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29f0cd853b9f70e268678193c4fb516b
|
How to report house used for 100% business?
|
[
{
"docid": "6c7494f65e738ea5645c9c5d44b7a4fd",
"text": "As DJClayworth said, be very careful with this one! The property is a residence, not a business location. Given that, it is almost a certainty that the IRS is not going to let you claim 100% of the expenses for the home as a business expense, even if nobody's actually living there. You may get away with doing this for a period of time and not run into zoning or other issues such as those DJ mentioned, but it's like begging for trouble. You run the very real risk of being audited if you try to do what you're proposing, and rest assured, whatever you saved in taxes will disappear like smoke in the wind under an audit. That being said, there's no reason you can't call a tax service and ask a simple question, because in answering it they're going to hope to gain your business. It'd be well worth the phone call before you land yourself in any hot water with the IRS. I can tell you that I'd rather have a double root canal with no anesthetic than go through an audit, even when I didn't do anything wrong! (grin) Good luck!",
"title": ""
}
] |
[
{
"docid": "a0df265d0fc10366cd384ff52dbfec00",
"text": "Possible alternative: In my case, the part-time locksmithing is a small enough portion of my I come that I just submit it as hobby income, rather than trying to track it as a separate entity.",
"title": ""
},
{
"docid": "2b325654181d951f0e841dc9a11bba72",
"text": "Should I treat this house as a second home or a rental property on my 2015 taxes? If it was not rented out or available for rent then you could treat it as your second home. But if it was available for rent (i.e.: you started advertising, you hired a property manager, or made any other step towards renting it out), but you just didn't happen to find a tenant yet - then you cannot. So it depends on the facts and circumstances. I've read that if I treat this house as a rental property, then the renovation cost is a capital expenditure that I can claim on my taxes by depreciating it over 28 years. That is correct. 27.5 years, to be exact. I've also read that if I treat this house as a personal second home, then I cannot do that because the renovation costs are considered non-deductible personal expenses. That is not correct. In fact, in both cases the treatment is the same. Renovation costs are added to your basis. In case of rental, you get to depreciate the house. Since renovations are considered part of the house, you get to depreciate them too. In case of a personal use property, you cannot depreciate. But the renovation costs still get added to the basis. These are not expenses. But does mortgage interest get deducted against my total income or only my rental income? If it is a personal use second home - you get to deduct the mortgage interest up to a limit on your Schedule A. Depending on your other deductions, you may or may not have a tax benefit. If it is a rental - the interest is deducted from the rental income only on your Schedule E. However, there's no limit (although some may be deferred if the deduction is more than the income) if you're renting at fair market value. Any guidance would be much appreciated! Here's the guidance: if it is a rental - treat it as a rental. Otherwise - don't.",
"title": ""
},
{
"docid": "cc944b121bd06b9a75a12eae2177827d",
"text": "It actually depends on the services provided. If you're renting through AirBnB, you're likely to provide much more services to the tenants than a traditional rental. It may raise it to a level when it is no longer a passive activity. See here, for starters: Providing substantial services. If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service, you report your rental income and expenses on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. Use Form 1065, U.S. Return of Partnership Income, if your rental activity is a partnership (including a partnership with your spouse unless it is a qualified joint venture). Substantial services do not include the furnishing of heat and light, cleaning of public areas, trash collection, etc. For information, see Publication 334, Tax Guide for Small Business. Also, you may have to pay self-employment tax on your rental income using Schedule SE (Form 1040), Self-Employment Tax. For a discussion of “substantial services,” see Real Estate Rents in Publication 334, chapter 5",
"title": ""
},
{
"docid": "44a4da7d3f9b0a853729ea4b848174d9",
"text": "This new roof should go on the 2016 LLC business return, but you probably won't be able to expense the entire roof as a repair. A new roof is most likely a capital improvement, which means that it would need to be depreciated over many years instead of expensed all in 2016. The depreciation period for a residential rental property is 27.5 years. Please consider seeking a CPA or Enrolled Agent for the preparation of your LLC business return. See also: IRS Tangible Property Regulations FAQ list When you made the loan to the LLC (by paying the contractor and making a contract with the LLC), did you state an interest rate? If not, you and your brother should correct the contract so that an interest rate is stated, then follow it. The LLC needs to pay you interest until the loan is paid off. You need to report the interest income on your personal return, and the LLC needs to report the interest expense in its business return.",
"title": ""
},
{
"docid": "8f5439eccba9927dbad2c3edb01e31dd",
"text": "Such activity is normally referred to as bartering income. From the IRS site - You must include in gross income in the year of receipt the fair market value of goods or services received from bartering. Generally, you report this income on Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship), or Form 1040, Schedule C-EZ (PDF), Net Profit from Business (Sole Proprietorship). If you failed to report this income, correct your return by filing a Form 1040X (PDF), Amended U.S. Individual Income Tax Return. Refer to Topic 308 and Amended Returns for information on filing an amended return.",
"title": ""
},
{
"docid": "5231937629f4b8e90d974bc1ce6b52da",
"text": "In Canada I think you'd do it as a % of square footage. For example: Then you can count 20% of the cost of the of renting the apartment as a business expense. I expect that conventions (i.e. that what's accepted rather than challenged by the tax authorities) may vary from country to country.",
"title": ""
},
{
"docid": "c93d3cc880002c07a05bb9b36c078829",
"text": "If the UK is similar to Australia then you would not claim a virtual rent for the business portion but instead could claim a portion of the house expenses such as electricity use, property taxes, and yes a portion of the mortgage, and any repairs or renovations done to the work areas of the house. However, you should keep in mind that if you sell the place you may have to pay CGT on the portion you were claiming for business use.",
"title": ""
},
{
"docid": "f06119600d3aea07f3eb0978ad02434e",
"text": "You would report it as business income on Schedule C. You may be able to take deductions against that income as well (home office, your computer, an android device, any advertising or promotional expenses, etc.) but you'll want to consult an accountant about that. Generally you can only take those kinds of deductions if you use the space or equipment exclusively for business use (not likely if it's just a hobby). The IRS is pretty picky about that stuff.",
"title": ""
},
{
"docid": "0f10a2dce412274f1481a39aa4a09c44",
"text": "There are several reports under the Reports>Income & Expenses menu which could be useful. Cash Flow - shows, for a particular set of accounts, where incoming and outgoing money from those accounts came from and went to. Expense BarChart/PieChart - shows top N expenses. Income Statement (also called Profit & Loss) - shows all incomes and expenses for the time period. Each of these reports have an options dialog which will let you change the period that they are reporting on and the accounts to be included in the reports. The Cash Flow report sounds particularly useful for your second scenario.",
"title": ""
},
{
"docid": "b716bade03dd6b48d556e5f54e846855",
"text": "It depends on the structure of your business. Are you a sole proprietor filing Schedule C on your 1040, or an S-corp, or part of a partnership? The treatment of a home office will differ depending on business entity.",
"title": ""
},
{
"docid": "ca7d8dfd97eb2966bce100d8c393e62e",
"text": "You should be receiving monthly P&L statements at the very least. Who did you have filing taxes, doing payroll, performing audits? It seems that many restaurants and bars have a slippery cash issue where profits seem to just slide out the doors. Everyone touching cash might be skimming and if the manager is doing all the totals and reconciling the tills and filing taxes then that single point of failure is going to KILL you.",
"title": ""
},
{
"docid": "7c96d53ed284f013d5eed2041d7b470e",
"text": "Consider contracting with a property management company to lease and maintain the house until it can be sold. Rent on the property should cover the mortgage, property taxes, etc. The property management company can handle maintenance and the tenant would be responsible for utilities.",
"title": ""
},
{
"docid": "ca816def6c13f526c18f1951bde048f8",
"text": "lets sat If I buy a house on company's name, It will declared as expense and will deduct from profit. but I am not sure If I can rent it out as a IT LTD company. that's my questions. Buying a house is not an expense, it is a transfer of assets. The house itself, is an asset. So if you have $100,000 in cash, buy a house for $35,000, your total assets will remain the same ($100,000), but your asset mix will be different (instead of $100,000 in cash, you now have $65,000 in cash, and $35,000 in property). You can expense the costs associated with buying the house (e.g. taxes, interest, legal fees), but the house itself stays on the asset side of your balance sheet. To refine the example above, if you buy the house for $35,000, and pay $5,000 in misc fees related to purchasing the house, your assets are now $95,000 ($60,000 in cash, $35,000 in house): the $5,000 reduction is from the actual fees associated with the purchase. It is these fees that lower your profit. Being not familiar with UK rules, in Canada and the US, and likely the UK, you would then depreciate the house over its useful life. The depreciation expense is deducted from your annual net income. If you rent out the house, what you can do is expense any maintenance fees, taxes, etc., on the house itself. This expense will count as a negative towards the rental income, lowering your effective taxable income from the rental. E.g. rent out a flat at $1,000/month, but your property taxes are $3,500/year, so your net income for tax purposes (i.e. your taxable income in this case) is $12,000-$3,500=$8,500.",
"title": ""
},
{
"docid": "90a80872e5049f98aaa0e251e2320590",
"text": "Some governments offer business information search for corporations in their jurisdiction. The search results may show the director information for the company. If this information is made publicly available, keep in mind there are websites that make money from indexing publicly available information to show in Google search results. I don't mean to scare you as this is a likely a slim possibility. It really depends on the privacy practices in place at the jurisdiction you're in. But do keep in mind if you're planning on doing business on the side for a few years policies may change. I would call Service Ontario (or whichever province you're incorporating in) or Corporations Canada if federally incorporating and ask them if they offer a business search service and exactly what information they make public. You might be able to reach a Privacy Officer and find out what exactly their policy is.",
"title": ""
},
{
"docid": "78d14bc8caa8db04ea078cca3001630b",
"text": "You only need to report INCOME to the IRS. Money which you are paying to a landlord on behalf of someone else is not income.",
"title": ""
}
] |
fiqa
|
899c711b4f94889496b6ccbce83e3887
|
How to record business income tax paid, in QuickBooks?
|
[
{
"docid": "4d9bdb78150f5089baeab672332d02d2",
"text": "Federal income taxes are indeed expenses, they're just not DEDUCTIBLE expenses on your 1120. Federal Income Tax Expense is usually a subcategory under Taxes. This is one of the items that will be a book-to-tax difference on Schedule M-1. I am presuming you are talking about a C corporation, as an S corporation is not likely to be paying federal taxes itself, but would pass the liability through to the members. If you're paying your personal 1040 taxes out of an S-corporation bank account, that's an owner's draw just like paying any of your personal non-business expenses. I would encourage you to get a tax professional to prepare your corporate tax returns. It's not quite as simple as TurboTax Business makes it out to be. ;) Mariette IRS Circular 230 Notice: Please note that any tax advice contained in this communication is not intended to be used, and cannot be used, by anyone to avoid penalties that may be imposed under federal tax law.",
"title": ""
}
] |
[
{
"docid": "d1b3d85e0259ff79c5fcce5e2a24ff6c",
"text": "I assume the OP is the US and that he is, like most people, a cash-basis tax payer and not an accrual basis tax payer. Suppose the value of the rental of the unit the OP is occupying was reported as income on the OP's 2010 and 2011 W-2 forms but the corresponding income tax was not withheld. If the OP correctly transcribed these income numbers onto his tax returns, correctly computed the tax on the income reported on his 2010 and 2011 1040 forms, and paid the amount due in timely fashion, then there is no tax or penalty due for 2010 and 2011. Nor is the company entitled to withhold tax on this income for 2010 and 2011 at this time; the tax on that income has already been paid by the OP directly to the IRS and the company has nothing to do with the matter anymore. Suppose the value of the rental of the unit the OP is occupying was NOT reported as income on the OP's 2010 and 2011 W-2 forms. If the OP correctly transcribed these income numbers onto his tax returns, correctly computed the tax on the income reported on his 2010 and 2011 1040 forms, and paid the amount due in timely fashion, then there is no tax or penalty due for 2010 and 2011. Should the OP have declared the value of the rental of the unit as additional income from his employer that was not reported on the W-2 form, and paid taxes on that money? Possibly, but it would be reasonable to argue that the OP did nothing wrong other than not checking his W-2 form carefully: he simply assumed the income numbers included the value of the rental and copied whatever the company-issued W-2 form said onto his 1040 form. At least as of now, there is no reason for the IRS to question his 2010 and 2011 returns because the numbers reported to the IRS on Copy A of the W-2 forms match the numbers reported by the OP on his tax returns. My guess is that the company discovered that it had not actually declared the value of the rental payments on the OP's W-2 forms for 2010 and 2011 and now wants to include this amount as income on subsequent W-2 forms. Now, reporting a lump-sum benefit of $38K (but no actual cash) would have caused a huge amount of income tax to need to be withheld, and the OP's next couple of paychecks might well have had zero take-home pay as all the money was going towards this tax withholding. Instead, the company is saying that it will report the $38K as income in 78 equal installments (weekly paychecks over 18 months?) and withhold $150 as the tax due on each installment. If it does not already do so, it will likely also include the value of the current rent as a benefit and withhold tax on that too. So the OP's take-home pay will reduce by $150 (at least) and maybe more if the current rental payments also start appearing on the paychecks and tax is withheld from them too. I will not express an opinion on the legality of the company withholding an additional $150 as tax from the OP's paycheck, but will suggest that the solution proposed by the company (have the money appear as taxable benefits over a 78-week period, have tax withheld, and declare the income on your 2012, 2013 and 2014 returns) is far more beneficial to the OP than the company declaring to the IRS that it made a mistake on the 2010 and 2011 W-2's issued to the OP, and that the actual income paid was higher. Not only will the OP have to file amended returns for 2010 and 2011 but the company will need to amend its tax returns too. In summary, the OP needs to know that He will have to pay taxes on the value of the waived rental payments for 2010 and 2011. The company's mistake in not declaring this as income to the OP for 2010 and 2011 does not absolve him of the responsibility for paying the taxes What the company is proposing is a very reasonable solution to the problem of recovering from the mistake. The alternative, as @mhoran_psprep points out, is to amend your 2010 and 2011 federal and state tax returns to declare the value of the rental during those years as additional income, and pay taxes (and possibly penalties) on the additional amount due. This takes the company completely out of the picture, but does require a lot more work and a lot more cash now rather than in the future.",
"title": ""
},
{
"docid": "149e6975ec0ef8dc8574c0e317133818",
"text": "\"For anyone that's curious, I had a number of chats with Quickbooks who recommended I import only the relevant business transactions from my personal account & personal credit card in order to lower the tax liability. This way money \"\"paid\"\" from the business account to myself rightly shows up as a transfer and not as income. This means when generating a tax report, it calculates the correct rate of tax to be paid based on income minus allowable expenses, regardless which account they came from.\"",
"title": ""
},
{
"docid": "0fb8ad9020bf14fbf901fe9c1f18a4c4",
"text": "\"If you receive a 1099-MISC from YouTube, that tells you what they stated to the IRS and leads into most tax preparation software guided interviews or wizards as a topic for you to enter. Whether or not you have a 1099-MISC, this discussion from the IRS is pertinent to your question. You could probably elect to report the income as a royalty on your copyrighted work of art on Schedule E, but see this note: \"\"In most cases you report royalties in Part I of Schedule E (Form 1040). However, if you ... are in business as a self-employed writer, inventor, artist, etc., report your income and expenses on Schedule C or Schedule C-EZ (Form 1040).\"\" Whether reporting on Schedule E or C is more correct or better for your specific circumstances is beyond the advice you should take from strangers on the internet based on a general question - however, know that there are potentially several paths for you. Note that this is revenue from a business, so if you paid for equipment or services that are 100% dedicated to your YouTubing (PC, webcam, upgraded broadband, video editing software, vehicle miles to a shoot, props, etc.) then these are a combination of depreciable capital investments and expenses you can report against the income, reducing the taxes you may owe. If the equipment/services are used for business and personal use, there are further guidelines from the IRS as to estimating the split. These apply whether you report on Sch. E, Sch. C, or Sch C-EZ. Quote: \"\"Self-Employment Income It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income. All income earned through the taxpayer’s business, as an independent contractor or from informal side jobs is self-employment income, which is fully taxable and must be reported on Form 1040. Use Form 1040, Schedule C, Profit or Loss from Business, or Form 1040, Schedule C-EZ, Net Profit from Business (Sole Proprietorship) to report income and expenses. Taxpayers will also need to prepare Form 1040 Schedule SE for self-employment taxes if the net profit exceeds $400 for a year. Do not report this income on Form 1040 Line 21 as Other Income. Independent contractors must report all income as taxable, even if it is less than $600. Even if the client does not issue a Form 1099-MISC, the income, whatever the amount, is still reportable by the taxpayer. Fees received for babysitting, housecleaning and lawn cutting are all examples of taxable income, even if each client paid less than $600 for the year. Someone who repairs computers in his or her spare time needs to report all monies earned as self-employment income even if no one person paid more than $600 for repairs.\"\"\"",
"title": ""
},
{
"docid": "f2320cc41b8540a4e2b442d41f6f2f1a",
"text": "\"Without divulging too many specifics. Net income is 73k. Total income is 136k. Filed as an S-Corp. Using Quickbooks to classify expenses etc. I know its not much information but I don't know what to look out for, like \"\"whoa, net income is 73k, you gotta spend that!\"\" I have a CPA but isn't offering much in the terms of \"\"help\"\" and \"\"explanation\"\". Thanks for your time!\"",
"title": ""
},
{
"docid": "beea3f671766c0cef4427097bdc05788",
"text": "Funds earned and spent before opening a dedicated business account should be classified according to their origination. For example, if your business received income, where did that money go? If you took the money personally, it would be considered either a 'distribution' or a 'loan' to you. It is up to you which of the two options you choose. On the flip side, if your business had an expense that you paid personally, that would be considered either a 'contribution of capital' or a 'loan' from you. If you choose to record these transactions as loans, you can offset them together, so you don't need two separate accounts, loan to you and loan from you. When the bank account was opened, the initial deposit came from where? If it came from your personal funds, then it is either a 'contribution of capital' or a 'loan' from you. From the sound of your question, you deposited what remained after the preceding income/expenses. This would, in effect, return the 'loan' account back to zero, if choosing that route. The above would also be how to record any expenses you may pay personally for the business (if any) in the future. Because these transactions were not through a dedicated business bank account, you can't record them in Quickbooks as checks and deposits. Instead, you can use Journal Entries. For any income received, you would debit your capital/loan account and credit your income account. For any expenses, you would debit the appropriate expense account and credit your distribution/loan account. Also, if setting up a loan account, you should choose either Current Asset or Current Liability type. The capital contribution and distribution account should be Equity type. Hope this helps!",
"title": ""
},
{
"docid": "5f4c85a0ec524834a22e73607839809b",
"text": "I wrote a small Excel-based bookkeeping system that handles three things: income, expenses, and tax (including VAT, which you Americans can rename GST). Download it here.",
"title": ""
},
{
"docid": "8c6959426bd997ccef966bf5cc436b54",
"text": "You need to fill out form 8606. It's not taxable, but you still need to report it",
"title": ""
},
{
"docid": "11aa0d830ce41e174690756c06ce534f",
"text": "(do I need to get a W9 from our suppliers)? Will PayPal or Shopify send me a 1099k or something? Do not assume that you'll get paperwork from anyone. Do assume that you have to generate your own paperwork. Ideally you should print out some kind of record of each transaction. Note that it can be hard to view older transactions in PayPal, so start now. If you can't document something, write up a piece of paper showing the state of the world to the best of your knowledge. Do assume that you need separate receipts for each expenditure. The PayPal receipt might be enough (but print it in case the IRS wants to see it). A receipt from the vendor would be better (again, print it if it is online now). A CPA is not strictly necessary. A CPA is certified (the C in CPA) to formally audit the books of a corporation. In your case, any accountant would be legally sufficient. You still may want to use a CPA, as the certification, while technically unnecessary, still demonstrates knowledge. You may otherwise not be in a position to evaluate an accountant. A compromise option is to go to a firm that includes a CPA and then let them assign you to someone else to process the actual taxes. You are going to have to fill out some business tax forms. In particular, I would expect a schedule C. That's where you would show revenues and expenses. You may well have to file other forms as well.",
"title": ""
},
{
"docid": "9e3aeb1e220e254a1b835e73c9e24e8b",
"text": "\"Since this is a cooperative I'm guessing your partners may want to be able to view the books so another key point you may want to consider is collaboration. QuickBooks desktop has all of these same issues because it is meant to be used on a single desktop. We're in an age of mobile devices, and especially in a business like landscaping it would be nice if certain aspects of record keeping could be done at the point and time where they are incurred. I'd argue you want a Software as a Service (SaaS) accounting package as opposed to \"\"accounting software\"\" which might come on a CD in the form of QuickBooks, Sage and others. Additionally, most of these will also have guides to help make sure you are properly entering your records. Most of these SaaS products also have customer success teams to help you along should you need assistance. Depending on the level of your subscription you may get more sophisticated handling of taxes, customized invoices or integrated payroll. Your goal is to keep accurate records so you can better run your business and maintain obligations like filing taxes. You're not keeping the records just to have them. Keep them in a place where they will work for you and provide the insights and functionality that will help your business grow and become successful. Accounting software will always win in this scenario over a spreadsheet. FULL DISCLAIMER: I work for Kashoo, a simple cloud accounting product designed for small businesses. But the points I mention above are true for Xero, QuickBooks Online and Wave as well as Kashoo. And if you really want expertise to go with the actual software consider service providers with a platform like: Indinero, Bench, easyrecordbooks or Liberty Accounting.\"",
"title": ""
},
{
"docid": "dd19288b9fa9daea043139afb9f8ad08",
"text": "\"From the IRS perspective, there's no difference between \"\"your taxes\"\" and \"\"your sole proprietorship's taxes\"\", they're all just \"\"your taxes\"\". While I could see it being very useful and wise to track your business's activities separately, and use separate bank accounts and the like, this is just a convenience to help you in your personal accounting, and not something that needs to relate directly to how tax forms are completed or taxes are paid. When calculating your taxes, if you want to figure out how much \"\"you\"\" owe vs. how much \"\"your business\"\" owes, you'll have to do so yourself. One approach might be just to take the amount that your Schedule C puts as income on your return and multiply by your marginal tax rate. Another approach might be to have your tax software run the calculations as though you had no business income, and see what just \"\"your personal\"\" taxes would have been without the business. If you think of the business income as being \"\"first\"\" and should use up the lower brackets rather than your personal income, maybe do it the other way around and have your software run the calculations as though you had only the business income and no other personal/investment income, and see what the amount of taxes would be then. Once you've figured out a good allocation, the actual mechanics of paying some \"\"personal tax amount\"\" from your personal bank account and some \"\"business tax amount\"\" from your business bank account are up to you. I'd probably just transfer the money from my business account to my personal account and pay all the taxes from the personal account. Writing two separate checks, one from each account, that total to the correct amount, I'm sure would work just fine as well. You can probably make separate payments from each account electronically through Direct Pay or EFTPS as well. As long as all taxes are paid by the deadline, I don't think the IRS is too picky about the details of how many payments are made.\"",
"title": ""
},
{
"docid": "bfc6b9e15735ccad53b4a312432b6239",
"text": "I strongly recommend that you talk to an accountant right away because you could save some money by making a tax payment by January 15, 2014. You will receive Forms 1099-MISC from the various entities with whom you are doing business as a contractor detailing how much money they paid you. A copy will go to the IRS also. You file a Schedule C with your Form 1040 in which you detail how much you received on the 1099-MISC forms as well as any other income that your contracting business received (e.g. amounts less than $600 for which a 1099-MISc does not need to be issued, or tips, say, if you are a taxi-driver running your own cab), and you can deduct various expenses that you incurred in generating this income, including tools, books, (or gasoline!) etc that you bought for doing the job. You will need to file a Schedule SE that will compute how much you owe in Social Security and Medicare taxes on the net income on Schedule C. You will pay at twice the rate that employees pay because you get to pay not only the employee's share but also the employer's share. At least, you will not have to pay income tax on the employer's share. Your net income on Schedule C will transfer onto Form 1040 where you will compute how much income tax you owe, and then add on the Social Security tax etc to compute a final amount of tax to be paid. You will have to pay a penalty for not making tax payments every quarter during 2013, plus interest on the tax paid late. Send the IRS a check for the total. If you talk to an accountant right away, he/she will likely be able to come up with a rough estimate of what you might owe, and sending in that amount by January 15 will save some money. The accountant can also help you set up for the 2014 tax year during which you could make quarterly payments of estimated tax for 2014 and avoid the penalties and interest referred to above.",
"title": ""
},
{
"docid": "e2f9b8faa0d16414f9b1f39f9b0199f3",
"text": "I think it depends on who is being paid for your app. Do you have a company the is being paid? Or is it you personally? If you have a company then that income will disappear by offsetting it through expenses to get the software developed. If they are paying you personally then you can probably still get the income to disappear by file home-office expenses. I think either way you need to talk to an accountant. If you don't want to mess with it since the amount of income is small then I would think you can file it as additional income (maybe a 1099).",
"title": ""
},
{
"docid": "b941ec8a64dd8a7efd3690dab33cd768",
"text": "Try the following apps/services: Receipt Bank (paid service, gathers paper receipts, scans them and processes the data), I've tested it, and it recognizing receipts very well, taking picture is very quick and easy, then you can upload the expenses into your accounting software by a click or automatically (e.g. FreeAgent), however the service it's a bit expensive. They've apps for Android and iPhone. Expentory (app and cloud-based service for capturing expense receipts on the move),",
"title": ""
},
{
"docid": "04468a78b190230604ded783ba3cbc6c",
"text": "There are too many nuances to the question asked to explore fully but here are a few points to keep in mind. If you are a cash-basis taxpayer (most individuals are), then you are not required to pay taxes on the money that has been billed but not received as yet. If you operate on an accrual basis, then the income accrues to you the day you perform the service and not on the day you bill the client. You can make four equal payments of estimated tax on the due dates, and if these (together with any income tax withholding from wage-paying jobs) are at least 90% of your tax liability for that year, then you owe no penalties for underpayment of tax regardless of how your income varied over the year. If your income does vary considerably over the year (even for people who only have wages but who invest in mutual funds, the income can vary quite a bit since mutual funds typically declare dividends and capital gains in December), then you can pay different amounts in each quarterly installment of estimated tax. This is called the annualization method (a part of Form 2210 that is best avoided unless you really need to use it). Your annualized income for the payment due on June 15 is 2.4 = 12/5 times your taxable income through May 31. Thus, on Form 2210, you are allowed to assume that your average monthly taxable income through May 31 will continue for the rest of the year. You then compute the tax due on that annualized income and you are supposed to have paid at least 45% of that amount by June 15. Similarly for September 15 for which you look at income through August 31, you use a multiplier of 1.5 = 12/8 and need to pay 67.5% of the tax on the annualized income, and so on. If you miscalculate these numbers and pay too little tax in any installment, then you owe penalties for that quarter. Most people find that guesstimating the tax due for the entire year and paying it in equal installments is simpler than keeping track of nuances of the annualized method. Even simpler is to pay 100% of last year's tax in four equal installments (110% for high earners) and then no penalty is due at all. If your business is really taking off and your income is going to be substantially higher in one year, then this 100%/110% of last year's tax deal could allow you to postpone a significant chunk of your tax bill till April 15.",
"title": ""
},
{
"docid": "eb268fbdc828960fb02208f639f08e2a",
"text": "\"Ed: Saw your comment, thank you. The short answer (a rough simplification), seems to be that you pay PA income tax for income made in PA. You pay IL income tax for income made in IL, not income made across both states. And you make sure the IL amount paid is correct via a credit calculated on Schedule CR. It looks to me (bear with me, I am no expert on tax law in IL, PA, or in general, so consult a professional for \"\"good\"\" advice :), like you basically do this on Schedule CR: It looks like there may be some more pertinent info on Publication 111, so that may potentially change the math a bit too. This check is 2014 income, during which you are a resident of IL. It's income from a PA employer. You must file a tax return in PA regardless, since you \"\"earned income in PA\"\". Did your former employer withhold PA income taxes on this particular paycheck? I'm not seeing where it says you should not include tax withheld; could you please point that out? Perhaps they mean you should only include tax actually considered \"\"due\"\" on the PA tax return. From IL's Schedule CR instructions: What is the purpose of Schedule CR? Schedule CR, Credit for Tax Paid to Other States, allows you to take a credit for income taxes you paid to other states on income you received while a resident of Illinois. You are allowed this credit only if you filed a required tax return with the other state. You must use information from the tax return you filed with the other state to complete Schedule CR. ... What taxes qualify for the credit? Taxes that qualify for the credit are income taxes you paid to another state of the United States,\"",
"title": ""
}
] |
fiqa
|
ef80c013f441b9d84cb54bfadb5f41bd
|
Get a loan with low interest rate on small business
|
[
{
"docid": "7910bc8876c3819fe39df4008765f7a5",
"text": "\"I am going to assume your location is the US. From what I am seeing it is unlikely you will get a loan other than some government backed thing. You are a poor risk. At 7k/month, you have above average household income. The fact that all of your income \"\"is being washed off somewhere\"\" is a behavior problem, not a mathematical one. For example, why do you have a car payment? You should purchase a car for cash. Failing that, given reasonable rent (1100), reasonable car payment (400), insurances (300), other expenses (1000), you should clear at least 4000 per month in cash flow. Where is that money going? Here tracking spending and budgeting is your friend. Figure out the leaks in your budget and fix them. By cutting back, and perhaps working a second job or somehow earning more you could have a down payment for a home in as little as 10 months. That is not a very long time. Similarly we can discuss the grocery store. Had you prepared for this moment three years ago you could have bought the store for cash. This would have eliminated a bunch of risk and increase the likelihood of this venture's success. If you had started this one year ago, you could have gone in with a significant down payment. The bank would see this as a good risk if you wanted to borrow the remainder. Instead the bank sees you as a person as a poor risk. You spend every dime you make without much concern for the future or possible negative events (by implication of your question). If you cannot handle the cash flows of regular employment well, how can you handle the cash flows of a grocery business? It is far more complex, and there is far less room for error. So how do you get a loan? I would start with learning on how to manage your personal finance well prior to delving into the world of business.\"",
"title": ""
}
] |
[
{
"docid": "c7ef1a2fdbb1359261574b34d2c11589",
"text": "A financial institution is not obligated to offer you a loan. They will only offer you a loan if they believe that they will make money off you. They use all the info available in order to determine if offering you a loan is profitable. In short, whether they offer you a loan, and the interest rate they charge for that loan, is based on a few things: How much does it cost the bank to borrow money? [aka: how much does the bank need to pay people who have savings accounts with them?]; How much does the bank need to spend in order to administer the loan? [ie: the loan officer's time, a little time for the IT guy who helps around the office, office space they are renting in order to allow the transaction to take place]; and How many people will 'default' and never be able to repay their loan? [ex: if 1 out of 100 people default on their loans, then every one of those 100 loans needs to be charged an extra 1% in order to recover the money the bank will lose on the person who defaults]. What we are mostly interested in here is #3: how likely are you to default? The bank determines that by determining your income, your assets, your current debts outstanding, your past history with payments (also called a credit score), and specifically to mortgages, how much the house is worth. If you don't have a long credit history, and because you don't have a long income history, and because you are putting <10% down on the condo [20% is often a good % to strive for, and paying less than that can often imply you will need mandatory mortgage insurance, depending on jurisdiction] the bank is a little more uncertain about your likelihood to pay. Banks don't like uncertainty, and they can deal with that uncertainty in two ways: (1) They can charge you a higher interest rate; OR (2) They can refuse you the loan. Now just because one bank refuses you a loan, doesn't mean all will - but being refused by one bank is probably a good indication that many / most institutions would refuse you, because they all use very similar analytical tools to determine your 'risk level'. If you are refused a loan, you can try again at another institution, or you can wait, save a larger down payment, and build your credit history by faithfully paying your credit card every month, paying your utilities, and making your car and rent payments on time. This will give the banks more comfort that you will have the ability to pay your mortgage every month, and a larger down payment will give them comfort that if the housing market dips, you won't owe more than the house is worth. My parting shot is this: If you are new in your career with no income history, be very careful about buying a property immediately, even if you get approved. A good rule of thumb is to only buy a property when you plan on living there for at least 5 years, or else you are likely to lose money overall, after factoring closing costs and maintenance fees. If you are refused a loan, that's probably a good sign that you aren't financially ready yet, but even if a bank approves you for a loan, you might not be ready yet either.",
"title": ""
},
{
"docid": "3dd66282abc2576d2df51f5815fca851",
"text": "\"You are not \"\"the economy\"\". The economy is just the aggregate of what is going on with everyone else. You should make the decision based on your own situation now and projected into the future as best you can. Loan rates ARE at historical lows, so it is a great time to take a loan if you actually need one for some reason. However, I wouldn't go looking for a loan just because the rates are low for the same reason it doesn't make sense to buy maternity clothes if you are a single guy just because they are on sale.\"",
"title": ""
},
{
"docid": "042b71b15063e51189ae00318215f078",
"text": "If it's possible in your case to get such a loan, then sure, providing the loan fees aren't in excess of the interest rate difference. Auto loans don't have the fees mortgages do, but check the specific loan you're looking at - it may have some fees, and they'd need to be lower than the interest rate savings. Car loans can be tricky to refinance, because of the value of a used car being less than that of a new car. How much better your credit is likely determines how hard this would be to get. Also, how much down payment you put down. Cars devalue 20% or so instantly (a used car with 5 miles on it tends to be worth around 80% of a new car's cost), so if you put less than 20% down, you may be underwater - meaning the principal left on the loan exceeds the value of the car (and so you wouldn't be getting a fully secured loan at that point). However, if your loan amount isn't too high relative to the value of the car, it should be possible. Check out various lenders in advance; also check out non-lender sites for advice. Edmunds.com has some of this laid out, for example (though they're an industry-based site so they're not truly unbiased). I'd also recommend using this to help you pay off the loan faster. If you do refinance to a lower rate, consider taking the savings and sending it to the lender - i.e., keeping your payment the same, just lowering the interest charge. That way you pay it off faster.",
"title": ""
},
{
"docid": "2bcdda60f3b4d3e30dc4ab0a0479d764",
"text": "\"Dave Ramsey would tell you to pay the smallest debt off first, regardless of interest rate, to build momentum for your debt snowball. Doing so also gives you some \"\"wins\"\" sooner than later in the goal of becoming debt free.\"",
"title": ""
},
{
"docid": "6464e5e26818bb6ccac743ffdc539b73",
"text": "A lot of this example is idealistic and the analysis stops right at the point the loan is issued. If you use generous interest rates you could just skirt by the bare minimum debt service coverage ratio for an asset-backed loan if you found a lender to approve it. However, he doesn't address any of the issues of running a business that will be insolvent if expenses rise more than about ~2% above the monthly average in a given month (those pesky 3-pay period months; equipment repairs; heating/cooling in winter/summer; etc.), or you have a similarly small sag in sales (selling dirtbikes in January?). Most companies doing LBOs have skin in it, and a plan to make the company more valuable, not run it exactly the way it is. This allows them to either acquire more debt capital than just a percentage of the collateral -- and so they can finance capital projects to improve the business, deal with fluctuations in cash flow, and/or implement plans to increase the free cash flows above how it was running previously. This site's advice is a bit like teaching someone the basics of how to take off in an airplane, and then telling them they're ready to fly.",
"title": ""
},
{
"docid": "135ab65269bd06b6073c0509e2cb3856",
"text": "Since you are talking about a small firm, for the long term, it would be advisable to invest your money into the expansion - growth, diversification, integration - of your business. However, if your intention is to make proper use of your earnings in the short term, a decent bank deposit would help you to increase the credit line for your business with the benefit of having a high enough liquidity. You can also look at bonds and other such low risk instruments to protect your assets.",
"title": ""
},
{
"docid": "3773ece8f5c0f31e1ec6b511369b4a61",
"text": "Consider the following scenario at a small business: As a business owner I have 10k in the bank at the moment. I have a one time expense of 4k that will not directly impact the growth of my business. I can choose to pay the 4k out of the 10 in the bank and then put the rest towards business growth. Assuming a 10% annual return on capital at the end of this transaction I am left with $6,600. Now if instead I chose to pay the 4k with a business credit card I have that only carries a 7.9% interest rate what would happen is that I incur a 4k balance that I have to pay off in a year and put 10k towards my business. Now, this is a simplified case that does not take into account the effective interest on the card and the minimum monthly payments. That being said, what happens in the end of the year is that I owe $4316 to my credit card but I now have 11k in the bank, due to business growth. That leaves me with $6,684 after a year's worth of operations, which is better than my original $6,600. This is a small scale scenario though, but the basic idea is that if you can put the money towards growth that is better than the interest you are paying to the card, you win. The risks of course include missing a payment and incurring a penalty, not being able to grow your money at the rate you thought, and so on. Hope this explains things a bit.",
"title": ""
},
{
"docid": "c33fc3eef676992d94f8b4f2f061a9e0",
"text": "You want to regard loans as short-term, last-ditch, desperate effort for when you get caught in a bad spot and have a good, workable plan to get out of it. You don't ever want to start a business on borrowed money, unless you're an expert in the field of your business with a lot of experience in running businesses in that sector. The best thing to do is to get a job and save all your money to start a business that will make you enough money to start the business you really want. You may need to start a business to get the money to start a business to get the money to start a business to get the money to start the business you want. Whatever it takes, really. Just do it all yourself. Don't accept loans or favors. Also, the whole world (except Amazon) is moving from brick-and-mortar to the internet, and you're trying to move internet sales to brick-and-mortar. It's a little backward-looking. It could work, but there's probably some research you could do to test the feasibility of this idea. You need to be creative in designing effective, science-based ways to predict your success or failure. Don't worry about licensing issues with wholesalers. That's not something to be worried about, at this point.",
"title": ""
},
{
"docid": "af5fa73a378d3cb8c758b0030f400d24",
"text": "A better idea if applicable is to borrow 50K (max allowed) to buy a house and pay interest to yourself instead of a bank. And none of that origination and closing fees lost to the lender",
"title": ""
},
{
"docid": "4587dc621c938b566c4374e77c0e9888",
"text": "Zero percent interest may sound great, but those deals often have extra margin built into the price to make up for it. If you see 0%, find it cheaper somewhere else and avoid the cloud over your head.",
"title": ""
},
{
"docid": "f5a03a5278df1b9e2073337a6bbaecc5",
"text": "This is not a supply side issue (bank), but a demand side (small business) and there is simply no demand. Bank CEOs have been repeating that there is just no interest in borrowing right now, they would love to lend, but businesses are not taking the loans. Businesses are trying to firm up their balance sheets and with concerns of a recession looming most small business owners don't want to borrow and risk defaulting.",
"title": ""
},
{
"docid": "0dd467f067a26cb6d8483c39f8ba980e",
"text": "\"I started with lending club about a year ago. I love it. It has been insightful. Off topic, but I am in a loan to a guy who make 120K a year and is regularly late and has a pretty high interest rate. Crazy. You gain some economies of scale by going with a bigger note. I have $100 notes that I get hit for 2 or 3 cents for a fee, where $25 notes are always a penny. However, I don't think that should be your deciding factor. I scale my note purchases based on how much I like the status of the borrower. For example, I did $100 (which is currently my max) for a guy with a reasonable loan amount 16K, a stable work history (15+ years), a great credit history, and a great interest rate (16.9%). If one of those things were a bit out of \"\"whack\"\". I might go $50, two $25. I prefer 36 month notes, really 5 years to get out of debt? It is unlikely to happen IMHO. Keep in mind that if you invest $100 in a loan, then you get one $100 note. You can't break them up into 4 $25 notes. For that reason, if you are likely to want to sell the note prematurely, keep it at $25. The market is greater. I've had a lot of success using the trading account, buying further discounted notes for people who want out of lending club, or get spooked by a couple of late payments and a change in billing date. Another advantage of using the trading account is you start earning interest day 1. I've had new notes take a couple of weeks to go through. To summarize: There are some other things, but that is the main stuff I look at.\"",
"title": ""
},
{
"docid": "17fa3df27d1ee72e8c155bbaccef568d",
"text": "\"Just to argue the other side, 1.49% is pretty low for a loan. Let's say you have the $15k cash but decide to get the car loan at 1.49%. Then you take the rest of the money and invest it in something that pays a ~4% dividend (a utility stock, etc.). You're making money on the difference. Of course, there's no guarantee that the underlying stock won't drop in value, but it might go up, too. And you'll likely pay income tax on the dividends. Still, you have a good chance of making money by taking the loan. So I will argue that there are scenarios where taking advantage of a low interest rate loan can be \"\"good\"\" as an investment opportunity when the risk/reward is acceptable. Be careful, though. There's nothing wrong with paying cash for a car!\"",
"title": ""
},
{
"docid": "22e6a67b3772124c6afed7830c1bfb4f",
"text": "\"A \"\"true\"\" 0% loan is a losing proposition for the bank, that's true. However when you look at actual \"\"0%\"\" loans they usually have some catches: There might also be late payment fees, prepayment penalties, and other clauses that make it a good deal on average to the bank. Individual borrowers might be able to get away with \"\"free money\"\", but the bank does not look to make money on each loan, they look to make money on thousands of loans overall. For a retailer (including new car sellers). the actual financing costs will be baked into the sales price. They will add, say, 10% to the sales price in exchange for an interest-free loan. They can also sell these loans to an investment bank or other entity, but they would be sold at a deep discount, so the difference will be made up in the sales price or other \"\"fees\"\". It's possible that they would just chalk it up to promotional discounts or customer acquisition costs, but it would not be a good practice on a large scale.\"",
"title": ""
},
{
"docid": "53c83272f5ce291e0211a7618ac881f6",
"text": "\"I've been taking all the cheap fixed-rate debt banks would like to give me lately. What Rate? In practice I find the only way I get a low-enough rate on a longish-term fixed-rate loan is to use collateral. That is, auto loans and home loans. I haven't seen any personal loans with a low enough fixed rate. (Student loans may be cheap enough if they're subsidized, I guess.) Here's how I think of the rate: If you look at https://personal.vanguard.com/us/insights/saving-investing/model-portfolio-allocations , the average annual return on 80% bonds / 20% stocks is 6.7%, with worst year -10.3%. That's a nominal return not a real return. If you subtract taxes, say your marginal rate (the rate you pay on your last dollar of income) is 28% federal plus 5% state, then if you have no tax deferral the 6.7% becomes about a 4.5% average, with reasonably wide variation year-by-year. (You can mess with this, e.g. using tax-exempt bonds and tax-efficient stock funds, etc. which would be wise, but for deciding whether to take out debt, getting too detailed is false precision. The 6.7% number is only an average to begin with, not a guarantee.) Say you pay 4.5% on a loan, and you keep your money in very conservative investments, that's probably at least going to break even if you give it some years. It certainly can and sometimes will fail to break even over some time periods, but the risk of outright catastrophe is low. If your annual loss is 10%, that sucks, but it should not ruin your life. In practice, I got a home loan for close to 4.5% which is tax-deductible so a lower effective rate, and got an auto loan subsidized by the manufacturer for under 3%. Both are long-term fixed-rate loans with collateral. So I was happy to borrow this money paying about a 3% effective rate in both cases, well below my rough threshold of 4.5%. I do not, however, run a credit card balance; even though one of my cards is only 7% right now, 7% is too high, and it's a floating rate that could rise. The personal loans I've seen have too-high rates also. Thoughts Overall I think using debt as a tool requires that you're already financially stable, such that the debt isn't creating a risky situation. The debt should be used to increase liquidity and flexibility and perhaps boost investment returns a bit. Where you're likely to get into trouble is using debt to increase your purchasing power, especially if you use debt to buy things that aren't necessary. For me the primary reason to use debt is flexibility and liquidity, and the secondary \"\"bonus\"\" reason is a possible spread between the debt rate and investment returns.\"",
"title": ""
}
] |
fiqa
|
1b82bdf8ad2d371e754173bcc1f3e16b
|
Does revenue equal gross profit for info product business?
|
[
{
"docid": "aa7b71cc6b057f22d94322cc900cc157",
"text": "What about web-hosting fees? Cost of Internet service? Cost of computer equipment to do the work? Amortized cost of development? Time for support calls/email? Phone service used for sales? Advertising/marketing expenses? Look hard--I bet there are some costs.",
"title": ""
}
] |
[
{
"docid": "8f5439eccba9927dbad2c3edb01e31dd",
"text": "Such activity is normally referred to as bartering income. From the IRS site - You must include in gross income in the year of receipt the fair market value of goods or services received from bartering. Generally, you report this income on Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship), or Form 1040, Schedule C-EZ (PDF), Net Profit from Business (Sole Proprietorship). If you failed to report this income, correct your return by filing a Form 1040X (PDF), Amended U.S. Individual Income Tax Return. Refer to Topic 308 and Amended Returns for information on filing an amended return.",
"title": ""
},
{
"docid": "acd654eae7418dd216190d5896a774df",
"text": "That would be like requiring the IT department in you company to be self sufficient. You're IT department doesn't exist to earn a profit. It exists to enable the rest of the company to earn a profit. Your IT department runs a deficit, it sucks money from the bottom line of your company. Hopefully, it boosts other departments in your company like sales, or engineering, and enables them to make more money than IT consumes.",
"title": ""
},
{
"docid": "bef76491f4599f1b8889d9f2abd79de6",
"text": "I think his conclusions apply only to sole proprietorships that provide cheap, commoditized services. My story is a little different. I've been a sole proprietor, writing software and providing services related to that software, for 15 years. Over that time, I closed two IP sales to large competitors. One of those was an 8-figure deal. I never provided commodity services, saved as much of my consulting income as possible, toughed out the fallow periods, invested years of unpaid time inventing new ideas and writing new software, treated my customers very well, and always negotiated hard for value.",
"title": ""
},
{
"docid": "e606f789dca0425270c4351a21c6ce39",
"text": "you: >Pleading ignorance, what is the difference between revenue and sales? me: >[ignorance doesn't cut it in your case](http://lmgtfy.com/?q=sales+vs+revenue) Or does your ignorance include ignorance of hyperlinks too? Hint: click the link and use this problem solving approach in the future when you again encounter something you don't understand.",
"title": ""
},
{
"docid": "e1ce8250eb72a7472e0fcb696d1dc384",
"text": "\"In general, when dealing with quantities like net income that are not restricted to being positive, \"\"percentage change\"\" is a problematic measure. Even with small positive values it can be difficult to interpret. For example, compare these two companies: Company A: Company B: At a glance, I think most people would come away with the impression that both companies did badly in Y2, but A made a much stronger recovery. The difference between 99.7 and 99.9 looks unimportant compared to the difference between 100,000 and 40,000. But if we translate those to dollars: Company A: Y1 $100m, Y2 $0.1m, Y3 $100.1m Company B: Y1 $100m, Y2 $0.3m, Y3 $120.3m Company B has grown by a net of 20% over two years; Company A by only 1%. If you're lucky enough to know that income will always be positive after Y1 and won't drop too close to zero, then this doesn't matter very much and you can just look at year-on-year growth, leaving Y1 as undefined. If you don't have that guarantee, then you may do better to look for a different and more stable metric, the other answers are correct: Y1 growth should be left blank. If you don't have that guarantee, then it might be time to look for a more robust measure, e.g. change in net income as a percentage of turnover or of company value.\"",
"title": ""
},
{
"docid": "1953236f5be7555ca9b4258a6797b362",
"text": "You do actually have some profits (whatever is left from donations). The way it goes is that you report everything on your Schedule C. You will report this: Your gross profits will then flow to Net Profit (line 31) since you had no other expenses (unless you had some other expenses, like paypal fees, which will appear in the relevant category in part II), and from line 31 it will go to your 1040 for the final tax calculation.",
"title": ""
},
{
"docid": "bf5acddc43a0238671cbdafe6502ab8d",
"text": "\"Neither. Why would you have to classify startups as value or growth? A startup is its own category. You can find startups at \"\"classic\"\" valuations (price/book... Etc) that would make investors' eyes water... But that happens because many startups are early stage and so revenue or book value or other classic valuations don't quite suit.\"",
"title": ""
},
{
"docid": "da9b004b1196832b883c4c17a86b14f0",
"text": "The primary revenue streams are site management and recycling. We've basically fallen off the face of Google with the last website redesign because the person had absolutely no clue what they were doing and used a template. So we're getting torn to shreds by companies that have properly designed websites and a social media presence. Because who the hell looks in a newspaper anymore for business services?",
"title": ""
},
{
"docid": "15126f103a2667dba90dba966a855cc1",
"text": "\"I don't think they \"\"actually\"\" turned a profit, did they? As I understand it, this is an accounting method/trick, it's not as if they generated more income by using this system. They just made their monetary value visible rather than implicit. Which is not the same as turning a profit... or am I missing something?\"",
"title": ""
},
{
"docid": "abf616c3123c474f8459d5c623759525",
"text": "\"Capitalization rate and \"\"Net Profit margin\"\" are two different things. In Capitalization rate note that we are taking the \"\"total value\"\" in the denominator and in Net profit margin we are taking \"\"Revenue/Sales\"\". Capitalization Rate: Capitalization Rate = Yearly Income/Total Value For example (from Investopedia: ) if Stephane buys a property that will generate $125,000 per year and he pays $900,000 for it, the cap rate is: 125,000/900,000 = 13.89%. Net Profit margin: Net Profit margin = Net Profit/Revenue For example (from finance formulas): A company's income statement shows a net income of $1 million and operating revenues of $25 million. By applying the formula, $1 million divided by $25 million would result in a net profit margin of 4%. Although the formula is simplistic, applying the concept is important in that 4% of sales will result in after tax profit.\"",
"title": ""
},
{
"docid": "5d76fadccd5c00848bce6f788765e133",
"text": "The website likely has no differentiation. I am hoping, however, the service does. I'm not looking to break down a fledgling business plan, I am just looking for information on how and where to build or buy a website that performs thusly: Company creates account and posts the service they can provide, Consumer applies for said service, I deal with some required middle-man work which is at the cost of the consumer.",
"title": ""
},
{
"docid": "4478326e08817e1c19391c1f9412df4f",
"text": "I'll address one part of your question: There are other taxes that companies pay as well, such as income tax, but don't charge to the customer as a fee. So, why are gross receipts taxes charged to the customer? Things like income tax can't be passed on to the consumer in a direct way, because there's no fixed relationship between the amount of the tax and the price of an individual product. Income tax is paid on taxable income, which will incorporate deductions for the costs the company incurred to do business. So the final amount of corporate income tax can depend on things unrelated to the price of goods sold, like whether the business decided to repave their parking lot. Gross receipts taxes, by definition, are charged on the total amount of money taken in, so every dollar you spend on an item at the store will be subject to the gross receipts tax, and hence will cost the business 7 cents (or X% where X is the tax rate). This means there is a direct link between the price you pay for an individual item and the tax they pay on that transaction. The same is true for sales taxes, which are also often added at the time of sale. Of course, businesses could roll all of these into the posted price as well. The reason they don't is to get their foot in the door and make the price seem lower: you're more likely to buy something if you see it for the low, low, one-time-only price of $99.99, act now, save big, and then find out you owe an extra $7 at the register than if you saw $107 on the price tag.",
"title": ""
},
{
"docid": "0ddf5935ce37f66c96defd0182a0c28d",
"text": "\"This may be closed as not quite PF, but really \"\"startup\"\" as it's a business question. In general, you should talk to a professional if you have this type of question, specifics like this regarding your tax code. I would expect that as a business, you will use a proper paper trail to show that money, say 1000 units of currency, came in and 900 went out. This is a service, no goods involved. The transaction nets you 100, and you track all of this. In the end you have the gross profit, and then business expenses. The gross amount, 1000, should not be the amount taxed, only the final profit.\"",
"title": ""
},
{
"docid": "357f1cc25dd74cf4a74ebde1173c86e9",
"text": "Fair enough and I appreciate the advice. But I think in some cases we have a duty to point out contradictory statements, especially if they could be misleading to the average person. I don't want some poor kid who scraped together a few bucks, sees the big revenue numbers and assumes it's a sure thing.",
"title": ""
},
{
"docid": "1defa2bcf6bda85ad0dc8280d65617a5",
"text": "I don’t get how companies can keep saying this. Profit is by definition money you didn’t spend on anything (like research). I realize that profit could be used on research in future years, but presumably you will also have excess income in future years to use for that expense. That’s a bum deal though because you will have to pay 35% tax. Making a profit at all means you chose not to invest that money in research but instead to bank the money (pay shareholders).",
"title": ""
}
] |
fiqa
|
237288ff3d87e5194abc9d4df4a0e679
|
Will unpaid taxes prevent me from getting a business license?
|
[
{
"docid": "481ac34f64709d8cf3344777f414e3ac",
"text": "Generally these things are unrelated. Your tax debt is to agency X, your license is (mostly) from agency Y. If your business involves agency X, then it may be a problem. For example, you cannot get a EA license (IRS Enrolled Agent) if you have unsettled tax debt or other tax compliance issues. You should check Michigan state licensing organizations if there are similar dependencies. Also, some background checks may fail, and some state licenses require them to pass. For example, you can probably not get an active bar registration or a CPA license with an unsettled tax debt. You might have a problem with registering as a Notary Public, or other similar position. You can probably not work in law enforcement as a contractor. If you're on an approved payment plan - then your tax debt is settled unless you stop paying as agreed, and shouldn't be a problem.",
"title": ""
}
] |
[
{
"docid": "b228fd9c49d849a76e562c6128b35a42",
"text": "The key here is that you are defacto running your own company no matter if you acknowledge it or not. In the end these questions have the goal of deciding if you can and will repay the loan. Presumably you filed taxes on your income. These can be shown to the loan officer as proof you have the ability to repay your loan. Running your freelancing as a business has advantages of being able to deduct normal expenses for running the business from your revenue. I am not sure how business cards improves your credit worthiness as they can be had for $10 in about an hour.",
"title": ""
},
{
"docid": "d3d82e1a48bd6fd8afb26538e78100d8",
"text": "I'm not a tax advisor, but I've done freelance work, so... If any of your side-business revenue is reported on a 1099, you're now a business owner, which is why Schedule C must be filled out. As a business owner, minimum wage doesn't apply to you. All revenue is income to you, and you owe taxes on the profit, after subtracting legitimate (verifiable) business expenses. You'll want to talk to a real tax advisor if you're going to start expensing mileage, part of your house (if you use a home office), etc. Don't forget that you'll owe self-employment tax (the employer's half of your payroll tax). You can't save money on business taxes by paying yourself a wage and then counting it as an expense to the business. You'll definitely want to talk to a tax expert if you start playing around with finances as an (the) owner of the business. Income that is not reported on a 1099 should be reported as hobby income.",
"title": ""
},
{
"docid": "60d1a712627df48b4980974e0aeb01aa",
"text": "\"I would look into the possibility that the promise \"\"that no taxes will be withheld\"\" is all about your status as a 'consultant'. They may be meaning you to be treated like a business they buy services from. In Canada the distinction is very watery and I presume the same in India. If you agree to become a business, then you must look into how that business income will be taxed.\"",
"title": ""
},
{
"docid": "e777d2a86f7c8909f956cb2d086fbfa0",
"text": "\"Depending on where you are, you may be able to get away with filing a \"\"Doing Business As\"\" document with your local government, and then having the bank call the county seat to verify this. There is generally a fee for processing/recording/filing the DBA form, of course. But it's useful for more purposes than just this one. (I still need to file a DBA for my hobby work-for-pay, for exactly this reason.)\"",
"title": ""
},
{
"docid": "a4e58727a5c4014e2a94305aaf66c17a",
"text": "If the business activities are closely related you could combine them into a single Schedule C, but in your case it sounds like it should be two separate Schedule C's. The loss from one will offset profit from the other, and your self-employment and income taxes will be based on the net of the two businesses. Any business can generate losses, make sure your expenses are reasonable and documented, there are plenty of resources out there for helping you decide which expenses are proper for each business. There is some truth to the warning that not showing profit in 2/5 of years can raise flags at the IRS, and they may deem your business a hobby, which disallows losses. That is not a hard rule, legitimate businesses can lose money for years on end without issue, if you're trying to make money at it, you'll likely be fine.",
"title": ""
},
{
"docid": "798b7e6bc74d6616c7519f59123450e2",
"text": "\"The IRS provides a little more information on the subject on this FAQ: Will I be charged interest and penalties for filing and paying my taxes late?: If you did not pay your tax on time, you will generally have to pay a late-payment penalty, which is also called a failure to pay penalty. Some guidance on what constitutes \"\"reasonable cause\"\" is found on the IRS page Penalty Relief Due to Reasonable Cause: The IRS will consider any sound reason for failing to file a tax return, make a deposit, or pay tax when due. Sound reasons, if established, include: Note: A lack of funds, in and of itself, is not reasonable cause for failure to file or pay on time. However, the reasons for the lack of funds may meet reasonable cause criteria for the failure-to-pay penalty. In this article from U.S. News and World Report, it is suggested that the IRS will generally waive the penalty one time, if you have a clean tax history and ask for the penalty to be waived. It is definitely worth asking them to waive the penalty.\"",
"title": ""
},
{
"docid": "780b96c72f6cd2a52d3c176d78d3a5cb",
"text": "You're eligible to do whatever you please, regardless of what you owe as long as you're in a payment plan approved by the IRS which you follow religiously. That said, let me incorporate some of the comments, as they're important: ChrisInEdmonton said: Note that almost all such 'opportunities' are scams. In order to provide a complete answer, you'll need to explain the terms of your installment agreement with the IRS. Also, just curious. If you have the money to start up a business, why aren't you using it to pay back the money you owe John Bensin added: I strongly recommend you read through a few links on work-at-home scams, e.g. fraud.org, forbes, Wikipedia, and the FTC before joining something like this, to be safe",
"title": ""
},
{
"docid": "98e4a30799ac22fdf632c7ade120ac85",
"text": "\"The decision whether this test is or is not met seems to be highly dependent on the specific situation of the employer and the employee. I think that you won't find a lot of general references meeting your needs. There is such a thing as a \"\"private ruling letter,\"\" where individuals provide specific information about their situation and request the IRS to rule in advance on how the situation falls with respect to the tax law. I don't know a lot about that process or what you need to do to qualify to get a private ruling. I do know that anonymized versions of at least some of the rulings are published. You might look for such rulings that are close to your situation. I did a quick search and found two that are somewhat related: As regards your situation, my (non-expert) understanding is that you will not pass in this case unless either (a) the employer specifies that you must live on the West Coast or you'll be fired, (b) the employer would refuse to provide space for you if you moved to Boston (or another company location), or (c) you can show that you could not possibly do your job out of Boston. For (c), that might mean, for example, you need to make visits to client locations in SF on short-notice to meet business requirements. If you are only physically needed in SF occasionally and with \"\"reasonable\"\" notice, I don't think you could make it under (c), although if the employer doesn't want to pay travel costs, then you might still make it under (a) in this case.\"",
"title": ""
},
{
"docid": "30dbc27585a5e7c1e53bbaec9a1a710e",
"text": "Generally speaking, if a business loses money for whatever reason, then that reduces the profits of the business which reduces the tax payable. However if you were holding the assets on a personal basis prior to incorporating the business, the position may become more complicated. For that kind of money some professional advice may be worthwhile.",
"title": ""
},
{
"docid": "d42df4b19921edac9589e2d0d8ad984a",
"text": "\"The FTB, as any government agency, is understaffed and underpaid. Even if someone took a glance and it wasn't just an automated letter - consider the situation: you filed as a LLC and then amended to file as a partnership. Unless someone really pays attention - the obvious assumption would be that you had a limited partnership. Yes, you'll need to call them and work with them on fixing this. They do have all the statements you've attached. However, there's a lot of automation and very little attention to details when it comes to matching errors, so don't get surprised if no-one even looked at these statements. Next time your elected government officials talk about \"\"small government\"\" and \"\"cutting government expenses\"\" - you can remind yourself how it looks in action with this experience.\"",
"title": ""
},
{
"docid": "7631499e373cae1204e353f7b36277e8",
"text": "Welcome to the wonderful but oft confusing world of self-employment. Your regular job will withhold income for you and give you a W2, which tells you and the government how much is withheld. At the end of the year uber will give you and the government a 1099-misc, which will tell you how much they paid you, but nothing will be withheld, which means you will owe the government some taxes. When it comes to taxes, you will file a 1040 (the big one, not a 1040EZ nor 1040A). In addition you will file a schedule C (self-employed income), where you will report the gross paid to you, deduct your expenses, and come up with your profit, which will be taxable. That profit goes into a line in the 1040. You need to file schedule SE. This says how much self-employment tax you will pay on your 1099 income, and it will be more than you expect. Self employment tax is SS/Medicare. There's a line for this on the 1040 as well. You can also deduct half of your self-employment tax on the 1040, there's a line for it. Now, you can pay quarterly taxes on your 1099 income by filing 1040-ES. That avoids a penalty (which usually isn't that large) for not withholding enough. As an alternative, you can have your regular W2 job withhold extra. As long as you don't owe a bunch at tax time, you won't be a fined. When you are self-employed your taxes aren't as simple. Sorry. You can either spend some time becoming an expert by studying the instructions for the 1040, pay for the expensive version of tax programs, or hire someone to do it for you. Self-employed taxes are painful, but take advantage of the upsides as well. You can start a solo 401(k) or SEP IRA, for example. Make sure you are careful to deduct every relevant business expense and keep good records in case you get audited.",
"title": ""
},
{
"docid": "9e05178a960e4ac1afccd78077c46d1a",
"text": "It would seem to be in your best interest to file, and that probably means that you should do all you can to get your documents back. If you are in fact owed a refund then there is apparently no penalty to filing late. If you instead owe taxes, you better file in any case since the fees stack up pretty fast: 5% per month after the due date up to 25% of the taxes owed.",
"title": ""
},
{
"docid": "afd0af4f530800a292b002e12d4917c2",
"text": "The IRS can direct your refund towards repayment of your unpaid taxes either on Federal or State/Local level. Whether it will depends on whether the State of New York will ask for it. Generally, if you owe taxes to New York for this year only, you would expect them to wait for you to file your State tax return and pay the taxes owed. If you don't - I'm pretty sure that the next year refund from the IRS will go directly to them.",
"title": ""
},
{
"docid": "1be25d189c6efb019fd87a53bad1e3a2",
"text": "\"Before filing your first business tax return, you will need to choose a taxation method, either corporation or partnership. If you choose a partnership, then it's moot - your business income flows through to your personal taxes via form K-1. Also, regardless of your taxation method, you should consult a legal expert, since having your business pay off your personal debt would almost always be counted as income to you, and may cause you to lose the personal liability protections provided by the LLC (aka \"\"piercing the corporate veil\"\"). Having a single-member LLC with no employees, you have to be very careful how you manage the finances of the business. Any commingling of personal and business could jeopardize your protections.\"",
"title": ""
},
{
"docid": "e514d818bc9ca8b9d5b4054e4321ba20",
"text": "If you or she can't answer this or don't have access to someone who can, then I fear for the business. That said, it really depends on where you are and how your business is incirporared, but I can't think of any law prohibiting it where I am. I was an employee of my dad's business as soon as I was legal.",
"title": ""
}
] |
fiqa
|
b847670e949460db7ce8e4bf86554d98
|
Using cash back rewards from business credit card
|
[
{
"docid": "c27a6745db872edf0b1741bb3136b829",
"text": "\"A C-Corp is not a pass-through entity, any applicable taxes would be paid by the Corporation, which is a separate legal entity from yourself. If you use the points to purchase something for yourself, that would constitute \"\"income\"\" to you, and would be taxable on your personal income tax.\"",
"title": ""
}
] |
[
{
"docid": "bb61a842ce680b93e02b19b67966b87f",
"text": "The biggest advantage to small business owners paid in cash is not that it might save the 2 or 3 percent that would go to the credit card company. The biggest advantage is that they have the opportunity to keep the transaction entirely off the books and pocket the cash without paying income tax or sales tax, especially when no receipt is given, or when it's a service instead of a product being sold, or when it's an approximately-tracked inventory unit going out the door. Although it's illegal, it's widely done, and it's also often a temptation for employees to try and get away with doing it too.",
"title": ""
},
{
"docid": "fad9d64626f90023c966ca639615a523",
"text": "Every reward program has to have a funding source. If the card gives you x percent back on all purchases. That means that their business is structured to entice you to pump more transactions through the system. Either their other costs are lower, or the increased business allows them to make more money off of late fees, and interest. If the card has you earn extra points for buying a type of item or from a type of store (home stores improvement in the Spring), they are trying to make sure you use their card for what can be a significant amount of business during a small window of time. Sometimes they cap it by saying 5% cash back at home improvement stores during the spring but only on the first $1500 of purchases. That limits it to $75 maximum. Adding more business for them, makes more money for them. Groceries and gas are a good year round purchase categories. Yes there is some variation depending on the season, and the weather, but overall there is not an annual cliff once the season ends. Gas and groceries account for thousands of dollars a year these are not insignificant categories, for many families are recession proof. If they perceive a value from this type of offer they will change their buying behavior. My local grocery store has a deal with a specific gas station. This means that they made a monetary deal. Because you earn points at the grocery store and spend points at the gas station, the grocery store is paying some compensation to the gas station every time you use points. The gas station must be seeing an increase in business so theoretically they don't get 100% compensation from the grocery store. In cases where credit cards give airline miles, the credit card company buys the miles from the airline at a discount because they know that a significant number of miles will never be used.",
"title": ""
},
{
"docid": "71a0b8631383a8b1177ba145a64901c7",
"text": "Most corporate policies strictly prohibit the card's use for personal use, even if the intent is to re-pay in full, on or before the due date. I'm certain it has something to do with limitation of liability, i.e. the monetary risk the company is willing to put itself at, in order to offer a corporate card program. In my experience, AMEX Corporate Card Services is the most widely-used card, and in my experience, it is your employer that determines and administers the policy that outlines the card's appropriate use, not the credit card provider, so you're best to check with your employer for a definitive answer to this.",
"title": ""
},
{
"docid": "201215f5a28ef482514c43dc2665a62c",
"text": "Early on, one might not be able to get credit for their business. For convenience, and the card perks, it makes sense to use the personal card. But for sake of a clean paper trail, I'd choose 1 card and use it exclusively, 100% for the business. Not one card here, one card there.",
"title": ""
},
{
"docid": "28f5fd1be3e440ee825ed5e611e92156",
"text": "\"My visa would put the goods on the current monthly balance which is no-interest, but the cash part becomes part of the immediate interest-bearing sum. There is no option for getting cash without paying immediate interest, except perhaps for buying something then immediately returning it, but most merchants will do a refund to the card instead of cash in hand. This is in New Zealand, other regions may have different rules. Also, if I use the \"\"cheque\"\" or \"\"savings\"\" options at the eftpos machine instead of the \"\"credit\"\" option, then I can have cash immediately, withdrawn from my account, with no interest charge. However the account has to have sufficient balance to do so.\"",
"title": ""
},
{
"docid": "83f758c9b6e7d0361a0f2e31ea2af083",
"text": "\"Just to add about using debit card as \"\"credit\"\" vs \"\"debit\"\" way: In addition to the difference of having to enter the PIN when using \"\"debit\"\" mode (vs having to sign in \"\"credit\"\" mode), for stores that offer cash back (i.e. get cash out of your account at the same time as paying), you can only get cash back when using \"\"debit\"\" mode.\"",
"title": ""
},
{
"docid": "9c5d19f86f6a258331619d82c4f35037",
"text": "\"How does adding a revenue stream from the most profitable and widely penetrated products in existence read to you as \"\"shooting blind\"\"? Do you have any idea what interest rates on a card like this are? If you've ever worked retail, you know that credit card sign ups are a key metric nearly every employee is judged by\"",
"title": ""
},
{
"docid": "a171253b625c7d87549f463f0d5316ce",
"text": "A few years ago, I had the rare opportunity to take advantage of a credit card offer. Specifically, a 10% cash back deal on purchases at drug stores or supermarkets. The offer was limited to 90 days, so during that time, I bought 100 cash gift cards at my local CVS. Over the next year to use them all, when they dropped to a balance under $5 or so, I signed in to my cable TV account and charged the remaining balance there. No bothering a supermarket clerk, or store owner.",
"title": ""
},
{
"docid": "664ac815a7ce281e2d8c534be6cb0ecc",
"text": "Credit card fees on a credit card used for personal expenses are not tax deductible. Credit card fees on a business credit card are deductible on schedule C (or whatever form you're using to report business income and expenses). If you are using the same card for both business and personal ... well, for starters, this is a very bad idea, because it creates exactly the question you're asking. If that's what you're doing, stop, and get separate business and personal cards. If you have separate business and personal cards -- and use the business card only for legitimate business expenses -- then the answer is easy: You can claim a schedule C deduction for any service charges on the business card, and you cannot claim any deduction for any charges on the personal card. In general, though, if you have an expense that is partly business and partly personal, you are supposed to figure out what percentage is business, and that is deductible. In an admittedly brief search, I couldn't find anything specifically about credit cards, but I did find this similar idea on the IRS web site: Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part. For example, if you borrow money and use 70% of it for business and the other 30% for a family vacation, you can deduct 70% of the interest as a business expense. The remaining 30% is personal interest and is not deductible. Refer to chapter 4 of Publication 535, Business Expenses, for information on deducting interest and the allocation rules. (https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses) So, PROBABLY, you could add up all the charges you made on the card, figure out how much was for business and how much for personal, calculate the business percentage, and then deduct this percentage of the service fees. If the amount involved is not trivial, you might want to talk to an accountant or a lawyer.",
"title": ""
},
{
"docid": "104ae8a9ec8b6b78961094e0cd95e102",
"text": "If you had a CC issuer that allowed you to do bill-pay this way, I suspect the payment would be considered a cash advance that will trigger a fee and a pretty egregious cash advance specific interest rate. It's not normal for a credit payment portal to accept a credit card as payment. If you were able to do this as a balance transfer, again there would be fees to transfer the balance and you would not earn any rewards from the transferred balance. I think it's important to note that cash back benefits are effectively paid by merchant fees. You make a $100 charge, the merchant pays about $2.50 in transaction fee, you're credited with about $1 of cash back (or points or whatever). Absent a merchant transaction and the associated fee there's no pot of money from which to apply cash back rewards.",
"title": ""
},
{
"docid": "123c5d8da7e052d5b03841cd5706169a",
"text": "Cash-back also lets the store turn hard currency into an electronic transfer or check, which reduces the hassle/risk of hauling bagfulls of cash to the bank. (The smaller stores I've spoken to have called this out as a major advantage of plastic over either cash or checks. I'm assuming that the problem scales with number and size of transactions.)",
"title": ""
},
{
"docid": "ce7c0d1463f54bb3023002cd4b68a3ca",
"text": "Think about the credit card business model... they have two revenue generators: interest and fees from borrowers and commissions and fees to merchants. The key to a successful credit card is to both sign up lots of borrowers AND lots of merchants. Credit card fortunes have improved dramatically since the 1990's when formerly off-limits merchants like grocery stores began to accept cards. So when a credit card lets you just pull cash out of any ATM, there are a few costs they need to account for when pricing the cost for such a service: Credit card banks have managed to make cash advances both a profit center and a self-serving perk. Knowing that you can always draw upon your credit line for an emergency when cash is necessary makes you less likely to actually carry cash and more likely to just rely on your credit card.",
"title": ""
},
{
"docid": "2c5147bfa6a3aafee6dce338a7345b10",
"text": "How would you respond to these cases: Limited card options - If someone has a bad credit record the cards available may only be those with an annual fee. Not everyone will have your credit record and thus access to the cards you have. Some annual fees may be waived in some cases - Thus, someone may have a card with a fee that could be waived if enough transactions are done on the card. Thus, if someone gives enough business to the credit card company, they will waive the fee. On the point of the rewards, if the card is from a specific retailer, there could be a 10% discount for using that card and if the person purchases more than a couple thousand dollars' worth from that store this is a savings of $200 from the retail prices compared to what would happen in other cases that more than offsets the annual fee. If someone likes to be a handyman and visits Home Depot often there may be programs to give rewards in this case. Credit cards can be useful for doing on-line purchases, flight reservations, rental cars and a few other purchases that to with cash or debit can be difficult if not close to impossible. Some airline cards have a fee, but presumably the perks provide a benefit that outweigh that fee over the year. I'm thinking of the Citibank cards tied to American Airlines, first year free, then an $85 fee.",
"title": ""
},
{
"docid": "da2aca5da58a76597741eeac1315b3d5",
"text": "Everyone else seems to have focused (rightly so) on the negatives of credit cards (high interest rates) and why it is important to pay them off before interest starts accruing. Only Marin's answer briefly touched on rewards. To me, this is the real purpose of credit cards in today's age. Most good rewards cards can get you anywhere from 1-2% cash back on ALL purchases, and sometimes more on other categories. Again, assuming you can pay the balance in full each month, and you are good at budgeting money, using a credit card is an easy way to basically discount 1-2% of all of the spending you put on your card. AGAIN - this only works to your advantage if you pay off the credit card in full; using the above example of 20% interest, that's about 1.6% interest if the interest compounds monthly, which wipes out your return on rewards if you just go one month without paying off the balance.",
"title": ""
},
{
"docid": "336b97b24895254218c39d45f15f8b28",
"text": "\"in theory, yes. in practice, no. largely because merchants pay a fee to process credit card transactions which normally exceeds the cash back you can get. i tried this with square, since their vendor fee was 2.75%, and i got 5% back on restaurants. however, even though i registered with square as a restaurant, transactions were categorized as \"\"other services\"\" or something, so i only got 1% back and lost 1.75% net. moreover, if you did find a card/processor combination that left you with a net gain, they would eventually catch on and charge you with some sort of fraud. i wasn't worried about it with the square experiment because it was only 1$, but if you tried to do this with large sums, a human would catch you. and if it was enough money to matter, there would be a lawsuit. if you were really unlucky, you might get charged with some terrorism crap like \"\"structuring\"\" deposits.\"",
"title": ""
}
] |
fiqa
|
54bd4165acdf496c4b7725cb5c3879dc
|
Moving my online only business to the USA?
|
[
{
"docid": "09764573fc064e61fbf2479f95d269b5",
"text": "You don't need a Visa to create or own US property. Your registered agent will be able to take care of most of this, and your new entity will use the registered agent's address where applicable, but you may need your own separate address which can be your office in the UK. If you want privacy then you'll want a separate address, which can also be a PO Box or an address the registered agent also provides. US corporations, especially in Delaware, have a lot more compliance issues than the LLC product. Delaware has a lot more costs for formation and annual reports than most other united states. There are definitely a lot of states to choose from, but more people will have information for Delaware.",
"title": ""
}
] |
[
{
"docid": "f424b6101ae3d715402a19f6895b7ae4",
"text": "Well I am kind of looking for a way to make it little bit more official if I can ... :D I have no toruble for paying taxes to US and anything ... Just don't want to spend 4000$ on 2 year VISA for a model that will stay in NYC for 3 weeks ... Doesn't make sense ...",
"title": ""
},
{
"docid": "fc267f3350b78dfbd46c7d16a0e08121",
"text": "I would talk to an immigration lawyer. This sounds like the kind of thing that they'd deal with frequently. As I understand it, your concern is mostly about managing the transfer, not the sale. An immigration lawyer is going to see clients with overseas assets frequently. If this isn't something that they do themselves, they can refer you appropriately. In general when I'm looking for a lawyer, I start with the local bar association. The one for San Francisco. If that's the wrong bay area, they are normally at the county level. So you can find them by searching for bar association with the appropriate county or city name. If you explain your problem briefly, they can direct you.",
"title": ""
},
{
"docid": "b624f7bc1ba8733ab15603c0fe94a1c7",
"text": "Maybe tell them you also have projects you're bidding in the US and to link you up with the highest volume distributors in US? Then buy in US and import yourself? Don't tell the us distributors your plan because they wouldn't want to step on toes of other distributors.",
"title": ""
},
{
"docid": "a41efbee5c826099835787e354a813b0",
"text": "I just tried doing that on my PP which is in the Netherlands, I have added a USD bank account (from my dutch bank) and they sent the verification amount in Euros, I called the bank and wonder why they didn't let me choose account currency they said it's not possible and if I cashout Dollars that I have in my PP (cause we usually do international business so we set it to dollars) it will be changed to Euros, So we decided to keep the dollars in account to pay our bills instead of getting ripped off by PayPal in xchange rates.",
"title": ""
},
{
"docid": "6bb5409ce375190d4102c600b999193c",
"text": "First decide if the best route is to distribute as a middle man (eg.land an Amazon or Walmart contract), or to distribute it through yourself (your own company). Is it more profitable to form your own corporation or have the mother company establish a international entity in N.A? (fees apply but they could be minuscule to your projected margins(eg.$5000 fee to open up a market of $1,000,000+ GP)) If you decide you want to establish your own means of distribution, you will have to decide if your going to build physical locations or do online distribution. Depending on what the product or service your providing, you generally have more possibilities and opportunities with online market. You can run an online website, incorporate an online store that accept online payments, and shipping products for less than $5000 a year. (Monthly payments for the services provided, excluding any shipping/import costs) This would be done with the means of website hosts such as GoDaddy, or retail hosts like Shopify.",
"title": ""
},
{
"docid": "5a6c19087f1431dd9a7ab61dc764a70a",
"text": "\"Your own site/business. I’m in freelancing and internet business for 15 years, 20 years IT experience. Currently i use freelance websites for cheap Asian employees, very seldom for EU/USA employees, and if only if local competition is heavily out-pricing qualified staff. Till I went \"\"limited\"\" i.e., founded a limited corporation I was jobbing as freelancer and sole proprietor, both with limited success due to the strong Asian competition i myself currently hire. The point where freelancing got \"\"not sustainable\"\" as primary income was 2006 for me, don’t want to get into detail but every freelancer who was active back then knows what I mean, it was like whole India got internet. If you have absolutely no references, do it for the references a limited time and see the fee you pay as service for you to get references, then start your own web identity, either as freelancer or as corporation. Make sure you take your very satisfied customers with you. Every \"\"very satisfied\"\" customer in your contact list means 10 new customers which mean 2 new customers which mean 0.2 new customers and so on. Honestly, this info is solely based on experience of this niche fro ma European citizen perspective, if you’re based anywhere else the situation might be totally different.\"",
"title": ""
},
{
"docid": "f35dc2b4f733eb9ba74e1f60e5b27dd4",
"text": "\"FYI, USA is not the only country in the world. If you try to stop people from making money, they will go do it elsewhere. Other countries are more than willing and competent, to accept these HFT folk. Even if all countries stop HFT. There will be encrypted black markets for this on the internets. Google \"\"dark pools\"\". Regulators are light years behind the ingenuity shown by Wall Street to find inefficiencies in the market. Computers and quantitative finance are here to stay. You cannot ask people to trade using emotions like during the Great Depression Era.\"",
"title": ""
},
{
"docid": "6d87e11efcd1821a28428fdb83e5d531",
"text": "Most US banks allow to initiate wire transfers online. (I do it regularly with BoA and JPMorgan-Chase) Once you have your account details in Germany, you log on to your US account, set it up, and initiate the transfer; that should go through within one day. The exchange ratio is better than anything you would get buying/selling currency (paper cash money), no matter where you do it. Chase takes a fee of 40$ per online transaction; BoA 45$. The receiving bank might or might not take additional fees, they should be lower though (I have experienced between 0€ and 0.35%). Therefore, it is a good idea to bundle your transfers into one, if you can.",
"title": ""
},
{
"docid": "cf02d9afe89d760433501c750e5a1575",
"text": "Okay so I have just had a phone call with US Ambassy in CZ and they told me that ESTA is only for business trips without earning any money in US ... So that I will need a US entity (some company/person) to sign some kind of petition for my models before they travel to US and vouch for them ... Is that correct? Anybody knows how much that costs? Also they gave me this website: https://www.uscis.gov/ And said it has to be all arranged in US, that they can't do anything on their CZ part.",
"title": ""
},
{
"docid": "fcaf54599e1643faabf88cf789396fb3",
"text": "I guess you are making quite a bit of assumptions without clarifying what you are trying to achieve. As a non-resident you cannot incorporate a sole proprietorship in Singapore. You have to be citizen. Alternatively you can register a company that has its own norms like minimum number of directors and some being Singapore national, etc. As you are paying dividend and not salary to yourself, the company will be required to pay taxes on gains. So all consulting money is gain as there is no expense. The balance when you transfer to Spain would potentially get taxed as income to you subject to DTAA",
"title": ""
},
{
"docid": "d30b6a6a3cc52d3c894e076b53b6c1f1",
"text": "There is nothing called best; Depending on the amounts there are several options and each will cost some money. If your business is still small customers are individuals try PayPal it will be easy for everyone. The other options are accepting Credit Card, you would need to set-up card gateway on your website etc Simple wire transfer, it will cost more both for your customers and to you.",
"title": ""
},
{
"docid": "fcd63746460412b016148057d123dec0",
"text": "It looks like your best option is to go with an online broker. There are many available. Some of them won't let you open an account online as a foreign national but will allow you to open one through the mail. See more about that http://finance.zacks.com/can-nonus-citizen-trade-us-stocks-9654.html Also keep in mind that you will need to pay taxes on any capital gains made through selling http://www.irs.gov/pub/irs-pdf/p519.pdf",
"title": ""
},
{
"docid": "a16a073fbef02fb2422c039375c8413b",
"text": "\"What would be the best strategy to avoid paying income taxes on the sale after I move to another US state? Leaving the US and terminating your US residency before the sale closes. Otherwise consider checking your home country's tax treaty with the US. In any case, for proper tax planning you should employ a licensed tax adviser - an EA, CPA or an attorney licensed in your State (the one you'd be when the sale closes). No-one else is legally allowed to provide you tax advice on the matter. Because the company abroad is befriended, I have control over when (and e.g. in how many chunks) the earnings of the sale flow into my LLC. So I can plan where I live when that money hits my US account. I'm not familiar with the term \"\"befriended\"\" in this context, but form what I understand your description - its a shell corporation under your own control. This means that the transfer of money between the corporation and your LLC is of no consequence, you constructively received the money when the corporation got it, not the LLC. Your fundamental misunderstanding is that there's importance to when the money hits your US bank account. This is irrelevant. The US taxes your worldwide income, so it is taxed when you earn it, not when you transfer it into the country (as opposed to some other countries, for example India or the UK). As such, in your current scheme, it seems to me that you're breaking the US tax law. This is my personal impression, of course, get a professional advice from a licensed tax professional as I defined earlier.\"",
"title": ""
},
{
"docid": "00bc89ab3a0057676da35438e13822f5",
"text": "I have just established a limited company (three directors spread around the UK) and I am in the process of setting up a business account. We will be able to arrange everything over the phone and each of us will have to appear in one of the branches with original documents: passport, bank statement. We are EU citizens and have UK bank accounts for over 5 years. That would probably be a problem for you. But still, you can try to call around and see if you can find a company to help you. You can also setup an account on one of the online currency exchange websites and then provide your customers with the website's bank account details with appropriate reference. You would have to check the legal side of this solution.",
"title": ""
},
{
"docid": "e11be041a4602cb98ea6178e945d96c5",
"text": "\"I think the best advice you could get would be to find a lawyer. If that foreign company has any presence in the US, they should be the ones signing off as the successor, otherwise you may find yourself in a limbo that would require some legal assistance. Generally, in most States a Corporation cannot be dissolved without resolving issues like this, which is probably why they told you \"\"the plan is terminating\"\". Someone asked them to terminate it. You need to find that someone.\"",
"title": ""
}
] |
fiqa
|
446bc5ee9674c402d985bbaa3ead604a
|
Moving a personal business to a LLC accounting in California
|
[
{
"docid": "7b1233ae9dd1d191f141dc68a959fce6",
"text": "You can move money in and out of the business at will, just keep track of every transaction. Ideally you'd use an accounting software like QuickBooks or similar. Create a Capital Contributions account and every time you put money into the business checking account record it as a Capital Contribution. Likewise, if you take money out of the business, it comes from your capital accounts. (You can create a separate Capital Distributions account in your accounting software, or just use a single account for contributions and distributions). Money coming in and out of those capital accounts is not taxable because you will pay taxes based on net earnings regardless of whether or not you have distributed any profits. So there's no need to make a loan to the company, which would have tax consequences. To reimburse yourself for purchases already made, submit an expense report to the company. If the company is unfunded right now, you can make a capital contribution to cover current expenses, submit the expense report, and wait until you have some profits before paying out the expense report or making any distributions. Welcome to entrepreneurship.",
"title": ""
}
] |
[
{
"docid": "27bec497641aba62dca43f9539efbc33",
"text": "Recommend using quickbooks for account management. If you use the manufacturing and wholesale you can track POs from vendors, estimates, bill payment quotes and invoicing (there's an editor to customize your set up)Also, most accountants are very familiar with this platform so come tax time they'll be able to give you a hand no problem. For accepting payments I highly suggest asking for checks. If you do accept credit cards keep in mind most payment processors charge a percent (1.5-3%) depending on transaction amounts and quantities of transactions. So you'll want to mark up your products by at least that amount. Another area is sales tax. Since you are not the end user you should be able to avoid sales tax on the items you will be selling to customers. You then charge the customer this sales tax. Not sure about NJ but in Texas we are 8.25%. I then pay the state of Texas the taxes collected quarterly. Edit: also make sure you have separate finances for the LLC. Separate checking, separate credit card, separate everything! If you end up using an account that is tied to you personally then you run into the risk of losing the protective nature of an LLC from a legal standpoint. Edit2: by separate I mean using your IRS issued EIN number to open accounts with the LLC name. When you sign anything on behalf of the company make sure to add the name of the company next to it to show the company is making the signature not you. For instance u/sexlessnights Company name, LLC",
"title": ""
},
{
"docid": "cb98230292e4dc41833451410c889127",
"text": "You're confusing a lot of things here. Company B LLC will have it's sales run under Company A LLC, and cease operating as a separate entity These two are contradicting each other. If B LLC ceases to exist - it is not going to have it's sales run under A LLC, since there will be no sales to run for a non-existent company. What happens is that you merge B LLC into A LLC, and then convert A LLC into S Corp. So you're cancelling the EIN for B LLC, you're cancelling the EIN for A LLC - because both entities cease to exist. You then create a EIN for A Corp, which is the converted A LLC, and you create a DBA where A Corp DBA B Shop. You then go to the bank and open the account for A Corp DBA B Shop with the EIN you just created for A Corp. Get a better accountant. Before you convert to S-Corp.",
"title": ""
},
{
"docid": "d383f879b0dd06a28fdc794ad67eb32d",
"text": "Supposedly this also means that I am free from having to pay California corporate taxes? Not in the slightest. Since you (the corporate employee) reside in CA - the corporation is doing business in CA and is liable for CA taxes. Or, does this mean I am required to pay both CA taxes and Delaware fees? (In this case, minimal, just a paid agent from incorporate.com) I believe DE actually does have corporate taxes, check it out. But the bottom line is yes, you're liable for both CA and DE costs of doing corporate business (income taxes, registered agents, CA corp fee, etc). Is there any benefit at all for me to be a Delaware C-Corp or should I dissolve and start over. Or just re-incorporate as California LLC Unless you intend to go public anytime soon or raise money from VCs/investors - there's no benefit whatsoever in incorporating in DE. You should seek a legal advice with an attorney, of course, since benefits are legal issues (usually related to choosing jurisdiction for litigation etc). If you're a one-person freelancer, doing C-Corp was not the best decision as well. Tax-wise you'd be much better off with a S-Corp, or a LLC - both pass-through and have no (Federal) entity-level taxes. Corporate rates are generally higher than individual rates, and less deductions can be taken. In California, check with a CPA/EA licensed in the State, since both S-Corp and LLC would be taxed, and taxed differently.",
"title": ""
},
{
"docid": "821d67b4880b9cbc60185d4405f61476",
"text": "\"You should have separate files for each of the two businesses. The business that transfers money out should \"\"write check\"\" in its QB file. The business that receives money should \"\"make deposit\"\" in its QB file. (In QB you \"\"write check\"\" even when you make the payment by some other means like ACH.) Neither business should have the bank accounts of the other explicitly represented. On each side, you will also need to classify the payment as having originated from / gone to some other account - To know what's correct there, we'd need to know why your transferring the money in the first place and how you otherwise have your books established. I think that's probably beyond the scope of what's on-topic / feasible here. Money into your business from your personal account is probably owner's equity, unless you have something else going on. For example, on the S Corp you should be paying yourself a salary. If you overpay by accident, then you might write a check back to the company from your personal account to correct the mistake. That's not equity - It's probably a \"\"negative expense\"\" in some other account that tracks the salary payments.\"",
"title": ""
},
{
"docid": "5d86ebab266bf0a5d9f55be7a5222389",
"text": "I am assuming this is USA. While it is a bit of a pain, you are best off to have separate accounts for your business and personal. This way, if it comes to audit, you hand the IRS statements for your business account(s) and they match your return. As a further precaution I would have the card(s) you use for business expenses look different then the ones you use for personal so you don't mess another one up.",
"title": ""
},
{
"docid": "0b6e1b0e8dfdea7a3a59e17fe6c97057",
"text": "I just switched CPA's and I am glad I did. My new CPA has made my life A LOT easier. If you're up for it, I can have my CPA call you. He's from California but works with many businesses in different states.",
"title": ""
},
{
"docid": "1f7667a2760ae4f21cf8be02f371e524",
"text": "\"Its not for US citizens - its for US residents. If the US considers you as a tax resident - you'll be treated the same as a US citizen, regardless of your immigration status. The question is very unclear, since it is not mentioned whether your US sourced income \"\"from the Internet\"\" is sales in the US, sales on-line, services you provide, investments, or what else. All these are treated differently. For some kinds of US-sourced income you should have paid taxes in the US already, regardless of where you physically reside. For others - not. In any case, if you become US tax resident, you'll be taxed on your worldwide income, not only the $10K deposited in the US bank account. ALL of your income, everywhere in the world, must be declared to the US government and will be taxed. You should seek professional advice, before you move to the US, in order to understand your responsibilities, liabilities and rights. I suggest looking for a EA/CPA licensed in California and experienced with taxation of foreigners (look for someone in the SF or LA metropolitan areas). Keep in mind that there may be a tax treaty between the US and your home country that may affect your Federal (but not California) taxes.\"",
"title": ""
},
{
"docid": "01146864ca51d161601ebe09cd8359b9",
"text": "First of all, this is a situation when a consultation with a EA working with S-Corporations in California, CA-licensed CPA or tax preparer (California licenses tax preparers as well) is in order. I'm neither of those, and my answer is not a tax advice of any kind. You're looking at schedule CA line 17 (see page 42 in the 540NR booklet). The instructions refer you to form 3885A. You need to read the instructions carefully. California is notorious for not conforming to the Federal tax law. Specifically, to the issue of the interest attributable to investment in S-Corp, I do not know if CA conforms. I couldn't find any sources saying that it doesn't, but then again - I'm not a professional. It may be that there's an obscure provision invalidating this deduction, living in California myself - I wouldn't be surprised. So I suggest hiring a CA-licensed tax preparer to do this tax return for you, at least for the first year.",
"title": ""
},
{
"docid": "50d712e4318ff47ff4c92c5ddf4fa22d",
"text": "I'm not certain I understand what you're trying to do, but it sounds like you're trying to create a business expense for paying off your personal debt. If so - you cannot do that. It will constitute a tax fraud, and if you have additional partners in the LLC other than you and your spouse - it may also become an embezzlement issue. Re your edits: Or for example, can you create a tuition assistance program within your company and pay yourself out of that for the purposes of student loan money. Explicitly forbidden. Tuition assistance program cannot pay more than 5% of its benefits to owners. See IRS pub 15-B. You would think that if there was a way to just incorporate and make your debts pre-tax - everyone would be doing it, wouldn't you?",
"title": ""
},
{
"docid": "7fd6d379a23acdd8369d63e87fb51d0e",
"text": "You're not physically present in the US, you're not a US citizen, you're not a green card holder, and you don't have a business that is registered in the US - US laws do not apply to you. You're not in any way under the US jurisdiction. Effectively connected income is income effectively connected to your business in the US. You're not in the US, so there's nothing to effectively connect your income to. Quote from the link: You usually are considered to be engaged in a U.S. trade or business when you perform personal services in the United States. You ask: If I form an LLC or C corp am I liable for this withholding tax? If you form a legal entity in a US jurisdiction - then that entity becomes subjected to that jurisdiction. If you're physically present in the US - then ECI may become an issue, and you also may become a resident based on the length of your stay.",
"title": ""
},
{
"docid": "8bee88c03ff8c758403ac1e82e9afc43",
"text": "The cost will be around $300-$500 if you do it correctly it in Florida and can be over a $1,000 if you do it in New York (New York is more expensive due to a publication requirement that New York has for LLC’s). The price ranges I’ve given include filing, state fees, getting a tax ID number (EIN), operating agreement, membership certificates, registered agent fees and publication fees if done in New York. Each state also have licensing boards and city fees that are applicable, so you would want to also make sure that you are keeping compliant there. Yearly paperwork to keep the LLC running won’t be so expensive, expect the state to charge a yearly fee and require some basic information to be submitted. I had a quick look at Florida, and with someone filing it for you, expect around $200 to $250 a year, plus registered agent fees. If you are late in Florida the penalty is $400 so you definitely would want a service that provides compliance calendar notifications to make sure you are on time with fees. In regards to bookkeeping and taxes, yearly tax filing will start at $250 to $500 for an LLC and move up from there depending on the services being offered and the amount of time of work. I recently referred someone to an accountant that will charge $250 to file an almost zero tax return on an LLC. I think $40 an hour is a little low for a bookkeeper but it all depends on where you are. I know in some major cities bookkeepers expect $75 an hour or higher. So the expectation in Miami and Manhattan will probably be more expensive than Jacksonville and Albany. If you doing a little business don’t expect the cost to be too much on the bookkeeping. So, breakdown: $300-$500 (FL) - $1,000 (NY) Registration of LLC + any business license, city or other registrations $250 Yearly Fee + Yearly Registered Agent + any business licenses, city or other fee $500 Tax Return + Bookkeeping Fee Banks will charge more than a personal account so expect $120 a year plus. In regards to service I would look at companies that specialize in foreigners setting up businesses in the US, because they will have services designed to help you more than services that primarily specialize with US clients. You are going to have some different needs, based on not having a Social Security Number or establishing from overseas.",
"title": ""
},
{
"docid": "420bdfb40a54706409ebf250ca7da92c",
"text": "\"Generally, you pick the State which you're located at, because you'll have to register your LLC there in any case. In your case that would be either Colorado or Oklahoma - register as domestic in one, as foreign in the other. If your concern is anything other than mere convenience/costs - then you need to talk to a lawyer, however most State LLC laws are fairly alike (and modeled after the \"\"Uniform Limited Liability Company Act\"\". Keep in mind that most of the sites talking about \"\"forming LLC out of state\"\" are either sales sites or targeted to foreigners attempting to form a US company. All the cr@p you hear about forming in Delaware/Nevada/Wyoming - is useless and worthless for someone who's a resident of any of the US States. If you're a US resident - you will always have to register in the State you're located at and do the work at, so if you register elsewhere - you just need to register again in your home State. In your case you already span across States, so you'll have to register in two States as it is - why add the costs of registering in a third one?\"",
"title": ""
},
{
"docid": "7d32f67dee90c90b21760138c97c9086",
"text": "\"especially considering it has a mortgage on it (technically a home equity loan on my primary residence). I'm not following. Does it have a mortgage on it, or your primary residence (a different property) was used as a security for the loan? If it is HELOC from a different property - then it is really your business what to do with it. You can spend it all on casinos in Vegas for all that the bank cares. Is this a complicated transaction? Any gotchas I should be aware of before embarking on it? Obviously you should talk to an attorney and a tax adviser. But here's my two cents: Don't fall for the \"\"incorporate in Nevada/Delaware/Wyoming/Some other lie\"\" trap. You must register in the State where you live, and in the State where the property is. Incorporating in any other State will just add complexity and costs, and will not save you anything whatsoever. 2.1 State Taxes - some States tax LLCs. For example, in California you'll pay at least $800 a year just for the right of doing business. If you live in California or the property is in California - you will pay this if you decide to set up an LLC. 2.2 Income taxes - make sure to not elect to tax your LLC as a corporation. The default for LLC is \"\"disregarded\"\" status and it will be taxed for income tax purposes as your person. I.e.: IRS doesn't care and doesn't know about it (and most States, as well). If you actively select to tax it as a corporation (there's such an option) - it will cost you very dearly. So don't, and if someone suggest such a thing to you - run away from that person as fast as you can. Mortgages - it is very hard to get a mortgage when the property is under the LLC. If you already have a mortgage on that property (the property is the one securing the loan) - it may get called once you transfer it into LLC, since from bank's perspective that would be transferring ownership. Local taxes - transferring into LLC may trigger a new tax assessment. If you just bought the property - that will probably not matter much. If it appreciated - you may get hit with higher property taxes. There are also many little things - once you're a LLC and not individual you'll have to open a business bank account, will probably need a new insurance policy, etc etc. These don't add much to costs and are more of an occasional nuisance.\"",
"title": ""
},
{
"docid": "90605b0a6f67febcdf781d210077a575",
"text": "I'm not sure I am fully understanding the nuance of your question, but based on your answer in the comments you and your business are not separate legal entities. So your income is the full $70K, there is no distinct business to have income. If you clarify your question to include why you want to know this I might be able to give a more meaningful answer for your situation.",
"title": ""
},
{
"docid": "d497f8cfbdbc39b4db633f05186d6ca9",
"text": "It is ordinary income to you. You should probably talk to a California licensed CRTP/EA/CPA, but I doubt they'll say anything different. You would probably ask them whether you can treat some of it as a refund of rent paid, but I personally wouldn't feel comfortable with that.",
"title": ""
}
] |
fiqa
|
b23628bb875688ead8b5725e7f848f52
|
What should one look for when opening a business bank account?
|
[
{
"docid": "f70a67d924690e27c7d881ed024bb809",
"text": "From my experience, I opened a business account to handle my LLC which owns a rental property. The account process and features were similar to shopping for a personal checking account. There would be fees for falling below a minimum balance, and for wanting a paper statement. In my case, keeping $2000 avoids the fee, and I pull the statements online and save the PDFs. Once open for a certain amount of time, you might be able to get credit extended based on the money that flows through that account. The online access is similar to my personal checking, as is the sending of payments electronically.",
"title": ""
},
{
"docid": "2227a351ed40c57f447a08a9c43166a7",
"text": "Yes, it's a good idea to have a separate business account for your business because it makes accounting and bookkeeping that much easier. You can open a business checking account and there will be various options for types of accounts and fees. You may or may not want an overdraft account, for example, or a separate business credit card just so you can more easily separate those expenses from your personal cards. When I started my business, I opened a business checking account and met with my banker every year just to show them how the business was doing and to keep the relationship going. Eventually, when I wanted to establish a business line of credit, it was easier to set up because I they were already familiar with my business, its revenue, and needs for a line of credit. You can set up a solo 401k with your bank, too, and they'll be very happy to do so, but I recommend shopping around for options. I've found that the dedicated investment firms (Schwab, Fidelity, etc.) tend to have better options, fees, and features for investment accounts. Just because a specific bank handles your checking account doesn't mean you need to use that bank for everything. Lastly, I use completely different banks for my personal life and for my business. Maybe I'm paranoid, but I just don't want all my finances in the same place for both privacy reasons and to avoid having all my eggs in the same basket. Just something to consider -- I don't really have a completely sane reason for using completely different banks, but it helps me sleep.",
"title": ""
}
] |
[
{
"docid": "dcf7b6129f6a8a9145f65dc426f9870e",
"text": "PocketSmith is another tool you might like to consider. No personal banking details are required, but you can upload your transactions in a variety of formats. Pocketsmith is interesting because it really focus on your future cash flow, and the main feature of the interface is around having a calendar(s) where you easily enter one off or repetitive expenses/income. http://www.pocketsmith.com/",
"title": ""
},
{
"docid": "17ca7c806e458a344150bca1b1c60fa6",
"text": "\"There's a lot of personal preference and personal circumstance that goes into these decisions. I think that for a person starting out, what's below is a good system. People with greater needs probably aren't reading this question looking for an answer. How many bank accounts should I have and what kinds, and how much (percentage-wise) of my income should I put into each one? You should probably have one checking account and one savings / money market account. If you're total savings are too low to avoid fees on two accounts, then just the checking account at the beginning. Keep the checking account balance high enough to cover your actual debits plus a little buffer. Put the rest in savings. Multiple bank accounts beyond the basics or using multiple banks can be appropriate for some people in some circumstances. Those people, for the most part, will have a specific reason for needing them and maybe enough experience at that point to know how many and where to get them. (Else they ask specific questions in the context of their situation.) I did see a comment about partners - If you're married / in long-term relationship, you might replicate the above for each side of the marriage / partnership. That's a personal decision between you and your partner that's more about your philosophy in the relationship then about finance specifically. Then from there, how do I portion them out into budgets and savings? I personally don't believe that there is any generic answer for this question. Others may post answers with their own rules of thumb. You need to budget based on a realistic assessment of your own income and necessary costs. Then if you have money some savings. Include a minimal level of entertainment in \"\"necessary costs\"\" because most people cannot work constantly. Beyond that minimal level, additional entertainment comes after necessary costs and basic savings. Savings should be tied to your long term goals in addition to you current constraints. Should I use credit cards for spending to reap benefits? No. Use credit cards for the convenience of them, if you want, but pay the full balance each month and don't overdo it. If you lack discipline on your spending, then you might consider avoiding credit cards completely.\"",
"title": ""
},
{
"docid": "2eb74f0ef6f1a3b3531f7f79a1a0b978",
"text": "See this website. In my opinion you should physically exist there to open your account.The bank needs to fulfill all requirements such as checking your identity, taking your signatures for future transactions etc. However, there might be some exceptions as Banking industry works pretty much on personal relations and money power. Also check these links: http://answers.google.com/answers/threadview?id=722141 http://askville.amazon.com/open-bank-account-abroad/AnswerViewer.do?requestId=7004217 and http://www.talkgold.com/forum/r18761-.html",
"title": ""
},
{
"docid": "17d0dd730c0065910517603869862e3b",
"text": "\"Although not required, #2 would work best if you used magnetic ink... That is an extra cost which you may or may not want to pay for. You can often get a free checking account and a free set of checks if you can meet the minimum requirements. This often means a higher average daily balance, direct deposit, or some combination of multiple requirements. The bank is taking a risk that a client meeting those minimum requirements while likely earn the bank more in fees and services than what they give out for \"\"free\"\" such as the account and checks. My wife and I opened a Wells Fargo checking account two years ago. Back then, we were able to open the account for free along with a free set of 250 checks. I think the requirement now requires $7,500 average daily balance.\"",
"title": ""
},
{
"docid": "ed19a528140148b687404d864b48cb36",
"text": "\"I have checked with Bank of America, and they say the ONLY way to cash (or deposit, or otherwise get access to the funds represented by a check made out to my business) is to open a business account. They tell me this is a Federal regulation, and every bank will say the same thing. To do this, I need a state-issued \"\"dba\"\" certificate (from the county clerk's office) as well as an Employer ID Number (EIN) issued by the IRS. AND their CHEAPEST business banking account costs $15 / month. I think I can go to the bank that the check is drawn upon, and they will cash it, assuming I have documentation showing that I am the sole proprietor. But I'm not sure.... What a racket!!\"",
"title": ""
},
{
"docid": "c58daa07acae659b5335af1ae1dfa254",
"text": "Keep in mind a good lawyer will have the contract cover the five D's: Its really best to lay these things out ahead of time. I watched, first hand, two friends start a business. When they were broke and struggling the worked very well together. Then the money started rolling in. Despite exceeding their dreams they were constantly at each other's throats fighting and bickering over stupid stuff. In the end, because they had decent legal docs, they both were able to pull money out of the business. Had that not been worked out they would have destroyed the business so that no one would have profited.",
"title": ""
},
{
"docid": "426732136eca3b2ab7cf31da061c990a",
"text": "I'm the contrarian in the crowd. I think credit scores and debt are the closest thing to evil incarnate. You're in good company. The absence of a credit score simply means the agencies have insufficient data in their behavioral model to determine how profitable your business would be to the bank. The higher your score, the more likely the bank is to make a profit from your loan. IMHO, you're better off building up cash and investment reserves than a credit history. With sufficient reserves, you will be able to shop around for a bank that will give you a good rate, if you ever do need a loan. You'll be surprised at how quickly you get in a position where you don't need a loan if you save and invest wisely. I used to have a (high) credit score, and I was miserable about it because there were always bills due. I gave up debt 14 years ago, paid the last debt 7 years ago, and have never. been happier. Raising kids without debt (or credit score) is much more fun than with debt.",
"title": ""
},
{
"docid": "d6a720487b2ba826b237a83dc0981618",
"text": "I would suggest at least getting a personal card that you only use for business expenses, even if you don't opt for a business card. It makes it very clear that expenses on that card are business expenses, and is just more professional. The same goes for a checking account, if you have one of those. It makes it easier to defend if you are ever audited, and if you use an accountant or tax preparer.",
"title": ""
},
{
"docid": "b81f264b75ed4b2f443dd090e38ece66",
"text": "Every listed company needs to maintain book of accounts, when you are investing in companies you would have to look at what is stated in the books and along with other info decide to invest in it.",
"title": ""
},
{
"docid": "8d993890289505b5f6a9d42cd48978ea",
"text": "\"In Canada, for example, they are expected or required to find out. They call it, The “Know Your Client” rule, part of which is knowing your \"\"Investment knowledge and experience\"\". They say it is, \"\"to ensure their advice is suitable for you\"\". I have always been given that kind of form to fill in, when opening an account.\"",
"title": ""
},
{
"docid": "1709c5e813a70930b917308ebffc9a16",
"text": "If it's a small one person business he will have to sign a personal guarantee no matter what he does with respect to incorporating. Not saying your idea isn't worth looking into but no bank will lend him money without a personal guarantee.",
"title": ""
},
{
"docid": "8ee2f604bae71690b9dd02f5ebd3c2a0",
"text": "\"Having a separate checking account for the business makes sense. It simplifies documenting your income/expenses. You can \"\"explain\"\" every dollar entering and exiting the account without having to remember that some of them were for non-business items. My credit union allowed me to have a 2nd checking account and allowed me to put whatever I wanted as the name on the check. I think this looked a little better than having my name on the check. I don't see the need for a separate checking account for investing. The money can be kept in a separate savings account that has no fees, and can even earn a little interest. Unless you are doing a lot of investment transactions a month this has worked for me. I fund IRAs and 529 plans this way. We get paychecks 4-5 times a month, but send money to each of the funds once a month. You will need a business account if the number of transactions becomes large. If you deposit dozens of checks every time you go to the bank, the bank will want to move you to a business account.\"",
"title": ""
},
{
"docid": "91b639f038d29486bfe83e57212810c9",
"text": "In the UK is perfectly acceptable to use your personal bank account as a business account if your a sole trader, although it can be messy. Just record and keep all relevant transaction invoices etc documents for self assessment time. At self assessment time they will tell you the amount of tax you need to pay when you fill out the forms. Not sure how it is Canada. If you get bigger get an accountant.",
"title": ""
},
{
"docid": "6d9dfd9882440e9eca8007f26cbf5b59",
"text": "a great piece dedicated to all secured business loan applicants out there. it offers information on what entrepreneurs should look for in start up financing deals to ensure that the lines of credit they will take out will surely suit the needs and budget of their respective shops and stores.",
"title": ""
},
{
"docid": "c06dd8658a400808f0995c1905f5a6bd",
"text": "This depends on the practise and applications available with the Beneficiary Bank. For a corporate customer, the details are show. For Retail customers they are generally not shown.",
"title": ""
}
] |
fiqa
|
eb13e3120e0f0058ddf039c15810b57d
|
Which r in perpetuity formula to pricing a business?
