10 Reasons Why People Travel

When people decide to leave the comforts of their home and venture to other locations there is usually a reason behind it. Whether the cause to travel was a last minute whimsy or had an actual purpose, it makes one think about all of the reasons why people travel. Reflect on the last time you left your location and ventured to another one. Did it have a purpose behind it? Let’s look and see if your motive to travel matched any of the one’s listed below. These are not listed in any particular order.

1. Romance- There are thousands of people who are involved in long distance relationships. At some point though, they need to see each other. For the sake of love, people will travel for hours to spend as much time as they can with the love of their life.

2. Relaxation- All work and no play is not a good thing. People need to get away from the stress of everyday life, and a nice sunny location with a beach might just be what the doctor ordered.

3. Family/ Friends -Many people have family/friends that are located in different parts of the world. They need to visit with them even if it’s for a short period of time.

4. Religion- There are places in the world that hold religious importance for many people. Religious travel is often related to a purpose such as seeing where the last pope was buried, or traveling to the town where Jesus was born.

5. Death- A relative, friend or acquaintance has passed away and travel is required to attend the funeral which is located out of town.

6. Honeymoon- You’re getting married and are going somewhere special to celebrate. This usually occurs right after the wedding, but there are many occasions where people celebrate a honeymoon years later.

7. Education-You’re getting your education somewhere other than where you live or you are going away on an educational school trip.

8. Celebration- Wedding, Anniversary, Birthday, Birth- There’s always something to celebrate and it doesn’t always happen where you live.

9. Medical/Health- Sometimes the treatment you need isn’t available in the city/town where you live. Often the best medical care is costly and requires travel to receive it.

10. Work- Job requirements might mean a fair bit of travel is involved. Even if the travel is within your own country it still has a purpose attached to it.

Overall, traveling can be a wonderful experience or it can be draining, expensive and just plain torture. Nonetheless if you need to go then embrace it for what it is, and try to make the best of it even if it wasn’t planned.

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Trusts and Certyty of Intention

This article looks at the requirements and formalities for a valid trust. In UK law, a trust is an arrangement involving three classes of people; A Settlor, Trustees and Beneficiaries. The Settlor is the person who transfers property to the Trust. The Trustees are people who legally own the Trust Property and administrator it for the Beneficiaries. The Trustee 'powers are determined by law and may be defined by a trust agreement. The Beneficiaries are the people for whom benefit the trust property is held, and may receive income or capital from the Trust.

"No particular form of expression is necessary for the creation of a trust, if on the whole it can be gathered that a trust was intended." This statement gives the impression that no formalities are needed, and could be misleading. Although equity generally does look to intent rather than form, mere intention in the mind of the property owner is not enough. For a valid trust to exist, the Settlor must have the capacity to create a trust. He must positively transfer the trust property to a third party trustee or declare himself trustee. Further, he must intend to create a trust, and must define the trust property and beneficies clearly. This is known as the 'three assurances'; Certificate of subject matter, certainty of objects and certainty of intent.

Certificate of intent refers to a specific intention by a person to create a trust arrangement wheree Trustee (which may include himself) hold property, not for their own benefit but for the benefit of another person.

It is clear when trusts are created in writing and on the advice of legal professionals that intention is present [Re Steele's Will Trusts 1948]. However, no particular form of words is needed for the creation of a trust and here the equivalent maxim, "Equity looks to intent rather than form", applies. It is therefore sometimes necessary for the Courts to examine the words used by the owner of the property, and what obligations if any the Owner intended to impose upon those receiving the Property.

It is not necessary that the Owner expresses calls the arrangement a trust, or declares himself a trustee. He must however by his conduct demonstrate this intent, and use words which are to the same effect [Richards v Delbridge 1874]. For example, in Paul v Constance 1977, Mr Constance did not express declare a trust for himself and his wife, but he did insure his wife that the money was "as much yours as mine". Additionally, their joint bingo winnings were paid into the account and withdrawals were considered as their joint money. The Court therefore found from Mr Constance's words and conduct that he intended a trust.

