Latest news with #taxliens
Forbes
22-07-2025
- Business
- Forbes
Investing In Tax Liens And Tax Deeds Through A Self-Directed IRA
Jaime Raskulinecz, founder/CEO of Next Generation Trust Company, specializing in custodial & administrative services for self-directed IRAs. As I have shared in the past, real estate is one of the most popular alternative assets allowed in self-directed IRAs. There is one aspect of real estate investment that people may not realize they can include in their self-directed retirement account: tax liens. Using a self-directed IRA (SDIRA) or solo 401(k) plan, investors can further diversify their portfolios by including this asset class, which generates passive income and can offer high returns within a tax-advantaged plan. What Is A Tax Lien? A tax lien is a legal matter, a claim against a piece of real estate when an owner does not pay the property taxes. The property in question can be a single-family home, a multifamily property or a commercial property. The municipality in which the property is located—and which is unable to collect that tax debt—puts a lien on the property; this represents the municipality's right to foreclose on it. These liens become investment opportunities when the municipality that is trying to collect the debt (the lien holder) sells them through either a tax lien certificate or a tax lien deed. This is done at a public auction. These certificates or deeds are alternative assets that can become investments in an SDIRA or solo 401(k) for self-employed taxpayers and business owners who don't have employees (except a spouse). Compared to many other types of real estate investments, tax liens are relatively short-term (a year or a few years), which may be attractive to some investors. The Difference Between Tax Lien Certificates And Tax Lien Deeds Think of this as a loan to cover the delinquent taxes. The investor (in this case, the self-directed retirement account) pays off the taxes and interest and provides a redemption period to the property owner in which to pay back that money to the retirement account. The payments for the back taxes and interest generate investment income. If at the end of that period (usually one to three years) the property owner cannot make the debt whole, the property is transferred to the SDIRA or solo 401(k); the retirement account will then hold the deed on property it acquired for the cost of the tax debt it paid and can sell the property for additional investment income. In this scenario, the investor is bidding to buy the deed to the property without providing a grace period to the property owner. This is more of a 'one and done' transaction. The IRA or solo 401(k) with the winning bid becomes the new owner and can retain the property as an investment for the long term, fix it and flip it or sell it right away. This upfront purchase usually means paying more with smaller profit margins later, but it is a more streamlined transaction since there is no property owner to deal with after the sale is completed. The investment income stays within the tax-advantaged account and can be used to invest in other tax liens or the myriad alternative assets self-directed plans allow. Funds to renovate the property must also come from the SDIRA or 401(k) plan. Investor Beware As I always counsel my clients, make sure to do your thorough research about the property, local market values and regulations and the foreclosure process before making this self-directed investment. You can invest through a traditional or a Roth IRA, so you should consult a trusted advisor about which retirement plan makes the most sense for your overall financial situation and goals. Investing with a solo 401(k) is a bit different. You may not personally benefit from the investment (such as living in the house after the plan takes ownership, using it as a personal vacation property or renting to family members), which constitutes prohibited transactions. You also cannot buy a tax lien on a property you, certain relatives or business partners own. In self-direction, the plan custodian holds the asset and executes the investment instructions; in this case, the custodian holds the legal title to the lien 'for benefit of' your self-directed account. Your IRA custodian can explain the IRS guidelines to help you maintain your investment's tax advantages, stay compliant and avoid triggering a penalty. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
News.com.au
21-06-2025
- Entertainment
- News.com.au
Real Housewives star Teresa Giudice abruptly ends live TV interview when asked personal question
