Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
[[After several years of recovery for bad "real estate" investments (including some
rotten luck), I now need to consider protection from taxes.]]

Fine...just don't let the tax tail wag the dog.

[[ My only tax
deduction is my mortgage which will still have me paying around 14-16K in
taxes. My advisor is talking about tax credits from low income housing
investments. It looks good on paper, but I don't know anyone that has done this
before. Does anyone out there have any insights into this protection; pros; cons,
etc. I'm a little nervous because it ties up a lot of money for many years.]]

I have had a few clients that have been "sold" these "tax credit" investments. Of about 4 clients that invested, only one still has a good feeling about the deal...and only a good feeling...not a great feeling.

The other three have blow away to the winds, the initial cash investment was lost, as were the tax credits. And you'll not find too many "new" programs in the low income housing credit area, since the Congress keeps threatening to axe the credit all together. They have found that the low income housing attached to the credit just doesn't work like they thought it would. And they continue to make noises to axe the credit, and would most likely NOT grandfather anybody who has already gotten into those tax shelter problems.

I personally don't care for 'em, and would use my investment money to find a good stock. But that's just me.

TMF Taxes
Roy

Want to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. It'll help you with your 1998 taxes, and it's never to early to start planning for your 1999 taxes. So just click on this link (http://www.foolmart.com/market/product.asp?pfid=MF+013+I) to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on http://www.fool.com/school/taxes/taxes.htm and you'll be right at the home page. Pay special attention to the "archives" section. Check it out. Finally, if you need to get to the IRS web site, click on http://www.irs.ustreas.gov to go directly there.
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.