Topic: 瘦猪及其他投资DX, 请问熟悉TAX LIEN CERTIFICATE吗? 这是美国的TERM, 不知道加拿大是否用同样的词, 有无INFORMATION和精通此道的朋友介绍??TIA! @枫下论坛 The Rolia Forum

枫下家园 / 理财投资税务 / 瘦猪及其他投资DX, 请问熟悉TAX LIEN CERTIFICATE吗? 这是美国的TERM, 不知道加拿大是否用同样的词, 有无INFORMATION和精通此道的朋友介绍??TIA! -dropoutinmiami(东北的饺子); 2001-8-13 (#165039@0)

俺就UP这一次, 没人知道就算了, 有人知道, 请言语一声. 谢谢! -dropoutinmiami(东北的饺子); 2001-8-13 (#165068@0)

This is right up my alley, and I am itching to hit it -slimpiggy(瘦猪犹如插翅虎); 2001-8-13 {2070} (#165120@0)
本文发表在 rolia.net 枫下论坛Tax Lien Certs is a form of investment, most of the time it refers to a property or real estate.

Tax liens arise when property taxes are not paid.

the government can record the tax obligation and wait to get paid. While they wait they charge a modest 8% to 50% interest. If those taxes are not paid within the allotted time, the owner loses the property.

Most municipalities would be happy to wait and collect the large interest. (property taxes are owed to the municipality govt, but the law governs them are by the state govt)

If, the city govt's finanical situation is not ideal, which is the case for most of the Canadian municipalities. That is where tax lien certificates come into action. If the local goverment wants the taxes quickly, they may issue a tax lien certificate. You as the investor buy the tax lien certificate for the back taxes plus any interest accrued. You then have the same right to collect interest as the goverment, and the same rights to the property as the goverment would have had.

Tax Lien certs are superior because it's tax, not even bankrupcy can get rip of this obligation.

So what does this mean? It means that when you buy the tax lien one of two things will happen. First, and most likely, the tax lien will be paid off. This will happen when either

a) the property owner pays the taxes directly to clear up his account, and you earn about 24% on the cert on avg or

b) Lienee sells the house and taxes get paid out of closing costs to assure clear title to the new owners, in other words you still get paid

c) by the bank when they foreclose on the property (if he isn't paying his taxes he probably isn't paying his mortgage either). That means you HIT THE ULTIMATE JACKPOT, You will receive your original investment plus the stated interest (8% to 50%).

But what if the tax lien is never paid?

That's even better

Different state has different laws on the timing and execution on the matter should a lienee choose/forced to default on the lien, but essentially, you get the property.更多精彩文章及讨论，请光临枫下论坛 rolia.net

Specific questions please, taxes is a topic that can not be generalized -slimpiggy(瘦猪犹如插翅虎); 2001-8-13 (#165091@0)

It is not a tax issue. It is a type of investment instrument. But I don't know the terminology for it in Canada. If you have any information or friends, would you mind letting me know? -dropoutinmiami(东北的饺子); 2001-8-13 (#165114@0)

I don't recall seeing Tax lien certs being aution off, but there is a kind of fund (canadian) that invests in Tax lien certs, -slimpiggy(瘦猪犹如插翅虎); 2001-8-13 {209} (#165121@0)
so you pool the money into a fund. Canadian municipalities collects taxes in arrear by forms of wages and income garnishment, which I assume you know how it works?

should I explain further on garnishment?

Oh, PLEASE! if you have time. -dropoutinmiami(东北的饺子); 2001-8-13 (#165126@0)

Obviously you know what Tax Lien Certs are, and please do read my first reply to your post since it took me sometime to refresh myself wtih it -slimpiggy(瘦猪犹如插翅虎); 2001-8-13 {987} (#165140@0)
The US Internal Revenue Code and government infrastruture separates the three level government (Fed, States, and municipality) by means of direct taxes, half of the american has to file a tax return for each of the three levels of govt, thus gave room to the rise of products like tax lien certs.

To put it in baby terms, if you owe taxes to the city, it's the municipality's problem, the feds cannot touch you on the matter

The Canadian ITA collects tax by means of indirect taxes, provincial govt and municipalities authorizes the Feds to collect their portion of taxes, therefore, if you own taxes to the provincial or municipality govt, then the feds will step in and get you on the hook, a popular way is to garnish (withheld) your income in all federal resources (including welfare) to satisfy your local taxes obligation which in term kills the idea of the tax lien certs.

Should be clear as mud, please do comment.

but the truth is, Slim Piggy's always right,

是啊是啊, "主席永远正确, 永远健康". 呵呵. 我想看看有没有有实际操作经验的人可以介绍? I AM INTERESTED IN THE INVESTMENT. -dropoutinmiami(东北的饺子); 2001-8-13 (#165159@0)

It really depends on which state you are interested in, every state has very specific law, which governs interest rates, say Florida permits you to charge up to 2% compound a month, that's 24% a year which is huge -slimpiggy(瘦猪犹如插翅虎); 2001-8-13 {691} (#165208@0)
investment return, also, Alabama has no limit, you can charge 50% interest,

These certs are auction off periodically, call the local muni govt they shall give you a list of outstanding liens,

I know Delaware is hot right now since their municipalities are about to go down in debt.

Two things keep in mind,

Be prepared to pay legal fee which will cut to your return to zero in case of defaulting

pick Liens on People that has intention to pay, call them interview them, reason with them, better yet work out a payment plan.

do read my first post, it contains most of the technical details, btw, these certs are not endorsed by Canadian govt, so you watch out for that.

Ok, got it. Thanks a lot. I assume there is such investment instrument in Canada too. Am I right? I can find the information for US, but so far haven't got any luck finding info for Canada. -dropoutinmiami(东北的饺子); 2001-8-13 (#165272@0)

Refer to my second answer, there is a Canadian Mutual Fund that invests in US TAX LIEN CERTIFICATES, Repeat after me, 豬豬席永远正确, 永远健康 -slimpiggy(瘦猪犹如插翅虎); 2001-8-13 (#165275@0)

主席你很正确, 就是跑题. 我想知道的是CANADA有这样的TLC吗? 而不是投资于美国TLC的MUTUAL FUND. 你再正确一次, 不过要正确到我的问题上. 谢谢 -dropoutinmiami(东北的饺子); 2001-8-13 (#165292@0)

that's exactly what I've been saying all along, the infrastructure in Canada would not allow the existence of TLC, the only alternative would be the TLC fund -slimpiggy(瘦猪犹如插翅虎); 2001-8-13 (#165310@0)

Repeat after me, 豬豬席永远正确, 永远健康 -slimpiggy(瘦猪犹如插翅虎); 2001-8-13 (#165211@0)

Of course it's a tax issue, the Canadian govt uses a different way of collecting therefore affects the Canadians' oppotunities to invest in tax lien certs -slimpiggy(瘦猪犹如插翅虎); 2001-8-13 (#165127@0)