Shining Some Light on Solar Power

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Solar Power

Undoubtedly, solar energy is the method of the future. Solar power production is a very simple procedure to recognize. A solar, or photovoltaic, cell accumulates energy from the Sunlight. A solar battery is a semiconductor gadget that is constructed utilizing photovoltaic materials. It has no chemicals or fluids, and also no moving components. Solar battery transform sunshine right into electricity.

A photovoltaic panel typically includes a collection of individual cells, which are supported by a component that permits the cells to work in unison. The power that is caught by the panel is kept in an electric battery. Photovoltaic panel produce direct current (DC) power. Lots of solar power systems have inverters in them which permit direct current (DC) electrical energy to be converted to rotating existing (Air Conditioning). A lot of customer products such as electronic devices and home appliances operate Air Conditioning present.

solar powerUnless you have a vast expanse of land to house an array of solar panels, it is not likely that you will certainly have the ability to power your entire residence with solar power. However, it is feasible to power a solitary area in your house with a little variety of panels taken care of to the roof of your house. Increase the power level of each specific electric device by the number of hours you expect to utilize them every day. That consolidated number will be your benchmark, or the bare minimum your system have to be able to produce.

Solar Power Options

There are a variety of options offered to customers that are taking into consideration transforming to solar energy. A fundamental system that can be made use of to power a computer as well as a few other small items could be acquired for around $1000.00. Normally, the price will certainly increase with the production capacity of your system. In the majority of regions, the cost of an installed system will certainly set you back someplace in the area of $10.00-$12.00 each watt.

Solar energy is just one of a couple of absolutely sustainable resources that can be used in energy and power generation. Every hour of each day, the Sun coverings our earth with enough energy to maintain our worldwide power requires for a year. As the innovation behind photovoltaic power advancements, customers will be unable to withstand need to convert.

A lot of resources are being put into the advancement of solar energy modern technology. Most of the significant oil as well as power firms have whole departments dedicated to solar power. Researchers as well as designers are spending many hours attempting to create the innovation today that will greatly improve disorders around the world tomorrow. It is obvious that we could not continue down the path we are on. Fossil fuels are no more a viable choice for energy production. The future is solar. The future is now.

1031 Exchange Questions

1031 Exchange

Tens of thousands of successful 1031 exchanges have been conducted and we found that there are a number of frequently asked questions related to this type of transaction.

Equity and Gain

Is my tax based on my equity or my taxable gain?

Tax is calculated upon the taxable gain. Gain and equity are two separate and distinct items. To determine your gain, identify your original purchase price, deduct any depreciation which has been previously reported, then add the value of any improvements which have been made to the property. The resulting figure will reflect your cost or tax basis. Your gain is then calculated by subtracting the cost basis from the net sales price.

Deferring All Gain

Is there a simple rule for structuring an exchange where all the taxable gain will be deferred?

Yes, the gain will be totally deferred if you:.

1) Purchase a replacement property which is equal to or greater in value than the net selling price of your relinquished (exchange) property, and.
2) Move all equity from one property to the other.

Definition of Like-Kind

What are the rules regarding the exchange of like-kind properties? May I exchange a vacant parcel of land for an improved property or a rental house for a multiple-unit building?

Yes, “like-kind” refers more to the type of investment than to the type of property. Think in terms of investment real estate for investment real estate, business assets for business assets, etc

Simultaneous Exchange Pitfalls

Is it possible to complete a simultaneous exchange without an intermediary or an exchange agreement?

While it may be possible, it may not be wise. With the Safe Harbor addition of qualified intermediaries in the Treasury Regulations and the recent adoption of good funds laws in several states, it is very difficult to close a simultaneous exchange without the benefit of either an intermediary or exchange agreement. Since two closing entities can not hold the same exchange funds on the same day, serious constructive receipt and other legal issues arise for the Exchangor attempting such a simultaneous transaction. The addition of the intermediary Safe Harbor was an effort to abate the practice of attempting these marginal transactions. It is the view of most tax professionals that an exchange completed without an intermediary or an exchange agreement will not qualify for deferred gain treatment. And if already completed, the transaction would not pass an IRS examination due to constructive receipt and structural exchange discrepancies. The investment in a qualified intermediary is insignificant in comparison to the tax risk associated with attempting an exchange, which could be easily disqualified.

Property Conversion

How long must I wait before I can convert an investment property into my personal residence?

A few years ago the Internal Revenue Service proposed a one-year holding period before investment property could be converted, sold or transferred. Congress never adopted this proposal, so therefore no definitive holding period exists currently. However, this should not be interpreted as an unwritten approval to convert investment property at any time. Because the one-year period clearly reflects the intent of the IRS, most tax practitioners advise their clients to hold property at least one year before converting it into a personal residence.

Remember, intent is very important. It should be your intention at the time of acquisition to hold the property for its productive use in a trade or business or for its investment potential.

Involuntary Conversion

What if my property was involuntarily converted by a disaster or I was required to sell due to an eminent or governmental domain action?