|
[
{
"docid": "dc38b60a0e383d11c098c69517619c7f",
"text": "In the equity markets, the P/E is usually somewhere around 15. The P/E can be viewed as the inverse of the rate of a perpetuity. Since the average is 15, and the E/P of that would be 6.7%, r should be 6.7% on average. If your business is growing, the growth rate can be incorporated like so: As you can see, a high g would make the price negative, in essence the seller should actually pay someone to take the business, but in reality, r is determined from the p and an estimated g. For a business of any growth rate, it's best to compare the multiple to the market, so for the average business in the market with your business's growth rate and industry, that P/E would be best applied to your company's income.",
"title": ""
}
] |
[
{
"docid": "f5a95d65477663dfcf01e2ed5e2fbee3",
"text": "There is no formula for calculating a stock price based on the financials of a company. A stock price is set by the market and always has a component built into it that is based on something outside of the current valuation of a company using its financials. Essentially, the stock price of a company per share is whatever the best price it can get on the open market. If you are looking at how to evaluate if a stock is a good value at the current price, then look at some of the answers, but I wanted to answer this based on the way you phrased the question.",
"title": ""
},
{
"docid": "ce932128386e9ac1e3bdbe0c347a0ad7",
"text": "If annualized rate of return is what you are looking for, using a tool would make it a lot easier. In the post I've also explained how to use the spreadsheet. Hope this helps.",
"title": ""
},
{
"docid": "2b143acbcb0db499f15b967cf333ea82",
"text": "The book value is Total Assets minus Total Liabilities and so if you increase the Total Assets without changing the Total Liabilities the difference gets bigger and thus higher. Consider if a company had total assets of $4 and total liabilities of $3 so the book value is $1. Now, if the company adds $2 to the assets, then the difference would be 4+2-3=6-3=3 and last time I checked 3 is greater than 1. On definitions, here are a couple of links to clarify that side of things. From Investopedia: Equity = Assets - Liabilities From Ready Ratios: Shareholders Equity = Total Assets – Total Liabilities OR Shareholders Equity = Share Capital + Retained Earnings – Treasury Shares Depending on what the reinvestment bought, there could be several possible outcomes. If the company bought assets that appreciated in value then that would increase the equity. If the company used that money to increase sales by expanding the marketing department then the future calculations could be a bit trickier and depend on what assumptions one wants to make really. If you need an example of the latter, imagine playing a game where I get to make up the rules and change them at will. Do you think you'd win at some point? It would depend on how I want the game to go and thus isn't something that you could definitively say one way or the other.",
"title": ""
},
{
"docid": "36546d11d900062f0daed28ba6f6186a",
"text": "I was merely trying to be helpful - Conceptually, you have dump this idea that something is skewed. It isn't. Firm A sold for $500 (equity value aka purchase price to shareholders) + debt (zero) - cash (50) for 450. Enterprise value is the cash free, debt free sale price. The implied ev multiple is 4.5x on A - that is the answer. The other business sold for a higher multiple of 5x. If you would pile on more cash onto A, the purchase price would increase, but the EV wouldn't. The idea is to think hard about the difference between equity value and enterprise value when examining a transaction.",
"title": ""
},
{
"docid": "79b730bea961def6987f5d292bed6251",
"text": "Let P denote the amount of the investment, R the rate of return and I the rate of inflation. For simplicity, assume that the payment p is made annually right after the return has been earned. Thus, at the end if the year, the investment P has increased to P*(1+R) and p is returned as the annuity payment. If I = 0, the entire return can be paid out as the payment, and thus p = P*R. That is, at the end of the year, when the dust settles after the return P*R has been collected and paid out as the annuity payment, P is again available at the beginning of the next year to earn return at rate R. We have P*(1+R) - p = P If I > 0, then at the end of the year, after the dust settles, we cannot afford to have only P available as the investment for next year. Next year's payment must be p*(1+I) and so we need a larger investment since the rate of return is fixed. How much larger? Well, if the investment at the beginning of next year is P*(1+I), it will earn exactly enough additional money to pay out the increased payment for next year, and have enough left over to help towards future increases in payments. (Note that we are assuming that R > I. If R < I, a perpetuity cannot be created.) Thus, suppose that we choose p such that P*(1+R) - p = P*(1+I) Multiplying this equation by (1+I), we have [P(1+I)]*(1+R) - [p*(1+I)] = P*(1+I)^2 In words, at the start of next year, the investment is P*(1+I) and the return less the increased payout of p*(1+I) leaves an investment of P*(1+I)^2 for the following year. Each year, the payment and the amount to be invested for the following year increase by a factor of (1+I). Solving P*(1+R) - p = P*(1+I) for p, we get p = P*(R-I) as the initial perpetuity payment and the payment increases by a factor (1+I) each year. The initial investment is P and it also increases by a factor of (1+I) each year. In later years, the investment is P*(1+I)^n at the start of the year, the payment is p*(1+I)^n and the amount invested for the next year is P*(1+I)^{n+1}. This is the same result as obtained by the OP but written in terms that I can understand, that is, without the financial jargon about discount rates, gradients, PV, FV and the like.",
"title": ""
},
{
"docid": "79761ea709f02e044c94985e3211cab4",
"text": "\"The fallacy in your question is in this statement: \"\"The formulas must exist, because prices can be followed real time.\"\" What you see are snapshots of the current status of the stock, what was the last price a stock was traded at, what is the volume, is the price going up or down. People who buy and hold their stock look at the status every few days or even every few months. Day traders look at the status every second of the trading day. The math/formula comes in when people try to predict where the stock is going based on the squiggles in the line. These squiggles move based on how other people react to the squiggles. The big movements occur when big pieces of news make large movements in the price. Company X announces the release of the key product will be delayed by a year; the founder is stepping down; the government just doubled the order for a new weapon system; the insiders are selling all the shares they can. There are no formulas to determine the correct price, only formulas that try to predict where the price may go.\"",
"title": ""
},
{
"docid": "4de28ba19820b615cbea36347ae3584a",
"text": "For the constant growth problem, I don't see why the answer would be anything other than the stock price grown for 3 years at the cost of equity determined from CAPM. Someone can correct me if the dividend is relevant. So: rs = rf + beta x (market premium) rs = 0.046 + 0.9 x (0.06) = 0.10 price now = $40.00 price after 3 years' growth = $40.00 x (1+0.10)^3 = $53.24 EDIT: https://www.quora.com/Why-are-dividend-yields-factored-into-beta two conflicting answers so you'll just have to figure it out",
"title": ""
},
{
"docid": "37528e2711eafb0e0573772a2bf49083",
"text": "The equation is the same one used for mortgage amortization. You first want to calculate the PV (present value) for a stream of $50K payments over 20 years at a10% rate. Then that value is the FV (future value) that you want to save for, and you are looking to solve the payment stream needed to create that future value. Good luck achieving the 10% return, and in knowing your mortality down to the exact year. Unless this is a homework assignment, which need not reflect real life. Edit - as indicated above, the first step is to get that value in 20 years: The image is the user-friendly entry screen for the PV calculation. It walks you though the need to enter rate as per period, therefore I enter .1/12 as the rate. The payment you desire is $50K/yr, and since it's a payment, it's a negative number. The equation in excel that results is: =PV(0.1/12,240,-50000/12,0) and the sum calculated is $431,769 Next you wish to know the payments to make to arrive at this number: In this case, you start at zero PV with a known FV calculated above, and known rate. This solves for the payment needed to get this number, $568.59 The excel equation is: =PMT(0.1/12,240,0,431769) Most people have access to excel or a public domain spreadsheet application (e.g. Openoffice). If you are often needing to perform such calculations, a business finance calculator is recommended. TI used to make a model BA-35 finance calculator, no longer in production, still on eBay, used. One more update- these equations whether in excel or a calculator are geared toward per period interest, i.e. when you state 10%, they assume a monthly 10/12%. With that said, you required a 20 year deposit period and 20 year withdrawal period. We know you wish to take out $4166.67 per month. The equation to calculate deposit required becomes - 4166.67/(1.00833333)^240= 568.59 HA! Exact same answer, far less work. To be clear, this works only because you required 240 deposits to produce 240 withdrawals in the future.",
"title": ""
},
{
"docid": "f2957071718c3125aae989498d051224",
"text": "I was emailing back and forth with a manager in a different department on how real returns are being calculated, and he said that the industry standard is 1 + real returns*(1+inflation) - fees, and to not use my formula because it can double count inflation, making fees lower. However, real returns are not observable in the future, and I do not why he uses that formula. The returns were used in an Excel spreadsheet. What are your thoughts about this?",
"title": ""
},
{
"docid": "47ae54c33da604d2225616426525aae9",
"text": "EDIT: After reading one of the comments on the original question, I realized that there is a much more intuitive way to think about this. If you look at it as a standard PV calculation and hold each of the cashflows constant. Really what's happening is that because of inflation the discount rate isn't the full value of the interest rate. Really the discount rate is only the portion of the interest rate above the inflation rate. Hence in the standard perpetuity PV equation PV = A / r r becomes the interest rate less the inflation rate which gives you PV = A / (i - g). That seems like a much better way to get to the answer than all the machinations I was originally trying. Original Answer: I think I finally figured this out. The general term for this type of system in which the payments increase over time is a gradient series annuity. In this specific example since the payment is increasing by a percentage each period (not a constant rate) this would be considered a geometric gradient series. According to this link the formula for the present value of a geometric gradient series of payments is: Where P is the present value of this series of cashflows. A_1 is the initial payment for period 1 (i.e. the amount you want to withdraw adjusted for inflation). g is the gradient or growth rate of the periodic payment (in this case this is the inflation rate) i is the interest rate n is the number of payments This is almost exactly what I was looking for in my original question. The only problem is this is for a fixed amount of time (i.e. n periods). In order to figure out the formula for a perpetuity we need to find the limit of the right side of this equation as the number of periods (n) approaches infinity. Luckily in this equation n is already well isolated to a single term: (1 + g)^n/(1 + i)^-n}. And since we know that the interest rate, i, has to be greater than the inflation rate, g, the limit of that factor is 0. So after replacing that term with 0 our equation simplifies to the following: Note: I don't do this stuff for a living and honestly don't have a fantastic finance IQ. It's been a while since I've done any calculus or even this much algebra so I may have made an error in the math.",
"title": ""
},
{
"docid": "be8cc9df94ea427b68eba92216842cbc",
"text": "I find the higher estimates a bit unbelievable. A big part of my job is liability valuation and small assumption changes can have a huge impact on results. They may be right (future) dollar value wise but the proper way to think about this stuff is in present value terms. This could actually be a really interesting study - you all just gave me a great idea for a potential masters thesis :)",
"title": ""
},
{
"docid": "e91d8c0dcb863fc4b14459f62a081534",
"text": "\"Complex matter that doesn't boil down to a formula. The quant aspect could be assessed by calculating WACCs under various funding scenarii and trying to minimize, but it is just one dimension of it. The quali aspects can vary widely depending on the company, ownership structure, tax environment and business needs and it really can't be covered even superficially in a reddit comment... Few examples from the top of my mind to give you a sense of it: - shareholders might be able to issue equity but want to avoid dilution, so debt is preferred in the end despite cost. Or convertible debt under the right scenario. - company has recurring funding needs and thinks that establishing a status on debt market is worth paying a premium to ensure they can \"\"tap\"\" it whenever hey need to. - adding debt is a way to leverage and enhance ROI/IRR for certain types of stakeholders (think LBOs) - etc etc etc Takes time and a lot of experience/work to be able to figure out what's best and there isn't always a clear answer. Source: pro buy side credit investor with experience and sizeable AuMs.\"",
"title": ""
},
{
"docid": "4cf40930621416f1a038cdfc953e9eb6",
"text": "Average rates of return usually assume compounding, so your formula would be for annual compounding ,or for continuous compounding.",
"title": ""
},
{
"docid": "30022115b2b70935cca632e08858c3db",
"text": "dafuq did I just read. I think this would be better explained with an excel chart because I have no idea what you just wrote. Can you please use real numbers in a possible hypothetical case study. I'm absolutely terrible at thinking theoretically.",
"title": ""
},
{
"docid": "d938cfa19603cd76c60ccc1bc2fa74d2",
"text": "I was looking for ideas on what the usual figures are in such positions. Something like market value, or other terms such as changing slab percentages in compensation. Not sure what the best practices are in this situation. Not sure what you are referring to.",
"title": ""
}
] |
fiqa
|
0783b652c5ae77446a320f9a80c1d584
|
US Double Taxation - Business Trips and the Foreign Tax Credit
|
[
{
"docid": "6681aab67e513952ed9e5130e3f33fcc",
"text": "\"If you're a US citizen, money earned while in the US is sourced to the US. So you can't apply FTC/FEIE to the amounts attributable to the periods of your work while in the US even if it is a short business trip. Tax treaties may affect this. Most tax treaties have explicit provisions to exclude short trips from the sourcing rules, however due to the \"\"saving clause\"\" these would probably not apply to you if you're a US citizen - you'll need to read the relevant treaty. Your home country should allow credit for the US taxes paid on the US-sourced income, and the double-taxation avoidance provision should apply in this case. The technicalities depend on your specific country. You would probably not just remove it from the taxable income, there probably is a form similar to the US form 1116 to calculate the available credit.\"",
"title": ""
}
] |
[
{
"docid": "7195053464f2555973061c1a472f0ed3",
"text": "You should probably get a professional tax advice, as it is very specific to the Philipines tax laws and the US-Philippine tax treaty. What I know, however, is that if it was the other way around - you paying a foreigner coming to the US to consult you - you would be withholding 30% of their pay for the IRS which they would be claiming for refund on their own later. So if the US does it to others - I'm not surprised to hear that others do it to the US. Get a professional advice on what and how you should be doing. In any case, foreign taxes paid can be used to offset your US taxes using form 1116 up to some extent.",
"title": ""
},
{
"docid": "f49a2a28589692fc12d4a07f03ab17d7",
"text": "Sure, they can still vacation in the US. However working in the US requires a seperate visa than a vacation visa which requires that they pay taxes on income earned within the US etc. I'm fairly certain using complicated intelectual property tax tricks to avoid paying any taxes in the US might be a violation of that visa. Actually, why can't I owe myself a large amount of money in another country that I'm paying myself back slowly thus zeroing my taxable income?",
"title": ""
},
{
"docid": "8047ca318e5d8637aa90fa19584d5cce",
"text": "With something this complicated you are going to want to consult professionals. Either a professional with international experience, who will tell you the best tax arrangement overall but might come expensive, or one professional in each country who will optimize for that country. You will have to pay US taxes, and depending on your residency probably some in Spain. Double tax agreements should kick in to prevent you paying tax on the same money twice. You do not have to pay separate 'European' taxes. If you do substantial business in another country you might have to pay there, but one of your professionals should sort it out.",
"title": ""
},
{
"docid": "466fdad4bd9f74405c977449c36e5bef",
"text": "No he's arguing for a lower US Corporate tax rate specifically on overseas earnings. Because companies are earning overseas and not taking it back to the US because of our double taxation. He absolutely does not want higher taxes",
"title": ""
},
{
"docid": "4541068da76cb92f024a769b9d81d85d",
"text": "You can have multiple W2 forms on the same tax return. If you are using software, it will have the ability for you to enter additional W2 forms. If you are doing it by paper, just follow the instructions and combine the numbers at the correct place and attach both. Similarly you can also have a 1099 with and without a W2. Just remember that with a 1099 you will have to pay the self employment tax ( FICA taxes, both employee and employer) and that no taxes will be withheld. You will want to either adjust the withholding on your main job or file quartely estimated taxes. Travel reimbursement should be the same tax exempt wise. The difference is that with a 1098, you will need to list your business expenses for deduction on the corresponding tax schedule. The value on the 1099 will include travel reimbursement. But then you can deduct your self employment expenses. I believe schedule C is where this occurs.",
"title": ""
},
{
"docid": "c1f72824ef2b3072f154a0d2fa565ef4",
"text": "Depending on what software you use. It has to be reported as a foreign income and you can claim foreign tax paid as a foreign tax credit.",
"title": ""
},
{
"docid": "d5ac94f732227a06ae11b14d25976e69",
"text": "You're missing the point. The US is double dipping as the jurisdiction where the money was earn and taxed too the first dip. It is direct interference in another country's economy and an attack on their sovereignty. Frankly, it smack of typical American conservatism: taking the view that the rest of the world is just an American colony. It's fundamentally undemocratic.",
"title": ""
},
{
"docid": "173677a1d78c4e8a90b0be22dec7361e",
"text": "\"I had experience working for a company that manufactures stuff and giving products to the employees. The condition was to stay employed for a year after the gift for the company to cover its cost (I think they imputed the tax), otherwise they'd add the cost to the last paycheck (which they did when I left). But they were straight-forward about it and I signed a paper acknowledging it. However, in your case you didn't get a product (that you could return when leaving if you didn't want to pay), but rather a service. The \"\"winning\"\" trip was definitely supposed to be reported as income to you last year. Is it okay for them to treat me differently than the others for tax purposes? Of course not. But it may be that some strings were attached to the winning of the incentive trip (for example, you're required to stay employed for X time for the company to cover the expense). See my example above. Maybe it was buried somewhere in small letters. Can they do this a year after the trip was won and redeemed? As I said - in this case this sounds shady. Since it is a service which you cannot return - you should have been taxed on it when receiving it. Would the IRS want to know about this fuzzy business trip practice? How would I report it? Here's how you can let them know. Besides now understanding the new level of slime from my former employer is there anything else I should be worried about? Could they do something like this every year just to be annoying? No, once they issued the last paycheck - you're done with them. They cannot issue you more paychecks after you're no longer an employee. In most US States, you are supposed to receive the last paycheck on your last day of work, or in very close proximity (matter of weeks at most).\"",
"title": ""
},
{
"docid": "eb125c96f620e4c9f504cb2ff32448c2",
"text": "\"Be mindful of your reporting requirements. Besides checking the box on Schedule B of your 1040 that you have a foreign bank account, you also need to file a TD F 90-22.1 FBAR report for any year that the total of all foreign bank accounts reaches a value of $10,000 at any time during the year. This is filed separately from your 1040 by June 30 of the following year. Penalties for violating this reporting requirement are draconian, in some cases exceeding the amount of money in the foreign bank account. This penalty has been levied on people who have been reporting and paying tax on the interest on their foreign bank accounts, and merely neglected this separate report filing. Article on the \"\"shoot the jaywalker\"\" punitive enforcement policy. http://www.rothcpa.com/archives/006866.php Mariette IRS Circular 230 Notice: Please note that any tax advice contained in this communication is not intended to be used, and cannot be used, by anyone to avoid penalties that may be imposed under federal tax law. EDITED TO ADD\"",
"title": ""
},
{
"docid": "6f299c03202c1956ad89ba6b7c3a29e2",
"text": "You can always take deduction for foreign tax paid on Schedule A, or calculate foreign tax credit using form 1116. Credit is usually more beneficial, but in some cases you will be better of with a deduction. However, in very specific cases, you can claim the credit directly on your 1040 without using the form 1116. Look at the 1040 instructions for line 47: Exception. You do not have to complete Form 1116 to take this credit if all of the following apply. All of your foreign source gross income was from interest and dividends and all of that income and the foreign tax paid on it were reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-1 (or substitute statement). The total of your foreign taxes was not more than $300 (not more than $600 if married filing jointly). You held the stock or bonds on which the dividends or interest were paid for at least 16 days and were not obligated to pay these amounts to someone else. You are not filing Form 4563 or excluding income from sources within Puerto Rico. All of your foreign taxes were: Legally owed and not eligible for a refund or reduced tax rate under a tax treaty, and Paid to countries that are recognized by the United States and do not support terrorism. For more details on these requirements, see the Instructions for Form 1116.",
"title": ""
},
{
"docid": "51b98857496db91ad880cc721db0c57c",
"text": "\"That's a very clear explanation, thanks! So a few additional things if anyone will humor my curiosity... 1. By \"\"one-time\"\" tax, does that mean a company that has, say, $5B overseas could bring that back into the US and just be taxed $500M, then keep the remaining $4.5B? 2. Could a company choose a percentage of their overseas money to transfer into the US? Like, only bring in 8% of that $5B ($400M) and be taxed $40M, while keeping all the rest outside the US? Or would it be mandatory to bring it all over? 3. Would most companies just start that same practice of routing to tax havens again after this tax is implented?\"",
"title": ""
},
{
"docid": "691b6d6029c2f362848881780986f078",
"text": "I think you can. I went to Mexico for business and the company paid for it, so if you are self employed you should be able to expense it.",
"title": ""
},
{
"docid": "e20a9c8c36738492aa0363c1113b6ca9",
"text": "\"I'm working on similar problem space. There seems to be some working ambiguity in this space - most focus seems to be on more complex cases of income like Dividends and Capital Gains. The US seems to take a position of \"\"where the work was performed\"\" not \"\"where the work was paid\"\" for purposes of the FEIE. See this link. The Foreign Tax Credit(FTC) is applied (regardless of FEIE) based on taxes paid in the other Country. In the event you take the FEIE, you need to exclude that from the income possible to claim on the FTC. i.e. (TOTAL WAGES(X) - Excluded Income) There is a weird caveat on TOTAL WAGES(X) that says you can only apply the FTC to foreign-sourced income which means that potentially we are liable for the on-US-soil income at crazy rates. See this link.. Upon which... there is probably not a good answer short of writing your congressperson.\"",
"title": ""
},
{
"docid": "d55b27429ba53a663bc7257aa958fc75",
"text": "\"I am going to keep things very simple and explain the common-sense reason why the accountant is right: Also, my sister in law owns a small restaurant, where they claim their accountant informed them of the same thing, where a portion of their business purchases had to be counted as taxable personal income. In this case, they said their actual income for the year (through their paychecks) was around 40-50K, but because of this detail, their taxable income came out to be around 180K, causing them to owe a huge amount of tax (30K ish). Consider them and a similarly situated couple that didn't make these purchases. Your sister in law is better off in that she has the benefit of these purchases (increasing the value of her business and her expected future income), but she's worse off because she got less pay. Presumably, she thought this was a fair trade, otherwise she wouldn't have made those purchases. So why should she pay any less in taxes? There's no reason making fair trades should reduce anyone's tax burden. Now, as the items she purchased lose value, that will be a business loss called \"\"depreciation\"\". That will be deductible. But the purchases themselves are not, and the income that generated the money to make those purchases is taxable. Generally speaking, business gains are taxable, regardless of what you do with the money (whether you pay yourself, invest it, leave it in the business, or whatever). Generally speaking, only business losses or expenses are deductible. A purchase is an even exchange of income for valuable property -- even exchanges are not deductions because the gain of the thing purchased already fairly compensates you for the cost. You don't specify the exact tax status of the business, but there are really only two types of possibilities. It can be separately taxed as a corporation or it can be treated essentially as if it didn't exist. In the former case, corporate income tax would be due on the revenue that was used to pay for the purchases. There would be no personal income tax due. But it's very unlikely this situation applies as it means all profits taken out of the business are taxed twice and so small businesses are rarely organized this way. In the latter case, which is almost certainly the one that applies, business income is treated as self-employment income. In this case, the income that paid for the purchases is taxable, self-employment income. Since a purchase is not a deductible expense, there is no deduction to offset this income. So, again, the key points are: How much she paid herself doesn't matter. Business income is taxable regardless of what you do with it. When a business pays an expense, it has a loss that is deductible against profits. But when a business makes a purchase, it has neither a gain nor a loss. If a restaurant buys a new stove, it trades some money for a stove, presumably a fair trade. It has had no profit and no loss, so this transaction has no immediate effect on the taxes. (There are some exceptions, but presumably the accountant determined that those don't apply.) When the property of a business loses value, that is usually a deductible loss. So over time, a newly-purchased stove will lose value. That is a loss that is deductible. The important thing to understand is that as far as the IRS is concerned, whether you pay yourself the money or not doesn't matter, business income is taxable and only business losses or expenses are deductible. Investments or purchases of capital assets are neither losses nor expenses. There are ways you can opt to have the business taxed separately so only what you pay yourself shows up on your personal taxes. But unless the business is losing money or needs to hold large profits against future expenses, this is generally a worse deal because money you take out of the business is taxed twice -- once as business income and again as personal income. Update: Does the business eventually, over the course of the depreciation schedule, end up getting all of the original $2,000 tax burden back? Possibly. Ultimately, the entire cost of the item is deductible. That won't necessarily translate into getting the taxes back. But that's really not the right way to think about it. The tax burden was on the income earned. Upon immediate replacement, hypothetically with the exact same model, same cost, same 'value', isn't it correct that the \"\"value\"\" of the business only went up by the amount the original item had depreciated? Yes. If you dispose of or sell a capital asset, you will have a gain or loss based on the difference between your remaining basis in the asset and whatever you got for the asset. Wouldn't the tax burden then only be $400? Approximately, yes. The disposal of the original asset would cause a loss of the difference between your remaining basis in the asset and what you got for it (which might be zero). The new asset would then begin depreciating. You are making things a bit more difficult to understand though by focusing on the amount of taxes due rather than the amount of taxable gain or loss you have. They don't always correlate directly (because tax rates can vary).\"",
"title": ""
},
{
"docid": "c2c0ee6cdbc67b58bdec4983dbec7a49",
"text": "\"It depends on what the \"\"true\"\" reason for the trip is. If you decide to deduct the trip as a business expense, then during an audit you will be asked why you had to go there. If there was nothing accomplished via the travel (that is, you worked from the hotel, met with no clients, visited no tradeshows, etc) then the expense is unlikely to be allowed. Yes, on a business trip you can do sightseeing if you wish (though you can't deduct any sightseeing specific expenses, like admission to a tourist attraction), but if you are just working while on vacation, then the trip itself is not deductible, since there was no business benefit to traveling in the first place.\"",
"title": ""
}
] |
fiqa
|
d33942c6f06412c6e17b83e2e666c640
|
Can I use my Roth IRA to start a business?
|
[
{
"docid": "09831bc94519dff461f2559278ffa955",
"text": "Read the Forbes article titled IRA Adventures. While it's not the detailed regulations you certainly need, the article gives some great detail and caution. You may be able to do what you wish, but it must be structured to adhere to specific rules to avoid self dealing. Those rules would be known by the custodians who would help you set up the right structure, it's well buried within IRS regs, I'm sure. Last, in general, using IRA funds to invest in the non-traditional assets adds that other layer of risk, that the investment will be deemed non-allowed and/or self-dealing. So, even if you have the best business idea going, be sure you get proper council on this.",
"title": ""
}
] |
[
{
"docid": "24b0b013a3385858eda59f1359a4f523",
"text": "You can't do what you would like to do, unless your business has another, unrelated investor or is willing to invest an equal amount of funds + .01 into a corporation which will employ you. You will then need to set up a self-directed IRA. Additionally, you will need a trustee to account for all the disbursements from your IRA.",
"title": ""
},
{
"docid": "b3da46ba29da550afad79b5dc35a53a4",
"text": "\"1) Indeed, if referring to a Roth as the question is, you are right on. But - You can deposit to an Traditional IRA (TIRA). You just can't deduct it. You are then permitted to convert that to a Roth any time. Now, this would appear to negate income issues, right? Not so fast. When you convert, all TIRA accounts must be considered. In other words, when it comes to the TIRA, you only have One TIRA, the \"\"A\"\" actually standing for Arrangement, not account. That TIRA may then be spread over as many accounts as you have time to set up. So, if there is any pretax money and/or untaxed gain, it will be prorated and taxed based on your conversion amount. If any of this is not 110% clear, please comment and I will update the answer. No 401(k) at work? Note: I edited as my original wording misunderstood the response, and in turn, appeared a bit unkind. Not my intention.\"",
"title": ""
},
{
"docid": "955e605d7d9e30b65de3ac4aae14081b",
"text": "you can begin drawing retirement income from 401k, ira and roth accounts at any age. the key is that it must be retirement income. you can't blow it all on an epic party, but you can withdraw a modest amount every year while preserving enough capital to last the rest of your life. there are 3 common strategies for doing this: side notes: techinical details: roth conversion ladder: substantially equal periodic payment plans:",
"title": ""
},
{
"docid": "31c5ac8c41c0019f73a79c19208dd61e",
"text": "Have you considered a self-directed IRA to invest, rather than the stock market or publicly traded assets? Your IRA can actually own direct title to real estate, loan money via secured or unsecured promissory notes much like a hard money loan or invest into shares of an entity that invests in real estate. The only nuance is that the IRA holder is responsible for finding and deciding upon the investment vehicle. Just an option outside of the normal parameters, if you have an existing IRA or old 401(k) or other qualified plan, this might be an option for you.",
"title": ""
},
{
"docid": "66cf187d12586eeea3f8f22c2d71bc0e",
"text": "According to the IRS, you can still put money in your IRA. Here (https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits) they say: Can I contribute to an IRA if I participate in a retirement plan at work? You can contribute to a traditional or Roth IRA whether or not you participate in another retirement plan through your employer or business. However, you might not be able to deduct all of your traditional IRA contributions if you or your spouse participates in another retirement plan at work. Roth IRA contributions might be limited if your income exceeds a certain level. In addition, in this link (https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits), the IRS says: Retirement plan at work: Your deduction may be limited if you (or your spouse, if you are married) are covered by a retirement plan at work and your income exceeds certain levels. The word 'covered' should clarify that - you are not covered anymore in that year, you just got a contribution in that year which was triggered by work done in a previous year. You cannot legally be covered in a plan at an employer where you did not work in that year.",
"title": ""
},
{
"docid": "566d3e3101dad35e6f2095d68a51fbaa",
"text": "Not exactly. There are a few ways to manage your taxes with investments. 1) For most investments you get taxed on any gain in value in the investment or dividends paid by that investment. Most investments (with some exceptions for mutual funds) you don't take the tax hit until you sell the investment and realize the gain. For bonds, cds, and other cash type investments you have to pay taxes in the year they pay out the interest or dividend. 2) You can put money (up to a certain limit) in a traditional IRA and can subtract that amount from your income for tax calculation for the year you invest it. However, you are going to pay taxes on it when you take the money out at retirement. It really just delays the taxes. 3) If you put the money in a Roth IRA, you don't get a tax break now, but you don't have to pay any taxes on the money or the gains when you take it out at retirement. 4) The gains from some mutual funds can be tax exempt, but that just saves you from paying tax on the increase in value. 5) Don't fall for scams that try to use insurance policies as investments to avoid taxes. The fees are ginormous, which usually makes them a ripoff.",
"title": ""
},
{
"docid": "9446134c4389c8289474a7910980a74b",
"text": "Then at the end, if you decide to cash in your house, you can roll the proceeds into a fancier house to avoid paying taxes on your profit. The problem is that the book was written in 1989. That comment is no longer true; that part of the tax law changed in the 1990's. Also in 1989 the maximum amount that person could put in an IRA was $2,000 and hadn't been raised for almost a decade and wouldn't be raised for another decade. Roth accounts didn't exist; nor did HSA's or 529's. Most people didn't have a 401K. You are asking to compare what options we have today compared to what was available in the late 1980's. For me except, for the years 2001-2005 and 2010-2015, the period from 1988 until now has had flat real estate values. Still the current values haven't returned to the peak in 2005. The score is 11 great years, 17 flat or negative. I know many people who during the 1990's had a zero return on their real estate.",
"title": ""
},
{
"docid": "8961afa6a6500b768f5abbbbb4d0e6ea",
"text": "This is a great idea and I can't think of any downside. The best part about it is in the future when you have built up your emergency fund beyond the maximum contributions to the Roth IRA, you can then move your Roth funds into a higher yielding investment. I might take it a step further. In addition to this, try to get a line of credit from your bank (with no annual fee). In case of emergency, you can decide if you want to take the money from your Roth or borrow from the line and pay some interest temporarily. Depending on the situation it may actually make sense to pay a little bit of interest and leave the money in the Roth, since over the long run the future earnings of that money could easily make you more than the interest you'll pay for (let's hope) a short amount of time. To really hit home why your idea is fantastic:",
"title": ""
},
{
"docid": "14d46b44a67ce3e321774973b2a70e32",
"text": "\"People often have the wrong idea about how taxes apply to their money. There's not really any such thing as \"\"pre-tax\"\" or \"\"post-tax\"\" income, only pre-tax and post-tax **uses** of your income. This is somewhat hidden by the fact that we pay income tax based on our income for the year; but if you look a bit closer, you'll notice that come April 15th, (almost) every dollar you get to *subtract* from your gross income isn't defined by where it comes from, but rather, where it *went* (there are a few special cases there, like qualified dividends, that that's an entirely different issue). Perhaps the most clear example of this is a traditional IRA that you self-fund from your savings account on April 14th, for the prior tax year - You're putting dollars you've already taken home, into a pre-tax account, *after* the end of the calendar tax-year; and yet it all works out exactly the same (tax-liability wise - There's certainly an opportunity cost there) as if you had contributed those dollars via a weekly payroll deduction. So when you manually fund a Roth IRA, it has *no* effect on your tax liability (except insofar as you *don't* get to deduct it from your taxable income, which you wouldn't if you had left it in a savings account, etiher). In the year you earned that money, you paid taxes on it; when you take it out, you won't.\"",
"title": ""
},
{
"docid": "985b9e21c615e3610c4f8c94212c7da3",
"text": "You can withdraw the contributions you made to Roth IRA tax free. Any withdrawals from Roth IRA count first towards the contributions, then conversions, and only then towards the gains which are taxable. You can also withdraw up to $10000 of the taxable portion penalty free (from either the Traditional IRA or the Roth IRA, or the combination of both) if it is applied towards the purchase of your first primary residence (i.e.: you don't own a place yet, and you're buying your first home, which will become your primary residence). That said, however, I cannot see how you can buy a $250K house. You didn't say anything about your income, but just the cash needed for the down-payment will essentially leave you naked and broke. Consider what happens if you have an emergency, out of a job for a couple of months, or something else of that kind. It is generally advised to have enough cash liquid savings to keep you afloat for at least half a year (including mortgage payments, necessities and whatever expenses you need to spend to get back on track - job searching, medical, moving, etc). It doesn't look like you're anywhere near that. Remember, many bankruptcies are happening because of the cash-flow problem, not the actual ability to repay debts on the long run.",
"title": ""
},
{
"docid": "0cca154109be54cb2d06df0d909c749c",
"text": "The only caveat I'd give is that I'd be sure of eligibility to make those contributions. The IRS article Amount of Roth IRA Contributions That You Can Make for 2012 has a chart for AGI limits for specific years.",
"title": ""
},
{
"docid": "d2cda0bf4fbd3580c0bac2416a6cea33",
"text": "I would not suggest closing out your Roth IRA -- Couple of reasons for that - 1) Since you've been contributing to it for 15 years, your investments have probably grown, seen dividends, etc. If you close it out, you will owe taxes and be slapped with a 10% penalty on the growth (money you didn't contribute). That's quite a waste of hard earned money. 2) While your income may exceed the contribution limit of a Roth, you could do what's called a 'backdoor' Roth - which is really just converting your after tax contributions into an IRA into a Roth IRA. 3) Given the length of your contributions your Roth IRA is seasoned (5 years) This allows you to use up to 10k for your house if you chose. (Usually not an option people use) Other than that, consider paying off the student loans with the highest interest first.",
"title": ""
},
{
"docid": "bc0a612d4954ffa4610f1e64fa9e68b5",
"text": "\"A Roth IRA is simply a tax-sheltered account that you deposit funds into, and then invest however you choose (within the limits of the firm you deposit the funds with). For example, you could open a Roth IRA account with Vanguard. You could then invest the $3000 by purchasing shares of VOO, which tracks the S&P 500 index and has a very low expense ratio (0.04 as of last time I checked). Fidelity has a similar option, or Schwab, or whatever brokerage firm you prefer. IRAs are basically just normal investment accounts, except they don't owe taxes until you withdraw them (and Roth don't even owe them then, though you paid taxes on the funds you deposit). They have some limitations regarding options trading and such, but if you're a novice investor just looking to do basic investments, you'll not notice. Then, your IRA would go up or down in value as the market went up or down in value. You do have some restrictions on when you can withdraw the funds; Roth IRA has fewer than a normal IRA, as you can withdraw the capital (the amount you deposited) without penalty, but the profits cannot be withdrawn until you're retirement age (I won't put an actual year, as I suspect that actual year will change by the time you're that old; but think 60s). The reason not to invest in an IRA is if you plan on using the money in the near future - even as an \"\"emergency fund\"\". You should have some money that is not invested aggressively, that is in something very safe and very accessible, for your emergency fund; and if you plan to buy a house or whatever with the funds, don't start an IRA. But if this is truly money you want to save for retirement, that's the best place to start. **Note, this is not investment advice, and you should do your own homework prior to making any investment. You can lose some or all of the value of your account while investing.\"",
"title": ""
},
{
"docid": "53b1bf399946e6e878985ef0cf25bedb",
"text": "\"You seem to be treating your Roth IRA as a sort of savings account for use in emergency situations. I would use a savings account for savings as withdrawing money from an IRA will have penalties under various circumstances (more than contributions, Roth IRA less than 5 years old, more than $10k for a down payment). Also, you mention folding your IRA into your 401k so that it will \"\"grow faster\"\". However, this will not have that effect. Imagine you have $30k in an IRA and $100k in a 401k and you are averaging a return of 8% / year on each. This will be identical to having a single 401k with $130k and an 8% / year return. This is not one of your questions, but employer matches are not counted in the 401k contribution limit. If your 22% calculation of your salary includes the match to reach the max contribution, you can still contribute more.\"",
"title": ""
},
{
"docid": "263f0df2357af278570138ee70aab0e7",
"text": "One can have a self-directed IRA. This is not like a Schwab, eTrade, etc IRA. It has a special type of custodian that knows how to manage it. I became aware of such an account as a way to purchase a rental property. There were two issues. The type of property I looked at wasn't anything a bank was willing to finance. And the rules regarding self dealing added a potential layer of expense as I technically could not perform the simplest of things for the property. For you, the obstacle looks like self-dealing. Any IRA can only be funded with cash or transfer/conversion from another IRA/401(k). I don't know how you would get the intelligent property into the IRA in the first place. Once you own a patent, or anything else, you can't sell it into the IRA. It's at times like this that member littleadv would suggest this is the time to talk to a pro before you do anything hazardous to your wealth.",
"title": ""
}
] |
fiqa
|
0bd92a52d3c90ac5ad672838f48b8c27
|
Really have to use business credit card for personal expenses
|
[
{
"docid": "2ecef843666d67bbc24fc04bf1cc0d6d",
"text": "\"I really have to use the business card for personal expenses, please assume that in your answer. This is very hard to believe. You must do that? Why not just have the company pay you $1600 each month? Then you can use that money for whatever you want. Why can't you do this? (I cannot think of a legitimate reason...) How to integrate the personal expenses in company? Anyway, to answer your question, what I've done when I accidentally used my corporate card for a personal expense is to code the expense as a payment to me similar to if a check had been written to me. If you aren't ever paying yourself, then you should just pay the company back the $1600 every month. As a side note, I highly recommend you don't do this. By doing this on a regular basis you are opening the door for piercing the corporate veil. This means that the financial protections provided by the LLC could potentially be stripped away since personal and corporate funds are being mixed. The unfortunate end result is that personal assets could end up being fair game too in a judgement against the company. Even if you aren't an owner, your relative could be considered to be \"\"using business money for personal expenses\"\", namely, letting a relative spend business funds for personal use. How to show more expenses and lessen the profit? If you're referring to the personal expenses, then you absolutely do not want to do this! That's illegal and worthy of stiff penalties, which possibly include jail time for tax evasion. Better to just have the company pay you and then the entire payment is deductible and reduces the profit of the company.\"",
"title": ""
}
] |
[
{
"docid": "90444e54339405ab045d9a427e75f038",
"text": "You can look into getting a business credit card. When I had my Chase business credit card, I could add authorized users to the main account and set a spending limit on each card.",
"title": ""
},
{
"docid": "c93f3024d8d4bde48399c1dabe42032b",
"text": "\"I've done various side work over the years -- computer consulting, writing, and I briefly had a video game company -- so I've gone through most of this. Disclaimer: I have never been audited, which may mean that everything I put on my tax forms looked plausible to the IRS and so is probably at least generally right, but it also means that the IRS has never put their stamp of approval on my tax forms. So that said ... 1: You do not need to form an LLC to be able to claim business expenses. Whether you have any expenses or not, you will have to complete a schedule C. On this form are places for expenses in various categories. Note that the categories are the most common type of expenses, there's an \"\"other\"\" space if you have something different. If you have any property that is used both for the business and also for personal use, you must calculate a business use percentage. For example if you bought a new printer and 60% of the time you use it for the business and 40% of the time you use it for personal stuff, then 60% of the cost is tax deductible. In general the IRS expects you to calculate the percentage based on amount of time used for business versus personal, though you are allowed to use other allocation formulas. Like for a printer I think you'd get away with number of pages printed for each. But if the business use is not 100%, you must keep records to justify the percentage. You can't just say, \"\"Oh, I think business use must have been about 3/4 of the time.\"\" You have to have a log where you write down every time you use it and whether it was business or personal. Also, the IRS is very suspicious of business use of cars and computers, because these are things that are readily used for personal purposes. If you own a copper mine and you buy a mine-boring machine, odds are you aren't going to take that home to dig shafts in your backyard. But a computer can easily be used to play video games or send emails to friends and relatives and lots of things that have nothing to do with a business. So if you're going to claim a computer or a car, be prepared to justify it. You can claim office use of your home if you have one or more rooms or designated parts of a room that are used \"\"regularly and exclusively\"\" for business purposes. That is, if you turn the family room into an office, you can claim home office expenses. But if, like me, you sit on the couch to work but at other times you sit on the couch to watch TV, then the space is not used \"\"exclusively\"\" for business purposes. Also, the IRS is very suspicious of home office deductions. I've never tried to claim it. It's legal, just make sure you have all your ducks in a row if you claim it. Skip 2 for the moment. 3: Yes, you must pay taxes on your business income. If you have not created an LLC or a corporation, then your business income is added to your wage income to calculate your taxes. That is, if you made, say, $50,000 salary working for somebody else and $10,000 on your side business, then your total income is $60,000 and that's what you pay taxes on. The total amount you pay in income taxes will be the same regardless of whether 90% came from salary and 10% from the side business or the other way around. The rates are the same, it's just one total number. If the withholding on your regular paycheck is not enough to cover the total taxes that you will have to pay, then you are required by law to pay estimated taxes quarterly to make up the difference. If you don't, you will be required to pay penalties, so you don't want to skip on this. Basically you are supposed to be withholding from yourself and sending this in to the government. It's POSSIBLE that this won't be an issue. If you're used to getting a big refund, and the refund is more than what the tax on your side business will come to, then you might end up still getting a refund, just a smaller one. But you don't want to guess about this. Get the tax forms and figure out the numbers. I think -- and please don't rely on this, check on it -- that the law says that you don't pay a penalty if the total tax that was withheld from your paycheck plus the amount you paid in estimated payments is more than the tax you owed last year. So like lets say that this year -- just to make up some numbers -- your employer withheld $4,000 from your paychecks. At the end of the year you did your taxes and they came to $3,000, so you got a $1,000 refund. This year your employer again withholds $4,000 and you paid $0 in estimated payments. Your total tax on your salary plus your side business comes to $4,500. You owe $500, but you won't have to pay a penalty, because the $4,000 withheld is more than the $3,000 that you owed last year. But if next year you again don't make estimated payment, so you again have $4,000 withheld plus $0 estimated and then you owe $5,000 in taxes, you will have to pay a penalty, because your withholding was less than what you owed last year. To you had paid $500 in estimated payments, you'd be okay. You'd still owe $500, but you wouldn't owe a penalty, because your total payments were more than the previous year's liability. Clear as mud? Don't forget that you probably will also owe state income tax. If you have a local income tax, you'll owe that too. Scott-McP mentioned self-employment tax. You'll owe that, too. Note that self-employment tax is different from income tax. Self employment tax is just social security tax on self-employed people. You're probably used to seeing the 7-whatever-percent it is these days withheld from your paycheck. That's really only half your social security tax, the other half is not shown on your pay stub because it is not subtracted from your salary. If you're self-employed, you have to pay both halves, or about 15%. You file a form SE with your income taxes to declare it. 4: If you pay your quarterly estimated taxes, well the point of \"\"estimated\"\" taxes is that it's supposed to be close to the amount that you will actually owe next April 15. So if you get it at least close, then you shouldn't owe a lot of money in April. (I usually try to arrange my taxes so that I get a modest refund -- don't loan the government a lot of money, but don't owe anything April 15 either.) Once you take care of any business expenses and taxes, what you do with the rest of the money is up to you, right? Though if you're unsure of how to spend it, let me know and I'll send you the address of my kids' colleges and you can donate it to their tuition fund. I think this would be a very worthy and productive use of your money. :-) Back to #2. I just recently acquired a financial advisor. I can't say what a good process for finding one is. This guy is someone who goes to my church and who hijacked me after Bible study one day to make his sales pitch. But I did talk to him about his fees, and what he told me was this: If I have enough money in an investment account, then he gets a commission from the investment company for bringing the business to them, and that's the total compensation he gets from me. That commission comes out of the management fees they charge, and those management fees are in the same ballpark as the fees I was paying for private investment accounts, so basically he is not costing me anything. He's getting his money from the kickbacks. He said that if I had not had enough accumulated assets, he would have had to charge me an hourly fee. I didn't ask how much that was. Whew, hadn't meant to write such a long answer!\"",
"title": ""
},
{
"docid": "a1987ea8d4b40433141ebab4c68dcad9",
"text": "The term business credit normally refers to one or more credit cards which can be used to make purchases on behalf of a business. A business credit card will usually have both the business name and the card holder's name printed or embossed on the card. In most cases the cardholder will have provided a personal guarantee when applying for the card. A personal guarantee ultimately makes the card holder liable for all charges made on the card.",
"title": ""
},
{
"docid": "652bfcc11a6d2b4f91435b4c8ab97692",
"text": "Try to get a second card in your business' name, with a separate card number (like you would get one for a spouse). They may or may not allow that free (you wouldn't want to pay a second fee), and it might be only possible with the second card bearing the same number, which makes it useless. But it is worth a try.",
"title": ""
},
{
"docid": "664ac815a7ce281e2d8c534be6cb0ecc",
"text": "Credit card fees on a credit card used for personal expenses are not tax deductible. Credit card fees on a business credit card are deductible on schedule C (or whatever form you're using to report business income and expenses). If you are using the same card for both business and personal ... well, for starters, this is a very bad idea, because it creates exactly the question you're asking. If that's what you're doing, stop, and get separate business and personal cards. If you have separate business and personal cards -- and use the business card only for legitimate business expenses -- then the answer is easy: You can claim a schedule C deduction for any service charges on the business card, and you cannot claim any deduction for any charges on the personal card. In general, though, if you have an expense that is partly business and partly personal, you are supposed to figure out what percentage is business, and that is deductible. In an admittedly brief search, I couldn't find anything specifically about credit cards, but I did find this similar idea on the IRS web site: Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part. For example, if you borrow money and use 70% of it for business and the other 30% for a family vacation, you can deduct 70% of the interest as a business expense. The remaining 30% is personal interest and is not deductible. Refer to chapter 4 of Publication 535, Business Expenses, for information on deducting interest and the allocation rules. (https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses) So, PROBABLY, you could add up all the charges you made on the card, figure out how much was for business and how much for personal, calculate the business percentage, and then deduct this percentage of the service fees. If the amount involved is not trivial, you might want to talk to an accountant or a lawyer.",
"title": ""
},
{
"docid": "e31d8c3f836d3ec8d604107df90b5081",
"text": "For the purpose of personal finance, treating $500 as Interest Expense is sufficient. For business accounting, it involves making the $500 a contra-liability and amortizing it as interest expense over the course of life of the loan.",
"title": ""
},
{
"docid": "f61e2fa0b51e154e19ee6efdffc99751",
"text": "\"No you do not need a credit card. They are convenient to have sometimes. But you do not \"\"need\"\" one. I know people who only have one for use when they travel for work and get reimbursed later. But most companies have other ways to pay for your travel if you tell them you do not have a credit card.\"",
"title": ""
},
{
"docid": "101bd8af9cec549d6f124020231f8ebe",
"text": "\"These sort of issues in structuring your personal finances relative to expenses can get complicated quickly, as your example demonstrates. I would recommend a solution that reduces duplication as much as possible- and depending on what information you're interested in tracking you could set it up in very different ways. One solution would be to create virtual sub accounts of your assets, and to record the source of money rather than the destination. Thus, when you do an expense report, you can limit on the \"\"his\"\" or \"\"hers\"\" asset accounts, and see only the expenses which pertain to those accounts (likewise for liabilities/credit cards). If, on the other hand, you're more interested in a running sum of expenses- rather than create \"\"Me\"\" and \"\"Spouse\"\" accounts at every leaf of the expense tree, it would make much more sense to create top level accounts for Expenses:His:etc and Expenses:Hers:etc. Using this model, you could create only the sub expense accounts that apply for each of your spending (with matching account structures for common accounts).\"",
"title": ""
},
{
"docid": "71a0b8631383a8b1177ba145a64901c7",
"text": "Most corporate policies strictly prohibit the card's use for personal use, even if the intent is to re-pay in full, on or before the due date. I'm certain it has something to do with limitation of liability, i.e. the monetary risk the company is willing to put itself at, in order to offer a corporate card program. In my experience, AMEX Corporate Card Services is the most widely-used card, and in my experience, it is your employer that determines and administers the policy that outlines the card's appropriate use, not the credit card provider, so you're best to check with your employer for a definitive answer to this.",
"title": ""
},
{
"docid": "5620c024950487dff9344ee03c171ec5",
"text": "I came across such a situation and I am still facing it. My friend borrowed my credit card for his expenses as he had misplaced his debit card and for the time being had asked for my credit card to handle the expenses he does. He paid for initial 2 months and then was not able to make payments, mainly due to not being able to arrange money or if it was a contri party, he would collect cash from friends but again spend the same. Months passes by... the bill had come upto 65k and calls from bank and other respective organizations Finally my dad came into picture and slowly the issue is resolving he has paid 50K remaining is still pending. So basically, the reason I shared this part of story was he is my Best friend and in order to not spoil our friendship I did not want to take any such step which would later on affect our friendship. This completely depends on the individuals how they react to the situation. Keeping Ego, superiority, favour sort of feelings and words apart things can be resolved between friends. You do not know what is the situation on the other side. Probably you can connect with him ask him to explain you why is not able to pay the debts and take action accordingly. If he is not able to provide a proper reason then you may take some actions like mentioned in initial answers, run after the assets he own or anything else.Stay Calm and patient. Do not take any such step which you would regret later on...!",
"title": ""
},
{
"docid": "e3cd89c0d64142d65db6089237dac981",
"text": "How do I account for this in the bookkeeping? Here is an example below: This is how you would accurately depict contributions made by an owner for a business. If you would want to remove money from your company, or pay yourself back, this would be called withdrawals. It would be the inverse of the first journal entry with cash on the credit side and withdrawals on the debited side (as it is an expense). You and your business are not the same thing. You are two different entities. This is why you are taxed as two different entities. When you (the owner) make contributions, it is considered to be the cash of the business. From here you will make these expenses against the business and not yourself. Good luck,",
"title": ""
},
{
"docid": "7348a5a39e5d09a5d84942986787e34e",
"text": "\"Disclaimer: This should go without saying, but this answer is definitely an opinion. (I'm pretty sure my current accountant would agree with this answer, and I'm also pretty sure that one of my past accountants would disagree.) When I started my own small business over 10 years ago I asked this very same question for pretty much every purchase I made that would be used by both the business and me personally. I was young(er) and naive then and I just assumed everything was deductible until my accountant could prove otherwise. At some point you need to come up with some rules of thumb to help make sense of it, or else you'll drive yourself and your accountant bonkers. Here is one of the rules I like to use in this scenario: If you never would have made the purchase for personal use, and if you must purchase it for business use, and if using it for personal use does not increase the expense to the business, it can be fully deducted by the business even if you sometimes use it personally too. Here are some example implementations of this rule: Note about partial expenses: I didn't mention partial deductions above because I don't feel it applies when the criteria of my \"\"rule of thumb\"\" is met. Note that the IRS states: Personal versus Business Expenses Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part. At first read that makes it sound like some of my examples above would need to be split into partial calulations, however, I think the key distinction is that you would never have made the purchase for personal use, and that the cost to the business does not increase because of allowing personal use. Partial deductions come into play when you have a shared car, or office, or something where the business cost is increased due to shared use. In general, I try to avoid anything that would be a partial expense, though I do allow my business to reimburse me for mileage when I lend it my personal car for business use.\"",
"title": ""
},
{
"docid": "e58d99883593d6d12f8032f38a42982d",
"text": "If your business is a Sole Proprietorship and meets the criteria, then you would file form Schedule C. In this case you can deduct all eligible business expenses, regardless of how you pay for them (credit/debit/check/cash). The fact that it was paid for using a business credit card isn't relevant as long as it is a true business expense. The general rules apply: Yes - if you sustain a net loss, that will carry over to your personal tax return. Note: even though it isn't necessary to use a business credit card for business expenses, it's still an extremely good idea to do so, for a variety of reasons.",
"title": ""
},
{
"docid": "4d9bdb78150f5089baeab672332d02d2",
"text": "Federal income taxes are indeed expenses, they're just not DEDUCTIBLE expenses on your 1120. Federal Income Tax Expense is usually a subcategory under Taxes. This is one of the items that will be a book-to-tax difference on Schedule M-1. I am presuming you are talking about a C corporation, as an S corporation is not likely to be paying federal taxes itself, but would pass the liability through to the members. If you're paying your personal 1040 taxes out of an S-corporation bank account, that's an owner's draw just like paying any of your personal non-business expenses. I would encourage you to get a tax professional to prepare your corporate tax returns. It's not quite as simple as TurboTax Business makes it out to be. ;) Mariette IRS Circular 230 Notice: Please note that any tax advice contained in this communication is not intended to be used, and cannot be used, by anyone to avoid penalties that may be imposed under federal tax law.",
"title": ""
},
{
"docid": "043500147ba45fb468c09241f8672542",
"text": "\"In most cases, the other classes of shares are preferred stock (example, JPM-F). Preferred stock usually pays higher dividends and shareholders get preferential treatment in the event that the company goes under. (Preferred shareholders are behind bondholders in line, but ahead of common stock holders) In other cases, different classes of shares have different voting rights or pricing. Examples include Berkshire Hathaway B shares. In the case of Berkshire Hathaway B shares, the stock has 1/500th of the rights and 1/10,000th of the voting rights of an \"\"A\"\" share. You need to be cautious about investing in anything other than common stock -- make sure that you understand what you are getting into. This is not to say that other share classes are 'bad' -- just that many preferred stocks are thinly traded and are difficult to buy and sell.\"",
"title": ""
}
] |
fiqa
|
982e822f72d9814f88b4a5b8ccf4a6d6
|
Do Affordable Care Act business requirements apply to “control groups?”
|
[
{
"docid": "f9d027050a1ff82cef6501837a729850",
"text": "\"Yes, it applies to control groups. If I remember correctly common ownership rules are used to determine \"\"Applicable Large Employer\"\" status but if the time comes to owe a penalty, only the actual entity missing the mark will owe a penalty, not the entire control group. This is an excerpt from Section 4980H (the section that lays out employer requirements and penalties) (16) Employer. The term employer means the person that is the employer of an employee under the common-law standard. See § 31.3121(d)-1(c). For purposes of determining whether an employer is an applicable large employer, all persons treated as a single employer under section 414(b), (c), (m), or (o) are treated as a single employer. Thus, all employees of a controlled group of entities under section 414(b) or (c), an affiliated service group under section 414(m), or an entity in an arrangement described under section 414(o), are taken into account in determining whether the members of the controlled group or affiliated service group together are an applicable large employer. For purposes of determining applicable large employer status, the term employer also includes a predecessor employer (see paragraph (a)(36) of this section) and a successor employer. Link to the Federal Register\"",
"title": ""
}
] |
[
{
"docid": "8730be753a1406fab4444dcbb40296f3",
"text": "Here are the SEC requirements: The federal securities laws define the term accredited investor in Rule 501 of Regulation D as: a bank, insurance company, registered investment company, business development company, or small business investment company; an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million; a charitable organization, corporation, or partnership with assets exceeding $5 million; a director, executive officer, or general partner of the company selling the securities; a business in which all the equity owners are accredited investors; a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person; a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes. No citizenship/residency requirements.",
"title": ""
},
{
"docid": "2b78bf9194ab24b85908b4b33e98048c",
"text": "\"When it's actually in the interests of taxpayers, duespayers, or shareholders for execs to upgrade to get work done / be prepared, there's no conflict between the interests of agent and principal, and the entire issue is moot. But assuming we should treat business execs as a special case doesn't address the question. If governmental and union leadership \"\"should fly coach\"\", shouldn't c-corp execs?\"",
"title": ""
},
{
"docid": "0e022d9aac9463e8ea086f50cd59a0e1",
"text": "Doesn't matter what the product is, whether it's a tangible good or a service, a business is still a business and must be run as thus. If you don't run a hospital properly, as a business that provides a service, then that hospital is soon to be threatened with closure or state take-over.",
"title": ""
},
{
"docid": "4b7a260193ecd89e558737bd9632b6e6",
"text": "Americans with Disabilities Act (ADA) specifies wheelchair ramp requirements as well as access guidelines, specifications that most business organizations which are into the manufacturing of ramps have to meet. Usually, residential applications don’t need to meet ADA requirements, guidelines and specifications.",
"title": ""
},
{
"docid": "0d5f1455758d9b22e82fe037b6ccc6f3",
"text": "The insurance company is must assume you do have a preexisting condition you are unaware of. The reason for that is that Affordable Care Act precludes the Insurance company from denying coverage of them if you do. Insurance companies are businesses. They are in business to make money(unless you have a nonprofit insurer). They can not do that if you can buy insurance only when you need for them to pay out. So even though you may not have a preexisting condition, they are precluded from requiring an examination that would detect the most expensive preexisting conditions (hidden cancers, neurological, autoimmune disorders). So the companies must do what takes business sense and either deny you coverage or charge a rate that covers the risk they would be forced to take. In your question on travel there was a response that suggested you get international health insurance instead of travel health insurance that would be considered credible coverage. You are trying to save money which on a personal level is a good idea. However that is against the societal and business need that you maintain health coverage during your healthy times to cover the costs of those who need expensive treatment. So you will be monetarily penalized should you choose to reenter the society of insured people. Once you have paid the higher rate for up to 18 months you should be able to get a better policy for people who have had continuous coverage. Alternately you may be lucky enough to start working for a company that provides health insurance with out requiring continuous coverage.",
"title": ""
},
{
"docid": "33a82e50f4873ea3969a1e81d48b046c",
"text": "\"Agreed, but often it seems that gray area is exactly what these \"\"innovations\"\" are looking for. Repeatedly pushing down onto the struggling individual the past responsibilities of the wealthy corporation. Say this thing picks up steam and is revitalizing Walmart. John is walking out the door and \"\"critical\"\" deliveries need to be made. John was a bit short last month and couldn't wait for the 2 week insurance reimbursement process. So despite the team lead's prodding, didn't upgrade his insurance coverage this month. He didn't want to be \"\"that guy\"\" so didn't confirm/deny getting modifying coverage to the lead. The team lead asks John to take the packages, but doesn't really follow through on the insurance check. John wrecks his car and his back. John's insurance company rejects the claim. The team lead and John are fired because not checking/having the insurance was against written policy, but winked and nodded away all the way back up to the #1 online retailer spot. So often, obstacles are easily surmounted. I get the \"\"personal responsibility\"\" angle for all involved, but social/financial pressure can be brutal. The problem is that situations are left as is and the moneyed parties are \"\"enrichingly ignorant\"\". My guess is few compile stats on SOL Uber/Lyft drivers in similar situations.\"",
"title": ""
},
{
"docid": "5ddecc487c3d4865f2e081af8cc1eba1",
"text": "I dont think we disagree. I believe the notion of control is elusive in this day and age. We have leverage or influence at best. I agree that if the government is asked to invest or subsidize in another organization, it has the right, as should any investor, to expect that its opinions will be heard and its interests will be protected. In that context, if any investor decides that its interests extend to amending management compensation, I think that is reasonable.",
"title": ""
},
{
"docid": "99401b3b5c735753eddc7b08da0635c1",
"text": "Despite the ACA offering generous deductions, a lot of small businesses still cannot afford the initial capital involved in offering health insurance plan to their employees... Therefore we cannot take advantage of these deductions... Putting us at a disadvantage for finding low-to-mid skilled workers, to the larger corporations that are now mandated to offer the benefits..",
"title": ""
},
{
"docid": "9c5afb3157bb8da6260dd6eef07271ae",
"text": "That's your assumption, but the details are there are different tiers of liability depending on the level of employees you have. Have 5,000+ you must pay this increased level of medical insurance or other liabilities. So if he has 7,000 employees and increased liabilities would happen at 5,000+ ---- sounds like there's a $$ incentive to decrease to 4,999. That's not emotion, that's just business. The irony would be if he sold to a Chinese company, that cuts employee benefits and wages and sends most of the profit home while employing tax shelters to yield as little as possible in taxes.",
"title": ""
},
{
"docid": "9cc5592131287813f5a0567b2fff8c9a",
"text": "I don't have preexisting conditions. I am only speaking of how *my own personal* healthcare situation got worse because of the ACA. I did used to use the dental and vision portions of my company-provided insurance regularly but I don't have that as part of my ACA insurance because again, it is unaffordable.",
"title": ""
},
{
"docid": "b33b239d31da5096123862b83c6b75f3",
"text": "By extending your logic both BNSF and GEICO would be nearly thhe same companies as both have majority ownership of warren buffet. How companies act IS defined by the theater of competition and regulation. Sears ca and US are two very different companies with no operational overlap (other than sears brand name)",
"title": ""
},
{
"docid": "ab26c2d506d0baed1f40594083ed200a",
"text": "The tax incentives for employer sponsored health insurance were designed to incentivize employers to provide the insurance and for employees to purchase the insurance. Since your situation does not meet the requirements to take advantage of this incentive, you can not. In the near future you should be able to take part in the government sponsored exchanges. This may spur changes in how this works.",
"title": ""
},
{
"docid": "b266013fea10adc50a12245328216415",
"text": "There are a lot of moving parts, individual premiums and annual increases have little to do with employer premiums and annual increases and vice versa. Most people think of XYZ insurer as a single company with a single pool of insured folks. This common knowledge isn't accurate. Insurers pool their business segments separately. This means that Individual, small business, mid-size business, and large business are all different operating segments from the viewpoint of the insurer. It's possible to argue that because so many people are covered by employer plans that individual plans have a hard time accumulating the required critical mass of subscribers to keep increases reasonable. Age banded rating: Individual coverage and small group coverage is age rated, meaning every year you get older. In addition to your age increase, the premium table for your plan also receives an increase. Employers with 100+ eligible employees are composite rated (in general), meaning every employee costs the same amount. The 18 year old employee costs $500 per month, the 64 year old costs $500 per month. Generally, the contributions an employee pays to participate in the plan are also common among all ages. This means that on a micro level increases can be more incremental because the employer is abstracting the gross premium. Composite rating generally benefits older folks while age rating generally benefits younger folks. Employer Morale Incentive: Generally the cost to an employee covered by an employer plan isn't directly correlated to the gross premium, and increases to the contribution(s) aren't necessarily correlated to the increases the employer receives. Employers are incentivised by employee morale. It's pretty common for employers to shoulder a disproportionate amount of an increase to keep everyone happy. Employers may offset the increase by shopping some ancillary benefit like group life insurance, or bundling the dental program with the medical carrier. Remember, employees don't pay premiums they pay contributions and some employers are more generous than others. Employers are also better at budgeting for planned increases than individuals are. Regulators: In many of the states that are making the news because of their healthcare premium increases there simply isn't a regulator scrutinizing increases. California requires all individual and small group premiums to be filed with the state and increases must be justified with some sort of math and approved by a regulator. Without this kind of oversight insurers have only the risk of subscriber flight to adjust plan provisions and press harder during provider contract negotiations. Expiring Transitional Reinsurance Fee and Funds: One of the fees introduced by healthcare reform paid by insurers and self-insured employers established a pot of money that individual plans could tap to cope with the new costs of the previously uninsurable folks. This fee and corresponding pot of money is set to expire and can no longer be taken in to account by underwriters. Increased Treatment Availability: It's important that as new facilities go online, insurer costs will increase. If a little town gets a new cancer clinic, that pool will see more cancer treatment costs simply as a result of increased treatment availability. Consider that medical care inflation is running at about 4.9% annually as of the most recent CPI table, the rest of the increases will result from the performance of that specific risk pool. If that risk pool had a lot of cancer diagnoses, you're looking at a big increase. If that risk pool was under priced the prior year you will see an above average increase, etc.",
"title": ""
},
{
"docid": "21f7f766f152e5ee0c687d0465e8f0be",
"text": "\"It's required by law. 12 USC 1759 (b) requires that membership in a credit union be limited to one or more groups with a \"\"common bond\"\", or to people within a particular geographic area. For lots more gory details on how this is interpreted and enforced, you can read the manual given to credit unions by the National Credit Union Administration, which is their regulatory agency.\"",
"title": ""
},
{
"docid": "65a58ef0375ce0dc273460f030224e16",
"text": "\"J Gruber's consulting reports for the various states (Minnesota, Wisconsin, etc). * http://www.washingtonpost.com/blogs/ezra-klein/post/jon-gruber-on-the-premiums-in-health-care-reform/2011/08/25/gIQAN0TUWS_blog.html ...and the article it addresses (which included some numbers from the reports): * http://dailycaller.com/2012/02/11/obamacare-architect-expect-steep-increase-in-health-care-premiums/ Note that Gruber has made a whole spectrum of claims (from initially claiming that premiums would go DOWN for a consulting agreement with the Obama administration, to later \"\"revisions\"\" showing significant increases {to varying degrees depending on the individuals specific demographic}), to wit: >Gruber’s new reports are in direct contrast Obama’s words — and with claims Gruber himself made in 2009. Then, the economics professor said that based on figures provided by the independent Congressional Budget Office, “[health care] reform will significantly reduce, not increase, non-group premiums.” >During his presentation to Wisconsin officials in August 2011, Gruber revealed that while about 57 percent of those who get their insurance through the individual market will benefit in one way or another from the law’s subsides, an even larger majority of the individual market will end up paying drastically more overall. >“After the application of tax subsidies, **59 percent of the individual market will experience an average premium increase of 31 percent,”** Gruber reported. >The reason for this is that an estimated 40 percent of Wisconsin residents who are covered by individual market insurance don’t meet the Affordable Care Act’s minimum coverage requirements. Under the Affordable Care Act, they will be required to purchase more expensive plans. >Asked for his own explanation for the expected health-insurance rate hikes, Gruber told TheDC that his reports “reflect the high cost of folding state high risk pools into the [federal government's] exchange — without using the money the state was already spending to subsidize those high risk pools.” Note: Emphasis added. Note 2: To begin with, an \"\"average\"\" increase of 31% qualifies as \"\"significant\"\" (hell, it's a lot more than merely \"\"significant\"\", that's a HUGE increase); and secondly, that is an AVERAGE, meaning that while some of the people in that \"\"59%\"\" will probably not see such a high increase, a fairly large segment {and per the provisions of the Act versus current premium calculation methods, we KNOW these will be \"\"young healthy singles\"\", and especially males} will face increases that are substantially HIGHER than 31%, and in fact will probably be in the nature of double or triple previous premiums {as would be required in order to meet another provision of the act, that highest premiums for older/sicker pool members cannot be higher than 3x that of the youngest/lowest tier premiums -- and if the company is to balance the books, it can only \"\"bring down\"\" the one end if it makes a compensating increase at the other end.}) None of that is \"\"rocket science\"\" and it is entirely predictable. (The only things that would be \"\"odd\"\" would be that anyone should expect anything different, and that Gruber's initial claims of across the board lower costs were ever accepted in the first place.)\"",
"title": ""
}
] |
fiqa
|
089982ef8045087bf652197aa9f7f8a5
|
As a contractor, TurboTax Business-and-Home or Basic?
|
[
{
"docid": "1a14a26662b5dddc3d1492462f1f4415",
"text": "\"Assuming you file state tax returns, you shouldn't buy Basic. Ever. Your choice is probably between the \"\"Premier\"\" version and the \"\"Business and Home\"\" version. Price difference is insignificant (I have a comparison on my blog, including short descriptions as to who might find each version useful the most). The prices have gone down significantly, since when I wrote the article, its cheaper now.\"",
"title": ""
}
] |
[
{
"docid": "90bf0c014b7268f7f6404fa099240da9",
"text": "This may not exactly answer your question but, as a small business owner, I would highly recommend having a professional handle your taxes. It is worth the money to have it done correctly rather than doing something wrong and getting audited or worse having penalties assessed and owing more than you thought would be possible. I would recommend this especially if this is how you make your primary income, you can always write it off as a business expense.",
"title": ""
},
{
"docid": "c2355fd290d4917d14f57a1c73572a49",
"text": "Not as you suggest. Since you are sole prop, you are taxed on a cash basis. Within reason, you can prepay vendors - so temp to hire through an agency might appear more attractive than direct hire. But there needs to be a justification other than avoidance of taxes. So pre-paying 100k on 12/25 would look fishy as fuck. Plus your quality of candidate will suffer if you need anything other than low skill labor. Look at your other fully deductible expenses - anything you can prepay-prepay. For example, I set my liability insurance renewal January 15 to provide optionality. But it just shifts one year into another .. Means fuckall if you are in the same marginal bracket next year. The IRS has also relaxed depreciation on office technology. Computers are now fully deductible rather than being capitalized. @ 500k revenue you should have a CPA and legal counsel. Simply incorporating isn't tax magic. The purpose is to limit yourersonal liability, not a tax shelter - but shitty things happen once you have employees, don't create the potential for a disgruntled employee lawsuit put your shelter at risk of court judgment. That said, assuming you aren't dumping a hypothetical on the Internet, congrats - for all the headaches, having employees is the ultimate leverage .. it's like a xerox machine for your labor (including loss of fidelity with each copy) ..",
"title": ""
},
{
"docid": "77c89a3b0b819cb75b041ceea06508d1",
"text": "\"Old question, but in the comments of the accepted answer, I believe Nate Eldredge is correct and littleadv is incorrect. Nate copied the actual quote from the IRS guidelines, quoted below: An expense is ordinary if it is common and accepted in your trade, business, or profession. An expense is necessary if it is appropriate and helpful to your business. An expense doesn't have to be required to be considered necessary. Noise cancelling headphones certainly count as \"\"appropriate and helpful to your business\"\" in the software industry, especially with the trend of open office layouts. And because of the ubiquitous distractions inherent in the aforementioned office space, noise cancelling headphones are becoming quite \"\"common and accepted\"\" for use by developers. I'd be more hesitant about the keyboard and monitor, as presumably the employer is providing those already. As using your own could be said to just be a personal preference over those provided, the argument that providing your own version is \"\"appropriate and helpful\"\" is a little more shaky. I am not a tax lawyer, so don't come after me if you get audited, but my guess from reading the actual IRS guidelines is noise cancelling headphones: probably, keyboard and monitor: maybe.\"",
"title": ""
},
{
"docid": "c5473f78e89bb5a997d4a8fd639073f8",
"text": "I'm glad keshlam and Bobby mentioned there are free tools, both from the IRS and private software companies. Also search for Volunteer Income Tax Assistance (VITA) in your area for individual help with your return. A walk-in tax clinic strength is tax preparation. CPAs and EAs provide a higher level of service. For example, they compile and review your prior year's return and your current year, although that is not relevant to your current situation. EAs and CPAs are allowed to represent you before the IRS. They can directly meet or contact the IRS and navigate audits and other requests on your behalf. Outside of tax season, an accountant can help you with tax planning and other taxable events. Some people do not hire a CPA or EA until they need representation. Establishing a relationship and familiarity with an accountant now can save time and money if you do anticipate you will need representation later. Part of what makes the tax code complicated is it can use very specific definitions of a common word. Furthermore, the specific definition of a phrase or word can change between publications. Also, the tax code uses all-encompassing definitions and provide detailed and lengthy lists that are not exhaustive; you may not find your situation listed or described in the tax code, yet you are responsible for reporting your taxable events. The best software cannot navigate you through your tax situation like an accountant. Lastly, some of the smartest people I have met are accountants and to get the most out of meeting with them you should be as familiar as possible with your position. The more familiar you are with accounting, the more advanced knowledge they can share with you. In short, you will probably need an accountant when: You need to explain yourself before the IRS (representation), you are encountering varying definitions in the tax code that have an impact on your return, or you have important economic activities that you are unsure of appropriate tax treatment.",
"title": ""
},
{
"docid": "d42f309a482e9853bffb38d3a8d21e7c",
"text": "Be ruthlessly meticulous about the IRS regulations for deducting a home office. If it's allowed, it's allowed.",
"title": ""
},
{
"docid": "82643f07a5220a97f0efa5551e0b2d39",
"text": "I'm not sure how this gets entered in TurboTax, but this income from the company should be included in the Schedule C (or C-EZ) Line 1 Gross Receipts total, along with all of your 1099-MISC income from your business and any other income that your business took in. You don't need a 1099 from them, and the IRS doesn't care (at least from your perspective) if you got a 1099 or not; in fact, they probably expect you to have some non-1099 income. We don't know why the company chose not to issue 1099 forms, but luckily it isn't your concern. You can fill out your tax return properly without it. Note: This answer assumes that you didn't have any tax withheld from your checks from this company. If you did have tax withheld, you'll need to insist on a 1099 to show that.",
"title": ""
},
{
"docid": "6070d55011ad661aab3a36e12c8337d9",
"text": "You will need Premier, since it is the first one to include Schedule E. Deluxe used to support Schedule E for investments, but not anymore. Most taxpayers know Schedule E as the schedule used for rentals, but you're going to need it to report your S-Corp income.",
"title": ""
},
{
"docid": "067252b5ff9ca4e62bf6ff506f4bd7cb",
"text": "The general rule is: Generally, in order to claim a business deduction for your home, you must use part of your home exclusively and regularly: Exclusively seems to be the toughest standard and I do not know exactly how strict the IRS's interpretation is. Working in your living room where you regularly watch TV and have people over on the weekends would seem to fail that test. A separate room with your computer in it would pass it. If it was your only computer and you regularly played online games with it, that would seem to be a grey area. The IRA booklet covering this area is here http://www.irs.gov/pub/irs-pdf/p587.pdf I know people that have rented rooms in other places or made use of rental offices for this purpose.",
"title": ""
},
{
"docid": "8c5aa064b387820dc05c7f309a1ffe17",
"text": "Schedule E is the form you'll use. It lists nearly all deductions you can take for a rental. TurboTax Deluxe will handle it and it includes State Filing.",
"title": ""
},
{
"docid": "d12eafeff696a9084ff5c95ad615c099",
"text": "Given your clarifying points, it sounds like you are running both businesses as one combined business. As such, you should be able to get just a single HST number and use that. However, let me please urge you to contact a professional accountant and possibly a lawyer, as it is very unusual to be performing these services without a business license, and you may be exposing yourself to civil penalties and placing your personal assets (e.g. your house) at risk. Additionally, it may be beneficial for you to run these as businesses as you can likely write off (more of) your expenses.",
"title": ""
},
{
"docid": "8613a48d2920c4a773321741f27078e6",
"text": "It's going to depend entirely on your tax situation, its complexity, and your willingness/interest in dealing with tax filings. Personally I find that not only do I not enjoy dealing with figuring out my taxes, but I don't know even a fraction of the possible deductions available and all the clever ways to leverage them. Plus the tax code is changing constantly and staying on top of that is not something I'm ever going to attempt. I am of the philosophy that it is my duty to pay only the absolute minimum tax legally required, and to utilize every possible exemption, deduction, credit, etc. that is available to me. Plus my business activities are a bit on the non-traditional side so it requires some unorthodox thinking at times. For me, a trained professional is the only way to go. What it costs me, I way more than make up in savings on my tax bill. I also go out of my way to never get a refund because if I get one, it just means I gave the government a free loan. The last time I computed my own taxes (used TurboTax if memory serves) was I think in the late 90s.",
"title": ""
},
{
"docid": "20c142df943348a0135a62c9553986d0",
"text": "\"I don't see why you would need an \"\"international tax specialist\"\". You need a tax specialist to give you a consultation and training on your situation, but it doesn't seem too complicated to me. You invoice your client and get paid - you're a 1099 contractor. They should issue you a 1099 at the end of the year on everything they paid you. Once you become full-time employee - you become a W2 employee and will get a W2 at the end of the year on the amounts paid as such. From your perspective there's nothing international here, regular business. You have to pay your own taxes on the 1099 income (including SE taxes), they have to withhold taxes from your W2 income (including FICA). Since they're foreign employers, they might not do that latter part, and you'll have to deal with that on your tax return, any decent EA/CPA will be able to accommodate you with that. For the employer there's an issue of international taxation. They might have to register as a foreign business in your state, they might be liable for some payroll taxes and State taxes, etc etc. They might not be aware of all that. They might also be liable (or exempt) for Federal taxes, depending on the treaty provisions. But that's their problem. Your only concern is whether they're going to issue you a proper W2 and do all the withholdings or not when the time comes.\"",
"title": ""
},
{
"docid": "986c9acc7c40e3a524b8ef9cff81fbe9",
"text": "I just scanned in a single sheet summary of my last two years tax returns. It is something our CPA does for us. How would I post it? Don't worry, I marked out all the personal information. What is says is I paid over $50K in taxes in 2015. Last year we had one of our biggest contracts put on hold, so I only paid $20K. I won't have this years figures, because we don't submit them to our CPA until the end of the year. However, this year, we just bought out two other owners at $1.2M, which makes me a 33% owner. The contract is getting restarted (knock on wood), which all together means my personal tax liability is going to be well over $100K. My company is a commercial company, but we work with the government, and matter of fact some of the stuff we produce was designed and developed by the government (as is many of today's modern inventions - I think you would be surprised). So lets tackle it one at a time. Pick one of those things that commercial does better than government. P.s. Higher taxes doesn't mean higher for you, a lot of times it means higher for guys like me or way better than me (which I am perfectly fine with, and matter of fact would support). People who use infastructure more - like large corporations - should pay more for it...",
"title": ""
},
{
"docid": "5d86ebab266bf0a5d9f55be7a5222389",
"text": "I am assuming this is USA. While it is a bit of a pain, you are best off to have separate accounts for your business and personal. This way, if it comes to audit, you hand the IRS statements for your business account(s) and they match your return. As a further precaution I would have the card(s) you use for business expenses look different then the ones you use for personal so you don't mess another one up.",
"title": ""
},
{
"docid": "4dde25305d9e86a848b150e47da9c859",
"text": "\"I don't live in Pennsylvania and I don't know anything about this particular tax, but just the name says that it is a \"\"local\"\" tax. TurboTax covers federal and state taxes, not local taxes. Many places have city, township, and/or county taxes that you are required to pay in addition to state and federal taxes.\"",
"title": ""
}
] |
fiqa
|
537420c1ddd986de9a307e845bfeb715
|
Peer to peer lending business model (i.e. Lending Club)
|
[
{
"docid": "3091eda9cb4abbce57a1fd1559c2da15",
"text": "This is all answered in the prospectus. The money not yet invested (available/committed to a note but not yet funded) is held in pooled trust account insured by FDIC. Money funded is delivered to the borrower. Lending Club service their notes themselves. Read also my reviews on Lending Club.",
"title": ""
},
{
"docid": "c19ae66b44737cc53fa80786107eabb5",
"text": "The best description of P2P lending process I saw comes from the SEC proceedings. They are very careful about naming things that are happening in the process. Prosper got back to business after this order, but the paper describes succinctly how Prosper worked when its notes haven't yet been registered by the SEC. These materials contain a lot of responsible comments on how crowdfunding, including P2P lending, works.",
"title": ""
}
] |
[
{
"docid": "1725f7ef8a360ad6fb97628888e9c1b1",
"text": "\"Here's a blog by a guy who is trying to do this: Personal Loan Portfolio And here's another one: bobharris.com Do a quick search for \"\"prosper loan\"\" or \"\"kiva\"\" on blog search.\"",
"title": ""
},
{
"docid": "3278e0a9c73e54e1e75295e5d1e9156a",
"text": "\"There is no one solution to every project finance problem. Two models might make sense in this situation, however. In this case, you would count all the money that you give to your friend as a loan which he will pay back with interest. The interest rate and loan amounts will have to be agreed on by both of you. One one hand, the interest should be high enough to reward you in a successful outcome for the amount of risk that you take on if things don't work out. On the other, the interest rate needs to be low enough where his earnings after loan repayment justify your friend's effort, in addition to being competitive to ant rate your friend could secure from a bank. The downside to this plan is you don't directly benefit from the franchise's profits. In this model, you will record the cash that each of you invests. Since your friend is also adding \"\"sweat equity\"\" by setting up and operating the franchise, you will need to quantify the work that your friend and you invest into the franchise. Then you can determine how much each of you has invested in terms of dollars and split any franchise profits based on those proportions. The downside of this plan is that it is difficult to estimate how much time each of you invests and how much that time is worth.\"",
"title": ""
},
{
"docid": "4ebdef47b59f8a0bdd4e4fba0440b5b3",
"text": "This is fraud and could lead to jail time. The vast majority of people cannot obtain such loans without collateral and one would have to have a healthy income and good credit to obtain that kind of loan to purchase something secured by a valuable asset, such as a home. Has this been done before? Yes, despite it being the US, you may find this article interesting. Hopefully, you see how the intent of this hypothetical situation is stealing.",
"title": ""
},
{
"docid": "ee8fccbcca3d7618962273ff5df1d43a",
"text": "The model itself is fairly common for serving particular niche markets. A few other organizations which operate in similar setups: prepaid card providers such as NetSpend, GreenDot, AccountNow, etc; startups such as SmartyPig, PerkStreet, WePay, and HigherOne. Still, nobody else seems to be providing full-service online banking to mainstream customers the way we plan to. We plan to have much better security than most banks, which isn't hard given the current sorry state of online banking in the US. And having an intermediary who's looking out for your interests can be a good thing. David, my co-founder Josh lays out our launch plans and why we are invite-only in his latest post. In short, we made a decision to build our own call center rather than outsource it, and that limits how quickly we can bring people on.",
"title": ""
},
{
"docid": "97ae846da79dfb8cf406399d59a40041",
"text": "For questions 1 and 2. 1) If you are packing the loans into a CDO, they are being sold on the open market. Once it achieves a AAA rating, as most did even though they were mostly subprime, alt a, or arm, it is sold and shipped off the originator's books (While the originator of the CDO collects X% in fees) Basically how the originator makes their money is by X amount of CDOs they sell. There was no incentive to pick and choose the best borrowers to sell a loan to because how the CDOs were sold they achieved the best rating regardless of the borrowers credit risk. Due to this model, people are going to try and get as many people into the homes and sell the CDO asap. This caused questionable lending practices to result, NINJA (no income, no job, no assets) loans, manipulating borrowers income, assets, etc. Things that could be changed to help not have this occur again: a) Feds monetary policy was pretty meh during this period, due to low interest rates the banks had pretty much an endless supply of money and when all the reasonable ventures dried up they had to explore other opportunities to lend. b) Ratings agencies need an overhaul in how they receive their commission, preferably they should be being paid by the investor not the person issuing the security. This will help to eliminate the bias that results. c) Having X% (2-5) remain on the institutions books who created the CDO will help to make them responsibly lend. This is because if they are required to have it remain on their books, they will make better longer term decisions in who to lend to. I'm pretty sure all of these issues are discussed in Nouriel Roubini's book [Crisis Economics](http://www.amazon.com/Crisis-Economics-Course-Future-Finance/dp/1594202508) Another Great book already mentioned in this thread is by Michael Lewis [The Big Short](http://www.amazon.com/Big-Short-Inside-Doomsday-Machine/dp/0393338827/ref=sr_1_1?s=books&ie=UTF8&qid=1324140607&sr=1-1) If your interested in the European Crisis Michael Lewis also just came out with [Boomerang](http://www.amazon.com/Boomerang-Travels-New-Third-World/dp/0393081818/ref=sr_1_1?s=books&ie=UTF8&qid=1324140665&sr=1-1)",
"title": ""
},
{
"docid": "782554e6e5ed2d43c52b0aff4635861d",
"text": "Swimming clubs exist. Treat it as a start up business and it's easier to figure out. Once you know about what people are willing to pay to join you know about how much you can spend. Our family business invites tenants to use a private pool located at one of our properties. We maintain the facility and have appropriate signs posted and a balloon insurance policy specifically for the pool. In 1975 the pool cost 25,000 to install and we spend about $5000-$6000 to operate and heat it each season. The downside is that there is likely a lot less support for the idea than you think. You're going to have to limit access to it with a membership and that's going to be a pain to figure out because it will almost certainly require an employee or a very expensive electronic access control. You can't really open it up to the entire community without some sort of contract or no one has an incentive to pay. Every time a home sells in the community you either lose a customer or gain a headache if you don't have some sort of deed restriction or membership fee.",
"title": ""
},
{
"docid": "62434a140f0cfd64e57c57b6ba1b6a0a",
"text": "\"I have a friend who had went on a seminar with FortuneBuilders (the company that has Than Merrill as CEO). He told me that one of the things taught in that seminar was how to find funding for the property that you want to flip. One of the things he mentioned was that there are so-called \"\"hard money\"\" lenders who are willing to lend you the money for the property in exchange for getting their name on the property title. Last time I checked it looked like here in Florida we had at least Bridgewell Capital and Fairview Commercial Lending that were in that business. These hard money lenders get their investment back when the house is sold. So there is some underlying expectation that the house can be sold with some profit (to reimburse both the lender and you for your work). That friend of mine did tell me that he had flipped a house once but that he did not receive the funding to that from a lender but from an in-law, however it was through a similar arrangement.\"",
"title": ""
},
{
"docid": "dcc93d1da65ba82b809627a7cfab7adf",
"text": "P2P lending is basically a debt product with (much) higher risk, I doubt that there's any regulation or government backing in it. The money lent to borrowers are not collateralized or securitized.",
"title": ""
},
{
"docid": "4b7b1db2ce222246f4d68ce6cf33d47a",
"text": "To what end would you want to break the law? Why would you think it is beneficial to you in any way? The reason for these limitations is to protect people who have no financial reserves and are not sophisticated investors from making dangerous and risky investments with the little money they have to invest. You need to remember that there's no guarantee of principal with these loans and the rate of default is pretty high. From my own personal experience with Lending Club (and I've only invested in A and some B-rated loans) - rate of default is about 10%. This may be a nice exercise in microlending - but if you want to put all your savings into this, you're taking a huge risk. Risk which is completely unjustified since not only the returns are pretty low (again - from my aforementioned experience: <6% APR, you take higher rate loans - you get higher rate of defaults), but they're also taxed as ordinary gains. Why would you not, instead, invest in a more conservative bond or bond/stock mix fund which will pay you dividends that will get preferential tax treatment and appreciation would be subject to capital gains tax? No reason. And the limitation on who can invest in Lending Club is there for exactly this purpose - to weed out people like you who have no idea of what they're doing.",
"title": ""
},
{
"docid": "685f5af46c704157e62049b3b1eace69",
"text": "I don't know much about paypal or bitcoin, but I can provide a little information on BTC(Paypal I thought was just a service for moving real currency). BTC has an exchange, in which the price of a bitcoin goes up and down. You can invest in to it much like you would invest in the stock market. You can also invest in equipment to mine bitcoins, if you feel like that is worthwhile. It takes quite a bit of research and quite a bit of knowledge. If you are looking to provide loans with interest, I would look into P2P lending. Depending on where you live, you can buy portions of loans, and receive monthly payments with the similiar risk that credit card companies take on(Unsecured debt that can be cleared in bankruptcy). I've thrown a small investment into P2P lending and it has had average returns, although I don't feel like my investment strategy was optimal(took on too many high risk notes, a large portion of which defaulted). I've been doing it for about 8 months, and I've seen an APY of roughly 9%, which again I think is sub-optimal. I think with better investment strategy you could see closer to 12-15%, which could swing heavily with economic downturn. It's hard to say.",
"title": ""
},
{
"docid": "779d5046f25234a651f2736f371e4849",
"text": "For people who are good with money (presumably), Kiva.org gives your money to such people who apply for loans through social service organizations in various countries (I believe this is how it's done). The people state what they will use the money for. It can be as simple as 'buying provisions for food truck business' or 'replacing wheels on tractor.' Then they pay the money back and you (who donated x number of dollars) use that repaid money to make another loan.",
"title": ""
},
{
"docid": "19e274619afa82cd02d9aab9f56d1ebc",
"text": "\"You are confining the way you and the other co-founders are paid for guaranteeing the loan to capital shares. Trying to determine payments by equity distribution is hard. It is a practice that many small companies particularly the ones in their initial stage fall into. I always advise against trying to make payments with equity, weather it is for unpaid salary or for guaranteeing a loan such as your case. Instead of thinking about a super sophisticated algorithm to distribute the new shares between the cofounders and the new investors, given a set of constraints, which will most probably fail to make the satisfactory split, you should simply view the co-founders as debt lenders for the company and the shareholders as a capital contributor. If the co-founders are treated as debt lenders, it will be much easier to determine the risk compensation for guaranteeing the loan because it is now assessed in monetary units and this compensation is equal to the risk premium you see fit \"\"taking into consideration the probability of default \"\". On the other hand, capital contributors will gain capital shares as a percentage of the total value of the company after adding SBA loan.\"",
"title": ""
},
{
"docid": "305d3ec3e1f18db076a292d195059ffe",
"text": "See my post listing Trumps failures. Clearly lenders/investors/people get sucked into things all the time. P.S. Established Corps and LLC are granted credit all the time. In my example I never mentioned how old or established, or well funded any of these Corps were.",
"title": ""
},
{
"docid": "8586796e8d64cc6ebeb5ef6bc6cc0f27",
"text": "Yes and no, P2P Capital Markets is similar concept but is more geared towards business loans. Community Lend used to offer this service but has stopped.",
"title": ""
},
{
"docid": "b564a2afd57d6a5281c9edc56494995e",
"text": "A real life experience. A friend of mine did that with his housemates. They bought a house together as students and it worked for them. The tricky bit is to have a very good contract with your housemates as to how the venture should work. What if? Somebody can't pay, somebody can't enjoy the house (on an extended trip), somebody wants out (marriage, etc.) It worked for my friend...",
"title": ""
}
] |
fiqa
|
43c301094741932c675ef32c7b7476a2
|
In what cases can a business refuse to take cash?
