Hide That Car! Fighting the Repo ManWritten by A.M. Harris
Vehicle repossession may appear justified in circumstances where a person is generally being irresponsible and otherwise able to meet this financial obligation. However, what about that hardworking guy or gal who paid their automobile note dutifully for three years, and missed one payment? Why should their car be repossessed? Basically, lender owns your car until it is paid in full. Therefore, one missed payment is considered a breech of your agreement. It gets worse. After they take your car, they can sue you for what is called deficiency. Deficiency is any amount still owed on your contract AFTER your lessor sells your repossessed vehicle at--let's say--an auction. Often they sell car for less than they expected you to pay to get your car back. What do they care if they are going to sue you for difference anyway? I'll explain it this way: Imagine paying $18,000 for a vehicle over time with maybe $5,000 left before car is yours. You lose your job and fall behind a couple of months with payments. Your vehicle gets repossessed. Now you must pay triple amount of two months you were delinquent because of added repossession and storage costs. You cannot come up with money, so your car is sold at an auction for $1,500. The worst part: you are sued for remaining balance of $3,500, plus repo costs! What is point of this? If they are going to sue you for unpaid balance anyway, why not just give you opportunity to pay bill? Wouldn't they come out better in long run? Duh!
| | Increase Your Buying Power With Capital Gains ReinvestmentWritten by Elaine VonCannon
Increase Your Buying Power With Capital Gains Reinvestment When it comes to selling property capital gains reinvestment can be an important strategy for homeowners and commercial and business owners. The Internal Revenue Service requires capital gains tax to be paid on sale of all capital assets, including properties. Once sale occurs tax expense can be enormous, but with a little ingenuity capital gains tax can be avoided and tax burden relieved. The sale of a home or an investment property can facilitate incredible steps forward for anyone in real estate market. Planning, education and consulting experts are keys to increased buying power! Uncover Secret to Real Homeowner Potential The Internal Revenue Service allows gain generated by sale of a home to be excluded from federal tax returns. The homeowner must meet IRS requirements for exclusion. Eligibility for exclusion is based on five-year period prior to sale. If a homeowner has owned property for at least five years and lived in it as a primary residence for at least two years, as much as $250,000 of gain does not have to be reported on yearly tax return. For couples filing jointly, up to $500,000 can be excluded based on eligibility of each spouse. An unknown fact in real estate world is that exclusion can apply to sale of vacation and rental homes if they have been used as a primary residence for two out of last five years. This amount of unreported gain leads to huge savings and greater investment potential. The Hidden Advantage of Tax Exchange In past property exchanges were regarded as highly complex. The current real estate market now agrees that property exchanges are trouble-free, secure and profit producing. Even if a commercial or business property owner sells and then immediately reinvests, capital gains tax must be paid. The Internal Revenue Code Section 1031 allows a taxpayer to exchange property used productively in a trade, business or investment for property of a like-kind. In exchange IRS does not recognize any loss or gain and capital gains tax is deferred. This deferral allows property owners to utilize money originally budgeted to pay government for investment.
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