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5 Passive Income Tax Benefits You Can’t Afford To Ignore

5 Passive Income Tax Benefits You Can’t Afford To Ignore

http://www.fortunebuilders.com/5-passive-income-tax-benefits/?utm_source=featured&utm_medium=email&utm_campaign=newsletter&utm_content=07262016

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Let’s be honest; few things can compete with a quality passive income portfolio that has already proven capable of generating cash flow. With most of the work done up front and the right precautions taken, it is entirely possible to sit back and collect rent checks for as long as you own the property. Who doesn’t like the sound of that?

However, while most are familiar with the concept of a passive income rental property, few are actually aware of just how good of an investment they can be. Of course the right property will attract tenants with monthly cash flow, but it is important to note that the benefits of a rental property extend far beyond that of the capital they bring in. In fact, you could argue that the cash flow is an added bonus, coming in a close second to tax benefits. For what it’s worth, the tax benefits associated with a passive income property can very well be the most attractive asset sought out by landlords.

Everyone knows how profitable the right passive income property in the ideal location can be, but the same properties often coincide with more impressive tax benefits and deductions. However, far too many investors overlook the deductions they can make when it comes time to file their taxes. Having said that, approaching tax season with an acute attention to detail and an understanding of the deductions awarded to passive income investors can mean the difference between a profitable rental property and losing money on your real estate venture.

If you own a rental property, investor or not, you are entitled to certain deductions by the Internal Revenue Service (IRS). That said, nobody is going to hold your hand and tell you which deductions you can legally make; it’s up to you to familiarize yourself with them. So whether you are a passive income investor yourself, or are simply curious as to which deductions landlords can make come tax time, here are a few of the passive income tax benefits you won’t want to miss out on:

landlord pays on their mortgage isn’t their biggest expense, it is certainly close to it. Even with rates as low as they are today, interest payments are a sizable cost that needs to be accounted for. Nonetheless, for as intimidating as interest payments can be, they are not without their benefits. Mortgage interest has become synonymous with one of the largest deductions landlords can make. Passive income investors can deduct mortgage interest payments on loans used to acquire or improve a rental property. However, it is important to note that they can also deduct the interest paid on credit cards specifically used to to maintain rental property activity.

2. Repairs: Slightly more ambiguous than their interest deduction counterpart, repairs can only be deducted in the event that they are ordinary, necessary, and reasonable in amount. That said, repairs can only be deducted in the year in which they are made. Common repairs that can be deducted from your taxes come April are fixing leaks, repainting, plastering, replacing broken windows and fixing floors.

It is important to note, however, that repairs and improvements are not one in the same; there are slight differences between the two. As a passive income investor, it is in your best interest to differentiate between repairs and improvements. For clarification, I would like to refer you to how the IRS defines an improvement:

* The changes make a long-term asset much better than it was before

* The changes restore a subject asset to operating condition

* The changes adapt an asset to a new use

If you are looking to deduct repairs, they can’t fall within any of the aforementioned categories. Instead, to be able to deduct repairs from your passive income property, any expenses you incur can’t result in the betterment, restoration or adaptation of a property’s features.

3. Travel Resulting From Rental Activity: Far too many passive income investors are not aware of the tax deductions that extend beyond the physical upkeep of a property. Having said that, it is entirely possible to deduct the amount of money you spend traveling for the sake of running and maintaining the property. Anywhere you drive for the sake of the rental, which includes visits to the property itself, can mount to travel expenses. Most notably, you can deduct the actual expenses incurred while traveling (gas, upkeep, repairs, etc). To clarify, travel expenses must be common, helpful, appropriate for your rental activity and — above all else — be solely for rental activities. Much like the repairs made on a property, deductions resulting from travel costs must be made in the same year they were incurred.

4. Home Office: Passive income investors, not unlike most professionals that work from home, are allowed to deduct their home office; provided it meets the minimal criteria. What’s more, this deduction helps both renters and homeowners. You can deduct your home office whether you on the home it is in or are simply renting it. However, like every other deduction on this list, the home office must meet certain requirements to qualify for a deduction.

