22. Buy Cheaper Cuts of Meat and Learn To Tenderize- If you learn how to tenderize meats, you can buy cheaper cuts of meat and have wonderful, tasty meals. Also if you are using stew beef and cooking all day in a crock pot, you can use a cheaper cut of meat and still have a wonderful result. Often stores will have cheaper cuts of meat on sale with great deals. For example, just last week I purchased sirloin steaks at buy one get two free. So for $16.00 dollars I ended up with six meals for two of us, making each meal only $1.34 per person for an 8 ounce steak. We simply marinate the steaks or use meat tenderizer and refrigerate them overnight before putting them on the grill and they are tender and delicious. A good friend of mine takes two steaks and puts them in the crock pot with a little milk and a can of cream of mushroom soup and cooks them that way. So if you are a little creative in the way you cook you can have premium steaks for a very low price.

23. Cut Back On Meat Consumption- This is actually good for you. One or two nights a week make a salad or pasta for dinner. This will save money by eating for less and eating healthy.

24. When Making Soups and Chili Make A Double Batch- When preparing soups and chili make a double batch and freeze half or eat the second meal later in the same week. When you freeze meals make sure you date them and use them within three months. This is a great way to save money and time and create a good meal for another day.

25. Figure Out What You Currently Spend on Groceries- Figure out how much you spend weekly or monthly on groceries and then figure out how much you save after implementing money saving strategies. Take the difference and stick it in a savings account either weekly or monthly. I have saved about $15.00 per week on my grocery cost for two people.

Tune in next week for more money saving tips. In the meantime check out Kathy Kennebrook’s website at www.marketingmagiclady.com for all the real estate investing tools you need and even more money saving tips and recipes. While you are there be sure and sign up for Kathy Kennebrook’s FREE monthly newsletter and receive 149.00 in additional real estate investing tools absolutely free!

15. Don’t Waste Leftovers- Re-heat leftovers for a lunch at work or use leftovers as an ingredient in another dish.

16. Use What You Have on Hand- You can substitute ingredients in many recipes or you can create entire meals just from what you have in your pantry.

17. Take The Amount Of Cash You Need To Shop- If you look at your grocery list you will have a good idea of how much money you need to buy what you need. Do not take extra cash and do not put groceries on a credit card. This will stop you from overspending at the grocery store.

18. Free Samples- Many manufacturers offer free samples in order to get you to try their product. They may offer it on websites or as a coupon for a free item. This is a great way to save money. I have gotten coupons for free food items, hair products and laundry soaps.

19. Shop Early and Eat Before You Shop- If you shop earlier in the day a store is more likely to have the item you are looking for in stock, plus the stores are less crowded. Make sure you eat before you shop, the less hungry you are, the more likely you are not to buy something that is not on your list.

20. Beware of Smells Of Cooking and Bakery- Bakery and cooking smells in the grocery store tempt you to buy things that are not on your list. If you are not hungry these smells will not be as tempting.

Tune in next week for more money saving tips. In the meantime check out Kathy Kennebrook’s website at www.marketingmagiclady.com for all the real estate investing tools you need and even more money saving tips and recipes. While you are there be sure and sign up for Kathy Kennebrook’s FREE monthly newsletter and receive 149.00 in additional real estate investing tools absolutely free!

9. Do Not Buy Non Grocery Items At The Grocery Store- The prices on these items tend to be quite a bit higher at the grocery store. Batteries, cleaning supplies, laundry soap, charcoal, lighter Fluid, automotive supplies and health and beauty items would be good examples of items I would not buy at the grocery store.

10. Bring a Small Calculator- Sometimes you need to check prices on bulk pricing versus smaller packaging. It amazes that sometimes the smaller package is actually the better deal. Using a calculator will also help you to keep track of how much you are spending.

11. Check The Actual Size of Containers- This was brought to my attention recently. In order to actually charge more for an item, some manufacturers are getting the same price for an item but putting less in the container. So you might have two containers of ketchup for example that are different brands but look the same in size. When you check the ounces you will see that one container has 16 ounces and the other has 14 ounces. The way they do this is to make an indentation in the bottom of the container.

