Free Essays on Real Property Investment

Why do people use real property investment? Investment in property is most important investment instrument in Australia, as you know the richest 200 people ¡Ã‚ ¯s wealth is based on the real property. Although property must be viewed as an illiquid investment because the transfer costs of properties are high and the selling period averages several months, according to steady profit return and low risk, many people buy in property to against currency inflation, and to compensate increasing life expense contrasted to decreasing social security after retirement. How does it work? Negative gearing Gearing basically means borrowing to invest. An investment property that's negatively geared is purchased with a loan that has an annual net rental income amount that is less than the annual interest paid on the loan, plus the deductible expenses associated with maintaining the property. You get tax benefits by being negatively geared as you are able to deduct the costs of owning an investment property from your overall income. The biggest part of this deduction is the interest portion of your mortgage, but you can also claim such expenses as property management fees, loan costs and repairs. Because negative gearing deductions offset your income, they are most beneficial to high-income earners. What this means is the more you borrow, the more interest you pay and the bigger your deduction. While everyone wants a large tax deduction, you shouldn't over commit yourself in order to get one. You still have to make the mortgage payments and those lucrative tax benefits don't arrive until the end of the financial year. In periods of low inflation, the benefits of negative gearing are usually negligible. (Case study: Mr. Bill teaches accounting in TAFE. He is interested in a 2 bedrooms unit in Parramatta, which costs $360,000. His annual salary is $50,000. He gets $376,190 mortgage at 6.29% p.a. from Wizard home loan, calculate how much money ... Free Essays on Real Property Investment Free Essays on Real Property Investment Why do people use real property investment? Investment in property is most important investment instrument in Australia, as you know the richest 200 people ¡Ã‚ ¯s wealth is based on the real property. Although property must be viewed as an illiquid investment because the transfer costs of properties are high and the selling period averages several months, according to steady profit return and low risk, many people buy in property to against currency inflation, and to compensate increasing life expense contrasted to decreasing social security after retirement. How does it work? Negative gearing Gearing basically means borrowing to invest. An investment property that's negatively geared is purchased with a loan that has an annual net rental income amount that is less than the annual interest paid on the loan, plus the deductible expenses associated with maintaining the property. You get tax benefits by being negatively geared as you are able to deduct the costs of owning an investment property from your overall income. The biggest part of this deduction is the interest portion of your mortgage, but you can also claim such expenses as property management fees, loan costs and repairs. Because negative gearing deductions offset your income, they are most beneficial to high-income earners. What this means is the more you borrow, the more interest you pay and the bigger your deduction. While everyone wants a large tax deduction, you shouldn't over commit yourself in order to get one. You still have to make the mortgage payments and those lucrative tax benefits don't arrive until the end of the financial year. In periods of low inflation, the benefits of negative gearing are usually negligible. (Case study: Mr. Bill teaches accounting in TAFE. He is interested in a 2 bedrooms unit in Parramatta, which costs $360,000. His annual salary is $50,000. He gets $376,190 mortgage at 6.29% p.a. from Wizard home loan, calculate how much money ...

The Constitutionality of the Low-Income Tax Credit Changes essays

The Constitutionality of the Low-Income Tax Credit Changes essays Article I, Section 8 of the Constitution says that The Congress shall have power to lay and collect taxes, duties, imposts and excises. The United States Congress chose, by way of the Internal Revenue Act, to create an agency, the IRS, to execute its power to tax. The power of the IRS, however, is limited to those granted to it by Congress. Much like our legal system, the taxpayer is assumed innocent until proven guilty. That is to say, only after they have filed their tax return can the IRS audit, or question their eligibility. The IRS has now overstepped their bounds by changing their requirements for the way tax returns must be filed. Furthermore, they have changed the requirements for only a certain group of people, those filing for the Low-Income Tax Credit. The IRS is now requiring that these individuals provide excessive documents and forms of proof that they are eligible for this type of return. And this is required in advance of their claim, not after an audit, which would normally be the case. A new injustice arises when you consider the fiscal position of the IRS. They insist that these regulations are being passed to lower the loss of taxes due from people falsely claiming the Low-Income Tax Credit. Loss from these false claims is said to be from 6.5 to 10 billion a year, a significant figure. This figure is much less significant, however, when you compare it to the loss in other areas. For example, corporations alone evade around 46 billion a year. And unlike poor Americans, corporations can actually afford to provide the necessary documents of proof. Citizens of lower income are clearly being deprived of the right to life and liberty by a body of government operating outside its stated purpose by the congress. ...

Bloody Sunday Incident Assignment Example | Topics and Well Written Essays - 1250 words

Bloody Sunday Incident - Assignment Example When the public loses trust in its law enforcement system, then it is time to review the principles involved and get them changed. Introduction From 1960 through 1969, the United States experienced numerous changes such as the assassination of President John F. Kennedy, the escalation in the Vietnam War, the first landing on the Moon, the rise of the hippy era and notable events in the fight for Civil Rights. One of these Civil Rights events was the walk across the Edmund Pettus Bridge in Selma, Alabama by 600 Black Americans on Sunday, March 7, 1965. The purpose of the march was to obtain the right for Blacks to vote (Hunter & Barker 2011). The governor of Alabama was George Wallace, who was considered a racist and segregationist. Alabama State Troopers showed up in force and before long, the gathering turned into a bloody confrontation, with the police seen as using excessive force on the group (BBC 2013). A number of people were hospitalized with injuries and the effects of tear g as. The march would later be conducted again on March 28, 1965, this time with Martin Luther King in attendance. 1.The key points for the Bloody Sunday event were that 600 Black Americans conducted a peaceful march over the Edmund Pettus Bridge in Selma, Alabama. ... 2. The event occurred in Selma, Alabama, March 7th, 1965 on US Route 80 at the Edmund Pettus Bridge. The protesters were pushed back to the Browns Chapel Methodist Church which was where the march had started from (BBC 2013). 3. The peaceful protesters started from the Browns Chapel Methodist Church and walked along US Route 80 to the Edmund Pettus Bridge. They did not stop anywhere nor did they conduct any illegal actions. Governor Wallace had gotten wind of the fact that there would be a march by the Blacks and called up the State Troopers to meet the protesters and have them disperse and go back home. When the protesters met up with the troopers, they were told to go home or go to church but they would not move. The police, with gas masks on, began moving forward until they reached the first line of protesters (BBC 2013). At that point, the troopers began shoving people backwards and people started falling down. There were also troopers on horseback as well who were wielding wood clubs. Many were beaten, even those that were already down on the ground. At some point, some of the protesters began throwing bricks and bottles at the police in an effort to fight back. A number of people were hurt and put into the hospital (Davis 1999). 4. There were two reasons that this march took place. The first was that the Blacks had been having meetings about conducting a walk over the bridge to fight for the right to vote for Blacks. The second reason for the march was that after a February rally meeting held at one church in Marion, Alabama, when the church goers came out the church, they were attacked by state troopers and one man, Jimmie Lee Jackson, who was trying to protect his mother from being clubbed, was