|
[
{
"docid": "842264f7e67962cdd9820c15a852e5f3",
"text": "The Federal Reserve website notes that creditors must accept cash for debts on services already rendered, but that businesses may refuse cash for services not yet rendered unless prohibited by local law. The Treasury website includes examples of businesses limiting what cash they will accept: For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy.",
"title": ""
},
{
"docid": "93e9804405a65dd7514e7995151eec43",
"text": "You have to take legal tender to settle a debt. If your business model doesn't involve the customer incurring a debt that is then settled, you don't have to take cash. For example, in a restaurant where you pay after eating, you can insist on paying cash, because you're settling a debt. But in McDonald's they can refuse your cash at the counter, because you've not received your food yet and so no debt has been incurred.",
"title": ""
},
{
"docid": "3d73fdd1d39fb18e9bd9989f34978bee",
"text": "\"They don't have to take cash if they reasonably told you in advance they don't take cash, because they made fair effort to prevent you from incurring a debt. They don't have to take cash if the transaction hasn't yet happened (not a debt) or if it can be easily undone at no cost to either party - such as a newspaper subscription they can just stop delivering. Both of these reasons are limited by the rules against discrimination, see below. They don't have to take cash if it's impracticable. For instance a transit bus when fares first went to $1.00, it took years to fund new fareboxes able to take paper money. You don't have to take a mortgage payment in pennies. Liquor stores don't have to take $100 bills. (it requires them to keep too much change in the till, which makes them a robbery target). Trouble arises when it appears there's an ulterior motive for the rule. Suppose a Landlord Jim requires rent to be paid with EFT. Rent-controlled Marcie tells the judge \"\"It's a scheme to oust me, he knows I'm unbanked\"\". Jim counters \"\"No. I got mugged last month because criminals know when I collect cash rents.\"\" It will turn on whether Jim can show good-faith effort to work with his unbanked tenants to find other ways to pay. If Jim does a particularly bad job of this, he could find himself paying Marcie's legal bills! Even worse if the ulterior motive is discrimination. Chet the plumber hates Muslims. Alice the feed supplier hates the Amish. So they decide to take credit cards only, knowing those people's religions don't allow them. Their goose is cooked once they can't show any other reasonable reason to refuse cash.\"",
"title": ""
},
{
"docid": "584bd446fe497404fff91a9215141feb",
"text": "\"Apartment complexes have had a long history of not accepting cash for payment of rent. This eliminates the problem of robbery and strongly reduces the risks of embezzlement. THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE Article 1, Section 10 of the US Constitution states: No State shall ... make any Thing but gold and silver Coin a Tender in Payment of Debts Previous editions of banknotes stated that the notes were redeemable in gold or in lawful money. The Mint Act of 1792 set gold and silver as legal currency (and that one did not have to accept \"\"base metal coins\"\" for more than $10 which is why coin rolls only go up to $10). The Coinage Act of 1873 dropped silver and made gold the legal standard for currency. In 1933, the \"\"redeemable in gold\"\" was changed by federal statute and the legend you mention was added. Prior to 1933, someone could demand that you pay them in gold and not with a bank note. Legislation in 1933 ended that. This clause in the Constitution leads some political groups to wish to return to a gold standard. I recommend reading the book Greenback as it describes how our currency got the way it did and why that clause appears on currency.\"",
"title": ""
},
{
"docid": "f1ff502edeca8b9aa55cce01a654cb0e",
"text": "\"A business can refuse cash (paper currency) payment pretty much in all cases provided it's a reasonable policy and/or notified during/in advance of contracting. Details in this link. \"\"all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services.\"\" Even if the payment is being made to settle a debt or other obligation, the creditor may refuse payment if their rationale is reasonable (as determined by the courts).\"",
"title": ""
}
] |
[
{
"docid": "7ca2ce1a6ca37200e7f5119f80f5b42c",
"text": "First of all, don't be rude-I'm trying to help here. Second, picture this scenario- a company manages an offshore oil rig. The employees by law have to be paid in a certain period of time. To send paper checks to the employees who work on the oil rig would cost thousands of dollars and the employees can't cash them anyways. Thus the company requires it's employees to have direct deposit. One of the employees can't or won't get a bank account (yes there are people like this). How do you pay him? A prepaid debit card solves this problem.",
"title": ""
},
{
"docid": "bbc665f95d5518c2fc7082a4541d862c",
"text": "A) Wrong subreddit. There's probably a legal advice Canada one you should check out. B) You're a cashier. No one cares about your involvement in taxing products/customers. Unless you're directly pocketing money the most you could be is out of a job. C) If you're part of a chain store there is a REALLY good chance they have their inventory/sales numbers looked at regularly by extremely qualified people. Conclusion: Customer was being a dick for no reason.",
"title": ""
},
{
"docid": "c05c869e4935166e9ed6d58d4660102f",
"text": "\"I looked this up on Wikipedia, and was hoping the answer would be \"\"no - stores cannot refuse legal tender\"\", but unfortunately, it's not the case! If the retailer wants to go to the lengths of refusing certain denominations to protect themselves from counterfeit currency, they are fully within their rights to do so. The \"\"Legal Tender\"\" page on Wikipedia says this about Canadian bills: [...] Retailers in Canada may refuse bank notes without breaking the law. According to legal guidelines, the method of payment has to be mutually agreed upon by the parties involved with the transactions. For example, convenience stores may refuse $100 bank notes if they feel that would put them at risk of being counterfeit victims [...] What is interesting about what I found out, is that legal tender cannot be refused if it is in repayment of an existing debt (i.e. not a store transaction for which there existed no previous debt). So you could offload your $100 bills when repaying your Sears credit card account (or pay in pennies if you wanted to!) and they couldn't refuse you!\"",
"title": ""
},
{
"docid": "73851022abdb3f0a43549072dcdda4a5",
"text": "This really should be a comment, but I can't yet. The question desperately needs a location tag. In at least some countries(New Zealand), the default action on all insufficient funds transactions is to refuse the transaction. Credit cards are the only common exception. Every bank operating in NZ that I know of acts this way. Sometimes there is a fee for bouncing a transaction, sometimes not, that depends on the bank. Any other option must be explicitly arranged in writing with the bank. Personally, coming from a country where declining transactions is the default, I'd be shocked and angry to be stuck with an automatic transfer from another account. Angry enough to change banks if they won't immediately cease and desist.",
"title": ""
},
{
"docid": "5ffeb4e741fb823d17a81aa85e8c2ea3",
"text": "Once, back when I had a bank account, I tried to pay a large emergency dental bill with my debit card. It rejected it as it turned out the bill was less than a dollar over what I had in the account. I thought there was enough money so I tried again, 3 times. They charged me an overdraft for each attempt even though the debit never went through. This was without overdraft protection, as overdraft protection would have allowed the debit and charged me one overdraft. I don't know the details but federal regulations have changed how they do this. To me overdraft protection rejects any debit that attempts to overdraft my account and doesn't charge me with an overdraft that didn't actually occur as a result of the charge being rejected, but that's not how it works.",
"title": ""
},
{
"docid": "ccd9c4730192f7cd2f124af4769cec68",
"text": "Many small businesses are still cash and check. For example my landlord does not take credit card or online transfer. My choices are cash and check, and I prefer checks for the paper trail.",
"title": ""
},
{
"docid": "d49e29faa8189c7550be921577cb0625",
"text": "\"Square charges a 2.75% fee (which the merchant pays), so you would be losing money if you only got a 1.5% cashback bonus. I would guess that the real reason Square prohibits you from getting cash is because of Visa/MC, state and federal regulations. Visa/MC probably prohibit it for regular merchants due primarily to laws that are designed to prevent money-laundering. Certain merchants (like casinos) are allowed to give you cash advances against a credit card, but regular merchants are not allowed to do this. It is much more difficult to get Visa/MC to approve merchants to handle cash advances and they are subject to many additional regulations. Services like Western Union will let you send cash with a regular credit card, but they are classified as \"\"money transmitters\"\" and must comply with additional state and federal regulations. If Square were to allow cash advances, this would likely subject them to a bunch of additional regulations. It would cost them more to comply with these regulations and is outside their business model, so they simply prohibit it.\"",
"title": ""
},
{
"docid": "c868a5a5da49707a69a0ddc035f9c7a4",
"text": "\"This is fairly simple, actually. You should insist on payment for the rent payment you never received and stop accepting cash payments. If you want to be nice, and believe the story, allow the tenant additional time or payment in installments for the missing $750, but this is a textbook example of why it's a bad idea to transact with cash. Insist on cash equivalents that are traceable and verifiable - check, money order or cashier's check, made out to you or your company name. Also, for what it's worth, you are not out $750, unless you choose to be. Your tenant is. \"\"I put cash in your mailbox\"\" is not proof of payment, and doesn't fly as payment anywhere. If it did, I'd never pay any of my bills.\"",
"title": ""
},
{
"docid": "24e058c484d98223fa47598e0e7487ef",
"text": "\"Banks are businesses, and as such should have the right to refuse service, so they should probably be able to choose one customer over another at will. [I say \"\"should\"\" because business owners protecting themselves against litigation related to discrimination could restrict their freedom as business owners.] However, banks are businesses and if the customers are identical, both will be approved (or not) according to credit records. Does not make sense to approve one person with a given credit record and refuse someone with a similar record. Unless they barely qualify. Since no two credit histories are identical, there are surely edge cases. Finally, if a customer is a long term customer with large deposits and/or significant amounts of business with the bank, the bankers will likely be inclined to do more business.\"",
"title": ""
},
{
"docid": "36320d5d3ef4f2c73640925da28ba1b3",
"text": "Generally, credit card networks (as opposed to debit/ATM cards that may or may not have Visa/MC logos) have a rule that a merchant must accept any credit card with their logo. Visa rules for merchants in the US say it explicitly: Accept all types of valid Visa cards. Although Visa card acceptance rules may vary based on country specific requirements or local regulations, to offer the broadest possible range of payment options to cardholder customers, most merchants choose to accept all categories of Visa debit, credit, and prepaid cards.* Unfortunately the Visa site for China is in Chinese, so I can't find similar reference there. You can complain against a merchant who you think had violated Visa rules here. That said, its not a law, its a contract between the merchant processor and the Visa International organization, and merchants are known to break these rules here and there (most commonly - refusing to accept foreign cards, including in the US). Also, local laws may affect these contracts (for example, in the US it is legal to set minimum amount requirements when accepting credit cards). This only affects credit card processing, and merchants that don't accept credit cards may still accept debit cards since those work in different networks, under a different set of rules. Those who accept credit cards, are also required to accept debit cards (at least if used as credit).",
"title": ""
},
{
"docid": "7c970e9e4752025f14c6a88559265046",
"text": "\"The store owners don't know what your intentions are. All they know is they gave you good cash for a bad check. Part of this is that you're paying for the bad acts of others in the past, and these people aren't in the business of trying to understand your intentions. If you show good faith by going in and paying whatever you can, it will go a long way toward getting them to work with you on the balance. I don't know if they'd have much of a criminal case if the check you gave them was clearly marked as \"\"void\"\" and you've shown a willingness to resolve the situation. Of course you can't blame them for not wanting to accept another check from you. Good old hard cash, even if it isn't the full amount, will be a better sign of your intent to repay the debt.\"",
"title": ""
},
{
"docid": "2eec44b7b3026105c71f3ce5cda0ea3d",
"text": "\"Can an employer force a person to take a stock? From what I understand an employer can only offer stock options, doesn't that mean that the employee has to exercise that option in order for the stock to be valid? Would it be legal to fire me for refusing a bonus? Furthermore would owning stock necessarily make you an \"\"owner\"\" for the purposes of said law?\"",
"title": ""
},
{
"docid": "109ca3b612a0ed712240453010ca9c4f",
"text": "This happened to me in the mid 90's. I wanted to withdraw enough cash from my account to buy a new car and they nearly panicked. I took a bank draft instead. I discovered afterward that they can require up to a week's notice for any withdrawl.",
"title": ""
},
{
"docid": "2934083d7145bb30326fe179433f8a1e",
"text": "Credit Cards when I can. The reason if there is fraud or disputed charges (like I very much disagree with the cell phone charge) a debit card is already gone and I have to get the money back, versus a credit card where I haven't paid anybody anything.",
"title": ""
},
{
"docid": "04f81083600e6efd66a27ac1fd14ac8a",
"text": "In my experience, this choice is entirely up to the bank itself. There was a time when, given my mothers ATM card I could go to the bank and pull money for her, but the bank has since changed their rules and now they only will allow people listed on the account to access it, card or no card. If the bank is aware of who you are and knows that your friend is not you, they may be skeptical of allowing your friend to withdraw any money, or they might not care, it's at their discretion. If they do not know who either of you are, if your friend has the card and information needed, that will likely be sufficient, unless they ask for identification.",
"title": ""
}
] |
fiqa
|
da7f3e1269362f8d93cdbfb49e385ac9
|
Maintaining “Woman Owned Business” while taking on investor
|
[
{
"docid": "a7393fedd61034cf30f7d3d6cf02fc80",
"text": "To qualify as a woman owned business, a woman or group of women must own shares worth 51% of the business. If your investor was a woman, the entire 5% could come from her share of the company without affecting the 51% ownership requirement. Could you find a woman to add as an investor? If you each had your shares diluted 5%, She would be down to 48.45% ownership, and you would be down to 46.55% ownership. The only way for you to get back to a 51% female ownership situation would be to give a 2.55% ownership stake (from your share) to a wife, sister, mom, girlfriend, or any other woman who you think should benefit from this arrangement. This would still put you down at 44% (effectively taking the whole 5% from you) but by giving some of your share to someone else, it does require your partner to make some of the sacrifice, while still benefiting someone you care about (if you have someone you would like to give that benefit to). In summary, this is what it would look like:",
"title": ""
},
{
"docid": "dc758a7a45f6084cb7df180f7abe3a47",
"text": "In addition to finding another woman investor, you have an equitable option that is not unreasonable: ask your partner to buy out 3% worth of shares from you (which then gives her 54%, allowing you to then sell 5% to an investor and have it not dilute her below 51%: .54 * .95 = .513). That keeps you whole but also keeps your woman-owned-business status.",
"title": ""
}
] |
[
{
"docid": "b618bb1f3e00f405cd448a8565847ae7",
"text": "From a quick google, apparently 5% of government contracts need to go to women- or minority-owned small businesses, with another 18% going to small businesses more generally. If your company was bumped, it was b/c they were on the bubble in terms of quality/price, and inevitably the only reason were able to contract in years prior was b/c of the rules discriminating against large businesses over small businesses. The more concerning take away in all of this, is how on earth is it a struggle to hit the 5% target without any sort of affirmative action intervention. A bit of an eye-opener on the extent of systemic racism / inequality of opportunity that exists today. We really should be doing more to support minority owned businesses, and more importantly addressing the apparently inequity in opportunity in our business culture.",
"title": ""
},
{
"docid": "dc4e7c3c3438a2c44994a1d5202a3626",
"text": "If the implication is that she destroyed Yahoo, I have written in this piece that she has saved Yahoo from the inevitable painful death. Search and online advertisement business is a monopolistic business dominated by google (https://goo.gl/MTEvFp). Yahoo never had a real chance in the market to survive on its own. Marissa did an excellent job at Yahoo to stabilize the business and shift it away from Jerry Yang's misguided investments and bets (https://goo.gl/ufmYsw). I am certain that Marissa will make a great CEO for Uber, and help Uber survive the current severe head-winds the company is facing.",
"title": ""
},
{
"docid": "55b863b72fd7ac44b337eda19c5237d5",
"text": "Really? That's unfortunate. I've read stories of guys that buy companies that are basically failing, restart them so to speak with a new vision, and make a kill doing it. That's something that sounds really awesome to do. Otherwise, it's basically just like playing the stock market, but in a different version it seems like.",
"title": ""
},
{
"docid": "3123e94a06d7b8ea1adf8bc34b2bbf2d",
"text": "> Women have to be represented in the global economy or it'll cost the world a shit ton of $ later on. Demonstrate how women are NOT represented in the global economy, and how this lack of representation will cost the world money later. > There's a bunch of underbanked women around the world due to laws and Everex allows them to get microloans and/or execute deals in a micro finance fashion. Great for Everex, but I can't help but notice the practice is a bit discriminatory against men, is it not?",
"title": ""
},
{
"docid": "32a0d87b28f8b8554b0c9302b8b5f6ff",
"text": "\"No, an entrepreneur actually adds value, whereas stock ownership does not. Buying stocks is akin to gambling, except with different rules and an average positive return over time, whereas normal casino gambling always has a net negative result on average. To put it shortly: If it doesn't make a difference whether its you or John from across the corner doing the action, then its basically a speculation with \"\"investment\"\" as an alias. You're merely the purse. If you are involved in the running of the project, taking decisions, organizing, putting your time and creativity in, then you're an entrepreneur. In this case, its clear to see that different persons will have different results, so they matter as persons and not just as purses. Note that if you buy enough stock to actually have a say in the running of the company, then you're crossing the threshold there.\"",
"title": ""
},
{
"docid": "8ad8c31cf38ded9ae11e02d78b881164",
"text": "\"Thank you for the in-depth, detailed explanation; it's refreshing to see a concise, non verbose explanation on reddit. I have a couple of questions, if that's alright. Firstly, concerning mezzanine investors. Based on my understanding from Google, these people invest after a venture has been partially financed (can I use venture like that in a financial context, or does it refer specifically to venture capital?) so they would receive a smaller return, yes? Is mezzanine investing particularly profitable? It sounds like you'd need a wide portfolio. Secondly, why is dilution so important further down the road? Is it to do with valuation? Finally, at what point would a company aim to meet an IPO? Is it case specific, or is there a general understanding of the \"\"best time\"\"? Thank you so much for answering my questions.\"",
"title": ""
},
{
"docid": "2b4d51623e06f6f39d4a88f52f500ac1",
"text": "First of all, I've raised VC money before so I have experience in this area. The other commenter who said they'll only cause trouble is wrong, as a general statement. Some may, but that just means you've chosen your investors poorly. Choosing an investor is a very important decision and you should choose someone who you think will be able truly add value to your business, rather than just someone who is willing to write a check. Cultural alignment is important, and having a shared set of goals and timelines for the business is important. That said, no one here is going to be able to tell you how to structure your deal because it varies so much based on the business. In general I think it's a good idea to only take money when you need it and have a solid plan for how you're going to use it. Every time you take money you're diluting your ownership and reducing your long-term upside. Keep in mind that, as the other commenter said, if you take a deal now that means that you maintain 51% and then you take more money in the future, that 51% will be diluted further. That said with more investors in the mix you still are likely to be the largest shareholder, but again, that depends on how the deals are structured. My advice: seek out as much advice from as many sources as you can. And hire a good law firm to handle your financing transaction because their advice is invaluable as you negotiate terms. Finally, you should have more conditions than just retaining 51% ownership -- there are a lot of terms that get baked into these deals that have an impact on the long-term upside. Learn those terms. Do a bunch of googling and a bunch of reading. And ask for more advice. :)",
"title": ""
},
{
"docid": "5ea2751cc25feb9917db6f01e92e9384",
"text": "It is just marketing and market segmentation. We could all shop at WalMart, but some people prefer wider aisles and mood music so they shop at Macys. Other people are fine shopping at Target or online. Women face no different challenges. The challenges in investing depend on who you are, where you are in life and what your goals are. I think it is fine to target a certain demographic over another, but they are just trying to make a niche. I prefer to not think about worst case scenarios, and I view all financial advisors with a healthy skepticism, regardless of gender.",
"title": ""
},
{
"docid": "568be6cee03e6a396cb0454b1526ef50",
"text": "Yes, it is possible. But why would someone take full responsibility, if you're the one enjoying the profits? You'll have to pay your administrator a lot, and probably also develop a profit sharing plan to encourage success. What you're looking, essentially is to be a passive shareholder, and not participate in any management decisions at all. Depending on your location, it will pose additional disadvantages for you (for example, in the US, that would force you to structure your business as a C-Corp, vs more advantageous S-Corp).",
"title": ""
},
{
"docid": "671191388071e1fd39df1510bf71f357",
"text": "Depends on the type of company and hes smart enough to contribute particular gender roles to the success of particular companies. It is absolutely not rocket science. It is however a blanket statement to state that women run companies make him the most money.",
"title": ""
},
{
"docid": "281b87ce29ace56b33b832593ffd7a81",
"text": "Avoiding tobacco, etc is fairly standard for a fund claiming ethical investing, though it varies. The hard one on your list is loans. You might want to check out Islamic mutual funds. Charging interest is against Sharia law. For example: http://www.saturna.com/amana/index.shtml From their about page: Our Funds favor companies with low price-to-earnings multiples, strong balance sheets, and proven businesses. They follow a value-oriented approach consistent with Islamic finance principles. Generally, these principles require that investors avoid interest and investments in businesses such as liquor, pornography, gambling, and banks. The Funds avoid bonds and other conventional fixed-income securities. So, it looks like it's got your list covered. (Not a recommendation, btw. I know nothing about Amana's performance.) Edit: A little more detail of their philosophy from Amana's growth fund page: Generally, Islamic principles require that investors share in profit and loss, that they receive no usury or interest, and that they do not invest in a business that is prohibited by Islamic principles. Some of the businesses not permitted are liquor, wine, casinos, pornography, insurance, gambling, pork processing, and interest-based banks or finance associations. The Growth Fund does not make any investments that pay interest. In accordance with Islamic principles, the Fund shall not purchase conventional bonds, debentures, or other interest-paying obligations of indebtedness. Islamic principles discourage speculation, and the Fund tends to hold investments for several years.",
"title": ""
},
{
"docid": "791e2d34ab83db60f10da3263368f3fe",
"text": "Less so today, but there was a time that women played a smaller role in the household finances, letting the husband manage the family money. Women often found themselves in a frightening situation when the husband died. Still, despite those who protest to the contrary, men and women tend to think differently, how they problem solve, how they view risk. An advisor who understands these differences and listens to the client of either sex, will better serve them.",
"title": ""
},
{
"docid": "fd094d8b9bc86136ff451df39877fe4a",
"text": "There is a fundemental misunderstanding: the business and the owner are not the same entity. You said: I give the business $25,000 and take 50% of the business. No you can give the owner of the business 25K, and now he has 25K and 50% of a 50K business. That 25K sits in Mr. Smith's bank account, not Acme Widget's account. A more simple example is when you buy a car. The money goes to the car dealership, it does not get put into the car's glove box. You may be thinking of an investor in a business. He could pump $$ into the business as operating capital for a share of the business. In that case, it would be a bit unfair to get 50% of the business for a 25K. However, the owner may be interested in doing such a deal because value of the investor can add more than just $$ to the business. Having a celebrity investor might do more good for the business than the actual dollars. Another situation is that the owner might be desperate. Without a influx of cash the whole business might end. There are guidelines to business evaluation, but valuing them is not an easy thing.",
"title": ""
},
{
"docid": "4cb77f86b004873f0c5ce8338acc1916",
"text": "\"> she makes some very good points to the whole \"\"Startup\"\" mentality. The 'fight' here is for responsibility. Ahoyhere is challenging people to be responsible for themselves, and to 'take the blame' if they have nothing to show for it when or if their vc startup employer goes bust (or, gets wildly successful and they don't share in the success.) People don't want that. They want to tell themselves they're justified for being bitter after being screwed. They want to know that 'hard work always pays off', which is obviously false.\"",
"title": ""
},
{
"docid": "1d1b257f29aaef270074323d88d51d45",
"text": "The good debt/bad debt paradigm only applies if you are considering this as a pure investment situation and not factoring in: A house is something you live in and a car is something you use for transportation. These are not substitutes for each other! While you can live in your car in a pinch, you can't take your house to the shops. Looking at the car, I will simplify it to 3 options: You can now make a list of pros and cons for each one and decide the value you place on each of them. E.g. public transport will add 5h travel time per week @ $X per hour (how much you value your leisure time), an expensive car will make me feel good and I value that at $Y. For each option, put all the benefits together - this is the value of that option to you. Then put all of the costs together - this is what the option costs you. Then make a decision on which is the best value for you. Once you have decided which option is best for you then you can consider how you will fund it.",
"title": ""
}
] |
fiqa
|
286ef76b2b78c7530b6c52a830f073d2
|
How to safely earn interest on business profits (UK)
|
[
{
"docid": "c7f69a4ac2f6301ad1db8d23d13323d7",
"text": "Deposit it in a business savings account. The following below show you some options you can choose from. Next you can invest it in the market i.e. shares, bonds etc. If you have a more risky side, can go for peer to peer lending. If you are feeling really lucky and want to invest in the long term, then buy a property as a buy-to-let landlord. There are loads of options, you only need to explore.",
"title": ""
},
{
"docid": "07f0be93c1c32693e76847b6527391cf",
"text": "I found some UK personal accounts offer up to 3% interest (no names here, but it is well known bank with red logo). You can take out directors loan from your company, put the cash into that personal account and earn interest. Just don't forget to return this loan before end of financial year, so this interest does not become your dividends.",
"title": ""
}
] |
[
{
"docid": "eced5a5b1949a6d5aa8cb7ff9a8b1692",
"text": "What you're getting at is the same as investing with leverage. Usually this comes in the form in a margin account, which an investor uses to borrow money at a low interest rate, invest the money, and (hopefully!) beat the interest rate. is this approach unwise? That completely depends on how your investments perform and how high your loan's interest rate is. The higher your loan's interest rate, the more risky your investments will have to be in order to beat the interest rate. If you can get a return which beats the interest rates of your loan then congratulations! You have come out ahead and made a profit. If you can keep it up you should make the minimum payment on your loan to maximize the amount of capital you can invest. If not, then it would be better to just use your extra cash to pay down the loan. [are] there really are investments (aside from stocks and such) that I can try to use to my advantage? With interest rates as low as they are right now (at least in the US) you'll probably be hard-pressed to find a savings account or CD that will return a higher interest rate than your loan's. If you're nervous about the risk associated with investing in stocks and bonds (as is healthy!), then know that they come in a wide spectrum of risk. It's up to you to evaluate how much risk you're willing to take on to achieve a higher return.",
"title": ""
},
{
"docid": "1611faea12bf19b2154ee123778d95d2",
"text": "\"HSBC, Hang Seng, and other HK banks had a series of special savings account offers when I lived in HK a few years ago. Some could be linked to the performance of your favorite stock or country's stock index. Interest rates were higher back then, around 6% one year. What they were effectively doing is taking the interest you would have earned and used it to place a bet on the stock or index in question. Technically, one way this can be done, for instance, is with call options and zero coupon bonds or notes. But there was nothing to strategize with once the account was set up, so the investor did not need to know how it worked behind the scenes... Looking at the deposit plus offering in particular, this one looks a little more dangerous than what I describe. See, now we are in an economy of low almost zero interest rates. So to boost the offered rate the bank is offering you an account where you guarantee the AUD/HKD rate for the bank in exchange for some extra interest. Effectively they sell AUD options (or want to cover their own AUD exposures) and you get some of that as extra interest. Problem is, if the AUD declines, then you lose money because the savings and interest will be converted to AUD at a contractual rate that you are agreeing to now when you take the deposit plus account. This risk of loss is also mentioned in the fine print. I wouldn't recommend this especially if the risks are not clear. If you read the fine print, you may determine you are better off with a multicurrency account, where you can change your HK$ into any currency you like and earn interest in that currency. None of these were \"\"leveraged\"\" forex accounts where you can bet on tiny fluctuations in currencies. Tiny being like 1% or 2% moves. Generally you should beware anything offering 50:1 or more leverage as a way to possibly lose all of your money quickly. Since you mentioned being a US citizen, you should learn about IRS form TD F 90-22.1 (which must be filed yearly if you have over $10,000 in foreign accounts) and google a little about the \"\"foreign account tax compliance act\"\", which shows a shift of the government towards more strict oversight of foreign accounts.\"",
"title": ""
},
{
"docid": "21085de52a29bd061a17dba0d67f4927",
"text": "\"Basically, you either borrow money, or get other people to invest in your business by buying stock or something analogous. Sometimes you can get people to \"\"park\"\" money with you. For example, many people deposit money in a bank checking account. They don't get any interest or other profit from this, they just do it because the bank is a convenient place to store their money. The bank then loans some percentage of this money out and keeps the interest. I don't doubt that people have come up with more clever ways to use other people's money. Borrowing money for an investment or business venture is risky because if you lose money, you may be unable to pay it back. On the other hand, investors expect a share of the profit, not just a fixed interest rate.\"",
"title": ""
},
{
"docid": "dd8e5ca4888ff871a3b76ce481bb3bd5",
"text": "\"First of all, bear in mind that there's no such thing as a risk-free investment. If you keep your money in the bank, you'll struggle to get a return that keeps up with inflation. The same is true for other \"\"safe\"\" investments like government bonds. Gold and silver are essentially completely speculative investments; over the years their price tends to vary quite wildly, so unless you really understand how those markets work you should steer well clear. They're certainly not low risk. Repeatedly buying a property to sell in a couple of years time is almost certainly a bad idea; you'll end up paying substantial transaction fees each time that would wipe out a lot of the possible profit, and of course there's always the risk that prices would go down not up. Buying a property to keep - and preferably live in - might be a decent option once you have a good deposit saved up. It's very hard to say where prices will go in future, on the one hand London prices are very high by historical standards, but on the other hand supply is likely to remain severely constrained for years to come. I tend to think of a house as something that I need one of for the rest of my life, and so in one sense not owning a house to live in is a gamble that house prices and rents won't go up substantially. If you own a house, you're insulated from changes in rent etc and even if prices crash at least you still have somewhere to live. However that argument only works really well if you expect to keep living in the same area under most circumstances - house prices might crash in your area but not elsewhere.\"",
"title": ""
},
{
"docid": "b2df7330af4b3b2e7c527eca5d177db4",
"text": "\"As to where the interest comes from: The same place it comes from in other kinds of savings accounts. The bank takes the money you deposit and invests it elsewhere, traditionally by lending it out to others (hence the concept of a \"\"savings and loan\"\" bank). They make a profit as long as the interest they give for \"\"borrowing\"\" from you, plus the cost of administering the savings accounts and loans, is less than the interest they charge for lending to others. No, they don't have to pay you interest -- but if they didn't, you'd be likely to deposit your funds at another bank which did. Their ideal goal is to pay as little as possible without losing depositors, while charging as much as possible without losing borrowers. (yeah, I know, typo corrected) Why do they get higher interest rate than they pay you? Mostly because your deposits and interest are essentially guaranteed, whereas the folks they're lending to may be late paying or default on those loans. As with any kind of investment, higher return requires more work and/or higher risk, plus (ususally) larger reserves so you can afford to ride out any losses that do occur.\"",
"title": ""
},
{
"docid": "4cde17aa6b9aefc3d4e12718987fbf44",
"text": "\"This kind of investment is called \"\"sweat equity\"\". It is sometimes taken into account by lenders and other investors. Such investors look at the alleged value of the input labor with a very skeptical eye, but they often appreciate that the entrepreneur has \"\"skin in the game\"\". The sort of analysis described by the original poster is useful for estimating \"\"economic profit\"\" -- how much better off was the entrepreneur than if he had done something else with his time. But this sort of analysis is not applicable for tax purposes for most small businesses in the United States. It is usually not in the entrepreneur's interest to use this method of accounting for tax purposes, for three reasons: It requires setting up the business in such a way that it can pay him wages or salaries for his time. The business might not have enough cash resources to do so. Furthermore, setting up the business in this way requires legal and accounting expertise, which is expensive. If the entrepreneur does set up the business like this, the wages and salaries will be subject to tax. Wage and salary tax rates are often much higher than capital gains tax rates, especially when one considers taxes like Social Security taxes, Medicare taxes, and Business & Occupation taxes. If the entrepreneur does set up the business like this, the taxes on the wages and salaries would be due long before the hoped-for sale of the company. The sale of the company might never happen. This results in a time-value-of-money penalty, an optionality penalty, and a risk penalty.\"",
"title": ""
},
{
"docid": "a106c0e9ebdf39b357e017209b2c4b00",
"text": "Compound interest means that the interest in each time period is calculated taking into account previously earned interest and not only the initial sum. Thus, if you had $1000 and invested it so that you'd earn 5% each year, than if you would withdraw the earnings each year you in 30 years you would earn 0.05*30*1000 = $1500, so summarily you'd have $2500, or 150% profit. However, if you left all the money to earn interest - including the interest money - then at the end of 30 years you'd have $4321 - or 330% profit. This is why compound interest is so important - the interest on the earned interest makes money grow significantly faster. On the other hand, the same happens if you owe money - the interest on the money owed is added to the initial sum and so the whole sum owed grows quicker. Compound interest is also important when calculating interest by time periods. For example, if you are told the loan accumulates 1% interest monthly, you may think it's 12% yearly. However, it is not so, since monthly interest is compounded - i.e., in February the addition not only February's 1% but also 1% on 1% from January, etc. - the real interest is 12.68% yearly. Thus, it is always useful to know how interest is compounded - both for loans and investments - daily, monthly, yearly, etc.",
"title": ""
},
{
"docid": "5625496dedd8862d5e88416d729fc2de",
"text": "\"First off, the answer to your question is something EVERYONE would like to know. There are fund managers at Fidelity who will a pay $100 million fee to someone who can tell them a \"\"safe\"\" way to earn interest. The first thing to decide, is do you want to save money, or invest money. If you just want to save your money, you can keep it in cash, certificates of deposit or gold. Each has its advantages and disadvantages. For example, gold tends to hold its value over time and will always have value. Even if Russia invades Switzerland and the Swiss Franc becomes worthless, your gold will still be useful and spendable. As Alan Greenspan famously wrote long ago, \"\"Gold is always accepted.\"\" If you want to invest money and make it grow, yet still have the money \"\"fluent\"\" which I assume means liquid, your main option is a major equity, since those can be readily bought and sold. I know in your question you are reluctant to put your money at the \"\"mercy\"\" of one stock, but the criteria you have listed match up with an equity investment, so if you want to meet your goals, you are going to have to come to terms with your fears and buy a stock. Find a good blue chip stock that is in an industry with positive prospects. Stay away from stuff that is sexy or hyped. Focus on just one stock--that way you can research it to death. The better you understand what you are buying, the greater the chance of success. Zurich Financial Services is a very solid company right now in a nice, boring, highly profitable business. Might fit your needs perfectly. They were founded in 1872, one of the safest equities you will find. Nestle is another option. Roche is another. If you want something a little more risky consider Georg Fischer. Anyway, what I can tell you, is that your goals match up with a blue chip equity as the logical type of investment. Note on Diversification Many financial advisors will advise you to \"\"diversify\"\", for example, by investing in many stocks instead of just one, or even by buying funds that are invested in hundreds of stocks, or indexes that are invested in the whole market. I disagree with this philosophy. Would you go into a casino and divide your money, putting a small portion on each game? No, it is a bad idea because most of the games have poor returns. Yet, that is exactly what you do when you diversify. It is a false sense of safety. The proper thing to do is exactly what you would do if forced to bet in casino: find the game with the best return, get as good as you can at that game, and play just that one game. That is the proper and smart thing to do.\"",
"title": ""
},
{
"docid": "5cf21e874ace52095a9263cd6b1e72b3",
"text": "If you are planning this as a tax avoidance scheme, well it is not. The gains will be taxable in your hands and not in the Banks hands. Banks simply don't cash out the stock at the same price, there will be quite a bit of both Lawyers and others ... so in the end you will end up paying more. The link indicates that one would pay back the loan via one's own earnings. So if you have a stock worth USD 100, you can pledge this to a Bank and get a max loan of USD 50 [there are regulations that govern the max you can get against 100]. You want to buy something worth USD 50. Option1: Sell half the stock, get USD 50, pay the captial gains tax on USD 50. Option2: Pledge the USD 100 stock to bank, get a loan of USD 50. As you have not sold anything, there is no tax. Over a period pay the USD 50 loan via your own earnings. A high valued customer may be able to get away with a very low rate of intrest and very long repayment period. The tax implication to your legal hier would be from the time the stock come to his/her hands to the time she sold. So if the price increase to 150 by the time Mark dies, and its sold at 160 later, the gain is only of USD 10. So rather than paying 30% or whatever the applicable tax rate, it would be wise to pay an interest of few percentages.",
"title": ""
},
{
"docid": "dd5dca227bea699fa74a25b5d0cdc61d",
"text": "This can be best explained with an example. Bob thinks the price of a stock that Alice has is going to go down by the end of the week, so he borrows a share at $25 from Alice. The current price of the shares are $25 per share. Bob immediately sells the shares to Charlie for $25, it is fair, it is the current market price. A week goes by, and the price does fall to $20. Bob buys a share from David at $20. This is fair, it is the current market value. Then Bob gives the share back to Alice to settle what he borrowed from her, one share. Now, in reality, there is interest charged be Alice on the borrowed value, but to keep it simple, we'll say she was a friend and it was a zero interest loan. So then Bob was able to sell something he didn't own for $25 and return it spending $20 to buy it, settling his loan and making $5 in the transaction. It is the selling to Charlie and buying from David (or even Charlie later, if he decided to dump the shares), without having invested any of your own money that earns the profit.",
"title": ""
},
{
"docid": "f983c383262bb5e484be57c6f264612e",
"text": "In general, the higher the return (such as interest), the higher the risk. If there were a high-return no-risk investment, enough people would buy it to drive the price up and make it a low-return no-risk investment. Interest rates are low now, but so is inflation. They generally go up and down together. So, as a low risk (almost no-risk) investment, the savings account is not at all useless. There are relatively safe investments that will get a better return, but they will have a little more risk. One common way to spread the risk is to diversify. For example, put some of your money in a savings account, some in a bond mutual fund, and some in a stock index fund. A stock index fund such as SPY has the benefit of very low overhead, in addition to spreading the risk among 500 large companies. Mutual funds with a purchase or sale fee, or with a higher management fee do NOT perform any better, on average, and should generally be avoided. If you put a little money in different places regularly, you'll be fairly safe and are likely get a better return. (If you trade back and forth frequently, trying to outguess the market, you're likely to be worse off than the savings account.)",
"title": ""
},
{
"docid": "9369686ff9624d06b4a4d5eeb8a3d237",
"text": "When you pay interest on a loan used to fund a legitimate investment or business activity, that interest becomes an expense that you can deduct against related income. For example, if you borrowed $10k to buy stocks, you could deduct the interest on that $10k loan from investment gains. In your case, you are borrowing money to invest in the stock of your company. You would be able to deduct the interest expense against investment gain (like selling stock or receiving dividends), but not from any income from the business. (See this link for more information.) You do not have to pay taxes on the interest paid to your father; that is an expense, not income. However, your father has to pay taxes on that interest, because that is income for him.",
"title": ""
},
{
"docid": "39a433a84ddadd612b78e80c78d4808f",
"text": "\"The UK has Islamic banks. I don't know whether Germany has the same or not (with a quick search I can find articles stating intentions to establish one, but not the results). Even if there's none in Germany, I assume that with some difficulty you could use banks elsewhere in the EU and even non-Euro-denominated. I can't recommend a specific provider or product (never used them and probably wouldn't offer recommendations on this site anyway), but they advertise savings accounts. I've found one using a web search that offers an \"\"expected profit rate\"\" of 1.9% for a 12 month fix, which is roughly comparable with \"\"typical\"\" cash savings products in pounds sterling. Typical to me I mean, not to you ;-) Naturally you'd want to look into the risk as well. Their definition of Halal might not precisely match yours, but I'm sure you can satisfy yourself by looking into the details. I've noticed for example a statement that the bank doesn't invest your money in tobacco or alcohol, which you don't give as a requirement but I'm going to guess wouldn't object to!\"",
"title": ""
},
{
"docid": "8e6b3ccc88372faf54375ebaed55528a",
"text": "A 15% discount is a 17.6% return. (100/85 = 1.176). For a holding period that's an average 15.5 days, a half month. It would be silly to compound this over a year as the numbers are limited. The safest way to do this is to sell the day you are permitted. In effect, you are betting, 12 times a year, that the stock won't drop 15% in 3 days. You can pull data going back decades, or as long as your company has been public, and run a spreadsheet to see how many times, if at all, the stock has seen this kind of volatility over 3 day periods. Even for volatile stocks, a 15% move is pretty large, you're likely to find your stock doing this less than once per year. It's also safest to not accumulate too many shares of your company for multiple reasons, having to do with risk spreading, diversification, etc. 2 additional points - the Brexit just caused the S&P to drop 4% over the last 3 days trading. This was a major world event, but, on average we are down 4%. One would have to be very unlucky to have their stock drop 15% over the specific 3 days we are discussing. The dollars at risk are minimal. Say you make $120K/yr. $10K/month. 15% of this is $1500 and you are buying $1765 worth of stock. The gains, on average are expected to be $265/mo. Doesn't seem like too much, but it's $3180 over a years' time. $3180 in profit for a maximum $1500 at risk at any month's cycle.",
"title": ""
},
{
"docid": "990d7cea7a0d872a8b50cca148e7d234",
"text": "\"This is a common and good game-plan to learn valuable life skills and build a supplemental income. Eventually, it could become a primary income, and your strategic risk is overall relatively low. If you are diligent and patient, you are likely to succeed, but at a rate that is so slow that the primary beneficiaries of your efforts may be your children and their children. Which is good! It is a bad gameplan for building an \"\"empire.\"\" Why? Because you are not the first person in your town with this idea. Probably not even the first person on the block. And among those people, some will be willing to take far more extravagant risks. Some will be better capitalized to begin with. Some will have institutional history with the market along with all the access and insider information that comes with it. As far as we know, you have none of that. Any market condition that yields a profit for you in this space, will yield a larger one for them. In a downturn, they will be able to absorb larger losses than you. So, if your approach is to build an empire, you need to take on a considerably riskier approach, engage with the market in a more direct and time-consuming way, and be prepared to deal with the consequences if those risks play out the wrong way.\"",
"title": ""
}
] |
fiqa
|
c42a1238739516671c611801bd96eebd
|
Income tax on my online drop-shipping business (India)
|
[
{
"docid": "eb51e3b740a853d3e34205947ba2ef7a",
"text": "Please consult a tax advisor. You may be voilating the FEMA [Foreign Exchange Management Act] and can land into trouble. Further what you are doing can land up into various other acts as illegal including AML. Further if there is income generated by Indian citizen in India, he is still liable to pay tax, irrespective of whether you get the funds back into India. Edit: AML is Anti Money Laundering. Your transaction is sure to raise AML triggers as it looks like converting Black Money to White in round about way. Once the triggers are raised, RBI division will investigate further to verify what you are doing. If you are able to prove that this is a valid transaction, you would be OK on AML front. How will Income Tax Know? - If they don't know does not mean you are not liable for tax. - Any suspicious transactions would get investigated and sooner or later Income Tax would know about it and can cause a serious problem. - It is irrelevant where you have kept the money, if you have earned something, its taxable. For it not to be taxable you need to conduct this business differently. Please consult a tax adviser who will advice you on the tax-ability of this type of transaction.",
"title": ""
},
{
"docid": "fc871e146ba6605bcf6b642c38b6839a",
"text": "I find that there are two violation of law , prima facie , if someone earns money by depositing in the online account and then not reporting it ( including in his total income for the year ) and not bringing in India. Income Tax Act violation 1. It is simply comcealment liable for penalty & prosecution under I.T.Act. 2. You should know that anyone who is resident of India as per income Tax Act and having taxable income ( gross total income exceeding exemption limit) will have to fill up the column in his/her income tax return whether Previously these column were not in the Income Tax Return. So , now anyone who is liable to file return of Income can be tried for false return if he has hiddne assets aborad. 2. FEMA violation RBI permits remittance under Liberalized Remittance Scheme. However this scheme can not be used for certain purpose . It is important to examine whether RBI prohibits use of remittance for any entity or business you have described. You can read following FAQ on RBI site Q. 30. What are the prohibited items under the Scheme? Ans. The remittance facility under the Scheme is not available for the following: i) Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000; ii) Remittance from India for margins or margin calls to overseas exchanges / overseas counter-party; iii) Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market; iv) Remittance for trading in foreign exchange abroad; v) Remittance by a resident individual for setting up a company abroad; vi) Remittances directly or indirectly to Bhutan, Nepal, Mauritius and Pakistan; vii) Remittances directly or indirectly to countries identified by the Financial Action Task Force (FATF) as “non co-operative countries and territories”, from time to time; and viii) Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks. You will have to examine , if the remittance was NOT done for purpose not allowed by RBI under LRS . If you clear this , you can say there is no violation and your violation is restricted to I.T.Act only.",
"title": ""
}
] |
[
{
"docid": "4972d02c5cb0088e316851b3f20b2dee",
"text": "Tax is due in India as you offered services from India. So whether the International Client pays via Credit Card, Bank Transfer, Paypal or any other means is not relevant. Even if the International Client pays you in a account outside India; it is still taxable in India.",
"title": ""
},
{
"docid": "f9589a3228d51c680546c138e8a52d9b",
"text": "Do I pay tax to the US and then also pay it in India for my income, or does my American partner, who holds 15% of the monthly income, pay tax in the US for his income? Of course you do, what kind of question is this? You have income earned in the US by a US entity, and the entity is taxed. Since LLC is a disregarded entity - the tax shifts to you personally. You should file form 1040NR. You should also talk to a tax professional who's proficient in the Indo-US tax treaty, since it may affect your situation.",
"title": ""
},
{
"docid": "f35f977f4958bf5092e2f8145f753a2f",
"text": "Australian Goods and Services Tax is charged on the sale amount. Whatever internal accounting you do before billing the customer is of no interest to the Australian Tax Office.",
"title": ""
},
{
"docid": "076e0d5e64e17e91c7161a310b3c440e",
"text": "\"AFAIK, there are two kinds of taxes your web freelancing income may be subject to in Quebec: On the income taxes: The net income you realize from your web freelancing activities would be considered taxable income. Assuming you are not operating as an incorporated business, you would need to declare the freelancing income on both your federal and provincial tax returns. You should be able to deduct certain costs related to your business – for instance, if you paid for software, hosting, domain name registration, etc. That is, only the profit from your business would be subject to income tax. With income and expenses arising from self-employment, you may want to use a professional to file your taxes. On the sales taxes: You may also need to charge federal GST and provincial QST (Quebec Sales Tax) on your services: You must enroll and charge GST and QST once you exceed the \"\"small supplier\"\" revenue threshold of $30,000 measured over four consecutive quarters. (You can still choose to enroll for GST/QST before you reach that amount, but over that amount enrollment becomes mandatory. Some businesses enroll before the threshold is reached so they can claim input tax credits for tax paid on expenses, but then there's more paperwork – one reason to perhaps avoid enrolling until necessary.) In Quebec, the Ministère du Revenu du Québec administers both GST (on behalf of the federal government) as well as provincial QST. Be sure to also check out their informative booklet, Should I Register with Revenu Quebec? (PDF). See also General Information Concerning the QST and the GST/HST (PDF).\"",
"title": ""
},
{
"docid": "60833091fb5f878a8610f7b5990ddb4e",
"text": "This is how a consulting engagement in India works. If you are registered for Service Tax and have a service tax number, no tax is deducted at source and you have to pay 12.36% to service tax department during filing (once a quarter). If you do not have Service tax number i.e. not registered for service tax, the company is liable to deduct 10% at source and give the same to Income Tax Dept. and give you a Form-16 at the end of the financial year. If you fall in 10% tax bracket, no further tax liability, if you are in 30%, 20% more needs to be paid to Income Tax Dept.(calculate for 20% tax bracket). The tax slabs given above are fine. If you fail to pay the remainder tax (if applicable) Income Tax Dept. will send you a demand notice, politely asking you to pay at the end of the FY. I would suggest you talk to a CA, as there are implications of advance tax (on your consulting income) to be paid once a quarter.",
"title": ""
},
{
"docid": "fb5105cef9bf56d1edb545ff9441e282",
"text": "The data provided in your question is irrelevant. The data that you provided in the comments (that you're physically present in the US while doing the work) is the only relevant information needed to answer your question. You will need to pay taxes in the US for the earnings. The company invoicing the US client will also need to pay taxes in the US for its earnings from these invoices. You can transfer between bank accounts and deposit whatever you want anywhere you want, no-one cares (with respect to the US taxes, check with Indian tax accountant about Indian requirements).",
"title": ""
},
{
"docid": "ec3d14f8d9e15d3aab6f98d3a9cf46fd",
"text": "If you are tax-resident in the US, then you must report income from sources within and without the United States. Your foreign income generally must be reported to the IRS. You will generally be eligible for a credit for foreign income taxes paid, via Form 1116. The question of the stock transfer is more complicated, but revolves around the beneficial owner. If the stocks are yours but held by your brother, it is possible that you are the beneficial owner and you will have to report any income. There is no tax for bringing the money into the US. As a US tax resident, you are already subject to income tax on the gain from the sale in India. However, if the investment is held by a separate entity in India, which is not a US domestic entity or tax resident, then there is a separate analysis. Paying a dividend to you of the sale proceeds (or part of the proceeds) would be taxable. Your sale of the entity containing the investments would be taxable. There are look-through provisions if the entity is insufficiently foreign (de facto US, such as a Subpart-F CFC). There are ways to structure that transaction that are not taxable, such as making it a bona fide loan (which is enforceable and you must pay back on reasonable terms). But if you are holding property directly, not through a foreign separate entity, then the sale triggers US tax; the transfer into the US is not meaningful for your taxes, except for reporting foreign accounts. Please review Publication 519 for general information on taxation of resident aliens.",
"title": ""
},
{
"docid": "746c2df9ea5a586fc65a71a374c66c25",
"text": "I have some more inputs to investigate: India has dual tax avoidance treaty signed with european countries so that NRIs dont pay tax in both countries. Please check if India has some agreement with Swiss Also for freelance job that is delivered from India, u need to make sure where you have to pay taxes as you are still in India so the term NRI will not hold good here. Also, if Swiss company is paying tax there, and you are a freelancer from India(resident in india) how to tax filing /rate etc has to be investigated. Also, can you apply for tax back from swiss( a portion of tax paid can be refunded eg: in Germany) but I dont know if this is true for Freelancers and also for people out side SWISS. Bip",
"title": ""
},
{
"docid": "e11ac463150afa914242e4ad3e1b1a96",
"text": "It's income. It's almost certainly subject to income tax. As miscellaneous income, if nothing else. (That's what hobby income usually falls under.) If you kept careful records of the cost of developing the app, you might be able to offset those against the income... again, as with hobby income.",
"title": ""
},
{
"docid": "b0e89d948d1a3eeeb4332ed2e5712a2a",
"text": "Tax Deducted at source is applicable to Employee / Employer [contract employee] relations ... it was also made applicable for cases where an Indian company pays for software products [like MS Word etc] as the product is not sold, but is licensed and is treated as Royalty [unlike sale of a consumer product, that you have, say car] ... Hence it depends on how your contract is worded with your India clients, best is have it as a service agreement. Although services are also taxed, however your contract should clearly specify that any tax in India would be borne by your Indian Client ... Cross Country taxation is an advanced area, you will not find good advice free :)",
"title": ""
},
{
"docid": "6c31cc642447b46b462ffbae99e40bcf",
"text": "\"As you are earning an income by working in India, you are required to pay tax in India. If you contract is of freelance, then the income earned by you has to be self declared and taxes paid accordingly. There are some expenses one can claim, a CA should be able to guide you. Not sure why the Swiss comapny is paying taxes?. Are they depositing this with Income Tax, India, do they have a TAN Number. If yes, then you don't need to pay tax. But you need to get a statement from your company showing the tax paid on behalf of you. You can also verify the tax paid on your behalf via \"\"http://incometaxindia.gov.in/26ASTaxCreditStatement.asp\"\" you cna register. Alternatively if you have a Bank Account in India with a PAN card on their records, most Banks provide a link to directly see\"",
"title": ""
},
{
"docid": "771a2ab38927b91dce0db9536c7a3ac1",
"text": "If the items you sold are items you previously bought for a higher price, the money you get selling them is not income, as you are taking a loss. However, you cannot deduct such losses. If you sell anything for more than what you paid for, the difference is a gain and is taxable. See this IRS web site for the explanation: https://www.irs.gov/businesses/small-businesses-self-employed/tax-tips-for-online-auction-sellers",
"title": ""
},
{
"docid": "a7f097e49cfb5f4c989e7b35ffce3403",
"text": "From what I understand this is what you can do : You need to raise an invoice to your brother's company in USA Your brother makes a payment into your Indian company's bank account using wire transfer straight into a bank account in your company's name. Your brother wont have to pay taxes on the money that he pays you against an invoice as it would be an expense and would not be considered as profit for tax purposes. Once you have the money you can then file your income tax returns after deducting your own expenses etc in India. I hope this helps.",
"title": ""
},
{
"docid": "90605b0a6f67febcdf781d210077a575",
"text": "I'm not sure I am fully understanding the nuance of your question, but based on your answer in the comments you and your business are not separate legal entities. So your income is the full $70K, there is no distinct business to have income. If you clarify your question to include why you want to know this I might be able to give a more meaningful answer for your situation.",
"title": ""
},
{
"docid": "e65985c3ab463e6ad723656aa8e16f82",
"text": "\"You can file an LLC yourself in most states, although it might be helpful to use a service if you're not sure what to do to ensure it is correct. I filed my LLC here in Colorado online with the Secretary of State's office, which provided the fill-in-the-blank forms and made it easy. In the U.S., taxation of an LLC is \"\"pass-through\"\", meaning the LLC itself does not have any tax liability. Taxes are based on what you take out of the LLC as distributions to yourself, so you pay personal income tax on that. There are many good books on how to form and then operate an LLC, and I personally like NoLo (link to their web site) because they cater to novices. As for hiring people in India, I can't speak to that, so hopefully someone else can answer that specific topic. As for what you need to know about how to run it, I'll refer back to the NoLo books and web site.\"",
"title": ""
}
] |
fiqa
|
3f2de55e799be8466ee5be7d92377566
|
How to find a business consultant that would ensure that all your business activities are legal and compliant with all regulations?
|
[
{
"docid": "29392f0f37fbabadd75e643e01fc97a7",
"text": "\"Getting a specific service recommendation is off-topic, but the question of what type of professional you need seems on-topic to me. You may be looking for more than one professional in this case, but you could try these to start your search: Different people do things differently, but I think it would be pretty common to have a relationship (i.e. contract, retainer agreement, at least have met the person in case you have an \"\"emergency\"\") with a business law attorney and either a CPA or tax attorney. You may try not to use them too much to keep costs down, but you don't want to be searching for one after you have an issue. You want to know who you're going to call and may establish at least a basis working relationship.\"",
"title": ""
}
] |
[
{
"docid": "ccda3c10d1457e510a53677e221bec9c",
"text": "\"Small businesses are often governed by local regulations and state law. In a low liability small quantity arena, you should be able to get away with a DBA (doing business as) arrangement, such as DBA \"\"Jay's Gem's\"\". A small business license may come with a state Tax ID and satisfy your supplier, but a Federal EIN can be obtained from the IRS, and may be necessary to apply for the business license. It wouldn't hurt to talk to the local chamber of commerce or state small business agencies if you have questions about local requirements.\"",
"title": ""
},
{
"docid": "3c4e68fdc0aab40d75d449b9f4deae58",
"text": "Thanks for your input. > Are you talking about domicile? Nope, **domestication**. See #2 [here]. I've seen that term on a few places on the web. I am a single-member LLC. I think I'll probably get a biz attorney. Do you think it matters whether the attorney is within the state I currently reside as opposed to the one I'm moving to?",
"title": ""
},
{
"docid": "02d6fe265b21b178c7a4d1f74b287c42",
"text": "For sure you should get a lawyer on this one, but it would seem to me that the simplest path forward would be to convert the business to a partnership where both spouses are owners, and to write a clause into the partnership agreement stipulating what happens upon death of a partner. Such an approach really should be done with a lawyer to make sure that it's all legally sound and will stand up in court if needed.",
"title": ""
},
{
"docid": "eb389b09b7bb394c4430165a6c427d6f",
"text": "Now today all small and big business depends on the internet. So businessman should be those business lists in the multiple online directories. In the USA maximum user buy product through the web. If you have a business, then you can list your business globaltradeconnect's Business directory online. Where you can get more customer, product information, business location and direction. It's awesome to list a business on other online website like Google, Facebook, Bing.",
"title": ""
},
{
"docid": "90a80872e5049f98aaa0e251e2320590",
"text": "Some governments offer business information search for corporations in their jurisdiction. The search results may show the director information for the company. If this information is made publicly available, keep in mind there are websites that make money from indexing publicly available information to show in Google search results. I don't mean to scare you as this is a likely a slim possibility. It really depends on the privacy practices in place at the jurisdiction you're in. But do keep in mind if you're planning on doing business on the side for a few years policies may change. I would call Service Ontario (or whichever province you're incorporating in) or Corporations Canada if federally incorporating and ask them if they offer a business search service and exactly what information they make public. You might be able to reach a Privacy Officer and find out what exactly their policy is.",
"title": ""
},
{
"docid": "57bf2196d8e9d5f568780851408f9248",
"text": "Here are a few points to consider: Taxes: As a consultant, you will be responsible for the employer portion of the Social Security and Medicare taxes, and you might have to pay for state unemployment insurance and state disability insurance, as well. Office expenses: As a consultant, you may be required to buy your own laptop, pay for your own software licenses and buy other office-related supplies. For higher-end services, you may be setting up a complete office and even hire your own secretary and other support staff. Benefits: As a consultant, you will be responsible for your own health insurance, retirement plan and other benefits that an employer would ordinarily provide. Education: Your employer will likely pay for books and magazine subscriptions and send you to seminars, in order to keep your skills current; your client won't. Liability: Consultants face certain liabilities that employees don't, and have to factor the cost of insuring against those risks into their rate. Let's say you're a software developer, and your faulty code causes a nuclear plant's reactor core to overheat and melt down. As an employee, you'll get fired. As a consultant, you will get sued. Even consultants in low-risk fields can easily shell out thousands of dollars per year for a basic general liability policy. Sales & marketing: Don't forget that when your contract ends, you will have expenses associated with finding your next client, including the opportunity cost of not getting paid for your services during that time. All these factors contribute to your overhead, which you have to roll into your consulting rate. You should also add a margin of profit -- after all, as you're in business for yourself, you should be compensated for taking this entrepreneurial risk. If you're looking for a quick over-the-thumb rule, you can figure that your equivalent consulting rate should be about twice what you would be paid hourly as an employee. Assuming you work 2,000 hours a year, if you would receive a $100,000 salary, your hourly rate should be $100. Of course, this is only a very rough guideline. Ultimately, your rate will mostly be influenced by how established you are and how much your services are in demand.",
"title": ""
},
{
"docid": "e514d818bc9ca8b9d5b4054e4321ba20",
"text": "If you or she can't answer this or don't have access to someone who can, then I fear for the business. That said, it really depends on where you are and how your business is incirporared, but I can't think of any law prohibiting it where I am. I was an employee of my dad's business as soon as I was legal.",
"title": ""
},
{
"docid": "43544cf49d9103aa148b03b6f70b5ce4",
"text": "Ask your colleagues! I know that sounds obvious, but just go to where people who do your sort of business hang out (or better, find some venture capital firms and ask their portfolio companies). It's not something people would keep secret from you...",
"title": ""
},
{
"docid": "f699e35592c8a96832b4c19cc1039512",
"text": "NL7 is most likely right. With the rise of regulatory burden some financial institutions are refusing to do business for which they are at risk of not being compliant (because of complexity) or where being compliant is to onerous. Would suggest you have a look at Good luck",
"title": ""
},
{
"docid": "b3fbc5ebd730a840accaf7428f4858a8",
"text": "For this reason, whilst preparing to hire an consultant to preserve and assist your application and additives it's far crucial to realize the one of a kind industry certification and in reality confirm that the computer professional has them. You can approach the essential corporation that is committed to provide tremendous Business Network Support in Oklahoma. Their professionals are properly skilled and certified professionals. If you're inclined to hire certified specialists that could provide effective it maintenance services, then you are on the right place in your answer.",
"title": ""
},
{
"docid": "02652a2907593af155500446726db5b3",
"text": "Usually your best bet for this sort of thing is to look for referrals from people you trust. If you have a lawyer or other trusted advisor, ask them.",
"title": ""
},
{
"docid": "9f5cef0c013e144b150e7ae77cdb5141",
"text": "Looks like what you are considering is buying an existing book of clients from a retiring planner. These are hit and miss as some have no connection, but other times that can be quite lucrative. If you want to know more PM me and we can chat about it more.",
"title": ""
},
{
"docid": "5ba0cb041b117b851d8df5e141460b0b",
"text": "Yep, you need to hire a lawyer and an accountant, honestly. When I was starting my business, I hired one who was BOTH. Not really for cost-savings, though it did save $$$, but it was super convenient and it's nice to have someone knowledgable in both. It totally depends on your area, but don't overthink it or get intimidated. It won't take as much $$$ as you think to hire someone, maybe $500-$1,000 or so upfront, then a small hourly fee probably every month if you need help with sales tax or accounts or whatever... you need to make sure the gov is getting theirs though from day 1 re: taxes, otherwise you're gonna regret it. Much cheaper to get it all in place now.",
"title": ""
},
{
"docid": "b24c2f47bab3406acbccee0f70ab1d59",
"text": "\"This is a great question! I've been an entrepreneur and small business owner for 20+ years and have started small businesses in 3 states that grew into nice income streams for me. I've lived off these businesses for 20+ years, so I know it can be done! First let me start by saying that the rules, regulations, requirements and laws for operating a business (small or large) legally, for the most part, are local laws and regulations. Depending on what your business does, you may have some federal rules to follow, but for the most part, it will be your locality (state, county, city) that determines what you'll have to do to comply and be \"\"legal\"\". Also, though it might be better in some cases to incorporate (and even required in some circumstances), you don't always have to. There are many small businesses (think landscapers, housekeepers, babysitters, etc.) that get income from their \"\"business operations\"\" and do so as \"\"individuals\"\". Of course, everyone has to pay taxes - so as long as you property record your income (and expenses) and properly file your tax returns every year, you are \"\"income tax legal\"\". I won't try to answer the income tax question here, though, as that can be a big question. Also, though you certainly can start a business on your own without hiring lawyers or other professionals (more on that below), when it comes to taxes, I definitely recommend you indeed plan to hire a tax professional (even if it's something like H&R Block or Jackson Hewitt, etc). In some cities, there might even be \"\"free\"\" tax preparation services by certain organizations that want to help the community and these are often available even to small businesses. In general, income taxes can be complicated and the rules are always changing. I've found that most small business owners that try to file their own taxes generally end up paying a lot more taxes than they're required to, in essence, they are overpaying! Running a business (and making a profit) can be hard enough, so on to of that, you don't need to be paying more than you are required to! Also, I am going to assume that since it sounds like it would be a business of one (you), that you won't have a Payroll. That is another area that can be complicated for sure. Ok, with those generics out of the way, let me tackle your questions related to starting and operating a business, since you have the \"\"idea for your business\"\" pretty figured out. Will you have to pay any substantial amount of money to attorneys or advisors or accountants or to register with the government? Not necessarily. Since the rules for operating a business legally vary by your operating location (where you will be providing the service or performing your work), you can certainly research this on your own. It might take a little time, but it's doable if you stick with it. Some resources: The state of Florida (where I live) has an excellent page at: http://www.myflorida.com/taxonomy/business/starting%20a%20business%20in%20florida/ You might not be in Florida, but almost every state will have something similar. What all do I need to do to remain on the right side of the law and the smart side of business? All of the answers above still apply to this question, but here are a few more items to consider: You will want to keep good records of all expenses directly related to the business. If you license some content (stock images) for example, you'll want to document receipts. These are easy usually as you know \"\"directly\"\". If you subscribe to the Apple Developer program (which you'll need to if you intend to sell Apps in the Apple App Stores), the subscription is an expense against your business income, etc. You will want to keep good records of indirect costs. These are not so easy to \"\"figure out\"\" (and where a good accountant will help you when this becomes significant) but these are important and a lot of business owners hurt themselves by not considering these. What do I mean? Well, you need an \"\"office\"\" in order to produce your work, right? You might need a computer, a phone, internet, electricity, heat, etc. all of which allow you to create a \"\"working environment\"\" that allows you to \"\"produce your product\"\". The IRS (and state tax authorities) all provide ways for you to quantify these and \"\"count them\"\" as legitimate business expenses. No, you can't use 100% of your electric bill (since your office might be inside your home, and the entire bill is not \"\"just\"\" for your business) but you are certainly entitled to some part of that bill to count as a business expense. Again, I don't want to get too far down the INCOME TAX rabbit hole, but you still need to keep track of what you spend! You must keep good record of ALL your income. This is especially important when you have money coming in from various sources (a payroll, gifts from friends, business income from clients and/or the App Stores, etc.) Do not just assume that copies of your bank deposits tell the whole story. Bank statements might tell you the amount and date of a deposit, but you don't really know \"\"where\"\" that money came from unless you are tracking it! The good news is that the above record keeping can be quite easy with something like Quicken or QuickBooks (or many many other such popular programs.) You will want to ensure you have the needed licenses (not necessarily required at all for a lot of small businesses, especially home based businesses.) Depending on your business activity, you might want to consider business liability insurance. Again, this will depend on your clients and/or other business entities you'll be dealing with. Some might require you to have some insurance. Will be efforts even be considered a business initially until some amount of money actually starts coming in? This might be a legal / accountant question as to the very specific answer from the POV of the law and taxing authorities. However, consider that not all businesses make any money at all, for a long time, and they definitely \"\"are a business\"\". For instance, Twitter was losing money for a long time (years) and no one would argue they were not a business. Again, deferring to the attorneys/cpas here for the legal answer, the practical answer is that you're performing \"\"some\"\" business activity when you start creating a product and working hard to make it happen! I would consider \"\"acting as\"\" a business regardless! What things do I need to do up-front and what things can I defer to later, especially in light of the fact that it might be several months to a couple years before any substantial income starts coming in? This question's answer could be quite long. There are potentially many items you can defer. However, one I can say is that you might consider deferring incorporation. An individual can perform a business activity and draw income from it legally in a lot of situations. (For tax purposes, this is sometimes referred to as \"\"Schedule-C\"\" income.) I'm not saying incorporation is a bad thing (it can shield you from a lot of issues), but I am saying that it's not necessary on day 1 for a lot of small businesses. Having said that, this too can be easy to do on your own. Many companies offer services so you can incorporate for a few hundred dollars. If you do incorporate, as a small business of one person, I would definitely consider a tax concept called an \"\"S-Corp\"\" to avoid paying double taxes.) But here too, we've gone down the tax rabbit hole again. :-)\"",
"title": ""
},
{
"docid": "d9b62d5f7e21cf3006c02be2d7e8dd46",
"text": "\"Usually, the amswer to \"\"why sell it\"\" is \"\"to maintain the specific distribution balance, or to track the index, that this fund was designed to offer.\"\" A \"\"buy and hold\"\" fund could only buy when users are actively putting money into it. That limits their ability to follow those approaches. And I think there would be problems msking withdrawls/redeptions \"\"fair\"\", in terms of what shares are sold and how the costs for selling them are distributed, that don't arise for a single buy-and-hold investor. If you're willing to accept the limitations of the former, and can overcome the latter, it's an interesting idea... But note that one of the places index funds save money is that, since the composition of indexes changes rately, they are already operating mostly in buy-and-hold mode.It's unclear how much your variant would save. Worth exploring in greater depth, though. I think.\"",
"title": ""
}
] |
fiqa
|
9d4df7d01e88824b3513b59da4c17e46
|
How to determine how much to charge your business for rent (in your house)?
|
[
{
"docid": "0feaebba070c6c0fa61decfec8db2cb2",
"text": "Your best approach is to assess rent levels in your local area for offices of a similar size. You need to take into account all the usuals - amenities, parking, etc, just as if your home-office was provided by a third-party. Get your $/sq ft and work out the monthly amount. With this figure, you need to then work out what % of it you can charge. If the space is used exclusively for the business, charge 100%. If it's used about half the time, charge 50%, etc. I would strongly advise you to do two things - 1. make sure your accountant and your attorney help you get this squared away. 2. document everything about how you arrived at the cost. Nothing fancy, but dates, realtors, addresses, $/sq foot. A simple table will do. By doing these two things, if the IRS should come around to chat, you should be covered.",
"title": ""
},
{
"docid": "5a615eaaf29fdac7979f7a831c284c25",
"text": "\"If you are talking about a home office, you don't \"\"charge\"\" the business anything. If the area is used exclusively as an office you pro-rate by square footage just the actual expenses. TurboTax recent published an article \"\"Can I Take the Home Office Deduction?\"\" which is a must read if you don't understand the process. (Note: I authored said article.)\"",
"title": ""
},
{
"docid": "5231937629f4b8e90d974bc1ce6b52da",
"text": "In Canada I think you'd do it as a % of square footage. For example: Then you can count 20% of the cost of the of renting the apartment as a business expense. I expect that conventions (i.e. that what's accepted rather than challenged by the tax authorities) may vary from country to country.",
"title": ""
},
{
"docid": "0d8cc97b73642c71c5a8013e9f2f0629",
"text": "\"In the UK it all comes down to what HMRC will allow you to charge without taxing you on the \"\"rent profit\"\" and not hitting capital gain tax when you sell the house, it may not all count as your \"\"main home\"\" if some is rented out. (http://www.accountingweb.co.uk/ is a good place to ask this type of questions in the uk)\"",
"title": ""
},
{
"docid": "b716bade03dd6b48d556e5f54e846855",
"text": "It depends on the structure of your business. Are you a sole proprietor filing Schedule C on your 1040, or an S-corp, or part of a partnership? The treatment of a home office will differ depending on business entity.",
"title": ""
},
{
"docid": "6cf3d98f83f8d22c5222e2e9560689cd",
"text": "To be confident in your solution, and get the best solution for you, consult a local accountant, preferably one who is specialized in taxes for businesses. Or muddle through the code and figure it out for yourself. The primary advantage in consulting with an accountant is that you can ask them to point out ways you can restructure your expenses, debts and income in order to minimize your tax burden. They can help you run the numbers for the various options and choose the one that is right, numerically.",
"title": ""
}
] |
[
{
"docid": "7e6a5a540c60faee2f81e922e2fa4a79",
"text": "There are many ways to value a business. Here is a simple method to get a ball park number on most businesses. This business is made of two parts. For the real estate: For the business: I would consider this type of small business riskier than the stock market and so you should expect a higher return. Maybe 15 or 20%? If the rental business makes $50k profit (not revenue) and that is 20% return of your investment, the business is worth $250k. If the business makes no money or if they only make money because they don't take a salary then this is a hobby and not a business. There's no business to buy here and you are just bidding on the real estate to do with what you please. The assets worth $600k and the business worth $250k would be added together for a fair sale price of $850k. Adjust for your actual numbers and you should be able to get a ball park of what you think the business is worth. If you do the math and it works out that you'll make 1-3% on your business, compare that to investing in other places. If it works out that you'll make 40% on your money that's pretty awesome too.",
"title": ""
},
{
"docid": "cc944b121bd06b9a75a12eae2177827d",
"text": "It actually depends on the services provided. If you're renting through AirBnB, you're likely to provide much more services to the tenants than a traditional rental. It may raise it to a level when it is no longer a passive activity. See here, for starters: Providing substantial services. If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service, you report your rental income and expenses on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. Use Form 1065, U.S. Return of Partnership Income, if your rental activity is a partnership (including a partnership with your spouse unless it is a qualified joint venture). Substantial services do not include the furnishing of heat and light, cleaning of public areas, trash collection, etc. For information, see Publication 334, Tax Guide for Small Business. Also, you may have to pay self-employment tax on your rental income using Schedule SE (Form 1040), Self-Employment Tax. For a discussion of “substantial services,” see Real Estate Rents in Publication 334, chapter 5",
"title": ""
},
{
"docid": "c478ce517a23b24c5fa2356c7eeac393",
"text": "They are two different animals. When you rent you are purchasing a service. The landlord, as your service provider, has to make a profit, pay employees to do maintenance, and buy materials. The price of these things will increase with inflation, and that rolls into your rent price. Taxes also are passed to the tenant, and those tend to only go upward. Market forces of supply/demand will drive fluctuation of prices as well, as other posts have described. When you buy, you are purchasing just the asset - the home. This price will also be driven by supply/demand in the market, but don't try to compare it to buying a service. Cheers!",
"title": ""
},
{
"docid": "c83e47cb9631f83ce924a41ea510ae86",
"text": "\"You are suggesting that a 1% return per month is huge. There are those who suggest that one should assume (a rule of thumb here) that you should assume expenses of half the rent. 6% per year in this case. With a mortgage cost of 4.5% on a rental, you have a forecast profit of 1.5%/yr. that's $4500 on a $300K house. If you buy 20 of these, you'll have a decent income, and a frequently ringing phone. There's no free lunch, rental property can be a full time business. And very lucrative, but it's rarely a slam dunk. In response to OP's comment - First, while I do claim to know finance fairly well, I don't consider myself at 'expert' level when it comes to real estate. In the US, the ratio varies quite a bit from area to area. The 1% (rent) you observe may turn out to be great. Actual repair costs low, long term tenants, rising home prices, etc. Improve the 1.5%/yr to 2% on the 20% down, and you have a 10% return, ignoring appreciation and principal paydown. And this example of leverage is how investors seem to get such high returns. The flip side is bad luck with tenants. An eviction can mean no rent for a few months, and damage that needs fixing. A house has a number of long term replacement costs that good numbers often ignore. Roof, exterior painting, all appliances, heat, AC, etc. That's how that \"\"50% of rent to costs\"\" rule comes into play.\"",
"title": ""
},
{
"docid": "d555d27781530f9f3c7f60fcdbc25d0d",
"text": "\"You don't need an \"\"MBA\"\" to evaluate the performance of a bar. There is usually a dumb ratio for any industry which sets the expected turnover and bottom line. Basically one figure that can be given to an experienced bar owner and he'll know that the top and bottom line should be. Not knowing the bar industry, your area or grade of location etc I'd guess cost of sales (i.e. drink), you apply that against the typical gross margin % and you'll know what the turnover figure should be, and apply it to the typical net profit % and know what the bottom line should be. Wouldn't surprise me if an experienced guy could figure all that out just from the floorspace area and rent, with a bit of local knowledge. It should go without saying that if these are underperforming, it doesn't tell you why. Maybe your manager is swindling you, maybe he's crap, maybe the owners took crappy decisions like inappropriate fit out, crap marketing, crap location, etc, forcing manager to price low. Also bear in mind that the average includes all the really experienced bar owners so it can already be a tough target.\"",
"title": ""
},
{
"docid": "f844bc2e005a7a9e65887aa5f7ce63e9",
"text": "I think what you have here is actually TWO agreements with your sister, and explicitly splitting it into two agreements will bring some clarity. The first is ownership of and responsibility for the building. The second is each of your personal use of a unit. Here's what you do: Treat ownership as if you're not living there. Split the down payment, the monthly mortgage, taxes and insurance, responsibility for cost of maintenance, etc. as well as the ownership and benefit of the building 70%/30%. Put all that in a contract. Treat it like a business. Second, lease those units to yourselves as if you were tenants. And yes, I means even with leases. This clarifies your responsibilities in a tenant capacity. More to the point, each of you pays rent at the going rate for the unit you occupy. If rent from all three units equals the monthly expenses, nothing more needs to be done. If they're more than the monthly expenses, then each of you receives that as business income on that 70%/30% breakdown. If those three rents are less than the monthly expenses, then each of you are required to make up the difference, again at 70%/30%. Note: if any of those expenses are utilities, then they should be apportioned via the rent -- just as you would if you'd rented out the whole building to strangers. 2nd note: all that can be done with ledger entries, rather than moving money around, first as rent, then as expense payments, then as payouts. But, I think it will benefit all of you to explicitly pay rent at first, to really clarify your dual relationship as joint owners and as tenants. Final note: I think this is a stickier situation than you may think it is. Familial relationships have been destroyed both by going into business together, and by renting to family members. You're doing both, and mixing the two to boot. I'm not saying it will destroy your relationship, but that there's a solid risk there. Relationship destruction comes from assumptions and vague verbal agreements. Therefor, for the sake of all of you, put everything in writing. A clear contract for the business side, and clear leases for the tenant side. It's not about trust -- it's about understood communication and positive agreement on all important points.",
"title": ""
},
{
"docid": "2942264051e628907e9f3b75ce82ec96",
"text": "\"What you charge them depends on what kind of use you want them to have of the house. Your use of the term \"\"roommate\"\" implies you're imagining, well, a roommate-type situation where everyone has full access to all common areas. This is the usual situation when multiple people jointly rent a house that none of them owns. In this situation all the roommates are essentially equals. But if you own the house and are renting it out, you can do whatever you want. A lot of people would not look for \"\"roommates\"\" but for \"\"lodgers\"\" or \"\"tenants\"\" --- you rent one room to a person, and you decide what the terms are for their use of the rest of the house. That means you get to decide if/when they use the kitchen, if/when they get to use your dishes, what they can do in the back yard, etc. In this situation the roommates are not your equals. You own the property and you set the terms for everyone else. (To clarify after reading the other answer: by \"\"not your equals\"\" I don't mean to imply that renters aren't equal as human beings to the landlord or should be treated as lowly peasants or anything like that. I just mean that they need not have equal decision-making powers with regard to the housing itself.) I would say the big difference is the social dynamic: personally, I wouldn't feel comfortable renting out rooms to \"\"roommates\"\" unless I was quite sure I would get along with them --- basically, the kind of people I would actually rent with, not just rent to. If you do rent roommate-style, and everyone has essentially equal access to all the facilities of the house, I'd say it's reasonable to split all house expenses roughly equally (with perhaps some adjustments for differences in amenities, like if one person has a larger bedroom than others). If you rent tenant-style, where you're not expecting them to be your buddies, the best way to determine a reasonable rent is to find other people renting similar rooms and see how much they're charging. Craigslist is a great way to do that; you can also ask around to people you know.\"",
"title": ""
},
{
"docid": "d0a8dfb3b7af002ee8840658871d052e",
"text": "I suggest that you first decide on what %'s of the home value you each have a legal claim to. Then split the mortgage using the same %'s. Then, if someone feels their % is slightly higher, they are compensated because they 'own' a correspondingly higher share of the house. Use the same %'s for downpayments (which may mean that an 'adjustment' payment might be required to bring your initial cash outlay from 70/30 into the %'s that you agree to). Tenant income gets split the same way. Utilities are a bit more difficult - as heating depends more on square feet, but water and hydro depend more on how many people are there. You can try to be really precise about working out the %'s, or just keep it simple by using the same %'s as the mortgage.",
"title": ""
},
{
"docid": "edb9e13ff8bd76b8a2234de5e8102d48",
"text": "Rent should be nailed to costs + a pre-defined profit limit. Anything above the profit margin gets taxed away. Instead, people are gouged of a good portion of their incomes while landlords make out like bandits. Although I imagine the response to such a scheme would just be convoluted accounting tricks.",
"title": ""
},
{
"docid": "87391b5769bbc4e6cf5227334a5e7922",
"text": "Your calculations are good as far as they go, but there are lots of other factors and pros and cons to each decision. Yes, you should certainly compare the monthly rent to what your mortgage payments would be, as you have done. Yes, you should consider how long you might live there. If you do move out, how difficult will it be to sell the house, given market conditions in your area? If you try to rent it, how difficult is it to find a tenant, and what rent could you expect to receive? Speaking of moving out and renting the place: Who will manage the property and do maintenance? Would you still be close enough to do this yourself? Would you be willing and able to spend the time? Or would you have to hire someone? Also, what if the tenant does not pay the rent? How difficult is it to evict someone in your area? Speaking from personal experience, I own a rental property in Ohio, and the law says you can evict someone with 3 days notice. But in practice they don't just leave, so then you have to take them to court. It takes months to get a court date and months longer before the police actually show up to order them out of the house. And you have to pay the lawyer and court fees. In that time they're living in your property rent free. In my case one tenant also totally trashed the place and stole everything that wasn't nailed down -- I had to spend $13,000 on repairs to a house worth a fraction of what you're talking about. Being a landlord is NOT just a matter of sitting back and collecting rent checks: there's a fair amount of work and a lot of risk. What do you have to pay the realtor, and what other closing costs would you have to pay? Where I live, realtors typically charge 6 to 7%. You may also have to pay for an appraisal, title search, and bunch of other little fees. Mortgage interest is deductible on your federal income taxes. Rent is not. If you own and something needs to be repaired, you have to pay for it. If you rent, the landlord has to pay for it. If you own, you can do pretty much what you like with the property -- subject to zoning ordinances and building codes and maybe homeowners association rules, but you should have a pretty good amount of leeway. If you want to install ceiling fans or remodel the kitchen or add a deck, it's up to you. If you're renting, it's up to the landlord to decide what you can do to the property. And if he agrees to let you do some upgrade, when you're done, it belongs to him. With a condo, you are not usually responsible for exterior maintenance, like mowing the lawn and trimming the bushes and washing the outer walls. With a house, you are. You might pay someone to do this, which adds to the cost, or you might do it yourself, which takes time. Insurance on a condo or aparment is much less than insurance on a house. In my area, anyway. You should investigate those costs. If you buy, eventually you own the place and don't have to pay a mortgage any more. If you rent, you continue to pay forever. (Even if you don't live in the same house forever, as long as you don't take a terrible loss when you sell you should then have some money left over to apply to the next house, so you are still building equity.) Some of these pros and cons are easily quantifiable. Others are probabilities, like how likely is it that your water heater will fail?, and how long is it likely to take to find a buyer if you want to sell? And others are pretty subjective.",
"title": ""
},
{
"docid": "d8b7786c9df393ebf88eb4238d98e569",
"text": "\"For US punters, the Centre for Economic and Policy Research has a Housing Cost Calculator you can play with. The BBC provides this one for the UK. For everyone else, there are a few rules of thumb (use with discretion and only as a ball-park guide): Your example of a Gross Rental Yield of 5% would have to be weighed up against local investment returns. Read Wikipedia's comprehensive \"\"Real-estate bubble\"\" article. Update: spotted that Fennec included this link at the NY Times which contains a Buy or Rent Calculator.\"",
"title": ""
},
{
"docid": "0b74ae43593376c509c0450f1ca4c0e7",
"text": "A good quick filter to see if a property is worth looking at is if the total rent for the property for the year is equal to 10% of the price of the property. For example, if the property is valued at $400,000 then the rent collected should be $40,000 for the entire year. Which is $3,333.33 per month. If the property does not bring in at least 10% per year then it is not likely all the payments can be covered on the property. It's more likely to be sinking money into it to keep it afloat. You would be exactly right, as you have to figure in insurance, utilities, taxes, maintenance/repair, mortgage payments, (new roof, new furnace, etc), drywall, paint, etc. Also as a good rule of thumb, expect a vacancy rate of at least 10% (or 1 month) per year as a precaution. If you have money sitting around, look into Real Estate Investment Trusts. IIRC, the average dividend was north of 10% last year. That is all money that comes back to you. I'm not sure what the tax implications are in Australia, however in Canada dividends are taxed very favourably. No mortgage, property tax, tenants to find, or maintenance either.",
"title": ""
},
{
"docid": "52d2669e7b9531556d89fd5c4944a25b",
"text": "\"The value of getting into the landlord business -- or any other business -- depends on circumstances at the time. How much will it cost you to buy the property? How much can you reasonably expect to collect in rent? How easy or difficult is it to find a tenant? Etc. I owned a rental property for about ten years and I lost a bundle of money on it. Things people often don't consider when calculating likely rental income are: There will be times when you have no tenant. Someone moves out and you don't always find a new tenant right away. Maintenance. There's always something that the tenant expects you to fix. Tenants aren't likely to take as good a care of the property as someone who owned it would. And while a homeowner might fix little things himself, like a broken light switch or doorknob, the tenant expects the landlord to fix such things. If you live nearby and have the time and ability to do minor maintenance, this may be no big deal. If you have to call a professional, this can get very expensive very quickly. Like for example, I once had a tenant complain that the water heater wasn't working. I called a plumber. He found that the knob on the water heater was set to \"\"low\"\". So he turned it up. He charged me, I think it was $200. I can't really complain about the charge. He had to drive to the property, figure out that that was all the problem was, turn the knob, and then verify that that really solved the problem. Tenants don't always pay the rent on time, or at all. I had several tenants who apparently saw the rent as something optional, to be paid if they had money left over that they couldn't think of anything better to do with. You may get bad tenants who destroy the place. I had one tenant who did $10,000 worth of damage. That include six inches deep of trash all over the house that had to be cleared out, rotting food all over, excrement smeared on walls, holes in the walls, and many things broken. I thought it was disgusting just to have to go in to clean it up, I can't imagine living like that, but whatever. Depending on the laws in your area, it may be very difficult to kick out a bad tenant. In my case, I had to evict two tenants, and it took about three months each time to go through the legal process. On the slip side, the big advantage to owning real estate is that once you pay it off, you own it and can continue to collect rent. And as most currencies in the world are subject to inflation, the rent you can charge will normally go up while your mortgage payments are constant.\"",
"title": ""
},
{
"docid": "1ad15cc152475532f730dd9fb23cb2b3",
"text": "Nofel. So basically I wanted to know how to calculate that how much should I be paying for car or rent etc? I'm not big on percentages. Instead, I prefer hard numbers based on what you owe and what you earn. Here are rules of successful budgeting which I developed when deep in debt. They apply to everyone: After going through this exercise, you definitely might realize that you need to move to a less expensive apartment, or trade your car in for something smaller, drink less, etc. Or even get a second job.",
"title": ""
},
{
"docid": "7eee3defcfeb74a9808a4cca6339b60d",
"text": "\"First of all to answer the basic question \"\"Is one method correct? Might it depend on local laws?\"\" Yes it does depend on local laws. Because ultimately the business will have to file forms with the sate/county/city. These forms are going to ask for the total sales based on the tax category (tax free, x%, y%). Each transaction could have parts that fall into each category. The local taxing authority decides what goes into each category. The local taxing authority also determines how often the business needs to submit the taxes. They can even decide to base the rates used by where the customer lives. A business is not required to charge directly for sales tax. That is why frequently at sporting events, the price on the menu notes that all sales taxes are included. I suppose not directly charging a sales tax makes the monthly calculation harder, but the state will still get their money. Rounding up at the end of the entire transaction is enough to make sure they collect enough taxes, so they don't have to dip into their profits.\"",
"title": ""
}
] |
fiqa
|
2ed886144a94646998a320b2ee993b09
|
Dual Citizen British/US and online business taxes
|
[
{
"docid": "2cd770682f25805fc6be5eea23b57d81",
"text": "I see no reason why a US ID would be mandatory anywhere in the UK. I'm sure they have their own tax IDs in the UK. However, if the gallery requires US persons to submit US W-9 - then yes, you're covered under that requirement.",
"title": ""
}
] |
[
{
"docid": "9797c3ae43e312e7a4e29c26a0f28f57",
"text": "If i am not wrong, any business activities such should be declared on Year End Tax filing. If your friend is going to own that website either it is commercial or nonprofit, he has to declare in the year end taxation.",
"title": ""
},
{
"docid": "326e509907a0cd7a78e5cf4f2abef8db",
"text": "A) a tax treaty probably covers this for the avoidance of double taxation. Tax treaties can be very cryptic and have little precedence clarifying them http://www.irs.gov/businesses/international/article/0,,id=169552,00.html B) I'm going to say NO since the source of your income is going to be US based. But the UK tax laws might also have specific verbage for resident source income. sorry it is an inconclusive answer, but should be some factors to consider and point you in the right direction.",
"title": ""
},
{
"docid": "cbcd9ea50347e19d0428f324b99d1f49",
"text": "The PAYE tax and NI will be deducted as usual. Send HMRC a P85 form to tell them you're emigrating, and they will refund the tax.",
"title": ""
},
{
"docid": "a96857cf8f4229f9687b18538caa3dcc",
"text": "\"Are most big US based financial institutions and banks in such a close relationship with USCIS (United States Citizenship And Immigration Services) so they can easily request the information about market traders? Yes. They must be in order to enforce the laws required by the sanctions. What online broker would you suggest that probably won't focus on that dual citizenship matter? \"\"Dual\"\" citizenship isn't actually relevant here. Nearly anyone in the world can invest in US banks except for those few countries that the US has imposed sanctions against. Since you are a citizen of one of those countries, you are ineligible to participate. The fact that you are also a US citizen isn't relevant in this case. I believe the reasoning behind this is that the US doesn't encourage dual citizenship: The U.S. Government does not encourage dual nationality. While recognizing the existence of dual nationality and permitting Americans to have other nationalities, the U.S. Government also recognizes the problems which it may cause. Claims of other countries upon U.S. dual-nationals often place them in situations where their obligations to one country are in conflict with the laws of the other. In addition, their dual nationality may hamper efforts of the U.S. Government to provide consular protection to them when they are abroad, especially when they are in the country of their second nationality. If I had to guess, I'd say the thinking there is that if you (and enough other people that are citizens of that country) want to participate in something in the US that sanctions forbid, you (collectively) could try to persuade that country's government to change its actions so that the sanctions are lifted. Alternatively, you could renounce your citizenship in the other country. Either of those actions would help further the cause that the US perceives to be correct. What it basically boils down to is that even though you are a US citizen, your rights can be limited due to having another citizenship in a country that is not favorable in the current political climate. Thus there are pros and cons to having dual citizenship.\"",
"title": ""
},
{
"docid": "e6c0ce6d855e23a095166cf2c36b03e8",
"text": "Your answer will need loads of information and clarification, so I will ask you to visit the VAT and have a peruse. 1) Obligation is for you to find out the correct rate of VAT, charge and pay tax accordingly. You can call up the HMRC VAT helpline for help, which they will be happy to oblige. Normally everybody pays VAT every 3 months or you can pay once in a year. 2) Depends on your annual turnover, including VAT. Less than £150000 you join the Flat rate scheme. There are schemes for cultural activities. Might be good to check here on GOV.UK. 3) If you pay VAT in EU countries, you can reclaim VAT in UK. You need to reclaim VAT while filing in your VAT returns. But be careful about your receipts, which can be checked to verify you are not defrauding HMRC. The basic rule is that B2B services are, as the name suggests, supplies from one business to another. And, subject to some exceptions, are treated as made where the customer belongs. No VAT is chargeable on B2B supplies to an overseas customer. But where you make a B2C supply, VAT depends on where your customer is located: 1) if they are outside the EU, you don’t need to charge VAT 2) if they are located in an EU country, then you must charge VAT. Source All in all keep all records of VAT charged and paid to satisfy the taxman. If the rules get complicated, get an accountant to help you out. Don' take chances of interpreting the law yourself, the fines you might pay for wrong interpretation might be a deal breaker.",
"title": ""
},
{
"docid": "808cf030522c858d1c6b8726005522fc",
"text": "You would need to pay taxes in India on your salary. It is not relevant whether the funds are received as INR or GBP. The taxes would be as per normal tax brackets. Note that if your company is not deducting any taxes, you would need to keep paying Advance Taxes as per schedule, else there would be penalty. Depending on your contract with the UK Company, there are certain expenses you can claim. For example laptop / net connection / etc if these are not already reimbursed. Consult a CA and he would advise you more on any tax saving opportunity.",
"title": ""
},
{
"docid": "cc041b18ffe6b806ba4fbcb0c963b9b0",
"text": "\"The IRS taxes worldwide income of its citizens and green card holders. Generally, for those Americans genuinely living/working overseas the IRS takes the somewhat reasonable position of being in \"\"2nd place\"\" tax-wise. That is, you are expected to pay taxes in the country you are living in, and these taxes can reduce the tax you would have owed in the USA. Unfortunately, all of this has to be documented and tax returns are still required every year. Your European friends may find this quite surprising as I've heard, for instance, that France will not tax you if you go live and work in Germany. A foreign company operating in a foreign country under foreign law is not typically required to give you a W-2, 1099, or any of the forms you are used to. Indeed, you should be paying taxes in the place where you live and work, which is probably somewhat different than the USA. Keep all these records as they may be useful for your USA taxes as well. You are required to total up what you were paid in Euros and convert them to US$. This will go on the income section of a 1040. You should be paying taxes in the EU country where you live. You can also total those up and convert to US$. This may be useful for a foreign tax credit. If you are living in the EU long term, like over 330 days/year or you have your home and family there, then you might qualify for a very large exemption from your income for US tax purposes, called the Foreign Earned Income Exclusion. This is explained in IRS Publication 54. The purpose of this is primarily to avoid double taxation. FBAR is a serious thing. In past years, the FBAR form went to a Financial Crimes unit in Detroit, not the regular IRS address. Also, getting an extension to file taxes does not extend the deadline for the FBAR. Some rich people have paid multi-million dollar fines over FBAR and not paying taxes on foreign accounts. I've heard you can get a $10,000 FBAR penalty for inadvertent, non-willful violations so be sure to send those in and it goes up from there to $250k or half the value of the account, whichever is more. You also need to know about whether you need to do FATCA reporting with your 1040. There are indeed, a lot of obnoxious things you need to know about that came into existence over the years and are still on the law books -- because of the perpetual 'arms race' between the government and would be cheaters, non-payers and their advisors. http://www.irs.gov/publications/p54/ http://americansabroad.org/\"",
"title": ""
},
{
"docid": "a36ebec5f995e73425f1d8eab546d735",
"text": "Only if your work on the side is making you at least £60,000 profit a year. The overheads are just not worth it if you make less. Working as a sole trader, you can still claim for expenses incurred in the course of your business. You can also claim a percentage of your computer costs, even though you may use the computer for gaming. This is not unreasonable as the computer is necessary for your work. The Inland Revenue accept the fact that some assets are part work-related. In your case, as a web and mobile phone developer, I expect the percentage to be at least half, if not a lot more. If you need to travel in the course of your work you can claim a percentage for your car. You can include other small expenses such as telephone, stationery, electricity etc but don't go overboard. The important point to remember is that you must be able to defend the expenses claimed as work-related, so long as you can do this there is no problem. Remember to keep good records of all your expenses. This is on-going throughout the year and is much more work than filling out your tax return. The software on the IR self-assessment site is excellent, so it's conceivable that you may not need an accountant if you are prepared to do your own tax return. However, if you feel unsure employ an accountant initially and take it from there.",
"title": ""
},
{
"docid": "d67803ddbaed689189eccfe8f6a604e9",
"text": "It's not just the US based mailing address for registration or US based credit-card or bank account: even if you had all these, like I do, you will find that these online filing companies do not have the infrastructure to handle non-resident taxes. The reason why the popular online filing companies do not handle non-resident taxes is because: Non-residents require a different set of forms to fill out - usually postfixed NR - like the 1040-NR. These forms have different rules and templates that do not follow the usual resident forms. This would require non-trivial programming done by these vendors All the NR forms have detailed instructions and separate set of non-resident guides that has enough information for a smart person to figure out what needs to be done. For example, check out Publication 519 (2011), U.S. Tax Guide for Aliens. As a result, by reading these most non-residents (or their accountants) seem to figure out how the taxes need to be filed. For the remaining others, the numbers perhaps are not significant enough to justify the non-trivial programming that need to be done by these vendors to incorporate the non-resident forms. This was my understanding when I did research into tax filing software. However, if you or anyone else do end up finding tax filing software that does allow non-resident forms, I wil be extremely happy to learn about them. To answer your question: you need to do it yourself or get it done by someone who knows non-resident taxes. Some people on this forum, including me for gratis, would be glad to check your work once you are done with it as long as you relieve us of any liability.",
"title": ""
},
{
"docid": "d137f8ba2fc7c051f2118309f7059b59",
"text": "There is no such thing as double taxation. If you pay tax in the US, you CAN claim tax credits from India tax authority. For example, if you pay 100 tax in USA and your tax liability in India is 200, then you will only pay 100 (200 India tax liability minus 100 tax credits on foreign tax paid in the USA). This is always true and not depending on any treaty. If there is a treaty, the tax rate in the United States is set on the treaty and you CAN claim that final tax rate based upon that treaty. If you operate an LLC, and the income is NOT derived from United States and you have no ties with the US and that LLC is register to a foreign person (not company but a real human) then you will not have to submit tax return in the US... I advice you to read this: http://www.irs.gov/businesses/small/article/0,,id=98277,00.html",
"title": ""
},
{
"docid": "fa3695d0d1032ee99f0636ca62b92cda",
"text": "\"The current tax regime? Not sure if you are being serious or facetious, but: [US Citizens and Resident Aliens Abroad - Filing Requirements](https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad-filing-requirements) >If you are a U.S. citizen or resident alien living or traveling outside the United States, **you generally are required to file income tax returns, estate tax returns, and gift tax returns and pay estimated tax in the same way as those residing in the United States.** In contrast, corporations don't pay taxes on profits earned abroad until repatriation [here](http://money.cnn.com/2014/08/14/news/economy/corporate-taxes-inversion/index.html), [here](https://www.nytimes.com/2017/03/09/business/economy/corporate-tax-report.html), [here](https://www.bloomberg.com/graphics/2016-apple-profits/). So guess what they NEVER do? This is why literally every large US multi-national corporate \"\"person\"\" pays next to nothing in taxes. It is quite obvious that this is a violation of the spirit if not the letter of tax law. That simple fix would wipe out massive amounts of government debt and force multi-national corporations and their shareholders to become engaged stake holders in the efficiency of government. But if, unlike W-2 paid human counterparts, you can dodge all taxation, \"\"Who cares if the government is using funds efficiently?\"\" That is incentive to actually game the system to force the government into wasteful spending because the subsequent fallout of increased taxation and/or failure of the state can be dodged without consequence.\"",
"title": ""
},
{
"docid": "39140129163ccabe75a9d6dcb033e4c4",
"text": "First, the SSN isn't an issue. She will need to apply for an ITIN together with tax filing, in order to file taxes as Married Filing Jointly anyway. I think you (or both of you in the joint case) probably qualify for the Foreign Earned Income Exclusion, if you've been outside the US for almost the whole year, in which cases both of you should have all of your income excluded anyway, so I'm not sure why you're getting that one is better. As for Self-Employment Tax, I suspect that she doesn't have to pay it in either case, because there is a sentence in your linked page for Nonresident Spouse Treated as a Resident that says However, you may still be treated as a nonresident alien for the purpose of withholding Social Security and Medicare tax. and since Self-Employment Tax is just Social Security and Medicare tax in another form, she shouldn't have to pay it if treated as resident, if she didn't have to pay it as nonresident. From the law, I believe Nonresident Spouse Treated as a Resident is described in IRC 6013(g), which says the person is treated as a resident for the purposes of chapters 1 and 24, but self-employment tax is from chapter 2, so I don't think self-employment tax is affected by this election.",
"title": ""
},
{
"docid": "27fcc343ed9d01eac9eb28343ef02044",
"text": "\"The IRS W-8BEN form (PDF link), titled \"\"Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding\"\", certifies that you are not an American for tax purposes, so they won't withhold tax on your U.S. income. You're also to use W-8BEN to identify your country of residence and corresponding tax identification number for tax treaty purposes. For instance, if you live in the U.K., which has a tax treaty with the U.S., your W-8BEN would indicate to the U.S. that you are not an American, and that your U.S. income is to be taxed by the U.K. instead of tax withheld in the U.S. I've filled in that form a couple of times when opening stock trading accounts here in Canada. It was requested by the broker because in all likelihood I'd end up purchasing U.S.-listed stocks that would pay dividends. The W-8BEN is needed in order to reduce the U.S. withholding taxes on those dividends. So I would say that the ad revenue provider is requesting you file one so they don't need to withhold full U.S. taxes on your ad revenue. Detailed instructions on the W-8BEN form are also available from the IRS: Instruction W-8BEN (PDF link). On the subject of ad revenue, Google also has some information about W8-BEN: Why can't I submit a W8-BEN form as an individual?\"",
"title": ""
},
{
"docid": "626a2197689b19ff93c95f514d201984",
"text": "With a question like this you should talk to a tax professional who knows about international tax and knows about both the UK and the country you will be working in. They will give you up to date advice on what can be an extremely complex question. However to get you started I'll tell you what I was told when I did this nearly twenty years ago. It's all about whether you are resident in the UK for tax purposes or not. If you are, you will pay UK tax. If not, you wont (assuming you are being paid outside the UK - check with your professional exactly what is involved). In those days you could be counted as 'non resident' if you spent a complete period of twelve months outside the UK. You can make occasional visits to the UK without invalidating that. Again, check exactly how much you are allowed to return while still being not resident. Usually you will have to pay tax in the country where you are resident, but check the rules there. With some skilful timing you may be able to be considered non-resident in bouth countries, at least for some of the time. Again, your tax professional will know. The bank account question - again get a professional. I don't think it's a problem, but you may have to establish that you are being paid in the foreign country. In general you are going to need an account in the country where you work, so if its a problem get paid there and transfer any money you need in the UK.",
"title": ""
},
{
"docid": "360503adf72fdf1c17262981721bfc4b",
"text": "Even experts have no real certainty what the market will do as a whole. 2/3's of managers fail to beat the market every year. I think this is mostly due to hedging and trying to meet their investors needs. If. You buy and hold a few index ETFs you will most likely beat actively managed accountsn that said, you will sacrifice liquidity if you want to avoid cyclical losses.",
"title": ""
}
] |
fiqa
|
2d8827baa6d7adc4c085200ba710fd6e
|
Will my wife's business losses offset my income on a joint tax return?
|
[
{
"docid": "857caa5f04ace57403694601f1826c25",
"text": "\"First, filing status. If you and your wife are legally married, you should be filing your tax returns as married, either jointly or separately. In the US, \"\"head of household\"\" has a specific meaning and is for unmarried people who are supporting one or more relatives, per the IRS. If you are working full-time and your wife is not, then likely you will file a joint return, including all your income and all the expenses for your wife's business. So yes, the losses in her business will offset your income. Depending on how complex things are, you may want to hire a professional to help with your taxes. The rules for what can and cannot be deducted as a business expense can be opaque.\"",
"title": ""
}
] |
[
{
"docid": "fab076774b036cd9084c4f5e2bad63c9",
"text": "I'm not an expert, but here's my $0.02. Deductions for business expenses are subject to the 2% rule. In other words, you can only deduct that which exceeds 2% of your AGI (Adjusted Gross Income). For example, say you have an AGI of $50,000, and you buy a laptop that costs $800. You won't get a write-off from that, because 2% of $50,000 is $1,000, and you can only deduct business-related expenses in excess of that $1,000. If you have an AGI of $50,000 and buy a $2,000 laptop, you can deduct a maximum of $1,000 ($2,000 minus 2% of $50,000 is $2,000 - $1,000 = $1,000). Additionally, you can write off the laptop only to the extent that you use it for business. So in other words, if you have an AGI of $50,000 and buy that $2,000 laptop, but only use it 50% for business, you can only write off $500. Theoretically, they can ask for verification of the business use of your laptop. A log or a diary would be what I would provide, but I'm not an IRS agent.",
"title": ""
},
{
"docid": "0e48693bde300c48d90869879df069e1",
"text": "\"I don't think it really matters, my understanding is that as a sole trader there is no distinction between your personal and business tax affairs. The distinction between your personal and business account is mainly for your own personal benefit to make it easier to differentiate between \"\"wages\"\" and retained earnings. If you want to maintain this distinction with regard to tax then you need to somehow differentiate between tax paid on your \"\"wage\"\" and tax paid on retained earnings. You could then either make two payments, or pay from either and transfer the difference from the other. Either way, it's just a matter of perspective rather than something with a physical difference.\"",
"title": ""
},
{
"docid": "58a27b9898fc1b6ef26969f3623b4ee2",
"text": "Ah, I did some more research and apparently Rental Income is considered Passive Income, and as such the IRS does not allow a net loss to exist, but you can carry the loss over into the next year. https://www.irs.gov/taxtopics/tc425.html Generally, losses from passive activities that exceed the income from passive activities are disallowed for the current year. You can carry forward disallowed passive losses to the next taxable year. A similar rule applies to credits from passive activities. So in the event in a loss on my rental business activity, I simply pay no tax on it, and deduct the remainder in income in 2017 from taxes. I don't make any changes to my Consulting income at all.",
"title": ""
},
{
"docid": "94f593b5521152a87c5459a25f4a9088",
"text": "\"In the US you are not required to have a corporation to use business expenses to offset your income. The technical term you need is \"\"deducting business expenses\"\", and in matters of taxes it's usually best to go straight to the horse's mouth: the IRS's explanations Deducting Business Expenses Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business operates to make a profit. What Can I Deduct? Cost of Goods Sold, Capital Expenses, Personal versus Business Expenses, Business Use of Your Home, Business Use of Your Car, Other Types of Business Expenses None of this requires any special incorporation or tax arrangements, and are a normal part of operating a business. However, there is a bit of a problem with your scenario. You said you \"\"invested\"\" into a business, but you mentioned buying specific things for the business which is not generally how one accounts for investment. If you are not an owner/operator of the business, then the scenario is not so straight-forward, as you can't simply claim someone else's business expenses as your own because you invested in it. Investments are taxed differently than expenses, and based upon your word choices I'm concerned that you could be getting yourself into a bit of a pickle. I would strongly advise you to speak with a professional, such as a Certified Public Accountant (CPA), to go over your current arrangement and advise you on how you should be structuring your ongoing investment into this shared business. If you are investing you should be receiving equity to reflect your ownership (or stock in the company, etc), and investments of this sort generally cannot be deducted as an expense on your taxes - it's just an investment, the same as buying stock or CDs. If you are just buying things for someone else's benefit, it's possible that this could be looked upon as a personal gift, and you may be in a precarious legal position as well (where the money is, indeed, just a gift). And gifts of this sort aren't deductible, either. Depending on how this is all structured, it's possible that you should both consider a different form of legal organization, such as a formal corporation or at least an official business partnership. A CPA and an appropriate business attorney should be able to advise you for a nominal (few hundred dollars, at most) fee. If a new legal structure is advisable, you can potentially do the work yourself for a few hundred dollars, or pay to have it done (especially if the situation is more complex) for a few hundred to a few thousand. That's a lot less than you'd be on the hook for if this business is being accounted for improperly, or if either of your tax returns are being reported improperly!\"",
"title": ""
},
{
"docid": "028a096c096a0e3346de1aa2bda02571",
"text": "For some reason this can result in either the flow through income being UNTAXED or the flow through income being taxed as a capital gains. Either way this allows a lower tax rate for LLC profits. I'm not sure that correct. I know it has something to do with capital accounts. This is incorrect. As to capital accounts - these are accounts representing the members/partners' capital in the enterprise, and have nothing to do with the tax treatment of the earnings. Undistributed earnings add to the capital accounts, but they're still taxed. Also, is it true that if the LLC loses money, that loss can be offset against other taxable income resulting in a lower total taxation? It can offset taxable income of the same kind, just like any other losses on your tax return. Generally, flow-through taxation of partnerships means that the income is taxed to the partner with the original attributes. If it is capital gains - it is taxed as capital gains. If it is earned income - it is taxed as earned income. Going through LLC/partnership doesn't re-characterize the income (going through corporation - does, in many cases).",
"title": ""
},
{
"docid": "69cae92454c28e2e4d04cda5494408f7",
"text": "That's really not something that can be answered based on the information provided. There are a lot of factors involved: type of income, your wife's tax bracket, the split between Federal and State (if you're in a high bracket in a high income-tax rate State - it may even be more than 50%), etc etc. The fact that your wife didn't withdraw the money is irrelevant. S-Corp is a pass-through entity, i.e.: owners are taxed on the profits based on their personal marginal tax rates, and it doesn't matter what they did with the money. In this case, your wife re-invested it into the corp (used it to pay off corp debts), which adds back to her basis. You really should talk to a tax adviser (EA/CPA licensed in your State) to learn how S-Corps work and how to use them properly. Your wife, actually, as she's the owner.",
"title": ""
},
{
"docid": "90bf0c014b7268f7f6404fa099240da9",
"text": "This may not exactly answer your question but, as a small business owner, I would highly recommend having a professional handle your taxes. It is worth the money to have it done correctly rather than doing something wrong and getting audited or worse having penalties assessed and owing more than you thought would be possible. I would recommend this especially if this is how you make your primary income, you can always write it off as a business expense.",
"title": ""
},
{
"docid": "67bbd14128eadd93b30815a6c969ca14",
"text": "Just from my own experience (I am not an accountant): In addition to counting as 'business income' (1040 line 12 [1]) your $3000 (or whatever) will be subject to ~15% self-employment tax, on Schedule SE. This carries to your 1040 line ~57, which is after all your 'adjustments to income', exemptions, and deductions - so, those don't reduce it. Half of the 15% is deductible on line ~27, if you have enough taxable income for it to matter; but, in any case, you will owe at least 1/2 of the 15%, on top of your regular income tax. Your husband could deduct this payment as a business expense on Schedule C; but, if (AIUI) he will have a loss already, he'll get no benefit from this in the current year. If you do count this as income to you, it will be FICA income; so, it will be credited to your Social Security account. Things outside my experience that might bear looking into: I suspect the IRS has criteria to determine whether spousal payments are legit, or just gaming the tax system. Even if your husband can't 'use' the loss this year, he may be able to apply it in the future, when/if he has net business income. [1] NB: Any tax form line numbers are as of the last I looked - they may be off by one or two.",
"title": ""
},
{
"docid": "eb5e9815faf7113e06c057aa15dd3c3e",
"text": "\"As long as the losing business is not considered \"\"passive activity\"\" or \"\"hobby\"\", then yes. Passive Activity is an activity where you do not have to actively do anything to generate income. For example - royalties or rentals. Hobby is an activity that doesn't generate profit. Generally, if your business doesn't consistently generate profit (the IRS looks at 3 out of the last 5 years), it may be characterized as hobby. For hobby, loss deduction is limited by the hobby income and the 2% AGI threshold.\"",
"title": ""
},
{
"docid": "7b9e65e73e1d2ee9ac596a33ff6295d8",
"text": "Since from the question it seems that you're talking about the US taxation, I'll assume that. You can definitely continue filing jointly. Being members of a partnership has no bearing on how you file your own tax return. The partnership will distribute K-1 to each of you separately, but you'll report both of them on the same return.",
"title": ""
},
{
"docid": "c3267da06090af6e036fcf7b12ec78df",
"text": "\"I agree with some of the points of the other answers but why not avoid all the guesswork? I highly recommend you not charge him now. Wait until the end of the year when you have much more information about both of your companies and then you can run the numbers both ways and decide if it would benefit you (collectively). If either of your businesses runs on a cash basis and you decide to invoice, just make sure the check is deposited before Dec 31. Update: If you want to do this for 2016, at least your husband's business would have to be using an accrual basis (since it's too late to take the deduction on a cash basis). Simply run the numbers both ways and see if it helps you. If it doesn't help enough to warrant it for 2016 you could rerun the numbers near the end of 2017 to see if it helps then. Diclaimer: I think it's OK to do this type of manipulation for the scenario you described since you have done (or are doing) the work and you are charging a reasonable fee, but realize that you shouldn't manipulate the amount of the invoice, or fabricate invoices. For example, you shouldn't ever think about such things as: \"\"If I invoice $50K instead of $3K, will that help us?\"\"\"",
"title": ""
},
{
"docid": "a36ebec5f995e73425f1d8eab546d735",
"text": "Only if your work on the side is making you at least £60,000 profit a year. The overheads are just not worth it if you make less. Working as a sole trader, you can still claim for expenses incurred in the course of your business. You can also claim a percentage of your computer costs, even though you may use the computer for gaming. This is not unreasonable as the computer is necessary for your work. The Inland Revenue accept the fact that some assets are part work-related. In your case, as a web and mobile phone developer, I expect the percentage to be at least half, if not a lot more. If you need to travel in the course of your work you can claim a percentage for your car. You can include other small expenses such as telephone, stationery, electricity etc but don't go overboard. The important point to remember is that you must be able to defend the expenses claimed as work-related, so long as you can do this there is no problem. Remember to keep good records of all your expenses. This is on-going throughout the year and is much more work than filling out your tax return. The software on the IR self-assessment site is excellent, so it's conceivable that you may not need an accountant if you are prepared to do your own tax return. However, if you feel unsure employ an accountant initially and take it from there.",
"title": ""
},
{
"docid": "7472e8cf6efbfb7589c2c05575b11d70",
"text": "Eric is right regarding the tax, i.e. ordinary income on discount, cap gain treatment on profit whether long term or short. I would not let the tax tail wag the investing dog. If you would be a holder of the stock, hold on, if not, sell. You are considering a 10-15% delta on the profit to make the decision. Now. I hear you say your wife hasn't worked which potentially puts you in a lower bracket this year. I wrote Topping off your bracket with a Roth Conversion which would help your tax situation long term. Simply put, you convert enough Traditional IRA (or 401(k) money) to use up some of the current bracket you are in, but not hit the next. This may not apply to you, depending on whether you have retirement funds to do this. Note - The cited article offers numbers for a single person, but illustrates the concept. See the tax table for the marginal rates that would apply to you.",
"title": ""
},
{
"docid": "c47715d64b4892c4e46d1e19ff168855",
"text": "Check out personal finance. But, my guess is no. Given you are married and you were prepared to contribute $x out of the entire family pot, why don't they just contribute $x from their portion of the entire family pot? Net effect should be similar or identical. (I'm not an accountant nor married, so enjoy the grain of salt).",
"title": ""
},
{
"docid": "bd1ea9e7005d801f8ae1f194260d983f",
"text": "As far as accounting goes, if you speak with a CPA, you may be able to reduce the business tax liability. So... the company buys the truck, deducts it, and the adjusted gross income drops, so he'd pay less tax. Or something. You said anything helps, hope you meant it!",
"title": ""
}
] |
fiqa
|
a93b19dc268ec7f3390b274d54e96c97
|
Do I need a Like-Kind Exchange when selling a personal vehicle for a company car
|
[
{
"docid": "f195506e5ad64e7c9534b745b99e9442",
"text": "You cannot do a like-kind (Sec. 1031) exchange for personal property, only for business/investment property. Since you said that you traded in your personal car - no like-kind exchange is possible. Also, since the new car doesn't belong to you - you didn't actually perform any exchange. You sold your old car, but you didn't buy a new one. If Turbo-Tax suggests you to fill the exchange form - you must have entered something wrong to make it think there was an exchange. Check your entries again, specifically - check if you entered that you purchased a new car instead of the old one, since you didn't. See an example of where to start looking here.",
"title": ""
}
] |
[
{
"docid": "e9a987db33de9523b41bc2e7e1130131",
"text": "If you are exchanging money for travel then you should not have to pay any capital gains on any exchange that is in your favour. Exchanging currency for travel is different from trading currencies for an attempt at making profits.",
"title": ""
},
{
"docid": "dc5fd5eeb9a1417fa39f3985391b0af7",
"text": "NEVER combine the negotiations for trade-in of an old car and purchase of a new one (and/or financing), if you can avoid doing so. Dealers are very good at trading off one against the other to increase their total profit, and it's harder for you to walk away when you have to discard the whole thing. These are separate transactions, each of which can be done with other parties. Treat them as such.",
"title": ""
},
{
"docid": "d548dfab650da351f25dd51212badb2e",
"text": "Sounds like 'up-selling'. You can harden yourself into being a 'tough sell' but it takes time and a lot of shopping. The quickest way to put up a defense is to never ever make a purchase over $100 without 'sleeping on it'. Just walk away, tell them you'll think it over, and go do some more research. Don't go back into a dealership or store that has hit you with guilt or pressure or a crazy price or whatever. Find a no-haggle or no-frills source, or even a source to buy a used version of the item you want.",
"title": ""
},
{
"docid": "55765f7687c9396197d73e17d5c30658",
"text": "Since I'm missing the shortest and simplest answer, I'll add it: A car also doesn't offer dividends, yet it's still worth money. A $100 bill doesn't offer dividends, yet people are willing to offer services, or goods, or other currencies, to own that $100 bill. It's the same with a stock. If other people are willing to buy it off you for a price X, it's worth at least close to price X to you. In theory the price X depends on the value of the assets of the company, including unknown values like expected future profits or losses. Speaking from experience as a trader, in practice it's very often really just price X because others pay price X.",
"title": ""
},
{
"docid": "bcd026c79da30d4424b9df38978406a4",
"text": "\"The question is about the dealer, right? The dealer isn't providing this financing to you, Alfa is, and they're paying the dealer that same \"\"On the Road\"\" price when you finance the purchase. So the dealer gets the same amount either way. The financing, through Alfa, means your payments go to Alfa. And they're willing to give you 3,000 towards purchase of the car at the dealer in order to motivate those who can afford payments but not full cash for the car. They end up selling more cars this way, keeping the factories busy and employees and stockholders happy along the way. At least, that's how it's supposed to work out.\"",
"title": ""
},
{
"docid": "ed9e547c7fe50befd984c0eaa6a63f05",
"text": "The best way to do this is to pay for the entire car, including gas, insurance, and repairs, from S-corp funds, then meticulously track how many miles are used for personal and how many miles for business. If you pay with S-corp funds, you will claim the personal miles as a taxable benefit from the S-corp on your personal return. The S-corp can then claim all the expenses and depreciation on the vehicle, reducing the S-corp's tax liability.",
"title": ""
},
{
"docid": "2f6a7ea3d02bd46917beb439d69d6a6e",
"text": "It looks like JP Morgan can convert your holding to unsponsored ADRs until July.. In any event, you should not completely lose the equity. Volvo still exists as a public company, it's just not tradable on US exchanges. Q1: Yes, you'd need a JPM account. Your broker should have offered a similar service. If they didn't they are not a broker. Q2: You own 30 shares in Volvo. You need to get your broker to either sell them (off-exchange now) or tell you how to gain access to them.",
"title": ""
},
{
"docid": "d6044c3a4b75698748dd4995f956f311",
"text": "That is a desirable model so I doubt you could get it into the low 30's. Also you mentioned you want it optioned out. That would also reduce the leverage you have in the negotiation. Look at True Car to find out what you'd actually be paying. You will either get the car you want or the price you want.",
"title": ""
},
{
"docid": "e50b5bb1e442c035db4970ad52e0f7bb",
"text": "Yes, but then either of you will need the other's permission to sell the car. I strongly recommend you get an agreement on that point, in writing, and possibly reviewed by a lawyer, before entering into this kind of relationship. (See past discussions of car titles and loan cosigners for some examples of how and why this can go wrong.) When doung business with friends, treating it as a serious business transaction is the best way to avoid ruining the friendship.",
"title": ""
},
{
"docid": "a3d8fefc639c7cb5e3c2ba260f5dd1fd",
"text": "\"I'm going to ignore your numbers to avoid spending the time to understand them. I'm just going to go over the basic moving parts of trading an upside down car against another financed car because I think you're conflating price and value. I'm also going to ignore taxes, and fees, and depreciation. The car has an acquisition cost (price) then it has a value. You pay the price to obtain this thing, then in the future it is worth what someone else will pay you. When you finance a car you agree to your $10,000 price, then you call up Mr. Bank and agree to pay 10% per year for 5 years on that $10,000. Mr. Banker wires over $10,000 and you drive home in your car. Say in a year you want a different car. This new car has a price of $20,000, and wouldn't you know it they'll even buy your current car from you. They'll give you $7,000 to trade in your current car. Your current car has a value of $7,000. You've made 12 payments of $188.71. Of those payments about $460 was interest, you now owe about $8,195 to Mr. Banker. The new dealership needs to send payment to Mr. Banker to get the title for your current car. They'll send the $7,000 they agreed to pay for your car. Then they'll loan you the additional $1,195 ($8,195 owed on the car minus $7,000 trade in value). Your loan on the new car will be for $21,195, $20,000 for the new car and $1,195 for the amount you still owed on the old car after the dealership paid you $7,000 for your old car. It doesn't matter what your down-payment was on the old car, it doesn't matter what your payment was before, it doesn't matter what you bought your old car for. All that matters is how much you owe on it today and how much the buyer (the dealership) is willing to pay you for it. How much of this is \"\"loss\"\" is an extremely vague number to derive primarily because your utility of the car has a value. But it could be argued that the $1,195 added on to your new car loan to pay for the old car is lost.\"",
"title": ""
},
{
"docid": "94f593b5521152a87c5459a25f4a9088",
"text": "\"In the US you are not required to have a corporation to use business expenses to offset your income. The technical term you need is \"\"deducting business expenses\"\", and in matters of taxes it's usually best to go straight to the horse's mouth: the IRS's explanations Deducting Business Expenses Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business operates to make a profit. What Can I Deduct? Cost of Goods Sold, Capital Expenses, Personal versus Business Expenses, Business Use of Your Home, Business Use of Your Car, Other Types of Business Expenses None of this requires any special incorporation or tax arrangements, and are a normal part of operating a business. However, there is a bit of a problem with your scenario. You said you \"\"invested\"\" into a business, but you mentioned buying specific things for the business which is not generally how one accounts for investment. If you are not an owner/operator of the business, then the scenario is not so straight-forward, as you can't simply claim someone else's business expenses as your own because you invested in it. Investments are taxed differently than expenses, and based upon your word choices I'm concerned that you could be getting yourself into a bit of a pickle. I would strongly advise you to speak with a professional, such as a Certified Public Accountant (CPA), to go over your current arrangement and advise you on how you should be structuring your ongoing investment into this shared business. If you are investing you should be receiving equity to reflect your ownership (or stock in the company, etc), and investments of this sort generally cannot be deducted as an expense on your taxes - it's just an investment, the same as buying stock or CDs. If you are just buying things for someone else's benefit, it's possible that this could be looked upon as a personal gift, and you may be in a precarious legal position as well (where the money is, indeed, just a gift). And gifts of this sort aren't deductible, either. Depending on how this is all structured, it's possible that you should both consider a different form of legal organization, such as a formal corporation or at least an official business partnership. A CPA and an appropriate business attorney should be able to advise you for a nominal (few hundred dollars, at most) fee. If a new legal structure is advisable, you can potentially do the work yourself for a few hundred dollars, or pay to have it done (especially if the situation is more complex) for a few hundred to a few thousand. That's a lot less than you'd be on the hook for if this business is being accounted for improperly, or if either of your tax returns are being reported improperly!\"",
"title": ""
},
{
"docid": "ea582ead73b55789e8dd68ef14643254",
"text": "I don't believe you can do that. From the IRS: Finally, certain types of property are specifically excluded from Section 1031 treatment. Section 1031 does not apply to exchanges of: I highlighted the relevant items for emphasis.",
"title": ""
},
{
"docid": "9ad9769a769d69359409fab55b1fd611",
"text": "Check the employee-friends-and-family sales contract, which your friend should be able to get quite easily. There is almost always a minimum holding period before resale clause, specifically to prevent this kind of scenario. Without that clause, the dealers tend to riot... Also, remember that a car loses a huge percentage of its value the moment it leaves the lot. Odds are that you'd be doing well to find someone willing to buy it from you at the discounted price. If you don't want this car, ask your friend not to buy it and get one you do want. Seriously.",
"title": ""
},
{
"docid": "a195bc1db3e3089f9216fa4126fd4007",
"text": "\"Yes, you can do that, but you have to have the stocks issued in your name (stocks that you're holding through your broker are issued in \"\"street name\"\" to your broker). If you have a physical stock certificate issued in your name - you just endorse it like you would endorse a check and transfer the ownership. If the stocks don't physically exist - you let the stock registrar know that the ownership has been transferred to someone else. As to the price - the company doesn't care much about the price of private sales, but the taxing agency will. In the US, for example, you report such a transaction as either a gift (IRS form 709), if the transaction was at a price significantly lower than the FMV (or significantly higher, on the other end), or a sale (IRS form 1040, schedule D) if the transaction was at FMV.\"",
"title": ""
},
{
"docid": "9100a3e1cee41f47fc7d15a0ffe99996",
"text": "So I want to sell my 100 shares of AAPL to him at a price of 10 or even 1 US Dollar. Is that legal/allowed? Of course. It's your stocks - do with it what you want. if the two persons are not served by a same broker. You'll have to talk to your broker about the technicalities of the transaction. if the person who sell are US citizen and the person who buy are not, and and vice-versa Since you asked specifically about US citizenship, I'll assume you're in the US or the transaction is taking place in the US. Citizenship has nothing to do with it (except may be for economic sanctions against Russians or Iranians that may come into play). What is important is the tax residency status. Such a transfer is essentially a gift, and if you're a US tax resident (which doesn't correlate to your immigration status necessarily) - you'll have to deal with the gift tax consequences on the discount value. For example - you have 100 shares of AAPL which you sold to your friend for $1 each when the fair market value (FMV) was $501. So essentially, the friend got $50,100 value for $100. I.e.: $50K gift. Since this amount is above the annual $14K exemption - you'll have to deal with the gift tax and file gift tax return. There are also consequences for the capital gains tax for both you and your friend. I suggest you talk to a licensed tax adviser (EA/CPA licensed in your State) about the specifics given your circumstances. If you (or the recipient) are also a foreign citizen/tax resident - then that country's laws also may affect your situation.",
"title": ""
}
] |
fiqa
|
c4397e2cd3ee6b25c7dbc65428bf5389
|
Why are earning credit card rewards often tied to groceries and gas?