12. Buy Store Brands When Feasible- Some items you buy can simply be cheaper by buying the store brand and doesn’t affect quality. Prime examples would be sugar, flour, salt, milk, cooking soups, and tomato sauce.

I also found out that major manufacturer’s package for stores under store brands so even though the item is a store brand it’s identical to the brand name. Once example of this is cream cheese, the easiest way to check this is by checking the ingredient listing on the brand name item and the store brand of the same item. Sometimes you will see that the ingredients are identical and in the same order.

13. Check Dollar Stores and Thrift Bakeries For Grocery Items and Breads-

This one floored me. I found that I can buy major brand in date bread at the dollar store instead of paying over $2.00 per loaf at the grocery store. Thrift bakeries are also a good place to buy breads and snacks at reduced prices. The Dollar stores also carry canned goods, grocery items and health and beauty items at much reduced prices along with things like birthday cards. One point I need to make here…not all dollar stores are dollar stores. For example at Dollar Tree everything is a dollar. At other dollar stores this is not the case.

Tune in next week for more money saving tips. In the meantime check out Kathy Kennebrook’s website at www.marketingmagiclady.com for all the real estate investing tools you need and even more money saving tips and recipes. While you are there be sure and sign up for Kathy Kennebrook’s FREE monthly newsletter and receive 149.00 in additional real estate investing tools absolutely free!

1. Plan Ahead- plan your weekly meals around store sales. Check the ads and check online ads for the stores you shop at and plan your week’s meals around what is on sale.

2. Plan Your Food Budget- Take the time one day a week to cook several meals and freeze them. This will save time and money on busy nights when you might be more likely to just buy fast food. Have a plan in place for the nights you just don’t plan on cooking.

3. Quick Meals- When I know I have a week of busy nights, I buy cold cuts and have sandwiches for dinner or I buy items that cook up quickly like Hormel Meals which heat up in four minutes and feed two people. I just make some rice on the side to go with it. Progresso canned soup and rolls make a quick meal as well.

4. Keep A Master Shopping List- This will save you time and keep you from forgetting to buy a grocery item you need. Simply keep a shopping list going all the time. I keep a pad on the front of my refrigerator and as I am getting low on an item, it goes on the list. Then I watch for those items in the weekly grocery ads.

5. Allow One Grocery Day Per Week- Personally I shop on Thursdays. This is so I can take advantage of the store ads. I shop at two grocery stores. One grocery store’s new sales begin on Wednesday and the other stores sales begin on Thursday. Shopping one day a week or every two weeks will save money, time and gas. The more time you spend in the grocery store the more money you spend. If you have the time you can visit more than one store to get the best deals on items you use a lot. You should check the ads ahead of time and make a specific shopping plan.

6. Use a Specific List and Plan When Shopping- Go shopping with a specific plan in mind. Get what you need and leave. The more time you spend in the grocery store, the more money you will spend. Also, shop alone. Shopping with children or the husband will almost guarantee that you will buy items that were not on your list.

7. Buy In Bulk- Here are some pointers on buying in bulk. Buying in bulk can save some big bucks on items you use all the time like canned vegetables, soups, ketchup, and mayonnaise. You can shop your discount club for these items like Cosco or Sams Club or you can take advantage of “buy one get one free” ads at your local grocery store. When buying these items check the dates to make sure you have enough time to use them before they expire.

Tune in next week for more money saving tips. In the meantime check out Kathy Kennebrook’s website at www.marketingmagiclady.com for all the real estate investing tools you need and even more money saving tips and recipes. While you are there be sure and sign up for Kathy Kennebrook’s FREE monthly newsletter and receive 149.00 in additional real estate investing tools absolutely free!

1. Write the bureaus a letter. Especially if an inquiry is truly unauthorized, they will have to contact the creditor and ask for them to prove the existence of the inquiry. Most will not have the time, or documentation to prove it, and inquiries will just fall off.