Certiety of intention is also known as certainty of words, although it has been suggested a trust may be infringed just from conduct. Looking at Re Kayford 1975 1All ER 604, Megarry J says of certainty of words, "the question is whether in substance a sufficient intention to create a trust has been identified". In this case, Kayford Ltd deposited customer's money into a separate bank account and this was held to be a "useful" indication of an intention to create a trust, although not definitive. There was held to be a trust on the basis of conversations between the Company's managing director, accountant and manager so words were necessary for the conclusion.

In contrast, where the word 'trust' is expressly used, this is not a comprehensive evidence of the existence of a trust – the arrangement may in fact institute something very different [Stamp Duties Comr (Queensland) v Jolliffe (1920)]. For example, the deed may contain words such as "On trust, with power to appoint my nephews in such shares as my Trustee, Wilfred, shall in his absolute discretion decide, and in default of appointment, to my friend George". Although professing to be a trust, Wilfred is not under an obligation to appoint the nephews and provision is made for the property to pass to George if he does not. This is therefore a power of appointment, not a trust [eg. Re Leek (deceased) Darwen v Leek and Others [1968] 1 All ER 793].

Sometimes in a will, the owner of Property will use 'precatory' words such as expressing a 'wish, hope, belief or desire' that the receiver of property will handle it a certain way. For example, in Re Adams and Kensington Vestry 1884, a husband cave all of his property to his wife, "in full confidence that she will do what is right as to the disposal between between my children …". The Court held that the wife may have been under a moral obligation to treat the Property a definite way but this was not sufficient to create a binding trust. Precatory words can still sometimes create a trust. In Comiskey v Bowring-Hanbury 1905, the words 'in full confidence' were again used, but the will also included further clauses, which were interpreted to create a trust. The Court will look at the whole of the document to ascertained the testator's intention, rather than dismissing the trust because of individual clauses.

There are further formalities required for certain types of trust property, and for a trust to be valid, title to the trust property must vest in the Trustee, or, the trust must be "constituted". This might be done for example, by delivery for chattels or by deed for land. If the trust is not properly constituted, the proposed beneficaries have no right to compel the Settlor to properly transfer the Property, as 'equity will not assist a volunteer'. The exception to this is where the beneficiary has provided consideration (including marriage) for the Settlor's promise, in which case, there would be a valid contract and the Beneficiary could sue for breach.

Where a testamentary trust of land or personalty is purported, the will in which it is contained must be in writing and executed in accordance with Section 9 of the Wills Act 1837, which means the Will must be signed by the Testator in the joint presence of Two witnesses, and then signed by the two witnesses in the presence of the Testator.

Where a Settlor wants to create an inter vivos trust of personalty, the formalities are minimal. Under the usual requirements for a trust (capacity, the three responsibilities etc), the Settlor must observe any formalities required to properly transfer the Property to the trustees – for example, the execution and delivery of a stock transfer form for shares.

To create an inter vivos trust of land or of an equitable interest in land, in addition to the formalities of transferring the land, the declaration of trust must be in writing and must be signed by the person able to create the trust – ie, the Settlor or his attorney [S.53 (1) (b) Law Property Act 1925]. Where this formality is not accepted, the Trustee would hold the land on trust for the Settlor rather than the Beneficiary. The exception is where the rule in Strong v Bird 1874 applies – the Settlor intended to make an immediate unconditional transfer to the Trustee, the intention to do this was unchanged until the Settlor's death, and at least one of the Trustee is the Settlor's administrator or Executor. In this case, as the property is automatically vested in the Settlor's personal representatives and the trust is constituted.

It is sometimes stated that no particular form of expression is necessary to create a trust if intention was present. Clearly this is not the case. There are formalities for creating inter vivos land trusts and testamentary trusts and if these are not followed, the trust will fail without consideration has been provided or the rule in Strong v Bird 1874 applies, even if the Trustee had the best intentions. Further, the form of words used in those formalities must be clear and unambiguous, or they may not amount to a trust. He goes on to say that 'a trust may be created without using the word "trust"' and this is true in that other words and conduct to that effect are sufficient. However, the Court does not just regard the 'substance' of the words. If the word used does not meet the 'three assurances' or, for example, the person making the declaration does not have the capacity to make a trust, the trust will fail. This is clearly not the desired 'effect' and not the owner's intention.

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Tips On How To Clean Your Dirty And Smellygage

Your luggage travels in different conditions. The rain, the muddy pathways and the dirty pavements can all make your luggage dirty and smelly. If you do not take good care of it, your precious travel bag can wear out faster.