|
[
{
"docid": "fad9d64626f90023c966ca639615a523",
"text": "Every reward program has to have a funding source. If the card gives you x percent back on all purchases. That means that their business is structured to entice you to pump more transactions through the system. Either their other costs are lower, or the increased business allows them to make more money off of late fees, and interest. If the card has you earn extra points for buying a type of item or from a type of store (home stores improvement in the Spring), they are trying to make sure you use their card for what can be a significant amount of business during a small window of time. Sometimes they cap it by saying 5% cash back at home improvement stores during the spring but only on the first $1500 of purchases. That limits it to $75 maximum. Adding more business for them, makes more money for them. Groceries and gas are a good year round purchase categories. Yes there is some variation depending on the season, and the weather, but overall there is not an annual cliff once the season ends. Gas and groceries account for thousands of dollars a year these are not insignificant categories, for many families are recession proof. If they perceive a value from this type of offer they will change their buying behavior. My local grocery store has a deal with a specific gas station. This means that they made a monetary deal. Because you earn points at the grocery store and spend points at the gas station, the grocery store is paying some compensation to the gas station every time you use points. The gas station must be seeing an increase in business so theoretically they don't get 100% compensation from the grocery store. In cases where credit cards give airline miles, the credit card company buys the miles from the airline at a discount because they know that a significant number of miles will never be used.",
"title": ""
},
{
"docid": "12ef3a6d25a6e009580684a05f3be92e",
"text": "\"There absolutely is a specific model that makes this so popular with so many credit card companies, and that model is \"\"per transaction fees\"\". Card companies also receive cost-sharing incentives from certain merchants. There is also a psychological reasoning as an additional incentive. When you want to accept credit cards as a source of payment as a business, you generally have three kinds of fees to pay: monthly/yearly subscription fees, percentage of transaction fee, and per transaction fee. The subscription fees can be waived and sometimes are expressed as a \"\"minimum cost\"\", so the business pays a certain amount whether you actually have people use credit cards or not. Many of these fees don't actually make it to the credit card companies, as they just pay the service providers and middle-men processing companies. The percentage of transaction fee means that the business accepting payment via credit card must pay a percentage usually ranging from 1-3% of the total transactions they accept. So if they get paid $10,000 a month by customers in the form of credit cards, the business pays out $100-300 a month to the credit card processor - a good portion of which will make it back to the credit card issuing company, and is a major source of income for them. The per transaction fee means that every time a transaction is run involving a card, a set fee is incurred by the business (which is commonly anywhere from $0.05 to $0.30 per transaction). If that $10,000 a month business mentioned previously had 10 customers paying $1,000 each at $0.10 a transaction, that's only $1 in fees to the credit card processors/companies. But if instead that business was a grocery store with an average transaction of $40, that's $25 in fees. This system means that if you are a credit card company and want to encourage people to make a specific kind of purchase, you should encourage purchases that people make many times for relatively small amounts of money. In a perfect world you'd want them to buy $1 bottles of water 5 times a day with their credit card. If the card company had 50,000 card holders doing this, at the end of 1 year the company would have $91,250,000 spread across 91,250,000 transactions. The card company might reasonably make $0.05 per transaction and %1 of the purchase total. The Get Rewarded For Drinking More campaign might earn the card company $912,500 in percentage fees and over $4.5 million in transaction fees. Yet the company would only have to pay 3% in rewards from the percentage fees, or $2.7 million, back to customers. If the card company had encouraged using your credit card for large once-yearly purchases, they would actually pay out more money in rewards than they collect in card-use fees. Yet by encouraging people to make small transactions very often the card company earns a nice net-income even if absolutely every customer pays their balance in full, on time, and pays no annual/monthly fees for their card - which obviously does not happen in the real world. No wonder companies try so hard to encourage you to use your card all the time! For card companies to make real money they need you to use your credit card. As discussed above, the more often you use the card the better (for them), and there can be a built-in preference for small repeated transactions. But no matter what the size of transaction, they can't make the big bucks if you don't use the card at all! Selling your personal information isn't as profitable if they don't have in-depth info on you to sell, either. So how do they get you to make that plastic sing? Gas and groceries are a habit. Most people buy one or the other at least once a weak, and a very large number of us make such purchases multiple times a week. Some people even make such purchases multiple times a day! So how do people pay for such transactions? The goal of the card companies is to have you use their product to pay as much as possible. If you pay for something regularly you'll keep that card in your wallet with you, rather than it getting lost in a drawer at home. So the card companies want you to use your card as a matter of habit, too. If you use a card to buy for gas and groceries, why wouldn't you use it for other things too? Lunch, dinner, buying online? If the card company pays out more and makes less for large, less-regular purchases, then the ideal for them is to have you use the card for small regular purchase and yet still have you use the card for larger infrequent purchases even if you get reduced/no rewards. What better way to achieve all these goals than to offer special rewards on gas and groceries? And because it's not a one-time purchase, you aren't so likely to game the system; no getting that special 5% cash-back card, booking your once-per-decade dream vacation, then paying it off and cancelling it soon after - which would actually make the card company lose money on the deal. In the end, credit card companies as a whole have a business model that almost universally prefers customers who use their products regularly and preferably for small amounts a maximum number of times. They want to reduce their expenses (like rewards paid out) while maximizing their revenue. They haven't figured out a better way to do all of this so well as to encourage people to use their cards for gas and groceries - everything else seems like a losing proposition in comparison. The only time this preference differs is when they can avoid paying some or all of the cost of rewards, such as when the merchants themselves honor the rewards in exchange for reduced or zero payment from the card companies. So if you use an airline card that seems to give you 10% back in airline rewards? Well, that's probably a great deal for the card company if the airline provides that reward at their own expense to try to boost business. The card company keeps the transaction-related fees and pays out almost nothing in rewards - the perfect offer (for them)! And this assumes no shenanigans like black-out periods, \"\"not valid with any other offers\"\" rewards like on cars where only a fool pays full MSRP (and sometimes the rewards are tagged in this sort of way, like not valid on sale/clearance items, etc), expiring rewards, the fact that they know not everyone uses their rewards, annual fees that are greater than the rewards you'll actually be obtaining after accounting for all the other issues, etc. And credit card industries are known for their shenanigans!\"",
"title": ""
}
] |
[
{
"docid": "2d2f8e0cbddaab8964e4cd5e7221ccf6",
"text": "You must understand that not everyone has or can get credit cards. Consider that those who are in the the lowest 20-30% of income tend to have fewer credit cards (or none), and lower credit debt, although some have quite high credit card debt relative to their income. So you really aren't comparing the same demographics (the population of all income earners, used to calculate average income, and the population of all credit card debt holders, are not the same groups of people). Once you remove those folks from consideration, then credit card usage may still average higher, but accept that it is unusual for people making less than $20K-30K/year to have much credit card debt. You must understand that wealth and income are two very different (although related) concepts. One must note that there are millions of people in the U.S. who have wealth; they have net assets of over $1M (excluding their homes). Many of those folks have assets greatly exceeding $1M. And although it might seem foolish to carry a large balance on their credit cards, they may have quite low interest rates, and simply find it simpler and more convenient to use credit cards in lieu of personal loans. Suppose you have $2M in net assets, and want to buy a classic car or a diamond necklace. Charging $30K and carrying the balance until a dividend check arrives may make sense. Understand also that not everyone makes the same choices, or good choices. Carrying a credit card balance may appear like a poor choice, especially when you are not wealthy, or have lower income. But suppose you have a high credit limit across several cards, and you need to handle a short-term financial challenge (car repair, layoff, medical bills, etc). You might use the credit card to pay for that purchase, essentially financing an extraordinary event over a longer period of time. And although having a balance of more than 5-10% of your monthly income may seem foolish to some, it may make sense to others. And some people choose to carry balances of 50% to 100% of their credit limit. Others realize that keeping their credit utilization below 30%, 20%, or 10% of the credit limit is a better plan (both interest rate and risk wise).",
"title": ""
},
{
"docid": "ac18f121ae9ec8c4697b03740588d5c8",
"text": "Michael Pryor's answer is accurate to the actual question asked. The current accepted answer from Dheer is not entirely true but roughly provides an overview of the different entities involved in a typical transaction, with some wrong terminologies, corrected and improved below. The issuing bank, the one that issues the credit card to the customer. When it comes to the service fee split, the issuer bank takes on the majority of the cut in the service fee paid by the merchant to the different entities. For example, on a 2.5% overall fee paid by merchant, roughly 1.5% goes to the issuer, 0.3% goes to the card network (visa, master card, etc) and the remaining 0.7% goes to the acquiring bank. Reward programs have a partnership with participating merchants, where merchants are charged a higher service fee, for the likelihood of driving a higher volume of transactions to the merchant. A portion of the rewards also comes from the issuer, who shares a percentage of their fee back to the customer, in exchange for the same likelihood of making more profit through increased volume in total transactions. For example, a reward program may charge merchants 4.5% fee, with 3.5% of it going to the issuer. Upto 3% of this can be given back to the customer for their loyalty in using the card service. The banks can afford to take as little as 0.5% instead of their regular 1.5% due to the increased volume of transactions and the fixed fee they collect as membership fee. Note that costco has a similar business plan, but they make money entirely of membership fee. So with enough clients, banks can theoretically afford to run their program entirely on membership fees, costing no additional service fee to merchants. The service fee depicted above is arbitrary, and it can be lowered if the merchant is also a client of the issuing bank, that is, both the issuing bank and acquiring bank are the same. So it is kind of a win-win-win situation. And as usual, the banks can afford to make a larger income, if the customer ends up paying interest for their credit - although the rewards program is not designed accounting on this.",
"title": ""
},
{
"docid": "17e6cb39363323512e4c56d5b0e5e694",
"text": "Credit cards and debit cards make up the bulk of the transactions in the US. Visa and Mastercard take a percentage of each credit card transaction. For the most part, this fee it built into the price of what you buy. That is, you don't generally pay extra at the grocery store if you use a credit card (gasoline purchases are a notable exception here.) If you were getting something like 2% of a third of all the retail transactions in the US, you'd probably not want to rock the boat too much either. Since there is little fraud relative to the amount of money they are taking in, and it can often be detected using statistical analysis, they don't really stand to gain that much by reducing it through these methods. Sure they can reduce the losses on the insurance they provide to the credit card consumer but they risk slowing down the money machine. These companies want avoid doing something like reducing fraud by 0.5% revenues but causing purchases with the cards drop by 1%. More security will be implemented as we can see with the (slow) introduction of chip cards in the US but only at a pace that will prevent disruption of the money machine. EMV will likely cause a large drop in CC fraud at brick-and-mortar stores but won't stop it online. You will likely see some sort of system like you describe rolled out for that eventually.",
"title": ""
},
{
"docid": "593a607429bbea53a8c549008657a60f",
"text": "\"The real reason credit cards are so popular in the US is that Americans are lazy and broke, and the credit card companies know how to market to that. Have you ever heard of the $30k millionaires? These were individuals that purchased as if they were some of the wealthy elite, but had no real money to back it up. American society has pushed the idea of \"\"living on credit\"\" for quite some time now. An idea that is even furthered by watching the US government operate solely on credit. (Raise the debt ceiling much?) Live in America for more than six months and you will be bombarded with \"\"Pre-Approved Deals\"\" with low introductory rates that are designed to sucker the average consumer into opening multiple accounts that they don't need. Then, they try and get you to carry a balance by allowing low minimum payments that could take in the neighborhood of 20 years to pay off, depending on carried balance. This in turn pads the credit companies' pockets with all of the interest you now pay on the account. The few truly wealthy Americans do not purchase on credit.\"",
"title": ""
},
{
"docid": "11892ed9e5d1eccc37a4e36c24e5b22a",
"text": "Correct. By putting expenses on to a credit card which does not charge interest during the grace period, and paying that balance every month, in effect you earn interest on money you've already spent. However, first, savings account interest is something like .05% right now depending on your bank. Yeah it's money, but seriously, that's 4 cents per month on $1000. Second, two things can make this very wrong. If you carry a balance, you'll pay much more in interest than you'd get from practically any investment you could make with the cash in the meantime. Second, a debit card can be used to get cash you already have from an ATM (not everyone takes credit, you know), and it'll cost you little or nothing. Use a credit card for the same purpose and you're paying 40% from the second the money comes out of the machine. Also correct. Rewards cards earn you more the more they're used. That's because the card issuer makes money based on usage; they get 3% of each transaction. They're happy to turn 1% of that, up to a limit or subject to a spending floor, back around to you. Again, check the terms and conditions. Most cards have a limit on total rewards. Many of them also have fees, either while you hold the card or when you try to redeem the rewards. Look for a card with high limits or no limits on rewards from spending, and with no annual fee or reward redemption fee. In addition to the above, you build good credit history with good spending patterns. However, your credit score can fluctuate wildly, because on one day you have very low leverage (percent of credit limit used), and on the next you've bought $200 in groceries and so your leverage went up 20% on a card with a $1000 limit. Leverage under 10% is good, leverage under 40% is OK and leverage over that starts looking bad. With a $1000 limit, with you maxing it out and then paying it off, your credit score can fluctuate by 30 points on any given day.",
"title": ""
},
{
"docid": "d8adc7d4160959f688ae4e377b73b715",
"text": "In the case of reward cards, different cards may offer different rewards for different kind of purchases. For example, in the UK, one of the Amex cards offers 1.25% cashback on all purchases, whereas one of the Santander cards offers 3% on fuel, 2% or 1% on certain other transactions, and nothing on others. Of course, you then have to remember to use the right card! Another reason is that a person may use a card for a while, build up a good credit limit, and then move to a different card (perhaps because it has better rewards, or a lower interest rate, etc) without cancelling the first. If it costs nothing to keep the first card, then it can be useful to have it as a spare.",
"title": ""
},
{
"docid": "124cae85af8990ca07a7801c5d000706",
"text": "Only reason I can think of is that having a credit card, or several, is handy for buying stuff on-line, or not having to haul around a fat wallet full of cash. Of course for some of us, getting the cash back and 0% interest periods are nice, too, even if we don't really need the money. Same as for instance trying to get good mpg when you're driving, even if you could easily afford to fill up a Hummer. It's a game, really.",
"title": ""
},
{
"docid": "f032940278daca72683096e577819184",
"text": "It is much simpler than any of that. People who make money have a greater capacity to pay their bills. Credit card companies make money off of people who can afford to pay several hundred dollars a month in interest charges. If you only make 500 a month you can not afford to pay 200 in interest. So their cost of doing business with you is higher. These cards are issued to make money. And they make their money off of people paying 12-29% interest on their 5k+ credit limits they have nearly maxed.",
"title": ""
},
{
"docid": "ce7c0d1463f54bb3023002cd4b68a3ca",
"text": "Think about the credit card business model... they have two revenue generators: interest and fees from borrowers and commissions and fees to merchants. The key to a successful credit card is to both sign up lots of borrowers AND lots of merchants. Credit card fortunes have improved dramatically since the 1990's when formerly off-limits merchants like grocery stores began to accept cards. So when a credit card lets you just pull cash out of any ATM, there are a few costs they need to account for when pricing the cost for such a service: Credit card banks have managed to make cash advances both a profit center and a self-serving perk. Knowing that you can always draw upon your credit line for an emergency when cash is necessary makes you less likely to actually carry cash and more likely to just rely on your credit card.",
"title": ""
},
{
"docid": "d05eb6c32d1e54ec6b7e038b6de18383",
"text": "I actually just did that with my Chase Freedom card. They rotate categories every 3 months, and from April-June it was 5% back at grocery stores. So I bought a ton of gas cards and got my 5% back. Next I figured out I would be clever and buy a ton of store gift cards (grocery gift cards) right at the end of the quarter, then use those in the future to purchase gas cards. Well, I just tried that a couple days ago and discovered the store refuses to sell a gift card if you're paying with a gift card! So now I'm stuck with $1,000 in grocery cards until I use them in actual grocery purchases haha One of the things about this grocery store is they partner with a gas station on their rewards program. They offer 10 cents off a gallon with every $100 spent in store, and they double it to 20 cents off a gallon if you buy $100 in gift cards. Then on the back of the receipt is a coupon for 10 cents off per gallon -- which they double on Tuesdays. Unfortunately I think I'm one of the only people that takes this much advantage of the program :-/ Side note: I actually just changed the billing cycle of my Chase Freedom card to end on the 24th of the month. That way I can charge a bunch of rewards in the final 6-7 days of the quarter. And if I have a $0 balance on the 24th, my bill isn't due for 7 weeks -- interest free! And Chase Freedom has never cared if you purchase gift cards with their quarterly rewards program. I also gave them a courtesy email giving the specific store and $$$ amount that was going to be charged, and of course they still called me with a 'fraud alert'...",
"title": ""
},
{
"docid": "c3fc85dd71f3a47adf539ee2ef8c1ebd",
"text": "\"First I want to be sure Op understands how \"\"Credit Utilization\"\" is scored as this confuses many folks here in the US. There is no \"\"reward\"\" for charging money or carrying balances, only penalty. If you have one credit card with a $10,000 limit and owe $8,000 you have an 80% utilization which will signal to banks that you are having financial difficulties. (Anything over 30% on a single card is usually penalized significantly.) The ideal utilization is something around 0, which is in the ballpark of the 5% Op mentioned. Again there is never any direct benefit to your credit of spending a penny on any of your credit cards.* Banks offer the best rates to people that pay off their balances each month or don't use their cards in the first place. Why? Despite the system being imperfect in many ways, utilization is a good indicator. Example: If you have a card with a $10,000 limit and pay it off every month that speaks to you being a good risk. If you compared this person to the person above, who do you think would be the most likely to pay back a car loan? Finally, Utilization is a small part of the credit score. I would call it more of a \"\"hurdle\"\" than a factor, at least concerning good rates and approvals. Most of your credit, is based on length of history, paying on time, and having multiple types of credit. Real life example: I had a relative that had perfect payment history for decades. They got divorced and started accumulating a balance. The person got other cards with 0% apr to avoid the interest, but their balance only grew. -They had to use the card to make ends meet, etc. (3 kids, single parent) They ended up filing a sizable bankruptcy a few years later. This was one of the most responsible people I've ever known. (Yes that statement will seem far fetched to someone else. It was almost impossible to get them to file bankruptcy, even though there was no way to ever pay the money back.) The point? Utilization shows a more 'current' picture than some of the other portions due. - Had those banks used the high utilization as a warning sign they would have saved a lot of money. A 'fun' way of looking at credit: Sometimes I describe credit score as a popularity contest. If you really 'need' money banks are not going to help you. However if your credit shows everyone is lining up to loan you money, other banks are going to want in too. \"\"Banks only make loans to people that don't need them.\"\" *** Spending a lot on Credit Cards does sometimes have the indirect effect of getting balance increases that could have a slight increase in your score. This happens less than it did prior to the financial fiasco. Also the effect of this is on the score negligible unless carrying a balance. ( And the person carrying a balance also has a lower score anyways.) Additionally someone charging less could probably get a similar raise if they asked for it. (Raises vary greatly by issuer.))\"",
"title": ""
},
{
"docid": "bb5d9d9e02c33392ccae4b67b32b3344",
"text": "Those extra treat points have to come from somewhere, and they come from American Express charging merchants a higher percentage than Visa or Mastercard. So it's less attractive for those merchants to accept it.",
"title": ""
},
{
"docid": "eb3441ad32525ab242231c247a860201",
"text": "\"There is also the very simple fact that cash is a *significantly* self-limiting thing: you are limited in amount you can spend on any give day to the cash you have on hand -- this along makes you either reticent to spend it, forces you to spread your purchases (or forgo one in order to enable another), and/or requires additional planning to spend larger amounts. Conversely, most debit & credit cards while they also have some limits on them, enable far more free spending. So whether the spending of cash is a negative \"\"painful\"\" reaction, or really just an awareness that their available resource is being reduced, would be a better question. After all, similar things are seen in other things that have short-term physical limits: smokers tend to smoke cigarettes more quickly at the beginning of a new pack, and tend to space out the intervals between them as the pack empties; likewise with other resources (food, beer, soda) within a home -- if/when the supply is abundant, we tend to gorge & snack, as the available supply decreases, we cut back.\"",
"title": ""
},
{
"docid": "328239ea8f56ab3fdff5eb918da716a7",
"text": "Don't really know but I can guess. Firstly, everyone thinks the price of gas is too high. You drive to work every day, and gas is basically the only product who's price is advertised from the street! From that perspective. So mentally, I argue, we overvalue an extra 1 percent discount on gas. It's only worth maybe 60 cents a month to me, but worth a lot of other interchance fees for the credit card company. Secondly, gas stations are a prime robbery target. Credit cards mean less cash in the till. And less chance for employees to steal from the till, and less chance of counterfit money. Finally, it's a competitive market. If stations don't accept a card, they'll lose business to elsewhere. There's a gas station on either side of an intersection, and you can always tell which station is a few cents cheaper because it's the one with customers fueling up while the other one is a ghost town. They feel they have to compete on convenience or go under, and the credit card companies recruit you into the game with higher cash back rewards.",
"title": ""
},
{
"docid": "da786484da35c61111564223a3e58038",
"text": "Because large stores do not pay their cashiers enough that the companies can dock the employees' pay if they allow a bad credit card to go through. So most cashiers at large stores won't take the extra effort to check the card properly. As a result, large stores come up with other ways to handle potential credit card fraud. For example, they calculate a certain amount of fraud as expected and include it in their price calculations. Or they can use cameras to catch fraudsters. At small stores, there is a much higher chance that the cashier is either the owner or a relative of the owner. And even those who are unrelated tend to be hired by the owner directly. The owners do have their pay docked if a bad credit card is accepted, as their pay is the profit from the business. So they tend to create protocols that, at least in their mind, reduce the chance of taking a bad credit card. The cashier is often the only employee in the store to check anything. Another issue is that small stores have a harder time getting approved to accept credit cards. The companies that process the credit cards can take back their machine if there is a lot of fraud. So the companies can require more from small stores than they can from big stores. Those companies can't stop processing cards for Safeway, because they need Safeway as much if not more than Safeway needs them. So the processors have more leverage to make small stores do what they want. And small stores can feasibly fire (non-owner) cashiers who do not comply. Owners of course can't be fired. But they are far more vulnerable to business losses. So it is really important to an owner to keep the credit card machine. And it is pretty important to avoid losses, as it is their money directly. Relatives of owners may be safe from firing, but they are not safe from family retaliation like taking away television privileges. And they may also think of the effect of business losses on the family. Large stores can fire cashiers, but they are chronically understaffed and almost none of their cashiers will consistently follow a strict protocol. Since fraudsters only need to succeed once, an inconsistent application is almost as bad as no application. They might charge the cashiers for fraud, but then they would have to pay the cashiers more than minimum wage specifically for that reason (e.g. a $50 a month bonus for no fraud). For many of them, it's cheaper to risk the fraud. And large stores can't mix owners and relatives of owners into the mix. It's hard to say who owns Safeway. And even if you could, the relationship between one fraud transaction and the dividend paid on one share of stock is tiny. It would take thousands of shares to get up to a penny.",
"title": ""
}
] |
fiqa
|
63935d0e40ccc63de66fb9fe1e35833a
|
1099 versus corporation to corporation for payments?
|
[
{
"docid": "15ad22bcdc1ba71d64e2cdba622599e3",
"text": "Do not mix personal accounts and corporate accounts. If you're paid as your self person - this money belongs to you, not the corporation. You can contribute it to the corporation, but it is another tax event and you should understand fully the consequences. Talk to a tax adviser (EA/CPA licensed in your State). If they pay to you personally (1099) - it goes on your Schedule C, and you pay SE taxes on it. If they pay to your corporation, the corporation will pay it to you as salary, and will pay payroll taxes on it. Generally, payroll through corporation will be slightly more expensive than regular schedule C. If you have employees/subcontractors, though, you may earn money which is not from your own performance, in which case S-Corp may be an advantage.",
"title": ""
}
] |
[
{
"docid": "71e4607b1121d82861ac730ef02093d7",
"text": "Hey, sole proprietorships called (don't those comprise roughly 50% of all businesses?) they want to know what corporate tax is. Hell, most of them want to know what payroll tax is. They just know it's not fun paying both halves of it. From my perspective over on the incorporated side: Oh HEY, I'm incorporated as an S-Corp or and LLC -remember those?- and they're going to suck out five percent MORE of my GROSS. I'll fax you my cash flows statement. It's going to look like a severed artery. For those lucky enough to be joining us from the C-Corp world, enjoy trying to retain your key employees without seeing your payroll costs go through the roof. If you have all your employees by the balls because they don't have the skills to easily transfer [if you think you do, hint: you don't] then I hope you have the stomach to watch them all falling further and further behind and into debt. I don't.",
"title": ""
},
{
"docid": "1406ad7d12bc3a17399d0be238045b5b",
"text": "I am surprised no one has mentioned the two biggest things (in my opinion). Or I should say, the two biggest things to me. First, 1099 have to file quarterly self employment taxes. I do not know for certain but I have heard that often times you will end up paying more this way then even a W-2 employees. Second, an LLC allows you to deduct business expenses off the top prior to determining what you pay in taxes as pass-through income. With 1099 you pay the same taxes regardless of your business expenses unless they are specifically allowed as a 1099 contractor (which most are not I believe). So what you should really do is figure out the expense you incur as a result of doing your business and check with an accountant to see if those expenses would be deductible in an LLC and if it offsets a decent amount of your income to see if it would be worth it. But I have read a lot of books and listened to a lot of interviews about wealthy people and most deal in companies not contracts. Most would open a new business and add clients rather than dealing in 1099 contracts. Just my two cents... Good luck and much prosperity.",
"title": ""
},
{
"docid": "50d2bfc70b59903dfa3bc86ce72b6e9b",
"text": "I'll have to read the discussion. I did mean owed. A quick reading of the decision seemed to indicate that the law they were considering was for 3rd party debt collection agencies. They decided that if the company was directly owed the money, they weren't under that law. If it was a unanimous decision it seems like there must have been something pretty obvious about it. Thanks for the link to the discussion.",
"title": ""
},
{
"docid": "eb6a63bb1abd8ee6d5c4b1cde0087a9f",
"text": "I took littleadv's advice and talked to an accountant today. Regardless of method of payment, my US LLC does not have to withhold taxes or report the payment as payments to contractors (1099/1042(S)) to the IRS; it is simply a business expense. He said this gets more complicated if the recipient is working in the US (regardless of nationality), but that is not my case",
"title": ""
},
{
"docid": "6e7e5aa116a48544c4e08e7a5197adfa",
"text": "Careful. I would personally need a LOT more than $5 more per hour to go from W-2 employment to 1099 employment. It boils down to two reasons: (1) employers pay a huge amount of taxes on behalf of their employees, and (2) you would have to pay all of your own withholding up front. Your current proposal from them doesn't account for that. There are also risks that you face as a 1099. On the first item, your employer currently pays 6.2% of your Social Security tax. You pay the other 6.2%. If you go to 1099 status, you will be self-employed as an independent contractor and have to pay the full 12.4% out of your increased 1099 wages. On the second item, your employer also does your withholding out of your paychecks based on what you tell them on a form W-4. If you're disciplined enough to pay this out yourself in estimated taxes every time you get a paycheck, great. Many people aren't and just see a much bigger paycheck with no taxes out of it, and end up with a large tax bill at the end of the year. Overall, there are some other considerations like healthcare and other benefits. These will not be available to you as a 1099 employee. You can also be terminated spontaneously, unless you have a specific contract length with the company. As I see it, not including any benefits you would receive, you're looking at LESS money in your pocket at $50/hr as a contractor than at your $48/hr. Your pay net social security deductions is: $48 x 40 hrs x 52 weeks = 99,840 * .938 = 93,649.92. As a 1099 @ $50/hr you would net $50 x 40 hrs x 52 weeks = 104,000 * .876 = 91,104. Then there are the rest of taxes, etc to figure out your real take-home pay. I'm not a tax advisor, but I would be very careful to get the whole picture figured out before jumping. I would ask for a lot more with the added risk you would take as an independent, too.",
"title": ""
},
{
"docid": "5d543db57b9da9b0caee694dbc6cf2fb",
"text": "There are different strategies but the short version is that they set it up so the US corporation pays a legal entity in a low-tax jurisdiction for the rights to use the IP which the company has transferred there previously. One such strategy is called the [Double Irish (possibly with a Dutch Sandwich)](http://en.wikipedia.org/wiki/Double_Irish_arrangement) which is what Apple, Google, Facebook and many others use.",
"title": ""
},
{
"docid": "8510a870bd602985400586f24d7396ab",
"text": "As littleadv says, if you're a sole proprietorship, you don't need to file a 1099 for money you pay yourself. You certainly will need to file a schedule C or schedule E to report the income. And don't forget SE to pay social security taxes on the income if you made a profit. If your company is a corporation, then -- I'm not a tax lawyer here, but I think the corporation would need to file a 1099 for the money that the corporation pays to you. Assuming that the amount is above the threshold that requires a 1099. That's normally $600, but it's only $10 for royalties.",
"title": ""
},
{
"docid": "521ca52299c5af07b7cf3157b6a45764",
"text": "\"TL;DR: Get a tax adviser (EA/CPA licensed in your State) for tax issues, and a lawyer for the Operating Agreement, labor law and contract related issues. Some things are not suitable for DIY unless you know exactly what you're doing. We both do freelance work currently just through our personal names. What kind of taxes are we looking into paying into the business (besides setup of everything) compared to being a self proprietor? (I'm seeing that the general answer is no, as long as income is <200k, but not certain). Unless you decide to have your LLC taxed as a corporation, there's no change in taxes. LLC, by default, is a pass-through entity and all income will flow to your respective tax returns. From tax perspective, the LLC will be treated as a partnership. It will file form 1065 to report its income, and allocate the income to the members/partners on schedules K-1 which will be given to you. You'll use the numbers on the K-1 to transfer income allocated to you to your tax returns and pay taxes on that. Being out of state, will she incur more taxes from the money being now filtered through the business? Your employee couldn't care less about your tax problems. She will continue receiving the same salary whether you are a sole proprietor or a LLC, or Corporatoin. What kind of forms are we looking into needing/providing when switching to a LLC from freelance work? Normally we just get 1099's, what would that be now? Your contract counterparts couldn't care less about your tax problems. Unless you are a corporation, people who pay you more than $600 a year must file a 1099. Since you'll be a partnership, you'll need to provide the partnership EIN instead of your own SSN, but that's the only difference. Are LLC's required to pay taxes 4 times per year? We would definitely get an accountant for things, but being as this is side work, there will be times where we choose to not take on clients, which could cause multiple months of no income. Obviously we would save for when we need to pay taxes, but is there a magic number that says \"\"you must now pay four times per year\"\". Unless you choose to tax your LLC as a corporation, LLC will pay no taxes. You will need to make sure you have enough withholding to cover for the additional income, or pay the quarterly estimates. The magic number is $1000. If your withholding+estimates is $1000 less than what your tax liability is, you'll be penalized, unless the total withholding+estimates is more than 100% of your prior year tax liability (or 110%, depending on the amounts). The LLC would be 50% 50%, but that work would not always be that. We will be taking on smaller project through the company, so there will be times where one of us could potentially be making more money. Are we setting ourselves up for disaster if one is payed more than the other while still having equal ownership? Partnerships can be very flexible, and equity split doesn't have to be the same as income, loss or assets split. But, you'll need to have a lawyer draft your operational agreement which will define all these splits and who gets how much in what case. Make sure to cover as much as possible in that agreement in order to avoid problems later.\"",
"title": ""
},
{
"docid": "a03156df5f0b04b4961d56ac075f92a1",
"text": "I think you are overcomplicating the scenario by assuming a benefit that doesn't exist. Assume an employee earns 50k, before considering the MSP. The corporation wants to cover the MSP. They have two options: increase the salary to $50,900, or keep the salary the same and pay for the MSP directly. Both options increase the employee's taxable income by $900. Both options decrease the corporation's income by $900. Net tax for each is unchanged. *Note - I couldn't find any specific reference to the MSP in income tax documentation on either BC Finance's or CRA's website. I am assuming that it is treated as a regular cash benefit, though I am not 100% convinced this is the case. If I am wrong in this please provide a comment below.",
"title": ""
},
{
"docid": "f1e3a3be118b48d06cf556ed92c5945f",
"text": "They are a business. You're not a corporation. They paid you more than $600 during the year, so they're supposed to send 1099 to you and the IRS about it. They need your taxpayer certification (W9) for that. They were supposed to ask for it before they paid you, but yes - they're supposed to ask for it.",
"title": ""
},
{
"docid": "a9e5ea4e617dfb57896f673e055ff335",
"text": "Just earning the money would trigger a 1099 (assuming other requirements are met). It doesn't matter where the money is.",
"title": ""
},
{
"docid": "de92587f4c34d0733ffc73a07c95127c",
"text": "FICA/SE taxes are not 30%. They are at most ~15%, including the employer portion. Employer also pays FUTA tax, and has additional payroll expenses (like fees and worker compensation insurance). The employee's FICA portion is limited up to a certain level of earnings (110100 this year, IIRC). Above it you only pay medicare taxes, not social security. S-Corp earnings are not taxed at 15%, these are not dividends. They're taxed at your ordinary income rate. You don't pay SE taxes on it, that's the only difference. I hope you're talking about tax treatment decision, because there are entirely different factors to keep in mind when you're organizing a business and making a decision between being it a LLC or a corporation. I believe you should pay some money to get a real advice that would apply to you, from a EA/CPA who would be doing the number-crunching (hopefully correctly). I'm a tax practitioner, and this answer was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer.",
"title": ""
},
{
"docid": "a3536cc618e291ed7fa8cd499d035587",
"text": "I'm not sure why you're confusing the two unrelated things. 1040ES is your estimated tax payments. 941 is your corporation's payroll tax report. They have nothing to do with each other. You being the corporation's employee is accidental, and can only help you to avoid 1040ES and use the W2 withholding instead - like any other employee. From the IRS standpoint you're not running a LLC - you're running a corporation, and you're that corporation's employee. While technically you're self-employed, from tax perspective - you're not (to the extent of your corporate salary, at least).",
"title": ""
},
{
"docid": "dfbfc478fa486de7f3c15b3583b3666a",
"text": "It's hard to answer without knowing all of the details (i.e. what was your salary for each of the options), but I think you probably made a good choice. 1099: Would have required you to pay self-employment tax, but also would have allowed you to deduct business expenses. W2 with benefits: Likely would have been beneficial if you needed healthcare (since group plans can be cheaper than individual plans, and healthcare payments aren't taxed), but if you don't use the healthcare, that would have been a waste. W2, no benefits: Assuming your salary here falls between the 1099 and the W2 with benefits, it seems like a good compromise for your situation.",
"title": ""
},
{
"docid": "b9e505f6ac98def36161692ca6bbb454",
"text": "It depends on the sequence in which the order [bid and ask] were placed. Please read the below question to understand how the order are matched. How do exchanges match limit orders?",
"title": ""
}
] |
fiqa
|
5720a917c2113b9b5cfad5390503b2f8
|
Why do most banks in Canada charge monthly fee?
|
[
{
"docid": "01aec37e09311c858b5e357f73a4b357",
"text": "\"Arguably, \"\"because they can\"\". Canada's banking industry is dominated by five chartered banks who by virtue of their size, pretty much determine how banking is done in Canada. Yes, they have to abide by government regulation, but they carry enough weight to influence government and to some extent shape the regulation they have to follow. While this situation makes Canada's financial system very stable and efficient, it also permits anti-competitive behavior. There was a time (when U.S. banks were not permitted to operate across state lines) when the smallest of Canada's \"\"big 5\"\" was bigger than the biggest U.S. bank, despite our economy having always been about 1/10 the size of the U.S. That scale and their small number gives the \"\"big 5\"\" the ability to invest heavily in and collaborate on whatever they decide to be in their own interest. So, if they want to charge fees, they do.\"",
"title": ""
},
{
"docid": "0289022308ebf38fe78e9fa60167689b",
"text": "Lending isn't profitable when interest rates are this low. Consider what's involved to offer a savings or checking account. The bank must maintain branches with tellers. The bank has to pay rent (or buy and pay property taxes and utilities). The bank has to pay salaries. The bank has to maintain cash so as to make change. And pay for insurance against robbery. All of that costs money. At 6% interest, a bank can sort of make money. Not great money, but it takes in more than it has to pay out. At 4% interest, which is about where ten year mortgage rates are in Canada, the bank doesn't make enough margin. They are better off selling the loan and closing their branches than offering free checking accounts. An additional problem is that banks tend to make money from overdraft fees. But there's been a move to limit overdraft fees, as they target the most economically vulnerable. So Canadian banks tend to charge monthly fees instead. UK banks may also start charging monthly fees if interest rates stay low and other fees get curtailed.",
"title": ""
},
{
"docid": "afce39b90196e467c1051a1aebd1ea6b",
"text": "The other answers in this thread do a fine job of explaining the economic situation that banks are in. In addition to that information, I would like to point out that it is not hard to avoid a monthly fee for Canadian bank accounts. Usually this involves keeping a minimum balance of a few thousand dollars at all times. Actual examples (as of Dec 2016) for the lowest tier chequing accounts. Includes information on the minimum balance to waive the monthly fee, and the monthly fee otherwise:",
"title": ""
},
{
"docid": "07387f98d8f5d6003a51cc409fc5a910",
"text": "You have to check your contract to be sure what is it you're paying for. Typically, you get some of the following features which can be unavailable to you in banks which don't charge a monthly fee: Arguably, these expenses could be paid by the interest rates your money earn to the bank. Notice how banks which don't charge a fee usually require you to have a minimum amount of cash in your account or a minimum monthly cash flow. When you pay for your bank's services in cash, there's no such restrictions. I'm not sure if typical banks in the UK would take away your credit card if you lose your job and don't qualify for that kind of card any more, but I do know banks who would. The choice is yours, and while it's indeed sad that you don't have this kind of choice in Canada, it's also not like you're paying solely for the privilege of letting them invest your money behind your back.",
"title": ""
}
] |
[
{
"docid": "777609ebf107f439f7d88abfd8f47406",
"text": "\"In the end, all these fees hurt the average consumer, since the merchant ultimately passes cost to consumer. Savvy consumers can stay at par or get ahead, if they put in the effort. It's a pain, but I rotate between 4 cards depending on time of year and type of purchase, to optimize cash back. My cards are: 1. 5% rewards card on certain categories, rotates each quarter 2. 2% travel/dining card (fee card, but I travel a bunch so it's worth it, no foreign transaction fees) 3. 1.5% rewards card for everything else 4. Debit card (swiped as a CC) for small purchases (i.e. lunches) at credit union for \"\"enhanced\"\" high interest checking account, requiring certain # swipes/month. This alone returns to me ~$800/yr.\"",
"title": ""
},
{
"docid": "18669cc27884e61802f45f91344c1972",
"text": "Banks don't care that you are responsible cardholder. They care to make money. Interest rates are basically 0% by government policy and the banks charge their responsible cardholders 20% interest rates. Think about that for one second, and realize they really do not care about your ability to avoid paying interest, they only need you to 'slip up' one month during your entire lifetime to make a profit from you. It is in their interest for you to get into a spending habit, from 0% promo rates, so that eventually a frivolous purchase or life changing event causes a balance to stay on the card for over one month.",
"title": ""
},
{
"docid": "609c715b134b85f0951fb29bdb2469e5",
"text": "Most of these blogs/websites that you mention above promote banks that pay a commission and hence you never realize there are better banks out there that offer a higher rate. I went through the same exercise to find the bank that paid the best rate and realized the truth I mention above. I currently bank with Alliant Credit Union, which doesn't pay a commission or have affiliate fees. If you find a bank that pays a higher rate than ACU, let me know, I'd like to switch to that bank as well! To give an example, ACU's regular savings rate is equivalent to EverBank's 2 year CD! See what I mean when I say affiliate and commissions run the show? Disclosure: BTW, I'm a customer of this bank, not an employee. I do have a blog if you wish to read my experience with ACU.",
"title": ""
},
{
"docid": "298bc6aaa358239ee51268053527c422",
"text": "I haven't read the terms here but the question may not have a good answer. That won't stop me from trying. Call the real rate (interest rate - inflation) and you'll have what is called negative real rates. It's rare for the overnight real rate to be negative. If you check the same sources for historical data you'll find it's usually higher. This is because borrowing money is usually done to gain an economic benefit, ie. make a profit. That is no longer a consideration when borrowing money short term and is IMO a serious problem. This will cause poor investment decisions like you see in housing. Notice I said overnight rate. That is the only rate set by the BoC and the longer rates are set by the market. The central bank has some influence because a longer term is just a series of shorter terms but if you looked up the rate on long Canadian real return bonds, you'd see them with a real rate around 1%. What happens when the central bank raise or lowers rates will depend on the circumstances. The rate in India is so high because they are using it to defend the rupee. If people earn more interest they have a preference to buy that currency rather than others. However these people aren't stupid, they realize it's the real rate that matters. That's why Japan can get away with very low rates and still have demand for the currency - they have, or had, deflation. When that changed, the preference for their currency changed. So if Canada hast forex driven inflation then the BoC will have to raise rates to defend the dollar for the purpose of lowering inflation from imports. Whether it works or not is another story. Note that the Canadian dollar is very dependant on the total dollar value of net oil exports. If Canada has inflation due too an accelerating economy this implies that there are profitable opportunities so businesses and individuals will be more likely to pay a positive real rate of interest. In that scenario the demand for credit money will drive the real rate of return.",
"title": ""
},
{
"docid": "14f6c5ee4bcdb17b63ff8518e5ff0858",
"text": "Banks need to provide a free mechanism to deposit and withdrawal money. Banks are free to charge fees as long as it is well published. If you are not happy with services you can complain to Banking ombudsman.",
"title": ""
},
{
"docid": "2d792ae9e61e82e4fe8b8f717c734814",
"text": "That's the same question I've been pondering. How did they handle it in Canada umpteen years ago on their test run? Obviously they're not giving out a lump sum at the beginning of the year, but what about month to month?",
"title": ""
},
{
"docid": "9ddbb2ab2f56ca83404d5538de734baa",
"text": "I had an RRSP account with a managed services account at a major Cdn bank that increased its fees to $125 a year per account. Because I could not trade any of my funds living in the US, it made no sense to throw away $500 a year for nothing (two accounts for me and two accounts for my wife - regular RRSP and locked in RRSP). I was able to move all my accounts to TD discount brokerage without any issue. I did this two years ago.",
"title": ""
},
{
"docid": "2fd09b10078171bba36eadd0d1d691d9",
"text": "\"Charging interest by non financial institutions is allowable. There is only one definition of illegal or criminal interest and this is regarding loan sharks. Section 347 of the Canadian Criminal Code makes it illegal to charge more than 60% annually. The biggest debate was whether or not \"\"pay day\"\" loan companies were breaking the law. The recent bill C-26 amends this section to exempt \"\"pay day\"\" loans from this definition.\"",
"title": ""
},
{
"docid": "ccb53ec70fd1c7e3b4addbd3a77698da",
"text": "\"There are two reasons you would get a higher yield for savings accounts: either because it is not guaranteed by a national deposit insurance fund (CDIC I presume in Canada), or you have to hold it for a longer term. Money Market Accounts are insured in the U.S. and are also very liquid since you can debit from it any time. Because of this, they offer much lower rates of interest than comparable products. If you look at the savings products such as the 1.50% momentum savings account offered by ScotiaBank, you actually have to hold a $5000 balance and not make any debit from it for 90 days in order to get the extra 0.75% that would get you to 1.50%. Essentially this is roughly equivalent to offering you a 1.50% GIC with a 0.75% withdrawal penalty fee, but simply presented in more \"\"positive\"\" terms. As for the Implicity Financial Financial 1.75% offering, it looks like it is not insured by the CDIC.\"",
"title": ""
},
{
"docid": "15fd5a238ccc43822493b9417a03bef2",
"text": "In Canada section 347 of the Canadian Criminal Code makes it illegal to charge more than 60% annually. Since most Canadian credit card annual interest fee is below this they are within that legal limit. However this is limited only to the rate and not necessarily a cap on the absolute interest charges.",
"title": ""
},
{
"docid": "10ecf9570eab2bcf9769c9cd4862c2c3",
"text": "Banks do of course incur costs on currency transactions. But they're not as high as the fee charged to the customer. Most banks in most places lose a lot of money on operating bank accounts for customers, and make the money back by charging more than their costs for services like currency exchange. If you don't choose to pay those fees, use an online service instead. But bear in mind that if everyone does so then banks will be forced to charge higher fees for current accounts.",
"title": ""
},
{
"docid": "188502c8878306a1a913ada819b89d34",
"text": "Sorry, in the US (Bank of America). The kind of account we have has that high fee, but they also have free account options that have lower or zero balance requirements, you just have to setup direct deposit. The one we have has free checks, free safe deposit box, an English speaking customer service rep guaranteed to answer my call in something like 3 rings, and a bunch of other stuff I'll never use.",
"title": ""
},
{
"docid": "61c5fa483ae886d1c28b6c20ada4eb32",
"text": "Too much work for me. I simply pay TD $109/yr. And make more than that on getting my money to work ~~with~~ for me. If I had been smart I would have opened a credit union account when I first got here, like I had in the states.",
"title": ""
},
{
"docid": "9dc05df9fc6e20481d08de42919c5f53",
"text": "Almost every company I know of charges something like 2% per month on past due accounts. They are not financial institutions, so it's probably quite legal.",
"title": ""
},
{
"docid": "01a75da40e4796f26d06554710e135ba",
"text": "\"From the way you frame the question it sounds like you more or less know the answer already. Yes - you can make a non-deductable contribution to a traditional IRA and convert it to a Roth IRA. Here is Wikipedia's explanation: Regardless of income but subject to contribution limits, contributions can be made to a Traditional IRA and then converted to a Roth IRA.[10] This allows for \"\"backdoor\"\" contributions where individuals are able to avoid the income limitations of the Roth IRA. There is no limit to the frequency with which conversions can occur, so this process can be repeated indefinitely. One major caveat to the entire \"\"backdoor\"\" Roth IRA contribution process, however, is that it only works for people who do not have any pre-tax contributed money in IRA accounts at the time of the \"\"backdoor\"\" conversion to Roth; conversions made when other IRA money exists are subject to pro-rata calculations and may lead to tax liabilities on the part of the converter. [9] Do note the caveat in the second paragraph. This article explains it more thoroughly: The IRS does not allow converters to specify which dollars are being converted as they can with shares of stock being sold; for the purposes of determining taxes on conversions the IRS considers a person’s non-Roth IRA money to be a single, co-mingled sum. Hence, if a person has any funds in any non-Roth IRA accounts, it is impossible to contribute to a Traditional IRA and then “convert that account” to a Roth IRA as suggested by various pundits and the Wikipedia piece referenced above – conversions must be performed on a pro-rata basis of all IRA money, not on specific dollars or accounts. Say you have $20k of pre-tax assets in a traditional IRA, and make a non-deductable contribution of $5k. The account is now 80% pre-tax assets and 20% post-tax assets, so if you move $5k into a Roth IRA, $4k of it would be taxed in the conversion. The traditional IRA would be left with $16k of pre-tax assets and $4k of post-tax assets.\"",
"title": ""
}
] |
fiqa
|
c0fb0b52a3c014bf13425bcda5fc862b
|
Do I need to register as self employed in Ontario, Canada?
|
[
{
"docid": "a2449af7ae6b5038bbbe8a7aa1f5f66b",
"text": "If your business name is your name, you are automatically considered a sole-proprietorship and any income you generate and expenses you incur can be calculated on your personal tax return. You can use QuickTax Home & Business tax software to lead you through the steps; you don't even need an accountant. One drawback of a sole-proprietorship in your name is liability. You are personally responsible for the business because you are the business. If you get sued, you can lose everything. To limit that liability you can look into opening a corporation. If the corporation gets sued you are insulated from that; the corporation goes bankrupt, not you. A lawyer and an accountant will be required to give you solid advice on this direction.",
"title": ""
}
] |
[
{
"docid": "bb4dc2382fe36b9c9d01a1e44edaee35",
"text": "IANAL (and nor am I an accountant), so I can't give a definitive answer as to legality, but AFAIK, what you propose is legal. But what's the benefit? Avoiding corporation tax? It's simplistic – and costly – to think in terms like that. You need to run the numbers for different scenarios, and make a plan. You can end up ahead of the game precisely by choosing to pay some corporate tax each year. Really! Read on. One of the many reasons that self-employed Canadians sometimes opt for a corporate structure over being a sole proprietor is to be able to not pay themselves everything the company earns each year. This is especially important when a business has some really good years, and others, meh. Using the corporation to retain earnings can be more tax effective. Example: Imagine your corporation earns, net of accounting & other non-tax costs except for your draws, $120,000/year for 5 years, and $0 in year 6. Assume the business is your only source of income for those 6 years. Would you rather: Pay yourself the entire $120,000/yr in years 1-5, then $0 in year 6 (living off personal savings you hopefully accumulated earlier), subjecting the $120,000/yr to personal income tax only, leaving nothing in the corporation to be taxed? Very roughly speaking, assuming tax rates & brackets are level from year to year, and using this calculator (which simplifies certain things), then in Ontario, then you'd net ~$84,878/yr for years 1-5, and $0 in year 6. Overall, you realized $424,390. Drawing the income in this manner, the average tax rate on the $600,000 was 29.26%. vs. Pay yourself only $100,000/yr in years 1-5, leaving $20,000/yr subject to corporation tax. Assuming a 15.5% combined federal/provincial corporate tax rate (includes the small business deduction), then the corp. is left with $16,900/yr to add to retained earnings in years 1-5. In year 6, the corp. has $84,500 in retained earnings to be distributed to you, the sole owner, as a dividend (of the non-eligible kind.) Again, very roughly speaking, you'd personally net $73,560/yr in years 1-5, and then on the $84,500 dividend in year 6, you'd net $73,658. Overall, you realized $441,458. Drawing the income in this manner, the average tax rate on the $600K was 26.42%. i.e. Scenario 2, which spreads the income out over the six years, saved 2.84% in tax, or $14,400. Smoothing out your income is also a prudent thing to do. Would you rather find yourself in year 6, having no clients and no revenue, with nothing left to draw on? Or would you rather the company had saved money from the good years to pay you in the lean one?",
"title": ""
},
{
"docid": "0a4645ce2d3af01c621b2fd826cfc47a",
"text": "When you begin a business, you should choose which business structure (likewise legitimate structure or business frame) to Business Structure. In case you're essentially in business for yourself and don't anticipate enlisting workers, you might have the capacity to get by as a sole proprietorship. Be that as it may, huge business elements for the most part fuse, which gives certain advantages regarding obligation insurance and the multifaceted nature required for a substantial business.",
"title": ""
},
{
"docid": "b2c28bf26ba5ea1a2b8b24af91d571f4",
"text": "You need to set your status as self-employed the day you started online work. If that date is a little ambiguous (as is usually the case with online business), you can start with the day you first made any money. Yes, you can deduct expenses from your revenue. But you have to be sure that the expenses were purely business related. This is how it goes: You inform HMRC about the day you started work. HMRC will assign you a UTR (Unique Tax Reference) number. Depending on how much you make you might or might not need to pay Class 2 NI contributions. You'll need to tell HMRC how much you expect to earn in the current tax year. Finally, you'll need to complete a Self-Assessment at the end of the tax year. I highly recommend setting up a business banking account. Here is a link that discusses being part-time self-employed in the UK.",
"title": ""
},
{
"docid": "b785bcf974c97d43b0f71c871e9a9f2a",
"text": "No, even businesses pay taxes quarterly. So if you formed Nathan, LLC, or otherwise became self employed, you'd still have to file quarterly estimates and make tax payments. This would cause taxes to be a much more high touch part of your life. However, you should ensure that you're claiming the proper exemptions etc to avoid excessive withholding.",
"title": ""
},
{
"docid": "a0af92a78e11e80bd05b2a3c99589328",
"text": "Normally, incorporation is for liability reasons. Just file your taxes as a business. This just means adding a T2125 to your personal return. There's no registering, that's for GST if over a certain threshold. There's even a section in the instructions for internet businesses. http://www.cra-arc.gc.ca/E/pub/tg/t4002/t4002-e.html#internet_business_activities This is the form you have to fill out. Take note that there is a place to include costs from using your own home as well. Those specific expenses can't be used to create or increase a loss from your business, but a regular business loss can be deducted from your employment income. http://www.cra-arc.gc.ca/E/pbg/tf/t2125/t2125-15e.pdf",
"title": ""
},
{
"docid": "7d3077586f1ca10a37851e7b9c4f23a8",
"text": "\"It looks like the HST will be in effect in Ontario on July 1st, 2010. As to whether it will replace GST with HST for all services, it looks like some sectors may get special treatment: Ontario may exempt mutual funds from HST (National Post). But it doesn't look final yet. However, I would suggest that most service-based businesses in Ontario need to prepare to start charging 13% HST instead of 5% GST. It will be the law. On the \"\"goods\"\" side of the new harmonized tax, it looks like certain goods will still be exempt from the provincial portion. Here's a quote from the Ontario Budget 2009 News Release: \"\"Books, diapers, children's clothing and footwear, children's car seats and car booster seats, and feminine hygiene products would be exempt from the provincial portion of the single sales tax.\"\" Here's some additional information on the introduction of the HST, from the province: General Transitional Rules for Ontario HST. And finally, another interesting article from the Ottawa Business Journal: Preparing For Ontario Sales Tax Harmonization – It's Not Too Early UPDATE: I just received an insert from Canada Revenue Agency included with my quarterly GST statement. Titled \"\"Harmonization of the Sales Tax in Ontario and British Columbia\"\", it contains a section titled \"\"What this means for you\"\" (as in, you the business owner). Here's an excerpt: [...] All Ontario and B.C. registrants would need to update their accounting and point-of-sale systems to accomodate the change in rate and new point-of-sale rebates for the implementation date of July 1, 2010. The harmonization of the sales tax in Ontario and B.C. may affect the filing requirements of registrants outside of these two provinces. Registrants will report their HST according to their current GST filing frequency. As a result of the harmonization, there will be changes to the rebates for housing and public service bodies. More information will be released as it becomes available. Visit the CRA web site often, at www.cra.gc.ca/harmonization, for the most up-to-date information on the harmonization of the sales tax and how it may affect you. [...] Last, I found some very detailed information on the HST here: NOTICE247 - Harmonized Sales Tax for Ontario and British Columbia - Questions and Answers on General Transitional Rules for Personal Property and Services. Chances are anything you want to know is in there.\"",
"title": ""
},
{
"docid": "9757bb5c63f8eaefdd7cb9c62f6da0b4",
"text": "\"The HMRC has a dedicated self-help/learning site that is helpful here: It's important to tell HMRC that you are self-employed as soon as possible. If you don't, you may have to pay a penalty. You don't want to pay more to HMRC than you have to as it is a waste of your money. Your business has started when you start to advertise or you have a customer to buy your goods or services. It is at this point that your business is 'trading'. You cannot register before you start trading. For example, if you advertise your business in the local newspaper on 15 January but do not get your first customer until 29 March; in this case, you have been trading since 15 January. You must tell HMRC within six months of the end of the tax year in which you start self-employment. You must therefore register by 5 October. But it's best to register well before this so that you do not forget to do so. The HMRC also has a YouTube channel with help videos, and \"\"Am I Trading or Not?\"\" might be of particular interest to you. Most of the registration is based around the concept of starting to work with the intent to make a profit. By the letter of law and regulations, you should register within six months of the end of the tax year you started to avoid any potential penalty. However note that the situation is different based upon your intent. If you begin making/putting up videos online as a hobby with the hope that you can make something to help you defray the basic costs involved, and the total amount you make is relatively small (say, less than 500 pounds), you will not be classified as \"\"trading\"\" and likely have no need to register with HMRC. As soon as you begin to get in regular payments, maybe a single payment of a significant size, or multiple payments for a similar service/item, you are vastly more likely to need to register. From my reading you would likely be safe to begin putting up videos without registration, but if you begin spending a large portion of your time over an extended period (multiple months) and/or begin getting payments of any notable size then you should likely register with the appropriate services (HMRC, etc). As is the case in both the USA and UK, simple registration is pretty cheap and the costs of little/no income are usually pretty minor. Also note that the HMRC trading and self-employment regulations are unusual compared to many US laws/institutions, in that you are explicitly permitted to begin doing something and only register later. So if you start doing videos for an entire tax year + 5 months and make nothing significant, you'd seemingly be fine to never register at all.\"",
"title": ""
},
{
"docid": "ff963d7092b85aff7b07dc0d50af1e4e",
"text": "Every bill you write counts as income (if the bill doesn't get paid, you would count that as an expense). In cases where you don't write bills, I think the payment you receive would count as income, but you might check that on the HMRC website. So to record your income, you can basically record the payments that you receive. Anything you pay out for your business is an expense. You keep a receipt for every expense - if you don't have a receipt, you can't count it as an expense, so keeping all the receipts is very, very important. An exception are investments, for example buying a computer that should last multiple years; there you can count a percentage of the investment as expense every year. All income, minus all expenses, is your profit. You pay tax and National Insurance contributions according to your profit. You can do whatever you like with the profit. Notice that I didn't mention any salary. Self employed means you have no salary, you have profits and do with them whatever you like. On the other hand, you pay taxes on these profits almost exactly as if they were income. If you have this blog but are also employed, you'll add the profits to your normal income statement.",
"title": ""
},
{
"docid": "7370a33a0e00e3ab8b244ef51854982a",
"text": "\"I know this is a little late but here is my answer. No. You do not \"\"need\"\" to incorporate. In fact, incorporating in your situation will cost you in legal fees, administrative headaches, and a fair bit in taxes. The CRA would probably look at your corporation as a personal services corporation and it would not be allowed to claim a number of tax reductions. The tax rate would end up being over the top range (unless you are in Quebec where it would be just under the top marginal range).\"",
"title": ""
},
{
"docid": "5c340d3fe50a1f2fb12a38f17eda9b95",
"text": "Work on your own site is certainly not relevant here, that's just a part of your trade, not a service you provided to yourself. The business received the benefit of that work, not you. Suppose your business sold televisions. If you took a TV from stock for your own lounge, that would be included in this box because you have effectively paid yourself with a TV rather than cash. If you take a TV from stock to use as a demo model, that's part of your trade and not goods you have taken out of the business for your own use. For services provided to your dad it's less clear. As Skaty said, it depends whether it's your business providing the service, or you personally. If you gave your dad a free TV then it would be clear that you have effectively paid yourself with another TV and then given it to your dad as a gift. With services it's less clear whether you're receiving services from the business for free. You might consider how it would be treated by your employer if you weren't self-employed. If you were just applying your skills to help your dad in your free time, your employer wouldn't care. If you used your employer's equipment or facilities, or hosted his site on a server that your employer pays for, your employer would be more likely to discipline you for effectively stealing services from them, as they would if you took a TV from their warehouse for him.",
"title": ""
},
{
"docid": "5d30f301760755861621e5260d05e183",
"text": "\"As a Canadian resident, the simple answer to your question is \"\"yes\"\" Having worked as a tax auditor and as a Certified Financial Planner, you are required to file an income tax return because you have taxable employment income. All the employer is doing is deducting it at source and remitting it on your behalf. That does not alleviate your need to file. In fact, if you don't file you will be subject to a no filing penalty. The one aspect you are missing is that taxpayers may be entitled to tax credits that may result in a refund to you depending on your personal situation (e.g spousal or minor dependents). I hope this helps.\"",
"title": ""
},
{
"docid": "b15d163a90235fed85ed81ab71d178ac",
"text": "\"Do I understand correctly, that we still can file as \"\"Married filing jointly\"\", just add Schedule C and Schedule SE for her? Yes. Business registration information letter she got once registered mentions that her due date for filing tax return is January 31, 2016. Does this prevent us from filing jointly (as far as I understand, I can't file my income before that date)? IRS sends no such letters. IRS also doesn't require any registration. Be careful, you might be a victim to a phishing attack here. In any case, sole proprietor files a regular individual tax return with the regular April 15th deadline. Do I understand correctly that we do not qualify as \"\"Family partnership\"\" (I do not participate in her business in any way other than giving her money for initial tools/materials purchase)? Yes. Do I understand correctly that she did not have to do regular estimated tax payments as business was not expected to generate income this year? You're asking or saying? How would we know what she expected? In any case, you can use your withholding (adjust the W4) to compensate.\"",
"title": ""
},
{
"docid": "83f92b50ccebdd89ecdfa9794d4be2f5",
"text": "I'm hearing that I should maybe wait and see how things go at first as it is only a very small operation. But if I moved into a side of the trade where I require staff, vehicles, and the likes then I would need to registed as a limited company.",
"title": ""
},
{
"docid": "8de0bd6e321f81879376c5cc24885ddb",
"text": "So there are a lot of people that get into trouble in your type of self employment situation. This is what I do, and I use google drive so there are no cost for tools. However, having an accounting system is better. Getting in trouble with the IRS really sucks bad.",
"title": ""
},
{
"docid": "2ce7522f93ed2e851f1b52ba8bb0c72e",
"text": "In my opinion, since she will live in one apartment, as will you and your husband, the simplest method is to divide the ratio exactly the same as the area for your living space. If it's 40/60, she puts 40% down, you put 60%. And you split expenses the same. The tenant income can be applied to the house expenses, as it's no different than giving her 40% and you keep 60%. No matter how well you get along, it's easy for someone to feel a split of expenses isn't fair unless it's discussed and agreed up front.",
"title": ""
}
] |
fiqa
|
a3ab15eb1e420b26e6b8d57baefc8e49
|
Why do credit card transactions take up to 3 days to appear, yet debit transactions are instant?
|
[
{
"docid": "62eb9305ec5ccbdfe1d0dd52c7dd9840",
"text": "When you swipe your credit card, the terminal at the store makes a request of your bank, and your bank has only a few seconds to accept or reject the transaction. Once the transaction is accepted by your bank, it appears in the Pending transactions. At the end of the business day, the store submits all of the final transactions for the day to their bank in a batch, and the banks all trade transactions in a batch, and money is sent between banks. This is the process that takes a couple of days, and after this happens, you see the transaction move from your Pending transactions into the regular transactions area. Most of the time, the pending transaction and the final transaction are the same. However, there are cases where it is different. A couple of examples: With a credit account, the fact that the final amount is not known for a few days is no big deal: after all, you don't have any money in the account, and if you end up spending more than you have, the bank will happily let you take your time coming up with the money (at a steep cost, of course). With a debit card tied to your checking account, the transaction is handled the same way, as far is the store is concerned. However, your bank is not going to run the risk of you overdrawing your checking account. They also are not going to run the risk of you withdrawing money from your account that is needed to cover pending transactions. So they usually treat these pending transactions as final transactions, deducting the pending transaction from your account balance immediately. When the final transaction comes through, they adjust the transaction, and your balance goes up or down accordingly. This is one of the big drawbacks to using a debit card, in my opinion. If a bad pending transaction comes through, you are out this money until it gets straightened out.",
"title": ""
},
{
"docid": "916a1bd0e73b9458004031fb04185062",
"text": "Take a look at http://en.wikipedia.org/wiki/Payment_gateway There is essentially a lead time between when the transaction is made and when it is settled, 2-3 business days is the lead time for settlement. The link explains the process step-by-step",
"title": ""
}
] |
[
{
"docid": "f09e5df95d050feae1e745fb0c66f9bd",
"text": "Debit is them taking the money, in your case electronically. Credit is somebody vouching for you and saying you will pay later. They are alternate ways to pay for a product. As a merchant, if you take a credit card you are agreeing that a the issuer of the credit card is going to pay you right away. The issuer of the credit will worry about collecting the money from me. There are a ton of details with regards to why you would use one over another, where the costs in each method are and who pays what for each. The main different is the source of the funds.",
"title": ""
},
{
"docid": "28349274456d5728c148fd4f35165880",
"text": "This is a question with a flawed premise. Credit cards do have two-factor authentication on transactions they consider more at risk to be fraudulent. I've had several times when I bought something relatively expensive and unusual for me, where the CC either initially declined and sent me a text asking to confirm immediately (after which they would approve the charges), or approved but sent me a text right away asking to confirm (after which they'd automatically dispute if I told them to). The first is legitimately what you are asking for; the second is presumably for less risky but still some risk transactions). Ultimately, the reason they don't allow it for every transaction is that not enough people would make use of it to be worth their time to implement it. Particularly given it slows down the transaction significantly (and look at the complaints at the ~10-15 seconds extra EMV authentication takes, imagine that as a minute or more), I think you'd get a single digit percentage of people using that service.",
"title": ""
},
{
"docid": "e77a1e994c475bcb9e126a374154e32d",
"text": "From http://en.wikipedia.org/wiki/Wire_transfer: The entity wishing to do a transfer approaches a bank and gives the bank the order to transfer a certain amount of money. IBAN and BIC codes are given as well so the bank knows where the money needs to be sent. The sending bank transmits a message, via a secure system (such as SWIFT or Fedwire), to the receiving bank, requesting that it effect payment according to the instructions given. The message also includes settlement instructions. The actual transfer is not instantaneous: funds may take several hours or even days to move from the sender's account to the receiver's account. Either the banks involved must hold a reciprocal account with each other, or the payment must be sent to a bank with such an account, a correspondent bank, for further benefit to the ultimate recipient. Banks collect payment for the service from the sender as well as from the recipient. The sending bank typically collects a fee separate from the funds being transferred, while the receiving bank and intermediate banks through which the transfer travels deduct fees from the money being transferred so that the recipient receives less than what the sender sent. The last point may not be relevant in domestic transfers.",
"title": ""
},
{
"docid": "15e81937680d2671eb52c2d6fc94e93e",
"text": "If the debit card is associated with the account, there is nowhere else it could go. The chance is nil that there is another account with that 16-digit number. So either it goes there, or the transfer fails and it is right back where it came from, though this could take some days. If you don't want to risk a wait, talk to your bank now.",
"title": ""
},
{
"docid": "999a2dc2fff6a8b33603cd971c448913",
"text": "\"Here is how the Visa network works: A Visa transaction is a carefully orchestrated process. When a Visa account holder uses a Visa card to buy a pair of shoes, it’s actually the acquirer — the merchant’s bank — that reimburses the merchant for the shoes. Then, the issuer — the account holder’s bank — reimburses the acquirer, usually within 24 to 48 hours. Lastly, the issuer collects from the account holder by withdrawing funds from the account holder’s bank account if a debit account is used, or through billing if a credit account is used. I read this to mean the Merchant's Bank (the Acquirer Bank) gives the merchant the money within 2 days via the Card Issuer's Bank. The issuing bank is the one that provides the \"\"credit\"\" feature since that bank won't get reimbursed until the shopper's bill is paid (or perhaps even longer if the shopper carries a balance). You'll notice the Credit Card company (Visa/MC/etc) is only involved in the process as a way of passing messages. Of course they take a fee for this service so seller ultimately get's less than the buyer bought the shoes for.\"",
"title": ""
},
{
"docid": "d3e77b72b9352ad4d9199ede44d3730d",
"text": "\"In short you have to wait till the hold expires. If its one week, its great. Few years back it was one Month. It is advisable you use a Credit Card for these type of transactions. With Credit Cards you are not out of funds like in Debit Cards. Plus the reversals are as much as I know automatic. In case of Debit Cards, the Holds are not automatically released on cancelled transactions but released only after expiry. Where as in Credit Cards, the holds are released immediately on cancelled transactions. \"\"Does the hold reserve it for them or for the original transaction?\"\" Yes hold is for that specific transaction from that specific merchant. i.e. if you try and book the same item from the same merchant, you will not be able to as you have money blocked. Although the merchant sends an unblock message when cancelling, on Debit cards these messages are not supported in India\"",
"title": ""
},
{
"docid": "ca9cab87799e37f09569ee494d85d57c",
"text": "They're batched typically and about 30-90 days out typically, though the speed is routinely increasing the last few years. The flow depends from payment processor to payment processor. Generally, the cheaper the payment processing the longer the delay. The future of this stuff is blockchain if you'd like to look at that http://www.goldmansachs.com/our-thinking/pages/blockchain/",
"title": ""
},
{
"docid": "fd0bb20077a932bc52f28e8f88679e29",
"text": "\"I'm not sure I understand your question, but I'll try to answer what I think you're asking. I think you're asking this: \"\"A US bank receives a wire transfer from a Chinese bank. How does the US bank ensure there's any money in fact arriving before crediting the destination account?\"\" Well, the way wire transfers work is that the US bank would debit the senders' account with that US bank. So the US bank in fact transfers the money between two internal accounts: debit to the Chinese bank's account with that US bank and credit the destination customer account. If the Chinese bank doesn't have an account with the destination US bank - a third party intermediary is used that both banks have accounts with. Such third party will charge an additional fee (hence sometimes the wire transfer fees are slightly higher than you initially know when sending the money, the third party would debit from the transfer amount). \"\"Regular\"\" IBAN/ACH transfers work through regulatory channels that ensure integrity and essentially use a regulatory bank as that third party. But because they're done in batches and not on-line, they're much cheaper, and the accounting is for the whole batch and not each transfer separately. But batch processing means it will take a day or two of processing, while wire transfer takes hours at most.\"",
"title": ""
},
{
"docid": "1c2e7a012cf98e72641115df9ad2d8bf",
"text": "A few reasons make sense: They have a defined process for rentals, risk assessment, and customer credit. Especially for a large corporation, making changes to that process is not trivial, adds risk/uncertainty, and will be costly. Such changes for a relatively small customer base might not makes sense. Many rental companies DO allow you to rent with a debit card. Why do some businesses take cash only? With a debit card, there is no third party guarantee. With a credit card, the cash is coming from a well-established third party who will pay (assuming no disputes) and has a well-established history of paying. Even if the merchant holds your account, it is still your cash under the control of you and your bank until the deposit clears the merchants bank. It is not surprising they view that as more risk and potentially not worth hassling with debit.",
"title": ""
},
{
"docid": "5b213dd622dfb92ca43339dad0d9a256",
"text": "\"Your bank is maintaining different states for transactions, and changing the state depending on real-world events and the passage of time. withdraw €100 from my bank account on 30 September […] my bank does not process the transaction until 2 October. The bank probably have that transaction marked as “pending” on 30 September, and “cleared” on 2 October. transfer €100 from Bank A to Bank B, Bank A's statement dates the transaction on 20 September, but Bank B dates it as coming in on 22 September. Similarly, bank A will have the transaction marked as “pending” initially. Bank B won't have a corresponding transaction at all, until later; they'll have it “pending” too, until they confirm the transfer. Then (probably at different times from each other) the banks will each mark the corresponding transactions “cleared”. The bookkeeping software that I use doesn't seem to allow for this \"\"transfer time\"\" between accounts. When I enter a transfer from one account to another, they both have to have the same date. You may want to learn about different bases of accounting. The simpler option is “cash-based” accounting. The simplification comes from assuming transactions take no time to transfer from one account to another, and are instantly available after that. Your book-keeping software probably books using this simpler basis for your personal finances. The more complex “accrual-based” accounting tracks each individual transaction through multiple states – “pending”, “transfer”, “cleared”, etc. – with state changes at different times – time of trade, time of settlement, etc. – to more accurately reflect the real world agreements between parties, and different availability of the money to each party. So if your book-keeping program uses “cash basis”, you'll need to pick which inaccuracy you want: book the transfer when you did it, or book the transfer when the money is available at the other end.\"",
"title": ""
},
{
"docid": "4571505cd5e76a598b1090e109add091",
"text": "\"A lot of credit card companies these days uses what they call \"\"daily interest\"\" where they charge the interest rate for the number of days till you pay off what you spent. This allows them to make more money than the \"\"period billing\"\". The idea of credit, theoretically, is that there isn't really a day when you can borrow without paying interest - in theory\"",
"title": ""
},
{
"docid": "ca1148de0b8d15d51c11b85fd3195e67",
"text": "Linking the card is primarily to give you (and Paypal) a fall-back option for funding your spending if your bank account doesn't have sufficient funds to process the charge. If the bank account has sufficient funds, it will work fine in many cases without a credit card. If you have both linked (bank and a credit card), Paypal will transfer funds immediately, as Paypal knows it has an option for getting the funds if the bank has insufficient funds. However, if you have no credit card linked or remove your only card: If you remove your only card and have a confirmed bank account, you’ll no longer be able to make instant bank payments. Instead they’ll be sent as eChecks, which take 3 to 4 working days to process. This may not matter in many cases, but it may delay things some. There may also be services who require immediate payment (and won't support PayPal if it's not immediate). There may also be some functional limitations. The one I see is primarily that some services that are geo-location-specific, Spotify for one example, use the credit card to verify that you are in a particular location (in Spotify's case, for licensing purposes). They don't seem to accept Paypal unless it's linked to a credit or debit card (even if it's verified via a bank account). I'm not sure if this is common with other services, but it's something to consider.",
"title": ""
},
{
"docid": "80519dc892a32a27903d0d13fdc93213",
"text": "It comes down to liability - if a fraudulent transaction takes place with a debit card, you are out $$ until it is resolved - while as with a credit card, the credit lender is out $$ - the credit lender does not like losing $$, and therefore would like to be paid extra $$ for assuming this risk, and they found the merchant as the one most willing to pay. Sometimes the merchant will pass on this cost to the consumer, but often times the credit card company has a contract with the merchant preventing such a fee, because then they would be at a price disadvantage when compared to debit.",
"title": ""
},
{
"docid": "489be18792ddc57221164bea4405b8eb",
"text": "ATM to ATM transfer is not possible. Do you mean to say account to account transfer using an ATM machine? Online transfer between account or between an account and credit card is possible. Almost every Bank offers Online transfers using Internet Banking. The person wishing to initiate a Debit must subscribe to Internet Banking. Once you login to Internet Banking, you would need to add beneficiary Account [account where you need to transfer funds]. Adding of Beneficiary at times takes a Day for the Beneficiary to be activated. Once the Beneficiary is activated, you can transfer funds. The funds are credited to Beneficiary account within 2 hrs. If the both the accounts are in same bank, then some Bank's ATM's [HDFC / Citi etc] allow you to transfer funds between account using the Bank's ATM.",
"title": ""
},
{
"docid": "a73a32e9c0c175cc10a1014387ee433f",
"text": "\"Your are mixing multiple questions with assertions which may or may not be true. So I'll take a stab at this, comment if it doesn't make sense to you. To answer the question in the title, you invest in an IRA because you want to save money to allow you to retire. The government provides you with tax incentives that make an IRA an excellent vehicle to do this. The rules regarding IRA tax treatment provide disincentives, through tax penalties, for withdrawing money before retirement. This topic is covered dozens of times, so search around for more detail. Regarding your desire to invest in items with high \"\"intrinsic\"\" value, I would argue that gold and silver are not good vehicles for doing this. Intrinsic value doesn't mean what you want it to mean in this context -- gold and silver are commodities, whose prices fluctuate dramatically. If you want to grow money for retirement over a long period, of time, you should be invested in diversified collection of investments, and precious metals should be a relatively small part of your portfolio.\"",
"title": ""
}
] |
fiqa
|
5d65f5f6fce1ac1dc43bf1cbae22276a
|
Why do VAT-registered businesses in the EU charge VAT to each other?
|
[
{
"docid": "72b1e6985173d4f438917c27830348c5",
"text": "Not doing this would defeat the entire purpose of a VAT. The reason for a VAT rather than a simple sales tax is that it's harder to evade. Having a simple sales tax with the type of rates that VAT taxes typically are is unworkable because evasion is too easy. Imagine I'm a retailer. I buy products from a wholesaler and sell them to consumers. With a sales tax, if I don't charge the customer sales tax, the customer is happy and I don't care (assuming I don't get caught). And if I keep the sales tax but don't report the sale, I make a lot of money. Now, imagine a VAT. If I don't charge the customer the VAT, I lose money since I paid the VAT on the wholesale products. And if I don't report the sale, how do I claim my VAT refund?",
"title": ""
},
{
"docid": "ebe7bab9b048af3bcc0e783606e7074e",
"text": "But why can't two companies exchange goods directly without paying VAT? This would make the famous carousel fraud scam impossible and businesses won't have to deal with complicated refunds. Sales tax in the United States works as you describe. Sales tax is charged only to end customers, not to businesses that themselves charge sales tax. But this means that a criminal business can charge tax and just pocket it unless someone else reports it. They can also evade income tax the same way. Not to mention other issues like cross jurisdiction taxes (e.g. internet sales often evade sales tax). The whole point of a Value Added Tax (VAT) is that they charge at each level. This creates a system where each buyer reports the tax paid to the seller so as to be able to deduct it. So the seller has to pay the VAT that they charged. Or the tax authorities know and can revoke their VAT license. If only the end user is charged tax, then fraud is easier than under a VAT. So easy, I doubt they have a special name for it. The fraudulent business just collects tax from end users and disappears. Or simply fails to record those transactions. You could call it missing transaction record fraud, but why bother? It's just straight up tax fraud. The complexity of the carousel fraud arises from the difficulty of evading a VAT.",
"title": ""
}
] |
[
{
"docid": "ce76c6101a3f1577a11cca8495cebfc4",
"text": "It's quite common for VAT-registered businesses to quote ex-VAT prices for supply to other businesses. However you're right that when you make an order you will be invoiced and ultimately have to pay the VAT-inclusive price, assuming your supplier is VAT registered. If you're not clear on this then you should check since it obviously makes quite a difference. Since your business is not VAT-registered you cannot charge VAT to your customers.",
"title": ""
},
{
"docid": "472b1c3431cd2096d17855cf59342fd4",
"text": "\"I'm thinking about visiting the UK and I'm wondering which things are affected by the VAT and which are not. Most consumer goods are subject to VAT at the standard rate. Most food sold in shops is zero-rated, with the exception of a handful of luxury foods. Food in cafes/restaurants and some takeaway food is subject to VAT at the standard rate. Most paper books are zero rated (IIRC books that come with CDs are an exception). Some services are exempt, insurance is a notable one, so are some transactions with charities. Some small buisnesses and sole traders may not be VAT registered in which case there is no VAT for you to pay (but they can't reclaim VAT on the goods and services they buy). (there is a distinction between zero-rated and exempt but it's not relavent to you as a customer). Some goods have special rules, notably second hand goods. Prices are normally given inclusive of VAT. The exception to this is suppliers who mostly deal in business to business transactions. Also as a non-UK resident is there a way to get a rebate/reimbursement on this tax? There is something called the \"\"retail export scheme\"\" which can get you a refund but there are a number of catches.\"",
"title": ""
},
{
"docid": "e64e4e41b617d2c494ffa890cb6abe93",
"text": "After a bit of rooting around the HMRC sites, I found this page which says this: One key difference is that digitised products are classed as electronically-supplied services for VAT and customs duties. These services are: For VAT purposes, the place of supply of these services is the country in which the customer lives. If you supply electronic services to a business customer in another European Union (EU) country, the customer accounts for any VAT due in that country. You should not charge UK VAT. If you supply electronic services to a consumer, charity or government body in another EU country, you have to account for UK VAT. If you supply electronic services to anyone in a country outside the EU, you don't pay any VAT. If, as a UK business, you buy electronic services from a company outside the UK, you have to account for VAT. If I read this correctly, I as the supplier of the website need to account for VAT only if the sponsor is a consumer, charity or government body in another EU country. It is not covered in this site, but I assume I must also account for VAT for a customer based in the UK. So in answer to the original question, a customer from Canada (which is currently outside the EU) would account for the VAT themselves, and I would simply charge the gross amount.",
"title": ""
},
{
"docid": "f86d87919d214c8e6ea495e3ad086ded",
"text": "The technical answer is defined by the laws of state you live in but most (all?) states with a sales tax have some form of use tax. Where if you buy something in another state for use in your home state you are technically liable for sales tax on it regardless of whether the merchant charged you tax on it or not. I don't think many people actually pay the use taxes, and enforcement generally seems rare.",
"title": ""
},
{
"docid": "cbe990789e2fb4be1cceafe3db9efa52",
"text": "The scenarios you describe are obviously easy to catch. It is reasonably defined in tax law, but more needs to be done to exert the spirit of the rules. The problem is that when international businesses are cross charging there is limited information the tax offices have to argue the toss - for example a UK tax office cannot audit the accounts of its US parent in order to decide whether a cross charge representing license fees and marketing costs is fair - but these types of transaction are one of the primary mechanism for avoiding taxes. These are therefrom inferred by the UK companies accounts but not 'in the open' in the sense that they can be easily challenged with accurate information. And that is why it happens, people know about it, but it is still not easy to stop.",
"title": ""
},
{
"docid": "3d26ef83f96ca1f239f366e28a6761f8",
"text": "I don't think so, but: - It depends on the product, some products are simple (Vodka) others have plenty of restrictions (Plutonium). So without you naming what your product is nobody can help you. - Regulation differ for each country. Greece and Italy are different countries. For most products you pay some import duty, the applicable VAT and some customs fees and all is well.",
"title": ""
},
{
"docid": "f49a5014e4b988839b195d6185eb3018",
"text": "Because lobbying. Otherwise such tax optimization schemes would be counteracted with laws after their discovery by our law-making entities... who can be ~~paid~~ lobbied. Personally I believe if your company uses a country's infrastructure to sell goods for a profit, then you should pay a fair share of that profit to support that infrastructure you use. If you don't want to pay, just don't do business there. But lobbying can alter that logic.",
"title": ""
},
{
"docid": "9fed7947cf3797ff10394446994e2c9d",
"text": "The most important thing to remember is that being VAT registered, you must add VAT to every bill, so every bill will be 20% higher. If the bill payer is a company, they don't care because they deduct the 20% VAT from their own VAT bill. If the bill payer is a private person, their cost of your services has just gone up by 20% and it is going to hurt your business. So the question is, what kind of customers do you have? But if your customers are companies, then the flat rate scheme mentioned above is very little work and puts a nice little amount of extra cash in your pocket (suitable if your bills are mostly for your work and not for parts that you buy for the customer and bill them for).",
"title": ""
},
{
"docid": "1696e133d9048ca93a8b41f2129658b7",
"text": "https://www.ato.gov.au/Business/GST/ Some of the costs are indeed related to the conversion rate, which, as we all know,changes daily. You don't say whether you're using a credit card. If so, some cards do charge foreign transaction fees; some do not. However, Australia, like many European countries, does use a VAT system. Therefore your charges will be increased. Please be aware that these taxes are built into the economic system. In many cases, you van apply for and receive a waiver to be reimbursed if the purchase is made through a duty free store.",
"title": ""
},
{
"docid": "6b590adfbf41f34aee714780ff043bb5",
"text": "Some items are VAT Exempt or Reduced, but in short you will pay it on almost any all consumer goods. Assuming you are a visitor to the UK from a non-EU nation then Her Majesty will refund you with the appropriate paperwork",
"title": ""
},
{
"docid": "c852169f4c8bddf4abd32fba18f150e9",
"text": "They take in a *lot* through Corporation Tax, so it'd be relatively unfair to non-business owners and non-shareholders to put it onto VAT and income tax. In the Starbucks case, they'd still want to get the money out of the country so would end up paying no more tax than now. One alternative along the lines you state, though, would be to crank up capital gains and dividend taxes to match what's taken in by Corporation Tax now. After all, those are the other ways (than income) for owners and shareholders to extract value from corporations and would be tricky to dodge unless you're outside of the EU.",
"title": ""
},
{
"docid": "f0e35b50511df8a0a78fcdf833adddd5",
"text": "Compliance issues vary from country to country and, in the US, state to state as well. There'll be a number of levels, though: Bear in mind that it is not that these taxes and responsibilities don't apply to sole traders or unregistered businesses, it's just that being registered signals your existence and introduces the bureaucracy to you all at once. Update: Your accountant should manage your company and consumer tax calculations and submissions on your behalf (and a good one will complete all the paperwork on time plus let you know well in advance what your liability is, as well as offer advice on reducing and restructuring these liabilities). You're probably on your own for local taxes unless your accountant deals with these and is local to even know what they are.",
"title": ""
},
{
"docid": "f3cb37eeb83f058f405b20ac90fddb52",
"text": "There's one huge difference. Generally speaking, the entire burden of paying VAT is intended to be placed upon end consumers, and not upon businesses themselves. So ditching corporation tax and increasing VAT would mean shifting a huge amount of the tax burden from corporations to every-day people. Such a policy could kill the party that attempted to push it.",
"title": ""
},
{
"docid": "21d4e1e1342a71f70549aee9c0eb3e5b",
"text": "IANAL, I have not been VAT registered myself but this is what I have picked up from various sources. You might want to confirm things with your solicitor or accountant. As I understand it there is a critical difference between supplying zero-rated goods/services and supplying exempt goods/services. If the goods/services are zero-rated then the normal VAT rules apply, you charge VAT on your outputs (at a rate of 0%) and can claim back VAT on your inputs (at whatever rate it was charged at, depending on the type of goods.. If the goods/services are exempt you don't charge and VAT on your outputs and can't claim back any VAT on your inputs. (Things get complicated if you have a mixture of exempt and non-exempt outputs) According to http://oko.uk/blog/adsense-vat-explained adsense income is a buisness to buisness transaction with a company in another EU country and so from a supplier point of view (you are the supplier, google is the customer) it counts as a zero-rated transaction.",
"title": ""
},
{
"docid": "73665670f8f89a0dfc6e8dd8afc68fdb",
"text": "A $100K house and $100K are not equivalent assets. Here's a hypothetical... You and I both work for the same company, and both get a $100K bonus (yes, I said it's hypothetical). You decide to use the $100K to pay off your house. I put the money in the bank. Six months later, our company lays both of us off. I have $100K in the bank. I can last for quite a while with that much money in the bank. You have a house, but you can't get a mortgage or home equity loan, because you don't have a job. The only way you can access the money is by selling the house, which requires you to pay money to a real estate agent and perhaps taxes, and leaves you looking for a place to live. That assumes there isn't something systemic going on - like the credit crash - and there is credit available for somebody else to buy your house.",
"title": ""
}
] |
fiqa
|
68f16719136dcb46f7125a2fa90fdea2
|
How To Report Cryptocurrency Earnings?
|
[
{
"docid": "9bd1a5f5aeb95f5ac87bf992d454e1c0",
"text": "\"While this does fall under the \"\"All-inclusive income\"\" segment of GI (gross income), there are two questions that come up. I invested in a decentralized bitcoin business and earned about $230 this year in interest from it Your wording is confusing here only due to how bitcoin works.\"",
"title": ""
},
{
"docid": "b72c7f112014ad0f2539574456e73e5f",
"text": "\"As cryptocurrencies are rather new compared to most assets, there hasn't been a lot of specific guidance for a lot of situation, but in 2014 the IRS announced that it published guidance in Notice 2014-21. I'm not aware of further guidance that has been published beyond that, though it wouldn't surprise me if treatments changed over time. In that notice, the answer to the first question describes the general treatment: For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency. Your specific questions (about what constitutes a \"\"business\"\", and when you're considered to be \"\"selling\"\" the cryptoproperty) are likely to be considered on a case by case basis by the IRS. As the amounts involved here are so small (relatively speaking), my recommendation would be to read through what the IRS has published carefully, make reasonable assumptions about what scenarios that are described are closest to what you're doing, and document doing so clearly as part of your tax preparations. And when in doubt, erring on the side of whichever option incurs more tax is unlikely to be objected to by them. Of course, I'm not a lawyer or tax advisor, I'm a stranger on the Internet, so for \"\"real\"\" advice you should contact somebody qualified. I doubt you'd be faulted too much for not doing so given the amounts involved. You could also attempt contacting a local IRS office or calling them with your specific questions, and they may be able to provide more specific guidance tailored to you, though doing so may not save you from an auditor deciding something differently if they were to examine your return later. There are also phone numbers to contact specific people listed at the end of Notice 2014-21; you could try calling them as well.\"",
"title": ""
}
] |
[
{
"docid": "250e59e43c4663a659e26028f92aa583",
"text": "I would track it using a regular asset account. The same way I would track the value of a house, a car, or any other personal asset. ETA: If you want automatic tracking, you could set it up as a stock portfolio holding shares of the GLD ETF. One share of GLD represents 1/10 ounce of gold. So, if you have 5 ounces of gold, you would set that up in Quicken as 50 shares of GLD.",
"title": ""
},
{
"docid": "11df2c61d4b972e329f7d49fe185d5b9",
"text": "I am no expert on the situation nor do I pretend to act like one, but, as a business owner, allow me to give you my personal opinion. Option 3 is closest to what you want. Why? Well: This way, you have both the record of everything that was done, and also IRS can see exactly what happened. Another suggestion would be to ask the GnuCash maintainers and community directly. You can have a chat with them on their IRC channel #gnucash, send them an email, maybe find the answer in the documentation or wiki. Popular software apps usually have both support people and a helpful community, so if the above method is in any way inconvenient for you, you can give this one a try. Hope this helps! Robert",
"title": ""
},
{
"docid": "8c5b9db4c3291be7f58d5a8b1126bda4",
"text": "Gold is classified as a collectible so the gain rates are as follows: So you'd report a gain of $100 or $1,000 , depending on which coin you sold.",
"title": ""
},
{
"docid": "db5a91b8435b9856a41f8dc5ee1f7506",
"text": "\"@farnsy has provided a good answer. I'm only addressing my comment about the data quality. The portfolio optimization technique you employed is very sensitive to the inputs. In particular, it relies entirely on the mean and (co)variance assumptions (i.e. the first two moments) and the results could change drastically with very small amount of change in the inputs. To see that, you can make up some inputs for the solver you have, and try adjusting the inputs a little bit and see the results. Therefore if you decide to take this approach, data quality is very crucial. EDIT: What I meant by \"\"data quality\"\" I have no experience with this website but this should be easy to spot check. The answer is usually \"\"yes\"\" for liquid assets. Illiquid assets can often be priced at a level with no volume, and the bid-ask spread could be huge. Should I close my eyes on the fact that these cryptocurencies aren't perfectly priced in my currency and use another one (such as the dollar) You seem to have concern about data quality in at least the price quoted in your currency and are thinking about using data quoted in USD, but would it be any better? The law of one price tells us that there shouldn't be any discrepancy between prices in different currencies (otherwise there would be arbitrage). In addition, (when compared to traditional assets) cryptocurrency price data has a shorter data history, and with lower liquidity in the market. The short history means you have less data to infer the characteristics of the price behavior. Low liquidity means the volatility may well be underestimated. So we have an input-sensitive technique combined with not-so-perfect data. I wouldn't allocate my money solely based on the result of this exercise. EDIT: I have quite some reservation about doing portfolio optimization for cryptocurrency. Personally I'm not a fan of the technique as is. The optimization has an underlying assumption that returns follow a certain distribution, and correlation is fixed. I don't know if you can make such assumption for cryptocurrencies. From what I read about BTC for example, it seems to have a high risk exposure concerning Chinese monetary policy. For that kind of assets perhaps a fundamental analysis approach is a better one. Also if you would like to learn more about portfolio optimization, try quant.SE\"",
"title": ""
},
{
"docid": "8568a818f3a0c4a7473017be99a53d48",
"text": "\"I found an answer by Peter Selinger, in two articles, Tutorial on multiple currency accounting (June 2005, Jan 2011) and the accompanying Multiple currency accounting in GnuCash (June 2005, Feb 2007). Selinger embraces the currency neutrality I'm after. His method uses \"\"[a]n account that is denominated as a difference of multiple currencies... known as a currency trading account.\"\" Currency trading accounts show the gain or loss based on exchange rates at any moment. Apparently GnuCash 2.3.9 added support for multi-currency accounting. I haven't tried this myself. This feature is not enabled by default, and must be turned on explicity. To do so, check \"\"Use Trading Accounts\"\" under File -> Properties -> Accounts. This must be done on a per-file basis. Thanks to Mike Alexander, who implemented this feature in 2007, and worked for over 3 years to convince the GnuCash developers to include it. Older versions of GnuCash, such as 1.8.11, apparently had a feature called \"\"Currency Trading Accounts\"\", but they behaved differently than Selinger's method.\"",
"title": ""
},
{
"docid": "997f0f9359909638ba6dddaae7005403",
"text": "First of all, I didn't say anything about Bitcoin - nothing I said was even related to Bitcoin but rather the inherent value of the market beyond a cryptocurrency. This market is at the beginning stages right now, so of course you are going to have schemes and scammers, why wouldn't you? The established financial market as it stands today has been around for a while and still has schemes and scammers. Wherever there is money, specifically copious amounts of money, you will have people trying to game the system or pull the wool over other people's eyes. Sometimes in life, the sheep get slaughtered, so I am not really sure why certain people losing their ass in crypto could be considered different from people losing their ass in other financial instruments. You ever been to /r/wallstreetbets? Your basic view is more than likely developed from what you are reading in main stream outlets, which is why I encouraged you to go beyond what you are reading in the easily accessible, and often way behind and misinformed, news sources and go straight to the updated and credible sources, usually from the developers themselves. ICOs alone have proven themselves to be a new and revolutionary capital raising instrument. It makes sense that traditional and conservative finance communities would be opposed to it because it disrupts their ecosystem and gives not only very new companies, but non-accredited investors an opportunity to participate. When major VCs are able to look at ICOs, which are in direct competition to their industry and purpose, and say to themselves wow, what an innovative way to raise capital - that's a big deal. Regarding anonymity, the purpose of most cryptocurrencies and protocols isn't focused on that, it is usually a side effect of the decentralization of the ecosystem in general. Bitcoin isn't even a top coin for anonymity, which is again why I suggested you research the industry. Several projects are being launched and have been launched that will help revolutionize certain areas of the web, ranging from predictive markets with projects like Augur and Gnosis, to the Golem Network which taps into idle computer time for users that need additional computing power. Even something like Steem which is essentially a social platform similar to reddit which utilizes its own token system so content creators within the ecosystem can receive monetary payment for their time and contribution to the site and the community from other users. Imagine instead of an upvote, you received money. To reiterate, we are at the beginning stages of seeing what is to come in the space. Many of these projects will fail, and many new ones will launch. As blockchain technology continues to grow not only individually, but in tandem with the IoT industry, there are scenarios where machines are interacting, bartering, and negotiating with each other, without human interaction or intervention, to agree on payments for products and services and then conducting said payments.",
"title": ""
},
{
"docid": "16b63e18f2e95db3e1bdd38ff0c20108",
"text": "You can use Yahoo! Finance to pull this information in my use. It is listed under Key Statistics -> Dividends & Splits. For example here is Exxon Mobile (XOM): Dividend Payout Information",
"title": ""
},
{
"docid": "55bd82392b9f03e4190e3d4436bb95c2",
"text": "Thank you. Added to my list. This is very very helpful. I knew about the blockchain and the currency. Unfortunately, I'm not a pedant about differentiating between them with capitalising the first letter. I do not, however, understand Ethereum very well at all. So will read up.",
"title": ""
},
{
"docid": "4e2f45c23e571baea4581cfc708711d9",
"text": "\"For any accounts where you have a wish to keep track of dividends, gains and losses, etc., you will have to set up a an account to hold the separately listed securities. It looks like you already know how to do this. Here the trading accounts will help you, especially if you have Finance:Quote set up (to pull security prices from the internet). For the actively-managed accounts, you can just create each managed account and NOT fill it with the separate securities. You can record the changes in that account in summary each month/year as you prefer. So, you might set up your chart of accounts to include these assets: And this income: The actively-managed accounts will each get set up as Type \"\"Stock.\"\" You will create one fake security for each account, which will get your unrealized gains/losses on active accounts showing up in your trading accounts. The fake securities will NOT be pulling prices from the internet. Go to Tools -> Securities Editor -> Add and type in a name such as \"\"Merrill Lynch Brokerage,\"\" a symbol such as \"\"ML1,\"\" and in the \"\"Type\"\" field input something like \"\"Actively Managed.\"\" In your self-managed accounts, you will record dividends and sales as they occur, and your securities will be set to get quotes online. You can follow the general GnuCash guides for this. In your too-many-transactions actively traded accounts, maybe once a month you will gather up your statements and enter the activity in summary to tie the changes in cost basis. I would suggest making each fake \"\"share\"\" equal $1, so if you have a $505 dividend, you buy 505 \"\"shares\"\" with it. So, you might have these transactions for your brokerage account with Merrill Lynch (for example): When you have finished making your period-end summary entries for all the actively-managed accounts, double-check that the share balances of your actively-managed accounts match the cost basis amounts on your statements. Remember that each fake \"\"share\"\" is worth $1 when you enter it. Once the cost basis is tied, you can go into the price editor (Tools -> Price Editor) and enter a new \"\"price\"\" as of the period-end date for each actively-managed account. The price will be \"\"Value of Active Acct at Period-End/Cost of Active Acct at Period-End.\"\" So, if your account was worth $1908 but had a cost basis of $505 on Jan. 31, you would type \"\"1908/505\"\" in the price field and Jan. 31, 2017 in the date field. When you run your reports, you will want to choose the price source as \"\"Nearest in Time\"\" so that GnuCash grabs the correct quotes. This should make your actively-managed accounts have the correct activity in summary in your GnuCash income accounts and let them work well with the Trading Accounts feature.\"",
"title": ""
},
{
"docid": "26ce60fef4f08824a11abf3f8009ba3b",
"text": "The IRS defines income quite specifically. On the topic What is Taxable and Nontaxable Income, they note: You can receive income in the form of money, property, or services. This section discusses many kinds of income that are taxable or nontaxable. It includes discussions on employee wages and fringe benefits, and income from bartering, partnerships, S corporations, and royalties. Bartering, or giving someone wages (or similar) in something other than currency (or some other specifically defined things, like fringe benefits), is taxed at fair market value: Bartering Bartering is an exchange of property or services. You must include in your income, at the time received, the fair market value of property or services you receive in bartering. For additional information, Refer to Tax Topic 420 - Bartering Income and Barter Exchanges. Bartering is more specifically covered in Topic 420 - Bartering Income: You must include in gross income in the year of receipt the fair market value of goods or services received from bartering. Generally, you report this income on Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship), or Form 1040, Schedule C-EZ (PDF), Net Profit from Business (Sole Proprietorship). If you failed to report this income, correct your return by filing a Form 1040X (PDF), Amended U.S. Individual Income Tax Return. Refer to Topic 308 for information on filing an amended return. More details about income in general beyond the above articles is available in Publication 525, Taxable and Nontaxable Income. It goes into great detail about different kinds of income. In your example, you'd have to calculate the fair market value of an avocado, and then determine how much cash-equivalent you were paid in. The IRS wouldn't necessarily tell you what that value was; you'd calculate it based on something you feel you could justify to them afterwards. The way I'd do it would be to write down the price of avocados at each pay period, and apply a dollar-cost-averaging type method to determine the total pay's fair value. While the avocado example is of course largely absurd, the advent of bitcoins has made this much more relevant. Publication 525 has this to say about virtual currency: Virtual Currency. If your employer gives you virtual currency (such as Bitcoin) as payment for your services, you must include the fair market value of the currency in your income. The fair market value of virtual currency (such as Bitcoin) paid as wages is subject to federal income tax withholding, Federal Insurance Contribution Act (FICA) tax, and Federal Unemployment Tax Act (FUTA) tax and must be reported on Form W-2, Wage and Tax Statement. Gold would be fundamentally similar - although I am not sure it's legal to pay someone in gold; assuming it were, though, its fair market value would be again the definition of income. Similarly, if you're paid in another country's currency, the US dollar equivalent of that is what you'll pay taxes on, at the fair market value of that currency in US dollars.",
"title": ""
},
{
"docid": "cccc3b578e26b8a40415ddcb570733a4",
"text": "They are almost always behind paywalls. The analysts that write these reports need to get paid somehow. I'd search for reports on google by specific topic and see what you find, but no where is there a treasure trove of free information",
"title": ""
},
{
"docid": "68d069f48a9bebbba5227acc3570bd26",
"text": "Given your clarification that you re only intending to use cryptocurrency as a capital asset & a long term investment vehicle, and not as a business day trading or trading for others, I would say this definitely is NOT illegal. The tax man says cryptocurrency is property. The IRS made this clear in Notice 2014-21. As long as you report it every time you do transfer it and an income loss/gain is triggered, I see nothing wrong here.",
"title": ""
},
{
"docid": "f399e7e9098c6bbad3d22e8ddc292eba",
"text": "Google finance will allow you to import earnings report dates directly to your Google calendar. See screenshot with calendar import button circled in red below.",
"title": ""
},
{
"docid": "0e0acf8570f6c8d5bd223677432323f3",
"text": "Good read. Also... so true. I've been in this crypto thing since 2014, and it's all manipulation all the time. In both bull and bear markets. Edit: Whoops, thought I was in r/ethtrader lol, guess I got something to crosspost over there now ;-P",
"title": ""
},
{
"docid": "984a0df7f2f718d037aefe13c7f31b80",
"text": "Ethereum trades are not subject to the same rules as securities are. Thats the primary flaw in your assessment. Yes, cryptocurrency is a free trading arena where you can actually take advantage of market inefficiencies yourself 24 hours a day, 7 days a week, at massive profits. The equity securities markets are not like that, and can't be used as a comparison. If you have a preference for flexibility, then it is already clear which markets work better for you. Market makers can make stub quotes, brokers can easily block their retail customers from doing it themselves. Even the dubious market manipulation excuse is reference to a sanction exclusive to the equity markets. The idea that it went through a week earlier probably triggered the compliance review. Yes, a broker can refuse to place your limit order.",
"title": ""
}
] |
fiqa
|
e6e030f8b0cdbbd1a9eabcce0a64bb50
|
Allocation between 401K/retirement accounts and taxable investments, as a young adult?
|
[
{
"docid": "85db41ab3a27e8a646bd08a60979c754",
"text": "I'm afraid you're mistaking 401k as an investment vehicle. It's not. It is a vehicle for retirement. Roth 401k/IRA has the benefit of tax free distributions at retirement, and as long as you're in the low tax bracket - it is for your benefit to take advantage of that. However, that is not the money you would be using to start a business or buy a home (except for maybe up to $10K you can withdraw without penalty for first time home buyers, but I wouldn't bother with $10k, if that's what will help you buying a house - maybe you shouldn't be buying at all). In addition, you should make sure you take advantage of the employer 401k match in full. That is free money added to your Traditional 401k retirement savings (taxed at distribution). Once you took the full advantage of the employer's match, and contributed as much as you consider necessary for your retirement above that (there are various retirement calculators on line that can help you in making that determination), everything else will probably go to taxable (regular) savings/investments.",
"title": ""
},
{
"docid": "9bfb14f75b20b2131bdcdd92b68e6dc4",
"text": "I would say yes, it makes sense to keep some money in taxable accounts. Retirement accounts are for retirement, and the various early withdrawal penalties are designed to enforce that. If you're anticipating using the money before retirement (e.g., for home purchase), it makes sense to keep it out of retirement accounts. On the other hand, be aware that, regardless of what kind of account it is in, you face the usual risk/return tradeoff. If you put your money in the S&P 500 and the S&P 500 tanks just before you were going to buy a house, your down payment evaporates and you will have to wait and buy a house later. You can manage this by shifting the allocation of this money and perhaps cashing it out if a certain amount is gained (i.e., it grows to the level of your target down payment) and you are close enough to the house purchase time that you don't want to risk it anymore. Basically, if you invest money for a pre-retirement use, you may want to keep it in a taxable account, but you also need to take account of when you'll need it and manage the risk accordingly.",
"title": ""
},
{
"docid": "e6c8b1e498bfe432c9740072490da7e1",
"text": "First off, great job on your finances so far. You are off on the right foot and have some sense of planning for the future. Also, it is a great question. First, I agree with @littleadv. Take advantage of your employer match. Do not drop your 401(k) contributions below that. Also, good job on putting your contributions into the Roth account. Second, I would ask: Are you out of debt? If not, put all your extra income towards paying off debt, and then you can work your plan. Third, time to do some math. What will your business look like? How much capital would you need to get started? Are there things you can do now on a part-time basis to start this business or prepare you to start the business? Come up with a figure, find some mutual funds that have a low beta, and back out how much money you need to save per month, so you have around that total. Then you have a figure. e.g. Assume you need $20,000, and you find a fund that has done 8% over the past 20 years. Then, you would need to save about $110/month to be ready to go in 10 years, or $273/month to go in about 5 years. (It's a time value of money calculation.) The house is really a long way off, but you could do the same kind of calculation. I feel that you think your income, and possibly locale, will change dramatically over the next few years. It might not be bad to double what you are saving for the business, and designate one half for the house.",
"title": ""
}
] |
[
{
"docid": "b57b3a32bfd52fec3ec9ac55da0dc76a",
"text": "Kudos to you on having money in a retirement account as early as after college. Many people don't start investing towards retirement until far to late and compound interest makes a major difference in those early years. Ideally, neither withdraw nor borrow from these accounts. Withdrawing from your 403b will incur a 10% penalty unless you are over the minimum age on top of the normal tax on that income. With a 401K loan you're putting yourself at risk if you run into a situation where you can't pay the loan back of incurring the same penalties as an early withdrawal. This article covers the concerns well. In general, you want to view your retirement money as untouchable until the distributions need to start coming in retirement. It's your future in there. Of course, this doesn't help the short term cash need. Do you have money in an emergency fund somewhere? Could a relative loan you money? Can you move to a less expensive place in advance and squirrel away some of what would have been your rent cash? Can you cut back to bare necessities and do the same? Do you have some nice stuff sitting around that you could sell to make up that needed cash? Will your current employer pay out unused vacation or are you getting any severance from this situation? Will you qualify for unemployment? I other words, think about what you would do to get the money if your retirement accounts weren't there. Then do that - as long as it's legal and doesn't involve running up debt on high interest lines of credit - instead of borrowing against your future.",
"title": ""
},
{
"docid": "17d8e4f29e00cd50db0ad51da51ed795",
"text": "\"Your retirement PLAN is a lifelong plan and shouldn't be tied to your employer status. Max out your 401(k) contribution to the maximum that your employer matches (that's a 100% ROI!) and as much as you can afford. When you leave the work force rollover your 401(k) to an IRA account (e.g.: you can create an IRA account with any of the online brokerage firms Schwab, E-Trade, Sharebuilder, or go with a brick-and-mortar firm like JP Morgan, Stifel Nicolaus, etc.). You should have a plan: How much money do you need/month for your expenses? Accounting for inflation, how much is that going to be at retirement (whatever age you plan to retire)? How much money do you need to have so that 4.5% of that money will provide for your annual living expenses? That's your target retirement amount of savings. Now figure out how to get to that target. Rule #1 Invest early and invest often! The more money you can sock away early in your career the more time that money has to grow. If you aren't comfortable allocating your investments yourself then you could go with a Targeted Retirement Fund. These funds have a general \"\"date\"\" for retirement and the assets are allocated as appropriate for the amount of risk appropriate for the time to retirement.\"",
"title": ""
},
{
"docid": "1b53879e7b20f0f8145042b709438017",
"text": "A 401K (pre-tax or Roth) account or an IRA (Deductible or Roth) account is a retirement account. Which means you delay paying taxes now on your deposits, or you avoid paying taxes on your earnings later. But a retirement account doesn't perform any different than any other account year-to-year. Being a retirement account doesn't dictate a type of investment. You can invest in a certificate of deposit that is guaranteed to make x% this year; or you can invest in stocks, bonds, mutual funds that infest in stocks or bonds. Those stocks and bonds can be growth focused, or income focused; they can be from large companies or small companies; US companies or international companies. Or whatever mix you want. The graph in your question shows that if you invest early in your adulthood, and keep investing, and you make the average return you should make more money than starting later. But a couple of notes: So to your exact questions: An S&P 500 investment should perform exactly the same this year if it is in a 401K, IRA, or taxable account With a few exceptions: Yes any investment can lose money. The last 6 months have been volatile and the last month and a half especially so. A retirement account isn't any different. An investment in mutual fund X in a retirement account is just as depressed a one in the same fund but from a taxable account.",
"title": ""
},
{
"docid": "fbcc31b3b194bb4a06218bfa4438d6f3",
"text": "The stock market at large has about a 4.5% long-term real-real (inflation-fees-etc-adjusted) rate of return. Yes: even in light of the recent crashes. That means your money invested in stocks doubles every 16 years. So savings when you're 25 and right out of college are worth double what savings are worth when you're 41, and four times what they're worth when you're 57. You're probably going to be making more money when you're 41, but are you really going to be making two times as much? (In real terms?) And at 57, will you be making four times as much? And if you haven't been saving at all in your life, do you think you're going to be able to start, and make the sacrifices in your lifestyle that you may need? And will you save enough in 10 years to live for another 20-30 years after retirement? And what if the economy tanks (again) and your company goes under and you're out of a job when you turn 58? Having tons of money at retirement isn't the only worthy goal you can pursue with your money (ask anyone who saves money to send kids to college), but having some money at retirement is a rather important goal, and you're much more at risk of saving too little than you are of saving too much. In the US, most retirement planners suggest 10-15% as a good savings rate. Coincidentally, the standard US 401(k) plan provides a tax-deferred vehicle for you to put away up to 15% of your income for retirement. If you can save 15% from the age of 20-something onward, you probably will be at least as well-off when you retire as you are during the rest of your life. That means you can spend the rest on things which are meaningful to you. (Well, you should also keep around some cash in case of emergencies or sudden unemployment, and it's never a good idea to waste money, but your responsibilities to your future have at least been satisfied.) And in the UK you get tax relief on your pension contribution at your income tax rate and most employers will match your contributions.",
"title": ""
},
{
"docid": "c6f6677d20e230c40d920a308650385e",
"text": "This is a purely numerical statement that you should be able to check (and you CPA friend should be able to prove, if true). The general advice, I think, is that you should not use your retirement funds this way, but general advice does not apply equally well to everyone. You didn't give enough information for us to compute the answer, so you're on your own there. If you do this (or have the CPA do it), make sure that it accounts for all pluses and minuses that you'll have. On the minus side, you get any direct penalties in addition to potential loss of right to contribute for a period of time, so make sure you consider both aspects, especially to any degree that you would lose an employer contribution or match. Also consider the fact that the money already in is tax advantaged, and you won't be able to replace that amount later. So there will be a compounding effect to what was lost. (This may or may not be balanced by a mortgage interest deduction down the road - My guess is that it will not, but, again, the details of your situation may dictate a different path. The mortgage interest deduction decreases each year as you pay more principal whereas the compounding from being tax deferred tends to increase each year.)",
"title": ""
},
{
"docid": "61983126d87c9525df8f5091a81f81dd",
"text": "Even ignoring the match (which makes it like a non-deductible IRA), the 401k plans that I know all have a range of choices of investment. Can you find one that is part of the portfolio that you want? For example, do you want to own some S&P500 index fund? That must be an option. If so, do the 401k and make your other investments react to it-reduce the proportion of S&P500 because of it(remember that the values in the 401k are pretax, so only count 60%-70% in asset allocation). The tax deferral is huge over time. For starters, you get to invest the 30-40% you would have paid as taxes now. Yes, you will pay that in taxes on withdrawal, but any return you generate is (60%-70%) yours to keep. The same happens for your returns.",
"title": ""
},
{
"docid": "2aa93b6a6be9b61f170f6d4804ceb9ff",
"text": "When you are a certain age you will be able to tap into your retirement accounts, or start receiving pension and social security funds. In addition you may be faced with required minimum distributions from these accounts. But even before you get to those points you will generally shift the focus of new funds into the retirement account to be more conservative. Depending on the balances in the various accounts and the size of the pension and social security accounts you may even move invested funds from aggressive to conservative investments. The proper proportion of the many different types of investments and revenue streams is open to much debate. During retirement you will be pulling money out of retirement accounts either to support your standard of living or to meet the required minimum distributions. What to sell will be based on either the tax implications or the required distributions that will still maintain the asset allocation you desire. If your distributions are driven by the law you will be selling enough to meet a specific required $ figure. You will either spend that money or move it into a low interest savings account or a non-retirement investment account. If trying to meet your standard of living expectations you will be selling funds that allow you to keep your desired asset allocation but still have enough to live on. Again you will be trying to meet a specific $ figure. Of course you may decide at anytime in retirement to rebalance based on changes to your lifestyle, family obligations, or winning the lottery.",
"title": ""
},
{
"docid": "b34aa7326520b675b329ec563884becd",
"text": "\"I can't find a decent duplicate, so here are some general guidelines: First of all by \"\"stocks\"\" the answers generally mean \"\"equities\"\" which could be either single stocks or mutual funds that consist of stocks. Unless you have lots of experience that can help you discern good stocks from bad, investing in mutual funds reduces the risk considerably. If you want to fine-tune the plan, you can weigh certain categories higher to change your risk/return profile (e.g. equity funds will have higher returns and risk than fixed income (bond) funds, so if you want to take a little more risk you can put more in equity funds and less in fixed income funds). Lastly, don't stress too much over the individual investments. The most important thing is that you get as much company match as you can. You cannot beat the 100% return that comes from a company match. The allocation is mostly insignificant compared to that. Plus you can probably change your allocation later easily and cheaply if you don't like it. Disclaimer: these are _general_ guidelines for 401(k) investing in general and not personal advice.\"",
"title": ""
},
{
"docid": "880c472155f647b17b728aa8863c09a8",
"text": "Personally, I do asset allocation separately for personal investing and for retirement investing, as I the two have vastly different purposes and I have vastly different goals for each. YMMV depending on how you view your non-retirement investments, and how close you are to retirement.",
"title": ""
},
{
"docid": "7cd60ad2ae043e9c944af2dfb322ec67",
"text": "Congratulations on deciding to save for retirement. Since you cite Dave Ramsey as the source of your 15% number, what does he have to say about where to invest the money? If you want to have instantaneous penalty-free access to your retirement money, all you need to do is set up one or more ordinary accounts that you think of as your retirement money. Just be careful not to put the money into CDs since Federal law requires a penalty of three months interest if you cash in the CD before its maturity date (penalty!) or put the money into those pesky mutual funds that charge a redemption fee (penalty!) if you take the money out within x months of investing it where x can be anywhere from 3 to 24 or more. In Federal tax law (and in most state tax laws as well) a retirement account has special privileges accorded to it in that the interest, dividends, capital gains, etc earned on the money in your retirement account are not taxed in the year earned (as they would be in a non-retirement account), but the tax is either deferred till you withdraw money from the account (Traditional IRAs, 401ks etc) or is waived completely (Roth IRAs, Roth 401ks etc). In return for this special treatment, penalties are imposed (in addition to tax) if you withdraw money from your retirement account before age 59.5 which presumably is on the distant horizon for you. (There are some exceptions (including first-time home buying and extraordinary medical expenses) to this rule that I won't bother going into). But You are not required to invest your retirement money into such a specially privileged retirement account. It is perfectly legal to keep your retirement money in an ordinary savings account if you wish, and pay taxes on the interest each year. You can invest your retirement money into municipal bonds whose interest is free of Federal tax (and usually free of state tax as well if the municipality is located in your state of residence) if you like. You can keep your retirement money in a sock under your mattress if you like, or buy a collectible item (e.g. a painting) with it (this is not permitted in an IRA), etc. In short, if you are concerned about the penalties imposed by retirement accounts on early withdrawals, forgo the benefits of these accounts and put your retirement money elsewhere where there is no penalty for instant access. If you use a money management program such as Mint or Quicken, all you need to do is name one or more accounts or a portfolio as MyRetirementMoney and voila, it is done. But those accounts/portfolios don't have to be retirement accounts in the sense of tax law; they can be anything at all.",
"title": ""
},
{
"docid": "b51bdc6441f74a431c608763fe3fecd4",
"text": "There are not as many options here as you fear. If you have no other investments outside this 401K it is even easier. Outside accounts include IRA, Roth IRA, taxable investments (mutual funds, ETF, individual stocks), Employee stock purchase plans. Amount: make sure you put enough in to get all the company match. I assume that in your case the 9% will do so, but check your documents. The company match will be with pre-tax funds. Roth vs Regular 401K? Most people in their lifetime will need a mix of Roth and Regular retirement accounts. You need to determine if it is better for you to pay the tax on your contributions now or later. Which accounts? If you are going to invest in a target date fund, you can ignore the rest of the options. The target date fund is a mixture of investments that will change over the decades. Calculate which one fits your expected retirement date and go with it. If you want to be able to control the mix, then you will need to pick several funds. The selection depends on what non-401K investments you have. Now here is what I considered the best advice. Decide Roth or regular, and just put the money into the most appropriate target date fund with the Roth/regular split you want. Then after the money starts flowing into your account, research the funds involved, the fees for those funds, and how you want to invest. Then move the money into the funds you want. Don't waste another day deciding how to invest. Just get started. The best part of a 401K, besides the match, is that you can move money between funds without worrying about taxes. If you realize that you want to put extra emphasis on the foreign stocks, or Mid-cap; just move the funds and redirect future contributions.",
"title": ""
},
{
"docid": "6d9b14586d09eb390c20f4fa45656bd2",
"text": "\"This is actually (to me) an interesting point to note. While the answer is \"\"that's what Congress wrote,\"\" there are implications to note. First, for many, the goal of tax deferral is to shift 25% or 28% income to 15% income at retirement. With long term gains at 15%, simply investing long term post tax can accomplish a similar goal, where all gain is taxed at 15%. Looking at this from another angle, an IRA (or 401(k) for that matter) effectively turns long term gains into ordinary income. It's a good observation, and shouldn't be ignored.\"",
"title": ""
},
{
"docid": "bc904594eeef2dc814c1121ab7f0ffd0",
"text": "The biggest challenge as a young person maxing out a 401k in my opinion is the challenge of saving for a house, and (if necessary) paying off student loans. You have to consider - are you OK renting for the next 3, 5, 10 years? Or do you eventually want to buy a place? how much will that cost vs your current expenses? That being said, I didn't max out but had over 8-10% of 401k contribution in the same situation you're in right now and I don't regret it. Rereading your question, I see you are considering investing in a Roth IRA. Especially at your current age, assuming your wages will go UP, investing to the company match with the 401K and then maxing out a Roth IRA would be my recommendation. THEN continue maxing out the 401k (if you wish). P.S. I highly recommend doing two things if you go down this path:",
"title": ""
},
{
"docid": "789d3dcae90ef6d21ef686157bc50cf5",
"text": "I would open a taxable account with the same custodian that manages your Roth IRA (e.g., Vanguard, Fidelity, etc.). Then within the taxable account I would invest the extra money in low cost, broad market index funds that are tax efficient. Unlike in your 401(k) and Roth IRA, you will now have tax implications if your funds produce dividends or realize a capital gain. That is why tax-efficient funds are important to minimize this as much as possible. The 3-fund portfolio is a popular choice for taxable accounts because of simplicity and the tax efficiency of broad market index funds that are part of the three fund portfolio. The 3-fund portfolio normally consists of Depending on your tax bracket you may want to consider municipal bonds in your taxable instead of taxable bonds if your tax bracket is 25% or higher. Another option is to forgo bonds altogether in the taxable account and just hold bonds in retirement accounts while keeping tax efficient domestic and international tock funds in your taxable account. Then adjust the bond portion upward in your retirement accounts to account for the additional stocks in your taxable accounts. This will maintain the asset allocation that you've already chosen that is appropriate for your age and goals.",
"title": ""
},
{
"docid": "1286da8a6b6708506c4ec2759ac83219",
"text": "\"While I can appreciate you're coming from a strongly held philosophy, I disagree strongly with it. I do not have any 401k or IRA I don't like that you need to rely on government and keep the money there forever. A 401k and an IRA allows you to work within the IRS rules to allow your gains to grow tax free. Additionally, traditional 401ks and IRAs allow you to deduct income from your taxes, meaning you pay less taxes. Missing out on these benefits because the rules that established them were created by the IRS is very very misguided. Do you refuse to drive a car because you philosophically disagree with speed limits? I am planning on spending 20k on a new car (paying cash) Paying cash for a new car when you can very likely finance it for under 2% means you are loosing the opportunity to invest that money which can conservatively expect 4% returns annually if invested. Additionally, using dealership financing can often be additional leverage to negotiate a lower purchase price. If for some reason, you have bad credit or are unable to secure a loan for under 4%, paying cash might be reasonable. The best thing you have going for you is your low monthly expenses. That is commendable. If early retirement is your goal, you should consider housing expenses as a part of your overall plan, but I would strongly suggest you start investing that money in stocks instead of a single house, especially when you can rent for such a low rate. A 3 fund portfolio is a classic and simple way to get a diverse portfolio that should see returns in good years and stability in bad years. You can read more about them here: http://www.bogleheads.org/wiki/Three-fund_portfolio You should never invest in individual stocks. People make lots of money to professionally guess what stocks will do better than others, and they are still very often wrong. You should purchase what are sometimes called \"\"stocks\"\" but are really very large funds that contain an assortment of stocks blended together. You should also purchase \"\"bonds\"\", which again are not individual bonds, but a blend of the entire bond market. If you want to be very aggressive in your portfolio, go with 100-80% Stocks, the remainder in Bonds. If you are nearing retirement, you should be the inverse, 100-80% bonds, the remainder stocks. The rule of thumb is that you need 25 times your yearly expenses (including taxes, but minus pension or social security income) invested before you can retire. Since you'll be retiring before age 65, you wont be getting social security, and will need to provide your own health insurance.\"",
"title": ""
}
] |
fiqa
|
d9b8db81646dee94276ba5471dde796f
|
Income Tax form in India for freelancing
|
[
{
"docid": "3829f2bd93fbc08fcf8d58ebe3c01c34",
"text": "\"ITR1 or ITR2 needs to be filed. Declare the income through freelancing in the section \"\"income from other sources\"\"\"",
"title": ""
},
{
"docid": "c9465295f9681f3dc74f2e647335bfdd",
"text": "Since you are living in India and earning income not from salary, you must file your tax return under ITR4(Profits or Gains of Business or Profession). You can do it online on IncomeTax India eFiling website, step by step guide available here.",
"title": ""
}
] |
[
{
"docid": "cb319900a611592c04987f31bf73e25a",
"text": "Please consult at CA for specific's to your case. In general any income earned abroad can be brought to India tax free within 7 years. For more details refer to http://www.nritaxservices.com/ret_indn.htm",
"title": ""
},
{
"docid": "358ca6cdfe9780ec08e4a2d93d91605b",
"text": "My understanding (I am not a lawyer or tax expert) is that you are not allowed to work for free, but you can pay yourself minimum wage for the hours worked. There are probably National Insurance implications as well but I don't know. The main thing is, though, that if HMRC think that you've set up this system as a tax avoidance scheme then they're allowed to tax you as though all the income had been yours in the first place. If you are considering such a setup I would strongly advise you to hire a qualified small business accountant who will be familiar with the rules and will be able to advise you on what is and is not possible / sensible. Falling outside the rules (even inadvertently) leaves you liable to a lot of hassle and potentially fines etc.",
"title": ""
},
{
"docid": "b0e89d948d1a3eeeb4332ed2e5712a2a",
"text": "Tax Deducted at source is applicable to Employee / Employer [contract employee] relations ... it was also made applicable for cases where an Indian company pays for software products [like MS Word etc] as the product is not sold, but is licensed and is treated as Royalty [unlike sale of a consumer product, that you have, say car] ... Hence it depends on how your contract is worded with your India clients, best is have it as a service agreement. Although services are also taxed, however your contract should clearly specify that any tax in India would be borne by your Indian Client ... Cross Country taxation is an advanced area, you will not find good advice free :)",
"title": ""
},
{
"docid": "6ebd3ca1df268ba1bfae8b9a1718218e",
"text": "There is no strict need to do that, you can consider yourself to be consulting, a 10% of your payment will be withheld and paid as tax by the company, you can deduct up to 60% of your income as expenses and pay tax on the rest (factoring the tax deducted at source). In another approach, you could register for service tax and charge service tax on your invoice and pay to the service tax department, the tax calculations are similar to above. It will be good if you speak to a chartered accountant and get more clarity. As for business card, you could print it with your name and qualification, there are no restrictions on that.",
"title": ""
},
{
"docid": "82d2d4a07821a9bb5dad39c545650d9a",
"text": "Assuming you have registered your activities as partnership and receiving this money as Individual, you need to show this under Schedule OS, 1d [other income]. this will be under the ITR-2 [tab CG-OS] XLS tax preparation utility given by Tax Department. The XLS can be found at https://incometaxindiaefiling.gov.in/portal/individual_huf.do If the funds you are receiving are large [more than say Rs 500,000] then suggest you incorporate a partnership firm or company, there are quite a few exceptions you can claim lowering you tax outgo. The fact that you are transferring funds to your partners can be an issue incase you get audited. You would need to have sufficient evidence to show that the money paid was for services rendered directly and not your income. It would be easier if you create a partnership or have the client directly pay to them. Again if the sum is small its fine, as the sum becomes large, it would get noticed by the tax authorities.",
"title": ""
},
{
"docid": "43840c5ebf587837d68e03a94f9ef63f",
"text": "Work under UK umbrella company. By this you are thinking of creating a new legal entity in UK, then its not a very great idea. There will be lot of paperwork, additional taxes in UK and not much benefit. Ask UK company to remit money to Indian savings bank account Ask UK company to remit money to Indian business bank account Both are same from tax point of view. Opening a business bank account needs some more paper work and can be avoided. Note as an independent contractor you are still liable to pay taxes in India. Please pay periodically and in advance and do not wait till year end. You can claim some benefits as work related expenses [for example a laptop / mobile purchase, certain other expenses] and reduce from the total income the UK company is paying",
"title": ""
},
{
"docid": "938db83ce9d0d8d64a670ca38b919a3b",
"text": "Note: This is not professional tax advice. If you think you need professional tax advice, find a licensed professional in your local area. What are the expected earnings/year? US$100? US$1,000? US$100,000? I would say if this is for US$1,000 or less that registering an EIN, and consulting a CPA to file a Partnership Tax return is not going to be a profitable exercise.... all the earnings, perhaps more, will go to paying someone to do (or help do) the tax filings. The simplest taxes are for a business that you completely own. Corporations and Partnerships involve additional forms and get more and more and complex, and even more so when it involves foreign participation. Partnerships are often not formal partnerships but can be more easily thought of as independent businesses that each participants owns, that are simply doing some business with each other. Schedule C is the IRS form you fill out for any businesses that you own. On schedule C you would list the income from advertising. Also on schedule C there is a place for all of the business expenses, such as ads that you buy, a server that you rent, supplies, employees, and independent contractors. Amounts paid to an independent contractor certainly need not be based on hours, but could be a fixed fee, or based on profit earned. Finally, if you pay anyone in the USA over a certain amount, you have to tell the IRS about that with a Form 1099 at the beginning of the next year, so they can fill out their taxes. BUT.... according to an article in International Tax Blog you might not have to file Form 1099 with the IRS for foreign contractors if they are not US persons (not a US citizen or a resident visa holder).",
"title": ""
},
{
"docid": "91bf2685d76dc455ccccee5fe87b85e3",
"text": "Depending on how much freelance work we're talking about you could set up a limited company, with you and your wife as directors. By invoicing all your work through the limited company (which could have many other benefits for you, an accountant/advisor would... well, advise...) it's the company earning the money, not you or her personally. You can then pay your wife up to £10,000 per year (as of writing this) without income tax kicking in. You would probably have to pay yourself a small amount to minimise exposure to HMRC's snooping, but possibly not... as far as I'm aware the rules do not state anything about working for free, for yourself - and I wouldn't worry about the ethics, you're already paying plenty into HMRC's bank account through your day job! Some good information here if you're interested: https://www.whitefieldtax.co.uk/web/psc-guide/pscguide-how-does-it-all-work-in-practice-salaries-and-dividends/",
"title": ""
},
{
"docid": "eb5e4540ed9c3be91b6757e702c98f9c",
"text": "The Canada Revenue Agency does indeed put out just the guide you want. It's at http://www.cra-arc.gc.ca/E/pub/tg/rc4070/rc4070-e.html - you should always take a good look at URLs to make sure they're really from the government and not from some for-profit firm that will charge you to fill out forms for free services. It covers ways to structure your business (probably a sole proprietor in your case), collecting and submitting GST or HST, sending in payroll remittances (if you pay yourself a T4 salary), and income tax including what you can deduct. It's a great place to start and you can use it as a source of keywords if you want to search for more details.",
"title": ""
},
{
"docid": "11d9870d5f19e2e39ff3218c3432a08f",
"text": "Yes you need to pay taxes in India. Show this as other income and pay tax according to your tax bracket. Note you need to pay the taxes quarterly if the net tax payable is more than 10,000.",
"title": ""
},
{
"docid": "8d031287980a46fd870886fd6610e129",
"text": "Yes. You must register for GST as well, if you will be making over the threshold (currently $60,000). That's probably a bonus for you, as your home office expenses will mostly include GST, but your income will most likely be zero-rated. Check with an accountant or with the IRD directly. Just be certain to put aside enough money from each payment to cover income tax, GST and ACC. You will get a very large bill in your second year of business.",
"title": ""
},
{
"docid": "2ef4e47b64b903efa22be3cfe708549a",
"text": "There are no clear guidelines. If you are selling as individual, then what ever profit you make gets added to your overall income as you pay tax accordingly. This is true for sole proprietor or partnership kind of firms. If you are registered as a Company, the profits are taxed as business income. There may be VAT and other taxes. Please consult a CA who can guide you in specifics as for eCommerce, there is no defined law and one has to interpret various other tax laws.",
"title": ""
},
{
"docid": "747434105a81d44117295b394b27c1ba",
"text": "Just type in the forms as they are, separately. That would be the easiest way both to enter the data without any mistakes, and ensure that everything matches properly with the IRS reports.",
"title": ""
},
{
"docid": "b0fe4f46c95a1af4c1c188eddc55166d",
"text": "For tax purposes you will need to file as an employee (T4 slips and tax withheld automatically), but also as an entrepreneur. I had the same situation myself last year. Employee and self-employed is a publication from Revenue Canada that will help you. You need to fill out the statement of business activity form and keep detailed records of all your deductible expenses. Make photocopies and keep them 7 years. May I suggest you take an accountant to file your income tax form. More expensive but makes you less susceptible to receive Revenue Canada inspectors for a check-in. If you can read french, you can use this simple spreadsheet for your expenses. Your accountant will be happy.",
"title": ""
},
{
"docid": "97cbde3c965690a53a5b344eaf7ebe19",
"text": "Forms 1099 and W2 are mutually exclusive. Employers file both, not the employees. 1099 is filed for contractors, W2 is filed for employees. These terms are defined in the tax code, and you may very well be employee, even though your employer pays you as a contractor and issues 1099. You may complain to the IRS if this is the case, and have them explain the difference to the employer (at the employer's expense, through fines and penalties). Employers usually do this to avoid providing benefits (and by the way also avoid paying payroll taxes). If you're working as a contractor, lets check your follow-up questions: where do i pay my taxes on my hourly that means does the IRS have a payment center for the tax i pay. If you're an independent contractor (1099), you're supposed to pay your own taxes on a quarterly basis using the form 1040-ES. Check this page for more information on your quarterly payments and follow the links. If you're a salaried employee elsewhere (i.e.: receive W2, from a different employer), then instead of doing the quarterly estimates you can adjust your salary withholding at that other place of work to cover for your additional income. To do that you submit an updated form W4 there, check with the payroll department on details. Is this a hobby tax No such thing, hobby income is taxed as ordinary income. The difference is that hobby cannot be at loss, while regular business activity can. If you're a contractor, it is likely that you're not working at loss, so it is irrelevant. what tax do i pay the city? does this require a sole proprietor license? This really depends on your local laws and the type of work you're doing and where you're doing it. Most likely, if you're working from your employer's office, you don't need any business license from the city (unless you have to be licensed to do the job). If you're working from home, you might need a license, check with the local government. These are very general answers to very general questions. You should seek a proper advice from a licensed tax adviser (EA/CPA licensed in your state) for your specific case.",
"title": ""
}
] |
fiqa
|
03d9b65f6f532efd2e4e9e10fe0d5e9a
|
Should I be filling out form W-9 for somebody I sold used equipment to?