Involuntary conversion is addressed within Section 1033 of the Internal Revenue Code. If your property is converted involuntarily, the time frame for reinvestment is extended to 24 months from the end of the tax year in which the property was converted. You may also apply for a 12-month reinvestment extension.

Intermediaries and facilitators

Is there a difference between facilitators?

Most definitely. As in any professional discipline, the capability of facilitators will vary based upon their exchange knowledge, experience and real estate and/or tax familiarity.

Fees and facilitators

Should fees be a factor in selecting a facilitator?

Yes. However, they should be considered only after first determining each facilitator’s ability to complete a qualifying transaction. This can be accomplished by researching their reputation, knowledge and level of experience.

Personal Residence Exchanges

Do the exchange rules differ between investment properties and personal residences? If I sell my personal residence, what is the time frame in which I must reinvest in another home and what must I spend on the new residence to defer gain taxes?

The rules for personal residence rollovers were formerly found in Section 1034 of the Internal Revenue Code. You may remember that those rules dictated that you had to reinvest the proceeds from the sale of your personal residence within 24 months before or after the sale, and you had to acquire a property which reflected a value equal to or greater than the value of the residence sold. These rules were discontinued with the passage of the 1997 Tax Reform Act. Currently, if a personal residence is sold, provided that residence was occupied by the taxpayer for at least two of the last five years, up to $250,000 (single) and $500,000 (married) of capital gain is exempt from taxation.

Exchanging and Improvements

May I exchange my equity in an investment property and use the proceeds to complete an improvement on a vacant lot I currently own?

Although the attempt to move equity from one investment property to another is a key element of tax deferred exchanging, you may not exchange into property you already own.

Related Parties

May I exchange into a property that is being sold by a relative?

Yes. However, any exchange between related parties requires a two-year holding period for both parties.

Partnership or Partial Interests

If I am an owner of investment property in conjunction with others, may I exchange only my partial interest in the property?

Yes. Partial interests qualify for exchanging within the scope of Section 1031. However, if your interest is not in the property but actually an interest in the partnership which owns the property, your exchange would not qualify. This is because partnership interests are excepted from Section 1031. But don’t be confused! That would qualify if the entire partnership desired to stay together and exchange their property for a replacement.

Another caveat. Those groups or individuals owning partnership interests, who desire to complete an exchange and have for tax purposes made an election under IRC Section 761(a), can qualify for deferred gain treatment under Section 1031. This can be a tricky issue! See elsewhere in this publication for more information. Then, only undertake this election with proper tax counsel and only with the election by all partners!

Reverse Exchanges

Are reverse exchanges considered legal?

Although reverse exchanges were deliberately omitted from Section 1031, they can still be accomplished with the aid of an experienced intermediary. Since reverses are considered an aggressive form of exchanging, your intermediary and tax advisor should assist you with exchange and tax planning based upon successful reverse exchange case law.

The Taxation Section of the American Bar Association has submitted suggested guidelines for the IRS in evaluating reverse exchanges and issuing new regulations. Although it is unknown when the IRS will make a definitive reverse exchange ruling, one is expected in the future.

Identification

Why are the identification rules so time restrictive? Is there any flexibility within them?

The current identification rules represent a compromise which was proposed by the IRS and adopted in 1984. Prior to that time there were no time-related guidelines. The current 45-day provision was created to eliminate questions about the time period for identification and there is absolutely no flexibility written into the rule and no extensions are available.

In a delayed exchange, is there any limit to property value when identifying by using the 200 % rule?

Yes. Although you may identify any three properties of any value under the three property rule, when using the 200 % rule there is a restriction. It is when identifying four or more properties, the total aggregate value of the properties identified must not exceed more than 200 % of the value of the relinquished property.

An additional exception exists for those whose identification does not qualify under the three property or two hundred percent rules. The 95 % exception allows the identification of any number of properties, provided the total aggregate value of the properties acquired totals at least 95 % of the properties identified.

Should identifications be made to the intermediary or to an attorney or escrow or title company?

Identifications may be made to any party listed above. However, many times the escrow holder is not equipped to receive your identification if they have not yet opened an escrow. Therefore it is easier and safer to identify through the intermediary, provided the identification is postmarked or received within the 45-day identification period.

What Is A 1031 Exchange

house swap1031 Exchange Basics

Many people who sell an investment property believe that federal capital gains from that sale must always be handed over to the IRS. This is not always the case. IRS Code Section 1031 offers investors the opportunity to reinvest federal capital gains from a sale if you swap that property for another and it does not always have to be for like property either! Instead, as an investor, you could have that money work for you rather than end up in the hands of the IRS. Further, you do not have to sell your property for the exact same type of property either!

The 1031 Code indicates that no gains or losses will be recognized on the exchange of any type of business use or investment property for any other business use or investment property.

So what does this mean? What is a 1031 exchange?  How can this help you?