Cleaning your dirty and smelly luggage should not be too daunting. Let me tell you some tried and tested cleaning tips:

1. Vacuum your luggage. Try to get rid of as much dirt and dust from your travel bag as you can. Also vacuum the casters and the interior of the bag. You might want to use a vacuum machine with a good filter to effect suck minute dirt and dust particles.

2. If you are using a canvas luggage, try cleaning it with a mild dish washing liquid. Mix two drops of the dish washing liquid in two cups of warm water. Soak a sponge or a clean towel in the mixture. Wring out the excess. Use this to wipe the interior and the exterior of the machine.

Make sure you remove dirt particles. Also wipe away dirt and crusty mud on the wheels of the luggage.

3. For your leather luggage, try to get rid of the mud using a leather polisher. Apply leather polisher on a clean rag. Wipe it all over the bag.

4. Get a soft bristled brush and use this to remove dirt particles in the zippers, wheels and the handles of the bag. You can try soaking the brush in the dish washing liquid solution first. This will loosen up the crusty mud or dirt.

5. Sprinkle baking soda on the interior and exterior of the luggage. Leave it on for an hour. Baking soda can effectively diffuse unwanted luggage odor. This will also help get rid of lingering stains and dirt.

6. After an hour, vacuum the travel bag again to get rid of the baking soda residues.

7. To deodorize the luggage bag once again, try spraying it with lemon juice solution. Just mix one cup of lemon juice with one cup of water. Place it in a spray bottle. Spray it all over the luggage. This should work in diffusing unwanted bag odor.

8. Let it dry completely. Place the bag in an area not directly exposed to the sun.

If you are traveling during rainy seasons, make sure you use a luggage cover for your bag. These can be purchased from travel bag stores. They can protect your bag from further damage.

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The Advantages and Disadvantages of Travelling Alone

One of the main purposes of travel is to gain experiences that allow us to grow and develop as individuals and it is important that people travel the way that bests suits them at a particular time. For example, I like to go on adventure holidays and this invariably includes a small group and expert guide, and I frequently participate in writing retreats around the world with like-minded people. However for me, the real joy of travelling has always been to take off on my own and just ‘see’ what comes along the way. Of course this can sometimes be fraught with frustrations, difficulties and even dangers.

Advantages of travelling alone

  • Freedom
    Most people who travel alone generally cite freedom as the great motivating factor: freedom to please themselves, go where and when they want, change their plans on a whim when they hear about something that is a ‘must’ to see, and to accept spontaneous invitations by locals.
  • No compromises
    This is associated with the previous point. Even if travelling with one other person, be it friend, colleague, lover or spouse, there will always be some compromises required. Not everyone has the same interests or the same energy levels, some people need to be emotionally supported all the time, others are apathetic, some have different attitudes to time. With solo travel, there is no peer pressure over finances, the unspoken need to divide up restaurant bills equally, or guilt trips when you want to go off on your own for a while.
  • Meeting people
    Travelling solo does not mean that you will always be alone. In fact, it allows you to meet more people because other tourists and locals find an individual traveller more approachable than those in a tightly-knit group. Also, people in groups have very little need to reach out to others for communication. I have met more people, had more interesting conversations and invitations and made more long-term friends while eating alone in foreign restaurants or sitting alone at bars. But then I am gregarious. Travelling alone allows you to choose the people you wish to spend time with rather than having to face the day-after-day annoyances of the inevitable clowns and whingers found in any large group.
  • Discoveries
    There is a real sense of discovery involved in travelling on your own, and that includes self-discovery. You don’t have to rely on an often ill-informed guide to lead you around on a leash, and there’s the surprise and thrill when you find something you weren’t expecting, like the time I became lost and ended up in a small Bavarian village with a monastery that contained a library with tens of thousands of Medieval manuscripts. Travelling alone allows you to discover more about yourself as you overcome simple challenges such as missing a bus or boat and realizing there is no other for a day or a week. Then there is the sense of achievement when solving much more challenging problems like finding yourself lost in a strange town at midnight or running out of money on a holiday weekend with no ATM in sight and the banks closed.

