Do You Get Jealous from Those Folks Getting Thousands of Dollars?

You probably lost counts on how many times you watched those
infomercials from people getting fat checks from their "so-called"
great deals in home foreclosures investment.

Does is make you wonder if these folks are even for real? Well,
there are even some of them advertising buying homes for zero down
payment and claiming they received checks in thousands of dollars!

It might be true or not that they really received these checks
with their name on it. The problem is that's just half of the
story. The question is "were they able to keep ALL of that money"?

I think they forgot to say how much they have to pay in taxes
after getting that big checks. Let's just say that one of the
guys from the infomercials received a $50,000-check.
And it looked like that average time they were able to sell
their investment home is less than a year. So...that profit
will get taxed as a regular income for at least 28%!(IRS ruling
for short term capital gains).

Now, let's see $50k - $14k(28% of $50k) = $36,000...ouch!
$14,000 went back to Uncle Sam, that's a lot of money.

The moral of the story here is don't get too bogged down
from those inflated claims on what you on tv. It may not
be exactly to what you see and hear. It pays to know taxes
when it comes making lots of money or else you could wind
up losing a lot of money too.

Next time you see somebody claiming that he/she received
thousands of dollars from investing in home foreclosures,
don't forget to subtract taxes...it's a lot for sure.
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Written by Resty Malia
Buying a Home Foreclosures