NOTE: Beware of disputing inquiries pertaining to an open credit line. For example, I heard of a consumer whose car got repossessed by Bank of America because he disputed the inquiry associated with obtaining the car loan with that bank. This is an extreme case, but beware of the risks.

But if inquiries resulted from “shopping” for credit, these are fairly easy to remove.

2. File a fraud alert and dispute inquiries as fraudulent. Be careful of this as well, as your file will then be very closely scrutinized by higher paid credit bureau staff, which can be to your disadvantage.

3. “Bump” your inquiries off with TransUnion. For example, subscribe to a credit monitoring service such as creditchecktotal.com that allows you to check your credit daily with updates. These updates are “soft pulls” on TransUnion bureau. So they don’t count as inquiries that other people see that would affect your score, but they are added to the record. Enough of these soft inquiries maxes out the record, and eventually bumps off the inquiries seen by all. It takes approximately 60 soft pulls. But you can cut the time in half by subscribing to multiple services that allow you to check inquiries daily. Kathy Kennebrook and I have done this successfully.

Note that deleting inquiries years ago was much faster and easier than now, as bureaus have tightened up in their practices. TransUnion appears to be the most difficult to work with at this point in time, and takes the longest to see results with by mailing letters. Whereas Equifax and Experian are pretty fast.

4. Hire an expert to delete inquiries. Kathy Kennebrook andI have worked with 3 different providers that have all performed. I have paid as much as $150 or more per inquiry to an attorney for deletion because the money I had paid him would be quickly recouped by the credit lines I would get approved for after the inquiries were deleted. No provider can guarantee all inquiries will be deleted, rather, on a “Best efforts” basis.

The most recent expert I have worked with uses a proprietary online and offline tactics to get inquiries deleted quickly and professionally. His cost is one of the most reasonable I have seen and he is very responsive and professional.

This should give you a better overview and more hope for your credit report. Time and space does not permit me to share the specific letters I have written to delete inquiries successfully.

Or if you wish to have the provider’s contact information I would be glad to share it with you. This is all contained in my step-by-step home study system that teaches you how to repair and build your personal and business credit so you can have all the money you need to tide you over during these times. Just check out Kathy Kennebrook’s website at www.marketingmagiclady.com for more information on this system.

Although the bar has raised for credit, banks still have plenty of money to give you, and if you can tap this vault, you will have an advantage that will help you make a fortune because you can buy assets as such an incredible discount.

Dr. Stefan Kasian, the “King of Credit” has obtained over 1 million dollars in business credit for himself and his clients in the past few months. While earning a doctorate in psychology, he became a semi-retired millionaire at an unusually young and tender age. Now he continues using his high-level Wall Street and Celebrity contacts to give clients an insider’s edge in getting the money you need to survive and prosper in this economy while all the other banks and lenders turn you down. Please visit the Million Dollar Corporate credit system for complete information by going to Kathy Kennebrook’s website at www.marketingmagiclady.com.

While you are there be sure and sign up for her free newsletter and receive an additional 149.00 in Real Estate Investing tools absolutely FREE!!

Like it or not, having inquiries on your credit report can get you turned down for a loan approval or credit report. I’ve applied for credit for years for myself and my clients, and I can’t tell you how many times a bank wrote a rejection letter that we were turned down for a credit card “because of excessive inquiries.”

No matter what a creditor tries to convince you of otherwise, inquiries DO lower your credit score. Granted, some mortgage companies, for example, only consider your most recent inquiries for past 3-6 months. The more you have, and the more recent you have them, the more your score is lowered. And a lower score also means you will end up paying a higher interest rate on your credit, which could cost you thousands of dollars over time.

In fact, many business and personal credit line services who specialize in obtaining credit lines for their customers won’t even touch you if you have more than 2-3 inquiries per bureau.

But how do you delete inquires? The bureaus may like to tell you the propaganda that inquiries cannot be deleted, they are permanent, and stay on for months, even years.