According to NOLO, “the home office deduction is available only if you are running a bona fide business.” That means any work dedicated to your passive income property from the confines of your own home can’t be a hobby. “If the IRS decides that you are indulging a hobby rather than trying to earn a profit, it won’t let you take the home office deduction.”

If you are going to claim a home office deduction, it is in your best interest to prepare to prove said claim. The following steps will help you confirm your home office is the result of a legit business:

* Photograph your home office to include in your tax folder. Be sure to include a diagram showing the relative size of the office to the living space.

* Route any mail for your business to your home office address.

* Include your home address on business cards and stationary of a similar nature.

* Install a separate phone line to be used solely for business purposes.

* Keep a log of any clients or customers that visit your home office.

* Don’t forget to keep track of the time you spend working at home.

5. Depreciation: Otherwise known as depreciation losses, depreciation tax write-offs are essentially the most important tax deduction in a passive income investor’s arsenal. As their name suggests, depreciation losses permit the owners of rental properties to write off the cost of the home over a predetermined period of time. The subject property is essentially a business expense, and therefore can be written off.

However, you can’t write off the entire cost of the property in the same year. Instead, the IRS will spread the deduction out over the predetermined life of the home, which — according to the IRS — is 27.5 years. That means passive income property owners can deduct a portion of of the cost of the home every year for nearly 28 years.

The IRS defines depreciation losses as “allowances for exhaustion, wear and tear (including obsolescence) of property.” According to their website, “You begin to depreciate your rental property when you place it in service. You can recover some or all of your original acquisition cost and the cost of improvements by using Form 4562, Depreciation and Amortization, (to report depreciation) beginning in the year your rental property is first placed in service, and beginning in any year you make improvements or add furnishings.”

This passive income tax benefit is to account for the perceived loss in value associated with aging assets. If for nothing else, homes depreciate in value everyday in the eyes of the IRS. This is a way for homeowners to make up for allegedly lost capital. However, and this is the real kicker, while homes may depreciate in value in the eyes of the IRS, properties actually appreciate more often than they depreciate. More often than not, the loss never actually occurs. Homeowners are therefore able to take advantage of deductions without their asset depreciating. It’s almost too good to be true.

Passive income tax benefits have the potential to turn a good rental property into a great one. However, as I said before, nobody is going to hold your hand and tell you to claim the appropriate deductions; you need to make sure you know what is within your legal right to deduct. I encourage all passive income investors to consult a certified public accountant (CPA) to confirm that they are, in fact, taking advantage of all the deductions made available. Please take note of the passive income tax benefits you qualify for and see to it they contribute to your bottom line instead of taking away from it

مواعيد الصلاة

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<center> <form method=GET target="_blank" action="http://www.islamicfinder.org/cityPrayer.php"> <table border=0 bordercolor="#008C8C"  class = "IslamicData" bgcolor="#008C8C" dir= cellspacing=1 cellpadding=1> <tr><td bgcolor="#008C8C" >

<center><font color="#FFFFFF">Prayer Times For 6 Million Cities Worldwide</font></center>

</td>

</tr>

<tr>

<td class = "IslamicData" bgcolor="#FFFFFF">  Country: <select class=ft11 name="country"> <option value=none>Select a country</option>