Disadvantages of travelling alone

  • The single supplement
    For those who like to stay in decent hotels, there is the unfair single supplement that can add thousands to the cost of your trip.
  • Lack of help
    There is no one to watch your luggage while you go to the restrooms at airports or train stations, no one to help with persistent touts, no one to be there for you if you get sick or if you are being stalked or harassed by a determined male in the street.
  • Photos
    There are times when I would like to have had more taken of myself in certain places, but there again, there are always people willing to snap one or two for you.

I know there will be times in the future when I will travel as part of a group out of choice because I want to visit areas where it is just not possible or sensible for a woman alone, or because I wish to be with family or like-minded people. However, due to my particular personality traits, my preference is to travel alone. I guess it really doesn’t matter how people travel, but that they travel.

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Antigua Weather – Best and Worst Months to Go

Antigua has 365 beaches – one for every day of the year – and plenty of good weather to go with each one. But the island has its share of bad weather months, too.

Beside the beaches, Antigua and its companion island of Barbuda are known for good shopping, historical sites and plenty of hotels, resorts and restaurants.

The island has little variation in temperatures throughout the year, but strong peaks and valleys with rain.

Tourists will experience an average high monthly temperature of 85 degrees Fahrenheit, the World Weather Organization says. The average monthly low temperature is 75 degrees.

Antigua weather in June through October reaches average high temperatures of about 87 degrees Fahrenheit. They reach a low of 83 degrees in December, January and February.

Rainfall rates 3.6 inches per month. It reaches a high of 5.5 inches in September, with almost as much rain in October and November. These months have the most storm and hurricane activity of the Caribbean's annual hurricane season, which officially runs from July 1 to November 30. The islands also see higher rainfall in May, although not as much as the fall months.

Antigua weather in February sees rainfall reach a low of 1.5 inches, followed closely by March, January and April, respectively. February through April average about eight rain days per month, while August, October, November and December average 13 days a month.

The best time to visit Antigua is March and April, while the worst time to visit Antigua is September and October, according to the Caribbean Tourism Organization.

A combination of warm temperatures and light rainy make February through April along with June the least risky months for a vacation there. Likewise, Antigua weather in August through November along with May have the highest risk of rain.

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Backpacking Vs Organized Tours – A Decision Every Traveler Faces

In planning my RTW adventure, I have been giving considering thought to the options of backpack solo, or booking into an organized tour. In my past travels, I have done a combination of both organized tours and backpacking solo and both have their good and bad points.

ORGANISED TOURS – THE GOOD …

Time Poor – If you only have a limited amount of time to go travel, then an organized tour is great as you will be able to get around and see all the things you want to, without the hassle of organizing the trip yourself.

New Friends – Usually people who book an organized tour with a specific company all have similar interests. I have made some amazing friends through doing organized tours and still, to this day, keep in touch with them.

You can be lazy – Once you have booked your tour, paid and packed your bag, you do not need to worry about a thing! You are in effect paying the tour company to take care of transportation, meals, accommodation and all the hassles involved in traveling.

ORGANISED TOURS – THE BAD …

Usually inept – Every tour has someone on the tour who will drive you nuts. When in India, I was traveling with two girlfriends and because there were 3 of us in total, we had to alternate sharing a room with another female. Unfortunately this female was an older woman who had no self awareness and was clearly an inexperienced traveler, some of the "interesting experiences" we had with her included:

  • She did not shut the door when she went to the bathroom, I would NEVER go to the bathroom with the door open, especially when I had only known the person for a matter of weeks …
  • She did not bring adequate first aid and medication supplies, unfortunately she came down with a mild cold / flu and proceeded to use everyone else's medicine and she never offered to replace it. When we went past a chemist, she was that inconsiderate that she did not even think to buy her own supplies.
  • She forgot her torch, now on this tour we were camping along the Ganges for several days and a torch was essential. So every time she went to the bathroom she borrowed my head torch, the problem was that she put this on her sweaty head and handed it back to me wet .. YUCK!
  • She hung her underwear up all over the bathroom and on my chair and bed, it was not a pleasant experience having to relocate her over sized bloomers every time I wanted to sit down …
  • She would leave the hotel with the key, there were several occasions when I was stranded outside of my room and had to wait for her to return, rule number 1 of an organized tour is ALWAYS leave the key with reception when you go out.