Nothing is farther from the truth. Based on years of trial and error, Kathy Kennebrook and I have uncovered some of the best ways to remove inquiries.

Follow up next week for all the information you need on deleting inquiries from your credit score. In the meantime checkout Kathy Kennebrook’s website at www.marketingmagiclady.com for all of the tools you need for your Real Estate Investing Business. While you are there sign up for Kathy Kennebrook’s free newsletter and receive 149.00 of real estate investing tools absolutely FREE!!!

I am talking about the most powerful deduction for the real estate investor – Depreciation — which is an annual tax write-off of the cost basis of assets held for rental or business-use, such as real estate.

Why this “NO-cash-out; yet cash-IN” phenomena?

The first part, “NO cash out” is because the determination of depreciation is based on the entire cost of the property, regardless of how the property is financed. So you can do what is so frequently done, put little or no money down on a property and still take depreciation on the entire cost of the depreciable property. That is, you do not have to spend any cash for valuable depreciation deductions.

The second part, “cash IN” is because of the tax savings generated by depreciation, especially with componentizing (discussed later). That is you pocket the tax savings, while the property is appreciating. For example, a $20,000 depreciation deduction reduces your ordinary income. In a 30% bracket this will save you $6,000 in taxes. This is like found money because you did not have to spend any additional cash to get the deduction. The $6,000 as a 10% down payment can allow you to buy an additional $60,000 worth of real estate, which, at a 20% yearly return, would be $12,000 more income every year. Plus, like money in the bank, you get the deduction and tax savings every year (for the recovery period of the property). Yet, when you sell, you can have no recapture and thus not have to pay any of these tax savings back by selling the property, tax free, via the powerful 1031 Exchange or other tax-free selling strategies. You still continue to pocket the tax savings from depreciation! You get the best of all worlds! Get the picture? Money makes money but saving taxes (every year) makes a whole lot more money, so you can get richer, faster!!

So how can you make this already valuable deduction save you even more money? Componentize!

Componentizing (or Cost Segregation Analysis) is something that I have been using for over 25 years to dramatically increase my cash flow (and wealth) via tax savings from much larger depreciation deductions.

Reason: With componentizing, you break out components, from the property cost, that allow you to use shorter recovery periods with the result of much larger deductions and savings. For example there are many items that can qualify for personal property and be rapidly written off over 5 years (double-accelerated) instead of slower building depreciation of 27-1/2 or 39 years straight-line (or 6 times faster than the building). There are land components that too can be rapidly written off over 15 years (accelerated) instead of 27-1/2 or 39 years straight-line (or 2 to 3 times faster than the building).

Moreover, with my Goldmine system of componentizing, you can justify a low or no land value for even more deductions and savings.

Furthermore, you can also fully deduct the remaining basis of components that are replaced.

For example, if you replace existing property components with a remaining componentized cost basis of $30,000, you can claim the entire $30,000 as a full ordinary deduction. In a 30% bracket this puts $9,000 of savings in your pocket, yet you did not have to expend cash for the deduction!

So how much extra did you pay in taxes not using componentizing because your tax advisor did not know about this incredible legal strategy?

According to the follow quote from one of my students, probably a lot!

“Al, your component depreciation method saved me almost $20,000 dollars in income taxes. It helped me financially having four girls in College at the same time.” …Angelo D. Guerra, Investor, Broker/Owner, ERA Platinum Realtors, Conshohocken, PA.

By the way, that’s $20,000 a year, which if invested at 10% a year for the next 10 years would accumulate to over $318,000! But with real estate the returns are even greater; so if at 20% for the next 10 years, the savings would accumulate to over half-million dollars, which is what you are really losing without this great wealth system!!

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The above are excerpts from The Real Estate Investor’s Goldmine of Brilliant Tax Strategies, A Tax Reduction System by Albert Aiello. The specially designed forms on disk enable Real Estate Entrepreneurs to document, with tax law citations, large write-offs of depreciation and reap huge savings every year. For more information on all of the tools you need for your real estate investing business, visit Kathy Kennebrook’s website at www.marketingmagiclady.com or call the office at 941-792-5390.