|
[
{
"docid": "f1e3a3be118b48d06cf556ed92c5945f",
"text": "They are a business. You're not a corporation. They paid you more than $600 during the year, so they're supposed to send 1099 to you and the IRS about it. They need your taxpayer certification (W9) for that. They were supposed to ask for it before they paid you, but yes - they're supposed to ask for it.",
"title": ""
}
] |
[
{
"docid": "de91a74d3d2cb9541a9866e233ae6c28",
"text": "Typically that applies if the broker Form 1099-B reports an incorrect basis to the IRS. If the Form 1099-B shows incorrect basis relative to your records, then you can use 8949, column (g) to report the correct basis. The 8949 Instructions provide a brief example. http://www.irs.gov/pub/irs-prior/i8949--2013.pdf Although you have an obligation to report all income, and hence to report the true basis, as a practical matter this information will usually be correct as presented by the broker. If you have separate information or reports relating to your investments, and you are so inclined, then you can double-check the basis information in your 1099-B. If you aren't aware of basis discrepancies, then the adjustments probably don't apply to you and your investments can stick to Schedule D.",
"title": ""
},
{
"docid": "65c68a828b7a4907e8704f5296b345ee",
"text": "If you're under audit - you should get a proper representation. I.e.: EA or CPA licensed in California and experienced with the FTB audit representation. There's a penalty on failure to file form 1099, but it is with the IRS, not the FTB. If I remember correctly, it's something like $50 or $100 per instance. Technically they can disqualify deductions claiming you paid under the table and no taxes were paid on the other side, however I doubt they'd do it in a case of simple omission of filing 1099 forms. Check with your licensed tax adviser. Keep in mind that for the IRS 2011 is now closed, since the 3-year statute of limitations has passed. For California the statute is 4 years, and you're almost at the end of it. However since you're already under audit they may ask you to agree to extend it.",
"title": ""
},
{
"docid": "6325c6917fcb839f3924dfd764e8cc8a",
"text": "Your recruiter is likely trying to avoid having to pay the employer's side of employment taxes, and may even be trying to avoid having to file a 1099 for you by treating your relationship as a vendor/service provider that he is purchasing services from, which would make your pay just a business expense. It's definitely in his best interest for you to do it this way. Whether it's in your best interest is up to you. You should consult a licensed legal/tax professional to help you determine whether this is a good arrangement for you. (Most of the time, when someone starts playing tax avoidance games, they eventually get stung by it.) The next big question: If you already know this guy is a snake, why are you still working with him? If you don't trust him, why would you take legal/tax advice from him? He might land you a high-paying job. But he also might cause you years of headaches if his tax advice turns out to be flawed.",
"title": ""
},
{
"docid": "682533ea6458ceb27586506887e053bb",
"text": "Since you're a US citizen, submitting W8-BEN was wrong. If you read the form carefully, when you signed it you certified that you are not a US citizen, which is a lie and you knew it. W9 and W8 are mutually exclusive. You're either a US person for tax purposes or you're not, you cannot be both. As a US citizen - you are a US person for tax purposes, whether you have any other citizenship or not, and whether you live in (or have ever been to) the US or not. You do need to file tax returns just like any other US citizen. If you have an aggregate of $10K or more on your bank accounts outside of the US at any given day - you need to file FBAR. FATCA forms may also be applicable, depending on your balances. From foreign banks' perspective you're a US person, with regard to their FATCA obligations. Whether or not you'll be punished is hard to tell. Whether or not you could be punished is easy to tell: you could. You knowingly broke the law by certifying that you're not a US citizen when you were. That is in addition to un-filed tax returns, FBAR, etc etc. The fact that you were born outside of the US and have never lived there is technically irrelevant. Not knowing the law is not a reasonable cause for breaking it. Get a US-licensed tax adviser (EA/CPA licensed in the US) to help you sort it out.",
"title": ""
},
{
"docid": "c14d942d1cffc6f843d1aefbbc04b1f5",
"text": "\"1099's and other official tax forms are often reported to the IRS by the issuer, whether or not you include a copy in your return. You should not neglect to include this income in your 2016 return in an attempt to balance out the two tax years. It's up to you whether or not you feel like filing an amended 2015 return to recover over-payment of taxes from that tax year. You have up to three years to amend tax returns using form 1040X. Since you couldn't have furnished a 1099 for this when you filed your 2015 return (otherwise you wouldn't be in receipt of it for tax year 2016), I'm assuming you reported it simply as \"\"Other Income\"\" and therefore would have been [over] taxed your marginal rate on it. From irs.gov: When to amend a return. You should file an amended return if you need to correct your filing status, number of dependents, total income, tax deductions or tax credits. The instructions for Form 1040X, Amended U.S. Individual Income Tax Return, list additional reasons to amend a return.\"",
"title": ""
},
{
"docid": "11aa0d830ce41e174690756c06ce534f",
"text": "(do I need to get a W9 from our suppliers)? Will PayPal or Shopify send me a 1099k or something? Do not assume that you'll get paperwork from anyone. Do assume that you have to generate your own paperwork. Ideally you should print out some kind of record of each transaction. Note that it can be hard to view older transactions in PayPal, so start now. If you can't document something, write up a piece of paper showing the state of the world to the best of your knowledge. Do assume that you need separate receipts for each expenditure. The PayPal receipt might be enough (but print it in case the IRS wants to see it). A receipt from the vendor would be better (again, print it if it is online now). A CPA is not strictly necessary. A CPA is certified (the C in CPA) to formally audit the books of a corporation. In your case, any accountant would be legally sufficient. You still may want to use a CPA, as the certification, while technically unnecessary, still demonstrates knowledge. You may otherwise not be in a position to evaluate an accountant. A compromise option is to go to a firm that includes a CPA and then let them assign you to someone else to process the actual taxes. You are going to have to fill out some business tax forms. In particular, I would expect a schedule C. That's where you would show revenues and expenses. You may well have to file other forms as well.",
"title": ""
},
{
"docid": "b5dca99a685e3a33d3939c04c8107c93",
"text": "From the instructions: If you do not need to make any adjustments to the basis or type of gain or loss (short-term or long-term) reported to you on Form 1099-B (or substitute statement) or to your gain or loss for any transactions for which basis has been reported to the IRS (normally reported on Form 8949 with box A checked), you do not have to include those transactions on Form 8949. Instead, you can report summary information for those transactions directly on Schedule D. For more information, see Exception 1, later. However, in case of ESPP and RSU, it is likely that you actually do need to make adjustments. Since 2014, brokers are no longer required to track basis for these, so you better check that the calculations are correct. If the numbers are right and you just summarized instead of reporting each on a separate line, its probably not an issue. As long as the gains reported are correct, no-one will waste their time on you. If you missed several thousand dollars because of incorrect calculations, some might think you were intentionally trying to hide something by aggregating and may come after you.",
"title": ""
},
{
"docid": "df72925f51029c060510200978db244d",
"text": "Yes. This income would be reported on schedule SE. Normally, you will not owe any tax if the amount is less than $400. Practically, $100 in a garage sale is not why the IRS created the form SE. I wouldn't lose sleep over keeping track of small cash sales over the course of a year. However, if you have the information I'm not going to tell you not to report it.",
"title": ""
},
{
"docid": "45390f1ecd215cbde66ecaa8e7578bd6",
"text": "\"Gifts given and received between business partners or employers/employees are treated as income, if they are beyond minimal value. If your boss gives you a gift, s/he should include it as part of your taxable wages for payroll purposes - which means that some of your wages should be withheld to cover income, social security, and Medicare taxes on it. At the end of the year, the value of the gift should be included in Box 1 (wages) of your form W-2. Assuming that's the case, you don't need to do anything special. A 1099-MISC would not be appropriate because you are an employee of your boss - so the two of you need to address the full panoply of employment taxes, not just income tax, which would be the result if the payment were reported on 1099-MISC. If the employer wants to cover the cost to you of the taxes on the gift, they'll need to \"\"gross up\"\" your pay to cover it. Let's say your employer gives you a gift worth $100, and you're in a 25% tax bracket. Your employer has to give you $125 so that you end up with a gain of $100. But the extra $25 is taxable, too, so your employer will need to add on an extra $6.25 to cover the 25% tax on the $25. But, wait, now we've gotta pay 25% tax on the $6.25, so they add an extra $1.56 to cover that tax. And now they've gotta pay an extra $.39 . . . The formula to calculate the gross-up amount is: where [TAX RATE] is the tax rate expressed as a percentage. So, to get the grossed-up amount for a $100 gift in a 25% bracket, we'd calculate 1/(1-.25), or 1/.75, or 1.333, multiply that by the target gift amount of $100, and end up with $133.33. The equation is a little uglier if you have to pay state income taxes that are deductible on the federal return but it's a similar principle. The entire $133.33 would then be reported as income, but the net effect on the employee is that they're $100 richer after taxes. The \"\"gross-up\"\" idea can be quite complicated if you dig into the details - there are some circumstances where an additional few dollars of income can have an unexpected impact on a tax return, in a fashion not obvious from looking at the tax table. If the employer doesn't include the gift in Box 1 on the W-2 but you want to pay taxes on it anyway, include the amount in Line 7 on the 1040 as if it had been on a W-2, and fill out form 8919 to calculate the FICA taxes that should have been withheld.\"",
"title": ""
},
{
"docid": "8f5439eccba9927dbad2c3edb01e31dd",
"text": "Such activity is normally referred to as bartering income. From the IRS site - You must include in gross income in the year of receipt the fair market value of goods or services received from bartering. Generally, you report this income on Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship), or Form 1040, Schedule C-EZ (PDF), Net Profit from Business (Sole Proprietorship). If you failed to report this income, correct your return by filing a Form 1040X (PDF), Amended U.S. Individual Income Tax Return. Refer to Topic 308 and Amended Returns for information on filing an amended return.",
"title": ""
},
{
"docid": "35f09e6454b7f5a6700a7e3e843615d0",
"text": "\"This is going to depend on the tax jurisdiction and I have no knowledge of the rules in Illinois. But I'd like to give you some direction about how to think about this. The biggest problem that you might hit is that if you collect a single check and then distribute to the tutors, you may be considered their employer. As an employer, you would be responsible for things like This is not meant as an exhaustive list. Even if not an employer, you are still paying them. You would be responsible for issuing 1099 forms to anyone who goes above $600 for the year (source). You would need to file for a taxpayer identification number for your organization, as it is acting as a business. You need to give this number to the school so that they can issue the correct form to you. You might have to register a \"\"Doing Business As\"\" name. It's conceivable that you could get away with having the school write the check to you as an individual. But if you do that, it will show up as income on your taxes and you will have to deduct payments to the other tutors. If the organization already has a separate tax identity, then you could use that. Note that the organization will be responsible for paying income tax. It should be able to deduct payments to the tutors as well as marketing expenses, etc. If the school will go for it, consider structuring things with a payment to your organization for your organization duties. Then you tell the school how much to pay each tutor. You would be responsible for giving the school the necessary information, like name, address, Social Security number, and cost (or possibly hours worked).\"",
"title": ""
},
{
"docid": "9dab4f4eba07fe5cdd610a1ed0521d85",
"text": "You mentioned that the 1099B that reports this sale is for 2014, which means that you got the proceeds in 2014. What I suspect happened was that the employer reported this on the next available paycheck, thus reporting it in the 2015 period. If this ends up being a significant difference for you, I'd argue the employer needs to correct both W2s, since you've actually received the money in 2014. However, if the difference for you is not substantial I'd leave it as is and remember that the employer will not know of your ESPP sales until at least several days later when the report from the broker arrives. If you sell on 12/31, you make it very difficult for the employer to account correctly since the report from the broker arrives in the next year.",
"title": ""
},
{
"docid": "2f09f6c30dc4b1608d046520b3289e5d",
"text": "Is it right that I request form W-9 or form W-8BEN (for non U.S. citizens) from the affiliate users before sending them payments? Not just OK. Required. I know that I have to send form 1099, but I don't know where does this form should go to. Should I send it to the IRS or the affiliate user or both? Both. There's also form 1096 that you need to send to the IRS. Read the instructions. Should I send form 1099 once a year or each time I make a payment to the affiliate? Once a year. Read the instructions. Do I have to send form 1099 when the money earned by the affiliate hit a certain threshold or I have to send it anyway? $600 or more requires the form, but you can send for any amount. Read the instructions. Is there any other forms or documents to request from or send to the affiliate user or the IRS? There may be additional forms. Especially if the recipient is a foreign person and you withhold taxes. Talk to your tax adviser.",
"title": ""
},
{
"docid": "5aa15dc16f13f6e5780c55aa815a7dde",
"text": "This sounds like a rental fee as described in the instructions for the 1099-MISC. Enter amounts of $600 or more for all types of rents, such as any of the following. ... Non-Employee compensation does not seem appropriate because you did not perform a service. You mention that your tax-preparer brought this up. I think you will need to consult with a CPA to receive a more reliable opinion. Make sure to bring the contract that describes the situation with you. From there, you may need to consult a tax attorney, but the CPA should be able to help you figure out what your next step is.",
"title": ""
},
{
"docid": "e60c76c4257a2b9514250cba964fb1e6",
"text": "I believe it's not only legal, but correct and required. A 1099 is how a business reports payments to others, and they're required by the IRS to send them for payments of $600 or more (for miscalleneous payments like this). The payment is an expense to the landlord and income to you, and the 1099 is how that's documented (although note that if they don't send you a 1099, it's still income to you and you still need to report it as such). It's similar to getting a 1099-INT for interest payments or a 1099-DIV for dividend payments. You'll get a 1099-MISC for a miscellaneous payment. If you were an employee they'd send you a W-2, not a 1099.",
"title": ""
}
] |
fiqa
|
a5d98d76027571e271179fceaa40a11e
|
Where I am I liable for taxes?
|
[
{
"docid": "0aca48ad4b9f2b175753f2e40374432f",
"text": "You will have to pay your taxes in the UK not USA. For tax purposes it is the company's tax residency not where the server is located. You are just hiring a server in USA. Take for example a CDN being used for your same service then would you pay taxes in 300 different countries if you use Akamai? Does not work that way.",
"title": ""
}
] |
[
{
"docid": "6a0cbcb05915e5e3cec3557add8a537e",
"text": "\"And you were criticizing me for making blanket, general statements... Did you want to talk about something specific, or did you want to keep the discussion to the generalities like arguing about whether taxes are \"\"noble or ignoble\"\"? If it is the latter, than I get the gist of what you are saying, but disagree with you. And I say this from a position of paying a lot more in taxes than I am betting you do, so it is not from a position of rhetoric but actuality.\"",
"title": ""
},
{
"docid": "a4f1ab12228c85e6c3040b624c4fac10",
"text": "It sounds like you do. You earn money in NC, so that's where it is going to be taxed first.",
"title": ""
},
{
"docid": "315f44287b4b9fb02ee1ace85ecca3f4",
"text": "According to the Colorado form CY104PN, Colorado taxes income earned while working in or being a resident of the State of Colorado. Assuming you never set foot in the State of Colorado, I read it as if you will only be liable to pay taxes in the State of New York (on all of your income, of course). You can get a more reliable opinion from a Colorado-licensed CPA.",
"title": ""
},
{
"docid": "6ef443450b7a2e0334cec2673e52f06d",
"text": "\"You would put your earnings (and expenses, don't forget) on Schedule C, and then do a Schedule SE for self-employment tax. http://www.irs.gov/businesses/small/article/0,,id=98846,00.html 1040ES isn't used to compute taxes, it's used to pay taxes. Generally you are supposed to pay taxes as you go, rather than when you file. There are exceptions where you won't be penalized for paying when you file, \"\"most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller\"\" from http://www.irs.gov/taxtopics/tc306.html i.e. there's a safe harbor as long as you pay as much as you owed the year before. If you owe a lot at the end of the year a second time in a row, then you get penalized.\"",
"title": ""
},
{
"docid": "925928cbba365a3c9a5f6a9aab4fb112",
"text": "There are ways to avoid having federal income taxes withheld: In order to avoid withholding altogether, you’ll have to fall into both of the following categories: you have no tax liability this year and you had no tax liability in the previous tax season, so all of the federal income tax you paid was given back to you. Generally, you can say you have no tax liability when you’re not required to file an income tax return or you owe zero taxes. You may also be able to claim an exemption if your earned income for the year is extremely low ($1,050 or less). If those conditions apply to you, you can write “exempt” in line 7. Keep in mind that the exemption only eliminates your federal income taxes, not your Medicare or Social Security. If your parents use an accountant to prepare their taxes, I'm sure he/she would be able to give you a solid answer on how to fill it out.",
"title": ""
},
{
"docid": "b6302253c06243087d1f4e543d757815",
"text": "Ultimately, you are the one that is responsible for your tax filings and your payments (It's all linked to your SSN, after all). If this fee/interest is the result of a filing error, and you went through a preparing company which assumes liability for their own errors, then you should speak to them. They will likely correct this and pay the fees. On the other hand, if this is the result of not making quarterly payments, then you are responsible for it. (Source: Comptroller of Maryland Site) If you [...] do not have Maryland income taxes withheld by an employer, you can make quarterly estimated tax payments as part of a pay-as-you-go plan. If your employer does withhold Maryland taxes from your pay, you may still be required to make quarterly estimated income tax payments if you develop a tax liability that exceeds the amount withheld by your employer by more than $500. From this watered-down public-facing resource, it seems like you'll get hit with fees for not making quarterly payments if your tax liability exceeds $500 beyond what is withheld (currently: $0).",
"title": ""
},
{
"docid": "ad545957f5af34e852059d84dd928377",
"text": "\"Finally, I got response from finance center: \"\"It doesn't matter where do you study, what does matter is where you live. So, once you live in Germany, you pay taxes in Germany. And it doesn't matter who you work for.\"\" So, there are two options to pay taxes: it's paid by an employer or an employee: If I would work for Swiss company, I need to show how much money I make every month (or year) to Finance Center.\"",
"title": ""
},
{
"docid": "853b3e27f63962682a49ed6503c3a23d",
"text": "The instructions for Form W-7 include a table of exceptions to the requirement to attach a tax return. It looks like you might fall under Exemption 2a, but I don't think there's quite enough information in your question to be sure. The current instructions are here: https://www.irs.gov/pub/irs-pdf/iw7.pdf The table of exceptions runs from page 7 to page 9, so I won't try to reproduce it here.",
"title": ""
},
{
"docid": "3e6c8e521d82325638cb827663a32ddb",
"text": "So why not talk to your employer, and ask them to pay you in gold dust? Then when tax time comes, just convert some gold dust into the amount of USD in taxes you owe. Of course, you'd have to find farmers and shoemakers and electronic stores willing to accept payment in gold dust as well...",
"title": ""
},
{
"docid": "9d9301aeeb22f02c6b102b172cb2fdfc",
"text": "@gef05 He was making a reference to expatriation and renouncing citizenship. Citizens have to pay taxes wherever they are no matter how long they are there, people that renounce their citizenship have to continue paying income taxes to the US IRS for several years",
"title": ""
},
{
"docid": "390d6a4321ba550ab4081a7c24fe69a9",
"text": "As a resident of New York State you will, in addition to the Federal income tax handled by the IRS, be responsible for state and local income taxes. For New York the state tax forms are also used to determine your New York city tax. If HR was either not aware of the local tax requirement for New York or you filled out the New York State version of the W-4 incorrectly you may have had too little tax withheld for New York state. The refund from the IRS is not dependent on the refund/owe status for state and local taxes. It is possible that your state taxes are fine but that you owe taxes to the city. That tax you owe to the city will reduce the refund from the state and may require you to pay money to New York. Of course if you do itemize, what you pay to the state and city may result in deductions on your federal form. If you owe back taxes to the state or local government this could result in the IRS seizing a federal refund, but that doesn't happen right away.",
"title": ""
},
{
"docid": "69b86f3654b9194f188b80eabf2295ae",
"text": "For purposes of the EIN the address is largely inconsequential. The IRS cannot (read: won't) recover the EIN if you fail to write it down after the website generates it for you. On your actual tax form the address is more consequential, and this is more so a question of consistency than anything. But an entity can purchase property anywhere and have a different address subsequent years. Paying the actual taxes means more than the semantical inconsistencies. The whole purpose of separate accounts is to make an audit easier, so even if someone imagines that some action (such as address ambiguity) automatically triggers an audit, all your earnings/purchases are not intermingled with personal stuff, which just streamlines the audit process. Consequences (or lack thereof) aside, physical means where physical property is. So if you have an actual mailing address in your state, you should go with that. Obviously, this depends on what arrangement you have with your registered agent, if all addresses are in Wyoming then use the Wyoming address and let the Registered Agent forward all your mail to you. Don't forget your $50 annual report in Wyoming ;) How did you open a business paypal without an EIN? Business bank accounts? Hm... this is for liability purposes...",
"title": ""
},
{
"docid": "eb16551aaaa62f19ddaf2a03ef09ae10",
"text": "It is not a question of where you have your driver's license. It is a question of the states' tax related residency rules. (Though a driver's license can be a part of that question.) Since you likely have a residence in NYC and so can prove residency through a lease, bills, etc., you probably have to file as a NYS/NYC resident. I do have to question your maintaining a California driver's license if you are not a resident. If you are attempting to maintain dual-residency, look into both states' residency rules to see if you are liable for taxes in both states. California seems particularly picky about these types of situations, probably due to concerns that you may be trying to circumvent California taxes. That said, it usually revolves around income in the state. Of course, if you maintain residency in California as well, the argument can be made that you owe some taxes due to the fact that you take advantage of state services. (E.g. you drive on California roads.) I suggest you consult a tax professional knowledgeable in these issues to sort out the details.",
"title": ""
},
{
"docid": "20d029ee79bf663c0ef296cbf536a153",
"text": "Whether you're self-employed or not, knowing exactly how much tax you will pay is not always an easy task. Various actions you can take (e.g., charitable donations, IRA contributions, selling stocks) may increase or reduce your tax liability. One tool I've found useful for estimating federal taxes is the Excel 1040 spreadsheet. This is a spreadsheet version of the income tax return form. It is not official and is not created by the IRS, but is maintained as a labor of love by a private individual. In practice, however, it is pretty much an accurate implementation of the tax calculation algorithms encoded in the tax forms and instructions. The nice thing about it is that it's a spreadsheet. You can plug numbers into various slots in the spreadsheet and see how they affect your federal tax liability. (You may also owe state taxes depending on what state you live in.) Of course, the estimates you get by doing this are only (at most) as accurate as your estimates of the various numbers you plug in. Still, I think it's a free and useful way to get a ballpark estimate of your tax liability based on numbers that you can more easily estimate (e.g., how much money you expect to earn).",
"title": ""
},
{
"docid": "d0f975974b6c35ce344502286b431bec",
"text": "I don't think the location of the funds is any of your concern. You're buying a CDI, which is: Australian financial instruments The US has no jurisdiction over you, being you an Australian, so unless you own a US-based asset (i.e.: a real-estate in the US, or a US brokerage account), US tax laws shouldn't matter to you.",
"title": ""
}
] |
fiqa
|
8d50b509e4ef52fa0796aba312e70de3
|
Can I Accept Gold?
|
[
{
"docid": "4c30ad0006a1e499ae485f0a559057c3",
"text": "\"You can accept almost anything mutually agreeable to you and the other party as payment. That's the definition of \"\"barter\"\". If you agree to trade manufactured goods for livestock, as long as both parties agree on the terms, I'm not aware of any law that would prohibit it. I hedged with \"\"almost\"\" because of course you can't accept something that is explicitly illegal. Like you can't say you'll accept cocaine as payment. Less obviously, there are laws regulating the sale of guns, nuclear fuel, agricultural products, etc. You'd still have to pay taxes, and it can get complicated to determine the taxable value of the transaction. Sorry, but you can't avoid taxes by getting your income in something other than cash.\"",
"title": ""
},
{
"docid": "614f21e70ade61361992513495a9cbf2",
"text": "Of course you can accept gold as payment. Would anyone pay in gold? Would it have tax consequences on your federal taxes? These additional questions are off-topic on this site about personal finance.",
"title": ""
},
{
"docid": "27c36d33072f1f3c03abebb2b95e40c9",
"text": "\"Yes. \"\"There is, ...no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services.\"\" Taken from the US Department of the Treasury.\"",
"title": ""
},
{
"docid": "9b58296e546e1efce9613746b1a82bd7",
"text": "Yes. But the question is do you want to have gold? If you are going to buy gold anyway, and if you can get a good conversion rate between USD:gold, then why not? If you are looking to use your earnings on things that you cannot buy using gold, then I'd recommend you take USD instead. Have fun!",
"title": ""
}
] |
[
{
"docid": "1f82eef360c642b80cbd1041bd8dcd02",
"text": "\"Gold is not an investment. Gold is a form of money. It and silver have been used as money much longer than paper. Paper money is a relatively recent invention (less than 350 years old) with a horrible track record of preserving wealth. When I exchange my paper US dollars for gold I'm exchanging one form of money for another. US dollars, or US Federal Reserve Notes to be more precise, can be printed ad nauseam by one bank that is totally private and is never audited. Keeping all of your savings in US dollars is ignoring history, it is believing the US Federal Reserve has your best interest in mind, it is hoping that somehow things will be different this time, it is believing that the US dollar will somehow magically be the first fiat currency to last a person's lifetime. TIPS may seem like a good hedge against inflation. However, the government offering TIPS is also the same government that is calculating the inflation rate used to adjust TIPS. What a great deal. If you do some research you discover that the method for calculating the consumer price index is always \"\"modified\"\" since it is always found to over estimate inflation. It is never found to under estimate inflation. Imagine that. Here is a chart showing the inflation rate as if it were calculated the same way as it was calculated in 1980. Buying any government debt is also a way to guarantee you or your children will be taxed in the future since the government will have to obtain the money from someone to pay back bonds. It's like voting for future taxes.\"",
"title": ""
},
{
"docid": "99ae11da9e2344a919be8ae6153f2302",
"text": "\"The reason I don't want to get into here it is because internet debates over these things turn into an absolute shit-show, instantly. In a nutshell, the (sane parts of) argument comes down to very difficult-to-prove assumptions about how perfectly fiat currency can/will be implemented. - The (sane) case for gold is that it is very difficult to get into the kind of money-printing mischief that places like Zimbabwe and Argentina have got into when your currency is based on something with a finite and slow-growing supply. It's hard to print more gold. - The (sane) case for fiat currency is that it is ridiculous to hamstring the entire economy by tying it to one arbitrary commodity with a fluctuating value and supply that does not correlate well with overall economic output. A perfectly-implemented fiat currency, printed and ordained by a perfectly omniscient, perfectly competent, and perfectly benevolent central bank (let's call it \"\"God money\"\"), is the ideal. That's pretty much axiomatic, and even sane gold-bugs would tend to allow the above, so far as it goes, including all stipulations. In fact, someone inclined to believe in divine intervention might make a case that gold is precisely that: a hard-to-forge, easy-to-detect, easy-to-handle metal placed on earth by God in quantities just right to serve as currency. The problem is that a really *bad* fiat currency is absolutely terrible: leads to nightmare-scenarios; people starving on one side of a fence while tons of crops are being burned on the other side because of runaway price-discrepancies, stuff like that. Again, even (sane) Keynesians will allow as much. The problem is that the crazies, ideologues, and single-issue zealots come out of the woodwork when you start getting into this stuff, and tend to dominate the conversation (if \"\"conversation\"\" is a fair word to use). In a sense, the \"\"sane\"\" spectrum of debate boils down to an almost ideological divide: - Whether you believe that a sort of permanent, technocratic, central-bank/currency-issuer is possible/plausible. Because if it *is* achievable, it is almost certainly better than just tying the whole economy to the price of a single commodity. If it is *not* achievable, then it is almost certainly better to let the markets adjust and correct, however imperfectly, than to tie the whole economy to the whims and wishes of incompetent and politically-motivated money-printers. (I hope that makes sense, and that it is a fair representation of the conundrum). The problem with making an argument is that you've got a hodge-podge of technical (and sometimes fairly complicated) nitty-gritty, plus a certain amount of starting-assumption/worldview/ideological stuff, all smooshed together, and almost all of it is very hard/impossible to \"\"prove\"\" via evidential scientific testing. Both the technical and historical stuff have strong conflicting indicators, and it's obviously not possible to, say, set up two identical societies and let them run for a thousand years, controlling for everything but monetary policy, and see what happens. Macro-economics is a very imperfect science. It has certainly given the world some very useful and valuable insights and axioms, but the testing methods are extremely indirect and heavily subject to interpretation: you really have only the historical record to draw on, and it is almost impossible to find examples that control for whatever variable is in question. Macro, ideally, *tries* really hard to be science, but you're always kind of picking from bad examples when testing a hypothesis, trying to line up vaguely similar historical periods to isolate for some common factor. It's kind of like geology or theoretical physics, except with much smaller and messier data-sets. Ten thousand years from now, it will be much easier to look at the historical data and isolate for particular variables over multiple hundred-year spans across a variety of cultural, political, and socio-economic backgrounds. For now, the peanut-gallery is chock full of questions that the experts cannot answer, and the record is full of exceptions to every rule, and a lot of it frankly boils down to worldview and ideology (with a healthy dollop of \"\"I'm smarter than you\"\" to finish the sauce). Since I personally prefer technical questions to politics, I will leave it to others to formulate and debate those things.\"",
"title": ""
},
{
"docid": "50b52264b9409f57b1b597876e96528a",
"text": "Technically, you could improve your odds in this hypothetical pre-apocolyptic economy by diversifying your digital and tangible precious-metal-commodity portfolio by going in with gold, silver, platinum, palladium, and others. That being said I'm not sure if one can access tangible stores of all these metals...",
"title": ""
},
{
"docid": "34f75daeea825fb48d7bdfcbe8d81d1d",
"text": "I thought the same. Money as a transferable item is against future items, and debt is a transferable item against future money, which is also seen as a much farther into the future item. Money = tomorrows item. Debt = tomorrows money = (tomorrows item)(time +1); or longer if we agree to pay it off over 20 years Interestingly I have seen a writeup on why gold is the material of choice. If someone can find this it would be great but I will try write from memory, Google is not helping. The story is something like this: Essentially when trading a material for jewellery we had difficulty finding what material to use. Obviously it must be something hardy and tough, but not common. Metals are the obvious choice, although crystalline structures like gems and opals are useful. The reason for metals are that they can easily and repeatably be shaped into a form that will be aesthetically pleasing and hold its shape. But which specific metal is to be chosen; obviously it must be chemically stable, so potassium magnesium and those metal like elements are removed from contention. It must be rare so items like lead, iron and copper are too common, although not worthless. The most stable, malleable and rare materials are Platinum, Silver and Gold. Platinum requires too high a melting point to be suitable; the requirements to smelt and handle it as a material are too high. Not to deny the value but the common use it prohibitive. Silver is easier to handle, but tends to tarnish. Continuous upkeep is required and this becomes a detraction of its full value. Finally Gold, rare, low melting point, resistant to tarnishing and oxidation, rare, malleable and pretty. A sweet spot of all materials.",
"title": ""
},
{
"docid": "341db8f4c2c2686e74b451a59f893298",
"text": "Dream on. You are parroting government apologists. The only real complaint against gold is that it forces governments to limit their expenditures to what they can collect in revenue. All the critics of gold are in favor of big government and deficit spending. Gold is money. It is the only real money. And within five years there will be a de facto gold standard in international commerce.",
"title": ""
},
{
"docid": "25a38b50c7fa018f6d9168ae1325fc2f",
"text": "\"Since you are going to be experiencing a liquidity crisis that even owning physical gold wouldn't solve, may I suggest bitcoins? You will still be liquid and people anywhere will be able to trade it. This is different from precious metals, whereas even if you \"\"invested\"\" in gold you would waste considerable resources on storage, security and actually making it divisible for trade. You would be illiquid. Do note that the bitcoin currency is currently more volatile than a Greek government bond.\"",
"title": ""
},
{
"docid": "9c819a504e498ac7204871e2015cb07e",
"text": "You stumbled on your second paragraph when you said gold is debt. It's not. It is an asset you can hold in your hand that has zero counterparty risk. Didn't read the rest because if you fell over so early, it's likely I'd be here all day correcting the rest of it.",
"title": ""
},
{
"docid": "250e59e43c4663a659e26028f92aa583",
"text": "I would track it using a regular asset account. The same way I would track the value of a house, a car, or any other personal asset. ETA: If you want automatic tracking, you could set it up as a stock portfolio holding shares of the GLD ETF. One share of GLD represents 1/10 ounce of gold. So, if you have 5 ounces of gold, you would set that up in Quicken as 50 shares of GLD.",
"title": ""
},
{
"docid": "08cec8c13d6cc51c6f85f6b481c17691",
"text": "Owning physical gold (assuming coins): Owning gold through a fund:",
"title": ""
},
{
"docid": "842264f7e67962cdd9820c15a852e5f3",
"text": "The Federal Reserve website notes that creditors must accept cash for debts on services already rendered, but that businesses may refuse cash for services not yet rendered unless prohibited by local law. The Treasury website includes examples of businesses limiting what cash they will accept: For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy.",
"title": ""
},
{
"docid": "02a356426e29ae90e2620cb53aff3028",
"text": "I still don't fully understand how gold is debt. I get that you made the connection that gold is money, and previously explained how money is debt. But that doesn't make gold debt. Gold is a commodity just as oil, apples, deer, shoes, etc. It might not provide any utility, but is still something people have come to value in and of itself.",
"title": ""
},
{
"docid": "8c507717d9501648c82e19ba942fa209",
"text": "This is an excellent question; kudos for asking it. How much a person pays over spot with gold can be negotiated in person at a coin shop or in an individual transaction, though many shops will refuse to negotiate. You have to be a clever and tough negotiator to make this work and you won't have any success online. However, in researching your question, I dug for some information on one gold ETF OUNZ - which is physically backed by gold that you can redeem. It appears that you only pay the spot price if you redeem your shares for physical gold: But aren't those fees exorbitant? After all, redeeming for 50 ounces of Gold Eagles would result in a $3,000 fee on a $65,000 transaction. That's 4.6 percent! Actually, the fee simply reflects the convenience premium that gold coins command in the market. Here are the exchange fees compared with the premiums over spot charged by two major online gold retailers: Investors do pay an annual expense ratio, but the trade-off is that as an investor, you don't have to worry about a thief breaking in and stealing your gold.",
"title": ""
},
{
"docid": "5474673d5aa76b4f48ff13ccc540e477",
"text": "\"Is option trading permitted in the account? Most 401(k) do not permit this. 1 - it means none traded today. 2 - there are 50 outstanding contracts. Each one has a guy who is long and a guy who is short. 3 - not really, it might depend on the stock. 4 - no. With commissions so low, and the inherent leverage of options, one contract reflecting 100 shares of the underlying stock, the minimum is what you can sleep soundly with. 5 - because GLD does not reflect precisely 1/10 oz of gold's price. If you look at the prospectus, it reads \"\"The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion, less the Trust’s expenses.\"\" Since there are no dividends to take expenses from, the GLD price will erode by .4% each year compared to the price of 1/10oz gold.\"",
"title": ""
},
{
"docid": "584bd446fe497404fff91a9215141feb",
"text": "\"Apartment complexes have had a long history of not accepting cash for payment of rent. This eliminates the problem of robbery and strongly reduces the risks of embezzlement. THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE Article 1, Section 10 of the US Constitution states: No State shall ... make any Thing but gold and silver Coin a Tender in Payment of Debts Previous editions of banknotes stated that the notes were redeemable in gold or in lawful money. The Mint Act of 1792 set gold and silver as legal currency (and that one did not have to accept \"\"base metal coins\"\" for more than $10 which is why coin rolls only go up to $10). The Coinage Act of 1873 dropped silver and made gold the legal standard for currency. In 1933, the \"\"redeemable in gold\"\" was changed by federal statute and the legend you mention was added. Prior to 1933, someone could demand that you pay them in gold and not with a bank note. Legislation in 1933 ended that. This clause in the Constitution leads some political groups to wish to return to a gold standard. I recommend reading the book Greenback as it describes how our currency got the way it did and why that clause appears on currency.\"",
"title": ""
},
{
"docid": "7e23806abc4aac758bb9c06fc926f314",
"text": "begin having them take community college courses while they are still in high school - this should be a better use of time than AP courses. if they continue and get an associates degree the credits should be transferrable anywhere take the associates degree to a state school and have them finish just their two years (4 semesters) at the state school. that should be an non-stressful and affordable approach that will give them a time/age-based advantage over their peers. so instead of playing with financial aid and retirement plan rules, this sort of goal can help you save, without creating inconsequential and unnecessary expectations for yourself or your family",
"title": ""
}
] |
fiqa
|
9355f76291f42b6ea33d789cbd6cbbf0
|
Can a company have a credit rating better than that of the country where it is located?
|
[
{
"docid": "9b9f9d0390fd07319e4f35714bb1d4c3",
"text": "\"BlackJack's answer is technically correct: government credit ratings are independent of corporate credit ratings. The rating should reflect the borrower's ability to repay its obligations. One reason the book you read may have stated that corporate credit ratings cannot be better than the government's credit rating is that the government, unlike the corporation, can steal (or in government parlance \"\"tax\"\") from anywhere or anyone. So if a government finds itself in financial difficulty it could simply take the cash from corporations or people with high credit ratings by a variety of methods: implement windfall profit taxes, take over industries, take peoples gold, tax pension savings, or simply take peoples pensions or retirement savings. This increases the risk of doing business in a country with an over-extended government. Over extended governments do not die gracefully. They only die when there is nothing left to steal.\"",
"title": ""
},
{
"docid": "8723a73705f4f18937f82286dc564b0c",
"text": "\"In one personal finance book I read that if a company is located in a country with credit rating X it can't have credit rating better (lower - i.e. further from AAA level) than X. This is simply wrong. Real world evidence proves it wrong. Automatic Data Processing (ADP), Exxon Mobile (XOM), Johnson & Johnson (JNJ), and Microsoft (MSFT) all have a triple-A rating today, even though the United States doesn't. Toyota (TM) remained triple-A for many years even after Japanese debt was downgraded. The explanation was the following: country has rating X because risk of doing business with it is X and so risk of doing business with any company located in that country automatically can't be better than X. When reading financial literature, you should always be critical. Let's evaluate this statement. First off, a credit rating is not the \"\"risk of doing business.\"\" That is way too generic. Specifically, a credit rating attempts to define an individual or company's ability to repay it's obligations. Buying treasuries constitutes as doing business with the gov't, but you can argue that buying stamps at USPS is also doing business with the gov't, and a credit rating won't affect the latter too much. So a credit rating reflects the ability of an entity to repay it's obligations. What does the ability of a government to repay have to do with the ability of companies in that country to repay? Not much. Certainly, if a company keeps it's surplus cash all in treasuries, then downgrading the government will affect the company, but in general, the credit rating of a company determines the company's ability to pay.\"",
"title": ""
}
] |
[
{
"docid": "20699ddd02b61af4bdf4d3704421330d",
"text": "You borrow on the international makets. [Moody's predicts Scotland would get an 'A' credit rating](http://www.bbc.co.uk/news/uk-scotland-scotland-politics-27247870) [Standard & Poors - Independent Scotland could be AAA rated](http://www.businessforscotland.co.uk/independent-scotland-could-be-aaa-rated-standard-poors) [Credit Suisse report independent Scotland would be ranked four places higher than the rUK.](http://www.newsnetscotland.com/index.php/scottish-news/9637-scotland-ahead-of-ruk-even-without-oil-says-credit-suisse-report) [An independent Scotland would be a wealthy and financially viable country like New Zealand, but could suffer initial growing pains, according to credit ratings agency Standard & Poor's.](http://www.theguardian.com/politics/2014/feb/27/independent-scottish-economy-viable-slow-first-standard-poors)",
"title": ""
},
{
"docid": "953b47450cda011d6803d18a238445f0",
"text": "When you start living in US, it doesn't actually matter what was your Credit history in another country. Your Credit History in US is tied to your SSN (Social Security Number), which will be awarded once you are in the country legally and apply for it. Getting an SSN also doesn't guarantee you nothing and you have to build your credit history slowly. Opening a Checking or Savings account will not help you in building a credit history. You need to have some type of Credit Account (credit card, car loan, mortgage etc.) linked to your SSN to start building your credit history. When you are new to US, you probably won't find any bank that will give you a Credit Card as you have no Credit history. One alternative is to apply for a secured credit card. A secured credit card is one you get by putting money or paying money to a bank and open a Credit Card against that money, thereby the bank can be secure that they won't lose any money. Once you have that, you can use that to build up your credit history slowly and once you have a good credit history and score, apply for regular Credit Card or apply for a car loan, mortgage etc. When I came to US 8 years ago, my Credit History was nothing, even though I had pretty good balance and credit history back in my country. I applied for secured credit card by paying $500 to a bank ( which got acquired by CapitalOne ), got it approved and used it for everything, for three years. I applied for other cards in the mean time but got rejected every time. Finally got approved for a regular credit card after three years and in one year added a mortgage and car loan, which helped me to get a decent score now. And Yes, a good Credit Score is important and essential for renting an apartment, leasing a car, getting a Credit Card etc. but normally your employer can always arrange for an apartment given your situation or you need to share apartment with someone else. You can rent a car without and credit score, but need a valid US / International Drivers license and a Credit Card :-) Best option will be to open a secured credit card and start building your credit. When your wife and family arrives, they also will be assigned individual SSN and can start building their credit history themselves. Please keep in mind that Credit Score and Credit History is always individual here...",
"title": ""
},
{
"docid": "7398abe8544fccf27a34b60e839f28b3",
"text": "You can check whether the company whose stock you want to buy is present on an european market. For instance this is the case for Apple at Frankfurt.",
"title": ""
},
{
"docid": "a3d0faea96982b5a5ffaa1971f1df44c",
"text": "No. The information you are describing is technical data about a stock's market price and trading volume, only. There is nothing implied in that data about a company's financial fundamentals (earnings/profitability, outstanding shares, market capitalization, dividends, balance sheet assets and liabilities, etc.) All you can infer is positive or negative momentum in the trading of the stock. If you want to understand if a company is performing well, then you need fundamental data about the company such as you would get from a company's annual and quarterly reports.",
"title": ""
},
{
"docid": "872d37b659b196edc2b87bc5f87f3ac7",
"text": "It won't hurt your credit rating. I wouldn't worry about it. The company can certainly pursue debt collections across borders but unless its a massive sum.. they will write it off. Now.. what the right thing to do is to take care of it... 1. for karma's sake and 2. so you don't make a bad name for foreigners.",
"title": ""
},
{
"docid": "9a645e71c88b090fb161d6d1f0924ae6",
"text": "\"Rating agencies are pretty garbage, the market is always a few steps ahead of them. However, India is rated lower as it has not been an economic \"\"power\"\" for a long time ans is still developing. However the market rates on bonds tell a different story, and that is that India is safer than Spain to lend to. It is also easier to go after assets in Spain a Eurozone country than India, however Indian debt in Rupees should be safer than Spanish debt in Euros as India can fire up the printer if necessary. Indian yield on the 10 year is ~ 8.5% inflation is 7.5% giving a real yield of 1% Spanish 10 year is 6.87% and Eurozone inflation is 2.4% giving a real yield of 4.47%. The market doesn't agree with S&P.\"",
"title": ""
},
{
"docid": "e5c96d25cabfb16b086f42e029b0ba1a",
"text": "\"Not entirely. For a creditor to go after the \"\"parent company\"\" in one of these cases requires the courts to be willing to \"\"pierce the corporate veil\"\" (in legal parlance). Typically this is only done if the parent company set up the wholly-owned-subsidiary in order to perpetrate a fraud. In this case, the subsidiary has a totally legitimate function - to sequester risk. While you're right that the parent company may have to offer some form of credit guarantees to get the subsidiary to get a loan, often those guarantees still don't create nearly as much exposure for the parent company.\"",
"title": ""
},
{
"docid": "b228fd9c49d849a76e562c6128b35a42",
"text": "The key here is that you are defacto running your own company no matter if you acknowledge it or not. In the end these questions have the goal of deciding if you can and will repay the loan. Presumably you filed taxes on your income. These can be shown to the loan officer as proof you have the ability to repay your loan. Running your freelancing as a business has advantages of being able to deduct normal expenses for running the business from your revenue. I am not sure how business cards improves your credit worthiness as they can be had for $10 in about an hour.",
"title": ""
},
{
"docid": "84f9f90ed7adee81f9e28ff3973c2926",
"text": "Regardless, it doesn't indicate any financial stress or credit-related issues. Just because you are pissed off about the way the financial industry works, doesn't mean the banks are in poor shape. If France and Germany come crashing down, then you may have some evidence to back your point.",
"title": ""
},
{
"docid": "55dc1bbd3528ca485ea549a23d352fa9",
"text": "In the United Kingdom, there is a leading company that has been offering Progressive business funding solutions to the businesses for the last 120 years. Their service areas are South Africa, New Zealand, Ireland, Canada, Australia, USA, etc.",
"title": ""
},
{
"docid": "1f69b9b3b61d001e92118515fb873e53",
"text": "gnasher729's answer is fundamentally correct and deserves the checkmark, but I'd like to give an economic explanation for how this economically functions. The key point from gnasher729's answer's that the interest rate is 49.9% for one company. While this may be much higher than the equilibrium rate, the true market interest rate, it is not completely unreasonable because of the risk. For credit to be continually produced, default risk must be compensated because this is a cost to the lender. Most are not in business to lose money, so making loans to borrowers that default 40% of the time would make this interest rate reasonable. For UK citizens, this would not be such a problem because the lender can usually pursue the borrower for the balance, but if the borrower can disavow the loan and leave the legal reach of the UK creditors, the collection rate is 0%. The guarantee by the foreign persons not present in the UK is incidental and probably more of a regulatory requirement since the inability to collect from them is just as unlikely. One should always look for the lowest price with at least minimum quality when shopping for anything, but you are right to be apprehensive legally. Read every line and be sure that you yourself understand every clause before signing. If alternative cheaper financing is available, it is probably superior.",
"title": ""
},
{
"docid": "cb1a38f02429161760fdfff00d8be026",
"text": "Dunn & Bradstreet offers detailed credit reports on businesses. They are not cheap, but they appear to have information on RIOCAN.",
"title": ""
},
{
"docid": "132e687702aa3c1ab0f5f97c9facfc6f",
"text": "If you are interested in this stuff, S&P produce a sovereign rating methodolgy, in which they will tell you exactly what factors they look at. Once you read this, you can obtain their latest rating report on India and Spain to understand how they applied said methodology in each case. (Not sure if this is free)",
"title": ""
},
{
"docid": "18127088510ed511e14029a376fff64e",
"text": "A) The Credit Rating Agencies only look at the month-end totals that are on your credit card, as this is all they ever get from the issuing bank. So a higher usage frequency as described would not make any direct difference to your credit rating. B) The issuing bank will know if you use the credit with the higher frequency, but it probably has little effect on your limit. Typically, after two to three month, they reevaluate your credit limit, and it could go up considerably if you never overdrew (and at this time, it could indirectly positively affect your credit rating). You could consider calling the issuing bank after two month and try to explain the history a bit and get them to increase the limit, but that only makes sense if your credit score has recovered. Your business paperwork could go a long way to convince someone, if you do so well now. C) If your credit rating is still bad, you need to find out why. It should have normalized to a medium range with the bad historic issues dropped.",
"title": ""
},
{
"docid": "3ade3fe075a328cb9ac02c1c950bfead",
"text": "Credit scores in the U.S. are entirely based on information contained in your credit report. The details of your credit card transactions, such as where your individual purchases are from, the amount of individual purchases, refunds, chargebacks (successful or failed), etc. do not appear on your credit report. Therefore, they can have no impact on your credit score. According to creditsavvy.com.au, credit scores in Australia are based on similar information: the information in your credit history, credit profile, and credit applications. I don't see anything that would suggest that the details of your transactions would affect your credit score.",
"title": ""
}
] |
fiqa
|
ecabe007156ccad52845f89a95754376
|
Do I owe taxes in the US for my LLC formed in the US but owned by an Indian citizen?
|
[
{
"docid": "d402dc885d5d6ef6afda8b49de969880",
"text": "You're doing business in the US and derive income from the US, so I'd say that yes, you should file a non-resident tax return in the US. And in Connecticut, as well, since that's where you're conducting business (via your domestic LLC registered there). Since you paid more than $600 to your contractor, you're probably also supposed to send a 1099 to him on that account on behalf of your LLC (which is you, essentially, if you're the only member).",
"title": ""
},
{
"docid": "9ef174b33606cc48292303fe2a920126",
"text": "This is a complicated question that relies on the US-India Tax Treaty to determine whether the income is taxable to the US or to India. The relevant provision is likely Article 15 on Personal Services. http://www.irs.gov/pub/irs-trty/india.pdf It seems plausible that your business is personal services, but that's a fact-driven question based on your business model. If the online training is 'personal services' provided by you from India, then it is likely foreign source income under the treaty. The 'fixed base' and '90 days' provisions in Article 15 would not apply to an India resident working solely outside the US. The question is whether your US LLC was a US taxpayer. If the LLC was a taxpayer, then it has an obligation to pay US tax on any worldwide income and it also arguably disqualifies you from Article 15 (which applies to individuals and firms of individuals, but not companies). If you were the sole owner of the US LLC, and you did not make a Form 8832 election to be treated as subject to entity taxation, then the LLC was a disregarded entity. If you had other owners, and did not make an election, then you are a partnership and I suspect but cannot conclude that the treaty analysis is still valid. So this is fact-dependent, but you may be exempt from US tax under the tax treaty. However, you may have still had an obligation to file Forms 1099 for your worker. You can also late-file Forms 1099 reporting the nonemployee compensation paid to your worker. Note that this may have tax consequences on the worker if the worker failed to report the income in those years.",
"title": ""
}
] |
[
{
"docid": "cd457dc2775f548272da666b546bbfaf",
"text": "Unless you started a bank or other kind of a financial institution (brokerage, merchant processor, etc etc), the page you linked to is irrelevant. That said, there's enough in the US tax code for you to reconsider your decision of not living in the US, or at least of being a shareholder of a foreign company. Your compliance costs are going to go through the roof. If you haven't broken any US tax laws yet (which is very unlikely), you may renounce your citizenship and save yourself a lot of money and trouble. But in the more likely case of you already being a criminal with regards the US tax law, you should probably get a proper tax advice from a US-licensed CPA/EA who's also proficient in the Japanese-American tax treaty and expats' compliance issues resolution.",
"title": ""
},
{
"docid": "d5a7e6714172567de547d1bb7a74903d",
"text": "\"What is the right way to handle this? Did you check the forms? Did the form state $0 tax due on the FTB LLC/Corp form (I'm guessing you operate as LLC/Corp, since you're dealing with the Franchise Tax)? The responsibility is ultimately yours. You should cross check all the numbers and verify that they're correct. That said, if the CPA filled the forms incorrectly based on your correct data - then she made a mistake and can be held liable. CPA filing forms from a jurisdiction on the other end of the country without proper research and knowledge may be held negligent if she made a grave mistake. You can file a law suit against the CPA (which will probably trigger her E&O insurance carrier who'll try to settle if there's a good chance for your lawsuit to not be thrown away outright), or complain to the State regulatory agency overseeing CPAs in the State of her license. Or both. Am I wrong for expecting the CPA should have properly filled out and filed my taxes? No, but it doesn't shift the responsibility from you. How can I find out if the CPA has missed anything else? Same as with doctors and lawyers - get a second opinion. Preferably from a CPA licensed in California. You and only you are responsible for your taxes. You may try to pin the penalties and interest on the CPA if she really made a mistake. California is notorious for very high LLC/Corp franchise tax (cost of registering to do business in the State). It's $800 a year. You should have read the forms and the instructions carefully, it is very prominent. It is also very well discussed all over the Internet, any search engine would pop it up for you with a simple \"\"California Franchise Tax for LLC/Corp\"\" search. CA FTB is also very aggressive in assessing and collecting the fee, and the rules of establishing nexus in CA are very broad. From your description it sounds like you were liable for the Franchise tax in CA, since you had a storage facility in CA. You may also be liable for sales taxes for that period.\"",
"title": ""
},
{
"docid": "806e9a3ed65f7aa9a2cea31e6a32d23f",
"text": "\"I don't know what you mean by \"\"claim for taxes,\"\" I think you mean pay taxes. I'm not sure how corps function in Canada but in the US single owner limited liability entities typically pass the net income through to the owner to be included in their personal tax return. So it seems all of this is more or less moot, because really you should probably already be including your income sourced from this project on your personal taxes and that's not really likely to change if you formed something more formal. The formal business arrangements really exist to limit the liability of the business spilling over in to the owner's assets. Or trouble in the owner's life spilling over to interrupt the business operation. I don't know what kind of business this is, but it may make sense to set up one of the limited liability arrangements to ensure that business liability doesn't automatically mean personal liability. A sole proprietorship or in the US we have DBA (doing business as) paperwork will get you a separate tax id number, which may be beneficial if you ever have to provide a tax ID and don't want to use your individual ID; but this won't limit your liability the way incorporating does.\"",
"title": ""
},
{
"docid": "20c142df943348a0135a62c9553986d0",
"text": "\"I don't see why you would need an \"\"international tax specialist\"\". You need a tax specialist to give you a consultation and training on your situation, but it doesn't seem too complicated to me. You invoice your client and get paid - you're a 1099 contractor. They should issue you a 1099 at the end of the year on everything they paid you. Once you become full-time employee - you become a W2 employee and will get a W2 at the end of the year on the amounts paid as such. From your perspective there's nothing international here, regular business. You have to pay your own taxes on the 1099 income (including SE taxes), they have to withhold taxes from your W2 income (including FICA). Since they're foreign employers, they might not do that latter part, and you'll have to deal with that on your tax return, any decent EA/CPA will be able to accommodate you with that. For the employer there's an issue of international taxation. They might have to register as a foreign business in your state, they might be liable for some payroll taxes and State taxes, etc etc. They might not be aware of all that. They might also be liable (or exempt) for Federal taxes, depending on the treaty provisions. But that's their problem. Your only concern is whether they're going to issue you a proper W2 and do all the withholdings or not when the time comes.\"",
"title": ""
},
{
"docid": "e45082ebd31646e9466456f04258ad79",
"text": "\"Please declare everything you earn in India as well as the total amount of assets (it's called FBAR). The penalties for not declaring is jail time no matter how small the amount (and lots of ordinary people every 2-3 years are regularly sent to jail for not declaring such income). It's taken very seriously by the IRS - and any Indian bank who has an office in the US or does business here, can be asked by IRS to provide any bank account details for you. You will get deductions for taxes already paid to a foreign country due to double taxation, so there won't be any additional taxes because income taxes in US are on par or even lower than that in India. Using tricks (like transferring ownership to your brother) may not be worth it. Note: you pay taxes only when you realize gains anyway - both in India or here, so why do you want to take such hassles. If you transfer to your brother, it will be taxed only until you hold them. Make sure you have exact dates of gains between the date you came to US and the date you \"\"gifted\"\" to your brother. As long as you clearly document that the stocks transferred to your brother was a gift and you have no more claims on them, it should be ok, but best to consult a CPA in the US. If you have claims on them, example agreement that you will repurchase them, then you will still continue to pay taxes. If you sell your real estate investments in India, you have to pay tax on the gains in the US (and you need proof of the original buying cost and your sale). If you have paid taxes on the real estate gains in India, then you can get deduction due to double tax avoidance treaty. No issues in bringing over the capital from India to US.\"",
"title": ""
},
{
"docid": "4c209b6413218de97335fc1c5d4d5f1b",
"text": "\"My tax preparing agent is suggesting that since the stock brokers in India does not have any US state ITINS, it becomes complicated to file that income along with US taxes Why? Nothing to do with each other. You need to have ITIN (or, SSN more likely, since you're on H1b). What brokers have have nothing to do with you. You must report these gains on your US tax return, and beware of the PFIC rules when you do it. He says, I can file those taxes separately in India. You file Indian tax return in India, but it has nothing to do with the US. You'll have to deal with the tax treaty/foreign tax credits to co-ordinate. How complicated is it to include Indian capital gains along with US taxes? \"\"How complicated\"\" is really irrelevant. But in any case - there's no difference between Indian capital gains and American capital gains, unless PFIC/Trusts/Mutual funds are involved. Then it becomes complicated, but being complicated is not enough to not report it. If PIFC/Trusts/Mutual funds aren't involved, you just report this on Schedule D as usual. Did anybody face similar situation More or less every American living abroad. Also the financial years are different in India and US Irrelevant.\"",
"title": ""
},
{
"docid": "1f2ff5ed3f7d9d6c17bd7c358111fd09",
"text": "The amount of the income taxes you will owe depends upon how much income you have, after valid business expenses, also it will depend upon your filing status as well as the ownership form of your business and what state you live in. That said, you will need to be sure to make the Federal 1040ES quarterly prepayments of your tax on time or there will be penalties. You also must remember that you will be needing to file a schedule SE with your 1040. That is for the social security taxes you owe, which is in addition to your income taxes. With an employer/employee situation, the FICA withhoding you have seen on your paycheck are matched by the same payment by your employer. Now that you are self-employed you are responcible for your share and the employer share as well; in this situation it is known as self-employment tax. the amount of it will be the same as your share of FICA and half of the employer's share of FICA taxes. If you are married and your wife also is working self-employed, then she will have to files herown schedule SE along with yours. meaning that you will pay based on your business income and she will pay baed on hers. your 1040Es quarterly prepayment must cover your income tax and your combined (yours and hers) Self Employment taxes. Many people will debate on the final results of the results of schedule SE vrs an employee's and an employer's payments combined. If one were to provides a ball park percentage that would likely apply to you final total addition to your tax libility as a result of needing schedule SE would tend to fluctuate depending upon your total tax situation; many would debate it. It has been this way since, I first studied and use this schedule decades ago. For this reason it is best for you to review these PDF documents, Form 1040 Schedule SE Instructions and Form 1040 Schedule SE. As for your state income taxes, it will depend on the laws of the state you are based in.",
"title": ""
},
{
"docid": "5bf683f73eaca9db5871c953efed4ff7",
"text": "\"This is an answer grounded in reality, not advice. Most states have no means of enforcing their foreign business entity registration statutes. Some states never even codified consequences. (California is a notable exception.). Some states have 'business licenses' that you need in order to defend your entity in court, but will retroactively apply the corporate veil when you get the license. The \"\"do I have to register\"\" question is analogous to asking a barber if you need a haircut. But this doesn't absolve you of looking in the mirror (doing your research). Registration and INCOME taxes are different stories. If a state calls their fee a franchise tax and it is applicable and there are real consequences for not, then you will have to pay that tax. Anyway, this isn't advocating breaking the law, but since it describes ignoring toothless state-chartered agencies, then there are people that will disagree with this post, despite being in line with business climate in the United States. Hope that helps\"",
"title": ""
},
{
"docid": "285656fee715b39a89d1eaadd137f3b2",
"text": "The LLC (not you) is probably in debt to the California FTB. Any LLC registered in California must pay at least $800 a year, until it is officially dissolved (i.e.: notice of cancellation/dissolution properly filed with the California Secretary of State). The FTB may come after members (including you) personally, if it can prove that the failure to pay was due to your negligence. Talk to a CA-licensed EA/CPA about how to resolve this. Otherwise, at least from what you've described, there were no other taxable events. LLC is a disregarded entity, so the IRS doesn't care about it much anyway (unless someone was stupid enough to elect it to be taxed as a corporation, that is). Keep in mind that when in doubt - you are always better off with a professional (a CPA/EA licensed in your State) advice.",
"title": ""
},
{
"docid": "17e126114c46110deff1db290cfa3225",
"text": "If you have income in the US, you will owe US income tax on it, unless there is a treaty with your country that says otherwise.",
"title": ""
},
{
"docid": "525af4c7a0373197b4a72adee488f3df",
"text": "The US will let you keep as much money as you want to within its borders regardless of your citizenship. You'll owe capital gains tax in the US unless you're subject to a tax treaty (which you would probably make as an election in the year of the transaction). I don't know if India has any rules about how it governs its citizens' foreign assets, but the US requires citizens to file a form annually declaring foreign accounts over $10,000. You may be subject to additional Indian taxes if India taxes global income like the US does.",
"title": ""
},
{
"docid": "18d8988a421db7d06a74d7eb76b12ac8",
"text": "From India Tax point of view: Some one else may give the US tax treatment. Refer to this similar question what taxes I need to pay in India Capital Gains. My accountant never asked or reported the bought property in taxes- should he reported in taxes?Did he do wrong not reporting should I report the property in my next year taxes? If you mean in IT Returns, yes it should be declared. Can i bring the money back if needed? By Back if you mean repatriate to US, The capital portion would be Ease if the loan property was purchased or loan repaid from NRE. Else there is limit on the amount and paperwork. Consult a CA. If I rent the property instead of selling, do I have to report the income and what income? should I be filling taxes on the rental income in India or just in USA or both You are taxable for the rent and have to report it as income and pay taxes in India.",
"title": ""
},
{
"docid": "c782222dfe2c96e5dac45139b89e6805",
"text": "First of all depending on the type of IRA you may not have to pay taxes on withdrawals in the US at all. If you are withdrawing your principle from a Roth IRA then you don't owe taxes. Only when you withdraw the gains do you pay taxes on it. You have two options for withdrawals: Lump Sum Withdrawal: If you take a lump sum withdrawal you will owe taxes to the US (30% for non-resident aliens of the US), and according to DTAA; Article 23, you will file your taxes with India declaring your IRA or 401(k) withdrawal proceeds and claim credit on the taxes you paid to the US. Monthly Pension Withdrawal: You can also receive monthly pension payments and you will only be taxed in the country in which you are a resident of. This is according to DTAA, Article 20. You would then have to submit necessary documentation to your payer in the US so that they do not withhold any taxes in the US. Just as a side note it might be just better to keep the money where it is and let it grow or roll it over to a Roth IRA if you are currently in a lower tax bracket for maximum savings of your principle. Here is a link with more detailed information of what I provided you: http://articles.economictimes.indiatimes.com/2012-01-25/news/30663129_1_taxable-income-nri-401k-plan",
"title": ""
},
{
"docid": "f7613eabc169fad3fafc9d947392f98d",
"text": "The IRS' primary reference Pub 519 Tax Guide for Aliens -- current year online (current and previous years downloadable in PDF from the Forms&Pubs section of the website) says NO: Students and business apprentices from India. A special rule applies .... You can claim the standard deduction .... Use Worksheet 5-1 to figure your standard deduction. If you are married and your spouse files a return and itemizes deductions, you cannot take the standard deduction. Note the last sentence, which is clearly an exception to the 'India rule', which is already an exception to the general rule that nonresident filers never get the standard deduction. Of course this is the IRS' interpretation of the law (which is defined to include ratified treaties); if you think they are wrong, you could claim the deduction anyway and when they assess the additional tax (and demand payment) take it to US Tax Court -- but I suspect the legal fees will cost you more than the marginal tax on $6300, even under Tax Court's simplified procedures for small cases.",
"title": ""
},
{
"docid": "3bb072e755ce59b9c53a54cf0cfeffd8",
"text": "\"Transferring the money or keeping it in US does has no effect on taxes. Your residency status has. Assuming you are Resident Alien in US for tax purpose and have paid the taxes to IRS and you are \"\"Non-Resident\"\" Indian for tax purposes in India as you are more than 182 outside India. How would it effect my Tax in US and India If you are \"\"Non-Resident\"\" in India for tax purposes, there is no tax liability of this in India. I have transferred an amount of approx 15-20k$ to Indian Account (not NRE) By RBI regulation, if you are \"\"Non-Resident\"\" then you should get your savings account converted to \"\"NRO\"\". You may not may not choose to open an NRE account. To keep the paper work clear it helps that you open an NRE account in India. Any investment needed ? Where do i need to declare if any ? These are not relevant. Note any income generated in India, i.e. interest in Savings account / FDs / Rent etc; taxes need to be paid in India and declared in US and taxes paid in US as well. There is some relief under DTAA. There are quite a few question on this site that will help you clarify what needs to be done.\"",
"title": ""
}
] |
fiqa
|
2eaddf9ea536fe64fe7ba96de3ccdec4
|
How would IRS treat reimbursement in a later year of moving expenses?
|
[
{
"docid": "3a00d5959b32ca0bc12b319ae14ed2da",
"text": "IRS pub 521 has all the information you need. Expenses reimbursed. If you are reimbursed for your expenses and you use the cash method of accounting, you can deduct your expenses either in the year you paid them or in the year you received the reimbursement. If you use the cash method of accounting, you can choose to deduct the expenses in the year you are reimbursed even though you paid the expenses in a different year. See Choosing when to deduct, next. If you deduct your expenses and you receive the reimbursement in a later year, you must include the reimbursement in your income on Form 1040, line 21 This is not unusual. Anybody who moves near the end of the year can have this problem. The 39 week time test also can be an issue that span over 2 tax years. I would take the deduction for the expenses as soon a I could, and then count the income in the later year if they pay me back. IF they do so before April 15th, then I would put them on the same tax form to make things easier.",
"title": ""
},
{
"docid": "bae6e8d76b98b2ba96a5520be36c2c8f",
"text": "I believe moving reimbursement has to be counted as income no matter when you get it. I'd just put it under miscellaneous income with an explanation.",
"title": ""
}
] |
[
{
"docid": "edb005ea7461d6a53124407aca06bab5",
"text": "After reading OP Mark's question and the various answers carefully and also looking over some old pay stubs of mine, I am beginning to wonder if he is mis-reading his pay stub or slip of paper attached to the reimbursement check for the item(s) he purchases. Pay stubs (whether paper documents attached to checks or things received in one's company mailbox or available for downloading from a company web site while the money is deposited electronically into the employee's checking account) vary from company to company, but a reasonably well-designed stub would likely have categories such as Taxable gross income for the pay period: This is the amount from which payroll taxes (Federal and State income tax, Social Security and Medicare tax) are deducted as well as other post-tax deductions such as money going to purchase of US Savings Bonds, contributions to United Way via payroll deduction, contribution to Roth 401k etc. Employer-paid group life insurance premiums are taxable income too for any portion of the policy that exceeds $50K. In some cases, these appear as a lump sum on the last pay stub for the year. Nontaxable gross income for the pay period: This would be sum total of the amounts contributed to nonRoth 401k plans, employee's share of group health-care insurance premiums for employee and/or employee's family, money deposited into FSA accounts, etc. Net pay: This is the amount of the attached check or money sent via ACH to the employee's bank account. Year-to-date amounts: These just tell the employee what has been earned/paid/withheld to date in the various categories. Now, OP Mark said My company does not tax the reimbursement but they do add it to my running gross earnings total for the year. So, the question is whether the amount of the reimbursement is included in the Year-to-date amount of Taxable Income. If YTD Taxable Income does not include the reimbursement amount, then the the OP's question and the answers and comments are moot; unless the company has really-messed-up (Pat. Pending) payroll software that does weird things, the amount on the W2 form will be whatever is shown as YTD Taxable Income on the last pay stub of the year, and, as @DJClayworth noted cogently, it is what will appear on the W2 form that really matters. In summary, it is good that OP Mark is taking the time to investigate the matter of the reimbursements appearing in Total Gross Income, but if the amounts are not appearing in the YTD Taxable Income, his Payroll Office may just reassure him that they have good software and that what the YTD Taxable Income says on the last pay stub is what will be appearing on his W2 form. I am fairly confident that this is what will be the resolution of the matter because if the amount of the reimbursement was included in Taxable Income during that pay period and no tax was withheld, then the employer has a problem with Social Security and Medicare tax underwithholding, and nonpayment of this tax plus the employer's share to the US Treasury in timely fashion. The IRS takes an extremely dim view of such shenanigans and most employers are unlikely to take the risk.",
"title": ""
},
{
"docid": "27be59dd2f4445169ef9d91862353b69",
"text": "It would be unusual but it is possible that the expenses could be very high compared to your income. The IRS in pub 529 explains the deduction. You can deduct only unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. An expense is ordinary if it is common and accepted in your trade, business, or profession. An expense is necessary if it is appropriate and helpful to your business. An expense doesn't have to be required to be considered necessary. The next part lists examples. I have cut the list down to highlight ones that could be large. You may be able to deduct the following items as unreimbursed employee expenses. Damages paid to a former employer for breach of an employment contract. Job search expenses in your present occupation. Legal fees related to your job. Licenses and regulatory fees. Malpractice insurance premiums. Research expenses of a college professor. Rural mail carriers' vehicle expenses. Tools and supplies used in your work. Work clothes and uniforms if required and not suitable for everyday use. Work-related education. If the term of employment was only part of the year, one or more of the these could dwarf your income for the year. Before deducting something that large be sure you can document it. I believe the IRS computers would flag the return and I wouldn't be surprised if they ask for additional proof.",
"title": ""
},
{
"docid": "54d9bf5d51bfb4434224944a5f19d757",
"text": "4 months working from your kitchen doesn't sound like an isolated or incidental transaction. So I think that yes, that income would be taxable by NYS (and NYC/Yonkers if the kitchen is in these cities).",
"title": ""
},
{
"docid": "e5d3f0e0a1b880afa3dcb267594e6ea3",
"text": "Assuming the US, if a human assessor audited you, could you show a future profit motive or will they conclude you are expensing a hobby? If you answer yes, you are likely to only be deducting limited expenses this year, carrying forward losses to your profitable years. See the examples in pub 535: http://www.irs.gov/publications/p535/ch01.html#en_US_2014_publink1000208633",
"title": ""
},
{
"docid": "a7e3d7a58663bf7892905e74ddb6346a",
"text": "\"I'm mostly guessing based on existing documentation, and have no direct experience, so take this with a pinch of salt. My best understanding is that you need to file Form 843. The instructions for the form say that it can be used to request: A refund or abatement of a penalty or addition to tax due to reasonable cause or other reason (other than erroneous written advice provided by the IRS) allowed under the law. The \"\"reasonable cause\"\" here is a good-faith confusion about what Line 79 of the form was referring to. In Form 843, the IRC Section Code you should enter is 6654 (estimated tax). For more, see the IRC Section 6654 (note, however, that if you already received a CP14 notice from the IRS, you should cross-check that this section code is listed on the notice under the part that covers the estimated tax penalty). If your request is accepted, the IRS should issue you Notice 746, item 17 Penalty Removed: You can get more general information about the tax collection process, and how to challenge it, from the pages linked from Understanding your CP14 Notice\"",
"title": ""
},
{
"docid": "39ac168cb11ea51d8e30d4aa282269e0",
"text": "Well you've got to think about the process, but first make sure the thing you want to pay for is actually a qualified dependent care expense. Here is a list of eligible expenses from a national FSA administrator. This process will tie up your money for some amount of time. Your deduction will come out like clockwork. But there is a time-delay of potentially months between your deduction and receipt of a reimbursement. Dependent care plans are money-in money-out. You can only file a reimbursement on funds that have actually been contributed, which is different than a medical FSA. Additionally, you can only file a claim on expenses that have actually been incurred. Dependent care FSA elections can be changed through the year on an as needed basis. This would add an administrivia burden to the person running your payroll, and if there is a payroll vendor in place, likely an actual cost. The administrator in this situation would likely be the company. In the formalities of employee benefits there must always be a named administrator. If your employer currently offers no benefits you should press healthcare first. Paying healthcare premiums pretax would likely save you more money and be less administration than this. Additionally, if your employer is paying for or reimbursing you for your individual health insurance that's currently illegal under the ACA.",
"title": ""
},
{
"docid": "390d6a4321ba550ab4081a7c24fe69a9",
"text": "As a resident of New York State you will, in addition to the Federal income tax handled by the IRS, be responsible for state and local income taxes. For New York the state tax forms are also used to determine your New York city tax. If HR was either not aware of the local tax requirement for New York or you filled out the New York State version of the W-4 incorrectly you may have had too little tax withheld for New York state. The refund from the IRS is not dependent on the refund/owe status for state and local taxes. It is possible that your state taxes are fine but that you owe taxes to the city. That tax you owe to the city will reduce the refund from the state and may require you to pay money to New York. Of course if you do itemize, what you pay to the state and city may result in deductions on your federal form. If you owe back taxes to the state or local government this could result in the IRS seizing a federal refund, but that doesn't happen right away.",
"title": ""
},
{
"docid": "d749496b9ff44a719a74325995016634",
"text": "If the employer provides housing to the employee, the employer has to identify whether it is taxable or not. If it is - the amounts would be added to the taxable income on your W2. All the withholding and FICA tax calculations will be performed based on that taxable income. If the employer fails to do that, and you get audited, you can be left on the hook for the unpaid taxes on the unreported income. In some cases, employee housing is a non-taxable fringe benefit, in others it is taxable. Your tax adviser will help identify which case applies to you. After you added in a comment that you're trying to see if you should be asking your boss to pay your personal expenses vs. giving you a raise - as I said in the comments, your personal expenses are not deductible neither for you nor for anyone else. If your boss pays your rent instead of a raise - its taxable income for you.",
"title": ""
},
{
"docid": "3db51ddabf9b2150a0a0e9952e75348c",
"text": "Generally for tax questions you should talk to a tax adviser. Don't consider anything I write here as a tax advice, and the answer was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. Does IRS like one payment method over other or they simply don't care as long as she can show the receipts? They don't care as long as she withholds the taxes (30%, unless specific arrangements are made for otherwise). She should withhold 30% of the payment and send it to the IRS. The recipient should claim refund, if the actual tax liability is lower. It's only consulting work at the moment, so most of the communication is done over phone. Should they start engaging in written communication to keep records of the work done? Yes, if she wants it to be a business expense. Is it okay to pay in one go to save money-transferring fees? Can she pay in advance? Again, she can do whatever she wants, but if she wants to account for it on her tax returns she should do it the same way she would pay any other vendor in her business. She cannot use different accounting methods for different vendors. Basically, she has not outsourced work in previous years, and she wants to avoid any red flags. Then she should start by calling on her tax adviser, and not an anonymous Internet forum.",
"title": ""
},
{
"docid": "bd6eecc9738b213f4a0e3ccc7411900f",
"text": "You have two different operations going on: They each have of a set of rules regarding amounts, timelines, taxes, and penalties. The excess money can't be recharacterized except during a specific window of time. I would see a tax professional to work through all the details.",
"title": ""
},
{
"docid": "e7e811dc686db34ea83ccc6787d733ca",
"text": "\"The short answer is that the IRS knows this is an issue, so they are prepared to deal with the \"\"discrepancies.\"\" The filer does not need to something special to call it to their attention. Keep good records and consistently report according to your accounting processes. Exactly how the IRS resolves / flags this, I don't know. Maybe someone else can answer, but you can imagine that if they track you for multiple years they should have some idea of how many dollars are rolling over and whether you might have \"\"forgotten\"\" to report something from a few years ago that happened at a year-end break.\"",
"title": ""
},
{
"docid": "fa5825450af7fba4836e5b9e31aa2c81",
"text": "You pay it this tax year. Whether that's now due to W-2 withholding, or later with your 1040 next year, or with your 1040-ES all depends on your particular situation.",
"title": ""
},
{
"docid": "8513ca6e72c64c75066de5109e156db0",
"text": "(I am making the assumption that this is a US based question). Keep in mind that the alternative is to amend your tax forms from 2010, and 2011. The IRS and the State will want their money, they might not to wait for 78 paychecks. That is 3 years. Ask for lots of documentation, so you understand what they are doing.",
"title": ""
},
{
"docid": "b80a4da09befcb5e2df91a2c39fd52a4",
"text": "\"You report it when the expense was incurred/accrued. Which is, in your case, 2014. There's no such thing as \"\"accounts payable\"\" on tax forms, it is an account on balance sheet, but most likely it is irrelevant for you since your LLC is probably cash-based. The reimbursement is a red-herring, what matters is when you paid the money.\"",
"title": ""
},
{
"docid": "9884bff3588d88726e2c43c5706cb6a3",
"text": "With a $40,000 payment there is a 100% chance that the owner will be claiming this as a business expense on their taxes. The IRS and the state will definitely know about it, and the risk of interest and penalties if it is not claimed as income make the best course of action to see a tax adviser. Because taxes will not be taken out by the property owner, the tax payer should also make sure that the estimated $10,000 in federal taxes, if they are in the 25% tax bracket, doesn't trigger other tax issues that could result in penalties, or the need to file quarterly taxes next year. This kind of extra income could also result in a change or an elimination of a health care subsidy. A unexpected mid-year change could trigger the need to refund the subsidy received this year via the tax form next April.",
"title": ""
}
] |
fiqa
|
10192323bb083653775221e7b3ab8998
|
Transfer $70k from Wells Fargo (US) to my other account at a Credit Union bank
|
[
{
"docid": "1d19dbe9c2096debb484bfaa01ff107a",
"text": "The LLC is paying you. It would only be fraudulent if you were trying to move the money out of the LLC to avoid a liability. I'm pretty sure the transaction will be taxable income for you personally. Consider consulting with a CPA to ensure that you're doing the proper record keeping and to get advice on the best way to minimize tax burden while achieving your goals.",
"title": ""
},
{
"docid": "6ef75666739cf6561ccfe0c9579f9562",
"text": "Yes, you can do this. I do this for my own single-member LLC, but I usually do it online instead of writing a check. Your only legal obligation is to pay quarterly estimated tax payments to the IRS. I'm assuming you are not otherwise doing anything shady. For example, that you have funds in your business account to pay any expenses that will be due soon or that you are trying to somehow pull a fast one on someone else...",
"title": ""
},
{
"docid": "1969206b2133cfe3e0d1ff515eb4a770",
"text": "Making a payment of any amount is usually legal, although of course the specific circumstances matter, and I'm not qualified to give legal advice. Just had to throw in that disclaimer not because I think there's a problem here, but because it is impossible to give a definite answer to a legal question in a specific situation on Stack Exchange. But the government will be involved. There are two parts to that. First, as part of anti-money-laundering laws, banks have to report all transactions above a certain limit; I believe $10k. When you use a check or similar to pay, that happens pretty much automatically. When making a cash payment, you may have to fill out some forms. An secondly, Edward Snowden revealed that the government also tapped into banking networks, so pretty much every transaction is recorded, even if it is not reportable.",
"title": ""
}
] |
[
{
"docid": "51f2a7760c1e292fd6f78d83180f6276",
"text": "The simplest method is just to write a check from one account and deposit it in the other. If you are the owner of both accounts, you should be able to electronically deposit the check using their phone apps. Depending on the amount you are transfering, it may take a few days for the check to clear.",
"title": ""
},
{
"docid": "ee3540e8ee76bd278c7cfe2b600cbeac",
"text": "Other than the options pointed out by MoneyOne, I would like to add one more. If the bank that you want to transfer money from has bill pay facility, then you can send yourself a check for the required amount. Then you could deposit this check in the bank where you want to money transferred. I do agree that this is a long way method of transferring money between banks, but this is the only way to do it if your (From) bank doesn't allow bank to bank transfers for your (To) bank or charges you money for each transfer. Normally, most banks give you access to bill pay facility free of charge if you use online banking. I also believe that you could even use it with a savings account, but don't quote me on that. Also, I do know that Bank Of America has started accepting checks through their ATMs, so if your (To) bank does something similar, you would not even need to go to a physical branch.",
"title": ""
},
{
"docid": "384e8f4f9cfd57bcd1d185a8fbc1a6dc",
"text": "Wire transfers normally run through either the Fedwire system or the Clearing House Interbank Payments System (CHIPS). The process generally works like this: You approach a bank or other financial institution and ask to transfer money. You give the bank a certain code, either an international bank account number or one of several other standards, which informs the bank where to send the money. The bank sends a message through a system like Fedwire to the receiving bank, along with settlement instructions. This is where the process can get a bit tricky. For the wire transfer to work, the banks must have reciprocal accounts with each other, or the sending bank must send the money to a bank that does have such an account with the receiver. If the sending bank sends the money to a third-party bank, the transaction is settled between them, and the money is then sent to the receiving bank from the third-party bank. This last transaction may be a wire transfer, ACH transfer, etc. The Federal Reserve fits into this because many banks hold accounts for this purpose with the Federal Reserve. This allows them to use the Fed as the third-party bank referred to above. Interestingly enough, this is one of the significant ways in which the Fed makes a profit, because it, along with every other bank and routing agent in the process, collects a miniscule fee on this process. You'll often find sources that state that Fedwire is only for transferring large transactions; while this is technically correct, it's important to understand that financial institutions don't settle every wire transfer or payment immediately. Although the orders are put in immediately, the financial institutions settle their transactions in bulk at the end of the business day, and even then they normally only settle the difference. So, if Chase owes Bank of America $1M, and Bank of America owes Chase $750K, they don't send these as two transactions; Chase simply credits BAC $250K. You didn't specifically ask about ACH transfers, which as littleadv pointed out, are different from wire transfers, but since ACH transfers can often form a part of the whole process, I'll explain that process too. ACH is a payment processing system that works through the Federal Reserve system, among others. The Federal Reserve (through the Fedline and FedACH systems) is by far the largest payment processor. The physical cash itself isn't transferred; in simple terms, the money is transferred through the ACH system between the accounts each bank maintains at the Federal Reserve. Here is a simple example of how the process works (I'm summarizing the example from Wikipedia). Let's say that Bob has an account with Chase and wants to get his paycheck from his employer, Stack Exchange, directly deposited into this account. Assume that Stack Exchange uses Bank of America as their bank. Bob, the receiver, fills out a direct deposit authorization form and gives it to his employer, called the originator. Once the originator has the authorization, they create an entry with an Originating Depository Financial Institution, which acts as a middleman between a payment processor (like the Federal Reserve) and the originator. The ODFI ensures that the transaction complies with the relevant regulations. In this example, Bank of America is the ODFI. Bank of America (the ODFI) converts the transaction request into an ACH entry and submits it, through an ACH operator, to the Receiving Depository Financial Institution (RDFI), which in this case is Chase bank. Chase credits (deposits) the paycheck in Bob's account. The Federal Reserve fits into all of this in several ways. Through systems like Fedline and FedACH, the Fed acts as an ACH operator, and the banks themselves also maintain accounts at the Federal Reserve, so it's the institution that actually performs the settling of accounts between banks.",
"title": ""
},
{
"docid": "5d9228e10db25f68942d77425abb2fd5",
"text": "It takes about 4-5 workdays, maybe it depends on the day also when you start the transfer. I transferred an amount last Wednesday, and the same amount on Thursday too. Both transactions hit the destination account on the next Tuesday, with a difference of 2 minutes.",
"title": ""
},
{
"docid": "b28c2b7e080f6e38428d65d2bbb39ce5",
"text": "You mentioned BoA. I have had BoA accounts for about ten years. All of my transfers between accounts are immediate. I have never had to wait with BoA. Scottrade Accounts are the worst in this respect. Once I had to wait 8 days. PayPal come in a close second for making you wait.",
"title": ""
},
{
"docid": "6bc9f64574af2062c1c3525e86aac0e1",
"text": "Typically your statement will break down each of the balances that carry a different rate, so you'll see them lumped into the 0% line, or two separates lines with different rates for each. If you don't see it on the statement, a quick call to your bank should clarify it for you. If I had to guess, I would lean towards the fee likely being at 0% also, but if it isn't, typically you would pay the minimum + $350 on your next statement. (Because only amounts over the minimum go towards principal of the highest rates first, at least this is true in the US for personal accounts.) Of course this is something your bank should be able to clarify as well. Balance Transfer Tip: I always recommend setting up automatic payments when you take advantage of a balance transfer offer. The reason is, oftentimes buried deeply in the terms and conditions, is an evil phrase which says that if you miss a payment, they have the right to revoke the promotional rate and start charging you a higher rate. That would be bad enough if it happened, but to make things worse I believe the fee you paid for the transfer is not returned to you. So, set up an auto payment each month for at least the minimum payment. And if you can afford it, divide the total transferred by the number of months and pay that amount each month. (Assuming you don't pay interest on the fee: $17,500 * 1.02 / 18 = $991.67/per month.) That way you'll have it paid off just in time to not have any higher interest when the promotional rate expires. If you don't know if you can afford the higher amount each month, set it to the max you know for sure you can afford, and make additional payments whenever you can.",
"title": ""
},
{
"docid": "c6ddb84841ba35ab5fc8c50d1d484257",
"text": "If his credit union participates in the national Co-Op, then he will be able to withdraw money at any participating credit union. He could just bring cash a check out in his name, just like he would at home.",
"title": ""
},
{
"docid": "303588b49013c7679b9fa2bf9d544700",
"text": "\"From my experience, payments from banks and other financial entities, such as loyalty programs, generally aren't as large as payments that go the other direction from consumer to bank. Thus, keeping a bank account open simply for some reward/loyalty points may just be changing your behavior for the wrong reasons. The more important scenario is whether or not you have any automated ACH payments or whether your bank account is linked to other services. Perhaps the biggest tell that you're in the clear is when those transactions start occurring from your credit union account. For example: If you had a direct deposit to your BMO bank account, make sure you see deposits start to appear in the credit union account. If you're making automatic withdraws to an online savings or brokerage account, make sure those transfers are stopped and that you instead see them coming out of your new credit union account. You shouldn't need to move the auto loan, but you will need to make sure you can pay it from the new account. Some financial advisors, such as in this BankRate article titled, Lenders can tap bank account for mortgage, even recommend keeping liabilities and assets at different locations. If for whatever reason your financial situation turned bleak, it would be more difficult for the bank to help itself to what's in your checking account. To avoid getting nickel and dimed to death by \"\"payment processing fees\"\", I tend to pay insurance bills yearly or semi-annually. Thus, consider if there is anything that may be coming due in the next 6 months. If so, you might want to get your new account hooked up while you still have all the routing numbers and account numbers in your head. It's a pain to dig this stuff up while also rushing to not be late. If all that is in order, close the account.\"",
"title": ""
},
{
"docid": "1903fda93dd60eb42ad1a8c8f1891a01",
"text": "\"There is no Federal law that mandates that they must re-open a closed account. They can either refuse the transfer / return the money, or they can optionally re-open your account so they get money (makes more sense for them). It is, however, in one of your agreements that they reserve the right to re-open a closed account in order to receive the deposit. At which point, your account will become active, and the balance may be below the required minimum balance threshold, so you may have maintenance or low-balance fees charged against the account (Credit Unions are less likely to have these fees). If you want to call them out on their BS, you can ask them to cite the law which mandates the re-opening of closed accounts. They will likely fall back on your Member agreement. There may be some state laws that discuss this, but I haven't found anything. This has become such a problem for some bank customers (where they are charged fees on the money they weren't aware they had) that a law was proposed in Sept. 2013, called the Freedom and Mobility in Consumer Banking Act, which would essentially only allow the named account holder(s) to re-open a closed account. I went ahead and looked up the NACHA guidelines for ACH transfers (I got the 2013 version) 2013 Corporate Rules and Guidelines. These lines reference \"\"Article 4A\"\", which is Uniform Commercial Code Section 4A - Funds Transfer. This means that if your account is actually closed, they have an exception to the standard timeframe for issuing a Return Entry. This means that if you notify them (in writing) that you refuse any future credit Entries to the account, they MUST return them. I then went looking for the return reason codes RDFI = Receiving Depository Financial Institution From what I gather, based on these NACHA guidelines, your CU didn't actually close your account. They put it on \"\"hold\"\" or some similar state. If they actually close your account, they are required to issue a Return Entry with Code R02. In your case, your CU doesn't charge you any maintenance fees, but for those working with banks, the best bet is to notify them in writing that you refuse any future credits to the account, or go into a branch and insist on fully closing out the account.\"",
"title": ""
},
{
"docid": "4cb42ac0682df55bbe64cdcfaa95892b",
"text": "CTRs are made all the time, and yes, the banks do need to consider one-off transactions that aren't $10,000 per se but amount effectively to $10,000 or more. But if you're doing nothing improper, just pay your bill and be done with it. No need to split it up just for this reason.",
"title": ""
},
{
"docid": "932ff960880f07599349b1c4836a52b9",
"text": "Although I have not tried, you can check out the Western Union Money Transfers. http://www.westernunion.com/WUCOMWEB/staticMid.do?method=load&pagename=serviceToBank",
"title": ""
},
{
"docid": "1d572b9345892ac7846a98e286c53a59",
"text": "In addition to @mhoran_psprep answer, and inspired by @wayne's comment. If the bank won't let you block automatic transfers between accounts, drop the bank like a hot potato They've utterly failed basic account security principles, and shouldn't be trusted with anyone's money. It's not the bank's money, and you're the only one that can authorize any kind of transfer out. I limit possible losses through debit and credit cards very simply. I keep only a small amount on each (~$500), and manually transfer more on an as needed basis. Because there is no automatic transfers to these cards, I can't lose everything in the checking account, even temporarily.",
"title": ""
},
{
"docid": "f2a6a01369be6e9f838ae3ef8d861f60",
"text": "You could setup a Ally account to use solely for this. There is no minimum, no opening balance requirement, and you can do up to 6 transfers a month for free. This would partition your money from other accounts, while giving you the flexibility to move it to other accounts with ease.",
"title": ""
},
{
"docid": "20f8514034287505491eefa91d8fb952",
"text": "Why not yet phone up the old bank, or log onto the internet banking and do a transfer to the new account. You may first need to transfer from the saving account to a current account with the same bank. (I have never had a problem doing this, but I do live in the UK)",
"title": ""
},
{
"docid": "a01b8d2a8e4e272a5bb2dd7dd7d887e9",
"text": "http://dealbook.nytimes.com/2014/12/13/small-bank-in-kansas-is-a-financial-testing-ground/ Citizens Bank of Weir might allow you to do this, their experimentation in speeding up bank transfers was pushing money over the debit card network.",
"title": ""
}
] |
fiqa
|
6859ff360948b1da11416508cf3e216f
|
I have $100,000 in play money… what to do?
