Archive for January, 2007
Interest rate swaps
"If you're in a poker game and you don't know who the patsy is, you're the patsy". Warren Buffet Today's Bloomberg: The Reading, Pennsylvania school district must pay $230,000 to Deutsche Bank because it is on the losing side of a wager on long-term interest rates. Excerpts from the article:“It was all done in a [...]
Posted: January 17th, 2007 under Uncategorized.
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Private Annuity Trusts
Today's Wall Street Journal has an article on a proposed ruling that will largely eliminate the tax benefits of a private annuity trust. The ruling disallows the tax-deferral and instead requires immediate tax payment on the present value of the annuity payments. Private annuity trusts are a highly specialized tool that have been over-marketed as [...]
Posted: January 16th, 2007 under Tax-Exempt Strategies.
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Why interest rates are going up
I recently had lunch with a real estate broker, who was gloating over the sale of a $600,000 “starter” house. The buyer was currently serving a seven-year prison sentence. How do you buy a house from prison? Stated income, on a 100%, interest-only mortgage. The builder paid the closing costs. In fact, said the broker, [...]
Posted: January 14th, 2007 under Asset Management.
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Tenant-in Common Properties
An Advisor’s Guide
The following is from a brochure we distribute to commercial real estate brokers, for clients evaluating their tax and reinvestment options as they reposition in the current market: The Tenant-in-Common industry has exploded since the IRS clarified the guidelines for a 1031 exchange. Each year, an increasing volume of TIC properties are marketed through the [...]
Posted: January 5th, 2007 under Tax-Exempt Strategies.
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