Tag Archives: investment

Do home improvements really add value?

Posted on September 29, 2011 by admin| 8 Comments

You see it on HGTV and elswhere on TV. “Upgrade your kitchen and recoup 98% of the investment!” “Repaint the exterior and recoup 120% of the investment!” The list goes on. Has anyone actually checked to see if you really do recoup home improvement investment in the form of higher resale value? How can you really be sure, because it’s not like you actually get two appraisals from an appraiser, one for before improvement and the other for after improvement. Or is this a conspiracy by home centers?
I understand what all of you are saying, and I have heard it before. But where’s the proof? Does anyone know how such data were actually obtained?

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Posted in Home Improvement

Tagged elswhere, exterior, HGTV, Home, improvement, investment, kitchen, Repaint, Upgrade, value

Superior Manufacturing is thinking of launching a new product. The company expects to sell $950,000 of the ne

Posted on September 20, 2011 by admin| 2 Comments

Superior Manufacturing is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and materials will be 55% of sales. Indirect incremental costs are estimated at $80,000 a year. The project requires a new plant that will cost a total of $1,000,000, which will be depreciated straight line over the next five years. The new line will also require an additional net investment in inventory and receivables in the amount of $200,000. Assume there is no need for additional investment in building and land for the project. The firm’s marginal tax rate is 35%, and its cost of capital is 10%. Based on this information you are to complete the following tasks.

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Posted in Land For Sale

Tagged Company, investment, labor, Line, Manufacturing, plant, product, project, Superior, thinking, year

If you’ve recently sold an investment home, but don’t qualify for a 1031, can you ?

Posted on September 16, 2011 by admin| 1 Comment

Can you start an LLC with the profits, buy new investment properties and defer the tax from the original sale until a later date? My client took possesion of the funds after the sale, and therefor, cannot take advantage of the 1031 option. Once funds are in the sellers hands, it’s too late.

He wants to buy more investment properties with the profit, and would like to put off paying tax as long as possible.

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Posted in Homes For Sale

Tagged cannot, client, date, Home, investment, INVESTMENT PROPERTIES, LLC, possesion, profits, sale, tax, therefor