Lower Your Taxes

Tax incentives for real estate investors can often make the difference in your tax rates. Deductions for rental property can often be used to offset wage income. Tax breaks can often enable investors to turn a loss into a profit.

For which items can investors get tax breaks? You could claim deductions for actual costs you incur for financing, managing and operating the rental property. This includes mortgage interest payments, real estate taxes, insurance, maintenance, repairs, property management fees, travel, advertising, and utilities (assuming the tenant doesn't pay them). These expenses can be subtracted from your adjusted gross income when determining your personal income taxes. Of course, these deductions cannot exceed the amount of real estate income you receive. In addition to deductions for operating costs, you can also receive breaks for depreciation. Buildings naturally deteriorate over time, and these "losses" can be deducted regardless of the actual market value of the property. Because depreciation is a non-cash expense -- you are not actually spending any money -- the tax code can get a bit tricky. For more information about depreciation and various tax alternatives, ask your tax advisor about Section 1031 of the U.S. Tax Code.

Have a Positive Cash Flow

There are two kinds of positive cash flows: pre-tax and after-tax. A pre-tax positive cash flow occurs when income received is greater than expenses incurred. This sort of situation is difficult to find, but they are usually a strong and safe investment. An after-tax positive cash flow may have expenses that outweigh collected income, but various tax breaks allow for a positive cash flow. This is more common, but it is generally not as strong or safe as a pre-tax positive cash flow. Regardless of what kind of real estate you choose to invest in, timely collections from your tenants is absolutely necessary. A positive cash flow -- whether it be pre-tax or after-tax -- requires rental income. Be sure to find quality tenants; a thorough credit and employment check is probably a good idea.

Use Leverage

One of the most important factors in determining a solid investment is the amount of equity you are purchasing. Equity is the difference between the actual worth of the property and the balanced owed on the mortgage.

Benefit from Growing Equity

While investing in real estate is relatively complex, it is often worth the extra work. When compared to other financial investments, like bonds or CD's, the return on investment for real estate purchases can often be greater.

The key to real estate investing is equity. Determine an amount of equity that you want to achieve. When you reach your goal, it's time to sell or refinance. Determining the proper amount of equity may require the assistance of a real estate professional.

¶ 11:03 PM 0 comments

Pops first set the goal in high school, but when he graduated he thought he wasnt mature enough to pursue it so he enlisted in the U.S. Army.

He dreamed about it as a member of the 82nd Airborne as he became an Army Ranger. Later, in the first Gulf War, he thought about his goal again, as he also did during his service in the Kosovo conflict. For 20 years, through his Army career, a war, marriage and six children, Pops kept the dream and the goal alive.

Never mind that he was considered far too old to pursue his dream, Pops just couldnt let go.

When he retired from the Army at 39, he decided it was finally time to do something about the goal hed set so many years before. He moved his family to Columbia, South Carolina and enrolled as a freshman at the University of South Carolina.

No, he wasnt considered too old for that. Many others, much older, have pursued college degrees for the first time. What Tim Pops Frisby did was even more special. At an age when even most professional players have hung up there helmets, he began working out with the South Carolina Gamecocks football team during the winter. Working out with players half his age, all of whom were young enough to be his son, he competed for a position on a Division One major College Football Team.

It was a goal that Pops had lived with for a long time and he began to realize it when coaches invited him back for fall drills. When South Carolina kicked off their season against the University of Georgia, Tim Frisby was on the sidelines wearing Gamecock jersey number 89. On September 25th, against Troy, the legendary Lou Holtz, head coach at South Carolina, sent Pops into the game for its final four plays. I have a lot of respect for the guy, Holtz said. A Ranger, 20 years in the Army, six kids. He loves this team. I thought it would be good to get him in. Im sorry we could not throw it to him. But knowing the way that Pops Frisby makes his dreams come true, thats just a matter of time.

Frisby, who turns 40 in February, has been featured on ESPNs College GameDay. ABCs Good Morning America, CNN, the New York Times and the Los Angeles Times are all planning stories.

Incidentally, the father of six between the ages of six months and 16, also maintains a 3.88 (out of a possible 4.0) grade point average.

Still think its too late for your dream? Goal setting and goal starting is a process that can start at any age and at any time. Theres no need to wait until January 1st to set or start a goal. Goal setting and goal starting doesnt have to take place at the first of the month, or even the first of the week. I once started on a big goal at midnight on the 24th of the month.

Tim Frisby accomplished his goal and realized his dream for two simple reasons: he never let time take his dream away, and when the time finally came, he took action. It worked for Pops -- and itll work for you too!

2004 Vic Johnson

¶ 7:39 PM 0 comments

Chairs crafted by Thomas Chippendale were dazzling examples of quality furniture in their day. Today, they remain extraordinary examples of antique furniture. Chippendale style, ball and claw and ladder backs, theres lots to know. Heres your guide to one of the worlds most celebrated chairs.

Who is He.

Thomas Chippendale (1714-1779) was an English furniture maker in the mid 18th century whose work was influenced by English, French and Chinese furniture design.

A Book Made Him a Household Name.

In 1754, Thomas Chippendale published the first of three editions of his book, Gentleman and Cabinet-Makers Director. It put him on the map. This illustrated directory showed examples of the furniture that Thomas Chippendale could make for his customers. Wealthy clients could see illustrated examples, pick out the designs that they liked which would be handcrafted in his workshop. At the time, Thomas Chippendale probably didnt expect that this book would become so widely copied for so many years by other furniture makers. It continues to be used today.

A Claim to Fame.

Thomas Chippendale was the first non-reigning monarch to have a furniture style named after him. Before Thomas Chippendale, furniture styles were named after reigning Monarchs such as Louis XIV, George I, Queen Anne.

