Option #1: Wire Transfer Bank to Bank

This option is ideal if you prefer to setup wire transfer instructions well in advance with the bank. Most banks require you to sign wire transfer authorization forms in person to enable wire transfer for your account. Additional, banks generally require you to call in person to initiate wire transfer instructions. Very few banks allow international bank transfers through online interaction. Beware that wire transfers (especially international wire transfers) usually have large fees associated with both the transfer fee and the exchange rate fee. Be advised to check the exchange rate for the bank to bank transfer as you may not always get a competitive exchange rate.

Option #2: Bring Cash with You

This option is rather self explanatory, however there are some cautionary items worth mentioning.  When you travel or visit your home country, withdraw funds and bring cash with you to deposit in your foreign currency account abroad.  You should not deposit directly your home country’s currency type, but instead find local money changers to change over the currency into the local currency.  This will save on currency exchange rates and also get you the best exchange rate possible.  You will need to also check import rules for the amount of cash allowed into a country without declaring on the customs form.  If you don’t mind declaring the cash with customs, you can bring it as much as you desire.  Obviously another downside is that you have to travel back and forth to your home country and host country in order to transfer money, however if the trips are timed with vacation or family visits, this options is most ideal.

Option #3: Use your PayPal Account

If you already have an online PayPal account, you could open another PayPal account in the country your are residing.  PayPal offers both currency exchange options, as well as withdrawal of funds from PayPal accounts to local banks.  For example, if your home country is the U.S. and you are currently residing in Malaysia.  You can open a PayPal Malaysia account that accepts both Malaysian Ringgit (MYR) and US Dollars (USD).  You can then either use your U.S. PayPal account to send USD to your Malaysian PayPal account, or exchange over to MYR and deposit directly in MRY currency.  From your Malaysian PayPal account, you withdraw funds in either MRY or USD to your local Malaysian bank account.   There are fees to be aware of with PayPal, however these fees are comparable or lower than bank to bank wire transfer fees, and money is transfered instantly between the two PayPal accounts.  It is also worth noting that the currency exchange rates offered through PayPal are slightly lower compared to market rates.

An innovative solutions PayPal now offers is the ability to deposit checks directly into your paypal account remotely. This is done through the PayPal iPhone app, which allows you to take a picture of the front and back of a check, which will then get deposited into your account within 3 – 6 days.

Whether you use bank to bank wire transfer, cash deposited or online account funds transfers such as PayPal, you will have research fees and determine which options is the cheapest and most timely for your specific situation.

1. Purchase a home instead of rent or lease an apartment or home.  The interest paid on the mortgage is tax deductible.  Sometimes it’s actually more beneficial to purchase a home or condo instead of rent when the tax deductions are taken into account.
2. Purchase your car or luxury vacation with a home equity loan instead of a bank loan.  Again, the interest from a home equity loan is tax deductible, providing an advantage to funding automobile purchases or luxury items.
3. Pay your January mortgage bill in late December.  This way the interest on your mortgage payment for December will be included in your current years tax deductions instead of rolling into the next years tax deductions.
4. Purchase Property for Investment.  Most wealthy individuals already know that investment property provides the landlord some of the most advantageous tax benefits around.  Interest on the investment property loan, maintenance costs, property management costs, travel costs to the property, insurance costs, and repair costs are all tax deductible.  In addition, the property can be depreciated over a set amount of time, providing even more tax benefits weighing against the income received from tenants.
5. Start a home business and keep track of all expenses.  Self employment income has excellent tax benefits, including home office and travel deductions.  Keep a log of all travel related to your business and deduct those expenses at years end.
6. Max out your contribution to your explorers 401K and/or your IRA.  Funding these retirements accounts reduces your overall tax burden by lowering your total earnings by the amount contributed to these plans.  As an added bonus, the money invested in these accounts grows tax free.

Above are just a few examples of how one can achieve some IRA tax relief.  Look for more tax benefits for investment property owners in the article Investment Property Tax Deductions.

Other Articles:

• HUD Foreclosure Homes
• Cash Flow vs Capital Appreciation from Investment Property
• Investment Property Loans – Getting the best rates

Let’s look at some of the tax benefits landlords can take advantage of when owning investment properties.

• If a mortgage or other type of loan is used to purchase an investment property, the mortgage interest paid on the loan is tax deducible.  Points paid on a mortgage loan are also deductible, but generally spread out over the life of the loan instead of deducted in the first year like on primary residence mortgage loans.
• Insurance premiums paid on the home are tax deductible for the year they are paid.
• The purchase price of the home is tax deductible and spread over 27.5 years.  For example, if you paid $150,000 for a home, and $50,000 of the purchase price is the land value, you deduct $100,000 over 27.5 years, or $3,636 a year.
• Maintenance repairs made to keep the home in an acceptable condition for rental purposes is also considered a tax deduction.
• Management company fees are also considered a tax deduction if fees are paid to manage, maintain or assist with the landlord responsibilities of the rental home.
• Mileage driven to the home for maintenance, showings, collecting rent, or conducting repairs can be deducted using the per mile calculation each year designated by the IRS.
• Legal and tax preparation fees associated with the investment property can be a tax deduction as well.

After reviewing the list of tax benefits available to real estate investors above, it becomes apparent why so many investors look for real estate opportunities.  The list above is not conclusive, and the tax laws regarding investment properties changes yearly.  Consult with your IRS Tax Attorney or CPA to find out all the advantages that individual property investors can take advantage of.