PAYING IRS NOTICES

Paying IRS notices.  Always specify on the check what tax you are paying.  Pitfall:  The IRS can apply payments that are not described to any outstanding tax liability that you may have, or that you may not be aware of.  The result can be having to pay penalties and interest on a tax that you thought you had paid.


INCOME PRODUCING REAL ESTATE

Income producing real estate.  Depending upon your tax situation you will get a deduction for your rental expenses, including interest and property taxes.  If you have positive cash flow from the property, a portion of that income will be sheltered from tax by your depreciation deduction.

Benefits:  You receive tax sheltered income with the likelihood of capital gains should the property appreciate in value.