Selling Your Investment Property in 2010 Could Save You Thousands in Taxes

If you are an investor looking to sell one or more of your real estate holdings, you might want to consider completing the sales transaction in the next year. At the end of 2010, tax cuts put in place by President Bush will be reset to standard income tax rates and you will lose your opportunity to take advantage of the lower rates.

As an investor looking to sell a house fast, you are most likely already familiar with capital gains taxes, but most home buyers are not. Therefore, the decision to buy houses in PA is not made because of the capital gains tax reductions that you, the seller, will get if the property sells before the end of 2010.

The current capital gains tax rate is actually a two-fold calculation. If you are selling a property for which you have claimed depreciation, then you must be aware of the total amount of the depreciation claimed. Many investment home buyers bought properties as part of a we buy houses type program and want to sell the house now. In that case, the capital gains tax rate will be 10%.

On the other hand, if you have claimed depreciation be aware that when you find a home buyer, you will be taxed at 25% for the amount that you claimed in depreciation when you sell your house now. The advantage of selling is still in your favor however, since the remaining sales revenue will be taxed at the lower 10% rate.

This advantage means that you will keep more of the profits when you sell your house now, instead of waiting until after the end of 2011. Whether you pay just the lower amount of capital gains tax, or you split the percentage rate, you will still likely earn more from the sale in the next year than at any point in the future.

The market is definitely leaning toward sellers right now, because there are many individual home buyers in Philadelphia and investors looking to buy houses in PA. They are looking for deals, and although the idea of selling at a lower price does not always seem appealing in comparison to waiting a year or so to sell, today it is not a bad idea to sell a house fast for a lower price. This is because even at a lower selling price, your property is going to bring you larges profits than if you wait a year and sell for a significantly higher price.

Keep this information in mind as you make decisions regarding your real estate investments, particularly if you are already planning to sell in the near future. There hasn’t been a better market for home buyers in years, and fortunately for the investor, prices are higher than they were over the last few years and there is a significant profit to be made by selling in the next year.

A Small Business Can Mean Big Returns With No Employees

Small business can, in reality be more cash flow positive than many large businesses and a lot less hassle. This article is a review of a marketing system that is new to one MLM Co. and we will see how its elements address the common problems that affect all start up businesses.

Lets have a look at the 3 concerns that confront all business and see what their System will do to answer them.

1. How soon will I recoup my initial investment, cover expenses and break even?
2. How soon will the business be cash flow positive so that I am no longer subsidizing from my own pocket?
3. How soon will the business become stable and predictable enough to provide me with a sustainable residual long-term income?

I want you to indulge me here as I show you how simple this type of self employment or small business idea is and why it can empower many to achieve so much more.

I’m assuming the small business for this example is an MLM or Network Marketing business. Lets see how our ‘Co.XYZ’ stacks up with the competition. Question 1 is how soon do you get your money back? Lets say you join up for $550 (US figures) and then you find 3 people within 30 days to join up too. Under the ‘XYZ’s’ System you get all your money back and you also get all your products free (over $500 worth). If your 3 people do the same and join up 3 each they will get all their money back and their product free also. So the answer to question 1 is, within 30 days or so depending how readily that can be done.

Now that we know the 1st answer perhaps we should explain the Systems 3 rules of business before we go on.

Rule 1. Never use your own money to fund your business expenses. Rule 2. Convert your life to the products you sell (that’s not tough by the way – in fact its luxurious) and always get your products free.

Rule 3. Never use your residual income to fund your business.

So how do we use these rules to build our business?

Question 2 is How soon will it be cash flow positive and not need subsidizing from my pocket

There are several ways to earn more than you are required to purchase each month (about $130 say). Lets say you find 1 person who wants in, that will meet your monthly expense. So all your product next month is free too. Providing you do something pro-active each month (and there are 6 options here) you should never have to reach into your pocket to pay for your own product.

Question 3 is How soon will the business become stable and predictable enough to provide a stable long term income?.

There is an easy way to see this using a software simulation. But I think you might be able to see that if each person is encouraged to find 3 others to get their product free then there is a motivation there as the products are very desirable too.

The above small business ideas are well known in traditional business but are in fact very new to MLM and are a further refinement of the business model that has been developing for over 50 years. Are these figures transferable to all Network Marketing companies? Probably not, but the System is available now and I am very excited to be in business at a time when it is here. It has never been so business like and creditable a business model than it is right now. I should also point out that Dr Stephen Covey, world famous author of “The 7 Habits of Highly Effective People”, has reviewed the System and giving it his ringing endorsement.

You might wonder if you could sign up someone every month for ever. You might soon run out of friends but there is a way called ‘attraction marketing’ that works via the internet to find people who are looking for a small business too. This is another new and exciting industry development.

So is the above System a chance for self employment? Is it a credible home business? I would submit that it is one of the best ways for a large proportion of people to be independent and able to work from home at a lucrative small business.

Investing in Crude Oil Futures – Have I Missed the Boat?

Nowadays, the ability to profit from energy futures and options is a valuable one. Even amidst the so-called Great Recession, majority of the world’s countries utilize crude oil and its by-products and, hence, profits in crude oil futures speculation will never dry up, so to speak. Of course, losses are inevitable, too, since investors and traders must go head to head on betting on the outcome of oil prices.

So, what exactly is a crude oil futures option? Basically, it is the right though not the obligation to call (buy, in layman’s terms) or put (sell, in layman’s terms) a thousand barrels of crude for a strike price (a certain price determined by the market) by an expiration date.

Take note than a premium must be paid by the buyer for this right although said premium is exclusive of commissions and other related fees. Also, the premium, commissions and fees represent the maximum risk of capital loss the option buyer may sustain in the transaction.

In said transaction, the option buyer hopes for the price of a crude oil future to sufficiently increase before the expiration date so that it can be sold for profit. However, a loss can also be sustained if and when said crude futures drops in price anytime before the expiration period.

Let’s take a hypothetical example between John, a buyer, and Jane, a seller. Let’s also assume that the current date is the 15th of January 2009 and the contract price for 1000 barrels of oil is $100. John believes that the price of crude oil will increase in two months’ time and Jane believes that it will fall in the same period.

John will enter his buy order for a single March oil futures contract at $100 with his broker while Jane will enter her sell order for the same futures also at $100. Both orders will then be routed to the crude oil futures exchange for pairing and execution, thus, obligating both John and Jane to the terms of the contract. Of course, the term “obligating” is used very loosely as indeed there is no obligation, just the right to call or put, as previously mentioned.

It must be emphasized that neither parties are obligated to wait until the expiration period to take the next step in the transaction. Thus, if oil prices rise to $110 in a week and John is willing to liquidate the contract at the point, he will profit by $10 per 1000 barrels. Jane can continue to hold her position until the expiration date, of which her profit and loss will be determined by the rise and fall of crude oil prices.

There are many factors that affect crude oil and, hence, crude oil futures contracts. The present information on crude oil and natural gas supply levels is weighed against past expectations and future forecasts, which then manifests as the degree of price volatility of the market.

Keep in mind, too, that oil futures trading may be a profitable investment venture but it is also very risky. Thus, not all investors are suited for it especially as buying options can and will wipe out the total amount invested.