<option value=afghanistan>Afghanistan</option>

<option value=albania>Albania</option>

<option value=algeria>Algeria</option>

<option value=andorra>Andorra</option>

<option value=angola>Angola</option>

<option value=anguilla>Anguilla</option>

<option value=antarctica>Antarctica</option>

<option value=antigua_barbuda>Antigua Barbuda</option>

<option value=argentina>Argentina</option>

<option value=armenia>Armenia</option>

<option value=aruba>Aruba</option>

<option value=ashmore_cartier_islands>Ashmore Cartier Islands</option>

<option value=australia>Australia</option>

<option value=austria>Austria</option>

<option value=azerbaijan>Azerbaijan</option>

<option value=bahamas>Bahamas</option>

<option value=bahrain>Bahrain</option>

<option value=bangladesh>Bangladesh</option>

<option value=barbados>Barbados</option>

<option value=bassas_de_india>Bassas De India</option>

<option value=belarus>Belarus</option>

<option value=belgium>Belgium</option>

<option value=belize>Belize</option>

<option value=benin>Benin</option>

<option value=bermuda>Bermuda</option>

<option value=bhutan>Bhutan</option>

<option value=bolivia>Bolivia</option>

<option value=bosnia_herzegovina>Bosnia Herzegovina</option>

<option value=botswana>Botswana</option>

<option value=bouvet_island>Bouvet Island</option>

<option value=brazil>Brazil</option>

<option value=british_indian_ocean_territory>British Indian Ocean Ter..</option>

<option value=british_virgin_islands>British Virgin Islands</option>

<option value=brunei_darussalam>Brunei Darussalam</option>

<option value=bulgaria>Bulgaria</option>

<option value=burkina_faso>Burkina Faso</option>

<option value=Burma>Burma</option>

<option value=burundi>Burundi</option>

<option value=cambodia>Cambodia</option>

<option value=cameroon>Cameroon</option>

<option value=canada>Canada</option>

<option value=cape_verde>Cape Verde</option>

<option value=cayman_islands>Cayman_Islands</option>

<option value=central_african_republic>Central African Republic</option>

<option value=chad>Chad</option>

<option value=chile>Chile</option>

<option value=china>China</option>

<option value=christmas_island>Christmas Island</option>

<option value=clipperton_island>Clipperton Island</option>

<option value=cocos_islands>Cocos Islands</option>

<option value=colombia>Colombia</option>

<option value=comoros>Comoros</option>

<option value=congo>Congo</option>

<option value=congo_democratic_republic>Congo Democratic Republic</option>

<option value=cook_islands>Cook Islands</option>

<option value=coral_sea_islands>Coral Sea Islands</option>

<option value=costa_rica>Costa Rica</option>

<option value=cote_dlvoire>Cote Dlvoire</option>

<option value=croatia>Croatia</option>

<option value=cuba>Cuba</option>

<option value=cyprus>Cyprus</option>

<option value=czech_republic>Czech_republic</option>

<option value=denmark>Denmark</option>

<option value=djibouti>Djibouti</option>

<option value=dominica>Dominica</option>

<option value=dominican_republic>Dominican Republic</option>

<option value=east_timor>East Timor</option>

<option value=ecuador>Ecuador</option>

<option value=egypt>Egypt</option>

<option value=el_salvador>El Salvador</option>

<option value=equatorial_guinea>Equatorial Guinea</option>

<option value=eritrea>Eritrea</option>

<option value=estonia>Estonia</option>

<option value=ethiopia>Ethiopia</option>

<option value=europa_island>Europa Island</option>

<option value=falkland_islands_malvinas>Falkland Islands Malvinas</option>

<option value=faroe_islands>Faroe Islands</option>

<option value=fiji>Fiji</option>

<option value=finland>Finland</option>

<option value=france>France</option>

<option value=french_guiana>French Guiana</option>

<option value=french_polynesia>French Polynesia</option>

<option value=french_southern_antarctic_lands>French S. Antarctic Lands</option>

<option value=gabon>Gabon</option>

<option value=gambia>Gambia</option>

<option value=georgia>Georgia</option>

<option value=germany>Germany</option>