|
[
{
"docid": "d41d8cd98f00b204e9800998ecf8427e",
"text": "",
"title": ""
},
{
"docid": "538fe0fb7780d4da227f8ac29f58e5f1",
"text": "\"For any sort of investment you need to understand your risks first. If you're going to put money into the stock or bond market I would get a hold of Graham's \"\"The Intelligent Investor\"\" first, or any other solid value investing book, and educate yourself on what the risks are. I can't speak about real estate investing but I am sure there are plenty of books describing risks and benefits of that as well. I could see inflation/deflation having an effect there but I think the biggest impact on the landlord front is quality of life in the area you are renting and the quality of the tenant you can get. One crazy tenant and you will be driven mad yourself. As for starting a business, one thing I would like to say is that money does not automatically make money. The business should be driven by a product or service that you can provide first, and the backing seed capital second. In my opinion you will have to put energy and time worth much more than the 100k into a business over time to make it successful so the availability of capital should not be the driving decision here. Hope this helps more than it confuses.\"",
"title": ""
},
{
"docid": "7b3814bee32bbff489cc9ad4c2a1fdb0",
"text": "You can start a software company. Than your office will be around the world and you can work whenever you want. If you can appoint some people who can collect work from here and there and the coder around the world can give you the job done(this can be done by posting your work in various freelancing site). It is challenging, because you have to get yourself up-to-date with the technological things.",
"title": ""
},
{
"docid": "1dafd282bb5c66c61fbf2635c3adf89c",
"text": "As you have already good on your retirement kitty. Assuming you have a sufficient cash for difficult situations, explore the options of investing in Shares and Mutual Funds. As you are new to Stock Market, begin slowly by investing into Mutual Funds and ETF for precious metals. This will help you understand and give you confidence on markets and returns. Real estate is a good option, the down side being the hassle of getting rental and the illiquid nature of the investment.",
"title": ""
},
{
"docid": "ebc700f37f7823b58cf96ca1d3d587ae",
"text": "If you want a concrete investment tip, precious metals (e.g. gold, silver) are on a pretty good run these days, personally I still think they have ways to go as there are just too many problems with modern monetary policy of an almost existential nature, and gold and silver are better stores of value than fiat money. Silver is particularly hot right now, but keep in mind that the increased volatility means increased risk. If the Fed keeps its foot on the pedals of the dollar printing press and we get QE3 this summer, that will most likely mean more people piling into the PMs to hedge against inflation. If the Fed starts to tighten it's policy then that's probably bad news for both equities and bonds and so PMs could be seen as a safe haven investment. These are the main reasons why PMs take up a good portion of my portfolio and will continue to do so untill I see how the global economy plays out over the next couple of years.",
"title": ""
}
] |
[
{
"docid": "2c0c8bfb2dacdf0908a0ca468fa7203e",
"text": "The following advice assumes that you have a significant amount already in the account in cash equivalents. If you are only talking a few hundred bucks or so, then just jump in at the next dip (like today's). If you have a larger amount to move into equities, the safest approach is to gradually move it into investments over some period of time at regular intervals regardless of what is going on in the market. This mitigates the risk of investing it all into an fund that is peaking at the exact moment you buy. So, for example, you might invest 20% of the total amount each month for 5 months to gradually get into the market. The larger the amount you are investing, the more you probably want to spread it out, but don't spread it out much further than a year or you are losing opportunity cost by leaving your money in cash-type investments with likely a very poor rate of return. This strategy is called dollar-cost averaging if you want to research it more.",
"title": ""
},
{
"docid": "f77161ebc75b3cf13e4813498cc4d564",
"text": "There isn't any place you can put $300 and turn it into significant passive income. What you need to do instead is manage the active (work) income that you have so that your money goes farther, freeing income up for reducing debt and investing. Investing $300 one time won't add up to much, but investing $100 a month will turn into wealth over time. Making a monthly budget is the key to managing your income. In the process, you'll find out where your income is going, and you can be intentional about how much you want to spend on different things in your life. You can allocate some of your income to paying down debt and investing, which is what you need to do to get ahead. For some general guidelines on what to do with your money first, read this question: Oversimplify it for me: the correct order of investing. For more specifics on creating a budget, eliminating debt, and building wealth, I recommend the book The Total Money Makeover by Dave Ramsey.",
"title": ""
},
{
"docid": "562199728b298b68e02ab2224814095c",
"text": "\"Your only real alternative is something like T-Bills via your broker or TreasuryDirect or short-term bond funds like the Vanguard Short-Term Investment-Grade Fund. The problem with this strategy is that these options are different animals than a money market. You're either going to subject yourself to principal risk or lose the flexibility of withdrawing the money. A better strategy IMO is to look at your overall portfolio and what you actually want. If you have $100k in a money market, and you are not going to need $100k in cash for the forseeable future -- you are \"\"paying\"\" (via the low yield) for flexibility that you don't need. If get your money into an appropriately diversified portfolio, you'll end up with a more optimal return. If the money involved is relatively small, doing nothing is a real option as well. $5,000 at 0.5% yields $25, and a 5% return yields only $250. If you need that money soon to pay tuition, use for living expenses, etc, it's not worth the trouble.\"",
"title": ""
},
{
"docid": "a849b511991ca24f1b68207ffef4b33a",
"text": "How do I direct deposit my paycheck into a high yield financial vehicle, like lottery tickets? And can I roll over my winnings into more lottery tickets? I want to wait until I have a few billion before touching it, maybe in a year or two.",
"title": ""
},
{
"docid": "50f0f55d05c9ca3afe2902f82d83e655",
"text": "You can't have even a hundred dollars without it being invested somewhere. If it's cash, you're invested in some nation state's currency. If that currency is USD, you have lost about 6% so far this year. But what if you were in the stock market? It's been doing pretty well, no? Thing is, American stocks are priced in American dollars. You have to put those variables together to see what a stock has really been doing.",
"title": ""
},
{
"docid": "b4a07897823bdd213012a5c4d7dcf56d",
"text": "\"First: do you understand why it dropped? Was it overvalued before, or is this an overreaction to some piece of news about them, or about their industry, or...? Arguably, if you can't answer that, you aren't paying enough attention to have been betting on that individual stock. Assuming you do understand why this price swing occurred -- or if you're convinced you know better than the folks who sold at that price -- do you believe the stock will recover a significant part of its value any time soon, or at least show a nice rate of growth from where it is now? If so, you might want to hold onto it, risking further losses against the chance of recovering part or all of what is -- at this moment -- only a loss on paper. Basically: if, having just seen it drop, you'd still consider buying it at the new price you should \"\"buy it from yourself\"\" and go on from here. That way at least you aren't doing exactly what you hope to avoid, buying high and selling low. Heck, if you really believe in the stock, you could see this as a buying opportunity... On the other hand, if you do not believe you would buy it now at its new price, and if you see an alternative which will grow more rapidly, you should take your losses and move your money to that other stock. Or split the difference if you aren't sure which is better but can figure out approximately how unsure you are. The question is how you move on from here, more than how you got here. What happened happened. What do you think will happen next, and how much are you willing to bet on it? On the gripping hand: This is part of how the market operates. Risk and potential reward tend to be pretty closely tied to each other. You can reduce risk by diversifying across multiple investments so no one company/sector/market can hurt you too badly --- and almost anyone sane will tell you that you should diversify -- but that means giving up some of the chance for big winnings too. You probably want to be cautious with most of your money and go for the longer odds only with a small portion that you can afford to lose on. If this is really stressing you out, you may not want to play with individual stocks. Mutual funds have some volatility too, but they're inherently diversified to a greater or lesser extent. They will rarely delight you, but they won't usually slap you this way either.\"",
"title": ""
},
{
"docid": "391d43d1cf4f10b5872dc46e5f2045f0",
"text": "Alright so you have $12,000 and you want to know what to do with it. The main thing here is, you're new to investments. I suggest you don't do anything quick and start learning about the different kinds of investment options that can be available to you with returns you might appreciate. The most important questions to ask yourself is what are your life goals? What kind of financial freedom do you want, and how important is this $12,000 dollars to you in achieving your life goals. My best advice to you and to anyone else who is looking for a place to put their money in big or small amounts when they have earned this money not from an investment but hard work is to find a talented and professional financial advisor. You need to be educated on the options you have, and keep them in lines of what risks you are willing to take and how important that principal investment is to you. Investing your money is not easy at all, and novices tend to lose their money a lot. The same way you would ask a lawyer for law advice, its best to consult a financial planner for advice, or so they can invest that money for you.",
"title": ""
},
{
"docid": "087e6933bdc64feb0d5331a49f615b23",
"text": "\"So, you have $100k to invest, want a low-maintenance investment, and personal finance bores you to death. Oooohhh, investment companies are gonna love you. You'll hand them a wad of cash, and more or less say \"\"do what you want.\"\" You're making someone's day. (Just probably not yours.) Mutual fund companies make money off of you regardless of whether you make money or not. They don't care one bit how carefully you look at your investments. As long as the money is in their hands, they get their fee. If I had that much cash, I'd be looking around for a couple of distressed homes in good neighborhoods to buy as rentals. I could put down payments on two of them, lock in fixed 30-year mortgages at 4% (do you realize how stupid low that is?) and plop tenants in there. Lots of tax write-offs, cash flow, the works. It's a 10% return if you learn about it and do it correctly. Or, there have been a number of really great websites that were sold on Flippa.com that ran into five figures. You could probably pay those back in a year. But that requires some knowledge, too. Anything worthwhile requires learning, maintenance and effort. You'll have to research stocks, mutual funds, bonds, anything, if you want a better than average chance of getting worthwhile returns (that is, something that beats inflation, which savings accounts and CDs are unlikely to do). There is no magic bullet. If someone does manage to find a magic bullet, what happens? Everyone piles on, drives the price up, and the return goes down. Your thing might not be real estate, but what is your thing? What excites you (i.e., doesn't bore you to death)? There are lots of investments out there, but you'll get out of it what you put into it.\"",
"title": ""
},
{
"docid": "d792f323f05b1db6ee224d964a05ab4d",
"text": "A safe investment would be to get a 5-year CD from Ally Bank. No minimum deposit and no monthly maintenance fees. 1.74% APY at the moment. I would choose a 5-year CD since the early withdrawal penalty is only 60 days interest, which will be negligible for a $100 investment and increasing the term significantly increases your interest rate. Regarding other suggestions: Even if you find a way purchase stock commission free, it will probably cost a $5-$10 commission to sell, wiping out probably a year or two of gains. Also, I-Bonds must be held for a year minimum, which is problematic. At the end of the day, it's probably not really worth your time to do any of these. $2 a year or $5 a year, it's still fairly insignificant and your time is surely worth more than that.",
"title": ""
},
{
"docid": "ab63ebccd465e91061835ecbb7464e7b",
"text": "First, what's the reason? Why do you have that much in cash at all - are you concerned about market volatility, are you planning to buy a house, do you have tens of millions of dollars and this is your slush fund? Are you a house flipper and this is part of business for you? If you need the money for short term use - ie, you're buying a house in cash next month - then as long as you're in a sound bank (one of the big national ones, for example) it seems reasonable. You can never predict a crash like 2008, but it seems unlikely that Chase or Citibank will go under in the next few weeks. If you like to have a cash position, then split the money among multiple banks. Buy a CD at one major bank with some of the amount. My in-laws have a trust which is partially invested in CDs, and they use multiple banks for this purpose to keep their accounts fully insured. Each separate bank you're covered up to 250k, so if you have $150k at Chase and $150k at a local bank, you're covered. (You're also covered in a much larger amount - up to 1MM potentially - if you are married, as you can have a separate account each for $250k and a joint account up to $500k.) Otherwise, why do you have that much in cash? You should invest it in something that will return more than inflation, at a minimum... Edit post-clarifications: $350k is around my level of 'Maybe, maybe not'. You're risking $100k on a pretty low risk (assuming this isn't a small local bank, and even those are pretty low still). In order to remove that risk you have to do something active - ie, take 100k somewhere else, open a new bank account, etc. - which isn't exactly the hardest thing in the world, but it does take effort. Is it worth the 0.001% chance (entirely made up) you lose the 100k? That's $10, if you agree with that risk chance. Up to you. It wouldn't be particularly hard, though, to open an account with an online bank, deposit $100k in there in a 6 month CD, then pay the IRS from your other account and when the 6 month CD expires take the cash back into your active account. Assuming you're not planning on buying a house in the next six months this should be fine, I'd think (and even then you'd still have $150k for the downpayment up front, which is enough to buy a $750k house w/o PMI). Additionally, as several commenters note: if you can reasonably do so, and your money won't be making significant interest, you might choose to pay your taxes now rather than later. This removes the risk entirely; the likely small interest you earn over 3 months may be similar to the amount you'd spend (mostly of your time, plus possibly actual expenses) moving it to another bank. If you're making 2% or 3% this may not be true, but if you're in a 0.25% account like my accounts are, $100k * 0.25% * 0.25 is $62.50, after all.",
"title": ""
},
{
"docid": "992d568e9fb89ec12d5ec9d42554e089",
"text": "What is your investing goal? And what do you mean by investing? Do you necessarily mean investing in the stock market or are you just looking to grow your money? Also, will you be able to add to that amount on a regular basis going forward? If you are just looking for a way to get $100 into the stock market, your best option may be DRIP investing. (DRIP stands for Dividend Re-Investment Plan.) The idea is that you buy shares in a company (typically directly from the company) and then the money from the dividends are automatically used to buy additional fractional shares. Most DRIP plans also allow you to invest additional on a monthly basis (even fractional shares). The advantages of this approach for you is that many DRIP plans have small upfront requirements. I just looked up Coca-cola's and they have a $500 minimum, but they will reduce the requirement to $50 if you continue investing $50/month. The fees for DRIP plans also generally fairly small which is going to be important to you as if you take a traditional broker approach too large a percentage of your money will be going to commissions. Other stock DRIP plans may have lower monthly requirements, but don't make your decision on which stock to buy based on who has the lowest minimum: you only want a stock that is going to grow in value. They primary disadvantages of this approach is that you will be investing in a only a single stock (I don't believe that can get started with a mutual fund or ETF with $100), you will be fairly committed to that stock, and you will be taking a long term investing approach. The Motley Fool investing website also has some information on DRIP plans : http://www.fool.com/DRIPPort/HowToInvestDRIPs.htm . It's a fairly old article, but I imagine that many of the links still work and the principles still apply If you are looking for a more medium term or balanced investment, I would advise just opening an online savings account. If you can grow that to $500 or $1,000 you will have more options available to you. Even though savings accounts don't pay significant interest right now, they can still help you grow your money by helping you segregate your money and make regular deposits into savings.",
"title": ""
},
{
"docid": "034885719490c4aa45d6c1e091c10c41",
"text": "\"What you're asking for is a short-term, large return investment. When looking for big returns in a short period of time, risk is inevitable. The more risk you are willing to assume, the higher your potential returns. Of course, the flip is is that the higher your risk, the higher the potential to lose all your money! Since this is an exercise for school (and not real money and not your life savings) your best bet is to \"\"go big or go home\"\". You can safely assume 100% risk! Don't look for value stocks, dividend stocks, or anything that pays a steady return over a long period of time. Instead, look for something risky that has the potential of going up, up, up in the next few months. Are you allowed to trade options in your fake portfolio? Options can have big risk and big reward potential. Penny stocks are super volatile, too. Do some research, look for a fad. In other words, you will most likely lose it all. But you get a little lucky, you could win this thing outright by making some risky investments. A 5% chance of winning $3000 vs 95% of going broke may be pretty good odds if everyone else is value investing for just a few months. You will need to get lucky. Go big or go home!\"",
"title": ""
},
{
"docid": "966466d52e4f69435e9bd353a0e53e7d",
"text": "You are long the puts. By exercising them you force the underlying stock to be bought from you at your strike price. Let's say your strike it $100 and the stock is currently $25. Buy 100 shares and exercise 1 (bought/long) put. That gives you $7500 of new money, so do the previous sentence over again in as many 'units' as you can.",
"title": ""
},
{
"docid": "c04c94c58cc1e469ef411466c4daa4f9",
"text": "\"The €100'000 limit is per bank, where \"\"bank\"\" is defined as a financial institution with a banking license from one of the ECB members. \"\"WeltSparen\"\", is operated by the MHB-Bank which is a German bank, recognized by the Bundesbank. That means your money is initially guaranteed by the Bundesbank. When it's moved to the final saving account, you'll be saving at other banks, which are identified in the individual offerings. This can be an effective technique to split capitals in excess of €100.000. You should obviously look for banks that are backed by ECB member banks, but keep in mind what happened to Iceland: the national banks can also fail. In particular, the Bank of Italy at the moment is looking a bit shaky because Monte dei Paschi di Siena is currently failing and will require a bail-out. There's no official back-up for failing national banks within the ECB system.\"",
"title": ""
},
{
"docid": "51863cda125d76edb58e5d99691c7392",
"text": "\"As you've observed, when you're dealing with that amount of money, you're going to have to give up FDIC guarantees. That means that keeping the money in a bank account carries some risk with it: if that particular bank goes bust, you could lose most of your money. There are a few options to stretch the FDIC limit such as CDARS, but likely can't handle your hypothetical $800 million. So, what's a lucky winner to do? There are a few options, including treasury securities, money market funds, and more general capital investments such as stocks and bonds. Which one(s) are best depend on what your goals are, and what kind of risks you find acceptable. Money in the bank has two defining characteristics: its value is very stable, and it is liquid (meaning you can spend it very easily, whenever you want, without incurring costs). Treasury securities and money market funds each focus on one of these characteristics. A treasury security is a piece of paper (or really, an electronic record) saying that the US Federal Government owes you money and when they will pay it back. They are very secure in that the government has never missed a payment, and will move heaven and earth to make sure they won't miss one in the future (even taking into account recent political history). You can buy and sell them on an open market, either through a broker or directly on the Treasury's website. The major downside of these compared to a bank account is that they're not as liquid as cash: you own specific amounts of specific kinds of securities, not just some number of dollars in an account. The government will pay you guaranteed cash on specified dates; if you need cash on different dates, you will need to sell the securities in the open market and the price will be subject to market fluctuations. The other \"\"cash-like\"\" option is money market funds. These are a type of mutual fund offered by financial companies. These funds take your money and spread it out over a wide variety of very low risk, very short term investments, with the goal of ensuring that the full value will never go down and is available at any time. They are very liquid: you can typically transfer cash quickly and easily to a normal bank account, write checks directly, and sometimes even use \"\"online bill pay\"\"-like features. They have a very good track record for stability, too, but no one is guaranteeing them against something going terribly wrong. They are lower risk than a (non-FDIC-insured) bank account, since the investments are spread out across many institutions. Beyond those two somewhat \"\"cash-like\"\" options, there are of course other, more general investments such as stocks, bonds, and real estate. These other options trade away some degree of stability, liquidity, or both, in exchange for better expected returns.\"",
"title": ""
}
] |
fiqa
|
a828c6c1d5a1bf0c0d56598fc9d8de1b
|
Is it possible, anywhere in the US for a funding firm to not have a license number showing somewhere?
|
[
{
"docid": "ba7ff54a3a9af4ac23f5140a5e1a2b41",
"text": "In the United states the US government has the Small Business Administration. They also have Small Business Development Centers SMDC to help. These are also supported by state governments and colleges and universities. SBDCs provide services through professional business advisors such as: development of business plans; manufacturing assistance; financial packaging and lending assistance; exporting and importing support; disaster recovery assistance; procurement and contracting aid; market research services; aid to 8(a) firms in all stages; and healthcare information. SBDCs serve all populations, including: minorities; women; veterans, including reservists, active duty, disabled personnel, and those returning from deployment; personnel with disabilities; youth and encore entrepreneurs; as well as individuals in low and moderate income urban and rural areas. Based on client needs, local business trends and individual business requirements, SBDCs modify their services to meet the evolving needs of the hundreds of small business community in which they are situated. SBDC assistance is available virtually anywhere with 63 Host networks branching out with more than 900 service delivery points throughout the U.S., the District of Columbia, Guam, Puerto Rico, American Samoa and the U.S. Virgin Islands,. Your local SBDC should be able to help you identify local sources of funds, including government backed loans for small businesses.",
"title": ""
},
{
"docid": "4fbe50f898807147c7d5d2961fb51a67",
"text": "Well, these can range from loan broker to outright scams. It is pretty typical that loan broker just take some fee in the middle for their service of filling your applications for a bunch of real loan provider companies. Because making a web page costs nothing, a single loan broker could easily have many web pages with a bit different marketing so that they can get as many customers as possible. But of course some of the web pages can be actual scams. As soon as you provide enough information for taking out a loan, they can go to a real financial institution, take out the loan and run with the money. In most countries consumer protection laws do not apply to business-to-business transactions, so you have to be even more wary of scams than usual.",
"title": ""
}
] |
[
{
"docid": "d8b09ee2638ceb7294e3fcb01aaeee55",
"text": "I realize this is a stale topic, but to anybody who may swing by looking for an answer to this question (on the recently revised W-8BEN), a foreign taxpayer can get an individual taxpayer identification number (ITIN) without being resident in the US. However, an ITIN will often not be necessary for W-8BEN purposes if you have a tax number from your local jurisdiction. Check the Form W-8BEN instructions for your specific situation, but some taxpayers will need neither a US-issued ITIN nor a foreign-issued TIN. Forming a Delaware or Nevada LLC would be expensive and generally subject to federal and state tax and filing obligations. It would also moot the need for a W-8BEN, which only applies to foreign taxpayers; the equivalent form for domestic taxpayers is Form W-9.",
"title": ""
},
{
"docid": "96aefa42c9120412e688d4e47ccabd3c",
"text": "Street name is not what you think it is in the question. The broker is the owner in street name. There is no external secondary owner information. I don't know if there is available independent verification, but if the broker is in the US and they go out of business suddenly, you can make a claim to the SIPC.",
"title": ""
},
{
"docid": "c06dd8658a400808f0995c1905f5a6bd",
"text": "This depends on the practise and applications available with the Beneficiary Bank. For a corporate customer, the details are show. For Retail customers they are generally not shown.",
"title": ""
},
{
"docid": "35d7b7bfa64a908279a2976bd2f45da3",
"text": "The old school way would have been to identify some wealthy zip codes and cold call like a mofo. At present I would prefer to find some retiring advisor and buy his book (that may mean leaving your current firm).",
"title": ""
},
{
"docid": "2e0d9dbc09105ab8b27d8604bfd88f35",
"text": "Off the top of my head I can think of 10 prop shops in Chicago that don't require any sort of certifications. Most those certification requirements are there only when you are managing outside investor money. I was under the impression you are just trading the firm's capital, not outside investor capital, which is why I asked (which, to me, is the definition of a prop shop.)",
"title": ""
},
{
"docid": "2c2b5675ead73a08d535df4876b8ea5c",
"text": "\"I can't find a citation, but from memory (EDIT: and reading the newspapers at the time it happened): up until around 1980, banks couldn't cross state borders. In my state, at least, they were also very local, only staying within one county. This was to enforce \"\"localness\"\", the thought being that local bankers would know local people and the local situation better than far away people who only see numbers and paperwork.\"",
"title": ""
},
{
"docid": "8d993890289505b5f6a9d42cd48978ea",
"text": "\"In Canada, for example, they are expected or required to find out. They call it, The “Know Your Client” rule, part of which is knowing your \"\"Investment knowledge and experience\"\". They say it is, \"\"to ensure their advice is suitable for you\"\". I have always been given that kind of form to fill in, when opening an account.\"",
"title": ""
},
{
"docid": "963461a2922f65173425e0d5ade73c8a",
"text": "Its not public information but it would be hard to keep it a secret. By its very nature, a custodial bank has to interact with various brokers, middle office systems, back office systems - many of which are third party. And the investment firm will likely be giving out their custodial information to these third parties to set up interfaces and whatnot.",
"title": ""
},
{
"docid": "7c722dc91f5383cd2b021d3cd0a0f154",
"text": "It is completely in the realm of each lender what they request. Some lenders always want to see proof of income, and others have decided to look only at other things. Their decision has nothing to do with you, your situation, your income, or your credit history. You are of course free to go to another lender that does not want proof of income.",
"title": ""
},
{
"docid": "d2930f58b82be1037bcd97026c3c9461",
"text": "The reason the loan amount is showing is because it is a default - the fact that you live in a non-recourse state doesn't change the fact that a loan obligation that had your name on it was defaulted upon. I don't think there is much you can do now given that your name was still on the mortgages.",
"title": ""
},
{
"docid": "0f02d14b3b88c6a19f10f13209e2455d",
"text": "I've talked to several very experienced accountants that deal with startup shares, stock 83(b)'s, etc. weekly (based in SF, CA) as this issue would have had a massive impact on me. The most important part of filing an 83(b) is notifying the IRS within 30 days. The law requires the written notification within the 30 day window. Adding it to that years tax return is an IRS procedure. Forgetting to include a copy of that years tax return is apparently a common occurrence when no tax was owed (0 spread, you actually paid the FMV). And the accepted method to resolve this is to simply file a blank amendment for that years return and include the copy of the 83(b) election.",
"title": ""
},
{
"docid": "e514d818bc9ca8b9d5b4054e4321ba20",
"text": "If you or she can't answer this or don't have access to someone who can, then I fear for the business. That said, it really depends on where you are and how your business is incirporared, but I can't think of any law prohibiting it where I am. I was an employee of my dad's business as soon as I was legal.",
"title": ""
},
{
"docid": "3091eda9cb4abbce57a1fd1559c2da15",
"text": "This is all answered in the prospectus. The money not yet invested (available/committed to a note but not yet funded) is held in pooled trust account insured by FDIC. Money funded is delivered to the borrower. Lending Club service their notes themselves. Read also my reviews on Lending Club.",
"title": ""
},
{
"docid": "c0e7a965e82c1984ba0795078090e9f8",
"text": "I am wondering weather it is worth it (how taxation works in this scenario ect.) or not and legally possible to do so ? Whether it is worth it or not is up to you. There's nothing illegal in this, unless of course there's a legal issue in the foreign country. The US doesn't care. Re taxes - it is a bit trickier. If your lender does not provide you with form 1098, you'll have to report the lender's name, address and SSN/ITIN on your tax return in order to claim a deduction. The IRS will then expect the lender to report that interest as income. This is US-sourced income and is taxed in the US despite the fact that the lender is non-resident. See here for more info. If the lender doesn't report the income and doesn't pay the taxes - your deduction may be denied as well for double-dipping. It is easier if this is an investment. Then the deduction is not going to Schedule A, but rather as an expense to Schedule E. The IRS may still require matching, but you won't need to report the SSN/ITIN - just have the expense properly documented. Obviously, the best when it comes to legal issues, is to talk to an attorney licensed in the State in question. Similarly with tax questions - you should talk to a EA/CPA licensed in that State. I'm neither.",
"title": ""
},
{
"docid": "69ac51b8ab938496513c86e787af062d",
"text": "\"This is common practice I would suprised that there was multinationals not doing this. What is funny though is when auto companies in Australia get government grants to be viable but then send the same amount of money back to the US for \"\"branding licence\"\". Looking at you General Motors\"",
"title": ""
}
] |
fiqa
|
860068d370034366f70fc6e61c9dbf6a
|
How to deduct operational loss from my personal income tax?
|
[
{
"docid": "b84e43a18db301825aa7a9e96c8f979a",
"text": "\"I'm not an accountant, and you should probably get the advice of one to be sure about what to do. However, if the business is a sole-proprietorship, you'd complete a Schedule C for the business, and you'd end up with a loss at the end. If the investment you made in the business is considered to be entirely or partially \"\"at risk\"\" per the IRS definition, you'd get to claim all or part of the loss as a reduction in your income. If the business was an LLC, then you're beyond my already limited knowledge. There may be some other considerations based on whether this was really a business vs a hobby, and whether or not you're going to try to continue with the business, or whether you've shut it down. I'm not sure about those parts, but they'd be worth exploring with an accountant.\"",
"title": ""
}
] |
[
{
"docid": "2da0e37099545e4632ce50e5d86a6d22",
"text": "\"A lot of financial software will calculate the value of operating leasess for you (bullet 2). E.g. Capital IQ, BB. What a lot of professionals do is \"\"reverse\"\" out EBITDA/EBIT etc. for: - non-recurring expenses (think big accounting changes, some impairments) - change operating expenses into capital leases to adjust the capital structure - occasionally change some operating expenses (e.g. options) because you are under the assumption if you take a company private that those expenses will not be relevant The whole point is simply to see the operating revenues/expenses of the firm\"",
"title": ""
},
{
"docid": "b8e8504980df3d08aed3ef297c10e963",
"text": "You will be liable to pay the tax For the 2017 year of assessment (1 March 2016 - 28 February 2017) if you earned less than R75 000 you will not have to pay any tax The annual budget speach is this week and the new tax rates will be released but most likely that R75 000 will increase to R78 000+- so if you earn less than that tax would not even be applicable on you, Should you earn in a tax year more than R75 000 then would be able to do your own tax return and payments via E-Filling on SARS's website : http://www.sarsefiling.co.za/ But if you earn less than R350 000 then you don't have to submit a tax return, but there is nothing that stops you from submitting one if you feel that you want to. You can use https://www.taxtim.com/za/ to help you with other questions you might have. You can potentially bring down your tax-able income by showing a loss in capital value of your equipment that you purchased that is now worth less than it was when you initially purchased it, but these are all things you should discuss with a tax practitioner, I am not entirely sure how you will show a loss in capital value as a sole-proprietor, that is what you will be since you are not a company.",
"title": ""
},
{
"docid": "1a5d7946255a0c9f37b42e4ec70d58ca",
"text": "First, I believe that you can't just divide the losses over a number of years. I know that would be ideal as it might let you use the losses to only offset 25% income. A loss that gets you below zero taxable income would carry forward to the next year. That said, I think it would be a great strategy to use the loss to offset a Roth conversion, in your case, from the traditional 401(k) to Roth 401(k). Keep in mind, as you've seen from using the 2016 tax year TurboTax, you should be able to make a fairly good estimate for your 2017 return. This could effectively use all of the loss to offset 25% income. I'd look at the current projection and convert say 75-80% of the target amount immediately, then in November when the 2017 software comes out, convert the rest to get as close to your goal as you can.",
"title": ""
},
{
"docid": "1d7d8e8d7d26758e0fa9d7e3531f56cc",
"text": "In some circumstances losses from self-employment can be offset against total income and/or capital gains. If this applies to you may be able to claim back some of the tax taken by PAYE from your day job. You can also to some extent carry the loss backwards into previous tax years or forward into the next one if you can't use it fully this year. HMRC have some information available on the current rules: When you can claim losses You can claim: But You can’t claim:",
"title": ""
},
{
"docid": "f8985859319a850622a66372ac3ac946",
"text": "I don't see a tag for United States, so I'm having to assume this is US taxes. It doesn't matter what app you use, IRS trades are all calculated the same. First, you have to report each trade on a 8949 and from that the totals go into a schedule D. Short term trades are stocks that you've kept exactly one year or less, long term trades are for 1 year + 1 day or more. Trades where you sold a stock for a loss, then bought that stock back again under 30 days don't get to count as a loss. This only affects realized capital gains and losses, you don't count fees. First, take all of your short term gains then offset them by all of your short term losses. Do the same for long term gains and losses. Short and long term gains are taxed at different rates. You can deduct losses from short term to your long term and vice versa. Then you can deduct the total losses up to $3000 (household, $1500 married, filing separately) per year on your regular income taxes or other dividend taxes. If you have over $3000 in losses, then you need to carry that over to subsequent years. Edited per Dave's comments: thanks Dave",
"title": ""
},
{
"docid": "451e7176d208d3ff2634c0612d4b61bb",
"text": "The loss for B can be used to write off the gain for A. You will fill out a schedule 3 with cost base and proceeds of disposition. This will give you a $0 capital gain for the year and an amount of $5 (50% of the $10 loss) you can carry forward to offset future capital gains. You can also file a T1-a and carry the losses back up to 3 years if you're so inclined. It can't be used to offset other income (unless you die). Your C and D trades can't be on income account except for very unusual circumstances. It's not generally acceptable to the CRA for you to use 2 separate accounting methods. There are some intricacies but you should probably just use capital gains. There is one caveat that if you do short sales of Canadian listed securities, they will be on income account unless you fill out form T-123 and elect to have them all treated as capital gains. I just remembered one wrinkle in carrying forward capital losses. They don't reduce your capital gains anymore, but they reduce your taxable income. This means your net income won't be reduced and any benefits that are calculated from that (line 236), will not get an increase.",
"title": ""
},
{
"docid": "0a788c0d227d60e290dc71775c247243",
"text": "Yes, you've summarized it well. You may be able to depreciate your computer, expense some software licenses and may be home office if you qualify, but at this scale of earning - it will probably not cover for the loss of the money you need to pay for the additional SE tax (the employer part of the FICA taxes for W2 employees) and benefits (subsidized health insurance, bonuses you get from your employer, insurances, etc). Don't forget the additional expense of business licenses, liability insurances etc. While relatively small amounts and deductible - still money out of your pocket. That said... Good luck earning $96K on ODesk.",
"title": ""
},
{
"docid": "cc6fa619ea47d96f8115d98b2b451219",
"text": "\"This is called \"\"Net Operating Loss\"\", and it is in fact applicable for individuals as well. You can, under certain circumstances, have NOL even as an individual. But it is far more common in the corporate world. What happens is that you can carry it back or forward, and get refund on taxes paid or adjust income for taxes to pay. In your example, you could carry the $75 NOL back and deduct it from the prior year earnings, reducing the taxable income from $100 to $25, getting $18.75 of the $25 paid as taxes - back. The link is for individual NOL, corporate rules are different, but the principle is the same.\"",
"title": ""
},
{
"docid": "b5dca99a685e3a33d3939c04c8107c93",
"text": "From the instructions: If you do not need to make any adjustments to the basis or type of gain or loss (short-term or long-term) reported to you on Form 1099-B (or substitute statement) or to your gain or loss for any transactions for which basis has been reported to the IRS (normally reported on Form 8949 with box A checked), you do not have to include those transactions on Form 8949. Instead, you can report summary information for those transactions directly on Schedule D. For more information, see Exception 1, later. However, in case of ESPP and RSU, it is likely that you actually do need to make adjustments. Since 2014, brokers are no longer required to track basis for these, so you better check that the calculations are correct. If the numbers are right and you just summarized instead of reporting each on a separate line, its probably not an issue. As long as the gains reported are correct, no-one will waste their time on you. If you missed several thousand dollars because of incorrect calculations, some might think you were intentionally trying to hide something by aggregating and may come after you.",
"title": ""
},
{
"docid": "3cef4b15724a32fdbb940c05a10463e0",
"text": "I don't think there's much you can do. Losses from the sale of personal-use automobiles (used for pleasure, commuting, etc) are not deductible as capital losses. See IRS Tax Topic 409, end of the first paragraph. The expenses you incurred in owning and operating the car (insurance, fuel, maintenance, service plans, etc) are not deductible either. If you used it partly for business, then some of your expenses might be deductible; see IRS Tax Topic 510. This includes depreciation (decline in value), but only according to a standard schedule; you don't generally just get to deduct the difference between your buying and selling price. Also, you'd need to have records to verify your business use. But anyway, these deductions would apply (or not) regardless of whether you sell the car. You don't get your sales tax refunded when you resell the vehicle. That's why it's a sales tax, not a value-added tax. Note, however, that if you do sell it, the sales tax on this new transaction will be the buyer's responsibility, not yours. You do have the option on your federal income tax return to deduct the state sales tax you paid when you bought the car; in fact, you can deduct all the sales taxes you paid in that year. (If you have already filed your taxes for that year, you can go back and amend them.) However, this takes the place of your state income tax deduction for the year; you can't deduct both. See Tax Topic 503. So this is only useful if your sales taxes for that year exceeded the state income tax you paid in that year. Also, note that state taxes are not deductible on your state income tax return. Again, this deduction applies whether you sell the car or not.",
"title": ""
},
{
"docid": "a936d2048a9a5aaf00b15383d3040ce9",
"text": "If you have made $33k from winning trades and lost $30k from loosing trades your net gain for the year would be $3k, so obviously you would pay taxes only on the net $3k gains.",
"title": ""
},
{
"docid": "f0b2dec86cc33c2268c96a302983fdcf",
"text": "Great question! It can be a confusing for sure -- but here's a great example I've adapted to your scenario: As a Day Trader, you buy 100 shares of LMNO at $100, then after a large drop the same day, you sell all 10 shares at $90 for a loss of $1,000. Later in the afternoon, you bought another 100 shares at $92 and resold them an hour later at $97 (a $500 profit), closing out your position for the day. The second trade had a profit of $500, so you had a net loss of $500 (the $1,000 loss plus the $500 profit). Here’s how this works out tax-wise: The IRS first disallows the $1,000 loss and lets you show only a profit of $500 for the first trade (since it was a wash). But it lets you add the $1,000 loss to the basis of your replacement shares. So instead of spending $9,200 (100 shares times $92), for tax purposes, you spent $10,200 ($9,200 plus $1,000), which means that the second trade is what caused you to lose the $500 that you added back (100 x $97 = $9,700 minus the 100 x $102 = $10,200, netting $500 loss). On a net basis, you get to record your loss, it just gets recorded on the second trade. The basis addition lets you work off your wash-sale losses eventually, and in your case, on Day 3 you would recognize a $500 final net loss for tax purposes since you EXITED your position. Caveat: UNLESS you re-enter LMNO within 30 days later (at which point it would be another wash and the basis would shift again). Source: http://www.dummies.com/personal-finance/investing/day-trading/understand-the-irs-wash-sale-rule-when-day-trading/",
"title": ""
},
{
"docid": "dddc066c97185591206de8eeb5c95863",
"text": "\"I have done several days of additional research on this and found out that it appears I can deduct the cost of the books against a single year's royalty income by claiming a Section 179 deduction. The steps are as follows: (1) Write the maximum amount of property you can claim under section 179 on line 1 of Form 4562. (2) Add up the total cost of section 179 property you began using during the tax year, including books, and record the amount on line 2. (3) Write the limit of your deductions on line 3. (4) Subtract the amount on line 2 from the amount on line 3 and record it on line 4. If line 3 is larger than line 2, simply write \"\"0\"\" on line 4, then subtract the amount on line 4 from the amount on line 1 and record on line 5. Step 5 (5) Describe the property and books on line 6 and record the cost of each in section b. Write the amount of the expense you are claiming for each item in section c of line 6. You can claim the entire cost of the books. (6) Add the amount in line 6 c to any amounts on line 7 and write the total on line 8. Write either the amount on line 8 or the amount on 5 on line 9, depending on which is smaller. (7) Write the amount of your Schedule C income on line 11, unless it is greater than $500,000. On line 12, write the amount of your deduction, which is the total of line 9 plus any carry-over you may have had from the previous year. (8) Record the amount of your deduction for section 179 books and property on line 13 of your Schedule C, not line 22. Include form 4562 when you hand in your tax return. source: \"\"How to Deduct Books for Self-Employed\"\" by Emily Weller\"",
"title": ""
},
{
"docid": "30dbc27585a5e7c1e53bbaec9a1a710e",
"text": "Generally speaking, if a business loses money for whatever reason, then that reduces the profits of the business which reduces the tax payable. However if you were holding the assets on a personal basis prior to incorporating the business, the position may become more complicated. For that kind of money some professional advice may be worthwhile.",
"title": ""
},
{
"docid": "56f607bca64522b8754268ef2dbe932a",
"text": "Once the business is shut down, you'll need to show that the corporation is in bankruptcy and the amounts are unrecoverable. You can then report it as investment loss. I suggest talking to a tax adviser (EA/CPA licensed in your State), and maybe an attorney, on what the specific technical details are.",
"title": ""
}
] |
fiqa
|
6b8886f7531e727f4fdb44691fbae623
|
Can my company buy my personal debt?
|
[
{
"docid": "748dc61cc970da3eeea8d867b964751b",
"text": "When your debt is forgiven, you have to consider the amount written off as an ordinary income item (with the exclusion of the debt originated from the purchase of primary home). If you're trying to write the debt off from your taxes - then it won't work. Even if you can expense the debt forgiveness, you will incur tax liability on your personal taxes side, and in addition you'll be out of cash in your business. So basically you'll end up paying it with after tax money, exactly the thing you're trying to avoid. In addition, you're dealing with related persons here, which means that the loss deduction might not be allowed (depends on the actual details of the transaction), so you might actually end up paying more taxes with this scheme that just paying off the loan directly (if your business pays taxes separately from your person). A loss on the sale or exchange of property between related persons is not deductible. This applies to both direct and indirect transactions, but not to distributions of property from a corporation in a complete liquidation. For the list of related persons, see Related persons next.",
"title": ""
}
] |
[
{
"docid": "6be77374df9492621476310efad3a555",
"text": "From Wikipedia: If a company with limited liability is sued, then the claimants are suing the company, not its owners or investors. A shareholder in a limited company is not personally liable for any of the debts of the company, other than for the value of their investment in that company. Summarized, no, if you buy stock from the regular stock market like NYSE, you're not personally liable for any debt or fraud that happens.",
"title": ""
},
{
"docid": "34382b5ccbd0784cccad6c8ccda930c3",
"text": "I can't say if there is anything specific that makes lending illegal, but if your company goes bankrupt, you might end up in trouble. First, it's a loan. It must be repaid. It must be in the books as a loan, and if your company couldn't pay its bills, you would have to ask for the money back. If the company goes bankrupt, your creditors will ask for the loan to be repaid. Now if things are worse, your company goes bankrupt, and the person cannot pay back the money, then you could get into real trouble. Creditors won't like that situation at all. They will claim that you moved that money aside to protect it from creditors. They might be able to force you personally to pay, or even start criminal charges against you if you can't pay either. In the UK (and probably elsewhere) it's criminal for the company to pay dividends if that means it cannot fulfil its financial obligations. If there is no money left because of that loan, then you can't get dividend payments from your company. So as long as your company's finances are fine, and that person's finances are fine, you will be Ok (except I don't know if you would need a license), but if there are financial problems then being an LLC might not protect you.",
"title": ""
},
{
"docid": "30aacc07f38e6b5fa8c9dab25168220f",
"text": "\"is your credit history ruined, or merely dinged? Is the blow recoverable? Any bad credit rating event is recoverable given enough time / money to solve the problem. As far as \"\"Ruined\"\" vs\"\" \"\"Dinged\"\", well, that's a matter of opinion; some people think that one bad item is the end of the world, others not so much. You will have an unpaid debt listed on your report. This will drop your score. The amount it impacts the score will depend on other factors in your report. Can the carrier try to get the money back in court? I assume you'll wind up dealing with a debt collector. Yes they could go to court, but that's unlikely at least in the short term. Far more likely is that the debt ends up sold to a debt collection agency for pennies on the dollar. The debt collection agency will harass you until you pay and they might file in court if they think the debt is more than enough to cover the court costs. Will this affect any other relationships you have? Possibly. A bad rating may make it more difficult to get credit in the future. However that depends on numerous other factors such as your entire history. It could even prevent you from being hired from certain jobs - not many of them, but some. Is it criminal? Read this: http://www.startribune.com/investigators/95692619.html The US does NOT have a debtors prison. However if the company decides to file a court case and you fail to appear or fail to abide by the court ruling then, in some states, you could be committing a crime and may be thrown in jail. At which point you are on the hook not just for the original fee but potentially a plethora of other costs. Never mind the loss of reputation when your friends, family and coworkers find out that you are sitting in jail. At the end of the day, just pay the debt. If you agreed to the plan and the plan has an early cancellation fee then the moral and ethical thing to do is pay it. Trying to see how bad it would be to ignore it isn't the right way to live.\"",
"title": ""
},
{
"docid": "6c71050f8830dc2f43f966cdb6b92527",
"text": "one should run their personal business like a company. I walked away from major credit card debt three years ago. soon the debt will be effectively gone forever, I having paid nothing. Fuckers should have negotiated. eat shit big banks.",
"title": ""
},
{
"docid": "b119c3a4579b3590ed61ce06ee66a0f4",
"text": "\"I have never double-answered till now. This loan can't be taken out of context. By the way, how much is it? What rate? \"\"Debt bad.\"\" Really? Line the debt up. This is the highest debt you have. But, you work for a company that offers a generous match, i.e. the match to your 401(k). Now, it's a choice, pay off 6% debt or deposit that money to get an immediate 100% return. Your question has validity. In the end, we can tell you when to pay off the debt. After - The issue is that you are quoting a third party without having the discussion or ever being privy to it. In court, this is called 'hearsay.' The best we can do is offer both sides of the issue and priority for the payments. Welcome to Money.SE, nice first question.\"",
"title": ""
},
{
"docid": "c7238a79b7b4178cf71c34c008b89d9d",
"text": "You can avoid companies that might go bankrupt by not buying the stock of companies with debt. Every quarter, a public company must file financials with the EDGAR system called a 10-Q. This filing includes unaudited financial statements and provides a continuing view of the company's financial position during the year. Any debt the company has acquired will appear on this filing and their annual report. If servicing the debt is costing the company a substantial fraction of their income, then the company is a bankruptcy risk.",
"title": ""
},
{
"docid": "79f21f915d96f4657dbefa524ea5e1e0",
"text": "Strange that they're holding you personally legally liable rather than the company. That's normally a big part of the corporate veil. You need a lawyer, not a stackexchange.",
"title": ""
},
{
"docid": "66e6381d2dc24069e7834a8319e6a8e8",
"text": "Generally these are public companies set up to do some particular thing and get revenue from use. And yes, the elected representatives signed the municpalities on to these things. If you co-sign a loan, sooner or later you may have to pay up.",
"title": ""
},
{
"docid": "5bcdd1f8417a01da4e2f7a9309792c23",
"text": "I am not a lawyer. I do however own an LLC. It's setup as a partnership with 50/50 ownership. You can do it as a sole proprietorship. In basic terms, if you separate your money and assets from the money and assets of the company then you are personally immune from lawsuit and thus your personal assets are safe. You have to set it up right (fairly cheap) and keep the records right (ie never mix personal and company assets ) but it provides a nice legal buffer and in some cases tax benefits. Do not construe this as legal or accountanting advice. Speak with pros to understand and get it set up right. But it's worth it.",
"title": ""
},
{
"docid": "e264c10f6f937dbbc6dd7287934cb8e5",
"text": "\"According to an article on Bankrate.com from 2011, yes, it can hurt your credit: With individual liability accounts, the employee holds all responsibility for the charges, even if the company pays the issuer directly. Joint liability means the company and employee share the responsibility for payments, says Mahendra Gupta, author of the RPMG survey. In both cases, if the card isn't paid and the account becomes delinquent, it will pop up on the employee's credit report and dent his or her credit score, says Barry Paperno, consumer affairs manager at myFICO.com. It doesn't matter if the company was supposed to make the payment; the repercussions fall on the employee. \"\"It will impact your score no differently than if you were late on one of your own accounts,\"\" Paperno says. Usually, with corporate credit cards, the employee is liable along with the employer for charges on the card. The intent is to provide the employee with an incentive not to misuse the card. However, this can be a problem if your company is late in paying bills. In the distant past, I had a corporate credit card. I was not supposed to have to pay the bill, but I did receive a bill in the mail every month. And occasionally, the payment was late. In my case, these late payments never showed up on my credit report. I can't remember now whether or not this card was reported on my credit report at all. And I remember being told when I got the card that I was jointly responsible for the card with the company. However, your experience may be different. Do the on-time payments show up on your credit report? If so, that may be an indication that a late payment might appear.\"",
"title": ""
},
{
"docid": "43edc39c145d3f08bc65729cd44c8faa",
"text": "Yes this would be the same as when a corporation sells bonds. If it is the same as you describe. A product page would make it possible to give you a definitive answer. Also I strongly advice against taking out this type of loan if not for investment",
"title": ""
},
{
"docid": "6656967ba487892e9921b4bb5f12ca72",
"text": "\"I believe no-one who's in a legal line of business would tell you to default voluntarily on your obligations. Once you get an offer that's too good to be true, and for which you have to do something that is either illegal or very damaging to you - it is probably a scam. Also, if someone requires you to send any money without a prior written agreement - its probably a scam as well, especially in such a delicate matter as finances. Your friend now should also be worried about identity theft as he voluntary gave tons of personal information to these people. Bottom line - if it walks like a duck, talks like a duck and looks like a duck, it is probably a duck. Your friend had all the warning signs other than a huge neon light saying \"\"Scam\"\" pointing at these people, and he still went through it. For real debt consolidation companies, research well: online reviews, BBB ratings and reviews, time in business, etc. If you can't find any - don't deal with them. Also, if you get promises for debtors to out of the blue give up on some of their money - its a sign of a scam. Why would debtors reduce the debt by 60%? He's paying, he can pay, he is not on the way to bankruptcy (or is he?)? Why did he do it to begin with?\"",
"title": ""
},
{
"docid": "13852cdf972191f4fed31803125728b2",
"text": "To issue corporate grade bonds the approval process very nearly matches that for issuing corporate equity. You must register with the sec, and then generally there is a initial debt offering similar to an IPO. (I say similar in terms of the process itself, but the actual sale of bonds is nothing like that for equities). It would be rare for a partnership to be that large as to issue debt in the form of bonds (although there are some that are pretty big), but I suppose it is possible as long as they want to file with the sec. Beyond that a business could privately place bonds with a large investor but there is still registration requirements with the sec. All that being said, it is also pretty rare for public bonds to be issued by a company that doesn't already have public equity. And the amounts we are talking about here are huge. The most common trade in corporate debt is a round lot of 100,000. So this isn't something a small corporation would have access to or have a need for. Generally financing for a smaller business comes from a bank.",
"title": ""
},
{
"docid": "9dc05df9fc6e20481d08de42919c5f53",
"text": "Almost every company I know of charges something like 2% per month on past due accounts. They are not financial institutions, so it's probably quite legal.",
"title": ""
},
{
"docid": "9349f71c3fa6137dd26bb82e45f19afe",
"text": "Typically you give a loan to the company from yourself as a private person, and when the company makes money the company pays it back to you. Then the company pays for all the expenses with the money from the loan. Even if you don't want a business account yet, you can probably ask your bank for a second account (mine in the UK did that without any problems).",
"title": ""
}
] |
fiqa
|
815e3b47585ca58449464b25a75dd961
|
Need small buisness ideas with 100k $ budjet in a 3rd world country
|
[
{
"docid": "834c2a0e0ce54c97615d0a7993d1588d",
"text": "Firstly, I highly doubt anyone on this site will be able to provide you with accurate input on this matter regarding what TO DO. It's the what not to do that may be possible. That said, if you want to offer equipment for rent, which in a developing country is probably a decent idea, I'd start by asking around and doing some research on what people really need and are wanting to rent. I would suggest studying other developing/developed countries histories to see what companies were successful around a similar stage as well. I'd start small: pressure washers, generators, concrete mixers, fork lifts, hydraulic ladders, etc. Getting things that are just a bit too expensive for someone to own and something they don't need all the time. These can be great revenue generators because they're cheap to purchase, but can be rented at a premium.",
"title": ""
}
] |
[
{
"docid": "f27a6c6c9dcf94808d2a9ebbab865880",
"text": "What could a small guy with $100 do to make himself not poor To answer the question directly, not much. Short of investing in something at the exact moment before it goes bananas, then reinvesting into a bigger stock and bigger etc, it's super high risk. A better way is to sacrifice some small things, less coffee, less smokes, less going out partying so that instead of having $100, you have $100 a week. This puts you into a situation where you can save enough to become a deposit on an appreciating asset (choose your own asset class, property in AU for me). Take out a loan for as much as you can for your $100 a week payment and make it interest only with an offset against it, distributions from shares can either be reinvested or put into the offset or in the case of property, rent can be put against the offset, pretty soon you end up with a scenario where you have cash offsetting a loan down to nothing but you still have access to the cash, invest into another place and revalue your asset, you can take out any equity that has grown and put that also into your offset. Keep pulling equity and using the money from the offset as deposits on other assets (it kind of works really well on property) and within 15 years you can build an empire with a passive income to retire on. The biggest thing the rich guys get that the poor guys don't is that debt is GOOD, use someone else's money to buy an appreciating asset then when you pay it back eventually, you own the growth. Use debt to buy more debt for exponential growth. Of course, you need to also invest your time to research what you are investing in, you need to know when you make the decision to buy that it will appreciate, it's no good just buying off a tip, you may as well drop your money on the horses if you want to play it like that. Fortunately, one thing we all have in common regardless of our money is time, we have time which we can invest.",
"title": ""
},
{
"docid": "dd6981c340d46bc7e546cd9c1222d530",
"text": "Does your family go to church? I know reddit hates religion but churches have been a great source of support for small shops just starting off. They are a great opportunity to network in your community. If not, look for other things, toast masters, chamber of commerce. Get something big on the truck, park it in a well lit-high traffic spot (empty). I have heard SOME decent things about location based google adwords. You may want to check out advertising. Also, make sure he comes up in the google results when people look for plumbers. Google is the not-so-new yellow pages and a lot of people just start at the top of the list and work their way down when they need someone in an emergency. Get him to network with General Contractors and maybe the HBA in your area.",
"title": ""
},
{
"docid": "0c2dfe34ea55af11139b3dade5f2cb38",
"text": "I assume the same criteria apply for this as your previous question. You want to physically transfer in excess of 50,000 USD multiple times a week and you want the transportation mechanism to be instant or very quick. I don't believe there is any option that won't raise serious red flags with the government entities you cross the boundaries of. Even a cheque, which a person in the comments of OP's question suggests, wouldn't be sufficient due to government regulation requiring banks to put holds on such large amounts.",
"title": ""
},
{
"docid": "04e3d86a2d2c8b7cc21ef0136505970d",
"text": "A few ideas : sell snacks for the trip, or alternatively just raise your prices and give the snacks for free. Print out a sign with some pictures of where you'll take them, tease the experience. Install curtains that can be opened or closed in case customers want more or less shade / privacy. Have a radio or some speaker to play music during the trip.",
"title": ""
},
{
"docid": "eb9a03241f0728bbb281cd981a8ef674",
"text": "Depending on how tech savvy your client is you could potentially use bitcoin. There is some take of indian regulators stopping bitcoin exchanges, meaning it might be hard to get your money out in your local country but the lack of fees to transfer and not getting killed on the exchange rate every time has a huge impact, especially if your individual transaction sizes are not huge.",
"title": ""
},
{
"docid": "c4c87944eec93fc4026a2e1e59dbde9f",
"text": "I'll consent to this. I get it. But the shop itself is making about 80-100k a month in sales. I realize the wind could shift but as long as I recoup the initial 92k I wouldn't be out any monies. It would take almost a year since each harvest period is 66 days but I get what you mean",
"title": ""
},
{
"docid": "87a9b5c189597cb31def79e3c774a133",
"text": "You can get an SBA disaster loan to help cover costs. There are a few different kinds of loans. You have to live in a qualifying area to get one, which you likely do. There are physical disaster loans, which cover inventory, and that may help replace the flowers/plants. They also have EIDLs which you can use to help cover ongoing costs like fixed bills while you get back into business. Important to note these are loans, intended to be low-interest (or at least lower than a merchant cash advance or putting charges on credit cards), and do have to get paid back. There are hoops to jump through too, but they may be your best option, depending on your current financial situation. (You could also go to your local Small Business Development Center for help -- they have free resources and experts who can help you understand your options.) And when you get back up on your feet, get a business line of credit and business insurance so you have a backup plan and immediate access to capital for next time. This article is about Harvey, but same ideas apply for Irma: https://www.nav.com/blog/how-to-get-an-sba-disaster-loan-after-hurricane-harvey-22706/",
"title": ""
},
{
"docid": "3ba8485a9a1a51d71b7d8c8b919e434f",
"text": "A Standby Letter of Credit was required by a company in UAE to import Gold Dust from a supplier in South Africa, but they do not have enough cash flow to obtain the Standby LC from their Bank. They found Bronze Wing Trading & availed their required SBLC MT760 without any Financial Collateral.",
"title": ""
},
{
"docid": "bab463a3a2eb36c561c7486765a933b2",
"text": "\"A hundred different Indian sweatshops low bidding everyone. I would be surprised if any of those projects are ever successful or under budget, but the amateur clients don't seem to care, they just want \"\"the next Facebook\"\" built for $100.\"",
"title": ""
},
{
"docid": "bc421aa144fe38a52e006f8c9dcde709",
"text": "Also find a way to sell some products to people you drive so they spend more money with you. For example a photo of them on your TukTuk or a small toy TukTuk that's also colored yellow like yours. People will buy them for those kids and for memories",
"title": ""
},
{
"docid": "4bafc1c73d82f92cd9856506cd82bd2d",
"text": "\"To be fair, while he was harsh and over-critical, he was realistic. Based on your vague wording (understandable, you think you have a unique proprietary idea) but the other stuff you mentioned, I don't think you can confidently say it'll make \"\"way over $200,000\"\". It doesn't seem like you've done much research at all, have a business plan together, or any credible experience to evaluate your idea without personal bias. Hope you continue to pursue it, but do your homework. Learn how to put together a business plan, etc. Because obviously if you came to an investor with your idea explained in the style of your original post, you'd more than likely be laughed off as a delusional kid.\"",
"title": ""
},
{
"docid": "42aeba15aa13ed69c349cf669b430e62",
"text": "\"Im currently working on the line for a major multinational. They regularly take feedback from us for improvements, and in India, one of those suggestions increased direct sales by (reportedly) over 50%. That suggestion? Put a label on card readers that said \"\"(company name) Authorized Card Reader\"\". It cost the company less than $10, and now brings in millions per year.\"",
"title": ""
},
{
"docid": "0610566afa2a7e30d8b04a99c7e94284",
"text": "Have you tried your local panhandler? She/He will probably accept 50€ in small change.",
"title": ""
},
{
"docid": "abe5fdb9af1605616d95a643aeb6e484",
"text": "This isn't really the case in Siem Reap in my experience. Hardly any taxis or room for taxis especially in the centre, and every tourist knows it's time to use your negotiation skills. I imagine if one tuktuk driver put out prices all the others would get pretty annoyed.",
"title": ""
},
{
"docid": "d253535002bfac9d7d58b0e7474d6d61",
"text": "PayPal. Or even Western Union or MoneyGram. Despite their fees, there is a reason those companies are still in business.",
"title": ""
}
] |
fiqa
|
b55032ba48d4c47fa046a7cf9b5558d2
|
Tax Write-offs and knowing how much I need to spend before the end of the year
|
[
{
"docid": "d434bac93e59b6bc54b351997abe1226",
"text": "\"(I'm assuming USA tax code as this is untagged) As the comments above suggest there is no \"\"right\"\" answer or easy formula. The main issue is that you likely got into business to make money and if you make money consistently you will pay taxes. Reinvesting generally should be a business decision where the main concern is revenue growth and taxes are an important but secondary concern. Taxes can be complicated, but for a small LLC shouldn't be that bad. I highly recommend that you take some time closely analyze your business and personal taxes for the previous year. Once you understand the problem better, you can optimize around it. If it is a big concern, some companies buy software so they can estimate their taxes periodically through the year and make better decisions.\"",
"title": ""
}
] |
[
{
"docid": "5b35f56ae9f7b7cfeda710f2447a38c3",
"text": "I've given up on trying to understand how the allowances correspond to my number of dependents. What I do instead to achieve the same end goal of having the right amount of money withheld is using a paycheck calculator. If I get paid 24 times a year (twice a month) and I figure I'm going to owe about $6,000 of taxes, then every paycheck needs to have $250 of federal tax withheld from it to make sure I am covered. Go to the paycheck calculator and play with the allowance numbers until you get $250 as the federal tax withheld and then submit a new W4 to your employer. This is the only reliable way I've found to figure this out on my own. Because my calculations are done in dollars instead of exemptions, etc. and my taxes do not wildly fluctuate year-to-year this works well for me.",
"title": ""
},
{
"docid": "d84e9fe503670774bb17b058515f7081",
"text": "1040ES uses the smaller number because that's what triggers the penalties. (That is, you are penalized if what you prepay is less than your total 2013 liability and less than 90% of your 2014 liability.) However, estimated taxes are just estimates. If you pay too little, you could face a penalty, but there's no penalty for paying too much -- you'll just get a refund as usual. It seems that your concern stems from the fact that this is the first year you're in this tax situation and so you're unsure if your estimates are accurate. In your comment to Pete Belford's answer, you also indicated you aren't worried about being unable to pay, but only about accidentally underpaying. In this case, you could just err on the side of caution and pay more than 1040ES says you owe. (You don't actually file the 1040ES, the calculations are just for your own use.) For instance, you could prepay based on the higher of your two estimates, if you can afford it; or, if you can't afford that much, hedge the estimate payments up a bit to an amount you can afford that is closer to the higher estimate. At the end of the year if you paid too much you can get a refund as usual. After this year, you will presumably have a better sense of your income and your tax liability, and can make more accurate estimates for next year.",
"title": ""
},
{
"docid": "48e8a0dc6d64f753cd2ee5f9d1f8c828",
"text": "$3,679,163.80 I made these assumptions that you did not state: Then using Excel, we find that with a starting point of $3,679,163.80, we can achieve your goal. The formula for Yearly Budget is =G$1*((1.035)^(A3-2012)) and the formula for Money left at year end is =(D4/1.05)+C4 For 2067, enter $0 leftover, and for 2066, enter $397,988.47 leftover. G$1 is $60,000 G$2 is 0.05",
"title": ""
},
{
"docid": "2759de95b6e4abc47e93cbccb708395a",
"text": "\"There are way too many details missing to be able to give you an accurate answer, and it would be too localized in terms of time & location anyway -- the rules change every year, and your local taxes make the answer useless to other people. Instead, here's how to figure out the answer for yourself. Use a tax estimate calculator to get a ballpark figure. (And keep in mind that these only provide estimates, because there are still a lot of variables that are only considered when you're actually filling out your real tax return.) There are a number of calculators if you search for something like \"\"tax estimator calculator\"\", some are more sophisticated than others. (Fair warning: I used several of these and they told me a range of $2k - $25k worth of taxes owed for a situation like yours.) Here's an estimator from TurboTax -- it's handy because it lets you enter business income. When I plug in $140K ($70 * 40 hours * 50 weeks) for business income in 2010, married filing jointly, no spouse income, and 4 dependents, I get $30K owed in federal taxes. (That doesn't include local taxes, any itemized deductions you might be eligible for, IRA deductions, etc. You may also be able to claim some expenses as business deductions that will reduce your taxable business income.) So you'd net $110K after taxes, or about $55/hour ($110k / 50 / 40). Of course, you could get an answer from the calculator, and Congress could change the rules midway through the year -- you might come out better or worse, depending on the nature of the rule changes... that's why I stress that it's an estimate. If you take the job, don't forget to make estimated tax payments! Edit: (some additional info) If you plan on doing this on an ongoing basis (i.e. you are going into business as a contractor for this line of work), there are some tax shelters that you can take advantage of. Most of these won't be worth doing if you are only going to be doing contract work for a short period of time (1-2 years). These may or may not all be applicable to you. And do your research into these areas before diving in, I'm just scratching the surface in the notes below.\"",
"title": ""
},
{
"docid": "25c8de141bcd410796ff629067dd17e8",
"text": "\"First, point: The CRA wants you to start a business with a \"\"Reasonable expectation of profit\"\". They typically expect to see a profit within 5 years, so you may be inviting unwanted questions from future auditors by using a breakeven strategy. Second point: If the goal is to pay as little tax as possible, you may want to consider having the corporation pay you as little as possible. Corporate income taxes are much lower than personal income taxes, according to these two CRA links: How it works is that your company pays you little as an outright salary and offers you perks like a leased company car, expense account for lunch and entertainment, a mobile phone, computer, etc. The company owns all of this stuff and lets you use it as part of the job. The company pays for all this stuff with corporate pre-tax dollars as opposed to you paying for it with personal after-tax dollars. There are specifics on meals & entertainment which modify this slightly (you can claim 50%) but you get the idea. The actual rate difference will depend on your province of residence and your corporate income level. There is also a requirement for \"\"Reasonable Expenses\"\", such that the expenses have to be in line with what you are doing. If you need to travel to a conference each year, that would be a reasonable expense. Adding your family and making it a vacation for everyone would not. You can claim such expenses as a sole proprietor or a corporation. The sole-proprietorship option puts any after-expense profits into your pocket as taxable income, where the corporate structure allows the corporation to hold funds and limit the amount paid out to you. I've seen this strategy successfully done first-hand, but have not done it myself. I am not a lawyer or accountant, consult these professionals about this tax strategy before taking any action.\"",
"title": ""
},
{
"docid": "8f5459f1cebd7e7c8731886b20bd6197",
"text": "\"I see you have posted other questions regarding household budgets. This is a huge first step. Once you see what is coming in, then list everything that goes out regularly...and then try to break down what is leftover into spending, household maintenance, gifts, haircuts, whatever...it becomes very obvious if you have x to spend and you spend 3x. I budget a certain amount of discretionary money for both my husband and myself to spend each month. All of our basic expenses are covered under other categories, but I found out long ago that we each need some money to blow on Starbucks, DVD's, books, etc without having to defend or explain it. If we spend too much, it digs into the next month's amount, or if we are careful, we get to carry it over. I can impulse shop guilt free because it's budgeted in. Long story short, if you set up a budget and have an amount budgeted for most reasonable expenses, and see what is left over...it becomes harder to \"\"unwittingly\"\" overspend. When you are paying attention to your money, and start looking carefully at how you are spending it, you'll notice.\"",
"title": ""
},
{
"docid": "2a6920f0c5eeedd0d866e1dab1187ca9",
"text": "I know this is an old question, but for others who may be wondering the same thing, Kualto.com does precisely this. You enter your expected expenses/income and it shows you the beginning and ending balance of each week. You can navigate ahead as much as you want to see how expenses today will affect your account balance in the future.",
"title": ""
},
{
"docid": "8b7f9c7c77f111780c108fef0c2696a8",
"text": "Interesting. When you say DIY you mean pencil and paper. For most of us the choice came down to using a professional vs using the software. Your second bullet really hits the point. The tax return is a giant spreadsheet with multiple cells depending on each other. Short of building my own spreadsheet to perform the task, I found the software, at $30-$50, to be the happy medium between the full DIY and the Pro at $400+. With a single W2, and no other items, the form is likely just a 1040-EZ, and there shouldn't be any recalculating so long as you have the data you need. Pencil/paper is fine. There's no exact time to say go with the software, except, perhaps, when you realize there are enough fields to fill out where the recalculating might be cumbersome, or the need to see the exact tax bracket has value for you. You are clearly in the category that can fill out the one form. At some point, you might have investment income (Schedule D) enough mortgage interest to itemize deductions (Schedule A) etc. You'll know when it's time to go the software route. Keep in mind, there are free online choices from each of the tax software providers. Good for simple returns up to a certain level. Thanks to Phil for noting this in comments. I'll offer an anecdote exemplifying the distinction between using the software as a tool vs having a high knowledge of taxes. I wrote an article The Phantom Tax Zone, in which I explained how the process of taxing Social Security benefits at a certain level created what I called a Phantom Tax Rate. I knew that $1000 more in income could cause $850 of the benefit to be taxed as well, but with a number of factors to consider, I wanted to create a chart to show the tax at each incremental $1000 of income added. Using the software, I simply added $1000, noted the tax due, and repeated. Doing this by hand would have taken a day, not 30 minutes. For you, the anecdote may have no value, Social Security is too far off. For others, who in March are doing their return, the process may hold value. Many people are deciding whether to make their IRA deposit be pre-tax or the Post tax Roth IRA. The software can help them quickly see the effect of +/- $1000 in income and choose the mix that's ideal for them.",
"title": ""
},
{
"docid": "20d029ee79bf663c0ef296cbf536a153",
"text": "Whether you're self-employed or not, knowing exactly how much tax you will pay is not always an easy task. Various actions you can take (e.g., charitable donations, IRA contributions, selling stocks) may increase or reduce your tax liability. One tool I've found useful for estimating federal taxes is the Excel 1040 spreadsheet. This is a spreadsheet version of the income tax return form. It is not official and is not created by the IRS, but is maintained as a labor of love by a private individual. In practice, however, it is pretty much an accurate implementation of the tax calculation algorithms encoded in the tax forms and instructions. The nice thing about it is that it's a spreadsheet. You can plug numbers into various slots in the spreadsheet and see how they affect your federal tax liability. (You may also owe state taxes depending on what state you live in.) Of course, the estimates you get by doing this are only (at most) as accurate as your estimates of the various numbers you plug in. Still, I think it's a free and useful way to get a ballpark estimate of your tax liability based on numbers that you can more easily estimate (e.g., how much money you expect to earn).",
"title": ""
},
{
"docid": "3fe97da3da12776e31cfb58e16e57f81",
"text": "\"It's likely you don't have to make estimated tax payments if this is your first year of contracting (extra income), and your existing salary is already having taxes withheld. If you look at the 1040-ES: General Rule In most cases, you must pay estimated tax for 2014 if both of the following apply. This is easier to understand if you look at the worksheet. Look at line 14b/14c and the associated instructions. 14b is your required annual payment based on last year's tax. 14c is the lesser of that number and 14a, so 14b is your \"\"worst case\"\". 14c is the amount of tax you need to prepay (withholding counts as prepayment). I'm going to apply this to your situation based on my understanding, because it's not easy to parse:\"",
"title": ""
},
{
"docid": "d8b78f45c8342b28a922582638a4e9e4",
"text": "\"Gail Vaz-Oxlade from the television show Til Debt Do Us Part has a great interactive budget worksheet that helps you set up a \"\"jar\"\" or envelope system for each month based on your income and fixed expenses. We have used this successfully in the past. What we found most useful was, as others have said, writing everything down, keeping receipts, and thus being accountable and aware of our spending.\"",
"title": ""
},
{
"docid": "d271fde89192fa9fe39cca5339245c5a",
"text": "One thing that kept me from doing a budget for years is how complex some people make it. For example you list your gross pay, then deduct the taxes, 401K, FSA, etc... Why? Those are pretty consistent. For me, the way this is budgeted is I list my net pay, and go from there. If you were perfect in predicting your FSA, you would have no medical expenses on your budget! Simple, easy budget! Now this year, you will probably have to pay out of pocket for some expenses. Can you predict how much? Can your disposable income absorb the overages? If not you will need to start a sinking fund. That is put a sufficient amount of money into a savings account each month to cover the shortage. Keep in mind you can go over a bit on your FSA contributions. If you find yourself near the end of the plan year with extra money, you can also claim mileage reimbursement for your medical appointments. Since your FSA has a history of those, it is easy to calculate your mileage from your home to the DR's office and submit a claim.",
"title": ""
},
{
"docid": "5dc1692967e15601951b68dfe4ad8c44",
"text": "\"So after a great deal of clarification, it appears that your question is how to adjust your withholding such that you'll have neither a refund, or a balance due, when you do your 2016 taxes next year. First, a little terminology. The more you have withheld, the more money will be taken out of your check to cover your estimated tax liability. Confusingly, the more allowances you select on your W-4, the less money you will have withheld (more allowances means more dependents/deductions/other reasons why you will owe less tax). When you go to file your 2015 tax return next year, you'll figure out exactly how much you owe. If you had too little tax withheld, you'll have to pay the difference. If you had too much tax withheld, you'll get a refund back. Given your situation, simply following the instructions on the W-4 should work pretty well. If you want to be more precise, you can use the IRS Withholding Calculator to figure the number of allowances and submit a new W-4 to your employer. It's a little hard to tell whether \"\"paying this much/year in taxes seem steep?\"\" because you've lumped all the taxes together in one big bucket. Does the $543.61 in taxes per paycheck include Social Security (OASDI) and Medicare taxes? Whatever you do, it's not going to be an exact science. Come tax time, you'll figure out exactly what you owe and either pay the balance or get a refund back. As long as you're relatively close, that's fine. You can always adjust your withholding again next year after you've done your taxes.\"",
"title": ""
},
{
"docid": "c2e80c349518ee93dd52768ec917fa84",
"text": "I would take each of these items and any others and consider how you would count it as an expense in the other direction. If you have an account for parking expenses or general transportation funds, credit that account for a refund on your parking. If you have an account for expenses on technology purchases, you would credit that account if you sell a piece of equipment as you replace it with an upgrade. If you lost money (perhaps in a jacket) how would you account for the cash that is lost? Whatever account would would subtract from put a credit for cash found.",
"title": ""
},
{
"docid": "ef082fd9f0274dc21b86a1c9cf21dd9b",
"text": "I think you might benefit from adopting a zero-sum budget, in which you plan where each dollar will be spent ahead of time, rather than simply track spending or worry about the next expense. Here's a pretty good article on the subject: How and Why to Use a Zero-Sum Budget. This is the philosophy behind a popular budgeting tool You Need a Budget, I am not advocating the tool, but I am a fan of the idea that a budget is less about tracking spending and more about planning spending. That said, to answer your specific question, one method for tracking your min-needed for upcoming expenses would be to record the date, expense, amount due, and amount paid as shown here: Then the formula to calculate the min-needed (entered in E1 and copied down) would be: As you populate amounts paid, the MinNeeded is adjusted for all subsequent rows. You could get fancier and only populate the MinNeeded field on dates where an expense is due using IF().",
"title": ""
}
] |
fiqa
|
62c4c43bb44243abe04954ac00ec0d79
|
Loan holder wants a check from the insurance company that I already cashed and used to repair my car
|
[
{
"docid": "c2b853fe46b7cbb9694b08f72eb9668b",
"text": "What would happen if you was to cash a check, didn’t realize it was to you and your finance company, take it to a local business that has a money center, they cash the check without even having you sign let alone having the finance companies endorsement on it . The money cleared my account like a couple months ago and it was just brought up now .. ? The reason why the check was made out the owner and the lender is to make sure the repairs were done on the car. The lender wants to make sure that their investment is protected. For example: you get a six year loan on a new car. In the second year you get hit by another driver. The damage estimate is $1,000, and you decide it doesn't look that bad, so you decide to skip the repair and spend the money on paying off debts. What you don't know is that if they had done the repair they would have found hidden damage and the repair would have cost $3,000 and would have been covered by the other persons insurance. Jump ahead 2 years, the rust from the skipped repair causes other issues. Now it will cost $5,000 to fix. The insurance won't cover it, and now a car with an outstanding loan balance of $4,000 and a value of $10,000 if the damage didn't exist needs $5,000 to fix. The lender wants the repairs done. They would have not signed the check before seeing the proof the repairs were done to their satisfaction. But because the check was cashed without their involvement they will be looking for a detailed receipt showing that all the work was done. They may require that the repair be done at a certified repair shop with manufacturer parts. If you don't have a detailed bill ask the repair shop for a copy of the original one.",
"title": ""
},
{
"docid": "288030820e1d78decd491525378e6253",
"text": "\"There are at least three financial institutions involved here: your insurance company's bank, the money center, and your bank. Normally, they would keep records, but given that the money center didn't even ask for your signature, \"\"normal\"\" probably doesn't apply to them. Still, you can still ask them what records they have, in addition to the other two institutions; the company's bank and your bank likely have copies of the check.\"",
"title": ""
}
] |
[
{
"docid": "1c01afc09e76ab8b35f9a22b07cd6bb8",
"text": "You keep a copy of the dashed check, and tell him to pound sand. If he contacts you again, you tell him that you will charge him with fraud. By accepting the check and cashing it, he acknowledged the debt is paid.",
"title": ""
},
{
"docid": "ec5f508e7f500cdad2d26fd1adf49a37",
"text": "Deposit check and send a personal check (resulting in tax and IRS reporting issues) That's a bad idea, unless maybe the check you're receiving is a certified bank draft. Suppose the insurance company are crooks and the check is fraudulent. It could take weeks or months for some investigation to catch up to that, long after your own personal check was cashed by the pharmacy. The bank will then put you on hook for the 20 grand by reversing the check, even though the funds had been deposited into your account. Do not put yourself into the position of a money handler; you don't have the cash base, insurance, government protection and whatever else that a bank has. And, of course, you're being a free money handler if you do that. (You're not even compensated for postage, time and whatnot). If you're handling money between two parties, you should collect a percentage, or else refuse. That percentage has to be in proportion to the risk, since cashing a check for someone carries a risk similar to (and is effectively a form of) making a loan.",
"title": ""
},
{
"docid": "a3b002ea82cb6beda3efb0966543bceb",
"text": "Maybe there's more to this story, because as written, your sister seems, well, a little irrational. Is it possible that the bank will try to cheat you and demand that you pay a loan again that you've already paid off? Or maybe not deliberately cheat you, but make a mistake and lose track of the fact that you paid? Sure, it's POSSIBLE. But if you're going to agonize about that, what about all the other possible ways that someone could cheat you? What if you go to a store, hand over your cash for the purchase, and then the clerk insists that you never gave him any cash? What if you buy a car and it turns out to be stolen? What if you buy insurance and when you have a claim the insurance company refuses to pay? What if someone you've never met or even heard of before suddenly claims that you are the father of her baby and demands child support? Etc etc. Realistically, banks are fanatical about record-keeping. Their business is pretty much all about record-keeping. Mistakes like this are very rare. And a big business like a bank is unlikely to blatantly cheat you. They can and do make millions of dollars legally. Why should they break the law and risk paying huge fines and going to prison for a few hundred dollars? They may give you a lousy deal, like charge you outrageous overdraft fees and pay piddling interest on your deposit, but they're not going to lie about how much you owe. They just don't. I suggest that you not live your life in fear of all the might-be's. Take reasonable steps to protect yourself and get on with it. Read contracts before you sign, even if the other person gets impatient while you sit there reading. ESPECIALLY if the other person insists that you sign without reading. When you pay off a loan, you should get a piece of paper from the bank saying the loan has been paid. Stuff this piece of paper in a filing cabinet and keep it for years and years. Get a copy of your credit report periodically and make sure that there are no errors on it, like incorrect loan balances. I check mine once every year or two. Some people advise checking it every couple of months. It all depends how nervous you are and how much time you want to spend on it. Then get on with your life. Has your sister had some bad experience with loans in the past? Or has she never borrowed money and she's just confused about how it works? That's why I wonder if there's more to the story, if there's some basis for her fears.",
"title": ""
},
{
"docid": "4e67a63703b2ce3423d76eebfd689f7b",
"text": "The bottom line is something in your story is not adding up. You had two checks one that is voided, and one that is not. Lets say they are both written against your account for $100. Lets also assume that have exactly $100 in your account. You give the Liquor Store the voided one, they give you $100, but when they attempt to cash the check at their bank they are denied and assessed a $20 fee. You spend the $100 they gave you; however, you still should have $100 in your account as the check was not cashed. You want to make things right with the liquor store. You should be able to withdraw the $100 you still have in the bank and give them that much. While they will still be out the $20 fee, that should make them feel much better about you as a customer. Tell them when you will be paid and that you will give them the $20 on that date. Then do so. The only way this problem is not solvable is that you spent the $100 that was left in the bank. In that case, the Liquor store is correct you stole the money. More accurately you spent money that wasn't yours.",
"title": ""
},
{
"docid": "fead8f98ed7a8b1a30d538c22cbaed24",
"text": "If the check is written as a check to BigCo, it is less clear how Jack can compensate himself for the equity sale. It is as if the equity was owned by the corporation, not by Jack. This is correct. If the check is written to BigCo, then it is BigCo issuing new shares. Jack doesn't compensate himself for the equity sale, as he didn't sell anything. The company traded shares for money which it uses for expansion. In the long term, the capital gain from expansion may exceed the value of a $200,000 no-interest loan to the company. If the value of the company before investing $250,000 is $1 million, then the value after investing is $1.25 million. So $250,000 is 20% of the value of the company. BigCo should not give the buyer 25% of BigCo but only 20% in that example. If it does give 25%, the buyer is getting a $312,500 stake for only $250,000. With the other example, Jack sells 25% of the company for $250,000 from his personal shares. This doesn't change the assessed value of the company, just Jack's stake. Jack then loans the company $200,000. This also doesn't change the assessed value of the company (at least in theory). It gains $200,000 but has an offsetting debt of $200,000. In net, that's no change. Assets and liabilities balance the same. So if you know that the assessed value of the company is $1 million and that the buyer is paying $250,000 for a 25% stake at that same valuation, then you know that the check is being written to Jack. If the check is written to BigCo, then one or more of those numbers is incorrect. The buyer could be getting a 20% stake. The new value of the company after the investment is $1.25 million. Or paying $333,333.33. The new value of the company after the investment is $1,333,333.33. Or BigCo could only be worth $750,000 before the investment. The new value of the company after the investment is $1 million. Or Jack is getting screwed, selling $312,500 in stock (25%) for only $250,000. Jack's shares drop from being worth $1 million to only $937,500. The value of the company is $1.25 million. Or some combination of smaller changes that balances.",
"title": ""
},
{
"docid": "f0b4a5e9f610b86c5589d5f91ab6dd00",
"text": "I would always presume that given a choice of doing what is in its own self interest verses in the customer's interest, a bank will ALWAYS do the former rather than the latter. Banks are in the business of making money, always presume that their policies, processes and contractual terms will be slanted to maximize their ability to make money. It's not being evil or anything, it's just business, they are under no obligation to be altruistic or do what's best for you at the expense of their profits. So, especially since it's not exactly a hardship, I would always make extra principal payments using a separate check and clearly mark it as an extra principal payment.",
"title": ""
},
{
"docid": "d487a8502eeadadc305ab93aaad0c5fb",
"text": "\"this is a bit unusual, but not unheard of. i have known more than one car whose owner was not its driver. besides the obvious risk that the legal owner of the car will repossess it, this seems fairly safe. your insurance should cover any financial liability that you incur during an accident. even if the car is repossessed by the owner, you are only out the registration fees. i would suggest you avoid looking this gift horse in the grill. her father on the other hand might be in for some drama and financial mess if he has a falling-out with his \"\"friend\"\". this arrangement reminds me of divorces where one spouse owns the car, but the other drives it and pays the loan. usually, when the relationship goes south, one spouse is forced to sell the car at a loss.\"",
"title": ""
},
{
"docid": "f8a3b86208adcc243e3092e47447862d",
"text": "It seems like there are a few different things going on here because there are multiple parties involved with different interests. The car loan almost surely has the car itself as collateral, so, if you stop paying, the bank can claim the car to cover their costs. Since your car is now totaled, however, that collateral is essentially gone and your loan is probably effectively dead already. The bank isn't going let you keep the money against a totaled car. I suspect this is what the adjuster meant when he said you cannot keep the car because of the loan. The insurance company sounds like they're going to pay the claim, but once they pay on a totaled car, they own it. They have some plan for how they recover partial costs from the wreck. That may or may not allow you (or anyone else) to buy it from them. For example, they might have some bulk sale deal with a salvage company that doesn't allow them to sell back to you, they may have liability issues with selling a wrecked car, etc. Whatever is going on here should be separate from your loan and related to the business model of your insurance company. If you do have an option to buy the car back, it will almost surely be viewed as a new purchase by the insurances company and your lender, as if you bought a different car in similar condition.",
"title": ""
},
{
"docid": "25c80accc613ec73f5527afe291d030d",
"text": "\"The wording of this question is very confusing because \"\"primary signer\"\" would, in ordinary parlance, mean the person borrowing the money and the co-signer (not consigner) would mean the one who is guaranteeing the repayment of the loan: if the borrower does not pay, the co-signer is liable for making the payments. Whose name is on the title of the car? Who borrowed the money to buy the car? Is the loan in your name and your son co-signed the loan to induce the bank to loan you money to purchase the car, or is it the other way around, that your son borrowed the money and you co-signed the loan in order to induce the bank to loan your son the money? If the car title and the loan are in your name, are you defaulting on the loan and so your son is making the loan payments that should have come from you? Or is it that your son borrowed the money to buy the car, his name is on the title, he is making the payments, and you are no longer interested in backing him up in case he defaults and the bank comes after you for the money?\"",
"title": ""
},
{
"docid": "f3d1d1655a87ac529a48a251da092425",
"text": "It's always hard to know the exact policy terms, but as a general rule there are two main contributions to insurance payouts. The first part covers expenses aimed at restoring the situation to its previous state pre-incident. This may include repair work and materials etcetera. The second part kicks in when it's not reasonably possible to repair the damage, or at least not in a financially efficient way. In this case, the insurer can decide to pay out the decrease in value. This is in fact very common in car accidents, where the car is a total loss. In your case, it's quite possible that your roof, even with the two partial repairs is in a worse condition than it was before the storm. For instance, the new shingles may not match the old ones exactly. Thus the value of your home has decreased despite the reasonable repair attempt. And as mhoran_psprep points out, there can be hidden damage as well, which is a lurking liability. If you've accepted the cash payment in lieu of a full repair, you also accept the roof in its new condition.",
"title": ""
},
{
"docid": "85a8fa3ea0118924eac2c26224b0fb5d",
"text": "\"I believe the banks are protecting themselves when they \"\"require\"\" your endorsement. Years ago. they used to ask for your endorsement, and not require it. If you endorse the check, it legally authorizes them to debit your account, if the check is later returned for non-sufficient funds (NSF). It mostly protects the bank, and not the customer.\"",
"title": ""
},
{
"docid": "a60720b47aafa8386b9d4ed668e79f7d",
"text": "Once the loan is taken out, Chase would turn around and sell that debt to others, getting all their money upfront and leaving both the person who took the loan out and the new creditor holding the bag. I worked for a company that used to do this with loans for other things. They company was Norvergence and were complete scumbags.",
"title": ""
},
{
"docid": "6310dbec1ab597db9aca681d5fd8f759",
"text": "There are many situations where injecting a certain amount of cash at the right time may reap rewards far in excess of the value of the cash injected. For example, if someone who needs a car to get to work gets in a wreck and that person does not have ready money to make it driveable may have no choice but to secure very expensive financing. Receipt of $1000 in ready money to repair the car may thus save the person from having to take out a loan that would cost $1200 or more to repay. While the insurance business has sufficient overhead that it is unlikely that insurance would generally have a positive net expectation even considering such factors, it is at least theoretically possible that insurance could have a positive expected value for both the insurer and the insured (and in some cases it may have positive expected values for both parties in practice as well).",
"title": ""
},
{
"docid": "0614273d91d85965c4ba9eaaef0c1251",
"text": "Adding international bonds to an individual investor's portfolio is a controversial subject. On top of the standard risks of bonds you are adding country specific risk, currency risk and diversifying your individual company risk. In theory many of these risks should be rewarded but the data are noisy at best and adding risk like developed currency risk may not be rewarded at all. Also, most of the risk and diversification mentioned above are already added by international stocks. Depending on your home country adding international or emerging market stock etfs only add a few extra bps of fees while international bond etfs can add 30-100bps of fees over their domestic versions. This is a fairly high bar for adding this type of diversification. US bonds for foreign investors are a possible exception to the high fees though the government's bonds yield little. If your home currency (or currency union) does not have a deep bond market and/or bonds make up most of your portfolio it is probably worth diversifying a chunk of your bond exposure internationally. Otherwise, you can get most of the diversification much more cheaply by just using international stocks.",
"title": ""
},
{
"docid": "543395b6c5dbdc511847193242123450",
"text": "\"... interest rates will go up. When that happens prices will be kept down. (if you can only afford $1,500/month payments and the interest portion of the mortgage goes up then you have less to spend on the house) There are also millions of houses that are foreclosed or in some process of foreclosure that are being kept off the market. That \"\"shadow inventory\"\" being kept off the market is keeping supply artificially low. At some point the shadow inventory will be brought to market and as supply increases it will hold prices down. ... [housing prices could drop another 20% or more](http://online.wsj.com/article/SB10001424052702304299304577348083297932466.html)... and it could take a decde or more before the housing market works through the effects of the great recession. btw, I just refinanced again. It was easier this time than any of the other times I've refinanced. This time I got 2.875% for 10 years... I'll save over 20 grand of interest over the next 10 years. The banks are loaning money out, and at incredibly low interest rates.\"",
"title": ""
}
] |
fiqa
|
eae76d0c8dd5554133eea082f629e2aa
|
Is a 10 year old uncashed paycheck still good?
|
[
{
"docid": "536ccae68d4f08d18c19a5b3116b231e",
"text": "You probably can't deposit the check directly, but there are mechanisms in place to get your money through other means. In the US, all states and territories have an unclaimed property registry. Before you contact the company that wrote the check, you should check that registry in your state. You will have to provide proof that you are the intended recipient, having the original check in your possession should make that considerably easier.",
"title": ""
}
] |
[
{
"docid": "1aac6eba5fa292c4d798a14ff58e8758",
"text": "\"When I deposit my paycheck in CapOne I have an email before I am out of the app that they received my check. I have access to some portion of the cash now and the rest the next business day, however they put things in order to NOT overdraft me. For instance, if I am overdrawn $150 but the charge is \"\"pending\"\", putting the check in they will deposit the check before posting the charge that would overdraft me. Plus I can use Apple Pay with it. My local CUs have app deposit, but it takes DAYS for a deposit to just show up. Plus, no Apple Pay.\"",
"title": ""
},
{
"docid": "cc474ce0b6da72284e212c48ff2a1bb0",
"text": "\"If you're not getting pay stubs showing withholding then you're working \"\"under the table\"\", which (a) is illegal, (b) is a deal for the employer because they don't have to pay any of the employment taxes including their share of your SocSec and (c) is screwing you because you'll still need to pay taxes on every dime they pay your but won't have anything set aside for it unless you're doing that yourself. Which I'm guessing you're not. Call the local labor board or whatever.\"",
"title": ""
},
{
"docid": "e7dd34a5589a65d6d560800040ad42f7",
"text": "\"I disagree with @Sam's answers: yes you will get that money back when your tax return is processed. This is not true. You will receive funds that are in excess of your liability (contrary to popular belief, the government does not take more than what you are liable for). \"\"is it possible to return the check and modify how it's calculated if I talk to payroll?\"\" No. When you sign your documents at the beginning of the year, that will dictate the amount of liability they take from each of your paychecks. \"\"Will this difference be given back in my next tax return\"\" Because your company is withdrawing 25% on your paycheck you may/or may not need to pay more depending on the rest of your salary. The IRS has set the system up as brackets. You pay your taxes based on the amount earned (voluntarily or involuntarily). So if you have income of $9,275 you would pay $923 in taxes at a marginal rate of 10% (and average rate of 10%). If you made $10,000, you would pay $923+$109=$1,032 with your marginal rate as 15% (while your average rate is 10.31%). All in all, this is dependent on your salary, filing, and other deductions to raise or lower your tax liability. Note: The $109 came from this: [(10,000-9,275)*.15]\"",
"title": ""
},
{
"docid": "6c6227709c0c9fb4516bfb31f0e45aef",
"text": "I can't immediately think of a reason to keep your paycheck and spending account separate, unless it be because you want to keep your savings in a money market or savings account and you deposit your paycheck into a checking account. However, I do have one reason from my experience to keep the bulk of your savings away from accounts that you transfer stuff out of. I used to keep all my cash savings in an account from which I transferred money into my brokerage account (my paycheck was also deposited there). A couple of years back a state that I haven't lived in since I was a child took $40,000 out of my account. The broker mistakenly told the state I lived there and the state made some mistakes about how much tax I would owe. Without either one telling me, the state helped themselves to my checking account to cover the bill. When I called, both acknowledged that they were wrong, but it still took a long time (many months) and lots of letters and threats (I was close to paying a lawyer) before they returned my money. It was worse because this was my savings for a down payment on a home and having it taken and not returned affected my ability to buy the house I wanted. If I hadn't had my money in that account, they would have tried to garnish my wages, and would have immediately stopped their attempt once they found out they were in the wrong. Now I keep cash savings in an account that I never pay taxes out of and do not use to transfer money directly to any broker or anyone who might give my account number to an inept government.",
"title": ""
},
{
"docid": "e1616d8bf5ea75501f47408abdac52ee",
"text": "\"Although my kid just turned 5, he's learning the value of money now, which should help him in the future. First thing, teach him that you exchange money for goods and services. Let him see the bills, and explain what they're for (i.e. \"\"I pay ISP Co to give us Internet; that lets us watch Youtube and Netflix, as well as play games with Grandma on your GameStation\"\"). After a little while, they will see where it goes, and why. Then you have your automatic bills, such as mortgage payments. I make a habit of taking out the cash after I get paid, and my son comes with me to the bank where I deposit it again (I get paid monthly, so it's only one extra withdraw). He can physically see the money, and understand that if the stack is gone, it's gone. Now that he is understanding things cost money, he wants to make money himself. He volunteers to help clean up the kitchen and vacuum rooms in the house, usually without being asked. I give him a dollar or two for the simple chores like that. Things like cleaning his room or his own mess, he does not get paid for. He puts all his money into his piggy bank, and he has some goals in mind: a big fire truck, a police helicopter, a pool, a monster truck, a boat. Remember he's only 5. He has his goals, and we have the money he's been saving up. We calculate how many times he needs to vacuum the living room, or clean up dishes, to get there, and he realizes it takes a long time. He looks for other ways to make money around the house, and we come up with solutions together. I am hoping in a year or two that I can show him my investments and get him to understand why they make or lose money. I want to get him in to the habit of investing a little bit every few months, then every month, to help his income grow, even if he can't touch the money quite yet.\"",
"title": ""
},
{
"docid": "8e464172e7f74d337e511ec0d5a64b47",
"text": "For a more philosophical way to approach this, consider money saved as the opposite of money owed: This philosophy works for things which you may be able to borrow for (computer, car, house), but also for things you can't borrow for (retirement, giving to your kids, etc.). As others have mentioned, the 10% suggestion is for retirement, but the actual number depends on your lifestyle. As you can see in this chart, saving 10% of your income means you'll need to work for 51.4 years.",
"title": ""
},
{
"docid": "5dc10522b67ce00ee6ecb2c628f3f768",
"text": "If you have the ability to pay online with a guaranteed date for the transaction, go for it. My bank will let me pay a bill on the exact date i choose. When using the mail, of course, this introduces a level of risk. I asked about rates as the US currently has a near zero short term rate. At 3.6%, $10,000, this is $30/month or $1/day you save by delaying. Not huge, but better in your pocket than the bank's.",
"title": ""
},
{
"docid": "9f8ad9289a35eb13b3bf465dd2e97593",
"text": "\"I would start by taking it to your bank and asking them what they think. They can probably call the bank on the check and find out if it is still good. If they let you deposit the check, I would wait a couple of weeks before spending the money, in case the issuing bank decides that the check is no good, and your bank wants its money back. If you are told that the check is not good anymore, the next thing I would do is to check with your state's treasurer's office and see if they have any \"\"unclaimed money\"\" for your mother.\"",
"title": ""
},
{
"docid": "e1988decd597df5e5c8da76f0e85f329",
"text": "With interest rates as low as they are, you could lock in to a very low rate for 30 years. If rates are higher in, say, 10 years, you could conceivably be earning a much higher rate on the money you're not putting towards monthly payments. All else equal, the payments will be lower on a 30y than they will be on a 10y, so you'll have more cash for other things. But I'm just looking for downsides -- being paid off in 10 years versus 30 sounds nice to me.",
"title": ""
},
{
"docid": "15a4a36ca9115c7c592c71c45a605560",
"text": "\"Just speaking from my experience here. When I was younger (lol only 23 now), I didn't really get pocket money. If I wanted something I had to work for this, luckily at 13 I scored a paper round gaining £10 per week. I would personally say to encourage children to do some \"\"work\"\", whether its a paper round, or even just house chores. I learned early on, that to get money you have to work for it. I've always had a job since 13, most of my college years I held 2 jobs at a time, even 3 at 1 point. Many of my friends didn't work for their pocket money, they relied on handouts, quite a few of these friends have later on in life taken the easy route, not working and rely on state (pocket money), or still have mummy and daddy pay for everything So my moral is; don't just give out willy-nilly, teach some value to money and it will go a long way ;) /2 cents\"",
"title": ""
},
{
"docid": "cf3a4bab16977704f1a3299b25acb869",
"text": "If 10K is all of your savings, I would reserve a portion for an emergency fund for your car and other life situations before spending it all on a car. Maybe this means you set 3k aside and buy a 7k car.",
"title": ""
},
{
"docid": "cb3ecfb14beec853e9a1bf84bf19d800",
"text": "If you set a savings amount now and leave it totally fixed you're likely to massively undershoot or overshoot. What is more likely is that you will adjust either your savings or your retirement expectations as things go along. If it turns out you have $10M (2010 dollars) at age 50 perhaps you'll retire early, and if you have $10k perhaps you'll buckle down and work much longer or save much more. So I think what you are looking for is an assurance that if you budget to save x% of your salary over n years, and you get an after-inflation after-tax return of y% pa, you will eventually be able to retire on an income equivalent to z% of your working income. It's pretty easy to calculate that through a future-value formula. For instance, one set of values that works is saving 20% of income, 5% real return, 30 years = final income of 66% of working income. Or save half your income and within 14 years you can retire and keep spending the amount you were previously spending. Resist the temptation to crank up the assumed return until you get the value you want. I think it would be great hubris to try to make this very precise. Yes, probably you will get raises, of course there are taxes to take into account (probably higher while you're saving), inflation and returns will vary from year to year, et. You can guess at them. But they'll change, and there are bigger things that are unpredictable: your personal life, your health, the economic future of your career or industry. I reckon this simple formula is about as good as you will get.",
"title": ""
},
{
"docid": "c9bba64387bc286a5f6e57bdb56f95c6",
"text": "\"Also, in (5), is it considered unpaid wages? Because that's pretty high on the bankruptcy hierarchy. No. It is near the bottom, in with unsecured debt. If you have access to the plan documents, see if the plan has the phrase \"\"rabbi trust\"\" anywhere in it. This means that the money is not kept comingled with the corporation's regular accounts, but is rather deposited with a financial institution (such as Fidelity).\"",
"title": ""
},
{
"docid": "de3465af8fb591518d665a2084219520",
"text": "One's paycheck typically has a YTD (year to date) number that will end on the latest check of the year. I am paid bi-weekly, and my first 2012 check was for work 12/25 - 1/7. So, for my own balance sheet, brokerage statements and stock valuations end 12/31, but my pay ended 12/24. And then a new sheet starts.",
"title": ""
},
{
"docid": "4b2c3fb6b0acfe156e828ef4e037b3c7",
"text": "What? My last room mate was a teller, and I can tell you this isn't the case. If you're given a bad payroll cheque or a bounced cheque the bank will know before its transferred. If payroll bounces find a new job because you're fucked. If you're working for a company that makes over 1 million a year, they can issue paper cheques but choose not too for whatever reason.",
"title": ""
}
] |
fiqa
|
778880460cd5e9ed7c204b185ecbfd80
|
I started some small businesses but need help figuring out taxes. Should I hire a CPA?
|
[
{
"docid": "cafb2ea99a976ce5bbf5241c05227ca4",
"text": "The only professional designations for people allowed to provide tax advice are Attorney, EA or CPA. Attorney and CPA must be licensed in the State they practice in, EA's are licensed by the Federal government. Tax preparers are not allowed to provide any tax advice, unless they hold any of these designations. They are only allowed to prepare your tax forms for you. So no, tax preparer is not a solution. Yes, you need to talk to a tax adviser (EA/CPA licensed in your State, you probably don't need a tax attorney). You should do that before you start earning money - so that you can plan properly and understand what expenses you can incur and how they're handled with regards to your future income tax payments. You might also want to consider a bookkeeping service (many EA/CPA offices offer the bookkeeping as well). But that you can also do yourself, not all that complicated if you don't have tons of transactions and accounts.",
"title": ""
},
{
"docid": "77eace4c4744e927720c62b309b3214e",
"text": "Certainly sounds worthwhile to get a CPA to help you with setting up the books properly and learning to maintain them, even if you do it yourself thereafter. What's your own time worth?",
"title": ""
}
] |
[
{
"docid": "11fb8e7e63dd941dffe0099876b5abc8",
"text": "If the money comes to you, then it's income. If the money goes out from you, it's an expense. You get to handle the appropriate tax documentation for those business transactions. You may also have the pleasure of filing 1099-MISC forms for all of your blogging buddies if you've paid them more than $600. (Not 100% sure on this one.) I was in a blog network that had some advertising deals, and we tried to keep the payments separate because it was cleaner that way. If I were you, I'd always charge a finder's fee because it is extra work for you to do what you're doing.",
"title": ""
},
{
"docid": "0eee29beb739a8a8abb87eff51649618",
"text": "Since you say 1099, I'll assume it's in the US. :) Think of your consulting operation as a small business. Businesses are only taxed on their profits, not their revenues. So you should only be paying tax on the $700 in the example you gave. Note, though, that you need to be sure the IRS thinks you're a small business. Having a separate bank account for the business, filing for a business license with your local city/state, etc are all things that help make the case that you're running a business. Of course, the costs of doing all those things are business expenses, and thus things you can deduct from that $1000 in revenue at tax time.",
"title": ""
},
{
"docid": "b503f93f2bba3a26a5739b580ef4702f",
"text": "\"This is not an end-all answer but it'll get you started I have been through accounting courses in college as well as worked as a contractor (files as sole proprietor) for a few years but IANAA (I am not an accountant). Following @MasonWheeler's answer, if you're making that much money you should hire a bean counter to at least overlook your bookkeeping. What type of business? First, if you're the sole owner of the business you will most likely file as a sole proprietorship. If you don't have an official business entity, you should get it registered officially asap, and file under that name. The problem with sole proprietorships is liability. If you get sued, not only are your business' assets vulnerable but they can go after your personal assets too (including house/cars/etc). Legally, you and your business are considered one and the same. To avoid liability issues, you could setup a S corporation. Basically, the business is considered it's own entity and legal matters can only take as much as the business owns. You gain more protection but if you don't explicitly keep your business finances separate from your personal finances, you can get into a lot of trouble. Also, corporations generally pay out more in taxes. Technically, since the business is it's own entity you'll need to pay yourself a 'reasonable salary'. If you skip the salary and pay yourself the profits directly (ie evade being taxed on income/salary) the IRS will shut you down (that's one of the leading causes of corporations being shut down). You can also pay distribute bonuses on top of that but it would be wise to burn the words 'within reason' into your memory first. The tax man gets mad if you short him on payroll taxes. S corporations are complicated, if you go that route definitely seek help from an accountant. Bookkeeping If you're not willing to pay a full time accountant you'll need to do a lot of studying about how this works. Generally, even if you have a sole proprietorship it's best to have a separate bank account for all of your business transactions. Every source/drain of money will fall into one of 3 categories... Assets - What your business owns: Assets can be categorized by liquidity. Meaning how fast you can transform them directly into cash. Just because a company is worth a lot doesn't necessarily mean it has a lot of cash. Some assets depreciate (lose value over time) whereas some are very hard to transform back into cash based on the value and/or market fluctuations (like property). Liabilities - What you owe others and what others owe you: Everything you owe and everything that is owed to you gets tracked. Just like credit cards, it's completely possible to owe more than you own as long as you can pay the interest to maintain the loans. Equity - the net worth of the company: The approach they commonly teach in schools is called double-entry bookkeeping where they use the equation: In practice I prefer the following because it makes more sense: Basically, if you account for everything correctly both sides of the equation should match up. If you choose to go the sole proprietorship route, it's smart to track everything I've mentioned above but you can choose to keep things simple by just looking at your Equity. Equity, the heart of your business... Basically, every transaction you make having to do with your business can be simplified down to debits (money/value) increasing and credits (money/value) decreasing. For a very simple company you can assess this by looking at net profits. Which can be calculated with: Revenues, are made up of money earned by services performed and goods sold. Expenses are made up of operating costs, materials, payroll, consumables, interest on liabilities, etc. Basically, if you brought in 250K but it cost you 100K to make that happen, you've made 150K for the year in profit. So, for your taxes you can count up all the money you've made (Revenues), subtract all of the money you've paid out (Expenses) and you'll know how much profit you've made. The profit is what you pay taxes on. The kicker is, there are gray areas when it comes to deducting expenses. For instance, you can deduct the expense of using your car for business but you need to keep a log and can only expense the miles you traveled explicitly for business. Same goes for deducting dedicated workspaces in your house. Basically, do the research if you're not 100% sure about a deduction. If you don't keep detailed books and try to expense stuff without proof, you can get in trouble if the IRS comes knocking. There are always mythical stories about 'that one guy' who wrote off his boat on his taxes but in reality, you can go to jail for tax fraud if you do that. It comes down to this. At the end of the year, if your business took in a ton of money you'll owe a lot in taxes. The better you can justify your expenses, the more you can reduce that debt. One last thing. You'll also have to pay your personal federal/state taxes (including self-employment tax). That means medicare/social security, etc. If this is your first foray into self-employment you're probably not familiar with the fact that 1099 employers pick up 1/2 of the 15% medicare/social security bill. Typically, if you have an idea of what you make annually, you should be paying this out throughout the year. My pay as a contractor was always erratic so I usually paid it out once/twice a year. It's better to pay too much than too little because the gov't will give you back the money you overpaid. At the end of the day, paying taxed sucks more if you're self-employed but it balances out because you can make a lot more money. If as you said, you've broken six figures, hire a damn accountant/adviser to help you out and start reading. When people say, \"\"a business degree will help you advance in any field,\"\" it's subjects like accounting are core requirements to become a business undergrad. If you don't have time for more school and don't want to pay somebody else to take care of it, there's plenty of written material to learn it on your own. It's not rocket surgery, just basic arithmetic and a lot of business jargon (ie almost as much as technology).\"",
"title": ""
},
{
"docid": "986c9acc7c40e3a524b8ef9cff81fbe9",
"text": "I just scanned in a single sheet summary of my last two years tax returns. It is something our CPA does for us. How would I post it? Don't worry, I marked out all the personal information. What is says is I paid over $50K in taxes in 2015. Last year we had one of our biggest contracts put on hold, so I only paid $20K. I won't have this years figures, because we don't submit them to our CPA until the end of the year. However, this year, we just bought out two other owners at $1.2M, which makes me a 33% owner. The contract is getting restarted (knock on wood), which all together means my personal tax liability is going to be well over $100K. My company is a commercial company, but we work with the government, and matter of fact some of the stuff we produce was designed and developed by the government (as is many of today's modern inventions - I think you would be surprised). So lets tackle it one at a time. Pick one of those things that commercial does better than government. P.s. Higher taxes doesn't mean higher for you, a lot of times it means higher for guys like me or way better than me (which I am perfectly fine with, and matter of fact would support). People who use infastructure more - like large corporations - should pay more for it...",
"title": ""
},
{
"docid": "5ba0cb041b117b851d8df5e141460b0b",
"text": "Yep, you need to hire a lawyer and an accountant, honestly. When I was starting my business, I hired one who was BOTH. Not really for cost-savings, though it did save $$$, but it was super convenient and it's nice to have someone knowledgable in both. It totally depends on your area, but don't overthink it or get intimidated. It won't take as much $$$ as you think to hire someone, maybe $500-$1,000 or so upfront, then a small hourly fee probably every month if you need help with sales tax or accounts or whatever... you need to make sure the gov is getting theirs though from day 1 re: taxes, otherwise you're gonna regret it. Much cheaper to get it all in place now.",
"title": ""
},
{
"docid": "90bf0c014b7268f7f6404fa099240da9",
"text": "This may not exactly answer your question but, as a small business owner, I would highly recommend having a professional handle your taxes. It is worth the money to have it done correctly rather than doing something wrong and getting audited or worse having penalties assessed and owing more than you thought would be possible. I would recommend this especially if this is how you make your primary income, you can always write it off as a business expense.",
"title": ""
},
{
"docid": "4a9011e433785e61732b017579a786a1",
"text": "Yes, but make sure you issue a 1099 to these freelancers by 1/31/2016 or you may forfeit your ability to claim the expenses. You will probably need to collect a W-9 from each freelancer but also check with oDesk as they may have the necessary paperwork already in place for this exact reason. Most importantly, consult with a trusted CPA to ensure you are completing all necessary forms correctly and following current IRS rules and regulations. PS - I do this myself for my own business and it's quite simple and straight forward.",
"title": ""
},
{
"docid": "5d86ebab266bf0a5d9f55be7a5222389",
"text": "I am assuming this is USA. While it is a bit of a pain, you are best off to have separate accounts for your business and personal. This way, if it comes to audit, you hand the IRS statements for your business account(s) and they match your return. As a further precaution I would have the card(s) you use for business expenses look different then the ones you use for personal so you don't mess another one up.",
"title": ""
},
{
"docid": "521ca52299c5af07b7cf3157b6a45764",
"text": "\"TL;DR: Get a tax adviser (EA/CPA licensed in your State) for tax issues, and a lawyer for the Operating Agreement, labor law and contract related issues. Some things are not suitable for DIY unless you know exactly what you're doing. We both do freelance work currently just through our personal names. What kind of taxes are we looking into paying into the business (besides setup of everything) compared to being a self proprietor? (I'm seeing that the general answer is no, as long as income is <200k, but not certain). Unless you decide to have your LLC taxed as a corporation, there's no change in taxes. LLC, by default, is a pass-through entity and all income will flow to your respective tax returns. From tax perspective, the LLC will be treated as a partnership. It will file form 1065 to report its income, and allocate the income to the members/partners on schedules K-1 which will be given to you. You'll use the numbers on the K-1 to transfer income allocated to you to your tax returns and pay taxes on that. Being out of state, will she incur more taxes from the money being now filtered through the business? Your employee couldn't care less about your tax problems. She will continue receiving the same salary whether you are a sole proprietor or a LLC, or Corporatoin. What kind of forms are we looking into needing/providing when switching to a LLC from freelance work? Normally we just get 1099's, what would that be now? Your contract counterparts couldn't care less about your tax problems. Unless you are a corporation, people who pay you more than $600 a year must file a 1099. Since you'll be a partnership, you'll need to provide the partnership EIN instead of your own SSN, but that's the only difference. Are LLC's required to pay taxes 4 times per year? We would definitely get an accountant for things, but being as this is side work, there will be times where we choose to not take on clients, which could cause multiple months of no income. Obviously we would save for when we need to pay taxes, but is there a magic number that says \"\"you must now pay four times per year\"\". Unless you choose to tax your LLC as a corporation, LLC will pay no taxes. You will need to make sure you have enough withholding to cover for the additional income, or pay the quarterly estimates. The magic number is $1000. If your withholding+estimates is $1000 less than what your tax liability is, you'll be penalized, unless the total withholding+estimates is more than 100% of your prior year tax liability (or 110%, depending on the amounts). The LLC would be 50% 50%, but that work would not always be that. We will be taking on smaller project through the company, so there will be times where one of us could potentially be making more money. Are we setting ourselves up for disaster if one is payed more than the other while still having equal ownership? Partnerships can be very flexible, and equity split doesn't have to be the same as income, loss or assets split. But, you'll need to have a lawyer draft your operational agreement which will define all these splits and who gets how much in what case. Make sure to cover as much as possible in that agreement in order to avoid problems later.\"",
"title": ""
},
{
"docid": "052cdbc0b5131c019a97ef5aaafb1df6",
"text": "You need to clarify with Bob what your agreement is. If you and Bob are working together on these jobs as partners, you should get a written partnership agreement done by a lawyer who works with software industry entity formation. You can legally be considered a partnership if you are operating a business together, even if there is nothing in writing. The partnership will have its own tax return, and you each will be allocated 50% of the profits/losses (if that's what you agree to). This amount will be reported on your own individual 1040 as self-employment income. Since you have now lost all the expense deductions you would have taken on your Schedule C, and any home office deduction, it's a good idea to put language in the partnership agreement stating that the partnership will reimburse partners for their out-of-pocket expenses. If Bob is just hiring you as a contractor, you give him your SSN, and he issues you a 1099, like any other client. This should be a situation where you invoice him for the amount you are charging. Same thing with Joe - figure out if you're hiring him as an independent contractor, or if you have a partnership. Either way, you will owe income and self-employment tax on your profits. In the case of a partnership, the amount will be on the K-1 from the partnership return. For an independent contractor who's operating as a sole proprietor, you report the income you invoiced for and received, and deduct your expenses, including independent contractors that you hired, on your Schedule C. Talk to your tax guy about quarterly estimated payments. If you don't have a tax guy, go get one. Find somebody people in your city working in your industry recommend. A good tax person will save you more money than they cost. IRS Circular 230 Notice: Please note that any tax advice contained in this communication is not intended to be used, and cannot be used, by anyone to avoid penalties that may be imposed under federal tax law.",
"title": ""
},
{
"docid": "a4e58727a5c4014e2a94305aaf66c17a",
"text": "If the business activities are closely related you could combine them into a single Schedule C, but in your case it sounds like it should be two separate Schedule C's. The loss from one will offset profit from the other, and your self-employment and income taxes will be based on the net of the two businesses. Any business can generate losses, make sure your expenses are reasonable and documented, there are plenty of resources out there for helping you decide which expenses are proper for each business. There is some truth to the warning that not showing profit in 2/5 of years can raise flags at the IRS, and they may deem your business a hobby, which disallows losses. That is not a hard rule, legitimate businesses can lose money for years on end without issue, if you're trying to make money at it, you'll likely be fine.",
"title": ""
},
{
"docid": "c2c9a9969e6b2773320f3dfe7362f70a",
"text": "You actually don't need an accountant. They'll be expensive and at this early a stage unnecessary - what you need is a good bookkeeper who can keep track of what comes in and what goes out. You'll need that to know if you're making money or not and to show the government at the end of the year. Get a copy of QuickBooks and pick up Bookkeeping for Dummies to at least get a sense for what's going on. Have you registered as a sole proprietorship? Make sure you have a vendor's permit so you can legally sell your services in Ontario. You may need to collect HST, in which case you'll need to register for an HST # and submit it on a quarterly basis. Whatever you do, don't fuck with the government - they can freeze your bank accounts to get money they're owed. You need to keep money on hand to pay for any taxes you might owe on the business, ESPECIALLY if it's a sole proprietorship where you'll be tempted to treat profit as income. You don't want to end up with nothing in the bank at the end of the year and $40k owing to the CRA. Get a separate bank account - don't mix personal and business, it's messy. Expense everything you reasonably can.",
"title": ""
},
{
"docid": "da6133a494b25f496cbb955cd65ff21e",
"text": "The first place to look for an accountant is the American Institute of Certified Public Accountants which has a directory of CPAs, accounting companies, and local accounting societies. I was also looking for one for my own small firm. It really helps.",
"title": ""
},
{
"docid": "6d78f4b17c9d6c973abc5b0d6a83d9fb",
"text": "I have had better experiences with accountants in smaller towns. It seems they are used to working with small businesses and their reputation is very important to them.",
"title": ""
},
{
"docid": "9dd31869c4426125f4661274ce6acfe0",
"text": "Confused? see your CPA",
"title": ""
}
] |
fiqa
|
2ce6ca9228eaf766ec5cc9302e7bf830
|
Is Mint allowed to share user data with other Intuit entities?