Teresa Giudice unceremoniously cut off an interview when asked about tax liens totalling over $US3 million ($4.6 million). In a clip shared via X Friday, the Real Housewives of New Jersey star, 53, fielded questions from local anchor Larry Potash at WGN9 in Chicago during a remote interview. 'How is it that a family doesn't pay their taxes for years?' Potash asked. 'Is that what the fraud charges were?' 'Um, who's – what family are you talking about?' the Bravo star asked, to which he replied, 'Your family.' 'OK,' Giudice said before attempting to end the video stream. 'Let's just hang up. That's it,' she said. Text reading 'Teresa's iPhone' could then be seen on the screen as the call ended. 'She didn't like that question,' marvelled Potash. 'Yeah. Well,' responded his co-anchor in the awkward clip. In an X re-post of the video, Potash quipped, 'In the words of one of our viewers, she evaded that question like …taxes.' Giudice owes $US303,889.20 ($470,000) in tax liens, according to documents obtained by Page Six back in March. Her husband, Louis 'Luis' Ruelas, whom she married in 2022, owes upwards of $US2.6 million ($4 million). The former Dancing With the Stars star was married to Joe Giudice for 20 years before their 2020 split. And prior to that, both served time in prison for mail, wire and bankruptcy fraud. Teresa was behind bars for 11 months in 2015. Joe, meanwhile, spent two years in prison before being released in 2019 and subsequently deported to his birthplace of Italy. The former couple shares daughters Gia, Gabriella, Milania and Audriana. Teresa's lookalike daughter Gia, 24, downplayed the family debt during a March episode of her Casual Chaos iHeart podcast. 'Let's start from the beginning,' she said. 'My mum has been the sole provider for my sisters and I since the minute my father [Joe] left for prison. The second my mum got home from jail, she has been working her arse off to make sure that my sisters and I live a stable life and that my family is financially stable.' Gia continued, saying she 'can't stress enough' how hard her 'mum has worked' and assured her listeners that 'everything will be resolved.' 'My mum has everything under control, and there's nothing to worry about,' she explained.
CBS News
18-05-2025
- Business
- CBS News
Lauderdale Lakes adopted budget shows increased revenue through code enforcement
Code inspections, months-long delays and fines are causing frustrations for some residents of Lauderdale Lakes. CBS News Miami investigated the matter and uncovered budgeted plans to raise revenue through code enforcement as taxpayers fight six-figure liens caused by code compliance delays. "It's shocking," attorney Ari Pregen, who represents three taxpayers facing liens, said. Fines to generate revenue In the city's adopted budget for fiscal year 2025, the Lauderdale Lakes city manager said "revenues that support specific activities remained flat," the document said. The city manager added that "future years may not be able to absorb increases in expense with no adjustments to fees." "During the upcoming fiscal year, staff has been challenged to seek strategies to reduce expenses and/or create new revenue opportunities," the document said. Under General Fund revenues, staff projected $300,000 from code enforcement liens and another $4,000 from code compliance citations, according to the budget. That is a 161.6% increase, the document said. "Obviously, times are tough," Pregen said. "But what they're trying to do is illegal. We have the excessive fines clause for a reason. It prohibits excessive fines." City leaders fail to address questions CBS News Miami called Mayor Veronica Edwards Phillips for an explanation and left a voicemail. She did not return the message. This came after she and Commissioner Easton Harrison declined comment ata Chamber of Commerce event Thursday. CBS News Miami also emailed every member of the city commission for comment. None replied. A city spokesperson told CBS News Miami to present questions during public comment of Wednesday's commission meeting. No one on the commission answered those questions, either. "It's egregious," Alan Levy, broker and president of Levy Realty Advisors. said. "There's no excuse." Fines mount after days of waiting for inspections Three years ago, one of Levy's tenants remodeled an office and made a bathroom accessible without proper permits, Levy said. His company spent thousands to satisfy code compliance officers. However, it took more than 1,000 days to verify full compliance. During that time, fines accumulated and the company's lien is $740,000. Kenneth Bordeaux, 82, and his wife Mildred, 80, face $366,000 worth of liens on their duplex. The couple waited more than 220 days for inspectors to verify repairs to violations including a broken window handle and cracked electrical outlet cover. "I don't have much longer," Kenneth Bordeaux said Wednesday. "I bet my life on it." Now, their main source of income and the asset the couple hopes to pass on to their family is in limbo. "I feel like I'm just being beaten with a sledgehammer," Bordeaux said. "I don't understand it." A city spokesperson told CBS News Miami Thursday that "because the matters are pending litigation before a magistrate it would be inappropriate to comment." Pregen and his clients hope staff is willing to change soon.
