Determining Real Values of Tax Liens
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We can set down two conditions for seeking out real estate values. The success of the investment should not depend on tax benefits. If an investment cannot be justified on the basis of current income or potential appreciation, then any benefits from favorable tax liens cannot make it a good investment, they can only make it less bad.
This is exactly the approach IRS is taking when they examine tax shelters for legitimacy. Investors in bona fide programs have little to fear from IRS. Those in questionable ventures may find themselves in considerable trouble if IRS concludes that the primary purpose was to claim tax benefits.