<option value=ghana>Ghana</option>

<option value=gibraltar>Gibraltar</option>

<option value=glorioso_islands>Glorioso Islands</option>

<option value=greece>Greece</option>

<option value=greenland>Greenland</option>

<option value=grenada>Grenada</option>

<option value=guadeloupe>Guadeloupe</option>

<option value=guatemala>Guatemala</option>

<option value=guernsey>guernsey</option>

<option value=guinea>Guinea</option>

<option value=guinea_bissau>Guinea Bissau</option>

<option value=guyana>Guyana</option>

<option value=haiti>Haiti</option>

<option value=heard_island_mcdonald_islands>Heard Is. Mcdonald Is.</option>

<option value=honduras>Honduras</option>

<option value=hong_kong>Hong Kong</option>

<option value=hungary>Hungary</option>

<option value=iceland>Iceland</option>

<option value=india>India</option>

<option value=indonesia>Indonesia</option>

<option value=iran>Iran</option>

<option value=iraq>Iraq</option>

<option value=ireland>Ireland</option>

<option value=isle_of_man>Isle Of Man</option>

<option value=italy>Italy</option>

<option value=jamaica>Jamaica</option>

<option value=jan_mayen>Jan Mayen</option>

<option value=japan>Japan</option>

<option value=jersey>jersey</option>

<option value=jordan>Jordan</option>

<option value=juan_de_nova_island>Juan De Nova Island</option>

<option value=kazakstan>Kazakstan</option>

<option value=kenya>Kenya</option>

<option value=kiribati>Kiribati</option>

<option value=kuwait>Kuwait</option>

<option value=kyrgyzstan>Kyrgyzstan</option>

<option value=lao_peoples_democratic_republic>Lao Peoples Dem. Rep.</option>

<option value=latvia>Latvia</option>

<option value=lebanon>Lebanon</option>

<option value=lesotho>Lesotho</option>

<option value=liberia>Liberia</option>

<option value=libya>Libya</option>

<option value=liechtenstein>Liechtenstein</option>

<option value=lithuania>Lithuania</option>

<option value=luxembourg>Luxembourg</option>

<option value=macau>Macau</option>

<option value=macedonia>Macedonia</option>

<option value=madagascar>Madagascar</option>

<option value=malawi>Malawi</option>

<option value=malaysia>Malaysia</option>

<option value=maldives>Maldives</option>

<option value=mali>Mali</option>

<option value=malta>Malta</option>

<option value=marshall_islands>Marshall Islands</option>

<option value=martinique>Martinique</option>

<option value=mauritania>Mauritania</option>

<option value=mauritius>Mauritius</option>

<option value=mayotte>Mayotte</option>

<option value=mexico>Mexico</option>

<option value=micronesia>Micronesia</option>

<option value=moldova>Moldova</option>

<option value=monaco>Monaco</option>

<option value=mongolia>Mongolia</option>

<option value=montserrat>Montserrat</option>

<option value=morocco>Morocco</option>

<option value=mozambique>Mozambique</option>

<option value=namibia>Namibia</option>

<option value=nauru>Nauru</option>

<option value=nepal>Nepal</option>

<option value=netherlands>Netherlands</option>

<option value=netherlands_antilles>Netherlands Antilles</option>

<option value=new_caledonia>New Caledonia</option>

<option value=new_zealand>New Zealand</option>

<option value=nicaragua>Nicaragua</option>

<option value=niger>Niger</option>

<option value=nigeria>Nigeria</option>

<option value=niue>Niue</option>

<option value=no_mans_land>No Mans Land</option>

<option value=norfolk_island>Norfolk Island</option>

<option value=north_korea>North Korea</option>

<option value=norway>Norway</option>

<option value=oceans>Oceans</option>

<option value=oman>Oman</option>

<option value=pakistan>Pakistan</option>

<option value=palau>Palau</option>

<option value=palestine>Palestine</option>

<option value=panama>Panama</option>

<option value=papua_new_guinea>Papua New Guinea</option>

<option value=paracel_islands>Paracel Islands</option>

<option value=paraguay>Paraguay</option>

<option value=peru>Peru</option>

<option value=philippines>Philippines</option>

<option value=pitcairn_islands>Pitcairn Islands</option>

