ijk@hropus.UUCP (Ihor J. Kinal) (02/26/86)
Since my income has gotten me to the point where Uncle is taking a substantial bite, I've been wondering about ways to reduce the bite (I'm already doing the usual things of IRA's,401K plans,3 deductions plus house, etc.). In particular, are there any LEGAL and STRAIGHT_PATH tax shelters (I'm not interested in triggering any IRS audits). Something that has caught my interest recently are RELPs (I'm not sure what the acronym stands for, possibly Real Estate Limited Partnerships), where one starts with a small investment (say $2500), and one gets back a tax deduction several times the investment (depending upon the the specifics, I believe one may be locked into investing a certain amount over the future, but not your entire fortune; so your loss is limited). I'm confused, however, about the details of how these really work (what in the tax laws allow you to claim a deduction for more than you put in??? Is it the depreciation allowances as well as the fact that most of the buying done with borrowed money??? And assuming Congress does change the depreciation allowance, will this cause RELPs to become less favorable? I suppose I should talk this over with an investment counselor, but the recent Consumer Reports article turned me off (most advisors just pushed whatever they were selling, not necessarily what was best for the client); besides, I would like to make an intelligent decision. So where can I research this topic. Money magazine?? Any good books?? Anyone out there who has done it, and anyone who has done it and been audited??? (AM I asking the right questions?? Why am I here... -) ). Thanx in advance. Ihor Kinal ihnp4!houxm!hropus!ijk