|
[
{
"docid": "140834c0d9da7e19ef949c4216188ff5",
"text": "I wound up asking Mint over email so I'll share the answer I received: Thank you for contacting Mint.com. From my understand you want to know if Mint can transfer data to other Intuit products and vice versa. Let me address your concern based from what I can see on my tools. Upon confirming, while Mint and other Intuit products are under the same company, Mint.com is not yet integrated to other Intuit products. We’d like to thank you though for giving the idea to us. With this, we would know which future enhancements will our customers appreciate. We have forwarded your request/suggestion to our Product and Development team for their review. At this time though, we can't make any guarantee that your request/suggestion will get implemented as we must balance customer demand with resources and business objectives. Oops...",
"title": ""
}
] |
[
{
"docid": "81a0892a695ba40344a68db23cb8c3a6",
"text": "moneydashboard.com claims to be the UK's Mint but I have problem using it with my HSBC account right now. I have contacted their helpdesk.",
"title": ""
},
{
"docid": "5078f8744206d6ac8df41cff1f094f4e",
"text": "\"Otto, I totally agree with you. That feature would be awesome addition to mint. Have you thought of adding Custom tag called \"\"reviewed\"\" and just mark that to the transaction. Ved\"",
"title": ""
},
{
"docid": "4798cc006c3126a0594e2e93fe22ef11",
"text": "Allowing others to share access to your Bank Account; i.e. giving then the login id and password has its risks;",
"title": ""
},
{
"docid": "ccde069c7755ed62ee56a93b5a2fb5fd",
"text": "I would suggest that you try ClearCheckbook. It is kind of like Mint, but you can add and remove things (graphs, features, modules) to make it as simple or diverse as you need it to be. It should be a workable solution for simply tracking both income and expenses, yet it will also provide extra features as needed. There is a free option as well as a paid option with added features. I have not used ClearCheckbook before, but according to their features page it looks like you may have to upgrade to the paid option if you want to have complete tagging/custom field flexibility.",
"title": ""
},
{
"docid": "1b8aec839c09dcb7999a5de7634ce90b",
"text": "\"We use mint for just that. We have a \"\"shared\"\" account. We each have the mobile app and share the same pin for the application (not our phones -- you can set a pin in the settings on the application). Thus we each share a login to the site, where we have setup all of our accounts. In the \"\"Your Profile\"\" link at the top of the page, you may select the Email & Alerts option. From here you may add a second e-mail account. This way if you go over a budget or have a bill upcoming each of you will get a notification. We have setup budgeting through the web site, and either of us can modify the budget via logging in.\"",
"title": ""
},
{
"docid": "9fb5f84f227bcf9ce8d5c1fe5e39467d",
"text": "\"I added \"\"Shared money in account\"\" (SMIA) as sub-account of my bank checking (CA) account and moved current difference to that account so total of CA was not changed but now private and shared money is separated. My cases would be handled the following The only downside I see is that now my balance in CA transaction log do not match exactly with bank so reconciliation will be slightly harder.\"",
"title": ""
},
{
"docid": "11df2c61d4b972e329f7d49fe185d5b9",
"text": "I am no expert on the situation nor do I pretend to act like one, but, as a business owner, allow me to give you my personal opinion. Option 3 is closest to what you want. Why? Well: This way, you have both the record of everything that was done, and also IRS can see exactly what happened. Another suggestion would be to ask the GnuCash maintainers and community directly. You can have a chat with them on their IRC channel #gnucash, send them an email, maybe find the answer in the documentation or wiki. Popular software apps usually have both support people and a helpful community, so if the above method is in any way inconvenient for you, you can give this one a try. Hope this helps! Robert",
"title": ""
},
{
"docid": "ed212fdfbc12e3eee785a6b795226751",
"text": "A desktop application that has the same features (although as already stated, nothing will be identical but if you are looking for functionality then certainly there will be) and pretty simple to use was Microsoft Money, however, Microsoft stopped supporting it with newer versions and while the existing versions will work, I still use mine, there will be no future updates. I like the interface, its simple to use and has all the features you want. They abandoned it in favor of Intuit's Quicken but personally I am not a fan of the Quicken interface. They still had a more extensive and probably too much for the average user application called Office Accounting, but they abandoned future updates and supports on that in favor of Intuit's Quickbooks. Again, I am not a fan of the interface but they are very feature rich including invoicing and payroll, again overkill for the average user. They still have the Small Business Accounting in the form of Microsoft Dynamics, but that is utterly overkill for personal use. I generally don't trust online or cloud based accounting solutions like Mint or even Quicken online because I don't trust my information security to some third party without knowing how they are securing it and what will happen to me if/when they are leaked due to breach. So I like to keep everything local to myself and that's a good move for you, you should do that. It seems at the moment the market standard without much competition is Quicken for personal use and Quickbooks for small business. I would recommend you start with Quicken and if your needs increase in the future, you can easily transfer into Quickbooks to scale up as they are fully compatible with each other. Check it out here and compare their products to see what works best for your needs.",
"title": ""
},
{
"docid": "46075a828d1727de85ef25c10211b410",
"text": "I don't think Xero Personal does. I have my bank account in there, but since there's no automatic feed for the bank I use I imported it manually. I entered the bank by hand, so I think you could use it without listing a bank account at all.",
"title": ""
},
{
"docid": "597e21c9471be9d66d5d83033d43dfdd",
"text": "Whoops, an obvious one there. So much for audit! We were doing a Basel liquidity report at a bank. One set of numbers in Oracle always balanced with SAP. We were told to use their corrections to apply to the rest. It turns out that they ignored the transactions in Oracle and had loaded the balance sheet data from SAP in Oracle. Of course the data will match!",
"title": ""
},
{
"docid": "b3db2fd1aa8c7f9b4020e369c5924214",
"text": "So could someone working at your bank directly. Of at your HR department at work. Most of the wait staff at the restaurant I ate at technically had access to my credit card and could steal money. While you are at work, someone could break into your house and steal your stuff too. The point is, Mint and everything else is a matter of the evaluating the risk. Since you already understand the vulnerability (they have your accounts) and you know the risk (they could steal your money) what are the chances it happens? 1.) Mint will make lots more money if it doesn't happen, so it benefits Intuit to pay their employees well and put in safeguards to prevent theft. Mint.com is on your side even if a specific employee isn't. 2.) You have statements and such, so you can independently evaluate mint. I do not just trust mint with my stuff, I check info in Quicken and at the bank sites themselves. I don't do them all equally, but I will catch problems. 3.) Laws mean that if theft happens, you will have the opportunity to be made whole. If you are worried about theft, don't trust other people or generally get a bad feeling, don't do it. If you check your accounts online with the same computer you log into Facebook with, them I would suggest it doesn't bother you. You might have legal or business reasons to be more adverse to risk then me. However, just because somebody could steal your money, I personally don't consider it an acceptable risk compared to the reward. I will also be one of the first people to be robbed, I am not unrealistic.",
"title": ""
},
{
"docid": "467c9f97cd54280abe65138f3484d89a",
"text": "\"I've hired a lawyer to make sure all the T's are crossed. - I am not charging my employer for the service. I created a \"\"Free tier\"\" that fits the scale of my employer, and implemented it that way for them. Larger government bodies are paying for the higher tiers. On multiple levels, i've been sure that nothing conflicts with either our purchasing policy, or any written employee policies. - I did 100% of the work on my own time and using my own resources. I was extremely careful to ensure this was the case. There is no clause anywhere in my employment agreement that says the company owns anything I do outside of company time. Believe it or not, this is actually less of an issue for a government body because the government doesn't exist to make a profit from services, and because they are getting an expensive service for free, it's actually a significant net benefit for them. I certainly would be at a significantly higher risk if I was working for a for-profit corporation as they certainly would try to go after me. - I was also careful in how the software was presented. While I agree there is a level of a obfuscation without a doubt, I've confirmed it certainly not a legal issue for the company, nor is it grounds for a lawsuit, and likely not even grounds for termination (although at this point, I don't really care as I have bigger fish to fry)\"",
"title": ""
},
{
"docid": "f16b3a3f6751558d12e59dd8a3f2a041",
"text": "I had a joint account at Chase, and each of us had own on-line login, and could access the account (each of us also had non-joint accounts in Chase, and with the same login we already had we could access the joint accounts, but not the other's non-joint accounts). It seems like your bank is really backwards on this, change the bank. By the way, in joint accounts you have the option of requiring both partners to sign on every document, so that every check or order you write will only be valid with both of your signatures. I don't know if that's what you need, but some may want that (it is quite uncomfortable, IMHO).",
"title": ""
},
{
"docid": "6b316b9df9a23a3168f27e058368574f",
"text": "Whether or not I trust them depends entirely on the personal finance application. In the cases of Mint and Quicken, I would trust both. Always make sure to do plenty of research before submitting any personal information to any source.",
"title": ""
},
{
"docid": "31589514b8b0a6912d32a466d47f31f7",
"text": "Yodlee will also work. I asked a similar question (and provided answers) here. Thrive, so far, is the best in my opinion. Their tech support is top notch and their UI is far superior to Yodlee's (which provides the backend for Mint).",
"title": ""
}
] |
fiqa
|
10cfce2bb7c328ec143b870691d84fbf
|
Financially Shielded Entity Separating Individuals Behind It From Risks
|
[
{
"docid": "92c0079346d0ded3ed163d22572d3b90",
"text": "You are describing a corporation. You can set up a corporation to perform business, but if you were using the money for any personal reasons the courts could Pierce the corporate veil and hold you personally liable. Also, setting up a corporation for purely personal reasons is fraud.",
"title": ""
}
] |
[
{
"docid": "7140611637ffc227408550e614481205",
"text": "As far as I understand, equifax collects data about individuals and scores their credit worthiness. The ceo did Jack shit about keeping all that private data safe, so they got hacked and all that data is now in someone else's hands. The possible implications? Large scale identify fraud of anyone whose details got stolen, since it encompasses everything that is needed for that. And that is besides the privacy violation.",
"title": ""
},
{
"docid": "e92355acba3ddb96731ec6a7848d9c0a",
"text": "Yep, this is a fact - and actually goes double for non-profits and the public sector. I'm significantly more shielded from this than if I was employed as a developer for a private entity. I once worked for a startup where I had to sign a contract to not create a competing service within 2 years of leaving the company. I've been very careful to never put myself in that position again.",
"title": ""
},
{
"docid": "3b4d3c2ebd30bc79d663beed4223cbea",
"text": "My question is: absent the corporate shield, to what extent are partners liable for a serious disaster or accident such as the BP Gulf incident. IN other words, if an oil pipeline had a major spill or explosion in which there were serious liabilities, to what extent would this effect the owners of a listed partnership beyond the effects of corporate liability on a common stock holding?",
"title": ""
},
{
"docid": "8d70c39fb376d9d5b5336f29de78dcb9",
"text": "If the business is legally separated and not commingled - they probably cannot. What they can do is put a lien on it (so that you cannot sell the business) and garnish your income. If the corporate veil is pierced (and its not that hard to have it pierced if you're not careful) - then they can treat it as if it is your personal asset. Verify this with a lawyer licensed in your state, I'm not a lawyer or a tax professional.",
"title": ""
},
{
"docid": "a376c9d3887abdf50b1995e3dbdf34e3",
"text": "\"There are TWO parts to an LLC or any company structure. This being the entire point of creating an LLC. The context is that a lawyer is after your LLC, and he's arguing that the LLC is not genuine, so he can go after your personal assets - your house, car, IRAs, tap your wife's salary etc. This is called \"\"piercing the corporate veil\"\". What would he use to claim the LLC is not genuine? The determination here is between you and the judge in a lawsuit. Suffice it to say, the way you withdraw money must consider the above issues, or you risk breaking the liability shield and becoming personally liable, which means you've been wasting the $25 every year to keep it registered. The IRS has a word for single member LLCs: \"\"Disregarded entity\"\". The IRS wants to know that the entity exists and it's connected to you. But for reporting tax numbers, they simply want the LLC's numbers folded into your personal numbers, because you are the same entity for tax purposes. The determination here is made by you. *LLCs are incredible versatile structures, and you can actually choose to have it taxed like a corporation where it is a separate \"\"person\"\" which files its own tax return. * The IRS doesn't care how you move money from the LLC to yourself, since it's all the same to them. The upshot is that while your own lawyer prohibits you from thinking of the assets as \"\"all one big pile\"\", IRS requires you to. Yes, it's enough to give you whiplash.\"",
"title": ""
},
{
"docid": "52492852287011fbe018664819ecfe84",
"text": "This isn't new. In the mid 80s rules were established by the IRS to differentiate life insurance from Modified Endowment Contracts, placing upper limits on how much money could be placed in life insurance accounts relative to the coverage provided and how quickly (fastest a policy can become paid-in-full is 7 years). None of this closes the fundamental loophole, but it exists for a reason, taxation of life insurance is probably unwise and would result in less people using life insurance as a risk mitigation technique, despite the fact that it's very appropriate for that in some situations. The problem here is that once you get out of everyday-people numbers and into very large sums the vehicle can be clearly abused to avoid taxes on investment gains while living, and possibly avoid them altogether depending on how the estate is structured, and this is bad for the average person who'd like the megarich to pay their percent towards the public needs the same way the average guy does.",
"title": ""
},
{
"docid": "79f21f915d96f4657dbefa524ea5e1e0",
"text": "Strange that they're holding you personally legally liable rather than the company. That's normally a big part of the corporate veil. You need a lawyer, not a stackexchange.",
"title": ""
},
{
"docid": "b2d27d9aa0824213fa71520c93956ae6",
"text": "I'm not familiar enough with finance in any capacity to know what the difference is between financial services or a finance department (beyond what you said); my familiarity of the industry extends to trading, rating, and financial law enforcement. But at a glance on mobile, that looks like pretty much exactly what I was looking for. I have no connect to the industry, but habe been on a Wall St media binge lately, and like to understand powerful/influencial sectors of society anyways. Thanks.",
"title": ""
},
{
"docid": "e1e8de1e86545e7b11ad859682abc36d",
"text": "\"What you are describing is a Chart of Accounts. It's a structure used by accountants to categorise accounts into sub-categories below the standard Asset/Liability/Income/Expense structure. The actual categories used will vary widely between different people and different companies. Every person and company is different, whilst you may be happy to have a single expense account called \"\"Lunch\"\", I may want lots of expense accounts to distinguish between all the different restaurants I eat at regularly. Companies will often change their chart of accounts over time as they decide they want to capture more (or less) detail on where a particular type of Expense is really being spent. All of this makes any attempt to create a standard (in the strict sense) rather futile. I have worked at a few places where discussions about how to structure the chart of accounts and what referencing scheme to use can be surprisingly heated! You'll have to come up with your own system, but I can provide a few common recommendations: If you're looking for some simple examples to get started with, most personal finance software (e.g. GnuCash) will offer to create an example chart of accounts when you first start a session.\"",
"title": ""
},
{
"docid": "4b4ac6d21b3e809e741841ba81cd1cf1",
"text": "This article is 100% incorrect. The governments main concern is to PREVENT depositors and tax payers from losing funds in the case of bank default. How? By having debt holders being forced to converted into equity to create a capital buffer to keep a bank solvent which will help protect depositors and prevent tax payers from having to bail the banks out. Please ask me more questions on this as I have done a lot of work on this topic as of late.",
"title": ""
},
{
"docid": "ef15667412971eea6b43a973276ba24b",
"text": "In the US, pension benefits promised by employers are tightly regulated by a law called ERISA. One of the requirements is that money be deposited in a trust that is out of the reach of the employer and the employer's creditors, so even if the employer falls on hard times or goes bankrupt, the money to pay the pensions is still there. In addition, the benefits are guaranteed by the federal government through the Pension Benefit Guaranty Corporation (usually called the PBGC). Relative to most investments, pensions are a safe bet.",
"title": ""
},
{
"docid": "cf25fc1b80eaa233eb69d6c361db920d",
"text": "Framing is not fraud. Fraud is a material misrepresentation of facts for financial gain. You need to misrepresent actual facts. As for harm, the difference is consent. There is an ethical mandate to protect innocent from harm by others, but no similar mandate to protect them from themselves.",
"title": ""
},
{
"docid": "b31565f39a22a3c38bad6baeab2848a1",
"text": "You can say it's a bad proxy but practically all the richest people have their money tied up in equities, and it would be foolish for them not to. You have to include that somehow. Net worth is not just liquid assets",
"title": ""
},
{
"docid": "89dda066ba2eec4f675e094aaa531a4e",
"text": "\"First off, the jargon you are looking for is a hedge. A hedge is \"\"an investment position intended to offset potential losses/gains that may be incurred by a companion investment\"\" (http://en.wikipedia.org/wiki/Hedge_(finance)) The other answers which point out that put options are frequently used as a hedge are correct. However there are other hedging instruments used by financial professionals to mitigate risk. For example, suppose you would really prefer that Foo Corporation not go bankrupt -- perhaps because they own you money (because you're a bondholder) or perhaps because you own them (because you're a stockholder), or maybe you have some other reason for wanting Foo Corp to do well. To mitigate the risk of loss due to bankruptcy of Foo Corp you can buy a Credit Default Swap (http://en.wikipedia.org/wiki/Credit_default_swap). A CDS is essentially a bet that pays off if Foo Corp goes bankrupt, just as insurance on your house is a bet that pays off if your house burns down. Finally, don't ever forget that all insurance is not just a bet that the bad thing you're insuring against is going to happen, it is also a bet that the insurer is going to pay you if that happens. If the insurer goes bankrupt at the same time as the thing you are insuring goes bad, you're potentially in big trouble.\"",
"title": ""
},
{
"docid": "aaa8aad4c12291860d68cfacd8f7b6ed",
"text": "I found out there is something called CDARS that allows a person to open a multi-million dollar certificate of deposit account with a single financial institution, who provides FDIC coverage for the entire account. This financial institution spreads the person's money across multiple banks, so that each bank holds less than $250K and can provide the standard FDIC coverage. The account holder doesn't have to worry about any of those details as the main financial institution handles everything. From the account holder's perspective, he/she just has a single account with the main financial institution.",
"title": ""
}
] |
fiqa
|
dde3f08333a831527db686f33d7cb940
|
Forgot to renew Fictitious Name application within the county. What is the penalty for late filing?
|
[
{
"docid": "6ef9a41ae9c48fc552d8ff06b44d2360",
"text": "I checked this myself and there is no monetary penalty for late filing. However, since I am late I have to do all publication over again which costs me extra $50.",
"title": ""
}
] |
[
{
"docid": "071f7252ad58078526431800146394df",
"text": "\"When you say \"\"set aside,\"\" you mean you saved to pay the tax due in April? That's underpaying. It's a rare exception the IRS makes for this penalty, hopefully it wasn't too large, and you now know how much to withhold through payroll deductions. Problem is, this wasn't unusual, it was an oversight. You have no legitimate grounds to dispute. Sorry.\"",
"title": ""
},
{
"docid": "24b247b07b0d373f65b7599ba2d8cffe",
"text": "As your question is written now, it looks like you have a typo. Your stated APR is 5.542% = 0.05542, not 0.005542 as you've written. I ran the numbers that you gave (accounting for the typo) through the formula at Wikipedia and got $849.2528 / month, which will round to $849.25 for most payments. That doesn't match the number that you computed or the number on your TIL. (Maybe you also miskeyed the result of your calculation?) I agree that it's unlikely that this is just a calculation error by the mortgage company, although I wouldn't completely rule it out. Are you paying anything else like a property tax escrow? I didn't pull a blank TIL form to see what might go into the monthly payment line that you showed, but in many cases you do pay more than just principle and interest each month. (Not sure if that gets reflected at that point on the form though.)",
"title": ""
},
{
"docid": "f119ea14e5200fa141501b68b27d4325",
"text": "Search the website. There is generally a way to reverse the charge. I have seen these options exist on both Flexible spending accounts and Health Savings accounts. If the expense was for last year, and you had other expenses that you did not submit because you reached the limit, you will probably be OK. Send them both information on the wrong submission on the new submission. If you left money on the table last year, they will want a check from you. If the expense was for this year, you will not have a problem reversing the charge, because much of the year is left. Of course due to the new rules regarding roll-over of lat years money into this year it could be more complex. You want to resolve it as soon a possible to minimize the complexity as deadlines for submission approach. If you don't report the mistake the extra income from the incorrect submission is considered taxable.",
"title": ""
},
{
"docid": "de6d817069222c9fc39f519b322d65f8",
"text": "\"Step one: Contact the collection agency. Tell them that they have the wrong person, and the same name is just a coincidence. I would NOT give them my correct social security number, birth date, or other identifying information. This could be a total scam for the purpose of getting you to give them such personal identifying information so they can perform an identity theft. Even if it is a legitimate debt collection agency, if they are overzealous and/or incompetent, they may enter your identifying information into their records. \"\"Oh, you say your social security number isn't 123-45-6789, but 234-56-7890. Thank you, let me update our records. Now, sir, I see that the social security number in our records matches your social security number ...\"\" Step two: If they don't back off, contact a lawyer. Collection agencies work by -- call it \"\"intimidation\"\" or \"\"moral persuasion\"\", depending on your viewpoint. Years after my wife left me, she went bankrupt. A collection agency called me demanding payment of her debts before the bankruptcy went through. I noticed two things about this: One, We were divorced and I had no responsibility for her debts. Somehow they tracked down my new address and phone number, a place where she had never even lived. Why should I pay her debts? I had no legal obligation, nor did I see any moral obligation. Two, Their pitch was that she/I should pay off this debt before the bankruptcy was final. Why would anyone do that? The whole point of declaring bankruptcy is so you don't have to pay these debts. They were hoping to intimidate her into paying even though she wouldn't be legally obligated to pay. If you don't owe the money, of course there's no reason why you should pay it. If they continue to pursue you for somebody else's debt, in the U.S. you can sue them for harassment. There are all sorts of legal limits on what collection agencies are allowed to do. Actually even if they do back off, it might be worth contacting a lawyer. I suspect that asking your employer to garnish your wages without a court order, without even proof that you are responsible for this debt, is a tort that you could sue them for.\"",
"title": ""
},
{
"docid": "7d94ca59c18ce40480d5dafc986e824b",
"text": "I am not an expert in mattes of amending returns, but from what I heard you are allowed to go back four or five years and amend your returns (we are talking the American IRS here, right?). If they realized all this after that much time, it seems strange. I am wondering if something was left out of the story...",
"title": ""
},
{
"docid": "0f02d14b3b88c6a19f10f13209e2455d",
"text": "I've talked to several very experienced accountants that deal with startup shares, stock 83(b)'s, etc. weekly (based in SF, CA) as this issue would have had a massive impact on me. The most important part of filing an 83(b) is notifying the IRS within 30 days. The law requires the written notification within the 30 day window. Adding it to that years tax return is an IRS procedure. Forgetting to include a copy of that years tax return is apparently a common occurrence when no tax was owed (0 spread, you actually paid the FMV). And the accepted method to resolve this is to simply file a blank amendment for that years return and include the copy of the 83(b) election.",
"title": ""
},
{
"docid": "f1f1690e97d60a6dcbc7d05e5578b1c4",
"text": "In my county one can pay your taxes up front, or pay a fee and then pay in 2 installments. I caught countrywide mortgages paying the fee (from my escrow account) then paying the 2 installments so that they could keep the interest over the 6 months. After that I've always insisted on not having an escrow account.",
"title": ""
},
{
"docid": "a40bb98efec6409b70151dd126776cff",
"text": "I'm assuming this is the US. Is this illegal? Are we likely to be caught? What could happen if caught? If you sign an occupancy affidavit at closing that says you intend to move in within 60-days, with no intention of doing so, then you'll be committing fraud, specifically mortgage/occupancy fraud, a federal crime with potential for imprisonment and hefty fines. In general, moving in late is not something that's likely to be noticed, if the lender is getting their money then they probably don't care. Renting it out prior to moving in seems much riskier, especially if you live in a city/state that requires rental licensing, or are depending on rental income to carry the mortgage. No idea how frequently people are caught/punished for this type of fraud, but it hardly seems worth finding out.",
"title": ""
},
{
"docid": "b15d163a90235fed85ed81ab71d178ac",
"text": "\"Do I understand correctly, that we still can file as \"\"Married filing jointly\"\", just add Schedule C and Schedule SE for her? Yes. Business registration information letter she got once registered mentions that her due date for filing tax return is January 31, 2016. Does this prevent us from filing jointly (as far as I understand, I can't file my income before that date)? IRS sends no such letters. IRS also doesn't require any registration. Be careful, you might be a victim to a phishing attack here. In any case, sole proprietor files a regular individual tax return with the regular April 15th deadline. Do I understand correctly that we do not qualify as \"\"Family partnership\"\" (I do not participate in her business in any way other than giving her money for initial tools/materials purchase)? Yes. Do I understand correctly that she did not have to do regular estimated tax payments as business was not expected to generate income this year? You're asking or saying? How would we know what she expected? In any case, you can use your withholding (adjust the W4) to compensate.\"",
"title": ""
},
{
"docid": "1ab01f6b877e2fecbd87017f51f0d487",
"text": "She filed for 0 withholdings in her W4, so my (unprofessional) guess was that she'd be owed money, and therefore the IRS wouldn't care much if she didn't file her taxes.† Maybe, but doesn't she want that money back? Is she at as much risk as any other individual of being audited and penalized to the same degree if she skips filing her taxes? Audited and penalized are not the same. She's at the same risk of being audited, and even slightly higher since the IRS got reports of her wages, but didn't get the matching report from her. They may want to ask why. But it doesn't mean she's going to be penalized for anything. Being audited doesn't mean you did something wrong. Or does the IRS tend to overlook such individuals. The IRS might want to overlook because they're the ones owning money. She cannot get a refund without filing a tax return. She'd file her taxes today if she could, but the worry is that time's running out Filing an extension is free and it postpones the deadline to file till OCTOBER!",
"title": ""
},
{
"docid": "b4904649b8fe3229290fb00274a4a457",
"text": "\"Square use SSN to verify identity, and they only ask for the last 4 digits for that purpose. If she entered the full SSN - then she entered it into the tax id field, which was a wrong thing to do. It is also worth mentioning that since you mentioned a \"\"business partner\"\" that \"\"should have taken care of taxes\"\" that you should have a tax adviser whose job would be to take care of taxes and ensure that your interests are well-represented. I would suggest not to try interacting with the IRS on your own. Hire a tax adviser (EA/CPA licensed in your State) to do that. That tax adviser will be able to fix the problem (there are different ways of doing it, depending on the circumstances) and also verify that the business taxes were properly taken care of. When dealing with business partners - assume that what they've \"\"supposedly\"\" did was not done, until you see it with your own eyes. Saying that \"\"Supposedly, her business partner took care of all tax issues\"\" means, in this case, that you've been caught with unreported income that you tried to conceal. It is your (your sister's...) responsibility to prove otherwise. It is a very weak defense when the IRS comes knocking on the door for their money.\"",
"title": ""
},
{
"docid": "cecc860897423d6c529366fcac3bc914",
"text": "\"You need to hire a tax professional and have them sort it out for you properly and advise you on how to proceed next. Don't do it yourself, you're way past the stage when you could. You're out of compliance, and you're right - there are penalties that a professional might know how to mitigate, and maybe even negotiate a waiver with the IRS, depending on the circumstances of the case. Be careful of answers like \"\"you don't need to pay anything\"\" that are based on nothing of facts. Based on what you said in the question and in the comments, it actually sounds like you do have to pay something, and you're in trouble with the IRS already. It might be that you misunderstood something in the past (e.g.: you said the business had filed taxes before, but in fact that might never happened and you're confusing \"\"business filed taxes\"\" with \"\"I filed schedule C\"\") or it might be the actual factual representation of things (you did in fact filed a tax return for your business with the IRS, either form 1120 of some kind or 1065). In any case a good licensed (CPA or EA) professional will help you sort it out and educate you on what you need to do in the future.\"",
"title": ""
},
{
"docid": "a7e3d7a58663bf7892905e74ddb6346a",
"text": "\"I'm mostly guessing based on existing documentation, and have no direct experience, so take this with a pinch of salt. My best understanding is that you need to file Form 843. The instructions for the form say that it can be used to request: A refund or abatement of a penalty or addition to tax due to reasonable cause or other reason (other than erroneous written advice provided by the IRS) allowed under the law. The \"\"reasonable cause\"\" here is a good-faith confusion about what Line 79 of the form was referring to. In Form 843, the IRC Section Code you should enter is 6654 (estimated tax). For more, see the IRC Section 6654 (note, however, that if you already received a CP14 notice from the IRS, you should cross-check that this section code is listed on the notice under the part that covers the estimated tax penalty). If your request is accepted, the IRS should issue you Notice 746, item 17 Penalty Removed: You can get more general information about the tax collection process, and how to challenge it, from the pages linked from Understanding your CP14 Notice\"",
"title": ""
},
{
"docid": "e51a65eb4d4db5998634f1c89bd9d272",
"text": "\"If you file the long-form Form 2210 in which you have to figure out exactly how much you should have had withheld (or paid via quarterly payments of estimated tax), you might be able to reduce the underpayment penalty somewhat, or possibly eliminate it entirely. This often happens because some of your income comes late in the year (e.g. dividend and capital gain distributions from stock mutual funds) and possibly because some of your itemized deductions come early (e.g. real estate tax bills due April 1, charitable deductions early in the year because of New Year resolutions to be more philanthropic) etc. It takes a fair amount of effort to gather up the information you need for this (money management programs help), and it is easy to make mistakes while filling out the form. I strongly recommend use of a \"\"deluxe\"\" or \"\"premier\"\" version of a tax program - basic versions might not include Form 2210 or have only the short version of it. I also seem to remember something to the effect that the long form 2210 must be filed with the tax return and cannot be filed as part of an amended return, and if so, the above advice would be applicable to future years only. But you might be able to fill out the form and appeal to the IRS that you owe a reduced penalty, or don't owe a penalty at all, and that your only mistake was not filing the long form 2210 with your tax return and so please can you be forgiven this once? In any case, I strongly recommend paying the underpayment penalty ASAP because it is increasing day by day due to interest being charged. If the IRS agrees to your eloquent appeal, they will refund the overpayment.\"",
"title": ""
},
{
"docid": "2f94f31b43ce48120c2a0c01b820a93c",
"text": "\"Obviously you have done well financially in order to be able to purchase a condo for cash, presumably, without risk of your other obligations. To put things in perspective, we are probably talking about less than $5,000 in tax savings. If she is on the title then she is a co-owner. Are you okay with that? You would essentially be giving this child a 50% stake in a property without compensation. Will your other children be okay with it? As your question stated you would prefer to not have her as an owner. However, is it better to not have her as an owner, So I would buy the condo without her on the title and just pay the extra $100 per month in property tax. It is probably \"\"small potatoes\"\" in comparison to your net worth. I would also only charge her at most your cost of carrying the property as rent. While you will create income all of it (and probably more) could be written off as costs. There should be no income tax burden created from this situation. Your accountant can help with any paperwork that needs to be filed.\"",
"title": ""
}
] |
fiqa
|
9e455fade7f85e86ab8413e440eb5e3a
|
Help: Being charged interest on a loan for which I received no statements telling me of this debt for the past 15 years. Surprise!
|
[
{
"docid": "9af2bf4946067893611b79bae75ae717",
"text": "\"There is a ten year statue of limitations on debt collection, bankruptcy, etc. The problem is, if you start paying, even say, $1, you \"\"acknowledge\"\" the debt and the clock starts again. Debt claims fall under the \"\"he said, she said,\"\" rubric. In debt restructuring situations, the debtor is taught to write all their creditors DENYING debts. Some percentage of those creditors won't have the paperwork to back up their claims. Others will, and can press their claims. Then a court decides. But in any event, a debt more than tens years old is a \"\"stale,\"\" debt. A court is likely to rule in your favor. Unless you \"\"acknowledge\"\" the debt.\"",
"title": ""
},
{
"docid": "fd0b5553c59318e16007df7ac6a2b015",
"text": "Investigate the statute of limitations in your area. 15 years sounds like in most places it is past the allowable time a debt collector can legally collect or report it on your credit report. The statute of limitations means you still owe the debt, but they collector can no longer use the court system to collect it from you. They can file a lawsuit, they will just lose. Please read up on how to handle yourself with a debt that is past the SoL, so that you don't accidentally reset the clock. What I don't know for sure is how that applies to a business, and I cannot remember ever hearing a difference between personal vs business debt, but it is best to consult a lawyer regarding it. References:",
"title": ""
},
{
"docid": "7f38ebc3c2705a7f4104fe2406963d63",
"text": "This sounds like a shady trick. I would consult with a consumer debt lawyer in your area. Most county bar associations in the US have a referral service, where they recommend a local lawyer and there is a reduced fee for the initial visit. I think the statute of limitations is 10 years in most cases, but it depends on where you live. From these bare details,I think they don;t have much of a case. Go see a lawyer and don't let them harrass you.",
"title": ""
}
] |
[
{
"docid": "4c0ad5c834bc207b3f756d7ce3c6ed65",
"text": "\"You won't be able to sell the car with a lien outstanding on it, and whoever the lender is, they're almost certain to have a lien on the car. You would have to pay the car off first and obtain a clear title, then you could sell it. When you took out the loan, did you not receive a copy of the finance contract? I can't imagine you would have taken on a loan without signing paperwork and receiving your own copy at the time. If the company you're dealing with is the lender, they are obligated by law to furnish you with a copy of the finance contract (all part of \"\"truth in lending\"\" laws) upon request. It sounds to me like they know they're charging you an illegally high (called \"\"usury\"\") interest rate, and if you have a copy of the contract then you would have proof of it. They'll do everything they can to prevent you from obtaining it, unless you have some help. I would start by filing a complaint with the Better Business Bureau, because if they want to keep their reputation intact then they'll have to respond to your complaint. I would also contact the state consumer protection bureau (and/or the attorney general's office) in your state and ask them to look into the matter, and I would see if there are any local consumer watchdogs (local television stations are a good source for this) who can contact the lender on your behalf. Knowing they have so many people looking into this could bring enough pressure for them to give you what you're asking for and be more cooperative with you. As has been pointed out, keep a good, detailed written record of all your contacts with the lender and, as also pointed out, start limiting your contacts to written letters (certified, return receipt requested) so that you have documentation of your efforts. Companies like this succeed only because they prey on the fact many people either don't know their rights or are too intimidated to assert them. Don't let these guys bully you, and don't take \"\"no\"\" for an answer until you get what you're after. Another option might be to talk to a credit union or a bank (if you have decent credit) about taking out a loan with them to pay off the car so you can get this finance company out of your life.\"",
"title": ""
},
{
"docid": "5ea816f8a5cdceb7b98027f7392c287e",
"text": "They changed the way trailing interest is calculated back in 2008 if I recall correctly. The idea at the time was that the interest charges to the customer were somewhat less, but it made trying to get a payoff quote a PITA. They used to take payments for more than the current balance due at that time, however. I can't provide any insight as to why they won't now, though.",
"title": ""
},
{
"docid": "a40013b8d9d2d1ecb3b3697c7e5366a2",
"text": "The original note should have had a a clear start and expiration date included with in it (the term). If it did then the term has likely expired by now (since you said it had been years) and you should issue an amendment to the note that clarifies the new term and also clarifies the interest rate terms. If the original note did not have an expiration date then that would be unusual and your mom should work with her friend to execute a new note with clear start and expiration dates and that also clarifies the payment and interest terms. From my experience it is best to include a specific payment schedule within the note as well as very specific and clear terms around how interest will be handled in the event of a missed payment, late payment, or inability to pay the note off in full at expiration. There are many good examples available online to help you craft the appropriate verbiage for your specific needs: http://tinyurl.com/note-examples",
"title": ""
},
{
"docid": "b2ca60e1f757516b41e9fd67b5707998",
"text": "At time = 0, no interest has accrued. That's normal. And the first payment is due after a month, when there's a month's interest and a bit of principal due. Note - I missed weekly payments. You'd have to account for this manually, add a month's interest, then calculate based on weekly payments.",
"title": ""
},
{
"docid": "fc8673c9c96f25059fcf3f3becd6bc98",
"text": "\"Depending on how you view the loan, it could either be considered an Asset or a Liability. Since you are not charging interest, it might seem more intuitive to create an \"\"Assets:Cash Loan\"\" account, and transfer money to & from it (when you receive payments) like you would with a bank account. Personally, I prefer to think of all loans as liabilities. Whether it's a debt which you owe someone, or a balance which someone else owes you, since it's an 'unsettled' amount I file it under \"\"Liabilities:Loan\"\". Either way, you record the initial balance as a debit from your bank, and then record payments as credits back to your primary account. The only way that income or expenses ever gets involved would be if you charged interest (income) or if you forgave some or all of the loan (expense) at some point in the future.\"",
"title": ""
},
{
"docid": "042f8e55c75b6d2ffa8b5a61201fb7ec",
"text": "Well typically you're borrowing a shit ton of money for 30 years so yeah you're paying a lot in interest over that period. But your situation sounds especially bad, that's over a 10% constant assuming 80% LTV. What are you being quoted, like >9% interest?",
"title": ""
},
{
"docid": "11df2d48aade57748eb732849fd92870",
"text": "Most bank registers (where you write down entries) show deposits (+) to account as a CREDIT. Payments, fees, and withdrawals are DEBITs to your bank accounnt. On loans such as credit card accounts, a credit to your loan account is a payment or other reductions of the amount you owe. A charge to your account is a DEBIT to you loan account. They did this just to confuse us!",
"title": ""
},
{
"docid": "3a63d03786cd064808fb119a8a7f559e",
"text": "\"You should hire a lawyer. The fact that they told you your personal information shows that they actually had it, and are not imposters, which is a good thing. The fact that they mislead you means that their intentions are not pure (which is not surprising coming from a collection agency of course). When dealing with collections (or any matter of significance for that matter), don't rely on their recording of the call, because they can always conveniently lose it. Make sure to write down every single detail discussed, including the date and time of the call, and the ID/name of the person on the other side. If possible - make your own recording (notifying them of it of course). It's too late to record the calls now, but do try to reconstruct as much information as possible to provide to your lawyer to deal with it. In the end of the day they will either provide you with the recording (and then you might be surprised to hear that what they said was not in fact what you thought they said, and it was just your wishful thinking, it is very possible to be indeed the case), or claim \"\"we lost it\"\" and then it will be a problem to either of you to prove who said what, but they'll have the better hand (having better lawyers) in convincing the court that you're the one trying to avoid paying your debts. That is why proper representation at all stages is important. As to the bankruptcy - it won't help for student loans, student loans is one of the very few types of debts you can't really run away from. You have to solve this, the sooner the better. Get a professional advice. For the future (and for the other readers) - you should have gotten the professional advice before defaulting on these loans, and certainly after the first call.\"",
"title": ""
},
{
"docid": "18ee590fcebd7e5ad0f366d50040e2e9",
"text": "From the description, you have a post-1998 income contingent loan. The interest rate on those is currently 1.5% but it has varied quite a bit in the last few years due to the formula used to calculate it, which is either the inflation rate (RPI), or 1% + the highest base rate across a group of banks - whichever is smaller. This is indeed really cheap credit compared to any commercial loan you could get, though whether you should indeed just repay the minimum depends on making a proper comparison with the return on any spare money you could get after tax elsewhere. There is a table of previous interest rates. From your description I think you've had the loan for about 4 years - your final year of uni, one year of working without repayments and then two years of repayments. A very rough estimate is that you would have been charged about £300 of interest over that period. So there's still an apparent mismatch, though since both you and I made rough calculations it may be that a more precise check resolves it. But the other thing is that you should check what the date on the statement is. Once you start repaying, statements are sent for a period ending 5th April of each year. So you may well not be seeing the effect of several months of repayments since April on the statement. Finally, there's apparently an online facility you can use to get an up to date balance, though the administration of the loans repaid via PAYE is notoriously inefficient so there may well be a significant lag between a payment being made and it being reflected in your balance, though the effect should still be backdated to when you actually made it.",
"title": ""
},
{
"docid": "9a5895bc8c4b6bd307eaeb467bf56f4e",
"text": "You're not missing anything. Consumer protection in the US is very basic and limited, if at all. So if someone claims you owe them something, it would be really hard for you to prove otherwise unless you actually drag them to court. Especially if there actually was a relationship, and there probably is some paperwork to substantiate the claim. I suggest talking to a consumer issues attorney.",
"title": ""
},
{
"docid": "8b9620a800b6f6147c6c93aeefef92c5",
"text": "If you pay your statement balance in full before the due date you will never pay a cent in interest no matter what your interest rate is.* In fact, I don't even know what my interest rates are. Credit card companies offer this sort of thing in the hopes you will spend more than you can afford to pay completely in those first 15 months. * Unless you use a cash advance, with those you will accrue interest immediately upon receiving the cash sometimes with an additional fee on top.",
"title": ""
},
{
"docid": "79d2ca0681ec20663320a4dee527ced1",
"text": "It could be a couple of things besides extra principal: I seem to remember hearing that some (shady?) lenders would just pocket extra payments if you didn't specify where they were headed, but I've also been told that this just isn't true.",
"title": ""
},
{
"docid": "c082f5ecaa21f07ffca04ffe9e7f91d4",
"text": "A person name Matthew Drury or a similar name owes money on their loan, and it has gone to collections. The collections company is trying to match the account to a real person with money. They sent a letter to somebody (your grandmother) with the same last name. The debtor may have even lived in that town at sometime. The reason you received the letter is because your grandmother forward it on. Because the rest of your info (SSN and birth date) don't match the loan it is unlikely they can attach the debt to you. Unless you provided your address to the company you could in the future receive a letter from them. But I doubt they are going to send letters to everybody with the same name. I would not worry about it unless they actually send a letter or call you directly.",
"title": ""
},
{
"docid": "952ca1d90bac05577db80d5258d82c06",
"text": "\"Never forget that student lenders and their collection agencies are dangerous and clever predators, and you, the student borrower, are their legal prey. They look at you and think, \"\"food.\"\" My friend said she never pays her student loans and nothing has happened. She's wrong. Something has happened. She just doesn't know about it yet. Each unpaid bill, with penalties, has been added to the balance of her loan. Now she owes that money also. And she owes interest on it. That balance is probably building up very fast indeed. She's playing right into the hands of her student lender. They are smiling about this. When the balance gets large enough to make it worthwhile, her student lender will retain an aggressive collection agency to recover the entire balance. The agency will come after her in court, and they are likely to win. If your friend lives in the US, she'll discover that she can't declare bankruptcy to escape this. She has the bankruptcy \"\"reform\"\" act of 2006, passed during the Bush 43 regime, to thank for this. A court judgement against her will make it harder for her to find a job and even a spouse. I'm not saying this is right or just. I believe it is wrong and unjust to make university graduates into debt slaves. But it is true. As for being paid under the table, I hope your friend intends on dying rather than retiring when she no longer can work due to age. If she's paid under the table she will not be eligible for social security payments. You need sixteen calendar quarters of social security credit to be eligible for payments. I know somebody like this. It's a hell of a way to live, especially on weekends when the local church feeding programs don't operate. Paying people under the table ought to be a felony for the business owner.\"",
"title": ""
},
{
"docid": "a5248e0a577f68808f7f7d876323e419",
"text": "When you get a loan (car, home, student) the lending company (bank) give the (auto dealer, previous home owner, school) money. You as the borrow promise to pay this money back with interest. So in your case the 100,000 you borrow requires a payment for principal and interest of ~965 per month. After 240 payments you will have paid the bank ~231,605. So who got the ~131,000 in interest. The bank did. It was used to pay interest to the people who made deposits into the bank. It was also used to pay the expenses of the bank: salaries, retirement, rent, electricity, computers, etc. If the bank is a company with investors they may have to pay dividends to them to. Of course not all loans are successfully paid back, so some of the payment goes to cover the loans that are in default. In many cases loans are also refinanced, or the house is sold long before the 20-30 year term is up. In these cases the amount of interest received for that loan is much less than anticipated, but the good news is that it can be loaned out again.",
"title": ""
}
] |
fiqa
|
af3b4d4137bef74b31d8beb58026d0a3
|
Section 179 vs depreciation of laptop
|
[
{
"docid": "0131c7928b076166b0885e6d33cc2f52",
"text": "I'm not a tax expert, but I think you mean Form 4562, right? If you acquire the laptop in the year for which you're filing taxes, then it is just that simple. (At least according to my reading of 4562 instructions, and my history of accepted tax returns where I've done this for my own business.) If, however, you acquired the laptop in a previous year and have already depreciated it previously (with the plan to spread over several years), there is more complexity I believe -- you may limited in how you could accelerate the remaining depreciation.",
"title": ""
},
{
"docid": "9dadcaf1b7aff5c3555a19c51de29974",
"text": "The CPA's mention of $2,500 is probably referring to the recently increased de minimis safe harbor under the final tangible property regulations (used to be $500) without an applicable financial statement. The IRS will not challenge your choice of expense or capitalization on amounts on or below $2500 if you elect the de minimis safe harbor election on your return. However, you must follow whatever you're doing for your books. (So if you are capitalizing your laptops for book purposes, you would also need to capitalize for tax purposes). Section 179 allows you to expense property that you would have otherwise have had to capitalize and depreciate. Section 179 can be annoying, especially if your LLC is treated as a passthrough, because there are recapture provisions when you dispose of the asset too early. For the tax return preparer, it makes the return preparation much more simple if there are no fixed assets to account for in the first place, which is quite possible if you are expensive all items/invoices less than $2,500.",
"title": ""
}
] |
[
{
"docid": "f06119600d3aea07f3eb0978ad02434e",
"text": "You would report it as business income on Schedule C. You may be able to take deductions against that income as well (home office, your computer, an android device, any advertising or promotional expenses, etc.) but you'll want to consult an accountant about that. Generally you can only take those kinds of deductions if you use the space or equipment exclusively for business use (not likely if it's just a hobby). The IRS is pretty picky about that stuff.",
"title": ""
},
{
"docid": "d55b27429ba53a663bc7257aa958fc75",
"text": "\"I am going to keep things very simple and explain the common-sense reason why the accountant is right: Also, my sister in law owns a small restaurant, where they claim their accountant informed them of the same thing, where a portion of their business purchases had to be counted as taxable personal income. In this case, they said their actual income for the year (through their paychecks) was around 40-50K, but because of this detail, their taxable income came out to be around 180K, causing them to owe a huge amount of tax (30K ish). Consider them and a similarly situated couple that didn't make these purchases. Your sister in law is better off in that she has the benefit of these purchases (increasing the value of her business and her expected future income), but she's worse off because she got less pay. Presumably, she thought this was a fair trade, otherwise she wouldn't have made those purchases. So why should she pay any less in taxes? There's no reason making fair trades should reduce anyone's tax burden. Now, as the items she purchased lose value, that will be a business loss called \"\"depreciation\"\". That will be deductible. But the purchases themselves are not, and the income that generated the money to make those purchases is taxable. Generally speaking, business gains are taxable, regardless of what you do with the money (whether you pay yourself, invest it, leave it in the business, or whatever). Generally speaking, only business losses or expenses are deductible. A purchase is an even exchange of income for valuable property -- even exchanges are not deductions because the gain of the thing purchased already fairly compensates you for the cost. You don't specify the exact tax status of the business, but there are really only two types of possibilities. It can be separately taxed as a corporation or it can be treated essentially as if it didn't exist. In the former case, corporate income tax would be due on the revenue that was used to pay for the purchases. There would be no personal income tax due. But it's very unlikely this situation applies as it means all profits taken out of the business are taxed twice and so small businesses are rarely organized this way. In the latter case, which is almost certainly the one that applies, business income is treated as self-employment income. In this case, the income that paid for the purchases is taxable, self-employment income. Since a purchase is not a deductible expense, there is no deduction to offset this income. So, again, the key points are: How much she paid herself doesn't matter. Business income is taxable regardless of what you do with it. When a business pays an expense, it has a loss that is deductible against profits. But when a business makes a purchase, it has neither a gain nor a loss. If a restaurant buys a new stove, it trades some money for a stove, presumably a fair trade. It has had no profit and no loss, so this transaction has no immediate effect on the taxes. (There are some exceptions, but presumably the accountant determined that those don't apply.) When the property of a business loses value, that is usually a deductible loss. So over time, a newly-purchased stove will lose value. That is a loss that is deductible. The important thing to understand is that as far as the IRS is concerned, whether you pay yourself the money or not doesn't matter, business income is taxable and only business losses or expenses are deductible. Investments or purchases of capital assets are neither losses nor expenses. There are ways you can opt to have the business taxed separately so only what you pay yourself shows up on your personal taxes. But unless the business is losing money or needs to hold large profits against future expenses, this is generally a worse deal because money you take out of the business is taxed twice -- once as business income and again as personal income. Update: Does the business eventually, over the course of the depreciation schedule, end up getting all of the original $2,000 tax burden back? Possibly. Ultimately, the entire cost of the item is deductible. That won't necessarily translate into getting the taxes back. But that's really not the right way to think about it. The tax burden was on the income earned. Upon immediate replacement, hypothetically with the exact same model, same cost, same 'value', isn't it correct that the \"\"value\"\" of the business only went up by the amount the original item had depreciated? Yes. If you dispose of or sell a capital asset, you will have a gain or loss based on the difference between your remaining basis in the asset and whatever you got for the asset. Wouldn't the tax burden then only be $400? Approximately, yes. The disposal of the original asset would cause a loss of the difference between your remaining basis in the asset and what you got for it (which might be zero). The new asset would then begin depreciating. You are making things a bit more difficult to understand though by focusing on the amount of taxes due rather than the amount of taxable gain or loss you have. They don't always correlate directly (because tax rates can vary).\"",
"title": ""
},
{
"docid": "a9aeaec24a4f70ddde19b8acdd0afb10",
"text": "Makes sense. I typed the previous reply on an ipad and was too lazy to go into the fact that as you point out the cash exits the balance sheet so in a DCF it doesn't get any weight in the terminal value calculation which makes up a significant chunk of an EV normally.",
"title": ""
},
{
"docid": "fc0807c84be4f0eee1f29b291d2316d6",
"text": "Either way, (lease or buy), it's likely going to be an expense, not a depreciation. You would expense the entire lease amount - whatever that is in the year it was paid. A $2k-$3k computer probably isn't worth the trouble of recording it as a Fixed Asset and depreciating it yearly. I work for a company that buys thousands of PCs a year for its employees and we have a hard rule: If it's under $3k, it's an expense not an asset. If you were buying $20k-$50k servers, this would be a different conversation both because of the price and the life of the item. Because it's such a small amount (unless you really are buying $20k PCs), it doesn't really matter whether it's your biggest expense or not, it's likely just an expense. Though, no one is preventing you from depreciating it over 5 years if you wanted to. See: https://www.irs.gov/help-resources/tools-faqs/faqs-for-individuals/frequently-asked-tax-questions-answers/sale-or-trade-of-business-depreciation-rentals/depreciation-recapture/depreciation-recapture In summary: I would say your question is more of a business sense question than a tax question. Is it worth it to you to lease instead of buying because you are getting a new PC so often? Btw: every 2 years is not that often. It's average. Whatever your decision, I think the answer for taxes is the same: Expense it all in the year it was incurred unless you really want to spread it out and depreciate.",
"title": ""
},
{
"docid": "848f96c11dba0694cc5c7388bd4ed21b",
"text": "I am a very light TurboTax user and have expensed a laptop in the past (since it was used exclusively for work) and used the itemized deduction there and has no issues. Just not sure if there was a limit or anything of note to realize ahead of time. Thanks!",
"title": ""
},
{
"docid": "c9ce99cbf2297731cc659b420f44965c",
"text": "Could be. I haven't read the law or how its written nor am I a lawyer. Just saying there's usually a way around these things. They could also make the business decision that the risk of lost sales is worth the potential lawsuit loss. We're all just pontificating here ¯\\_(ツ)_/¯",
"title": ""
},
{
"docid": "77e432ce5d06ab22ff9b55d924bbf401",
"text": "If a business tool has a limited lifespan, it's value decreases (depreciates) from year to year. The business can capture that loss of value on some things that it couldn't otherwise write off as expenses. A few tools can be either expenses or depreciated, but only one of those can be chosen for that particular object. This is generally not relevant for individual taxpayers, unless you can show that the item is being used for income-producing purposes.",
"title": ""
},
{
"docid": "f0acd74b1c1a72d4d78b6c12ab35e02e",
"text": "Another factor to consider is that resale value of the laptop is quite bit more if it is still under warranty. This would apply to people who replace their laptop often. It is higher because the purchaser can be assured they are not getting a lemon. I determined this by comparing prices on ebay before selling my computer. Of course, if you keep your laptop longer than the warranty, this means nothing. But for me it meant I could sell my old laptop quickly and for a better price. Because I used my laptop for work and totally depended on it, even one day of downtime would cost me a lot, so it was worthwhile to keep a relatively new laptop under warranty. Also, for those using Apple Care, there is an undocumented perk: Apple covered an out of warranty repair on a time capsule under my apple care for my laptop even tho they were not purchased at the same time.",
"title": ""
},
{
"docid": "9460e49140f1e4ce5b989c861217caf3",
"text": "From the IRS Section 1091. Loss from Wash Sales of Stock or Securities Section 1091(a) provides that in the case of any loss claimed to have been sustained from any sale or other disposition of shares of stock or securities where it appears that, within a period beginning 30 days before the date of such sale or disposition and ending 30 days after such date, the taxpayer has acquired (by purchase or by an exchange on which the entire amount of gain or loss was recognized by law),or has entered into a contract or option so to acquire, substantially identical stock or 3 securities, then no deduction shall be allowed under § 165 The document is not long, 4 pages, and should be read to see the intent. It's tough to choose the one snippet, but the conclusion is this is the definitive response to that question. A purchase within an IRA or other retirement account can create a wash sale if such a purchase would be a wash sale otherwise, i.e. the fact that it's a retirement account doesn't avoid wash rules.",
"title": ""
},
{
"docid": "a4fe4886ea6863bd792a7277924d2b8b",
"text": "Purchase accounting requires that you mark assets, including PP&E to fair value. So let's say you bought a machine 5 years ago for $1,000 - you might have depreciated it to $250 on your balance sheet but it might actually be worth $900.",
"title": ""
},
{
"docid": "5233f5bef9fbf9e67543bacf0f91b536",
"text": "As someone who used to be an IT contractor in the UK and used to work from home, my advice is to talk to your accountant in detail. It's been a few years, but IIRC you can write off some small stuff like proportional heating costs etc, but in my case it was so minuscule that it wasn't worth the effort. You're likely better off to just leave it. <subliminal message> Talk to your accountant :). </subliminal message>",
"title": ""
},
{
"docid": "5624d284f2d14f8e932fc4406555d98f",
"text": "\"VAT = Value Added Tax (as an Aussie think \"\"GST\"\") This is applicable in Britain. Basically, if you were in Britain, and if you could claim VAT as a deduction, that invoice is not sufficient proof to make the claim. But you're in Oz so it doesn't apply to you in any case. For work-related deductions like book purchases, see http://www.ato.gov.au/individuals/content.asp?doc=/content/00216829.htm&pc=001/002/068/001/002&mnu=&mfp=&st=&cy=1 Issues such as the books being second hand or purchased online are not cited in the instructions as relevant/limiting factors. In fact, if you really want to get into the nitty gritty, you could claim the work-related proportion of your internet access fees as a deduction (question D5 instructions, above, cover that as well).\"",
"title": ""
},
{
"docid": "2d471218f1f956c7060cf036d4ef1b7b",
"text": "If you are an UK citizen and resident, then no. If you are an EU resident or non-EU resident then yes, but there are conditions. Source You can sometimes get VAT refunds on goods bought in the UK if you: You can’t get a VAT refund for: As bringing a laptop PCSpecialist is an online sale(I bought my desktop from them), I don't think you can claim VAT.",
"title": ""
},
{
"docid": "690a6d2d2c6751e41efe65b56e1a5876",
"text": "Most items used in business have to be depreciated; you get to deduct a small fraction of the cost each year depending on the lifetime of the item as per IRS rules. That is, you cannot assume a one-year life for an electronic item even if it will be obsolete in three months. Some items can be expensed; you get to deduct the entire cost in the first year but then if you don't stay in business, e.g. you get a job paying wages and are no longer self-employed, you have to recapture this and pay taxes on the amount recaptured in the later year. With respect to consumer-type electronics such as an iPad or laptop, it helps to have a separate item for personal use that you can show in case of an audit.",
"title": ""
},
{
"docid": "691f379e386fc1183176cdae0adf3072",
"text": "This will be a complex issue and you will need to sit down with a professional to work through the issues: When the house was put up for rent the initial year tax forms should have required that the value of the house/property be calculated. This number was then used for depreciation of the house. This was made more complex based on any capital improvements. If the house wasn't the first he owned, then capital gains might have been rolled over from previous houses which adds a layer of complexity. Any capital improvements while the house was a rental will also have to be resolved because those were also depreciated since they were placed in service. The deprecation will be recaptured and will be a part of the calculation. You have nowhere near enough info to make a calculation at this time.",
"title": ""
}
] |
fiqa
|
bbbb4310c748381b11dc0e93798ba588
|
Process for dissolving a recently-opened Colorado LLC?
|
[
{
"docid": "bca4fd8eebb48bd815866fbf47824e7e",
"text": "Forms for the Colorado LLCs are online. You can find the link to the dissolution form here, and instructions here. IRS instructions are here. That's what they want: To close your business account, send us a letter that includes the complete legal name of the entity, the EIN, the business address and the reason you wish to close your account. If you have a copy of the EIN Assignment Notice that was issued when your EIN was assigned, include that when you write to us at: Internal Revenue Service Cincinnati, Ohio 45999 Everything is pretty straight forward. Note that you might be required to file a initial/final tax return if you had any transactions.",
"title": ""
}
] |
[
{
"docid": "6ef75666739cf6561ccfe0c9579f9562",
"text": "Yes, you can do this. I do this for my own single-member LLC, but I usually do it online instead of writing a check. Your only legal obligation is to pay quarterly estimated tax payments to the IRS. I'm assuming you are not otherwise doing anything shady. For example, that you have funds in your business account to pay any expenses that will be due soon or that you are trying to somehow pull a fast one on someone else...",
"title": ""
},
{
"docid": "d618f155ef12b1224a787c896d6999c1",
"text": "This is not what you normally get told, including by partners who were there at the time. What IPO were you referring to? Andersen Consulting / Accenture's IPO was some time after the split. Edit: spun off? It wasn't what you'd call a friendly split",
"title": ""
},
{
"docid": "e0c84063098cf5ce090938ff3d6fb0a5",
"text": "From what I can understand you will be paying money to buy a business with more problems than assets. If it's all about the reviews then register an LLC yourself and do some marketing work, it will cost much less. If this business had clients and constant recurring revenue then that would be a different story.",
"title": ""
},
{
"docid": "954c15a2906ae58f160e91c32a0a1c96",
"text": "I wouldn't get too caught up with this. Doesn't sound like this is even stock reconciliation, more ensuring the cash you've received for dividends & other corporate actions agrees to your expected entitlements and if not raising claims etc.",
"title": ""
},
{
"docid": "54f174f29e2d2d7d644ab1b8ced2a5f7",
"text": "Form 10-K is filed by corporations to SEC. You must be thinking of form 1065 (its schedule K) that a partnership (and multi-member LLC) must file with the IRS. Unless the multi-member LLC is legally dissolved, it must file this form. You're a member, so it is your responsibility, with all the other members, to make sure that the manager files all the forms, and if the manager doesn't - fire the manager and appoint another one (or, if its member managed - chose a different member to manage). If you're a sole member of the LLC - then you don't need to file any forms with the IRS, all the business expenses and credits are done on your Schedule C, as if you were a sole propriator.",
"title": ""
},
{
"docid": "0cc9f29299b97f983d66979dc8a38088",
"text": "Are you talking about domicile? An LLC is treated differently than a corporation in the terms of citizenship of the law. An LLC is a citizen of whichever state it's members (shareholders) are citizens. I would recommend you just spend the money on a business attorney to ensure that all the t's are crossed correctly so it doesn't end up costing you more later on.",
"title": ""
},
{
"docid": "50d712e4318ff47ff4c92c5ddf4fa22d",
"text": "I'm not certain I understand what you're trying to do, but it sounds like you're trying to create a business expense for paying off your personal debt. If so - you cannot do that. It will constitute a tax fraud, and if you have additional partners in the LLC other than you and your spouse - it may also become an embezzlement issue. Re your edits: Or for example, can you create a tuition assistance program within your company and pay yourself out of that for the purposes of student loan money. Explicitly forbidden. Tuition assistance program cannot pay more than 5% of its benefits to owners. See IRS pub 15-B. You would think that if there was a way to just incorporate and make your debts pre-tax - everyone would be doing it, wouldn't you?",
"title": ""
},
{
"docid": "8559d4d0cb11a5b1a6b628e718c8fd93",
"text": "Pm me. As a long time bar and restaurant owner who specializes in audits on projects like this I can tell that there are a number of variables at play in this scenario. A typical MBA won't see the industry issues you need to address. I can do a phone convo for 15 min and get you sorted fast. Happy to pro bono it. Good luck.",
"title": ""
},
{
"docid": "8db1c181bc68dc201970efb4f4b3abab",
"text": "\"There's nothing you can do. If he has indeed deposited the check, it would appear on your account fairly quickly - I've never seen it taking more than 2-3 business days. However, a check is a debt instrument, and you cannot close the account until it clears, or until the \"\"unclaimed property\"\" laws of your state kick in. If he claims that he deposited the check, ask it in writing and have your bank (or the bank where it was deposited) investigate why it takes so long to clear. If he's not willing to give it to you in writing - he's likely not deposited it. Whatever the reason may be, even just to cause you nuisance. Lesson learned. Next time - cashier's check with a signed receipt. Re closing the LLC: if you're the only two partners - you can just withdraw yourself from the LLC, take out your share, and drop it on him leaving him the only partner. Check with your local attorney for details.\"",
"title": ""
},
{
"docid": "a11bc3358617f67efa95f1e3623a2782",
"text": "We have a good experienced team that always ready resolve the problem of their clients with starting an LLC. Our company supports the LLC (limited liability company). It is an important process to run a business and incorporate the LLC form, that's supportable for the organization's needs. It is a pivotal district for you that you have the best possible to have communication in the change of the mission on the off chance that you need to offer the business endeavor. We are fit to make another page at the most effective cost. It is an expert web format forming a llc and advancement business endeavor situated in Bellmawr, NJ. Bent Enterprise is a total administration guarantor for offices or individuals asking about planning their requirements.",
"title": ""
},
{
"docid": "9e3871bf398dd6ea9e573b13ebb1319c",
"text": "I know this is old, but Joe Taxpayer is wrong. When you dissolve a corporation in selling it, all liabilities go with the old owners and the new owners, smartly starting with a new corporation and taxpayer ID, start with a clean slate. The only way this is not true is if the new owners did not change a thing legally and kept everything the same, other than there names, which would be entirely insane if you asked any lawyer in the country. Gift cards are a touchy situation, if not negotiated in the deal, by law the new owners DO NOT have to take them. Yes, it's good PR, but when there's a considerable amount of money out there it could bury the new owners by giving away free stuff.",
"title": ""
},
{
"docid": "b9310f8df731e3ba1a7449b6c4d807dd",
"text": "I would suggest opening a new account (credit card and bank) for just your business. This protects you in multiple ways, but is no bigger burden for you other than carrying another card in your wallet. Then QB can download the transactions from your website and reconciling is a cinch. If you got audited, you'd be in for a world of pain right now. From personal experience there are a few charges that go unnoticed that reconciling finds every month at our business. We have a very strict process in place, but some things slip through the cracks.",
"title": ""
},
{
"docid": "c02e759961fc1045b5c3846be9ea8436",
"text": "The process would look something like: 1. Register your investment company with the SEC 2. Get the ETF approved by the SEC 3. Get a custodian bank (likely requires min assets of a few million) 4. Get listed on an exchange like NYSEARCA by meeting requirements and have an IPO 1 and 2 probably require a lot of time and fees and would be wise to have a lawyer advising, 3 is obviously difficult due to asset requirements and 4 would probably involve an investment bank plus more fees",
"title": ""
},
{
"docid": "d75dff954aeb4f366304acd2900b66ae",
"text": "How would I go about this so that I can start using this money? You would open the LLC. The checks were not written out to you, they were written out to the LLC. Only the LLC can endorse them.",
"title": ""
},
{
"docid": "9eb4a7adcb63336b85bfb3311fba194c",
"text": "I'm a bot, *bleep*, *bloop*. Someone has linked to this thread from another place on reddit: - [/r/utricksblog] [What is the best way to move my LLC to another State?](https://np.reddit.com/r/UtricksBlog/comments/70psch/what_is_the_best_way_to_move_my_llc_to_another/) [](#footer)*^(If you follow any of the above links, please respect the rules of reddit and don't vote in the other threads.) ^\\([Info](/r/TotesMessenger) ^/ ^[Contact](/message/compose?to=/r/TotesMessenger))* [](#bot)",
"title": ""
}
] |
fiqa
|
d58db2e509043e9612cd31c00bd21ce4
|
Ethics and investment
|
[
{
"docid": "a9ba213c322de36dbdb0fdaee716f0b8",
"text": "\"Are there businesses which professionally invest ethically? Yes. The common term for this is \"\"socially responsible investing\"\". Looking at that page and googling that term should provide you with plenty of pointers to funds to investigate. Of course, the definitions of \"\"ethical\"\" and \"\"socially responsible\"\" vary from person to person and fund to fund. You'll have to take a look at each fund to see which ones match your principles.\"",
"title": ""
},
{
"docid": "281b87ce29ace56b33b832593ffd7a81",
"text": "Avoiding tobacco, etc is fairly standard for a fund claiming ethical investing, though it varies. The hard one on your list is loans. You might want to check out Islamic mutual funds. Charging interest is against Sharia law. For example: http://www.saturna.com/amana/index.shtml From their about page: Our Funds favor companies with low price-to-earnings multiples, strong balance sheets, and proven businesses. They follow a value-oriented approach consistent with Islamic finance principles. Generally, these principles require that investors avoid interest and investments in businesses such as liquor, pornography, gambling, and banks. The Funds avoid bonds and other conventional fixed-income securities. So, it looks like it's got your list covered. (Not a recommendation, btw. I know nothing about Amana's performance.) Edit: A little more detail of their philosophy from Amana's growth fund page: Generally, Islamic principles require that investors share in profit and loss, that they receive no usury or interest, and that they do not invest in a business that is prohibited by Islamic principles. Some of the businesses not permitted are liquor, wine, casinos, pornography, insurance, gambling, pork processing, and interest-based banks or finance associations. The Growth Fund does not make any investments that pay interest. In accordance with Islamic principles, the Fund shall not purchase conventional bonds, debentures, or other interest-paying obligations of indebtedness. Islamic principles discourage speculation, and the Fund tends to hold investments for several years.",
"title": ""
},
{
"docid": "2e5bb05701d5b40caffbc5d98be9d723",
"text": "Domini offers such a fund. It might suit you, or it might include things you wish to avoid. I'm not judging your goals, but would suggest that it might be tough to find a fund that has the same values as you. If you choose individual stocks, you might have to do a lot of reading, and decide if it's all or none, i.e. if a company seems to do well, but somehow has an tiny portion in a sector you don't like, do you dismiss them? In the US, Costco, for example, is a warehouse club, and treats employees well. A fair wage, benefits, etc. But they have a liquor store at many locations. Absent the alcohol, would you research every one of their suppliers?",
"title": ""
},
{
"docid": "cf5e2509b359dc37d07056f9830050ea",
"text": "\"Markets are amoral. If you don't buy stock in a company that has high growth/earnings, someone else will. By abstaining you will actually make it cheaper for someone else who is interested in making money. Investing in \"\"socially responsible\"\" funds will only ensure that you have less money to make a moral difference in the world when you decide to transition from working to philanthropy. Edit to clarify -- You aren't interested in buying individual stocks directly, that leaves you with two general options: You can make a statement with your investment now, or you can take the better returns and make a difference with your money later.\"",
"title": ""
},
{
"docid": "747c67c61f77e71e0193055130ee6ea0",
"text": "There are a number of mutual funds which claim to be 'ethical'. Note that your definition of 'ethical' may not match theirs. This should be made clear in the prospectus of whichever mutual fund you are looking at. You will likely pay for the privilege of investing this way, in higher expenses on the mutual fund. If I may suggest another option, you may want to consider investing in low-fee mutual funds or ETFs and donating some of the profit to offset the moral issues you see.",
"title": ""
},
{
"docid": "19cf023e3f5de9b66e48a1b8b43787c0",
"text": "There are the Dow Jones Sustainability Indices. I believe the reports used to create them are released to the public. This could be a good place to start.",
"title": ""
},
{
"docid": "a6a908e79622930b75bd84c3ed3768c8",
"text": "Peer to peer lending such as Kiva, Lending Club, Funding Circle(small business), SoFi(student loans), Prosper, and various other services provide you with access to the 'basic form' of investing you described in your question. Other funds: You may find the documentary '97% Owned' fascinating as it provides an overview of the monetary system of England, with parallels to US, showing only 3% of money supply is used in exchange of goods and services, 97% is engaged in some form of speculation. If speculative activities are of concern, you may need to denounce many forms of currency. Lastly, be careful of taking the term addiction too lightly and deeming something unethical too quickly. You may be surprised to learn there are many people like yourself working at 'unethical' companies changing them within.",
"title": ""
}
] |
[
{
"docid": "6d9785cd80cb5526be4badf850cac28e",
"text": "The problem is I can't do anything with those morals. I can't grow my company with it, I can't pay my employees with it and I can't buy things with it. You should he as moral as possible, but when you are so moral that you start making moral choices that just doesn't cost you money but can sink the company or increase the workload on your employees you've done an disservice to your employees.",
"title": ""
},
{
"docid": "033b3dc786aabf615ad1a76442c0e644",
"text": "\"There are moral distinctions that can be drawn between gambling and investing in stocks. First and I think most important, in gambling you are trying to get money for nothing. You put $100 down on the roulette wheel and you hope to get $200 back. In investing you are not trying to get something for nothing. You are buying a piece of a hopefully profit-making company. You are giving this company the use of your money, and in exchange you get a share of the profits. That is, you are quite definitely giving something: the use of your money for a period of time. You invest $100 of your money, and you hope to see that grow by maybe $5 or $10 a year typically. You may get a sudden windfall, of course. You may buy a stock for $100 today and tomorrow it jumps to $200. But that's not the normal expectation. Second, gambling is a zero sum game. If I gamble and win $100, then someone else had to lose $100. Investing is not a zero sum game. If I buy $100 worth of stock in a company and that grows to $200, I have in a sense \"\"won\"\" $100. But no one has lost $100 to give me that money. The money is the result of the profit that the company made by selling a valuable product or service to customers. When I go to the grocery store and buy a dozen eggs for $2, some percentage of that goes to the stockholders in the grocery store, say 5 cents. So did I lose 5 cents by buying those eggs? No. To me, a dozen eggs are worth at least $2, or I wouldn't have bought them. I got exactly what I paid for. I didn't lose anything. Carrying that thought further, investing in the stock market puts money into businesses. It enables businesses to get started and to grow and expand. Assuming these are legitimate businesses, they then provide useful products and services to customers. Gambling does not provide useful products and services to anyone -- except to the extent that people enjoy the process of gambling, in which case you could say that it is equivalent to playing a video game or watching a movie. Third -- and these are all really related -- the whole goal of gambling is to take something from another person while giving him nothing in return. Again, if I buy a dozen eggs, I give the store my $2 (or whatever amount) and I get a dozen eggs in exchange. I got something of value and the store got something of value. We both walk away happy. But in gambling, my goal is that I will take your money and give you nothing in return. It is certainly true that buying stocks involves risk, and we sometimes use the word \"\"gamble\"\" to describe any risk. But if it is a sin to take a risk, then almost everything you do in life is a sin. When you cross the street, there is a risk that you will be hit by a car you didn't see. When you drink a glass of water, there is the risk that it is contaminated and will poison you. When you get married, there is a risk that your spouse will divorce you and break your heart. Etc. We are all sinners, we all sin every day, but we don't sin quite THAT much. :-) (BTW I don't think that gambling is a sin. Nothing in the Bible says that gambling is a sin. But I can comprehend the argument for it. I think gambling is foolish and I don't do it. My daughter works for a casino and she has often said how seeing people lose money in the casino regularly reminds her why it is stupid to gamble. Like she once commented on people who stand between two slot machines, feed them both coins and then pull the levers down at the same time, \"\"so that\"\", she said, \"\"they can lose their money twice as fast\"\".)\"",
"title": ""
},
{
"docid": "4cc24c165a83ad313d3ea6fe0d39b533",
"text": "\"I'm no expert on this, but I would say that, if you own the business entirely yourself, there is nothing terribly wrong with using it for your own purposes as you would any other asset that you own. What is wrong is not keeping accurate records that distinguish between your money and the business's. As you say, this is wrong strategically, but it can also be dangerous legally, because if you mix your money and the business's money and don't keep track, you could find, for instance, that you've failed to pay the taxes you were supposed to. There is also a concern that might not fall under what people refer to as \"\"ethics\"\" but more \"\"good corporate citizenship\"\". Basically, people tend not to like companies that just shovel all their gains into the owners' pockets. This is especially true if there are ways the money could be used to improve the business. In other words, if you're able to live high on the hog with the profits while paying all your employees a pittance, the public may not look favorably on your business.\"",
"title": ""
},
{
"docid": "c4ec080f48901e5d1591782ca087bcba",
"text": "The Trinity study looked at 'safe' withdrawal rates from retirement portfolios. They found it was safe to withdraw 4% of a portfolio consisting of stocks and bonds. I cannot immediately find exactly what specific investment allocations they used, but note that they found a portfolio consisting largely of stocks would allow for the withdrawal of 3% - 4% and still keep up with inflation. In this case, if you are able to fund $30,000, the study claims it would be safe to withdraw $900 - $1200 a year (that is, pay out as scholarships) while allowing the scholarship to grow sufficiently to cover inflation, and that this should work in perpetuity. My guess is that they invest such scholarship funds in a fairly aggressive portfolio. Most likely, they choose something along these lines: 70 - 80% stocks and 20 - 30% bonds. This is probably more risky than you'd want to take, but should give higher returns than a more conservative portfolio of perhaps 50 - 60% stocks, 40 - 50% bonds, over the long term. Just a regular, interest-bearing savings account isn't going to be enough. They almost never even keep up with inflation. Yes, if the stock market or the bond market takes a hit, the investment will suffer. But over the long term, it should more than recover the lost capital. Such scholarships care far more about the very long term and can weather a few years of bad returns. This is roughly similar to retirement planning. If you expect to be retired for, say, 10 years, you won't worry too much about pulling out your retirement funds. But it's quite possible to retire early (say, at 40) and plan for an infinite retirement. You just need a lot more money to do so. $3 million, invested appropriately, should allow you to pull out approximately $90,000 a year (adjusted upward for inflation) forever. I leave the specifics of how to come up with $3 million as an exercise for the reader. :) As an aside, there's a Memorial and Traffic Safety Fund which (kindly and gently) solicited a $10,000 donation after my wife was killed in a motor vehicle accident. That would have provided annual donations in her name, in perpetuity. This shows you don't need $30,000 to set up a scholarship or a fund. I chose to go another way, but it was an option I seriously considered. Edit: The Trinity study actually only looked at a 30 year withdrawal period. So long as the investment wasn't exhausted within 30 years, it was considered a success. The Trinity study has also been criticised when it comes to retirement. Nevertheless, there's some withdrawal rate at which point your investment is expected to last forever. It just may be slightly smaller than 3-4% per year.",
"title": ""
},
{
"docid": "ec424b8304b09e414879c974e3e7db78",
"text": "\"You are conflating two different types of risk here. First, you want to invest money, and presumably you're not looking at the \"\"lowest risk, lowest returns\"\" end of the spectrum. This is an inherently risky activity. Second, you are in a principal-agent relationship with your advisor, and are exposed to the risk of your advisor not maximizing your profits. A lot has been written on principal-agent theory, and while incentive schemes exist, there is no optimal solution. In your case, you hope that your agent will start maximizing your profits if they are 100% correlated with his profits. While this idea is true (at least according to standard economic theory, you could find exceptions in behavioral economics and in reality), it also forces the agent to participate in the first risk. From the point of view of the agent, this does not make sense. He is looking to render services and receive income for it. An agent with integrity is certainly prepared to carry the risk of his own incompetence, just like Apple is prepared to replace your iPhone should it not start one day. But the agent is not prepared to carry additional risks such as the market risk, and should not be compelled to do so. It is your risk, a risk you personally take by deciding to play the investment gamble, and you cannot transfer it to somebody else. Of course, what makes the situation here more difficult than the iPhone example is that market-driven losses cannot be easily distinguished from incompetent-agent losses. So, there is no setup in which you carry the market risk only and your agent carries the incompetence risk only. But as much as you want a solution in which the agent carries all risk, you probably won't find an agent willing to sign such a contract. So you have to simply accept that both the market risk and the incompetence risk are inherent to being an investor. You can try to mitigate your own incompetence by having an advisor invest for you, but then you have to accept the risk of his incompetence. There is no way to depress the total incompetence risk to zero.\"",
"title": ""
},
{
"docid": "f010325a3fe156fe86ddd14c85278e5e",
"text": "\"Of course. \"\"Best\"\" is a subjective term. However relying on the resources of the larger institutions by pooling with them will definitely reduce your own burden with regards to the research and keeping track. So yes, investing in mutual funds and ETFs is a very sound strategy. It would be better to diversify, and not to invest all your money in one fund, or in one industry/area. That said, there are more than enough individuals who do their own research and stock picking and invest, with various degrees of success, in individual securities. Some also employe more advanced strategies such as leveraging, options, futures, margins, etc. These advance strategies come at a greater risk, but may bring a greater rewards as well. So the answer to the question in the subject line is YES. For all the rest - there's no one right or wrong answer, it depends greatly on your abilities, time, risk tolerance, cash available to invest, etc etc.\"",
"title": ""
},
{
"docid": "be3f373f8d70b137501de20014c0ab9d",
"text": "> So what’s the problem? When investors put their money in an index like the S&P 500, they believe that they are just investing in “the market”, broadly. But now, these for-profit indices have made an active decision to exclude certain stocks on the basis of their voting structures. The author doesn't seem to understand the difference between the companies creating the passive funds that track the indices and the companies creating the indices that are being tracked. Indices have always been subject to somewhat arbitrary rules for what is being included and how its value is calculated. So this article is completely missing the point.",
"title": ""
},
{
"docid": "679be605950dfa4c18994648a37208cd",
"text": "So, first -- good job on making a thorough checklist of things to look into. And onto your questions -- is this a worthwhile process? Even independent of specific investing goals, learning how to research is valuable. If you decided to forgo investing in stocks directly, and chose to only invest in index funds, the same type of research skills would be useful. (Not to mention that such discipline would come in handy in other fields as well.) What other 80/20 'low hanging fruit' knowledge have I missed? While it may not count as 'low hanging fruit', one thing that stands out to me is there's no mention of what competition a company has in its field. For example, a company may be doing well today, but you may see signs that it's consistently losing ground to its competition. While that alone may not dissuade you from investing, it may give you something to consider. Is what I've got so far any good? or am I totally missing the point. Your cheat sheet seems pretty good to me. But a lot depends on what your goals are. If you're doing this solely for your education and experience, I would say you've done well. If you're looking to invest in a company that is involved in a field you're passionate about, you're on the right track. But you should probably consider expanding your cheat sheet to include things that are not 'low hanging fruit' but still matter to you. However, I'd echo the comments that have already been made and suggest that if this is for retirement investments, take the skills you've developed in creating your cheat sheet and apply that work towards finding a set of index funds that meet your criteria. Otherwise happy hunting!",
"title": ""
},
{
"docid": "8a068fa190333f4dd6c787d7870e26db",
"text": "Sorry, but obeying the law is ethical. You're silly symbols are wrong... you probably meant: legal != ethical Here is a thought experiment for you: So the speed limit is 60 Mph. You drive 15 Mph in that area, that is ethical driving, because there is no law governing the minimum rate of speed. It's like that... You might be an asshole for driving too slow, but you're not breaking the law. Tax is like that...",
"title": ""
},
{
"docid": "44ae3d4bba0e22b861697888d10c402a",
"text": "When you start confusing morality with legality is when you enable corporations to take advantage of you. Consider the scenario if the roles were reversed. If the bank owned money to *you*, do you think they would hesitate to default on that obligation for even a nanosecond if it was in their best interests to do so?",
"title": ""
},
{
"docid": "367d7c4e582b1dab27baf98686a745e7",
"text": "It's also an incorrect assumption. I assume that we're looking at the S&L scandal as one of the three, and it wasn't very connected to Ivy leaguers. Only one of the Keating 5 went to an Ivy, and S&L's generally weren't run by Ivy grads. Investment banks are, especially these days, but that doesn't show a disproportionate likelihood of immorality among Ivies when compared to any other subset of the population.",
"title": ""
},
{
"docid": "b990865408156bb2715fe8bcd64b1ad3",
"text": "A practical issue is that insider trading transfers wealth from most investors to the few insiders. If this were permitted, non-insiders would rarely make any money, and they'd stop investing. That would then defeat the purpose of the capital markets which is to attract capital. A moral issue is that managers and operators of a company should act in shareholders' interests. Insider trading directly takes money from other shareholders and transfers it to the insider. It's a nasty conflict of interest (and would allow any CEO of a public company to make ton of money quickly, regardless of their job performance). In short, shareholders and management should succeed or suffer together, so their interests are as aligned as possible and managers have the proper incentives.",
"title": ""
},
{
"docid": "fe2aca48fc1afdc119c92468c2111de1",
"text": "\"The golden rule is \"\"Pay yourself first.\"\" This means that you should have some form of savings plan set up, preferably a monthly automatic withdrawal that comes out the day after your pay is deposited. 10% is a reasonable number to start with. You are in a wonderful situation because you are thinking about this 10-15 years before most of us do. Use this to your advantage. You are also in a good situation if you can defer the purchase of the house (assuming prices don't rise drastically in the next few years -- which they might.) If your home situation is acceptable, then sit down with the parents and present a plan. Something along the lines of: I'd like to move out and start my life. However, it would be advantageous to stay here for a few years to build up a down payment and reserve. I'm happy to help out with expenses, but do need a couple years of rent-free support to get started. Then go into monk mode for one year. It's doable, and you can save a lot of cash. Then you're on the road to freedom.\"",
"title": ""
},
{
"docid": "76a9ed4fab9cd5cc581ca44a192f6936",
"text": "\"From Wikipedia: Managerial accounting is used primarily by those within a company or organization. Reports can be generated for any period of time such as daily, weekly or monthly. Reports are considered to be \"\"future looking\"\" and have forecasting value to those within the company.** Financial accounting is used primarily by those outside of a company or organization. Financial reports are usually created for a set period of time, such as a fiscal year or period. Financial reports are historically factual and have predictive value to those who wish to make financial decisions or investments in a company. At my university, managerial accounting focused more on the details of how costs were managed in the company, the future of the business, etc. while the courses that were considered financial accounting were more from the point of view of a financial analyst or investor, like you said. The financial accountancy material covered analysis of financial statements and the associated investment decisions, among other things. These areas overlapped in areas like the production of financial statements, since the company also needs to consider how analysts will interpret these statements, and dividend policy, corporate tax accounting, etc. The Wikipedia articles on managerial accounting and financial accounting may provide helpful information as well. Disclaimer: I took an introductory accounting course in university and nothing more, so my knowledge of the course structures, even at my alma mater, is secondhand recollection at best. I'm sure there are more similarities and differences of which I'm unaware, and I would assume that forensic accountants, auditors, etc. dabble in both these areas and others.\"",
"title": ""
}
] |
fiqa
|
2001cb770b479d2f3627931b4bd5d3d9
|
What type of insurance would protect you against the Amazon 1p bug?
|
[
{
"docid": "9a4e7fc0bf4e90711a42264e05be3146",
"text": "I believe the appropriate recourse in this scenario is to bring a court case for breach of contract. The 1p repricing issue has been admitted as an error out of scope of the purpose of the software.",
"title": ""
}
] |
[
{
"docid": "ef551aae36a2701bbd7ffe1feb39d5e6",
"text": "\"i dont know how they would buy *term* policies though, i suppose there is an actuarial value to the policy (ie. you might die during the policy term). A lot of these polices are \"\"10 year term\"\" or something like that, so the actuarial value might be significant. (a lot of people get these who cant get whole life or cant afford to get it, with the health problems they now have). Something tells me these transactions are not very advantageous to the insured (especially since i've seen them heavily advertised on channels my mom tends to watch)\"",
"title": ""
},
{
"docid": "6e81bf8a1bf5de00804b5de94b6a7118",
"text": "\"I am leaning more towards the belief that Amazon registered for the patent to keep other competitors from using such a system. I mean, the article even states: \"\"The Washington Post is owned by Jeff Bezos.\"\" You'd have to be an imbecile to allow a newspaper organization that you own to post an article that is defaming your latest patent. As sick of a human being Jeff may be, he's a billionaire for one reason: brilliance. He intended to have this information released to competitors. Nonetheless, this is a very ominous and scary technological innovation. The rapid, unrestricted pace of technology is beginning to frighten me.\"",
"title": ""
},
{
"docid": "89dda066ba2eec4f675e094aaa531a4e",
"text": "\"First off, the jargon you are looking for is a hedge. A hedge is \"\"an investment position intended to offset potential losses/gains that may be incurred by a companion investment\"\" (http://en.wikipedia.org/wiki/Hedge_(finance)) The other answers which point out that put options are frequently used as a hedge are correct. However there are other hedging instruments used by financial professionals to mitigate risk. For example, suppose you would really prefer that Foo Corporation not go bankrupt -- perhaps because they own you money (because you're a bondholder) or perhaps because you own them (because you're a stockholder), or maybe you have some other reason for wanting Foo Corp to do well. To mitigate the risk of loss due to bankruptcy of Foo Corp you can buy a Credit Default Swap (http://en.wikipedia.org/wiki/Credit_default_swap). A CDS is essentially a bet that pays off if Foo Corp goes bankrupt, just as insurance on your house is a bet that pays off if your house burns down. Finally, don't ever forget that all insurance is not just a bet that the bad thing you're insuring against is going to happen, it is also a bet that the insurer is going to pay you if that happens. If the insurer goes bankrupt at the same time as the thing you are insuring goes bad, you're potentially in big trouble.\"",
"title": ""
},
{
"docid": "759a233a96806f93816c5a6d2e5187e1",
"text": "That's not true - insurance companies can manage that risk and look to Re-insure that risk with very large pools of risk capital through reinsurance. Government agencies traditionally have not looked to buy insurance but are now starting to insure such catastrophic risks. I believe the NFIP has some sort of excess risk cover such that if losses are greater than $500 million, then it triggers a payout from large private insurers.",
"title": ""
},
{
"docid": "a97a55ff1d603849bb7ca369e42394b4",
"text": "\"SIPC is a corporation - a legal entity separate from its owners. In the case of SIPC, it is funded through the fees paid by its members. All the US brokers are required to be members and to contribute to SIPC funds. Can it go bankrupt? Of course. Any legal entity can go bankrupt. A person can go bankrupt. A country can go bankrupt. And so can anything in between. However, looking at the history of things, there are certain assumptions that can be made. These are mere guesses, as there's no law about any of these things (to the best of my knowledge), but seeing how things were - we can try and guess that they will also be like this in the future. I would guess, that in case of a problem for the SIPC to meet its obligation, any of the following would happen (or combinations): Too big to fail - large insurance companies had been bailed out before by the governments since it was considered that their failure would be more destructive to the economy than the bailout. AIG as an example in the US. SIPC is in essence is an insurance company. So is Lloyd's of London. Breach of trust of the individual investors that can lead to a significant market crash. That's what happened in the US to Fannie Mae and Freddie Mac. They're now \"\"officially\"\" backed by the US government. If SIPC is incapable of meeting its obligation, I would definitely expect the US government to step in, even though there's no such obligation. Raising funds through charging other members. If the actuary calculations were incorrect, the insurance companies adjust them and raise premiums. That is what should happen in this case as well. While may not necessarily solve a cashflow issue, in the long term it will allow SIPC to balance, so that bridge loans (from the US government/Feds/public bonds) could be used in between. Not meeting obligations, i.e.: bankruptcy. That is an option, and insurance companies have gone bankrupt before. Not unheard of, but from the past experience - again, I'd expect the US government to step in. In general, I don't see any significant difference between SIPC in the US and a \"\"generic\"\" insurance coverage elsewhere. Except that in the US SIPC is mandatory, well regulated, and the coverage is uniform across brokerages, which is a benefit to the consumer.\"",
"title": ""
},
{
"docid": "051f2276a2b472127997c5a796a57e55",
"text": "All lenders make money from loans, despite the fact that there will be some defaults, they just have to make enough money from those that don't default to offset the losses from those that do, so that their over all profit is good enough to be justified, so there's no reason the p2p lending companies can't protect your loan. If you remove the risk of losing your investment you can expect your return to be reduced though, as they have to take more profit away from you in order to fund the pool used to pay out when there is a default. This doesn't necessarily mean your money is completely safe though, if the p2p lender itself went bust you would probably still lose your money, unless it was appropriately insured. I'm not sure liquidity is really the right word really, liquidity is about encashment without serious penalty. If you can transfer the debt to someone else at any time then liquidity is good, but if you don't really have that option (as most lenders don't) then your investment amount (whatever isn't paid back yet) is completely illiquid still, just for a shorter time. I don't see how the term is important myself, there are many investments that have differing maturity time scales, and you just have to pick one that has a suitable time scale, return and risk for you. 1% charge or not, there is still an ultimate net return on investment, secondary market or not. Virtually any investment has costs of some sort, you just have to take them into account and make sure you don't get fooled into thinking the ROI is better than it seems because of the way they've packaged and presented it.",
"title": ""
},
{
"docid": "afb9f91c13c757a3611295ae29dbd359",
"text": "In general, damage caused intentionally as well as contractual liability are not covered under liability insurance policies. Direct quote from your source... Use some logic. How can a company be profitable insuring stupidity? Show me an example where gross negligence was covered by an insurance company and billions paid out. that's all I ask....",
"title": ""
},
{
"docid": "5feb5f8b82c3b4fc1291b1a222dbae55",
"text": "To make matters worse, many, perhaps most, of the common POS systems seem to be based on Windows XP and are running AV, neither of which have ever been updated. Merchants have no idea how much they're at risk. Fortunately, there are non-Windows POS systems, and POS that will run on newer versions of Windows. But merchants have to demand those.",
"title": ""
},
{
"docid": "75055274917ce7ca792f1db9df005174",
"text": "\"Just coughed out my morning coffee on this one. I bet even Bezos leaves disabled the \"\"buy without confirmation\"\" option in his Alexa config. That shit could be potentially dangerous. ...then again, dude is a billionaire. Maybe he doesn't care if Alexa accidently orders him a $20,000 sofa when he was just looking to buy more cereal.\"",
"title": ""
},
{
"docid": "54bb445de033c81fb0cf87b81e81f6cb",
"text": "I'll give it a shot, even though you don't seem to be responding to my comment. SIPC insures against fraud or abuse of its members. If you purchased a stock through a SIPC member broker and it was held in trust by a SIPC member, you're covered by its protection. Where you purchased the stock - doesn't matter. There are however things SIPC doesn't cover. That said, SIPC members are SEC-registred brokers, i.e.: brokers operating in the USA. If you're buying on the UK stock exchange - you need to check that you're still operating through a US SIPC member. As I mentioned in the comment - the specific company that you mentioned has different entities for the US operations and the UK operations. Buying through them on LSE is likely to bind you with their UK entity that is not SIPC member. You'll have to check that directly with them.",
"title": ""
},
{
"docid": "8e8f67d9c662da5f7b053f4f3406ee69",
"text": "It tells you more about some of the convoluted rules put in place by FDA and ither regulatory agencies. It's next to impossible to introduce a true generic competitor. Really not a issue with the insurer as they must cover stuff only approved via the Fed agencies.",
"title": ""
},
{
"docid": "7d521679378f98bf85317e23e590eddc",
"text": "\"My thought is it is a \"\"safe bet\"\" as far as stocks go. Amazon is going to be around for a long time and is very innovative. I am willing to bet most people purchase the stock on that fact alone. Not its P/E and ROE.\"",
"title": ""
},
{
"docid": "7f87075f1e043582b0fc0951329708af",
"text": "The article mentions it briefly, but this is likely a defensive patent. So much of Amazon's business comes from cross-checking or reading reviews in retail stores. I bet they just want to make sure people can still do that.",
"title": ""
},
{
"docid": "a11b3faa4f2d442093ab3f4f0a497ccc",
"text": "\"If your meaning of \"\"asset protection\"\" is buying gold and canned food in the name of a Nevada LLC because some radio guy said so, bad idea. For a person, if you have assets, buy appropriate liability limits with your homeowner/renter insurance policy or purchase an \"\"umbrella\"\" liability policy. This type of insurance is cheap. If you don't have assets, it may not be worth the cost of insuring yourself beyond the default limits on your renter's or homeowner's policy. If you have a business, you need to talk to your insurance agent about what coverage is appropriate for the business as a whole vs. you personally. You also need to talk to your attorney about how to conduct yourself so that your business interests are separated from your personal interests.\"",
"title": ""
},
{
"docid": "9898784d2a734bcb80dcf5e954f19d2c",
"text": "\"I decline politely. The cost of the insurance policy has two components: The actual cost of a likely repair + profit. If I set aside the cost of a likely repair myself, then I get to keep the profit. If the item doesn't break, I get to keep the \"\"repair\"\" money too :)\"",
"title": ""
}
] |
fiqa
|
3d5b118e1c21c5790c504076a879d110
|
Paying restaurants in cash instead of credit card - how signficant is this?
|
[
{
"docid": "0c37df888e88a0aa21a06d7f16d7bf8f",
"text": "Credit cards charge about 2% fee from merchants. This is already priced into the restaurant menu. Generally, dealing with cash will not cost the merchant significantly less since he needs to make more trips to the bank, pay fees for frequent cash deposits (banks charge per operation), and maintain a safe location for storage of that cash. Bottom line - I doubt it makes any significant difference to the restaurant owner.",
"title": ""
},
{
"docid": "bb61a842ce680b93e02b19b67966b87f",
"text": "The biggest advantage to small business owners paid in cash is not that it might save the 2 or 3 percent that would go to the credit card company. The biggest advantage is that they have the opportunity to keep the transaction entirely off the books and pocket the cash without paying income tax or sales tax, especially when no receipt is given, or when it's a service instead of a product being sold, or when it's an approximately-tracked inventory unit going out the door. Although it's illegal, it's widely done, and it's also often a temptation for employees to try and get away with doing it too.",
"title": ""
},
{
"docid": "8eae4250e2e3489c53d593d1700969d9",
"text": "You know those perks/benefits that you don't want to give up? Those are funded by the fees you are trying to eliminate by paying cash. The credit card company makes money by interest, merchant fees, and other fees such a annual fees. They give you perks to generate more transactions, thus bringing in more merchant fees. For a small business they need to balance the fee of the credit card transaction with the knowledge that it is convenient for many customers. Some small businesses will set a minimum card transaction level. They do this because the small transaction on a credit card will be more expensive because the credit card company will charge 2% or 50 cents whichever is larger. Yes a business does figure the cost of the cards into their prices, but they can get ahead a little bit if some customers voluntarily forgo using the credit card.",
"title": ""
}
] |
[
{
"docid": "34c0ca2bb90dd623af001de51d16eae9",
"text": "Possible (unlikely) reasons: But usually, yeah, if you can pay cash, you should.",
"title": ""
},
{
"docid": "5b0d95869358bf04e59f28abbe0058a2",
"text": "\"Ever wonder why certain businesses won't accept certain credit cards? (The sign above the register saying \"\"Sorry, we don't accept AmericanExpress\"\"). It's because they don't want to pay that credit card company's transaction fees. One of the roles of the credit card company is to facilitate the transaction process between the customer (you) and the store. And now that using credit cards over cash or check is so ingrained in our culture, it creates extra work for the customer to make purchases at an establishment that is cash-only. Credit card companies know this, and so do businesses. So businesses will partner with credit card companies so that customers can use their cards. This way, everything is handled electronically (this can also benefit the business, since there's added security as they're not dealing with cash directly, and they don't have to manually count as much cash later). However a business may only budget a certain amount of their profits they want taken by credit card transactions. So if a company's fees are too high (say AmericanExpress, for example) and they are banking on you already having a Visa card, the company isn't going to go out of its way to provide the AmericanExpress option for you. If it were free for the business to use a credit card company's service at their stores, then they would all just provide the option for every card! So the credit card company making money is all contingent on you spending your money by using their credit card. You use the card, and the store pays the company for the transaction.\"",
"title": ""
},
{
"docid": "c19618a500f0b0a78fc6107cc630179f",
"text": "[Cash In Hand Loans] (http://www.cashinhandloans.co.uk) are extremely short-term loans that diverge among for a months. These loans are very useful for people who are in terrible require of cash at a very small notice before the after that payday. The payday loans no papers do have different positives like fast approval, no paperwork. Cash in hand loans arrange the appropriate loans deals for the all borrowers who are residing in U K.",
"title": ""
},
{
"docid": "005e07c2a709929f6b8fb66f86f38363",
"text": "It is possible to not use checks in the US. I personally use a credit card for almost everything and often have no cash in my wallet at all. I never carry checks with me. If we wanted to, we could pay all of our monthly bills without checks as well, and many people do this. 30 years ago, grocery stores didn't generally accept credit cards, so it was cash or check, though most other kinds of stores and restaurants did. Now, the only stores that I have encountered in years that do not accept credit cards are a local chicken restaurant, and the warehouse-shopping store Costco. (Costco accepts its own credit card, but not Mastercard or Visa.) Still, we do pay the majority of our monthly bills via check, and it would not be shocking to see someone paying for groceries with a check. I can't name the last time I saw someone write a check at a store exactly, but I've never seen any cashier or other patrons wonder what a check-writer was trying to do. Large transactions, like buying a car or house, would still use checks -- probably cashier's or certified checks and not personal checks, though.",
"title": ""
},
{
"docid": "aaa3ec379f9df134bba3510cf8516729",
"text": "Why would such a large discount make business sense to the restaurant? The legit reasons could be; Or can I assume that the restaurant is trying to avoid leaving a paper trail so that they could avoid paying tax? The illegal reasons could be;",
"title": ""
},
{
"docid": "fc2ade6041922447eedfb53677d9184a",
"text": "\"Here's another rational reason: Discount. This typically works only in smaller stores, where you're talking directly to the owners, but it is sometimes possible to negotiate a few percent off the price when paying by check, since otherwise they'd have to give a few percent to the credit card company. (Occasionally the sales reps at larger stores have the authority to cut this deal, but it's far less common.) Not worth worrying about on small items, but if you're making a large purchase (a bedroom suite, for example) it can pay for lunch. And sometimes the store's willing to give you more discount than that, simply because with checks they don't have to worry about chargebacks or some of the other weirdnesses that can occur in credit card processing. Another reason: Nobody's very likely to steal you check number and try to write themselves a second check or otherwise use it without authorization. It's just too easy to steal credit card info these days to make printing checks worth the effort. But, in the end, the real answer is that there's no rational reason not to use checks. So it takes you a few seconds more to complete the transaction. What were you going to do with those seconds that makes them valuable? Especially if they're seconds that the store is spending bagging your purchase, so there's no lost time... and the effort really isn't all that different from signing the credit card authorization. Quoting Dean Inge: \"\"There are two kinds of fool. One says 'this is old, and therefore good.' The other says 'this is new, and therefore better.'\"\"\"",
"title": ""
},
{
"docid": "e4502fb18066fc053cd52c0aca1090f1",
"text": "You don't need credit cards but there are few benefits, if you pay them off right away I assume you do have a debit card, since sometimes (like unattended gas stations or shopping on the web) cash is not accepted.",
"title": ""
},
{
"docid": "b5ee1e17e8e4b943fe7322831dec28f6",
"text": "\"Imagine two restaurants. One has prices 15% higher than the other, and the owner pays this 15% to his wait staff in the form of higher wages. The other has lower prices, but the average customer gifts 15% to their waiter. Clearly, in the first restaurant, the 15% the wait staff receives is taxable income. It is traditional salary. What legitimate, economic justification is their for treating the second restaurant any differently? Imagine a grocery store in a small town that offered long-time customers a \"\"pay nothing\"\" option but made it clear that they'd be subject to social ostracism and no longer welcome in the store if they didn't gift 85% of the usual cost of the items. The customers would save on sales tax and the grocer would argue that all that money was gifts, not income. Of course this doesn't work. The IRS, and the laws, don't care very much about what you call things. They care about the underlying economic reality. If the money was part of the payment for the services rendered, regardless of how it was delivered, what the parties called it, or whether the obligation to pay was legal or social, it's still a payment for the service and it's still taxable. You would have to be able to argue to the IRS that it really was a gift and wasn't any form of payment for the service received. Otherwise, it's just a scheme to evade taxes.\"",
"title": ""
},
{
"docid": "a2e171b19fa049ba5912fa645f1a8a9f",
"text": "> If a crook standing behind me in line seems me enter my pin Easy to prevent with a cover over your fingers. Hey! Do you mind giving your credit card to the waiter... who takes it to the back of the restaurant... gods knows what he does with YOUR credit card. writing down the number... scanning it... copying it... I am sure the waiter has a clean background... never ever ex-criminals get hired as waiters... high standards for waiters... and then the waiter give the card back to you so you can tip him? Don't forget to sign the receipt... so the waiter also have your most recent signature. Or, do you prefer the card in your hand, while you scan it and then enter a PIN on a mobile device you hold in your hand? How much fraud with ATM cards versus credit cards? > If he sees me sign my name he's less likely to do that. We already determined that nobody even care about signatures or check them. Have you EVER have a case that your signature was questioned? No? Well, try an experiment in the next week: always sign with a totally new and made-up signature. Then, let me know if even one transaction was rejected.",
"title": ""
},
{
"docid": "70be767cf8054746efe00c029e2349f2",
"text": "\"The bottom line is that you are kind of a terrible customer for them. Granted you are far better than one that does not pay his bills, but you are (probably) in the tier right above that. Rewards cards are used to lure the unorganized into out of control interest rates and late payments. These people are Capital One's, and others, best customers. They have traded hundreds of dollars in interest payments for a couple of dollars in rewards. The CC company says: \"\"YUMMY\"\"! You, on the other hand, cut into their \"\"meager\"\" profits from fees collected from your transactions. Why should they help you make more money? Why should they further cut into your profits? Response to comment: Given your comment I think the bottom line is a matter of perspective. You seem like a logical, altruistic type person who probably seeks a win-win situation in business dealings. This differs from CC companies they operate to seek one thing: enslavement. BTW the \"\"terrible customer\"\" remark should be taken as a compliment. After you get past the marketing lies you begin to see what reward programs and zero percent financing is all about. How do most people end up with 21%+ interest rates? They started with a zero percent balance loan, and was late for a payment. Reward cards work a bit differently. Studies show that people tend to spend about 17% more when they use a reward card. I've caught myself ordering an extra appetizer or beer and have subsequently stopped using a reward card for things I can make a decision at the time of purchase. For people with tight budgets this leads to debt. My \"\"meager\"\" profits paragraph makes sense when you understand the onerous nature of CC companies. They are not interested in earning 2% on purchases (charge 3% and give back 1%) for basically free money. You rightly see this as what should be a win-win for all parties involved. Thus the meager in quotation marks. CC companies are willing to give back 1% and charge 3% if you then pay 15% or more on your balance. Some may disagree with me on the extracting nature of CC companies, but they are wrong. I like him as an actor, but I don't believe Samuel Jackson's lines.\"",
"title": ""
},
{
"docid": "f0dd41d0517af2ceda26e49c4584a138",
"text": "You said: Use a credit card (to get my 3% Cash back) to withdraw cash ... Then you said: Is there any way to do this without paying a cash advance fee (or any fees in general)? Right there you have stated the inconsistency. Withdrawing cash using a credit card is a cash advance. You may or may not be charged a fee for doing the cash advance, but no credit card will offer you cash back on a cash advance, so you can't earn your 3% by using cash advances. As others have mentioned, you can sometimes get close by using the card to purchase things that are almost like cash, such as gift cards. But you have to make a purchase.",
"title": ""
},
{
"docid": "013e7bbdcf2f60f8c14ed6aeb7d90a95",
"text": "\"This is most likely protecting Square's relationship with Visa/Mastercard/AMEX/etc. Credit card companies typically charge their customers a much higher interest rate with no grace period on cash advances (withdrawals made from an ATM using a credit card). If you use Square to generate something that looks like a \"\"merchandise transaction\"\" but instead just hand over a wad of banknotes, you're forcing the credit card company to apply their cheaper \"\"purchases\"\" interest rate on the transaction, plus award any applicable cashback offers†, etc. Square would absolutely profit off of this, but since it would result in less revenue for the partner credit card companies, that would quickly sour the relationship and could even result in them terminating their agreements with Square altogether. † This is the kind of activity they are trying to prevent: 1. Bill yourself $5,000 for \"\"merchandise\"\", but instead give yourself cash. 2. Earn 1.5% cashback ($75). 3. Use $4,925 of the cash and a $75 statement credit to pay your credit card statement. 4. Pocket the difference. 5. Repeat. Note, the fees involved probably negate any potential gain shown in this example, but I'm sure with enough creative thinking someone would figure out a way to game the system if it wasn't expressly forbidden in the terms of service\"",
"title": ""
},
{
"docid": "2f23b324328a3959962de22867d43218",
"text": "\"Like many things, there are pros and cons to using credit cards. The other folks on here have discussed the pros and length, so I'll just quickly summarize: Convenience of not having to carry cash. Delay paying your bills for a month with no penalty. Build your credit rating for a time when you need a big loan, like buying a house or starting a business. Provide easy access to credit for emergencies or special situations. Many credit cards provide \"\"rewards\"\" of various sorts that can effectively reduce the cost of what you buy. Protection against fraud. Extended warranty, often up to one year Damage warranty, covering breakage that might be explicitly excluded from normal warranty. But there are also disadvantages: One of the advantages of credit cards -- easy access to credit -- can also be a disadvantage. If you pay with cash, then when you run out of cash, you are forced to stop buying. But when you pay with credit, you can fall into the trap of buying things that you can't afford. You tell yourself that you'll pay for it when you get that next paycheck, but by the time the paycheck arrives, you have bought more things that you can't afford. Then you have to start paying interest on your credit card purchases, so now you have less money left over to pay off the bills. Many, many people have gotten into a death spiral where they keep piling up credit card debt until they are barely able to pay the interest every month, never mind pay off the original bill. And yes, it's easy to say, \"\"Credit cards are great as long as you use them responsibly.\"\" That may well be true. But some people have great difficulty being responsible about it. If you find that having a credit card in your pocket leads you to just not worry about how much you buy or what it costs, because, hey, you'll just put it on the credit card, then you will likely end up in serious trouble. If, on the other hand, you are just as careful about what you buy whether you are paying cash or using credit, and you never put more on the credit card than you can pay off in full when the bill arrives, then you should be fine.\"",
"title": ""
},
{
"docid": "36924652e1eab2efe3936bc0c4543262",
"text": "\"You should see \"\"Restaurant Impossible\"\" on TV, shows exactly how you'll end up if you take this direction. Bottom line - yes, it is usually bad. There's a race condition there in the hiding: you either learn the ropes as you go, or you run out of money and go bankrupt, whichever comes first. My personal experience shows that things that seem simple from the outside may become very very complex once you're actually inside. As an engineer I know perfectly well that the devil is in the details. As an investor I know not to step into something I don't know how to step out of. If someone sells something - you should give a thought as to why they're selling. Is the restaurant making money? What's the cashflow? Are there underlying issues? What are the development plans in the neighborhood for the foreseeable future? What's the clientele, and what are the trends? What's with the competition? Can you answer these questions? If not - you're not in a position to enter the business.\"",
"title": ""
},
{
"docid": "980123d8da7cef03e7dd8c49a9b7197d",
"text": "My experience is in the United States only. In the past, American Express marketed its products as more exclusive and prestigious than other cards. There was an attempt to give the impression that cardholders were more qualified financially. In return, fees were higher both to merchants and to cardholders. At the time (early 1990's), it was not common to use credit cards for small purchases, such as groceries or fast food. Credit cards were used for larger purchases such as jewelry or electronics or dinner in a nicer restaurant. Once it became popular to use credit cards for everyday purchases, the demand for customers using credit cards changed to the highest number of people instead of people of higher status. At that point, Visa (and to a lesser extent Mastercard) transaction volume increased dramatically. Merchants needed the largest number of customers with cards, not the most financially stable. As Visa volume grew, and people started using Visa for small purchases, the use of American Express decreased as their habits changed (once someone got used to pulling out Visa, they did it in every situation). Merchants are less willing to go through the extra hassle of accepting cards that are used by fewer people. Over time, I suspect this process led to the gap between Visa and American Express. As a merchant, in order to accept credit cards, you have to set up a bank account and maintain a merchant account. Accepting Visa, MC and Discover can all be done through one account, but American Express has traditionally required a separate relationship, as well as its own set of rules and fees that were generally higher. Since there are relatively few American Express cardholders compared to Visa, there is doubt about whether it is worth it accept the card. It depends upon the customer base. Fine restaurants still generally accept American Express.",
"title": ""
}
] |
fiqa
|
5f13f8c8179d2e30150d1c89c1c81142
|
How to acquire assets without buying them?