People who do not read the trip notes – Of the tours I have done, I have encountered two travelers, who never should have booked on the types of trips that they did. The first encounter was in Thailand, there were a young English couple on the tour, they had never traveled outside of britain and were both very young. They winged, moaned, sacrificed and did not enjoy themselves and pretty much did everything in their power to let the rest of us know they were not enjoying the experience. Had this couple taken the time to read the trip notes, they probably would have realized what they were getting them into and perhaps, reconsidered their trip.

Waiting, Waiting & Waiting – Now because tour leaders are acutely aware that people are always running late, whenever you need to leave your hotel or meet as a group, the tour leaders always tell you to meet at least 1/2 an hour before the Actual meeting time. This is fine if your the type of person that is always running late, however for the rest of us it means waiting around in lobby's for what looks like forever !!

BACKPACKING – THE GOOD

Now my personal preferred method of traveling is backpacking! And some of my favorite things about this mode of travel include:

  • You do not have to answer to anyone, if you do not like a place, you can simply leave, if you like it, you can stay!
  • You meet some amazing like minded people along the way, hanging out at hostels and having a beer in the lounge can introduce you to some amazing people
  • It is very inspiring hearing what other people have done and are doing, my addition to travel has come out of hearing other peoples stories about what they have done!
  • Other backpackers are generally very considerate and willing to meet new people and share their experiences
  • It is cheaper! You are not paying a premium for a tour company, a tour guide and their accommodation so you can cut costs as you see fit, stay in a nicer hotel or a cheaper hotel if that suits you!
  • If you get drunk and make a fool of yourself, you can just move on! You do not need to deal with anyone the next day!
  • It is easier to have a holiday romance! One of the most amazing romances I have ever had when I finished my organized tour in Thailand and backpacked around for a week, I met a wonderful American man who followed me to Bangkok and then onto Australia! I could not have had a romance when in an organized tour, especially an extended one as if it gets complicated, it can make the entire trip awkward!

BACKPACKING – THE BAD

At times you just want to have someone to take your photo! If you can not find someone to do side trips, you end up getting a lot of self portraits that are not exactly flattering!

It can be frustrating navigating around cities and countries on your own when you do not speak the language. Particularly if you are white and traveling to an Asian country, people know your a tourist and can take advantage of this.

  • You are a target, as a female you can be a target from male advances and this can be quite intimidating if you do not have the confidence to deal with it.
  • It can get lonely, if you do not strike up friends along the way, you can end up spending a lot of time alone, which on occasion can be nice, but it is very nice to share experiences with other people.
  • If you get sick, you are on your own, there is no-one to bring you medicine or look after you!
  • When you get home, you do not have anyone to share your experiences with, when traveling with a partner you can always reminounce about the things you have done, or you can email others from your tour and keep in touch. But when you travel solo, the reality is no one really cares what adventures you have been up to, they pretended, but they are not really interested!

All in all there are definite advantages and disadvantages for both backpacking and organized tours, for my trip I will be doing a combination of both n the beginning, however once I have finished in Africa, it is my intention to go solo for the rest of My trip and meet some new and exciting people along the way!

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Things You Should Never Put in Your Will

A will will a vital estate planning document, and allows you to distribute your assets and property according to your wishes. At a minimum everyone should have a will, even if you believe you do not have many assets. It is a common misconception that only rich people need estate plans. A will have a number of limitations you may not be aware of. However, there are several items that should NOT be included in a will:

Property held in a living trust or joint tenancy – property deeded to a living trust can not be refused to someone else, and a will can not change the right of survivorship in joint tenancy, which passes to the joint tenant by law. Do not let the legalese scare you. Let an attorney help you ensure that any property you leave is handled in the way you want.

Accounts with designated beneficies – financial accounts and life insurance proceeds go to beneficiaries who are designated by you via a designated beneficiary form, and can not be given to someone else through a will.

Contingency gifts – leaving assets that are contingent on the beneficiary performing a duty or act (like marrying or attending college) is not always legal. Generally speaking, you can not "manage from the grave" by making an inheritance contingent on someone getting married, changing their religion, etc.
Provisions for those with special needs – this should be done via a special needs trust.

