because he/she
is a pressure salesman it is simply because that is the way
things are done in France. Once this document is signed by
both the buyer and the vendor there is effectively no more
room for negotiation and the property will be taken off the
market while all the necessary checks are performed by the
appointed notaire. This is in stark contrast to the process
in the UK where an offer can be accepted by a vendor and
then gazumped a few weeks later by someone with a better
offer. In the UK you send in your surveyor after an offer
has been accepted and then following the report you then
have further room for negotiation up until exchange of
contracts. This is not the case in France as you cannot be
gazumped if both signatures are on the sales contract which
is why we recommend you have a few days spare while on your
viewing trip to perform any checks/appraisals. Equally if
you like a property there is no point going back to the UK
before you make an offer as the property is often with 4/5
other agents and could easily be sold, plus the time it
takes for the paperwork and contracts to be signed by both
parties if you are in another country could also allow
another buyer to step in. There is a seven day cooling off
period during which you can pull out of the purchase for
any reason whatsoever without penalty so if it is simply a
question of wanting a bit more time to decide then you are
better off signing the contract to prevent losing the
property and if possible get the vendor's signature on it
at the same time.

5) Get your mortgage agreed before your trip to France

If you require a mortgage your bargaining position and
having a good idea what you can really afford is largely
improved by getting a mortgage agreed in principle before
you leave. This way when you make an offer you really know
if this is over-stretching yourself or not and prevents
disappointment later if your bank then decides that the
risk is too great and they cannot lend you the required
funds. This can not only be frustrating but also waste time
for everyone involved. It is a good idea therefore to go
with a company that has the system already in place to deal
with arranging you a mortgage and answering your questions
on finance. Typical repayment mortgages are currently
around 3.5% and finance for resale properties can easily be
arranged up to 70% while finance for New build/leaseback
properties can often be as high as 95% due to the high
demand and ease of rental of new build properties in France.

6) Use a currency specialist

When sending money from the UK to France there is lots of
money to be made or lost depending on how you do it and
with whom. If you simply ask your high street bank to send
your money to a French bank account in Euros they will not
only charge you a transaction charge but are also likely to
give you rather uncompetitive rates on exchange. You may
also lose money on exchange rate fluctuations adversely
affecting the strength of the pound to the Euro. To avoid
any of these negative affects and charges it is best to use
a currency specialist who not only offers the most
competitive rates on exchange but also doesn't charge
commission on the money sent. They will also offer you the
possibility to buy your currency in advance of the
completion date which is often 3 months after the signing
of the initial contract and much more if buying off plan.
This will ensure that you know exactly how many British
pounds you will be spending up to 2 years in advance
instead of playing the risky currency game which could end
up costing thousands.

----------------------------------------------------
Leapfrog Properties are agents specilasing on Property
sales in France and Niclas Dowlatshahi is the Managing
Director. Visit http://www.leapfrog-properties.com to see
how we can help.

Forex & the Big Mistake

Forex & the Big Mistake
One of the biggest myths in foreign currency trading is
that price is predictable and that for every level that
price has visited, it will revisit that level again.

If you are a regular reader of my articles, you will be
aware that as the result of my trading system support
service, I get asked a lot of questions.

One particular question that I am asked on a fairly regular
basis is - "Do I really need to use a stop loss? After all
price always returns sooner or later doesn't it?"

Well no actually, it does not, but I can see why I am often
asked this question.

Price is very capricious. Price loves nothing better than
to lead us traders into a false sense of security, take all
of our hard won money, and then to smile sweetly over it's
shoulder as it waves us goodbye.

What do I mean by this?

A recent question that I received sets the scene quite
nicely:-

"Why is it necessary to set a stop loss? I have been
setting stop losses as detailed in the trading system, but
I find that sometimes I get stopped out and then price
moves back in the original direction and makes a lot of
pips. Even when price runs against me it nearly always
comes back".

Did you spot the dangerous word in that question?

It is a strange phenomenon that we traders fool ourselves
into believing something to be totally true, when in fact
it may only be true most of the time, and in trading, this
could be a very costly mistake.

Well, if you haven't guessed, the dangerous word was
"nearly".

You see, if price ALWAYS came back, we could - given deep
enough pockets - hold on in there, watching our losses
grow, but certain in the knowledge that sooner or later we
would see those losses reduce and then turn to profit.

This does happen quite often, but quite often is not often
enough because if we are prepared to let our loss run, at
some point the loss will keep on increasing until we are
completely out of funds, at which point we will be forced
(possibly by a margin call) to liquidate our position and
this will likely more than wipe out the other times when we
profited from price making a return to the levels that we
had hoped for.

Price can come back nearly every time, but it only has to
fail to do so once to wipe you out if you do not use a stop
loss.

Setting a stop loss is a very sensible and essential thing
to do.

Setting a stop loss should be an intrinsic part of your
trading method. You should be in the habit of setting your
stop loss on every single trade, at the same time that you
place the trade.

Selecting your stop loss position is something that should
be calculated prior to the placement of your trade, and you
should at that time also consider the amount that you are
about to place at risk in relation to your money management
objectives.

Sure, sometimes you will get stopped out for a small loss
and price will then carry on in the direction that you had
hoped, leaving you on the side lines. On these occassions
you will not gain all of those pips of profit.

In the long run though, setting your stop loss will keep
you in the game, and staying in the game will allow you to
make your profits from the many times when price moves just
the way that you want it to.

----------------------------------------------------
Martin Bottomley is a full time professional forex trader,
acknowledged author, forex tutor and co-developer of forex
trading software including The Amazing Stealth Forex
Trading system.
You will find more information at:
http://www.stealthforex.com