If you own a business or an investment property you should consider a 1031 exchange. You would be able to defer 100 % of both federal and state capital gains tax. 1031 Exchanges in essence become interest free loans; where the principal may increase through future exchanges allowing the Exchanger to never pay back, if the transactions are planned well. Along with the guidance of an experienced realtor, www.michaeltrustrealty.com this can be one of the most profitable ventures you will ever enter into.

Are you apprehensive about the 1031 Exchanges? Here are some interesting facts, which will make the decision easier.

1) At one time, exchanges were only done to switch like investment properties to the same person swapping for your own, but this is not the case anymore. In fact, you can sell your own property to someone who does not have a relationship to the person from whom they are purchasing the replacement property.

2) It is important to know that like-properties once met the same, condo for condo, empty lot for empty lot but that is also no longer the case. If you have invested your money in an empty lot but wish to exchange for an apartment building, this too is possible and again, no taxes would be paid for the sale of the vacant land when following the guidelines of the 1031 exchange. In fact, the owner of the empty lot can even sell that one lot and then purchase several others or just buy one and then sell others. Note, 1031 Exchanges only apply to investment properties and not residences.

3) Many believe only investors of large commercial properties can utilize a 1031. One of the greatest features about a 1031 Exchange is that it applies to all investment properties, very small and large. 1031 Exchange works the same way for a corporation selling a large shopping mall as it would for an individual selling a single-family property used for rental or held for investment in a resort area.

4) Many believe 1031 Exchanges are very complicated and not worth investigating. Consider working with a qualified Realtor ® who can offer you professional advice and direction. 1031 Exchanges is a relatively smooth process and definitely worth considering but sound advice from an experienced Realtor ® is the key to profitability.

5) The Exchanger can acquire a replacement property with greater income potential. For example, raw land can be sold to acquire income-producing property or a larger or more ideally located property. A duplex rental property can be exchanged for a 4-family investment property offering greater income.

Should you wish to increase your buying flow due to greater cash flow, exchange investment or rental property for that with a greater income, acquire investment property that is easier to finance, or should you have the need to relocate or the desire to increase your current business or investment space for a larger area, the 1031 Exchange can accomplish any or all of these goals.

Because a Realtor ® is generally not licensed nor qualified to provide legal and/or tax advice, the above statements should be verified with your own competent tax and/or legal advisor who has specific infomration about your particular situation. You should only rely on your own competent tax and/or legal advisor’s advice. Nothing noted above is tax and/or legal advice. The above information is general in nature and is for general informational purposes only.  Do your research on the 1031 exchange.

What is Spyware

internet securityInternet Security

The Internet is a dangerous place for people as well as computer systems. Every day there is a new threat that seeks to do harm to your computer, your network and the information contained within your devices.

Many people believe that they are protected because they have anti-virus protection. Sadly, this is not the case. There are many threats that your anti-virus software will not protect you against. If you are surfing the Internet with just anti-virus protection then you may already have malicious programs running in your computer background, unknown to you and doing irreparable harm.

Spyware Definition

These programs are more commonly referred to as spyware. Spyware is similar in nature to a computer virus in that they both affect and infiltrate system resources and often times both are hard to detect. The main reason that anti-virus does not protect against such threats is because spyware does not appear to be malicious. Often times spyware is disguised as something as harmless as a computer cookie. Once it is logged into your system a whole host of problems can occur.

By its very name, spyware is used to spy on your computer system. This gives whoever created the code a chance to access all of the confidential data that is stored on your hard drive, like passwords, financial data, and personal identification items. Hackers can also use spyware to hijack your computer system and use your accounts for illegal activities such as sending spam mails from your email account, or worse-stealing credit card information. Because your anti-virus protection software was never meant to catch this new kind of code, of course this is all happening right under your nose.

People often ask how they can avoid getting spyware. The simple answer is there is no way to keep from getting spyware, absent setting your browser security options to a very high level, but there is a way to remove it from your system before it does any damage.

You will need to purchase and use spyware removal software. This is the only effective method to protect yourself and your computer from the malicious content that is found on the web. A spyware removal program acts as a sweeper, and ultimately a protector by destroying the spyware code found on your drives. It is as simple as that.

The best course of action that one should take is to run the spyware removal software after each session on the web, or weekly if that is to much of a burden. There is no way to avoid all of the potential threats that are on the net these days. Even if you visit only reputable sites that you have visited before you still run a high risk of getting spyware. Most often, a webmaster has no idea that his site is being used to distribute spyware. Producers of the spyware code are getting smarter everyday, and they’re learning to cover their tracks well.

The only way to protect yourself is with this knowledge and a consistently practicing due diligence. , if you need the very best in security tools check out Securityze.com or like the page at https://www.facebook.com/pages/Securityze/192785367432732.. Here you will join a security minded community and be provided with the best security information and programs that is currently available on the market, hands down.  I have listed some of the best anti-spyware programs to do.  Remember this list is constantly changing as some tools improve and others lose effectiveness.