<option value=poland>Poland</option>

<option value=portugal>Portugal</option>

<option value=puerto_rico>Puerto Rico</option>

<option value=qatar>Qatar</option>

<option value=reunion>Reunion</option>

<option value=romania>Romania</option>

<option value=russia>Russia</option>

<option value=rwanda>Rwanda</option>

<option value=saint_helena>Saint Helena</option>

<option value=saint_kitts_nevis>Saint Kitts Nevis</option>

<option value=saint_lucia>Saint Lucia</option>

<option value=saint_pierre_miquelon>Saint Pierre Miquelon</option>

<option value=saint_vincent_grenadines>Saint Vincent Grenadines</option>

<option value=samoa>Samoa</option>

<option value=san_marino>San Marino</option>

<option value=sao_tome_and_principe>Sao Tome and Principe</option>

<option value=saudi_arabia>Saudi Arabia</option>

<option value=senegal>Senegal</option>

<option value=seychelles>Seychelles</option>

<option value=sierra_leone>Sierra Leone</option>

<option value=singapore>Singapore</option>

<option value=slovakia>Slovakia</option>

<option value=slovenia>Slovenia</option>

<option value=solomon_islands>Solomon_islands</option>

<option value=somalia>Somalia</option>

<option value=south_africa>South Africa</option>

<option value=south_georgia_the_south_sandwitch_islands>S. Georgia S. Sandwitch Is.</option>

<option value=south_korea>South Korea</option>

<option value=spain>Spain</option>

<option value=spratly_islands>Spratly Islands</option>

<option value=sri_lanka>Sri Lanka</option>

<option value=sudan>Sudan</option>

<option value=suriname>Suriname</option>

<option value=svalbard_and_jan_mayen>Svalbard & Jan Mayen</option>

<option value=swaziland>Swaziland</option>

<option value=sweden>Sweden</option>

<option value=switzerland>Switzerland</option>

<option value=syria>Syria</option>

<option value=taiwan>Taiwan</option>

<option value=tajikistan>Tajikistan</option>

<option value=tanzania>Tanzania</option>

<option value=thailand>Thailand</option>

<option value=togo>Togo</option>

<option value=tokelau>Tokelau</option>

<option value=tonga>Tonga</option>

<option value=trinidad_tobago>Trinidad Tobago</option>

<option value=tromelin_island>Tromelin Island</option>

<option value=tunisia>Tunisia</option>

<option value=turkey>Turkey</option>

<option value=turkmenistan>Turkmenistan</option>

<option value=turks_caicos_islands>Turks Caicos Islands</option>

<option value=tuvalu>Tuvalu</option>

<option value=uganda>Uganda</option>

<option value=ukraine>Ukraine</option>

<option value=under_sea_features>Under Sea Features</option>

<option value=united_arab_emirates>United Arab Emirates</option>

<option value=united_kingdom>United Kingdom</option>

<option value=uruguay>Uruguay</option>

<option value=us_virgin_islands>US Virgin Islands</option>

<option value=usa>USA</option>

<option value=uzbekistan>Uzbekistan</option>

<option value=vanuatu>Vanuatu</option>

<option value=vatican_city>Vatican City</option>

<option value=venezuela>Venezuela</option>

<option value=viet_nam>Viet Nam</option>

<option value=wallis_futuna>Wallis Futuna</option>

<option value=west_bank>West Bank</option>

<option value=yemen>Yemen</option>

<option value=yugoslavia>Yugoslavia</option>

<option value=zambia>Zambia</option>

<option value=zimbabwe>Zimbabwe</option>  

</select>   <input class="ft11" type="submit" value="Go"> </td>

     </tr>

</table>

</form>

</center> 

How to pick up a whole tree of olives in 7 seconds

It may take several hours to pick the olives from a single tree but with this machine it only takes about 7 seconds watch the video. قد تستغرق عدة ساعات لقطف ثمار شجرة زيتون واحدة، الا انها تستغرق  ٧ توانٍ فقط لقطف الشجرة باستخدام هذه الآلة  انظر الى الفيديو 

https://youtu.be/GKF_axA9zog

Partial sale of property, County purchased 5' of my property - TurboTax Support

HOW TO REPORT PARTIAL SALES



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Partial sale of property, County purchased 5' of my property - TurboTax Support:



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The IRS gets a copy of that 1099-S, so they expect to see it reported on your return. You have two choices. I would use #1, although #2 is what the IRS probably thinks you should do
1. Report the  gross  income (see below for how to enter) then show the same amount as your basis, for a net gain of 0. On your own records, reduce your cost basis by that amount for future sale. 
2. The portion that is "damages" (the tree) is only a reduction in cost basis. You have to estimate or guess what the cost basis in the land that was taken is. The cost basis you show on your tax return is that number plus the damages portion of the 1099. Your real estate tax bill is a good place to start. For example if the tax bill says 25% of the total assessment is for land, and you sold 10% of your land; then a good estimate of your cost basis is: 0.25 x 0.10 x original purchase price. You reduce your cost basis in the remaining property by the amount you claim as basis on this "sale".

There is a a tax exclusion for the sale of a home, or partial sale. So, even if you go thru the complicated procedure for #2, you end up owing the government nothing.

TurboTax does not have an entry point for a 1099-S (other than home sale). So, for option #1 In TurboTax (TT), enter at:
- Federal Taxes tab
 - Wages & Income
- “I’ll choose what I work on” Button
Scroll down to:
-Investment Income
   -Stocks, mutual funds, Bonds, Other (Real estate is other)

For option #2, type> home - sale of home <in the search box

How to Get a Perfect 850 FICO Credit Score Automatically - Yahoo Finance

How to Get a Perfect 850 FICO Credit Score Automatically

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These days the web is full of stories about how to massage your credit history and score to look your best to lenders. On this site and others, you’ve probably seen stories like “7 Fast Ways to Raise Your Credit Score” and “5 Do’s and 4 Don’ts to Repair Your Credit.”

While these stories are helpful, if you’re seeking a perfect credit score, you don’t need them.

Over the 25 years I’ve been doing personal finance news, I’ve done countless articles and TV stories about managing, improving and restoring credit. But here’s a confession. I’ve used few, if any, of the tips I’ve offered. Yet, my FICO credit score was recently a perfect 850. That’s it in the picture above.

So how did I ignore common wisdom, yet end up with a perfect score? Here are the rules I followed.

Rule number 1: No income, no borrow

Some of those with credit problems today earned their bad marks at an early age. This is partially their fault and partially the fault of the lending industry.

When I was in college back in the 1970s, the credit game was simple: If you were a student and had no income, you couldn’t get a credit card or otherwise borrow, period.

This, of course, is perfectly logical. What idiot would lend money to someone with no means of repaying it? Conversely, what idiot would borrow money, especially at exorbitant interest rates, that they can’t hope to repay?

Fast forward a few decades and the world is now full of lending, and borrowing, idiots. For many years now, banks have been invading campuses, throwing credit cards at any student who can fog a mirror. And those students have been happily gobbling them up, some apparently with little thought of what happens when you’re charged 15 percent interest on money you can’t immediately repay.

The result of this behavior is depressingly predictable. For banks, uncollectible accounts, big write-offs and fat losses. For students, credit damage that takes weeks to create and years to resolve.

I got my first credit card at age 21, shortly after I got my first job. In the 40 years since, I’ve rarely carried a balance and never paid a bill late.

This is not because I’m particularly responsible. It’s because I was brought up to believe credit is dangerous, so should be used sparingly. These days, many kids are apparently raised to believe credit is not only benign, it’s a part of growing up. Like learning to drive, it’s something everyone needs to experience at the earliest possible age. It’s an American birthright.

Watch the video of ‘How to Get a Perfect 850 FICO Credit Score Automatically’ on MoneyTalksNews.com.