Chippendale versus Chippendale Style.

Anything made by Thomas Chippendales workshop in England is a Chippendale. Furniture made incorporating the features used by Thomas Chippendale is Chippendale-style. American Chippendale refers to Chippendale style furniture that was made in the US mostly in Philadelphia.

Chippendale Style Particulars.

The style reflected elements of the Rococo, Chinese, Gothic and Noeclassical styles. Deep hand carving was prevalent. Common motifs were of shells, lions, masques, eggs, darts and scrolls.

Favorite Wood.

Mahogany was preferred choice of wood for Chippendale style furniture. Solid wood; not veneers was often used because of the detailed carving involved.

A Lesson in Legs.

There are six basic style lions paw, ball and claw, the late Chippendale, the Marlborough, the club and the spade. Early Chippendale furniture used the cabriole leg which is a serpentine style ending with a lions paw, ball and claw or the club. The late Chippendale, Marlborough and spade were straight legs and appeared later in the period.

Seat Selection.

Chippendale style chairs were wood, upholstered or caned.

Chair Back Choice.

Upholstered, rail backs, ladder backs, rung back, splat backs, carved backs, ribband backs. The chair backs are one of the most definitive parts of the chair that typify the style. Ribband backs are carved to look like bow. Very few were made in the 18th century because it required expert craftsmen and was very time-consuming. And very few survived passed the 18th C. Most ribband back chairs around today were made in the 19th and 20th centuries.

What to Look for When Buying.

Look for original condition. Repairs and replacement lower the value. Actual pieces from Thomas Chippendales workshop are rare indeed. Make sure the provenance is strong documented when a dealer says it is a Thomas Chippendale versus a Chippendale style chair. Keep in mind that very few ribband back chairs survived from the 18th century. Be wary when someone tells you that they have one.

Reproductions Versus Antiques.

You can tell modern reproductions from the real thing by looking closely at the carving. Is it uniform in depth and symmetrical? If so, its a modern reproduction. Antique Chippendales would be hand carved which is irregular in depth and never exactly symmetrical because its virtually impossible for even a master artisan to achieve it.

Pricing.

Any Chippendale 18th century chair whether it was made by Thomas Chippendale himself or one of his contemporaries will cost several thousands of dollars. If its not in that price range, its most likely not 18th century. Even high quality modern reproductions can be pricey.

¶ 4:17 PM 0 comments

I grew up in the muscle car era of the 1960's and early 1970's, where there was enough time to still influence me before the gas crisis of $1 per gallon gas. These teen years left a lasting impression from that point on where a car must have big V8, loud rumbling exhaust, and big tires, otherwise it did not get a second glance. It was the power hungry performance cars from Detroit's Big Three. The Mustang, the Camaro, the Firebird as well as the Chevelles, and Chargers to just name a few that you could hear coming a mile before they arrived. They got my attention! Over the years as I've traveled around to car shows my appreciation for the automobile expanded. The common thread that intrigued me about all of the car owners was, the pride they took in their vehicle, but what was I missing? Many of these cars did not meet my criteria of a big V8, loud rumbling exhaust, and big tires, so what's the big deal? The intent of this article is to open your mind and recognize the elegance, grace, and styling of cars before you were born, to the present.

It seems that many automotive enthusiasts have at one time encountered a similar dilemma. There are the Mustang specific clubs, the Ford Model A clubs, even the Orange Colored Car club. Everyone has they primary interests, but if you look beyond this, you can see the elegance, style, and beauty that was finely crafted by the automotive artists. Imagine looking through the viewfinder on a camera as you focus on composing the perfect image. With your naked eye, many of the details may not initially jump out. However, when you see the image as the camera does, you notice the shadows, the lighting, and the elements of the vehicle that appear to be magnified and stand out. This focusing forces you to not only look complete vehicle, but down to the individual details that make it up. These details are the core elements of that the artist creates. Like each stroke of the brush, each curve in the chrome makes up the masterpiece.

You do not have to look far to see what I am talking about. Look at a 1958 Chevrolet Belair with its massive grille, large amounts of chrome and the intricacy of the trim accent pieces all flowing together like a sculpture. Unless you pay attention to even the most minuet areas you will not see the entire masterpiece. A person once told me that when he didn't win people choice awards, his wife would say, "Did A Red Car Win?" This statement has some truth. I have seen that if there were two almost identical cars, the red or brightly colored one usually faired better even if it was not in as good of condition. The point I am trying to make is first impression is exactly that, first impression. Whereas, a seasoned judge, goes to the next level looking at the quality of the paint, and in concours judging down to the finish on the bolts. Within this spectrum is where the real artistic nature is.

I recently did some photography and show board work on a 1957 Ford Fairlane 500 that I initially seen at a local car show. When I first seen this car what stood out was its massive size, and the glistening shine of the perfect black paint. This was my first impression as it caught my attention. After talking with the owner, Joe, and learning more about his car, the real beauty of this classic vehicle was evident. You could almost see the air flowing along the sleek and graceful body lines as the 30 spokes of each wheel reflected like mirrors. It was obvious that he was focused on a perfect display, ensuring that there was a blinding shine on the chrome and paint, and every component, even the underside was perfect. One could only imagine the many hours and years spent getting to this level of perfection.

The next time you see one of these classics driving down the road, or at a car show try to vision what the automobile artists has in mind. To get a jump start on seeing these classics there is a nice selection of pictures showing exactly what I have talked about at www.PalmieriConcepts.com. The information and pictures on this site will give you many examples of these classics as well as alternative ways of composing your pictures into works of art. Palmieri Concepts focuses on transforming your everyday pictures into custom art, and as a result, attention to detail is key.

¶ 12:58 AM 0 comments