There are three major tax-saving benefits of classifying expenditures as repairs rather than capital improvements. One of them is immediate tax savings. For example, the owner of a rental property is in a 31% tax bracket and pays $20,000 as a repair is an immediate deduction which is worth $6,200 in tax savings. But if the $20,000 is capital “punishment” it must be written off over 27-1/2 years = an annual deduction of about $720 year = tax savings of only about $200 in the first year. A difference in immediate tax savings of $6,000! These tax savings could be used as an immediate source of down payment monies for other income-producing real estate.

There are over 60 tax saving ideas to convert capital improvements into fully deductible repairs! Let me share some of them with you.

Þ COMPONENTIZE IMPROVEMENTS – Just as a big forest is made of many smaller separate trees, so is an extensive plan of improvements made up of a series of smaller, separate repairs. That is, much work resulting in the “permanent improvement” to a property, in essence, consists of a series of “separate repairs”. Such repairs could be immediately deductible if documented separately. Otherwise they will lose their nature as repairs if they are part of a general plan of improvement or reconditioning. You therefore need to componentize or fractionalize the large expenditures into a larger number of smaller, separate jobs. It helps if each job is done separately & independently, over more than one year. Do this with separate invoices and separate contracts for each job. This is what the tax court said in Cobleigh, TC Memo, 1956-261.

Þ DOCUMENTS (SUCH AS BILLS & CONTRACTS) SHOULD BE WORDED AS “REPAIRS” – Use such words as: “repairs”, "prevent damage", “patch”, "temporary", “incidental", "minor", “fix”, “piecemeal", "annual", "less than a year", "decorating", "painting", "small", etc. Also, the prefix “re” is effective. For example, “repaint”, “repatch”, “repaper”, “recoat”, “resurface”, “redo”, etc. These have been in the taxpayer’s favor in deciding that expenditures were repairs.

Do the above and put more tax dollars in your pocket!

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The above are excerpts from The Real Estate Investor’s Goldmine of Brilliant Tax Strategies, A Tax Reduction System And Special Forms Software Package, by Albert Aiello. The specially designed forms on disk enable RE entrepreneurs to document, with tax law citations, large write-offs of repairs and reap huge tax savings. For more information on all the real estate investing tools and tax saving tips, visit Kathy Kennebrook’s website at www.marketingmagiclady.com or call the office at 941-792-5390

Here is a quick overview…

AVOID INEPT CPA’S, LIKE THE CURSE OF HELL!

Bad tax advisors cause more investors to pay more taxes than the IRS can ever dream of. Ask your follow investors for some good prospective CPA’s who specialize in real estate. Get references and carefully screen them out. NO CPA? Like a bad tenant…having NO CPA is a heavenly dream next to having a bad one. Many of my students do not have a CPA or use one on a very limited basis. Instead they use a good home study course on real estate tax reduction along with tax preparation software such as TurboTax. They rave about how they legally save more money than they did previously with a CPA, but without the high fees. Now this is not for everyone. But if you do use a CPA, make sure that you have at least a general understanding of real estate tax law and that the CPA is working for you; because no one cares more about your money than YOU!

AVOID IRS, LIKE THE BUBONIC PLAGUE!

Reduce your changes of audit by filing extensions and staying off heavily audited schedules such as Schedule’s C or E. File as a partnership, form 1065, which is much less audited. If you want the asset protection of an LLC, then a two or more member files the lesser audited partnership, form 1065.