Today’s attitude didn’t happen by accident. Lenders took a page from the tobacco marketers’ handbook. They used advertising, along with everything else at their disposal, to carefully craft a message: Credit is your friend, it’s what you’re supposed to use, and the sooner the better.

As with tobacco, the goal was to create a generation of addicts. As with tobacco, it worked splendidly.

If you want to have a perfect credit score, don’t use credit to pad your lifestyle or borrow money you don’t have. And if you want your kids to have a perfect credit score, let them leave home without their American Express card, but don’t let them leave home without this simple lesson.

Rule number 2: Spend less than you make

As I said above, I’ve never paid a bill late. That’s not because I’ve always been wealthy and it’s not because I’ve never lost a job, gotten divorced or otherwise experienced financial catastrophe.

The secret? Spending less than you make. Do this, and you’ll automatically create a cash cushion that will come in handy when push inevitably comes to shove. Fail to do this, and when your back is against the wall, you’ll borrow money you can’t immediately pay back and put your potentially perfect credit score at risk.

Obviously, there are situations that will derail even the best laid plans. That’s life. But the bigger the cushion you can accumulate, and the sooner you do it, the better your odds of achieving and maintaining a perfect credit score.

Rule number 3: Never borrow to buy things that go down in value

Keeping a perfect credit score doesn’t mean not using credit. As I said, I got my first credit card at 21 and still use them often. And I’ve also borrowed more than a million dollars over the years, primarily in the form of mortgage loans.

What I’ve skipped for the most part, however, is borrowing money to buy depreciating assets, like vacations, cars and clothes.

When I graduated from college, my parents gave me a used Toyota. Within weeks, I sold it and used the money for the down payment on my first home. I then went to a credit union and borrowed money to buy a classic 1958 Triumph TR3. That was my first and only car loan. I drove that car for a couple of years, sold it for more than I paid for it, then bought a used car for cash.

From that day to this, cash is how I’ve paid for cars. How could I afford new cars? Simple. I’ve never owned one. Today I drive a Mercedes that cost its first owner more than $100,000. They drove it 30,000 miles, then sold it to me for $45,000.

It’s this simple: When you borrow, you’re paying someone to temporarily use their money. If what you buy with that money goes up in value by more than what you pay to use it, you get richer. If it doesn’t, you get poorer. And if you can’t pay it back on time, you get a credit score that’s less than perfect.

Rule number 4: Don’t micromanage

These days the internet is full of websites and expensive services that urge you to continually track your credit score. Well, here’s a secret: If you have to constantly monitor your credit and micromanage your score, you’re doing it wrong.

That’s not to say you shouldn’t keep an eye on your credit. You should, especially when you’re about to show it to a lender, landlord, insurance company or potential employer. But if you follow simple rules, you won’t need to micromanage your score and you won’t need credit websites and services or stories about credit hacks.

Want perfect credit? Here’s all the advice you need: Don’t screw up. Pay your bills on time, every time, for long periods of time. Do that and one day you’ll have a perfect score automatically.

This article was originally published on MoneyTalksNews.com as 'How to Get a Perfect 850 FICO Credit Score Automatically'.

TIPS FOR NEW MOMS TO BE...,

Welcome to motherhood! 

Being a new mother is hard, but here are some tips that I hope will make life little easier on decisions on what you need, and what you might want to look for in quality. I put together a list of items that are essential for making life easier with a new baby.  I have used all of these products and loved them all. The * means you definitely need as a new mom.  It was hard not to put a * next to everything on the list because they all are so important.

Drunk cop giving a sobriety test. Yes, the COP is Drunk!

The 6 Tax Deductions That Save You the Most Money - Taxes

The 6 Tax Deductions That Save You the Most Money - Taxes:

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It’s that time of year when the taxman wants your money. But thanks to the tax code, there are many deductions that can help keep cash in your pocket instead of going to Uncle Sam.