Provisions for pets – pets do not have the legal ability to own property, so consider acquiring a pet trust to care for your pet (s). Did you know that you can leave money for the caretaker of your pet and of course choose who or what organization you would like to care for your pet.

Funeral instructions – since a will will not be read until after the funeral, leave instructions for your funeral arrangements in a letter of instruction or discuss your wishes with loved ones. It is also advisable to get funeral insurance. Save your loved ones from the hassle of chasing money immediately in the aftermath of your death.

Many of the items above can be addressed in a trust designed by your attorney. It also shows that "wills in a box" software many times will not ensure your desires are abided by. If you'd like to learn more about establishing your personal estate plan, call an attorney today.

To Your Health, Wealth & Happiness,

Walter H. Bentley III
Http://www.wbentleylaw.com

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How to Wash a Microbead Pillow

Every so often, after repeated use, or due to messy accidents, micro bead pillows will need to be cleaned. Unlike memory foam or down pillows where only the pillowcase may be washed, micro bead pillows may be washed, just as long as proper measures are taken in order to prevent the pillow from being destroyed. On many micro bead pillows, the tag suggests that they may only be spot treated. This can be done by scrubbing the spot or spots out with soapy water or any other gentle cleaning solution; bleach should never be used.

However, people with young children or animals often find that the pillow may be too dirty to clean by the spot treating method. Microbead pillows may be washed in the washing machine as long as you are careful. It is important that the pillow is first placed in another pillowcase with the end tied off so it does not fall out during the wash. The pillowcase prevents the microbead pillow from falling apart through the tumbling and rushing water. It is the pillowcase that takes the beating while the microbead pillow remains safe inside while still receiving the cleaning that it needs. A detergent meant for fine fabrics or wool, such as Woolite should be used to further prevent possible tearing of the fabric. Again, no detergent with bleach should be used because it can break down the nylon lycra or spandex outer fabric of the pillow.

Wash the microbead pillow on your washing machine’s gentlest cycle using cold water only; heat risks damage to the microbeads as well as to the outside of the pillow. While washing, one should occasionally check on the pillow to make sure that no harm is coming to the pillow. While this step is not necessary, it is definitely a good idea. After washing, it is incredibly important to remember that the dryer cannot be used to dry it because, once again, the heat would create a terrible, sticky mess of the outer cover of your favorite pillow. However, a dryer may be used to tumble and air dry the pillow as long as no heat is used. To complete drying, the pillow must be hung to drip dry. With certain, higher quality brands of microbead pillows such as Snooztime, regular machine washing and drying is possible, making it easier and also more convenient to clean your favorite pillow. Cleaning microbead pillows properly ensures its owner many more years of comfortable rest.

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Real Estate and the AMT: Rental Or Investment Property

The Alternative Minimum Tax is a very important consideration for taxpayers who own real estate because just about every tax rule applying to real estate is different for the AMT than it is for the Regular Tax. This article on Real Estate and the AMT will address those situations where the individual holds the real estate as an investment, typically as rental property. The differences in tax treatment between the Regular Tax and the AMT can be significant.

Interest expense

Interest paid on the mortgage taken out to acquire the property is fully deductible, both for the Regular Tax and the Alternative Minimum Tax. Unlike itemized deductions that allow a tax benefit for what amounts to personal expenses, the tax law generally allows all deductions a taxpayer has to make in the pursuit of business income. Thus, the limitations discussed in the previous article on home mortgage interest do not apply.

If, however, the equity in the rental property is used as security for an additional loan – a second mortgage, for example – then the taxpayer must look to how the proceeds of that loan are used to determine interest deductibility. If the proceeds are used for a car loan or to finance a child’s education, for example, then the interest is nondeductible personal interest. If the proceeds are used to improve the rental property, the interest is deductible.

Suggestion – it is best that taxpayers keep personal borrowings separate from business borrowings. Mixing the two creates recordkeeping challenges and can result in disputes with the IRS.

Property taxes

Property taxes paid on rental or investment property are allowed in full both for Regular Tax purposes as well as for the Alternative Minimum Tax.

Planning idea – if you have an opportunity to pay your property tax bill either this year or next, pay it in a year when you have enough income from the property so as not to generate a rental loss. This strategy can help avoid triggering the passive activity loss limitations described below.