CREATE VALUABLE “PAPER” DEDUCTIONS

That is “paper” deductions that do not require you to expend cash for, yet it creates cash flow in your pocket via tax savings – Depreciation. A very profitable system of depreciation is componentizing (also called Cost Segregation Analysis). Componentizing is something that I have been using for over 25 years to dramatically increase my cash flow (and wealth) via tax savings from much larger non-cash depreciation deductions. And so have my students. With componentizing, you break out components, from the property cost, that allow you to use shorter recovery periods with the result of much larger deductions and savings. For example there are many items that can qualify for personal property and be rapidly written off over 5 years (double-accelerated) instead of slower building depreciation of 27-1/2 or 39 years straight-line (or 6 times faster than the building). There are land components that too can be rapidly written off over 15 years (accelerated) instead of 27-1/2 or 39 years straight-line (or 2 to 3 times faster than the building). Furthermore, you can also fully deduct the remaining basis of components that are replaced (gutted out). For example, if you replace existing property components with a remaining componentized cost basis of $30,000, you can claim the entire $30,000 as a full ordinary deduction. In a 30% bracket this puts $9,000 of savings in your pocket, yet you did not have to expend cash for the deduction!

AVOID PASSIVE LOSS LIMITATIONS – FULL DEDUCTIONS

Except for $25,000 of losses, rental property tax losses are subject to passive loss limitations which means real estate investors cannot deduct rental property losses against other ordinary income such as W-2 income, business income, gains, IRA distributions, etc. If the investor’s adjusted gross income (AGI) is above $150,000 they will not even be allowed the $25,000 annual “active” exception for deducting such losses. The losses are “suspended” and must be carried forward until the property is sold. To avoid being subject to these limitations, the investor must document that they incur enough hours in the real estate business at a minimum of 751 hours, which is an average of about 14-1/2 hours a week.

TOTALLY AVOID THE TAX DRAIN OF BEING A “DEALER”

Altogether, there are over 30 strategies to avoid the costly consequences of a dealer. My experience indicates that one of the best ones is to demonstrate that the primary purpose of the resale profits is for investment purposes and not sales speculation. For example, the primary purpose (or purposes) of the profits can be for a number of “investment necessities”, such as down payment funds to acquire long-term investment keepers, or working capital for property investment operations including preventive maintenance.

Accordingly, as employed here, these flips are non-dealer, investment transactions with solid economic foundation. This is a very powerful defense against any IRS attacks. Consequently, there are numerous cases and scenarios, some of which I have had firsthand experience with, where even a huge number of sales in one year did not cause costly dealer status.

SELL PROPERTIES TAX-FREE – YOU KEEP ALL THE PROFITS

One of the best strategies to avoid all tax liabilities on the sale of investment property is a 1031 exchange. Understand, 1031’s do not just defer taxes, but by having the interest-free and payment-free use of the tax savings, you have more buying power for the replacement property. For example, if you save $20,000 in taxes by doing a 1031, as a 10% down payment, $20,000 empowers you to buy another $200,000 worth of real estate. In fact, many times, the 1031 savings, combined with leverage, is the difference that makes the difference in doing the deal. My students like to use the higher untaxed equity from a 1031 exchange to roll over into property they intend to keep so they can reap the cash flow, equity buildup and tax deductions (esp. depreciation) you get with keepers.

SELECT THE RIGHT ENTITY

Start off with right form of ownership entity. Do this not only to protect you, but also to support tax deductions that typically would be more aggressive if taken as a sole proprietor. With an entity, such as an LLC, you can use corporate-like documents (such as an operating agreement, minutes or resolutions) to authorize and thus support deductions. Here, you have this statutory LLC entity (separate from its members), via legal documents (such as an operating agreement), authorizing tax saving deductions and strategies. This is excellent documentation, especially with IRS hot spots such as active participation for bypassing passive loss limitations; avoiding dealer status, as well as deductions such as auto, meals, entertainment; travel to find property; educational tuitions for boot camps; travel to such educational events; and the like.

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The above are excerpts from The Real Estate Investor’s Goldmine of Brilliant Tax Strategies, A Tax Reduction System And Special Forms Software Package, by Albert Aiello. For more information on real estate investing and tax savings, visit Kathy Kennebrook’s website at www.marketingmagiclady.com