“No one deduction is better than any other deduction,” says Jackie Perlman, senior tax research analyst with the Tax Institute at H&R Block. “It depends on your circumstances, your filing status and your tax bracket. Generally, the higher the tax bracket, the more valuable the tax deduction.”

Still, a handful of standby deductions can be very lucrative for many taxpayers. Here are the six deductions you don’t want to miss.

1. Medical expense deduction: 9 million returns used this deduction in 2013, with an average deduction of $9,392.

This can be a helpful deduction if you have a high-deductible health insurance and a big-time medical event in one year. You can deduct qualified medical expenses that exceed 10 percent of your adjusted gross income, or AGI, which is your taxable income minus above-the-line deductions. Say your AGI is $50,000. Ten percent of that is $5,000, which means you can deduct only the amount that exceeds $5,000. If you have $6,500 of medical expenses, you can deduct $1,500 as a medical expense.

Related: 10 Important Tax Dates for 2016

This year, taxpayers 65 and older are allowed to deduct medical expenses that exceed 7.5 percent of AGI, an improvement over the 10 percent rule. The IRS spells out which medical deductions qualify. And remember, expenses are only eligible if they were not reimbursed by an insurer or employer.

2. State and local income or sales tax deduction: 42.7 million returns used this deduction in 2013, with an average deduction of $9,336 for income tax and an average deduction of $1,647for sales tax.

Since 2002, taxpayers have been able to deduct state and local sales taxes or state and local income taxes on their federal returns, but not both. For many people, the income tax deduction is usually the higher of the two. But the sales tax deduction option helps residents in states that don’t have income tax, such as Florida, Nevada, Texas, Washington, Wyoming and South Dakota. Residents in states with a high sales tax or taxpayers who made a huge purchase subject to a sales tax like a car, boat or RV, may find the sales tax deduction more beneficial than the income tax one.

Related: Filing Alert – How Obamacare Affects Your 2015 Taxes

3. Mortgage interest deduction: 33.3 million returns used this deduction in 2013, with an average deduction of $8,900.

You can deduct any interest you pay on a loan secured by a primary residence or second home, including a mortgage, second mortgage, line of credit or home equity loan. Generally, the deduction is limited to home loans that total $1 million or less. You can typically deduct interest on home equity debt up to $100,000.

4. Charitable donations deduction: 36.4 million returns used this deduction in 2013, with an average deduction of $5,343.

If you’re a big giver, you can get something in return at tax time. Generally, you can deduct up to 50 percent of your AGI for contributions to public charities, colleges and religious groups. The limits are a lower for gifts to other kinds of nonprofits. When it comes to gifts of appreciated property, the limit falls to 30 percent for gifts of appreciated property, such as securities, real estate, art, jewelry or antiques. If your gifts exceed these limits, then the excess deduction can be carried over to the next tax year.

5. State and local real estate tax deduction: 37.8 million returns used this deduction in 2013, with an average deduction of $4,610.

Real estate tax on a home or other property you own is deductible on your federal taxes. To get the deduction, you must have paid the taxes to the assessor in the tax year, including any prepaid taxes for the following year. Real estate taxes paid on foreign property and school taxes based on the property’s value are also deductible. What’s not deductible includes assessments for local improvements, charges for trash collection or library taxes, or fees that aren’t based on the property’s value.

Related: Tax Trouble – 32 Celebrities Who’ve Tangled With the IRS

6. Above-the-line deductions: 37.7 million returns used this deduction in 2013, with an average deduction of $3,714.

Also known as adjustments to income, these deductions can be taken without itemizing and they will reduce your AGI, almost always cutting your overall tax bill. Some of the most useful above-the-line deductions are for tuition and fees up to $4,000, contributions to traditional IRAs, student loan interest up to $2,500 and contributions to health savings accounts. Self-employed workers can deduct self-employment tax, contributions to self-employed retirement plans and premiums for self-employed health insurance. Other items that can be deducted above the line include any penalty on early withdrawal of savings and alimony paid to an ex-spouse, among other things.