The repo man doesn't care that your finances are in limbo because you have recently divorced or that your employer informed you in eleventh hour that you were being laid-off. The repo man only cares about fees that they will receive once they recover your vehicle. So, you must protect yourself.

Here's an old fashion remedy for fighting Repo man: If you know you will be able to come up with money needed to pay your outstanding car note in a couple of months or so, switch cars with a friend until you get your finances straight. Better yet, HIDE IT in someone else's garage for a while. Make sure it is someone you did not list as a reference on credit application because Repo man will definitely check their addresses in search of your vehicle.

I know a guy who switched cars with his brother who lived in a different state. Within three months, he straighten out his finances and paid his three month delinquent car note to date, plus late fees. He saved himself high cost of repossession and storage fees, deficiency costs, and embarrassment of having his car repossessed (neighbors do watch).

The trick is to stay a step ahead of repo man. Know their moves before they strike. This will help you prevent repossession, and expense that goes along with it.

Following Rules Leads to Success

IRC Section 1031 has strict guidelines for property owners to follow while engaging in property and tax exchange. Consultation with real estate professionals, qualified intermediaries, lawyers and accountants is essential. Like-kind commercial and investment properties must be same in nature and have comparable characteristics. The properties can differ in quality and improved property may be exchanged for unimproved property. The relinquished property must be exchanged for a property of equal or greater value, equity or debt. If replacement property is of lesser value, equity or debt tax is then computed for amount of gain or difference in value. The property owner must pay whichever cost is lowest. Also, properties are only considered to be like-kind when they are located within same country. Properties within United Sates cannot be exchanged for properties located outside of country.

Time Is Money

Property exchange does not require taxpayer to sell and buy simultaneously. The Tax Reform of 1984 imposed precise limits on amount of time an exchange transaction can be in process. Property owners have 45 days from sale of relinquished property to identify a replacement property. The exchange must be completed within 180 days of closing or on tax return due date for current year. Do not miss identification or exchange deadlines! If these deadlines are not met exchange is no longer qualified and capital gains tax must be paid. Armed with knowledge and creativity any property owner can increase their buying power and take their real estate success to even greater heights. Remember to find real estate and financial professionals to assist with adherence to federal laws. Once you have learned to most lucrative way to manage your ventures and capital gains real estate victory will be at hand!