Example – in Florida property tax bills are mailed in October, and are payable under the following discount schedule: November – 4%, December – 3%, January – 2%, February – 1%. If you have a loss from the property in 2010 but expect to generate income in 2011, do not pay your bill in November or December – forgoing that small discount could help you avoid the loss-limitation rules.

Depreciation

Depreciation is allowed for property held for investment. The portion of the cost allocable to land is not depreciable, but for the building itself and the furniture, appliances, carpeting, etc. a depreciation deduction may be taken.

Real property (this is the legal definition of the house or other building) held for rental/investment may only be depreciated for Regular Tax purposes under the “straight-line” method, over a useful life of 27.5 years. Thus, a property with $275,000 allocated to the building would be depreciated at the rate of $10,000 per year.

Personal property (this is the legal definition of things such as furniture, appliances, carpeting and the like) may be depreciated for Regular Tax purposes under an “accelerated” method over a useful life of five years. An accelerated method allows a larger depreciation deduction in the early years, in recognition of an obsolescence or decline-in-value factor that you see in new property (cars are a good example).

For purposes of the AMT, however, personal property may be depreciated only by using a straight-line method. Thus, an AMT item will be generated in the early years if the accelerated method is used.

Planning idea – for personal property consider electing the straight-line method for Regular Tax purposes. While giving up a little tax benefit from the greater depreciation in the early years, it could mean avoiding paying the AMT.

Active/passive investment rules and the “at-risk” rules

A taxpayer who is not “active” in managing investment property may not use losses from rental property to offset other income such as salaries and wages, dividends, interest, capital gains, etc. Instead, these losses are deferred until the taxpayer either sells the property or generates passive income from this or other passive investment sources.

The at-risk rules similarly deny using these types of losses to the extent the taxpayer has acquired the investment with borrowed money and does not have personal liability on the debt.

Planning idea

If these loss limitations apply, consider the planning ideas mentioned above to minimize the losses being generated each year. They are not doing you any good anyway.

Sale of the property

Several different AMT issues can arise on the sale of rental/investment property. One is that your gain or loss may be different for the AMT than it is for Regular Tax purposes. This would be caused if different depreciation methods were used. For example, if the personal property was depreciated using an accelerated method for Regular Tax purposes, then the basis in that property when calculating gain or loss on sale would be different because the straight-line method had to be used for Alternative Minimum Tax purposes.

Gain on the sale of investment property generally is capital gain, although a portion may be treated as ordinary income depending on the accelerated depreciation method was used. Capital gains in and of themselves are not an AMT item, but nonetheless they can result in AMT being paid. This is because the AMT exemption amount is phased out for taxpayers at certain income levels, so this additional income can have the result of reducing the exemption which in turn increases taxable income for purposes of the Alternative Minimum Tax.

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Insurance Auto Auctions – Get Great Deals on Salvaged Cars and Trucks

Insurance auto auctions are a great way to get a great deal on salvaged cars and trucks. In fact, the company Insurance Auto Auctions is one of the most commonly used specialists in this area with auto auction locations throughout the United States. The company has been around since the early 1990s providing a variety of auto auction services for car owners, car buyers, and car sellers. If you are looking for a good way to get a car at a cheaper rate, insurance salvage deals are a great option!

Salvage vehicle auctions involve several elements – including a facilitation between buyer and seller as arranged by the Insurance Auto Auctions company. Although IAA is one of the more well known companies in this part of the automotive industry, many other companies exist with the same auto salvage specialty.

Automotive salvage occurs when an insurer considers a vehicle to be a "total loss" in insurance terminology. Essentially, this means that the vehicle is of no use to the insurance provider and the insurance carrier. When this happens, the salvaged vehicle can be sold or parted out. Many major insurance companies work with Insurance Auto Auctions, Inc. And similar companies. You will not be surprised to learn that Farmer's Insurance, and even GEICO are just some of the names on the IAA list of regular clients.

Percentage salvage auction sales are more common these days as such companies work hard to get a piece of the action! When a salvaged car is sold at rock-bottom prices, the insurance agency provider is very interested in obtaining rights to at least a small percentage of the insurance auto auction. Since this practice has become more common in recent years, more and more insurance agents and their representatives are seeking percentage shares with companies like Insurance Auto Auctions.

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