|
[
{
"docid": "9cf24905eb8a622c1f126f7420ec46f5",
"text": "Assets can be acquired in different ways and for different purposes. I will only address common legal ways of acquiring assets. You can trade one asset for another asset. This usually takes place in the form of trading cash or a cash equivalent for an asset. The asset received should be of equal or greater value than the asset given in the eyes of the purchaser in order for the trade to be rational. Take this example: I am selling a bike that has been sitting on my porch for a few months. It's worth about $25 to me. My friend, Andy, comes by and offers $90 for it. I happily accept. Andy valued the bike at $110. This transaction produced value for both parties. I had a value benefit of $65 (90 - 25) and Andy had a value benefit of $20 (110 - 90). You can receive an asset as a gift or an inheritance. Less common, but still frequent. Someone gives you a gift or a family member dies and you receive an asset you did not own previously. You can receive an asset in exchange for a liability. When you take out a loan, you receive an asset (cash) which is financed by a liability (loan payable). In your case: Why would I buy a mall if having assets worth the same amount as the mall? I must value the mall more than the assets I currently have. This may stem from the possibility of greater future returns than I am currently making on my asset, or, if I financed the purchase with a liability, greater future returns than the cost associated with payment on the principal and interest of the liability.",
"title": ""
},
{
"docid": "0dae3c71c0be6a7e8dbc23075eadc0e3",
"text": "Your question seems to be premised on your personal understanding of economics, and asking that people present to you an explanation of business transactions that is consistent with your own personal worldview. But your premises are flawed, so an accurate answer should not accept them. The basics of trade is that something is worth more to one person than another; a wheat farmer has more wheat that they could possibly eat, and so it has no value other than what they can get by selling it, while an accountant will starve if they do not have any food and thus is willing to pay what the market demands. The two parties can both be better off by having a transaction. The other motivation for transactions is that parties may disagree as to what something is worth; even if one party will lose from the transaction, they may both believe they will profit.",
"title": ""
},
{
"docid": "1b2dd431b4ecc0f4628fb920d23cf43c",
"text": "You don't start out buying a shopping mall, you have to work up to it. You can start with any amount and work up to a larger amount. For me, I saved 30% of my salary(net), investing in stocks for 8 years. It was tough to live on less, but I had a goal to buy passive income. I put down this money to buy 3 houses, putting 35% down and maintaining enough cash to make 5 years of payments. I rented out the houses making a cap of 15%. The cap is the net payment per year / cost of the property, where the net accounts for taxes and repairs. I did not spend any of the profits, but I did start saving less salary. After 5 years of appreciation, mortgage payments and rental profit, I sold one house to get a loan for a convenience store. Buildings go on the market all the time, it takes 14 years to directly recoup an investment at a 7% cap, which is the average for a commercial property sale. Many people cash out for this reason, it's slow, but steady growth, though the earnings on property appreciation is a nice bonus. Owning real estate is a long term game, after a long time of earning, you can reinvest, but it comes with the risk of bad or no tenants. You can start both slower and smaller, just make sure you're picking up assets, not liabilities. Like investing in cars is generally bad unless you are sure it will appreciate.",
"title": ""
},
{
"docid": "4078a96aeff4715cb00cb0d8b5b0b48e",
"text": "There are a number of ways someone acquires assets without buying it. People could have inherited assets. They could have been gifted assets. They might have won assets in a lawsuit (unlikely to be a mall, but not impossible). They could have married into the assets. So there's other ways of acquiring assets without purchasing them.",
"title": ""
}
] |
[
{
"docid": "bb750db5c4afe36515022584db08d3dd",
"text": "There is no reason to ever do DCA. You'll notice that no asset managers would ever dream of it. You should invest your money as soon as you get it. Throughout history, this is the utility maximizing choice. The market rises on average. Why would you keep money out of it?",
"title": ""
},
{
"docid": "4be1712bc31d7fa78eee37ac2c171b30",
"text": "\"Your question asks \"\"how\"\" but \"\"if\"\" may be your issue. Most companies will not permit an external transfer while still employed, or under a certain age, 55 or so. If yours is one of the rare companies that permits a transfer, you simply open an IRA with the broker of your choice. Schwab, Fidelity, eTrade, or a dozen others. That broker will give you the paperwork you need to fill out, and they initiate the transfer. I assume you want an IRA in which you can invest in stocks or funds of your choosing. A traditional IRA. The term \"\"self-directed\"\" has another meaning, often associated with the account that permits real estate purchases inside the account. The brokers I listed do not handle that, those custodians have a different business model and are typically smaller firms with fewer offices, not country-wide.\"",
"title": ""
},
{
"docid": "230984d1dc54df5eba50d8d40e9b1046",
"text": "Most likely, this will not work they way you think. First things first, to get a loan, the bank needs to accept your collateral. Note that this is not directly related to the question what you plan to do with the loan. Example: you have a portfolio of stocks and bonds worth USD 2 million. The bank decides to give you a loan of USD 1 million against that collateral. The bank doesn't care if you will use the loan to invest in foreign RE or use it up in a casino, it has your collateral as safety. So, from the way you describe it, I take it you don't have the necessary local collateral but you wish to use your foreign investments as such. In this case it really doesn't matter where you live or where you incorporate a company, the bank will only give you the loan if it accepts the foreign collateral. From professional experience with this exact question I can tell you, there are very few banks that will lend against foreign property. And there are even less banks, if any, that will lend against foreign projects. To sum it up: Just forget banks. You might find a private lender to help you out but it will cost you dearly. The best option you have is to find a strategic partner who can cough up the money you need but since he is taking the bigger risk, he will also take the bigger profit share.",
"title": ""
},
{
"docid": "e43f9d61bad87cff37e8eca0c342c31e",
"text": "I find that when I have to justify why I want something to someone else, I eliminate impulse buys because I have to think about it enough to explain to someone else why it is desirable. Simply going through that process in my own head in advance of a conversation to justify it I talk myself out of a lot of purchases. I'm married, so I have these conversations with my wife. She is very supportive of me buying things that I want if they will bring value. If I wasn't married and couldn't control my spending, I'd find a good friend or relative that I trust, and I would create a trust with me as the primary beneficiary, and I would appoint a trustee who was willing to sign off on any purchase that I wanted to make after justifying it to them. If I had no friends or relatives that I trusted in that role, I'd hire a financial adviser to fill the same role. Contractually I would want to be able to terminate the arrangement if it was not working, but that would mean sacrificing the legal fees to alter the trust and appoint a new trustee.",
"title": ""
},
{
"docid": "b150e9c76963f936b4a6cfa0b2a5ae48",
"text": "\"I'll skip the \"\"authorizing....\"\" and go right to uses of new shares: Companies need stock as another liquid asset for a variety of purposes, and if not enough stock is available, then may be forced to the open market to acquire, either by exchanging cash or taking on debt to get the cash.\"",
"title": ""
},
{
"docid": "ad563586bd99c80f736b254758cb0f82",
"text": "You can put it in a CD, or use a CD investment service like http://www.jumbocdinvestments.com/ (no affiliation).",
"title": ""
},
{
"docid": "49f29b55b33e9105340e11bfb78539e9",
"text": "You also may want to consider how this interacts with the stepped up basis of estates. If you never sell the stock and it passes to your heirs with your estate, under current tax law the basis will increase from the purchase price to the market price at the time of transfer. In a comment, you proposed: Thinking more deeply though, I am a little skeptical that it's a free lunch: Say I buy stock A (a computer manufacturer) at $100 which I intend to hold long term. It ends up falling to $80 and the robo-advisor sells it for tax loss harvesting, buying stock B (a similar computer manufacturer) as a replacement. So I benefit from realizing those losses. HOWEVER, say both stocks then rise by 50% over 3 years. At this point, selling B gives me more capital gains tax than if I had held A through the losses, since A's rise from 80 back to 100 would have been free for me since I purchased at 100. And then later thought Although thinking even more (sorry, thinking out loud here), I guess I still come out ahead on taxes since I was able to deduct the $20 loss on A against ordinary income, and while I pay extra capital gains on B, that's a lower tax rate. So the free lunch is $20*[number of shares]*([my tax bracket] - [capital gains rates]) That's true. And in addition to that, if you never sell B, which continues to rise to $200 (was last at $120 after a 50% increase from $80), the basis steps up to $200 on transfer to your heirs. Of course, your estate may have to pay a 40% tax on the $200 before transferring the shares to your heirs. So this isn't exactly a free lunch either. But you have to pay that 40% tax regardless of the form in which the money is held. Cash, real estate, stocks, whatever. Whether you have a large or small capital gain on the stock is irrelevant to the estate tax. This type of planning may not matter to you personally, but it is another aspect of what wealth management can impact.",
"title": ""
},
{
"docid": "3ca2a36926c308393a021d671a4ad8ff",
"text": "\"You mentioned three concepts: (1) trading (2) diversification (3) buy and hold. Trading with any frequency is for people who want to manage their investments as a hobby or profession. You do not seem to be in that category. Diversification is a critical element of any investment strategy. No matter what you do, you should be diversified. All the way would be best (this means owning at least some of every asset out there). The usual way to do this is to own a mutual or index fund. Or several. These funds own hundreds or thousands of stocks, so that buying the fund instantly diversifies you. Buy and hold is the only reasonable approach to a portfolio for someone who is not interested in spending a lot of time managing it. There's no reason to think a buy-and-hold portfolio will underperform a typical traded portfolio, nor that the gains will come later. It's the assets in the portfolio that determine how aggressive/risky it is, not the frequency with which it is traded. This isn't really a site for specific recommendations, but I'll provide a quick idea: Buy a couple of index funds that cover the whole universe of investments. Index funds have low expenses and are the cheapest/easiest way to diversify. Buy a \"\"total stock market\"\" fund and a \"\"total bond fund\"\" in a ratio that you like. If you want, also buy an \"\"international fund.\"\" If you want specific tickers and ratios, another forum would be better(or just ask your broker or 401(k) provider). The bogleheads forum is one that I respect where people are very happy to give and debate specific recommendations. At the end of the day, responsibly managing your investment portfolio is not rocket science and shouldn't occupy a lot of time or worry. Just choose a few funds with low expenses that cover all the assets you are really interested in, put your money in them in a reasonable-ish ratio (no one knows that the best ratio is) and then forget about it.\"",
"title": ""
},
{
"docid": "3dd94d11762f4a6bb127f5f9da57cd75",
"text": "No, this is not generally possible, as each security purchase is booked as a separate order => hence separate transaction. You can do this through purchasing of a fund, i.e.: purchasing one share of a ETF will get you a relative share of the ETF holdings, but the actual holdings are not up to you then.",
"title": ""
},
{
"docid": "9c2486bf10b899839d0c29cb649f96a3",
"text": "Yes, but only if they're looking for investors. You would need to contact them directly. Unless you're looking to invest a significant sum, they may not be interested in speaking with you. (Think at least 6 figures, maybe 7 depending on their size and needs). This is otherwise known as being a Venture Capitalist. Some companies don't want additional investors because the capital isn't yet needed and they don't want to give up shares in the profit/control. Alternatively, you could try and figure out which investment groups already have a stake in the company you're interested in. If those companies are publicly traded, you could buy stocks for their company with the expectation that their stock price will increase if the company you know of does well in the long run.",
"title": ""
},
{
"docid": "6e7f88b56677a917045c41db97d6ced0",
"text": "\"I'd suggest you start by looking at the mutual fund and/or ETF options available via your bank, and see if they have any low-cost funds that invest in high-risk sectors. You can increase your risk (and potential returns) by allocating your assets to riskier sectors rather than by picking individual stocks, and you'll be less likely to make an avoidable mistake. It is possible to do as you suggest and pick individual stocks, but by doing so you may be taking on more risk than you suspect, even unnecessary risk. For instance, if you decide to buy stock in Company A, you know you're taking a risk by investing in just one company. However, without a lot of work and financial expertise, you may not be able to assess how much risk you're taking by investing in Company A specifically, as opposed to Company B. Even if you know that investing in individual stocks is risky, it can be very hard to know how risky those particular individual stocks are, compared to other alternatives. This is doubly true if the investment involves actions more exotic than simply buying and holding an asset like a stock. For instance, you could definitely get plenty of risk by investing in commercial real estate development or complicated options contracts; but a certain amount of work and expertise is required to even understand how to do that, and there is a greater likelihood that you will slip up and make a costly mistake that negates any extra gain, even if the investment itself might have been sound for someone with experience in that area. In other words, you want your risk to really be the risk of the investment, not the \"\"personal\"\" risk that you'll make a mistake in a complicated scheme and lose money because you didn't know what you were doing. (If you do have some expertise in more exotic investments, then maybe you could go this route, but I think most people -- including me -- don't.) On the other hand, you can find mutual funds or ETFs that invest in large economic sectors that are high-risk, but because the investment is diversified within that sector, you need only compare the risk of the sectors. For instance, emerging markets are usually considered one of the highest-risk sectors. But if you restrict your choice to low-cost emerging-market index funds, they are unlikely to differ drastically in risk (at any rate, far less than individual companies). This eliminates the problem mentioned above: when you choose to invest in Emerging Markets Index Fund A, you don't need to worry as much about whether Emerging Markets Index Fund B might have been less risky; most of the risk is in the choice to invest in the emerging markets sector in the first place, and differences between comparable funds in that sector are small by comparison. You could do the same with other targeted sectors that can produce high returns; for instance, there are mutual funds and ETFs that invest specifically in technology stocks. So you could begin by exploring the mutual funds and ETFs available via your existing investment bank, or poke around on Morningstar. Fees will still matter no matter what sector you're in, so pay attention to those. But you can probably find a way to take an aggressive risk position without getting bogged down in the details of individual companies. Also, this will be less work than trying something more exotic, so you're less likely to make a costly mistake due to not understanding the complexities of what you're investing in.\"",
"title": ""
},
{
"docid": "7c69c1b2b0e3b0843a3c06ab45855ff3",
"text": "\"You want to \"\"begin building a nice portfolio\"\" comprised of \"\"real estate\"\" and \"\"solar and wind\"\". There are ways to do that without starting your own solar power farm or buying giant wind turbines, or whole apartment complexes. They're called ETFs. They're diversified and it's unlikely that you'll use the entirety of your initial investment.\"",
"title": ""
},
{
"docid": "4e6b3c3d49316238ac8a589d1dd171d9",
"text": "\"The problem here can be boiled down to that fact you are attempting to obtain a loan without collateral. There are times it can be done, but you have to have a really good relationship with a banker. Your question suggests that avenue has been exhausted. You are looking for an investor, but you are offering something very speculative. Suppose an investor gives you 20K, what recourse does he have if you do not pay the terms of the loan? From what income will this be paid from? What event will trigger the capability to make a balloon payment? Now if you can find a really handy guy that really needs a place to live could you swap rent for repairs? Maybe. Perhaps you buy the materials, and he does the roof in exchange for 6 months worth of rent or whatever. If you approached me with this \"\"investment\"\", the thing that would raise a red flag is why don't you have 20K to do this yourself? If you don't how will you be able to make payments? For example of the items you mentioned: That is a weekend worth of work and some pretty inexpensive materials. Why does money need to be borrowed for this? A weekend worth of demo, and $500 worth of material and another weekend to build something serviceable for a rental. Why does money need to be borrowed for this? 2K? Why does money need to be borrowed for this? This can be expensive, but most roofing companies offer financing. Also doing some of the work yourself can save a ton of money. Demoing an old roof is typically about 1/3 of the roofing cost and is technically simple, but physically difficult. So besides the new roof, you could have a lot of your list solved for less than 3K and three weekends worth of work. You are attempting to change this into a rental, not the Taj Mahal.\"",
"title": ""
},
{
"docid": "310df1360ddc30221c22f9e789f10fc1",
"text": "This is how its done I am a certain french bank, aka sg I have some PIIGS debt, I can use this as collateral at face value (100), with the ECB in order to secure cash... Lets say I use 1mn of BTPS (italian debt), this has an MTM (clean) of 88. I use that 88 to get me 100 (1mn) of cash, from which I buy another BTPS, for (88), of which I use as collateral pledged to the ECB to get this, get another BTPS. So now I am long 3 BTPS, all pledged to the ECB and I have 36 in cash and I owe the ECB 300+r in 3 years. remember the yield on my shitty btps is a lot higher than the interest on the deposits. Secondly, I have three years, so I don't need to give a fuck about the mark to market on the notes (I could even buy a 2 year and n month note maturing just before). So I can make some free yield at the ECB's expense. Also this frees up 36 in cash, of which I can use to meet short term funding instead of tapping the bond market, this trade can be made infinitely, although the ECB might catch on. You can view it as getting a mortgage on your house to buy another house, then mortgaging house #2 to buy house #3, and so on.",
"title": ""
},
{
"docid": "cbc8773cb5a67bbf55cba1b513b1816b",
"text": "\"Due to the zero percent interest rate on the Euro right now you won't find any investment giving you 5% which isn't equivalent to gambling. One of the few investment forms which still promises gains without unreasonable risks right now seems to be real estate, because real estate prices in German urban areas (not so in rural areas!) are growing a lot recently. One reason for that is in fact the low interest rate, because it makes it very cheap right now to take a loan and buy a home. This increased demand is driving up the prices. Note that you don't need to buy a property yourself to invest in real estate (20k in one of the larger cities of Germany will get you... maybe a cardboard box below a bridge?). You can invest your money in a real estate fund (\"\"Immobilienfond\"\"). You then don't own a specific property, you own a tiny fraction of a whole bunch of different properties. This spreads out the risk and allows you to invest exactly as much money as you want. However, most real estate funds do not allow you to sell in the first two years and require that you announce your sale one year in advance, so it's not a very liquid asset. Also, it is still a risky investment. Raising real estate prices might hint to a bubble which might burst eventually. Financial analysts have different opinions about this. But fact is, when the European Central Bank starts to take interest again, then the demand for real estate property will drop and so will the prices. When you are not sure what to do, ask your bank for investment advise. German banks are usually trustworthy in this regard.\"",
"title": ""
}
] |
fiqa
|
9237e30f16b10b8274c78cfc33bf668d
|
Is it taxable if someone return me money?
|
[
{
"docid": "6ff18b0a123ab0d828d643c999003ff9",
"text": "The $10,000 is not taxable to either of you, but the $500 is taxable income to you - and a deductible business expense for your friend.",
"title": ""
}
] |
[
{
"docid": "692b3a6e94da9825253cac3d88d26304",
"text": "\"Taxability depends on residential status when the $ were earned. If it was earned during his status as \"\"Non-Resident\"\" in India, then its tax free. If the money was earned when his tax status was resident in India, then its taxable as per the tax bracket. Edit: Taxability does not depend on whether to transfer the money into India, or keep it out of India or bring it as Cash or Electronically. It only depends on NRI status. Of course transferring the funds into NRE makes the paperwork simpler in case there is a scrutiny.\"",
"title": ""
},
{
"docid": "173677a1d78c4e8a90b0be22dec7361e",
"text": "\"I had experience working for a company that manufactures stuff and giving products to the employees. The condition was to stay employed for a year after the gift for the company to cover its cost (I think they imputed the tax), otherwise they'd add the cost to the last paycheck (which they did when I left). But they were straight-forward about it and I signed a paper acknowledging it. However, in your case you didn't get a product (that you could return when leaving if you didn't want to pay), but rather a service. The \"\"winning\"\" trip was definitely supposed to be reported as income to you last year. Is it okay for them to treat me differently than the others for tax purposes? Of course not. But it may be that some strings were attached to the winning of the incentive trip (for example, you're required to stay employed for X time for the company to cover the expense). See my example above. Maybe it was buried somewhere in small letters. Can they do this a year after the trip was won and redeemed? As I said - in this case this sounds shady. Since it is a service which you cannot return - you should have been taxed on it when receiving it. Would the IRS want to know about this fuzzy business trip practice? How would I report it? Here's how you can let them know. Besides now understanding the new level of slime from my former employer is there anything else I should be worried about? Could they do something like this every year just to be annoying? No, once they issued the last paycheck - you're done with them. They cannot issue you more paychecks after you're no longer an employee. In most US States, you are supposed to receive the last paycheck on your last day of work, or in very close proximity (matter of weeks at most).\"",
"title": ""
},
{
"docid": "6930ffd3459df51d2e594465b3b8a9f1",
"text": "There's nothing wrong with your reasoning except that you expect the tax laws to make perfect sense. More often than not they don't. I suggest getting in touch with a professional tax preparer (preferably with a CPA or EA designation), who will be able to understand the issue, including the relevant portions of the French-US tax treaty, and explain it to you. You will probably also need to do some reporting in France, so get a professional advice from a French tax professional as well. So, in my tax return, can I say that I had no US revenue at all during this whole year? I doubt it.",
"title": ""
},
{
"docid": "37b07e27cba9a5a24efa1324f1259eb4",
"text": "\"Now today I received another refund in the same amount for the same property. What can legally happen if I cash it? Legally the money is not yours. The best course for you is to return the check via certified mail, notifying them that you were already paid. Just because someone made an error, does not mean the money belongs to you. If you don't and rather cash the check; sooner or later depending on the amount, it would be found out by the company as part of reconciliation/audit; they will/can then demand the same back from you. It is up to the company to decide if simply refund is sufficient; or refund plus some interest or start a legal proceeding against you as \"\"intentional theft\"\".\"",
"title": ""
},
{
"docid": "ffd08dea7dad0b41a6ed09bda545c60a",
"text": "No, any gifts you receive are not taxable to you. In fact, losing money in a scam (as this sure sounds like to me) can even be tax-deductible if you lose enough! I wouldn't recommend accepting anything. Usually people with millions are dollars are capable of setting up their own bank accounts.",
"title": ""
},
{
"docid": "d0d3389d1c8d60b52ffff6b5f878ec11",
"text": "\"Of course. The rationale is exactly the same as always: profit is taxed. The fact that you use intermediate barter to make that profit is irrelevant. To clarify, as it seems that you think it makes a difference that no money \"\"changed hands\"\". Consider this situation: So far your cost is $10000. How will the tax authority address this? They will look at the fair market value of the barter. You got gold worth of $20000. So from their perspective, you got $20000, and immediately exchanged it into gold. What does it mean for you? That you're taxed on the $10000 gain you made on your product X (the $20000 worth of barter that you received minus the $10000 worth of work/material/expenses that you spend on producing the merchandise), and that you have $20000 basis in the gold that you now own. If in a year, when you plan to sell the gold, its price drops - you can deduct investment losses. If its price goes up - you'll have investment gain. But for the gain you're making on your product X you will pay taxes now, because that's when you realized it - sold the merchandize and received in return something else of a value.\"",
"title": ""
},
{
"docid": "463abe44eb4d399b0a732c4257486595",
"text": "\"Are you asking why you aren't entitled to money that someone gave you by mistake? I think the answer is obvious even if you don't like it. If you overpaid your taxes how would you feel if the Government said, \"\"Sorry, finder's keepers. It isn't OUR mistake you can't do math.\"\" Your best course of action is to work with the agency to see if they will work out a payment plan so it isn't a big hit all at one time. They are likely to work with you since it was their mistaken advice that got you into the situation.\"",
"title": ""
},
{
"docid": "fb7402a0c252a922705eff1a0d2f4e71",
"text": "\"I worked in the service industry for over 10 years and this came up every now and again. Mostly in hypothetical situations. I'm not a tax expert, but my general understanding is that it is viewed as income by the IRS if you performed a service of any kind in exchange for the money. In other words, if you waited on the table, and they left you a gift for doing so, it is taxable. You'll probably also find that if you pool tips with other employees or have to tip out the bartenders, cooks or dishwashers, they'll generally agree with the IRS that you clearly received a tip and want their fair share. While the concept of \"\"gifting\"\" money to others in a situation like this is intriguing, especially in the service industry, it really doesn't meet the definition of a gift in the eyes of the IRS. For it to truly be a gift, the person would have had to intend to gift you the money even if they hadn't come into your restaurant at all that night. That clearly is not the case here.\"",
"title": ""
},
{
"docid": "0ddf5935ce37f66c96defd0182a0c28d",
"text": "\"This may be closed as not quite PF, but really \"\"startup\"\" as it's a business question. In general, you should talk to a professional if you have this type of question, specifics like this regarding your tax code. I would expect that as a business, you will use a proper paper trail to show that money, say 1000 units of currency, came in and 900 went out. This is a service, no goods involved. The transaction nets you 100, and you track all of this. In the end you have the gross profit, and then business expenses. The gross amount, 1000, should not be the amount taxed, only the final profit.\"",
"title": ""
},
{
"docid": "70ad9eec32780f0fb0f1e1083d220879",
"text": "Yes, you get a refund but only in a couple of states. If you are visiting Louisiana (e.g. New Orleans), there is sales tax refund on tangible items purchased at tax-free stores and permanently removed from the United States (http://www.louisianataxfree.com) . Clothes, shoes, makeup.. these are all items you can claim a tax refund for. Alas, I believe only Louisiana and Texas (http://taxfreetexas.com/) have this, it might be good to know if you are going there. In some states (Alaska, Delaware, Montana, New Hampshire and Oregon I believe) there is no sales tax at all. You do not pay anything at customs for gifts purchased when you leave the United States.",
"title": ""
},
{
"docid": "7580d0f09609a37a313d9980cfe14a7c",
"text": "\"Daniel covered the correct way to file on the returns, I'm chiming in specifically to discuss the question of whether it could be a gift. The IRS will classify it as a tip even if the person giving it says it's a gift if a service was rendered before the gift was given. The only way that you could make a case to the IRS that it was a gift is if you have a personal relationship outside of the working environment, and the person giving the gift provides an explanation for the motivation behind the gift. Such explanations as \"\"Happy Birthday\"\" or \"\"Congratulations on graduating\"\" or other special occasions could be gifts. But \"\"you did a good job, and I just want to reward you for your effort\"\" is not a reason someone gives a gift, and the IRS will penalize you if you do not have evidence that it was a gift rather than a tip.\"",
"title": ""
},
{
"docid": "e8993bf1bc83d21a96cef05e404c7127",
"text": "Most countries tax income, but not a transfer of already taxed money, so you have nothing to worry about. You need to be prepared - if asked - to proof that the money was legally earned, and that you paid taxes for the income when you originally got it. Chances are small that anyone asks though, if you are not being investigated for other reasons already.",
"title": ""
},
{
"docid": "57a906a4b189e8c461c7e4f26d3e3df2",
"text": "\"Let's say you should have paid $4000 in taxes in a year, but you paid $5000, so you get a tax return of $1000. \"\"Somebody\"\" thinks that you should have tried to only pay $4000 in the year and get zero tax return. I hope he or she doesn't think you should pay $5000 and mess up your tax return so you get no refund. Once the end of the tax year is there, you should do what you can to get as much tax returned as possible. On the other hand, you should also have tried to pay less during the year - obviously every dollar you paid less is a dollar less refund.\"",
"title": ""
},
{
"docid": "51fb4ebdf33a3bac9e9c2a61690d8c19",
"text": "Typically, a transfer of money isn't taxed in and of itself. If they send you $1000 and you send them goods, your profit is what would be taxed, not the full amount sent to you. You need to keep track of all money you spend to acquire the goods, and all money coming in, so you can declare the profit you've made as income. Your question appears to be less about personal finance, and more about running a small business.",
"title": ""
},
{
"docid": "577e71f18a181d82dd8514aef826d53e",
"text": "\"When you say \"\"donate\"\", it usually assumes charitable donation with, in this context, tax benefit. That is not what happens in your scenario. Giving someone money with the requirement of that someone to spend that money at your shop is not donation. It is a grant. You can do that, but you won't be able to deduct this as charitable donation, but the money paid to you back would be taxable income to you. I respectfully disagree with Joe that its a wash. It is not. You give them money that you cannot deduct as an expense (as it is not business expense) or donation (as strings are attached). But you do give them the money, it is no longer yours. When they use the money to pay you back - that same money becomes your taxable income. End result: you provide service, and you're the one paying (taxes) for it. Why would you do that?\"",
"title": ""
}
] |
fiqa
|
7bd728610fb8dfb299a0e9cfd25350d2
|
Capitalize on a falling INR
|
[
{
"docid": "16edb3cbd1eeac5c4363c863762cfb5c",
"text": "By no means is this a comprehensive list, but a few items to consider:",
"title": ""
},
{
"docid": "ec969f84e46d88c9a6711a69a1bb92a1",
"text": "One simplest way is to to do Forex trading. You can do this by buying Foreign Currency Futures when you feel Rupee is going down or by selling those Futures when you feel Rupee will go up.",
"title": ""
}
] |
[
{
"docid": "995e19b8e36871967e758402f14743c4",
"text": "That's all? What's the total shares outstanding? It's on thing is it's 100,000 and another if it's 10,000,000. What's the capitalization? If you don't know, check tech crunch and/or read the about section of your website. Having a bit of experience, my guess would be 10,000,000 (or much much more). Series A capitalization usually goes off at $1. If you are not in a management, sales, production or technology role .. you may not benefit much from the growth. So if you want to, watch your internal job postings and try to move up.",
"title": ""
},
{
"docid": "d17d924c5b82e1f761143e2f7cd919da",
"text": "\"There is no numerical convention in finance that I have ever seen. If you look at statements or reports that measure growth when the starting value is negative or zero, you typically see \"\"n/a\"\" or \"\"-\"\" or \"\"*\"\" as the result. Any numerical result would be meaningless. Suppose you used 100% and another company had a legitimate 150% gain - where would the 100% change rank? What do my manager and investors expect to see? As a financial analyst - I would not want to see 100%. I would instead rather see something that indicates that the % change is meaningless. As an example, here's the WSJ documentation on change in Net Income: Net Income percent change is the change from the same period from a year ago. Percent change is not provided if either the latest period or the year-ago period contains a net loss. Thinking about it in another context: Yesterday you and your friend had no apples. Today you have 1 and your friend has 20. What percentage increase did you both have? Did you both have a 100% increase? How can you indicate that your friend had a larger \"\"increase\"\"? In that case (and in finance), the context needs to turn from a percentage increase to an absolute increase. A percentage increase is that scenario is meaningless.\"",
"title": ""
},
{
"docid": "20d25eb66d23c393eb8804674b95aa13",
"text": "\"The sentence is mathematically wrong and verbally unclear. Mathematically, you calculate the downwards percentage by So, it should be Verbally, the reporter should have written \"\"The stock is down by 25%\"\", not \"\"down by -25%\"\".\"",
"title": ""
},
{
"docid": "63446bd49d23b1872991316c108d9e6e",
"text": "As NRI/PIO (Non-Resident Indian/Person of Indian Origin), the overseas income and transfers in foreign currency are exempt from Indian income taxes. However, the account in India has to be designated NRE or FCNR. There are three kind of accounts that an NRI can maintain Interest earned in NRE and FCNR accounts is exempt from income taxes. Interest earned in NRO accounts is not exempt from income taxes, in fact banks would withhold about 30% of interest (TDS). The exact tax liability would depend upon income generated in India and TDS could be applied towards that liability when the tax returns are filed. There are other implications also of designating the account as NRE or NRO. NRE accounts can only be funded via inward remittance of permitted foreign currency e.g. deposit USD/GBP. So proceeds like rental income, pension etc. that are generated in INR within India can't be deposited in this account. The money deposited in NRE account can grow tax free and can be converted back in any foreign currency freely. On the other hand NRO accounts can be funded through both inward remittance of permitted foreign currency or local income e.g. rental, pension etc. All the amount in this account is treated as Indian originated INR (even if remitted in foreign currency) and thus is taxed as any other bank account. The amount in this account is subject to the annual cap of convertibility of USD 1 million. Both NRE and NRO accounts are maintained in INR and can be Saving and Term Deposit. Any remittance made to these accounts in any foreign currency is converted to INR at the time of deposit and is maintained in INR. FCNR account are held in foreign currency and can only be Term Deposit. Official definitions: Accounts for Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs)",
"title": ""
},
{
"docid": "03e58b338037cb9b34f764a6061a51ca",
"text": "You want the net expense of the surcharge minus the rewards to be no more than the interest that you would pay otherwise. Where t is the compounding period for the rate D expressed as a fraction of the overall period for D. So if D is an annual rate (not the APR, the simple rate), it would be expressed as something like 1/365 if compounded daily. That is the number of years in the compounding period. If a monthly rate or weekly compounding, that would change. And p is the number of such time periods in the grace period. So if the grace period were one month, this might be 30. Other variables are as used in the question, all expressed as percentages (which is why I'm dividing by 100). The D rate should be the simple rate, like 6% not the APR of 6.24% or whatever. Note that I'm saying <=. When equal, there is no financial advantage or disadvantage. You could choose either method for the same cost. Now, one method may be more annoying to implement, in which case you might add a fee for it on one side or the other of the equation. Or simply change the less than or equal to be just less than. I may be missing something that you should consider but I don't know. The problem is generic enough that pertinent details might be hidden. But hopefully this at least gives you a framework under which to consider it.",
"title": ""
},
{
"docid": "abf616c3123c474f8459d5c623759525",
"text": "\"Capitalization rate and \"\"Net Profit margin\"\" are two different things. In Capitalization rate note that we are taking the \"\"total value\"\" in the denominator and in Net profit margin we are taking \"\"Revenue/Sales\"\". Capitalization Rate: Capitalization Rate = Yearly Income/Total Value For example (from Investopedia: ) if Stephane buys a property that will generate $125,000 per year and he pays $900,000 for it, the cap rate is: 125,000/900,000 = 13.89%. Net Profit margin: Net Profit margin = Net Profit/Revenue For example (from finance formulas): A company's income statement shows a net income of $1 million and operating revenues of $25 million. By applying the formula, $1 million divided by $25 million would result in a net profit margin of 4%. Although the formula is simplistic, applying the concept is important in that 4% of sales will result in after tax profit.\"",
"title": ""
},
{
"docid": "1276e1f81743f47e0912964e2eba3635",
"text": "\"Your strategy fails to control risk. Your \"\"inversed crash\"\" is called a rally. And These kind of things often turn into bigger rallies because of short squeezes, when all the people that are shorting a stock are forced to close their stock because of margin calls - its not that shorts \"\"scramble\"\" to close their position, the broker AUTOMATICALLY closes your short positions with market orders and you are stuck with the loss. So no, your \"\"trick\"\" is not enough. There are better ways to profit from a bearish outlook.\"",
"title": ""
},
{
"docid": "ae6ff1f0e9dd2c7b31393e2e69748b1e",
"text": "\"No, you capitalize all that and deduct as depreciation from the royalties. What it means is that you cannot deduct the expense when it is incurred, but only when you started receiving income that the expense was used to derive. This is similar to capitalizing building improvements which can only be deducted when you start getting rent, or capitalizing software development expenses which can only be deducted once you start selling/licensing the developed software. In the case of book writing - you capitalize the expenses and deduct them once you start receiving royalties. The period over which you deduct (the \"\"depreciation schedule\"\") depends on the type of the expense and the type of the income, so you better get a guidance from a licensed tax accountant (EA or CPA licensed in your State).\"",
"title": ""
},
{
"docid": "c07bbb5851ed11e9beafd9068dce5412",
"text": "\"Outstanding principal balance is the amount you owe at any given time, not including the amount of interest you need to pay as soon as possible. The \"\"capitalized interest\"\" shown is consistent with an average of 13.5 months between when each dollar is borrowed and when the repayment period begins. Suppose you borrow the first half of the money on September 1, 2017 and the second half of the money on February 1, 2017 (5 months later). At that point, half the money has been accruing interest for 5 months. On January 1, 2018, half the money accrued interest for 16 months, and half the money accrued interest for 11 months. The lender now expects you to start repaying the loan, with the first payment due at the end of January 2018 or the beginning of February 2018. If you make the minimum payments on time, the lender expects you to make 120 monthly payments. The last monthly payment would be at the end of December 2027 or the beginning of January 2028. The lender (or the website) should provide details about the actual payment plan, grace periods, provisions for handling inability to pay due to unemployment, and other terms. In the United States, most installment loans pretend that (for purposes of calculating interest) every month has 30 days -- even February and July! Each month, 1/12 of the \"\"annual percentage rate\"\" (APR) is charged as interest. If you do the compounding, a 6.8 percent APR corresponds to (1 + 0.068 / 12)^12 - 1 = 7.016 percent \"\"annual percentage yield\"\" (APY). Also, the APR is understated. The 6.8 percent applies to the full balance (including the loan fees), even though the borrower only gets the amount minus the loan fees. The 6.8 percent rate is useful for doing calculations after the loan fees have been charged, though. These calculations include the capitalized interest and the monthly payment amounts. A true calculation of the APR would take the loan fees into account, and give a higher number than 6.8 percent. But the corrected APR would not be useful for calculating the capitalized interest, nor for calculating the monthly payment amounts.\"",
"title": ""
},
{
"docid": "f1a0bab43fe7bd385d1f5b7263d5969a",
"text": "It's not compound interest. It is internal rate of return. If you have access to Excel look up the XIRR built-in function.",
"title": ""
},
{
"docid": "20c9e9ae8c397b3bcdda3a75e314265a",
"text": "You can write industry loss warrants. This is the closest thing I’ve found since I’ve been interested in this side of the ILS trade. Hedge funds and asset managers can do this. From what I understand it’s you selling the risk. Want to start a fund? 🤔",
"title": ""
},
{
"docid": "4911f9a1e0f23dca3556083c61350494",
"text": "\"Since you did not treat the house as a QBU, you have to use USD as your functional currency. To calculate capital gains, you need to calculate the USD value at the time of purchase using the exchange rate at the time of purchase and the USD value at the time of sale using the exchange rate at the time of sale. The capital gain / loss is then the difference between the two. This link describes it in more detail and provides some references: http://www.maximadvisors.com/2013/06/foreign-residence/ That link also discusses additional potential complications if you have a mortgage on the house. This link gives more detail on the court case referenced in the above link: http://www.uniset.ca/other/cs5/93F3d26.html The court cases references Rev. Rul 54-105. This link from the IRS has some details from that (https://www.irs.gov/pub/irs-wd/0303021.pdf): Rev. Rul. 54-105, 1954-1 C.B. 12, states that for purposes of determining gain, the basis and selling price of property acquired by a U.S. citizen living in a foreign country should be expressed in United States dollars at the rates of exchange prevailing as of the dates of purchase and sale of the property, respectively. The text of this implies it is for U.S. citizen is living in a foreign country, but the court case makes it clear that it also applies in your scenario (house purchased while living abroad but now residing in the US): Appellants agree that the 453,374 pounds received for their residence should be translated into U.S. dollars at the $1.82 exchange rate prevailing at the date of sale. They argue, however, that the 343,147 pound adjusted cost basis of the residence, consisting of the 297,500 pound purchase price and the 45,647 pounds paid for capital improvements, likewise should be expressed in U.S. dollar terms as of the date of the sale. Appellants correctly state that, viewed “in the foreign currency in which it was transacted,” the purchase generated a 110,227 pound gain as of the date of the sale, which translates to approximately $200,000 at the $1.82 per pound exchange rate. ... However fair and reasonable their argument may be, it amounts to an untenable attempt to convert their “functional currency” from the U.S. dollar to the pound sterling. ... Under I.R.C. § 985(b)(1), use of a functional currency other than the U.S. dollar is restricted to qualified business units (\"\"QBU\"\"s). ... appellants correctly assert that their residence was purchased “for a pound-denominated value” while they were “living and working in a pound-denominated economy,” ... And since appellants concede that the purchase and sale of their residence was not carried out by a QBU, the district court properly rejected their plea to treat the pound as their functional currency.\"",
"title": ""
},
{
"docid": "410f540b4ab654bf8bda42f5bd8443f1",
"text": "If you make money in currency speculation (as in your example), that is a capital gain. A more complicated example is if you were to buy and then sell stocks on the mexican stock exchange. Your capital gain (or loss) would be the difference in value in US dollars of your stocks accounting for varying exchange rates. It's possible for the stocks to go down and for you to still have a capital gain, and vice versa.",
"title": ""
},
{
"docid": "7ec4040c3ac8334ab36c650435360cd4",
"text": "\"As Dilip said, if you want actual concrete, based in tax law, answers, please add the country (and if applicable, state) where you pay income tax. Also, knowing what tax bracket you're in would help as well, although I certainly understand if you're not comfortable sharing that. So, assuming the US... If you're in the 10% or 15% tax bracket, then you're already not paying any federal tax on the $3k long term gain, so purposely taking losses is pointless, and given that there's probably a cost to taking the loss (commission, SEC fee), you'd be losing money by doing so. Also, you won't be able to buy back the loser for 31 days without having the loss postponed due to the wash sale that would result. State tax is another matter, but (going by the table in this article), even using the highest low end tax rate (Tennessee at 6%), the $50 loss would only save you $3, which is probably less than the commission to sell the loser, so again you'd be losing money. And if you're in a state with no state income tax, then the loss wouldn't save you anything on taxes at the state level, but of course you'll still be paying to be able to take the loss. On the high end, you'd be saving 20% federal tax and 13.3% state tax (using the highest high end tax state, California, and ignoring (because I don't know :-) ) whether they tax long-term capital gains at the same rate as regular income or not), you'd be saving $50 * (20% + 13.3%) = $50 * 33.3% = $16.65. So for taxes, you're looking at saving between nothing and $16.65. And then you have to subtract from that the cost to achieve the loss, so even on the high end (which means (assuming a single filer)) you're making >$1 million), you're only saving about $10, and you're probably actually losing money. So I personally don't think taking a $50 loss to try to decrease taxes makes sense. However, if you really meant $500 or $5000, then it might (although if you're in the 10-15% brackets in a no income tax state, even then it wouldn't). So the answer to your final question is, \"\"It depends.\"\" The only way to say for sure is, based on the country and state you're in, calculate what it will save you (if anything). As a general rule, you want to avoid letting the tax tail wag the dog. That is, your financial goal should be to end up with the most money, not to pay the least taxes. So while looking at the tax consequences of a transaction is a good idea, don't look at just the tax consequences, look at the consequences for your overall net worth.\"",
"title": ""
},
{
"docid": "ac1b913c39ab30f29679bf9167b2f2b5",
"text": "Hope you figure it out. There wouldn't be a different RFR / discount rate because you're assuming a return on parked cash - that's what it's for. Since both situations would theoretically happen simultaneously you use the same rate unless you would do something different with cash in each instance.",
"title": ""
}
] |
fiqa
|
c1b80d545b6476b50cdbfecc392935f9
|
How to have a small capital investment in US if I am out of the country?
|
[
{
"docid": "f74cfd2c8a46f886fb3b125b25e254eb",
"text": "For $100 you better just hold it in Mexico. The cost of opening an account could eat 10% or more of your capital easily, and that won't be able to buy enough shares of an ETF or similar investment to make it worthwhile.",
"title": ""
}
] |
[
{
"docid": "759e601171450b86a2054b66acd393e7",
"text": "\"I will add another point to ChrisinEdmonton's answer... I recognize that this is perhaps appropriate as a comment--or maybe 1/2 of an answer, but the comment formatting is inadequate for what I want to say. The magic formula that you need to understand is this: (Capital Invested) * (Rate of Return) = (Income per Period) When ChrisinEdmonton says that you need $300,000, he is doing some basic algebra... (Capital Required) = (Income per Period) / (Rate of Return) So if you're looking at $12,000 per year in passive income as a goal, and you can find a \"\"safe\"\" 4% yield, then what ChrisinEdmonton did is: $12,000 / 0.04 = $300,000 You can use this to play around with different rates of return and see what investment options you can find to purchase. Investment categories like REITs will risk your principal a little more, but have some of the highest dividend yields of around 8%--12%. You would need $100,000--$150,000 at those yields. Some of the safest approaches would be bonds or industrial stocks that pay dividends. Bonds exist around 3%--4%, and industrial dividend stocks (think GE or UTX or Coca Cola) tend to pay more like 2%-3%. The key point I'm trying to make is that if you're looking for this type of passive income, I recommend that you don't plan on the income coming from gains to the investment... This was something that ChrisinEdmonton wasn't entirely clear about. It can be complicated and expensive to whittle away at a portfolio and spend it along the way.\"",
"title": ""
},
{
"docid": "d67d3a9f9940d33d75c8fbfa7f854d74",
"text": "The general idea is that if the statement wasn't true there would be an arbitrage opportunity. You'll probably want to do the math yourself to believe me. But theoretically you could borrow money in country A at their real interest rate, exchange it, then invest the money in the other country at Country B's interest rate. Generating a profit without any risk. There are a lot of assumptions that go along with the statement (like borrowing and lending have the same costs, but I'm sure that is assumed wherever you read that statement.)",
"title": ""
},
{
"docid": "2ccdf1e5dd46c8433b4bc98d3814f4ea",
"text": "We don't have a good answer for how to start investing in poland. We do have good answers for the more general case, which should also work in Poland. E.g. Best way to start investing, for a young person just starting their career? This answer provides a checklist of things to do. Let's see how you're doing: Match on work pension plan. You don't mention this. May not apply in Poland, but ask around in case it does. Given your income, you should be doing this if it's available. Emergency savings. You have plenty. Either six months of spending or six months of income. Make sure that you maintain this. Don't let us talk you into putting all your money in better long term investments. High interest debt. You don't have any. Keep up the good work. Avoid PMI on mortgage. As I understand it, you don't have a mortgage. If you did, you should probably pay it off. Not sure if PMI is an issue in Poland. Roth IRA. Not sure if this is an issue in Poland. A personal retirement account in the US. Additional 401k. A reminder to max out whatever your work pension plan allows. The name here is specific to the United States. You should be doing this in whatever form is available. After that, I disagree with the options. I also disagree with the order a bit, but the basic idea is sound: one time opportunities; emergency savings; eliminate debt; maximize retirement savings. Check with a tax accountant so as not to make easily avoidable tax mistakes. You can use some of the additional money for things like real estate or a business. Try to keep under 20% for each. But if you don't want to worry about that kind of stuff, it's not that important. There's a certain amount of effort to maintain either of those options. If you don't want to put in the effort to do that, it makes sense not to do this. If you have additional money split the bulk of it between stock and bond index funds. You want to maintain a mix between about 70/30 and 75/25 stocks to bonds. The index funds should be based on broad indexes. They probably should be European wide for the most part, although for stocks you might put 10% or so in a Polish fund and another 15% in a true international fund. Think over your retirement plans. Where do you want to live? In your current apartment? In a different apartment in the same city? In one of the places where you inherited property? Somewhere else entirely? Also, do you like to vacation in that same place? Consider buying a place in the appropriate location now (or keeping the one you have if it's one of the inherited properties). You can always rent it out until then. Many realtors are willing to handle the details for you. If the place that you want to retire also works for vacations, consider short term rentals of a place that you buy. Then you can reserve your vacation times while having rentals pay for maintenance the rest of the year. As to the stuff that you have now: Look that over and see if you want any of it. You also might check if there are any other family members that might be interested. E.g. cousins, aunts, uncles, etc. If not, you can probably sell it to a professional company that handles estate sales. Make sure that they clear out any junk along with the valuable stuff. Consider keeping furniture for now. Sometimes it can help sell a property. You might check if you want to drive either of them. If not, the same applies, check family first. Otherwise, someone will buy them, perhaps on consignment (they sell for a commission rather than buying and reselling). There's no hurry to sell these. Think over whether you might want them. Consider if they hold any sentimental value to you or someone else. If not, sell them. If there's any difficulty finding a buyer, consider renting them out. You can also rent them out if you want time to make a decision. Don't leave them empty too long. There's maintenance that may need done, e.g. heat to keep water from freezing in the pipes. That's easy, just invest that. I wouldn't get in too much of a hurry to donate to charity. You can always do that later. And try to donate anonymously if you can. Donating often leads to spam, where they try to get you to donate more.",
"title": ""
},
{
"docid": "27956ee0d314fb8c8e1a361b3b04ae07",
"text": "I would say your decision making is reasonable. You are in the middle of Brexit and nobody knows what that means. Civil society in the United States is very strained at the moment. The one seeming source of stability in Europe, Germany, may end up with a very weakened government. The only country that is probably stable is China and it has weak protections for foreign investors. Law precedes economics, even though economics often ends up dictating the law in the long run. The only thing that may come to mind is doing two things differently. The first is mentally dropping the long-term versus short-term dichotomy and instead think in terms of the types of risks an investment is exposed to, such as currency risk, political risk, liquidity risk and so forth. Maturity risk is just one type of risk. The second is to consider taking some types of risks that are hedged either by put contracts to limit the downside loss, or consider buying longer-dated call contracts using a small percentage of your money. If the underlying price falls, then the call contracts will be a total loss, but if the price increases then you will receive most of the increase (minus the premium). If you are uncomfortable purchasing individual assets directly, then I would say you are probably doing everything that you reasonably can do.",
"title": ""
},
{
"docid": "b721bf929645a32770ca5320a4f2b5b7",
"text": "There are a couple of ways to buy into a private company. First, the company can use equity crowd funding (approved under the JOBS act, you don't need to be an accredited investor for this). The offering can be within one state (i.e. Intrastate offerings) which don't have the same SEC regulations but will be governed by state law. Small companies (small assets, under $1 million) can be made under Regulation D, Rule 504. For assets under $5 million, there is Rule 505, which allows a limited number of non-accredited investors. Unfortunately, there aren't a lot of 504 and 505 issues. Rule 506 issues are common, and it does allow a few non-accredited investors (I think 35), but non-accredited investors have to be given lots of disclosure, so often companies use a Rule 506 issue but only for accredited investors.",
"title": ""
},
{
"docid": "b528f2b68ccc47dd8e86323231c148b1",
"text": "\"No. This is too much for most individuals, even some small to medium businesses. When you sell that investment, and take the cheque into the foreign bank and wire it back to the USA in US dollars, you will definitely obtain the final value of the investment, converted to US$. Thats what you wanted, right? You'll get that. If you also hedge, unless you have a situation where it is a perfect hedge, then you are gambling on what the currencies will do. A perfect hedge is unusual for what most individuals are involved in. It looks something like this: you know ForeignCorp is going to pay you 10 million quatloos on Dec 31. So you go to a bank (probably a foreign bank, I've found they have lower limits for this kind of transaction and more customizable than what you might create trading futures contracts), and tell them, \"\"I have this contract for a 10 million quatloo receivable on Dec 31, I'd like to arrange a FX forward contract and lock in a rate for this in US$/quatloo.\"\" They may have a credit check or a deposit for such an arrangement, because as the rates change either the bank will owe you money or you will owe the bank money. If they quote you 0.05 US$/quatloo, then you know that when you hand the cheque over to the bank your contract payment will be worth US$500,000. The forward rate may differ from the current rate, thats how the bank accounts for risk and includes a profit. Even with a perfect hedge, you should be able to see the potential for trouble. If the bank doesnt quite trust you, and hey, banks arent known for trust, then as the quatloo strengthens relative to the US$, they may suspect that you will walk away from the deal. This risk can be reduced by including terms in the contract requiring you to pay the bank some quatloos as that happens. If the quatloo falls you would get this money credited back to your account. This is also how futures contracts work; there it is called \"\"mark to market accounting\"\". Trouble lurks here. Some people, seeing how they are down money on the hedge, cancel it. It is a classic mistake because it undoes the protection that one was trying to achieve. Often the rate will move back, and the hedger is left with less money than they would have had doing nothing, even though they bought a perfect hedge.\"",
"title": ""
},
{
"docid": "f2d276543022a55432fd12a4a3a3647c",
"text": "You do not need to have 'high net value', and yes, you can invest in it. Typically, fund companies require a minimum investment, that could be 100, it could be a 1000. 5000 should be enough for 99.9 % of all funds for an initial investment. What you need is an investment company that manages the account for you. I cannot name those for your country, but they should be easy to find (companies like IMG, and Fidelity might serve your country). You then open an account with the company of your choice, transfer the money, and tell them which fund it shall go in; all this is possible online. You can also go to see an agent in person, and he will fill the forms for you, and handle all the action, but he might take a fee for it.",
"title": ""
},
{
"docid": "6ee5094a258ae0377d39f8cdcfb21087",
"text": "\"Tricky question, basically, you just want to first spread risk around, and then seek abnormal returns after you understand what portions of your portfolio are influenced by (and understand your own investment goals) For a relevant timely example: the German stock exchange and it's equity prices are reaching all time highs, while the Greek asset prices are reaching all time lows. If you just invested in \"\"Europe\"\" your portfolio will experience only the mean, while suffering from exchange rate changes. You will likely lose because you arbitrarily invested internationally, for the sake of being international, instead of targeting a key country or sector. Just boils down to more research for you, if you want to be a passive investor you will get passive investor returns. I'm not personally familiar with funds that are good at taking care of this part for you, in the international markets.\"",
"title": ""
},
{
"docid": "1f96225870d0c006f8484d9d5ae1d38d",
"text": "There are options on options. Some derivative instruments assets ARE options (some ETFs), and you are able to buy shares of those ETFs OR options on those ETFs. Secondly, options are just a contract, so you just need to write one up and find someone to buy the contract. The only thing is that the exchange won't facilitate it, so you will have liquidity issues. What you want to do is a diagonal / calendar spread. Buy the back month option, sell the front month option, this isn't a foreign concept and nobody is stopping you. Since you have extra leverage on your LEAPS, then you just need to change the balancing of your short leg to match the amount of leverage the leaps will provide. (so instead of buying,selling 1:1, you need to buy one leap and perhaps sell 5 puts)",
"title": ""
},
{
"docid": "20ed40524961487a130ef6c674b35799",
"text": "US Treasury securities are the safest investment. You can buy short term by buying T-Bills. You buy T-bills at a discount to face. For example, to buy a four week T-bill the treasury will take $99.98 out of your account. In four weeks the treasury will deposit $100 into your account. The $0.02 difference is your Intrest on the loan. Compounded over a year (13 four week periods) you get a 0.24% interest. But (presumably) more importantly (to you) you get your original $99.98 back. Your government cannot nationalize money that you have on loan to the United States Government. Edit : oops, I dropped a decimal position in my original calculation of compounded rate of interest. It is now corrected.",
"title": ""
},
{
"docid": "3a867c6f052ff0ca6c6709e1a4dfacbe",
"text": "The LLC portion is completely irrelevant. Don't know why you want it. You can create a joint/partnership trading account without the additional complexity of having LLC. What liability are you trying to limit here? Her sisters will file tax returns in the us using the form 1040NR, and only reporting the dividends they received, everything else will be taxed by Vietnam. You'll have to investigate how to file tax returns there as well. That said, you'll need about $500,000 each to invest in the regional centers. So you're talking about 1.5 million of US dollars at least. From a couple of $14K gifts to $1.5M just by trading? I don't see how this is feasible.",
"title": ""
},
{
"docid": "9f944791fdfd34127ecb910522152663",
"text": "You wouldn't want to trade with too small amount of capital - it becomes harder and more expensive to diversify with a small account. Also, the bigger the account the more discounts and special may be offered by your broker (especially if you are a frequent trader). You are also able to trade more often, and have a buffer against a few losses in a row not wiping out your entire account.",
"title": ""
},
{
"docid": "23f652afcd3d45d6709476cfba5e46ef",
"text": "It requires fairly large levels of capital, but what about seed funding/angel investments in startups? This would be before venture capital gets involved, so the amounts are relatively low (tens of thousands, vs. millions of USD), but as valuations this early in the game are also low, you can get a significant portion of equity in a startup that you feel is being run by good people and is in a promising market. Paul Graham of Y-Combinator has a number of articles about this from both sides of the table that you can take a look at and see if this is for you. It's definitely very high-risk, but if you can pick successful startups before their valuation shoots up, get some equity, help them succeed, and they eventually go public or get acquired, you can stand to bring in some big returns. Note that this isn't a hands-off investment. You'll need to build connections in the startup community, and it isn't uncommon for angel investors to become involved in the day-to-day operations of the businesses in which they invest.",
"title": ""
},
{
"docid": "6fbcaaa231a65f94f3d123c19f7591cb",
"text": "\"It's easy to own many of the larger UK stocks. Companies like British Petroleum, Glaxo, and Royal Dutch Shell, list what they call ADRs (American Depositary Receipts) on the U.S. stock exchanges. That is, they will deposit local shares with Bank of NY Mellon, JP Morgan Chase, or Citicorp (the three banks that do this type of business), and the banks will turn around and issue ADRs equivalent to the number of shares on deposit. This is not true with \"\"small cap\"\" companies. In those cases, a broker like Schwab may occasionally help you, usually not. But you might have difficulty trading U.S. small cap companies as well.\"",
"title": ""
},
{
"docid": "d0f975974b6c35ce344502286b431bec",
"text": "I don't think the location of the funds is any of your concern. You're buying a CDI, which is: Australian financial instruments The US has no jurisdiction over you, being you an Australian, so unless you own a US-based asset (i.e.: a real-estate in the US, or a US brokerage account), US tax laws shouldn't matter to you.",
"title": ""
}
] |
fiqa
|
3123cb80237a39801f8f0e24ebaea18f
|
Professional tax for employees - startup in India
|
[
{
"docid": "04b97a83bcb4ed2eba9355dafbdea597",
"text": "The tax is depended upon state where you are registered and the salary paid. More here If you employ contract you need not pay tax.",
"title": ""
}
] |
[
{
"docid": "c2355fd290d4917d14f57a1c73572a49",
"text": "Not as you suggest. Since you are sole prop, you are taxed on a cash basis. Within reason, you can prepay vendors - so temp to hire through an agency might appear more attractive than direct hire. But there needs to be a justification other than avoidance of taxes. So pre-paying 100k on 12/25 would look fishy as fuck. Plus your quality of candidate will suffer if you need anything other than low skill labor. Look at your other fully deductible expenses - anything you can prepay-prepay. For example, I set my liability insurance renewal January 15 to provide optionality. But it just shifts one year into another .. Means fuckall if you are in the same marginal bracket next year. The IRS has also relaxed depreciation on office technology. Computers are now fully deductible rather than being capitalized. @ 500k revenue you should have a CPA and legal counsel. Simply incorporating isn't tax magic. The purpose is to limit yourersonal liability, not a tax shelter - but shitty things happen once you have employees, don't create the potential for a disgruntled employee lawsuit put your shelter at risk of court judgment. That said, assuming you aren't dumping a hypothetical on the Internet, congrats - for all the headaches, having employees is the ultimate leverage .. it's like a xerox machine for your labor (including loss of fidelity with each copy) ..",
"title": ""
},
{
"docid": "9ba4ca77b4951897fdbdddb470e53f19",
"text": "You make the investment in Jan 2016. Assuming the SEIS certificate is issued before 5th April 2016, then you will enter the SEIS investment on your 2015-2016 tax return and claim the relief in that year. If the certificate is not issued in time then you will enter it in the 2016-2017 tax return and get the relief then. Note: I am assuming that the startup is already registered with the SEIS scheme by someone else - because if you are asking about how to go about that, I don't think that is an issue of personal finance.",
"title": ""
},
{
"docid": "746c2df9ea5a586fc65a71a374c66c25",
"text": "I have some more inputs to investigate: India has dual tax avoidance treaty signed with european countries so that NRIs dont pay tax in both countries. Please check if India has some agreement with Swiss Also for freelance job that is delivered from India, u need to make sure where you have to pay taxes as you are still in India so the term NRI will not hold good here. Also, if Swiss company is paying tax there, and you are a freelancer from India(resident in india) how to tax filing /rate etc has to be investigated. Also, can you apply for tax back from swiss( a portion of tax paid can be refunded eg: in Germany) but I dont know if this is true for Freelancers and also for people out side SWISS. Bip",
"title": ""
},
{
"docid": "b573d3167787931ca68ccd809c08eea9",
"text": "PSB taxed at higher rates. PSB is taxed at 39.5% in Ontario, as the article mentioned. But if you pay all the net income to yourself as salary, you expense it and zero it out on the corporate level. So who cares what tax rate it is if the taxable income is zero? No-one. Same goes for the US, by the way. Personal Service Corporations are taxed at flat 35% Federal tax rate. But if you pour all the income into your salary - its moot, because there's no net income to pay tax of. If it's too complicated to figure out, maybe it would be wise to hire a tax accountant to provide counsel to you before you make decisions about your business.",
"title": ""
},
{
"docid": "bd32fe9ac63a48f7adcb39dea2923ad9",
"text": "I am an Israeli based citizen who represents and Indian company who sells its products in Israel. As an agent I am entitled to commission on sales on behalf the Indian company who advised that. Any commission paid to you will be applicable to TDS at 20.9% of the commission amount, the tax will be paid and a Tax paid certificate will be given to you. According to a Bilateral Double tax avoidance treaty if the tax has been deducted in India you will get credit for this tax in Israel.",
"title": ""
},
{
"docid": "e65985c3ab463e6ad723656aa8e16f82",
"text": "\"You can file an LLC yourself in most states, although it might be helpful to use a service if you're not sure what to do to ensure it is correct. I filed my LLC here in Colorado online with the Secretary of State's office, which provided the fill-in-the-blank forms and made it easy. In the U.S., taxation of an LLC is \"\"pass-through\"\", meaning the LLC itself does not have any tax liability. Taxes are based on what you take out of the LLC as distributions to yourself, so you pay personal income tax on that. There are many good books on how to form and then operate an LLC, and I personally like NoLo (link to their web site) because they cater to novices. As for hiring people in India, I can't speak to that, so hopefully someone else can answer that specific topic. As for what you need to know about how to run it, I'll refer back to the NoLo books and web site.\"",
"title": ""
},
{
"docid": "b0e89d948d1a3eeeb4332ed2e5712a2a",
"text": "Tax Deducted at source is applicable to Employee / Employer [contract employee] relations ... it was also made applicable for cases where an Indian company pays for software products [like MS Word etc] as the product is not sold, but is licensed and is treated as Royalty [unlike sale of a consumer product, that you have, say car] ... Hence it depends on how your contract is worded with your India clients, best is have it as a service agreement. Although services are also taxed, however your contract should clearly specify that any tax in India would be borne by your Indian Client ... Cross Country taxation is an advanced area, you will not find good advice free :)",
"title": ""
},
{
"docid": "83aaeb5d21bd925e668810e5d9e80f2a",
"text": "\"I'm not familiar with the law and taxes in India but can provide guidance based on general accounting and tax principles. You are right that receiving money as a loan is not income and isn't liable to income tax. Therefore i suggest you actually formalise this loan through a written contract with your friend. The contract should include all the usual elements of a loan: amount, interest (even if preferential or zero), principal, term, consequences of default and currency of loan. You can then simply state the purpose of transfer as \"\"Personal Loan Agreement\"\". If you have such a document and are questioned by tax authorities you can easily show that the inward remittance is from a loan and should therefore be treated like any commercial loan for tax purposes. As long as you disclose the debt in your tax return (if required in India) and your friend discloses any interest received as income i think you'll be above board and won't be liable for any income tax. To make sure, you might be better off having a quick consultation with an accountant or tax specialist in India to advise you and draft the loan agreement.\"",
"title": ""
},
{
"docid": "82d2d4a07821a9bb5dad39c545650d9a",
"text": "Assuming you have registered your activities as partnership and receiving this money as Individual, you need to show this under Schedule OS, 1d [other income]. this will be under the ITR-2 [tab CG-OS] XLS tax preparation utility given by Tax Department. The XLS can be found at https://incometaxindiaefiling.gov.in/portal/individual_huf.do If the funds you are receiving are large [more than say Rs 500,000] then suggest you incorporate a partnership firm or company, there are quite a few exceptions you can claim lowering you tax outgo. The fact that you are transferring funds to your partners can be an issue incase you get audited. You would need to have sufficient evidence to show that the money paid was for services rendered directly and not your income. It would be easier if you create a partnership or have the client directly pay to them. Again if the sum is small its fine, as the sum becomes large, it would get noticed by the tax authorities.",
"title": ""
},
{
"docid": "d268171091dd171b468c547cc8453f33",
"text": "You can receive funds from US Client as an individual. There is no legal requirement for you to have a company. If the transactions are large say more than 20 lacs in a year, its advisable to open a Private Ltd. Although its simple opening & Registering a company [A CA or a Laywer would get one at a nominal price of Rs 5000] you can do yourself. Whatever be the case, its advisable to have seperate accounts for this business / professional service transactions. Maintain proper records of the funds received. There are certain benefits you can claim, a CA can help you. Paying taxes in Advance is your responsibility and hence make sure you keep paying every quarter as advance tax. Related questions Indian citizen working from India as freelancer for U.S.-based company. How to report the income & pay tax in India? Freelancer in India working for Swiss Company Freelancing to UK company from India How do I account for money paid to colleagues out of my professional income?",
"title": ""
},
{
"docid": "0d5db709426ecd7f9d7fbe0d9e7ed547",
"text": "They believe that it reduces the risk that Revenue Canada will deem you to be an employee and make them pay a whole pile of tax, EI, CPP and so on that should have been paid if you had been hired as an employee. It's my recollection that the employer gets dinged for both the employee and employer share of those withholdings (and generally the employer's share is larger than yours) so they really want to prevent it. There's a Revenue Canada publication about whether you're an employee or not. There's nothing on it about being incorporated, but still employers feel more protected when their contracts are incorporated. We did work as a sole proprietorship at the very beginning, so that we could deduct our losses against employment income earned earlier in the year, before we started the business. You can find clients who will take you on. We incorporated once the losses were over with (basically we had bought the equipment and office supplies we needed to get started.) It's a simple and relatively inexpensive thing to do, and gives clients a sense of protection. It won't protect you from your own poor decisions since you'll be a director of the firm.",
"title": ""
},
{
"docid": "4a9011e433785e61732b017579a786a1",
"text": "Yes, but make sure you issue a 1099 to these freelancers by 1/31/2016 or you may forfeit your ability to claim the expenses. You will probably need to collect a W-9 from each freelancer but also check with oDesk as they may have the necessary paperwork already in place for this exact reason. Most importantly, consult with a trusted CPA to ensure you are completing all necessary forms correctly and following current IRS rules and regulations. PS - I do this myself for my own business and it's quite simple and straight forward.",
"title": ""
},
{
"docid": "573e48e9b9d4cbbfa1dee18393f88dd7",
"text": "The best way is for X to work as Independent consultant fro c.com from India by raising monthly invoices for the work done. This will avoid the complications and paperwork associated by registering a LLC in US by XF and then employing X as independent consultant in India. X may need to fill out W8-BEN forms so that there is no withholding in US Edit: Independent consultant means without having to register any legal entity either in India or in US. There are no legal regulations in US or in India to hire an independent contractor / consultant. There maybe internal policy of C.com not to have independent consultants. Payments can be made via transfer to Bank account.",
"title": ""
},
{
"docid": "70772d40b7d6a28b23290a08fa72a915",
"text": "This is taxable in India. You need to declare the income and pay taxes accordingly",
"title": ""
},
{
"docid": "94d62721b24d9ff06475fd1991e5907a",
"text": "\"Most of this is already regulated. \"\"Food\"\" specifically is exempt from taxes if it's done on premise and for the \"\"convenience of the employer\"\", whatever that means. See https://www.law.cornell.edu/uscode/text/26/119 Other benefits, such as commuter aid (public transport, parking) are tax free up to a certain limit (I think $255 for 2017) and any excess it taxable income. You can study the whole gory details at https://www.irs.gov/pub/irs-pdf/p15b.pdf\"",
"title": ""
}
] |
fiqa
|
a3d79114d4974d7971cc85af751f90f8
|
Do I owe taxes if my deductions are higher than my income?
|
[
{
"docid": "207d86d0997000334265461baaa3476f",
"text": "\"There's one factor the previous posters apparently missed here: You say \"\"self-employment tax\"\"--in other words, at least some of that $16k is from self employment. In a normal employment situation the FICA tax is taken out of your paycheck, it's normally spot on and generally doesn't show up on your tax return. However, for the self-employed it's another matter. You pay the whole 15.3% from the first dollar and this does show up on your tax return. If it's all self employment money you would have about $2.5k in tax from this.\"",
"title": ""
},
{
"docid": "5fb1034e13a97b1e3a37becc28ec0b0b",
"text": "No, it's not possible. Even if you had no deduction or credits, your federal tax on $16,604 would be: $9075 @ 10% = $907.50 + $7529 @ 15% = $1129.35 = $2036.85 That assumes you are filing as single. There must be more to the story. Typo in your income numbers? Also, what do you mean by a self-employment tax deduction? Maybe update your question to include a breakdown of everything you entered? Edit: As noted in Loren's answer, it seems that it is indeed possible in at least one case (self-employment taxes).",
"title": ""
},
{
"docid": "6dcb4047eadf3949ca565819c9a29fc0",
"text": "I'm going to echo Phil and say that you should add more information. That being said, I think it is possible for you to owe the government that much. If you received a federal health insurance subsidy and live in a state that didn't expand medicaid, you could have received a subsidy through out the year that you did not end up qualifying for. It appears you are outside the medicaid limit of 133% of the poverty level($11,670) or $15,521. If you received a subsidy of $275 a month from the marketplace, you would have received $3300 worth of aid from the government that you don't qualify for. Now they are expecting you to pay it back.",
"title": ""
},
{
"docid": "19f98010ebe26c364d12736e6df14aae",
"text": "As a CPA I can say, without a doubt, you do not owe any federal income tax. However, assuming all of you income was from your business and therefore subject to self-employment tax and you had no healthcare coverage, you would owe: $2,523 in Self-Employment Tax 645 in Healthcare Penalty $3,168 Total Amount You Should Owe. Assuming you have given us the right numbers, $3,300 sounds too high.",
"title": ""
},
{
"docid": "baac78ff623eee42bf7091319816b7ac",
"text": "\"In your case, I believe the answer is that you don't owe any taxes, if your deductions exceed your income. There is something called the Alternate Minimum Tax to catch \"\"rich\"\" people, who claim \"\"too many\"\" deductions. Basically, it taxes their \"\"gross\"\" income at a lower rate, but allows them no deductions if they make $175,000 or more. You are not in that tax \"\"bracket.\"\"\"",
"title": ""
}
] |
[
{
"docid": "3732f784e170d0a50982ba72ff7cb4c2",
"text": "The only ways to increase your after-tax income are to increase your tax-deferred savings (401k), increase your tax deductions, or increase your pre-tax income. Increasing tax-deferred savings is great for the long term, but will usually not result in a bigger paycheck (though net pay including the savings will go up). This is, however, probably your best bet for reducing current tax liability. Increasing deductions usually involves spending money--on charity, mortgage interest, other taxes, etc. So, while you may reduce your tax liability, you probably won't end up with more money in your pocket. Also, if you are single and aren't paying a mortgage, it probably won't be easy to exceed the Standard Deduction. Which pretty much leaves you with asking for a raise, getting a better paying job, or taking on a second job to increase your top-line income.",
"title": ""
},
{
"docid": "6448d72794b93dcc59f4c095e6589e8a",
"text": "One other consideration. If you are a US citizen or Resident Alien, you are going to owe US income taxes regardless of where you earn the money. Here it is straight from the horse's mouth: Tax guide for US Citizens living abroad",
"title": ""
},
{
"docid": "4f56733cda272f4fe00e719c0511f999",
"text": "If you owe a lot of money (more then $500 or $1000) you will get hit with penalties. You will also have to file every quarter the next year. That is very painful. There is a safe harbor if you make sure that you have withheld more money than your taxes from the previous year. The information you provided is not enough for me to give specific advice. But here is a hint: Right after you file this year, use turbo tax to determine what changes you can make to your withholding to minimize any excess withholding.",
"title": ""
},
{
"docid": "621d30c4812c6b44ec2e8bab6810ce01",
"text": "This depends on the nature of the income. Please consult a professional CPA for specific advise.",
"title": ""
},
{
"docid": "29141964b7c403471b9ebb1598075ea3",
"text": "You can deduct retirement contributions (above the line even), but not as a business expense. So you can't avoid the SE taxes, sorry.",
"title": ""
},
{
"docid": "c2796ecbc91f8c0146494e2f952bc726",
"text": "\"Well a definitive answer would require a lot of information. Instead of posting that kind of info online, you should take a look at the instructions for Form 2210 and in particular \"\"Schedule AI -- Annualized Income Installment Method,\"\" which corrects the penalty for highly variable income. Using this form you will likely be able to avoid the penalty, but it is hard to know for sure.\"",
"title": ""
},
{
"docid": "7a8e97d90b03bc52e190b95e1e4ffe53",
"text": "You're interpreting this correctly. Furthermore, if your total tax liability is less than $1000, you can not pay estimates at all, just pay at the tax day. See this safe harbor rule in the IRS publication 17: General rule. In most cases, you must pay estimated tax for 2016 if both of the following apply. You expect to owe at least $1,000 in tax for 2016, after subtracting your withholding and refundable credits. You expect your withholding plus your refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2016 tax return, or 100% of the tax shown on your 2015 tax return (but see Special rules for farmers, fishermen, and higher income taxpayers , later). Your 2015 tax return must cover all 12 months.",
"title": ""
},
{
"docid": "67ea53fdb59599c1da7dc8de5c972c19",
"text": "Do you have a regular job, where you work for somebody else and they pay you a salary? If so, they should be deducting estimated taxes from your paychecks and sending them in to the government. How much they deduct depends on your salary and what you put down on your W-4. Assuming you filled that out accurately, they will withhold an amount that should closely match the taxes you would owe if you took the standard deduction, have no income besides this job, and no unusual deductions. If that's the case, come next April 15 you will probably get a small refund. If you own a small business or are an independent contractor, then you have to estimate the taxes you will owe and make quarterly payments. If you're worried that the amount they're withholding doesn't sound right, then as GradeEhBacon says, get a copy of last year's tax forms (or this year's if they're out by now) -- paper or electronic -- fill them out by estimating what your total income will be for the year, etc, and see what the tax comes out to be.",
"title": ""
},
{
"docid": "e5bbbf00ed8e7b0c39a7ece90572ef56",
"text": "I know that if you make more, you pay more, but do those who have more, not make more, pay higher income tax? In general, no. In most locales, income tax is based on income, not on wealth. I am retired. I have little income but a fair amount of wealth. I play very little income tax. (But I do pay other kinds of taxes.) Here's a scenario. 2 people of average wealth with similar situations have the same job with equal pay. After 5 years, their situations haven't changed and they still earn equal pay, but now one has $40,000 in their account and the other $9,000. Does one now pay higher income tax because he has more in his account or does he pay the same because he makes the same? In most locales, you pay income tax on everything that is counted as income. Your salary is income. In some cases, earned interest is income. But aside from the earned interest from your bank accounts, neither the $40,000 nor the $9,000 is income. Your huge mansion isn't income. Your expensive car isn't income. The huge amount of land you own isn't income. The pricey artwork on your walls isn't income. You don't pay income tax on any of these, but your local may impose other taxes on these (such as property tax, etc.) [Note: consult the tax laws of your specific locale if you want to know details.]",
"title": ""
},
{
"docid": "17e126114c46110deff1db290cfa3225",
"text": "If you have income in the US, you will owe US income tax on it, unless there is a treaty with your country that says otherwise.",
"title": ""
},
{
"docid": "881acfadb43654b366bba3cfe8ab2237",
"text": "\"The IRS doesn't tax \"\"increased wealth\"\" They tax Revenue -- income. If this money or property came to you as a gift, you would owe no tax on it but the giver probably would owe gift tax. If it came to you as a loan, you would owe no tax on it but the lender would owe tax on any interest you pay (and must charge at least minimal interest, though they could give that to you as a gift and possibly not have it be taxable). But if came as payment for goods or services or investment or anything of that sort, and you aren't demonstrably tax-exempt, it is income and you are responsible for declaring it as such and paying tax on it.\"",
"title": ""
},
{
"docid": "d84e9fe503670774bb17b058515f7081",
"text": "1040ES uses the smaller number because that's what triggers the penalties. (That is, you are penalized if what you prepay is less than your total 2013 liability and less than 90% of your 2014 liability.) However, estimated taxes are just estimates. If you pay too little, you could face a penalty, but there's no penalty for paying too much -- you'll just get a refund as usual. It seems that your concern stems from the fact that this is the first year you're in this tax situation and so you're unsure if your estimates are accurate. In your comment to Pete Belford's answer, you also indicated you aren't worried about being unable to pay, but only about accidentally underpaying. In this case, you could just err on the side of caution and pay more than 1040ES says you owe. (You don't actually file the 1040ES, the calculations are just for your own use.) For instance, you could prepay based on the higher of your two estimates, if you can afford it; or, if you can't afford that much, hedge the estimate payments up a bit to an amount you can afford that is closer to the higher estimate. At the end of the year if you paid too much you can get a refund as usual. After this year, you will presumably have a better sense of your income and your tax liability, and can make more accurate estimates for next year.",
"title": ""
},
{
"docid": "1d443860bd1eb09e19af7b8465b17d1a",
"text": "The IRS offers an online calculator to help you select the correct number of deductions on your W-4. The tricky part is that we're nearly half-way through the year, so if you add more deductions to offset the lower withholding during the first half of the year, you'll have to update the W-4 at the beginning of next year to correct that next year.",
"title": ""
},
{
"docid": "09eda7b24f83e3989de913f530f95515",
"text": "\"You don't offer any specifics, so I'm guessing a little about what you're talking about, but here's a few thoughts: Remember that all tax-related transactions are reconciled when you file. All of your activity for the year is totaled up and (for the most part) when during the year things happen is irrelevant. Your gross taxable income is calculated (which will exclude any \"\"pre-tax\"\" activity, deduction applied (which will any include and \"\"post-tax\"\" deductions), tax liability calculated, and withholdings subtracted to get your net tax due. Whether you have \"\"pre-tax\"\" activity and less tax withheld or \"\"after-tax\"\" activity with a deduction and reduce your net tax, the net effect should be the same.\"",
"title": ""
},
{
"docid": "84fb32f8ad53e211bbdd5f4eb31af3c8",
"text": "No, you cannot. You can only deduct expenses that the employer required from you, are used solely for the employer's (not your!) benefit, you were not reimbursed for them and they're above the 2% AGI threshold. And that - only if you're itemizing your deductions.",
"title": ""
}
] |
fiqa
|
5ebf4325f5c095bf977115c57a7d1c07
|
Why are U.S. credit unions not open to everyone?
|
[
{
"docid": "804d74d4c77d11d2c304b590073b6ea6",
"text": "Credit unions are mutually-owned (i.e. customer owned) financial institutions that provide banking services. They take deposits from their members (customers) and loan them to other members. Members vote on a board of directors who manage operations. They are considered not-for-profit, but they pay interest on deposits. They get some preferential tax treatment and regulation and their deposits are insured by a separate organization if federally accredited. State-chartered credit unions don't have to maintain deposit insurance at all. Their charters specify who can join. They can be regionally based, employer based, or based on some other group with common interests. Regulators restrict them so that they don't interfere too much with banks. Otherwise their preferential tax and regulatory treatment would leave banks uncompetitive. Other organizations with similar limits have gone on to be competitive when the limits were released. For example, there used to be an insurance company just for government employees, the Government Employees Insurance Company. You may know it better as GEICO (yes, the one with the gecko advertisements). Now they offer life and auto insurance all over. Credit unions would like looser limitations (or no limitations at all), but not enough to give up their preferential tax treatment. Banks oppose looser limitations and have as much political clout as credit unions.",
"title": ""
},
{
"docid": "21f7f766f152e5ee0c687d0465e8f0be",
"text": "\"It's required by law. 12 USC 1759 (b) requires that membership in a credit union be limited to one or more groups with a \"\"common bond\"\", or to people within a particular geographic area. For lots more gory details on how this is interpreted and enforced, you can read the manual given to credit unions by the National Credit Union Administration, which is their regulatory agency.\"",
"title": ""
}
] |
[
{
"docid": "541401c6f2ad9acc4ce8a6c50c729c65",
"text": "I've been with my credit union for 8 years now and I love it! I also don't deal with any of the problems you are talking about. I don't pay fees at any atm, at least not ultimately. If an atm charges me a fee then it's refunded to me at the end of the month. My online banking is very good, even have an app that allows me to remote deposit checks. Oh, and my loan interest rates are really decent too. While the banks are nickel and dimeing you to death my CU pays me every month and charges no fees.",
"title": ""
},
{
"docid": "ee8fccbcca3d7618962273ff5df1d43a",
"text": "The model itself is fairly common for serving particular niche markets. A few other organizations which operate in similar setups: prepaid card providers such as NetSpend, GreenDot, AccountNow, etc; startups such as SmartyPig, PerkStreet, WePay, and HigherOne. Still, nobody else seems to be providing full-service online banking to mainstream customers the way we plan to. We plan to have much better security than most banks, which isn't hard given the current sorry state of online banking in the US. And having an intermediary who's looking out for your interests can be a good thing. David, my co-founder Josh lays out our launch plans and why we are invite-only in his latest post. In short, we made a decision to build our own call center rather than outsource it, and that limits how quickly we can bring people on.",
"title": ""
},
{
"docid": "16aafea1672aa9af5d4a70a0f304d5fc",
"text": "In the United States there are some specific savings accounts, some of which have rules from the federal government (education) and some that are setup by the bank/credit Union. Some institutions have a Christmas club, where money is set aside each week or each month and then you are given access at the end of the time period. Some institutions have accounts that pay CD rates but allow you to add funds during the period. They will have some flexibility in setting the time period. I have seen accounts that are designed to save up for a big purchase, or for a specific time period (summer vacation) Ask your bank. Or better yet look at a variety of banks websites for their rate sheet. That will explain all the different account types, rates, and rules. My credit Union allows a large number of sub accounts so that you don't have to commingle the funds.",
"title": ""
},
{
"docid": "10702c2100c7c27f7e4648467503d729",
"text": "I would have been tempted to dismiss your claim, but the data I found shows that you're correct. On the plus side, the growth rate in credit union market share is higher in New York than it is in California. While there is no question that bankers hate credit unions, I can't tell you why credit unions have a smaller market share in NY. Maybe the regulatory environment is part of it. Banks have a big lobby, and they pay a lot of taxes in NYC.",
"title": ""
},
{
"docid": "db7024a10e95c39c93206a786964e63e",
"text": "There are lots of credit unions that are insured by the National Credit Union Administration (NCUA) through the National Credit Union Share Insurance Fund (NCUSIF) instead of the Federal Deposit Insurance Corporation (FDIC). Both cover individual accounts up to $250,000. If you are looking for non-trivial returns on your money, you should consider a brokerage account which is insured by the Securities Investor Protection Corporation (SPIC). In the case of SPIC insured accounts, what you are insured against is the failure of the broker (not against loss on your investments if you choose to invest poorly). SPIC insurance covers up to $500,000 in losses from an insolvent broker. You have already indicated your lack of interest in using other investments, but I am not aware of any non-insured accounts that offer higher interest than insured accounts. You have also indicated your lack of interest in investment advice, but it sounds like what you are looking for is offered by a stable value fund.",
"title": ""
},
{
"docid": "75711be3db9794e3ec7fe7bc7e0195f3",
"text": "Actually it seems you are not quite correct about the number of different banks in Canada. https://en.wikipedia.org/wiki/List_of_banks_and_credit_unions_in_Canada According to this link there are 82-86 banks in Canada plus credit unions. This may still be lower than what would correspond to the number of banks in the US, scaled for canadian population. One further reason not mentioned before could be that the population density in Canada outside of the metropolitan areas could be lower than in the US, leaving to few small towns large enough (10,000+ (a guess corrected due to comment)) to support a bank.",
"title": ""
},
{
"docid": "e0540931e47342a4bd7e2110805f6c79",
"text": "For an American it nearly impossible to open a Swiss bank account. Even a Swiss person want to open a bank account, we have to fill out a document, which asks us if we have a greencard or other relationships with the united states. Some Swiss banks have transferred the money of Americans to Singapore to protect their clients. So you see, the Swiss banks do very much for their clients. And yes, we don't ask very much about money ;) And we are a politically neutral country, but we like the United States more than Russia and of course we have enemies, like the ISIS",
"title": ""
},
{
"docid": "aaaa8fcea2cbfa583bb92f4848b54efa",
"text": "I would strongly suggest you select an answer: all the above two cover everything I can possibly recommend, but perhaps my perspective as a person who was exactly in your shoes a year ago might appeal to you more. My first bank was Chase, and they usually give out a free checking account to students that come with leaves of 100 checks. Unfortunately, I was 24 at that time, and the max possible age to qualify was 23 or 21. Paying $25 for any number of checks was a big deal for me as I had no job, and transportation and rent was costing me $1k/month anyways. I came here and asked questions: lots of them. MrChrister, God bless his soul, recommended credit unions to me. I never knew they existed. A year later, I am a proud member of 3 CUs: I recommend Alliant, DCU and SchoolsFirst: I am their member and very proud of it!",
"title": ""
},
{
"docid": "df4baaa5568774bea88b5aba32f7b7d7",
"text": "First, if you live in/around a reasonably populated urban area, and you're in the United States, I can't see why you would choose to bank with Chase, B of A, or another large commercial bank. I think you would be much better served by banking at a reasonably large credit union. There are many differences between banks and credit unions, but in a nutshell, credit unions are owned by the members, and operate primarily to provide benefits to their members, whereas a bank is owned by the shareholders, and operates primarily to make profits for the shareholders (not to benefit the customers). The banking industry absolutely hates the credit unions, so if you've ever been nickeled-and-dimed with this fee and that charge by your bank, I have to ask why you're still banking with a company that irritates you and/or actively tries to screw you out of your money? I live in California, and I've banked at credit unions almost exclusively since I started working nearly 30 years ago. Every time I've strayed and started banking at a for-profit bank, I've regretted it. For example, a few years ago I opened a checking account at a now-defunct bank (WaMu) just for online use: eBay and so forth. It was a free checking account. When Chase bought WaMu, the account became a Chase account, and it seemed that every other statement brought new fees, new restrictions, and so forth. I finally closed it when they imposed some stupid fee for not carrying enough of a balance. I found out by logging in to their Web site and seeing a balance of zero dollars; they had imposed the fee a few statements back, and I had missed it, so they kept debiting my account until it was empty. At this point, I do about 90% of my banking at a fairly large credit union. I have a mortgage with a big bank, but that was out of my hands, as the lender/originator sold the mortgage and I had no say in the matter. My credit union has a highly functional Web site, permits me to download my account activity to Quicken, and even has mobile apps which allow me to deposit a check by taking a picture of it, or check my account activity, etc. They (my credit union) are part of a network of other credit unions, so as long as I am using a network ATM, I never pay a fee. In sum, I can't see any reason to go with a bank. Regarding checks, I write a small number of checks per year, but I recently needed to reorder them. My credit union refers members directly to Harland-Clarke, a major-league player in the check printing business. Four boxes of security checks was around $130 plus shipping, which is not small money. However, I was able to order the very same checks via Costco for less than half that amount. Costco refers members to a check printing service, which is a front/subsidiary of Harland-Clarke, and using a promo code, plus the discount given for my Costco membership, I got four boxes of security checks shipped to me for less than $54. My advice would be to look around. If you're a Costco member, use their check printing service. Wal*mart offers a similar service to anyone, as does Sam's Club, and you can search around to find other similar services. Bottom line, if you order your checks via your bank or credit union, chances are you will pay full retail. Shop around, and save a bit. I've not opened a new account at a credit union in some time, but I would not be surprised if a credit union offered a free box of checks when you open a new account with them.",
"title": ""
},
{
"docid": "0e9095fc9405eb42ed89002ef76ec184",
"text": "The United Services Automobile Association has a funny legal structure: it's not a corporation and has no shareholders. Policyholders and account holders are paid any profits. In that respect, it functions very much like a credit union; technically, it's structured as a Texas-based and Texas Department of Insurance regulated unincorporated reciprocal inter-insurance exchange and Fortune 500 financial services company offering banking, investing, and insurance to people and families that serve, or served, in the United States military. http://en.wikipedia.org/wiki/USAA Normally a company like this is a corporation so that its owners can benefit from limited liability: otherwise, if the company loses millions or billions, any one of the individual owners / members could be held liable for paying those millions and billions! However, the Texas laws which govern them as a Texas-based inter-insurance exchange also serve to limit the liability of members. The banking services are provided by the USAA Federal Savings Bank, which is structured as a (drumroll) federal savings bank. They also own a couple of other random businesses.",
"title": ""
},
{
"docid": "c47466f7880e9e6b6d3a19c680ce234d",
"text": "Bank and most Credit Union deposit accounts (including CDs) are guaranteed by the Federal government by the FDIC and NCUA, respectively. Some state-chartered credit unions use private insurance, you'll want to be careful about storing lots of money in those institutions.",
"title": ""
},
{
"docid": "436a77a7a99c6137a6a3c3394e5508b9",
"text": "I don't have an account with either of those CUs, but I do have membership at 2 different CUs. If they accept credit card payments online via transfer from another institution, there's no reason to move your money, unless there are other benefits (higher interest rates). All the CUs would likely require is membership ($5 deposit minimum?). If you were to get a card through Chase or Capital One, you wouldn't be expected to open a checking/savings account with them and transition over to those accounts.",
"title": ""
},
{
"docid": "6ec0d1a98960a242e0e709bf32c09507",
"text": "The problem with that is that banks create the money they lend, thus they are able to lend far more. Individuals can only lend money that has already been created, and are at a big disadvantage. If it weren't for the federal reserve money printing machine, it would be a viable lending scheme.",
"title": ""
},
{
"docid": "93afe23fda5c4591decbdc80083421e6",
"text": "\"Yeah the credit union near me sucks too. Short hours, long lines and impossible parking to go with the subpar online banking and lack of ATMs. Just because the sign reads \"\"credit union\"\" doesn't mean it's a good business. Not all credit unions are created equally.\"",
"title": ""
},
{
"docid": "ddd84a775f7704b7e5b5eb6fa60d6209",
"text": "Lehman Brothers and Bear Stearns failed before there ever was such a thing as a Systemically Important Financial Institution (SIFI). OP's article and the study that it is based on are referring quite specifically to SIFI's, not every bank in American history.",
"title": ""
}
] |
fiqa
|
95426a7c616600c8c036ac5dd6c00e1e
|
Car expense deductions with multiple work locations
|
[
{
"docid": "bff69f709bf2f7bdb5f225d3e2e59824",
"text": "\"Suppose that I work from home, but do not qualify for a business use of home deduction. As I understand it, this means I cannot deduct trips from home to another work location (e.g., going to a client's home or office to do work there). I do not think this is true. You cannot deduct trips to your main business location, i.e.: you cannot deduct trips to your office or client's location if this is your main client and you routinely work on-site. However, if you only visit your clients on occasion for specific events while doing your routine work at home - you can definitely deduct those trips. The deduction of the home usage itself has nothing to do with it. However, there's a different reason they refer to pub 587. Your home must qualify as principal place of business (even if it doesn't qualify for deduction). The qualifications of \"\"principal place of business\"\" are described in pub 587. \"\"if for some personal reason you do not go directly from one location to the other, you cannot deduct more than the amount it would have cost you to go directly from the first location to the second.\"\" What is not clear to me is what exactly is deductible if there are significant time gaps (within a single day) between trips to different clients. You got it right. What this quote means is that if you have client A and client B, and you drive from A to B - you can only deduct the travel between A and B, nothing else. I.e.: if you have 2 hours to kill and you take a trip to the mall - you cannot deduct the mileage attributable to that trip. You only deduct the actual distance between A and B as it would be had you driven from A to B directly. The example you cite re first client being considered as the place of business is for the case where your home doesn't qualify as principal place of business. In this case you start counting miles from your first client, and only for direct trips from client to client. If you only have 1 client in that day, tough luck, nothing to deduct. Also, it's not clear whether stopoffs between clients would really be \"\"personal reasons\"\", since the appointment times are often set by the client, so it's not as if the delay between A and B was just because I felt like it; there was never the option of going directly from A to B. That's what is called \"\"facts and circumstances\"\". You can argue that you had enough time between meetings to go back to your home office to continue working. The IRS agent auditing you (and you're likely to get audited) will consider that. Maybe will accept it. Maybe not. If I had a gap like that described above, I could save on my taxes by going to the park or a hamburger stand instead of going home between A and B But then you wouldn't be at home, so why would it be \"\"principal place of business\"\" if you're not there? Boom, lost deduction for the trip to the first client. I suggest you talk to a licensed tax adviser (EA/CPA licensed in your State). You're dealing with deductions that are considered \"\"red flags\"\" for the IRS. I.e.: many people believe that these deductions (business use of your home/car) trigger audits. To substantiate business use of your car you need to keep very good track of your travels (literally travel log, they sell them at Staples), and make sure to distinguish between personal travel and business travel, keep proofs that the meetings took place (although keeping a log is a requirement, it can be backdated/faked, so if audited - the IRS will want to see more than your own documentation). A good tax adviser will educate you on all these rules, and also clarify the complexities you were asking about here. I'm not a tax adviser, so don't rely on this answer when you're preparing your tax return or responding to the IRS audit. In your edit you ask this: Specifically, what I'm wondering is whether it is possible for a home to qualify as a \"\"principal place of business\"\" for purposes of deducting car expenses but not for the home office deduction. The answer is yes. Deductibility is determined by exclusivity of use, among other things. But the fact that you manage your business from your kitchen doesn't make your kitchen any less of a principal place of business. It is non-deductible because you also cook your dinners there, but it is still, nonetheless, your principal place of business. The Pub 587 which I linked to has these qualifications: Your home office will qualify as your principal place of business if you meet the following requirements. You use it exclusively and regularly for administrative or management activities of your trade or business. You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. As you see, exclusivity of the usage of your home area is not a requirement here. The \"\"exclusively and regularly\"\" in the quote refers to your business not using any other location, and managing it from home regularly. I.e.: if you manage your business a day in a year - that's not enough for it to be considered principal. If you manage your business from your office and your home - you cannot consider home as principal.\"",
"title": ""
}
] |
[
{
"docid": "4e41f2d5ccac706564bf5b0af4e17ff6",
"text": "Unless you own a business and the car is used in that business you can't write off your auto repairs. If you start a sole-proprietorship in your own name there are all sorts of things you can write off as long as there is a reasonable expectation of profit. This includes a portion of your car repairs, a portion of your home expenses (assuming it's a home-based business), any tools used in the business, all kinds of stuff. The portion of your auto is based on total miles driven in the year vs. total miles driven for business purposes. Eligible auto expenses include repairs, gas/oil, insurance, parking, and interest on the auto loan. There are some things to remember: I'm no expert on California business law. Talk to a lawyer and an accountant if you wish to go this way. Many offer a half-hour free session for new clients.",
"title": ""
},
{
"docid": "81e8e8a67a6655b2089007919ee45413",
"text": "No. Regular W2 employees cannot deduct housing or transportation costs related to their employment. However, in the US, many employers offer Parking and/or Transit FSA programs which are usually collectively referred to a Commuter Benefits FSA programs, this is particularly common among larger employers with locations in major metropolitan cities. Under Commuter benefits FSAs employees can defer up to $255 per month from their gross pay, tax-free, for parking and/or transit expenses. Eligible expenses include things like bus and train passes or parking at a train or bus station. These are money-in/money-out arrangements so expenses can only be claimed against contributions that have been made, unlike a Health FSA. Though, like a health FSA, contributions are subject to use-it or lose-it provisions. These programs must be sponsored by the employer for an employee to take advantage of them though. Some jurisdictions mandate that employers above a certain threshold must offer commuter benefits.",
"title": ""
},
{
"docid": "bae6e8d76b98b2ba96a5520be36c2c8f",
"text": "I believe moving reimbursement has to be counted as income no matter when you get it. I'd just put it under miscellaneous income with an explanation.",
"title": ""
},
{
"docid": "ec14edf569fc9869a3b600e2a9221def",
"text": "No, you cannot deduct it. There's no business substance in such a trip, it is your vacation, and as such cannot be claimed as an expense against the rental income. You may be able to deduct the coffee you buy for the meeting with the property manager while there, but there's no way you can justify a 7-10 days vacation with your whole family as an expense to maintain the rental property. Since you will only have less than 2 weeks personal use, you won't need to prorate expenses, so you have that at least.",
"title": ""
},
{
"docid": "b00dcf0b2faaae67c0b38a657cffcb20",
"text": "\"I'm not a tax professional, but as I understand it, you are not expected to commute from San Francisco to Boston. :) If your employer has not provided you with an external office, then yes, you have very likely met the \"\"convenience of the employer\"\" test. However, to take the home office deduction, there are many requirements that have to be met. You can read more at the Nolo article Can You Deduct Your Home Office When You're an Employee? (Thanks, keshlam) The home office deduction has many nuances and is enough of an IRS red flag that you would be well-advised to talk to an accountant about it. You need to be able to show that it is exclusively and necessarily used for your job. Another thing to remember: as an employee, the home office deduction, if you take it, will be deducted on Schedule A, line 21 (unreimbursed employee expenses), among other Miscellaneous Deductions. Deductions in this section need to exceed 2% of your adjusted gross income before you can start to deduct. So it will not be worth it to pursue the deduction if your income is too high, or your housing expenses are too low, or your office is too small compared to the rest of your house, or you don't itemize deductions.\"",
"title": ""
},
{
"docid": "d04d1455d5b8090206ebb4e035f20e7e",
"text": "\"Short answer, yes. But this is not done through the deductions on Schedule A. This can happen if the employer creates a Flexible Spending Account (FSA) for its employees. This can be created for certain approved uses like medical and transportation expenses (a separate account for each category). You can contribute amounts within certain limits to these accounts (e.g. $255 a month for transportation), with pre-tax income, deduct the contributions, and then withdraw these funds to cover your transportation or medical expenses. They work like a (deductible) IRA, except that these are \"\"spending\"\" and not \"\"retirement\"\" accounts. Basically, the employer fulfills the role of \"\"IRA\"\" (FSA, actually) trustee, and does the supporting paperwork.\"",
"title": ""
},
{
"docid": "19a5eaff889e256c24b4d030e13e7d2c",
"text": "As a general rule, you must choose between a mileage deduction or an actual expenses deduction. The idea is that the mileage deduction is supposed to cover all costs of using the car. Exceptions include parking fees and tolls, which can be deducted separately under either method. You explicitly cannot deduct insurance costs if you claim a mileage deduction. Separately, you probably won't be able to deduct the deductible for your car as a casualty loss. You first subtract $100 from the deductible and then divide it by your Adjusted Gross Income (AGI) from your tax return. If your deductible is over 10% of your AGI, you can deduct it. Note that even with a $1500 deductible, you won't be able to deduct anything if you made more than $14,000 for the year. For most people, the insurance deductible just isn't large enough relative to income to be tax deductible. Source",
"title": ""
},
{
"docid": "ade1f187fc1c0403179210d8806b6971",
"text": "Yes, you will be able to claim it as an expense on your taxes, but not all in the current year. It is split into three categories: Current Expenses - Assets purchased such as inventory would be able to be claimed in the current year. Assets - Vehicles, Buildings, and equipment can be depreciated over time based on the value you purchased them for and the CCA class. Goodwill - In tax terms this is the value of the business purchase that is not eligible in 1 or 2 and is called Eligible Capital Property. This can be expensed over time. From info at CRA website: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/lf-vnts/byng/menu-eng.html",
"title": ""
},
{
"docid": "c1bf45ddcbca898af994b39c75a2d143",
"text": "\"No, you can't deduct any of that. What they're talking about is a flexible spending plan, otherwise known as \"\"Use it or lose it\"\" money. You choose to put pre-tax dollars into a restricted fund. This money is not taxed, in fact technically, it's not even income. You can only spend out of that fund to buy parking, tolls, transit tickets, things like that. Any money not used for those purposes in a suitable time period evaporates. Gone, and irrecoverable. You can't even take the loss as a tax deduction! You have to set this account up with your employer. You can't just dig up your old transit and parking receipts and stick those on your Schedule A. Take 3 people. As you can see, Fran is shooting herself in the foot. This is where these plans can go wrong.\"",
"title": ""
},
{
"docid": "7ab2b7a9ead93dbd14f80545351f29f7",
"text": "The basis of the home is the cost of land and material. That's it. Your time isn't added to basis. No different than if you spend 1000 hours in a soup kitchen. You deduct miles for your car and expenses you can document but you can't deduct your time. Over 2 years, you could have a gain up to $500K per married couple and pay no tax.",
"title": ""
},
{
"docid": "1ba79cc552d47f900a08881f2c79d879",
"text": "You can deduct this if the main purpose of the trip is to attend the seminar. Travel expenses relating to the attendance at conferences, seminars and other work-related events are deductible to the extent that they relate to your income-producing activities. You will need to apportion your travel expenses where you undertake both work-related and private activities. Travel costs to and from the location of the work-related event will only be deductible where the primary purpose of the travel was to attend the event. Accommodation, food and other incidental costs must be apportioned between work-related and private activities taking into account the types of activities that you did on the day you incurred the cost. You might like to consider in advance what you would tell them if they questioned this - for instance you might say (if they are true):",
"title": ""
},
{
"docid": "b7a3cbe87c7d49cdb8cc02b7f7fdec32",
"text": "\"You're getting paid by the job, not by the hour, so I don't see why you think the employer is obligated to pay you for the drive time. The only way that might be true, as far as I can see, is if he were avoiding paying you minimum wage by structuring your employment this way. It looks like to me you're over the minimum wage based on what you wrote. At maximum \"\"unpaid\"\" drive time (59 min each way) and maximum length of job (4 hours as you stated it), gives your minimum hourly rate of $8.83/hr. The federal minimum wage is currently $7.25/hr, so you're over that. A quick search online suggests that NV does have a higher minimum at $8.25/hr under some conditions, but you're still over that too. The fact that you're required to pick-up the helpers and that you have a company car at home probably does mean that you're \"\"on the clock\"\" from the moment that you leave your house, but, again, you're not actually being paid by the clock. As long as no other law is being broken (and it appears from your telling that there isn't), then the employer can set any policy for how to compute the compensation that he wants. Regarding taxes, the employer probably has no discretion there. You're making what you're making, and the employer needs to tax it in total. Since you're driving a company vehicle from home, I don't think that you're entitled to any reimbursement (vs. wages) that would not be taxed unless maybe you pay for gas yourself. The gas money, if applicable, should be reimbursable as a business expense and that generally would not be taxed.\"",
"title": ""
},
{
"docid": "081f555c38ac6fb2c9bc41996fc7ad5a",
"text": "\"Disclaimer: My answer is based on US tax law, but I assume Australian situation would be similar. The IRS would not be likely to believe your statement that \"\"I wouldn't have gone to the country if it wasn't for the conference.\"\" A two-week vacation, with a two-day conference in there, certainly looks like you threw in the conference in order to deduct vacation expenses. At the very least, you would need a good reason why this conference is necessary to your business. If you can give that reason, it would then depend on the specifics of Australian law. The vacation is clearly not just incidental to the trip. The registration for the conference is always claimable as a business expense.\"",
"title": ""
},
{
"docid": "a57851d680f06d0d027cbc370f7c762e",
"text": "I contacted Stephen Fishman, J.D., the author of Home Business Tax Deductions, to let him know that this question was missing from his book. He was kind enough to send a reply. My original phrasing of the question: If your car is used for both business and personal use, and you deduct via the actual expense method, do trips to the mechanic, gas station, and auto parts store to service or repair the car count as business miles, personal miles, or part-business-part-personal miles? What about driving the newly-purchased car home from the dealership? And his response: Good question. I can find nothing about this in IRS publication or elsewhere. However, common sense would tell us that the cost of driving to make car repairs should be deductible. If you use your car for business, it is a business expense, just like transporting any other piece of business equipment for repairs is a business expense. This should be so whether you use the standard mileage rate or actual expense method. You should probably reduce the amount of your deduction by the percentage of personal use of the car during the year. The same goes for driving a car home from the dealer.",
"title": ""
},
{
"docid": "c3c977ec4a6f2ce7f1d3adc224bc472f",
"text": "\"Usually... I think that's overstating the case. You CAN get a bargain (especially if the place is in not-so-great condition), but not every foreclosure will be a good deal even if it is priced well below its most recently appraised value. As the buyer it's your responsibility to determine whether it's priced well or not, and to decide whether you're willing and able to repair its deficiencies after you buy it. The same's true when purchasing any house; foreclosures just make it more likely that there are problems and (hopefully) wind up being priced to allow for them. I don't know of a single website which lists all foreclosures. Some of the home listing websites do have a \"\"show me foreclosure listings\"\" filter, and I'm sure that the better tools available to real estate agents can select these. But if that's the direction you're interested in going, you should be looking at distressed properties generally, NOT just foreclosures; you may get a better deal, in the long run, by going for the one that has been mechanically maintained but is just plain ugly rather than the one with a pretty skin whose heating system hasn't been serviced for the last decade. Do your homework, shop around, don't fall in love with any one house... all the same rules apply at this end of the spectrum just as strongly as they do in the mid or upper ranges. Perhaps more so. Happy hunting!\"",
"title": ""
}
] |
fiqa
|
99ff6b6841998607e70e530bc5db9773
|
Formation of S-Corp for Gambling Trade
|
[
{
"docid": "309cd40201a9e3c287a8d91edaa4ef11",
"text": "In a sole proprietorship AND an LLC, the expenses can still be deducted against the profits or losses from the operations. The IRS does not even require that a profit seeking activity be incorporated under its own entity, hence why this is also applicable in a sole proprietorship. From what you've said, there is no reason to use a more complicated and costly corporate structure at all. In comparison, a sole proprietorship and single-member LLC will be completely pass through entities to the IRS and all of their earnings go to you. With the LLC you have the option of letting the LLC's earnings remain with the entity itself, or you can just treat it as your own and pay individual income taxes on it. This has nothing to do specifically with a gambling business and is largely a red herring to your profit seeking motives. Gambling in casino games and lotteries already enjoy favorable tax treatment in some regards. Gambling in capital markets also enjoy a myriad of favorable tax laws. A business entity related to this purpose should be able to deduct costs related to this trade (and pass an audit more convincingly than not having formed an LLC and business bank account)",
"title": ""
},
{
"docid": "2af033af3f8b981e4e7147ebc864cc28",
"text": "\"You probably don't need S-Corp. There's no difference between what you can deduct on your Schedule C and what you can deduct on 1120S, it will just cost you more money. Since you're gambling yourself, you don't need to worry about liability - but if you do, you should probably go LLC route, much cheaper and simpler. The \"\"reasonable salary\"\" trick to avoid FICA won't work. Don't even try. Schedule C for professional gamblers is a very accepted thing, nothing extraordinary about it.\"",
"title": ""
}
] |
[
{
"docid": "7fee72ff8cbd860eabd543e5335011fb",
"text": "GD Singapore has practically every kind of live casino club, Singapore Online casino slot, betting diversions in the market like opening amusements, 4D, dice recreations, rooster battling, poker, baccarat, and continuous live gambling club else you name the diversion and we will give the amusement to everybody bases on clients' request. Singapore Online casino slot We will continue refreshing and give the most selective advancements for clients over the advancement page on our site, each advancements are extraordinarily intended for each clients.",
"title": ""
},
{
"docid": "80a8b9c11b7b7f5901c61027d8fcda8a",
"text": "So you're 23 with no higher graduation, certificates etc which would allow you to study / training but with a high passion for logical thinking and math? Im 31 now, i was in a similar position back then when i was 23. The very best thoughts i want to throw you over: FORGET IT (AT LEAS THIS WAY) - You need cash equity (not borrowed) to even get a foot in the door (read on why) . The fact that you even consider to trade with a few hundred dollar shows how desperate you're, it would very likely result in loss, resignation and mental pain. Let me get you a reality check: If you think you can quadruple your money within months with ease and no risk your wrong - this mindset is gambling - don't end up as gambler. To make 24K a year or 2K a month (taxes are not included) would mean 10% a month on a 20K account which would be almost impossible on a long run (show me a hedge-fund with that performance) - What do you do on draw down months - 3 months no profit would mean you're 8K behind - you wont make a living wit ha 20K account in a western civilization and normal lifestyle. Big question, how do you want to trade? Everything newsfeed / latency based is very hard to compete in. So called technical systems drawing lines, fancy indicators etc are bogus in my opinion (read taleb black swan). Trading/speculation based on fundamentals is a different animal - It to be able to do that you would need to understand the market you trade and what influences it, takes lot time, brainpower , tools ready (ugh, hard to write the picture on my mind). Im 31 years into trading now, seen so many faces come and most of them go in that time , to me it sounds like you quietly hope for a lotto ticket. To speak about hardware, ie the tools you need depends on your trading style (again a hint that a lot more study is needed. If you're really hooked, readreadread and get in touch with people - always question yourself.",
"title": ""
},
{
"docid": "16b09fe9637f9928c7f4acd5a6ae0fb2",
"text": "The trading industry is one that rakes in a lot of profit. But all the buying and selling can become a business management nightmare. To help you with it, we have SAP Business One ERP for Trading Industry. The manufacturing industry on the other hand, is also a very lucrative industry. But the buying of raw materials, machine and manpower can be hard to keep track of. That’s why we’ve introduced SAP Business One ERP for Manufacturing Industry. While these industries are mostly on a large scale or are a part of a large scale business, there are many that are on a smaller scale. We have SAP Business One ERP for Small Business, specifically for the small business out there. We also have SAP Business One ERP for Service based Industry, which has been specifically designed for the service based industry, keeping their requirements in mind. SOFTCORE SOLUTIONS is a global software solutions provider with over 10 years of Industry experience. Since the year of 2007, our organization has been established as an authorized channel partner for SAP Business One. SOFTCORE SOLUTIONS has a successful track record for delivering on time, within budget, state-of-the-art IT solutions to a broad range of global clientele. From single problem applications to complete turnkey operations, SoftCORE Solutions delivers solutions to your doorstep. The Company's infrastructure allows it to implement projects on multiple platforms in India or abroad. The Company is involved in evolving software solutions in the latest technology areas. Company has excellent practical hands-on experience in database related business applications. It customizes software for specific application, environment & roles. SOFTCORE SOLUTIONS builds & delivers solutions with high quality of commitment and expertise",
"title": ""
},
{
"docid": "b8196b546ce56d3e8f33d88e27da513d",
"text": "Preparation & processing an application for obtaining Code Number / sub -code number to the newly establishment & Branch office in various part of states for extending the benefit of ESI Scheme to employees employed in that regions. We would process an online application to obtain TIC of newly joined employees within 10 days from the date of joining and data for the same shall be provided by you in time. We would be retrieving the Individual Insurance No.s & maintain their contributions in the devised ESIC Register to be maintained. Monthly Payment Challans to be computed online and same shall be forwarded to you for payment on or before 21st of every month. To ensure payment before due date, data shall be provided in time. Preparation and compilation of Half Yearly Returns and Annual Returns would be our responsibility in cases where manual challan is prepared. All the Payments and Returns would be filed within the stipulated time and the adherence would be monitored by us. Guidelines to the Insured Persons (I.P.) pertaining to the Benefits under the ESIC Act, 1948 and provision of Information related to Insurance Medical Practitioner(Imp's) and Hospitals through ESIC. We would be liasoning on behalf of the establishment with the Regional Office & Branch Office for ensuring smooth functioning. We would also be attending the periodical Inspections and hearings on behalf of the establishment. The Responsibility of the Assessment would be limited for the period which would be coverable under our service tenure. We will keep the Company posted on all Amendments & Development of the Act.",
"title": ""
},
{
"docid": "d204e5a191765d7f582e25039e810cc9",
"text": "\"To keep it simple, let's say that A shares trade at 500 on average between April 2nd 2014 and April 1st 2015 (one year anniversary), then if C shares trade on average: The payment will be made either in cash or in shares within 90 days. The difficulties come from the fact that the formula is based on an average price over a year, which is not directly tradable, and that the spread is only covered between 1% and 5%. In practice, it is unlikely that the market will attribute a large premium to voting shares considering that Page&Brin keep the majority and any discount of Cs vs As above 2-3% (to include cost of trading + borrowing) will probably trigger some arbitrage which will prevent it to extend too much. But there is no guarantee. FYI here is what the spread has looked like since April 3rd: * details in the section called \"\"Class C Settlement Agreement\"\" in the S-3 filing\"",
"title": ""
},
{
"docid": "94988b9df584582dffc687332b3d0467",
"text": "A confined agency is a prison entity on its personal, separate from the company’s owner. VALIS Group Inc is recognized as having ownership in a constrained business enterprise thru the purchase of stocks. Limited corporations, then How to incorporate on their internet income. As you intend how your enterprise will grow, there are a number of business structures to take into account. While the method may be specified and country-precise, this article outlines the general steps and concerns for incorporation.",
"title": ""
},
{
"docid": "4809d86d4acb03d754450eb270c48fa1",
"text": "For video games the S&P home entertainment software index will probably work. For airlines there's the S&P airlines index but that may not work well for private jets. You should browse different S&P indicies based on GICS classifications or any other indicies you may find and then download their returns for the past few years and run a regression analysis on excel. Find the correlation between the indicies and the stock you're looking at then select the index with the highest correlation.",
"title": ""
},
{
"docid": "4286585f14be963a8f314ca32f310036",
"text": "\"This is actually quite a complicated issue. I suggest you talk to a properly licensed tax adviser (EA/CPA licensed in your State). Legal advice (from an attorney licensed in your State) is also highly recommended. There are many issues at hand here. Income - both types of entities are pass-through, so \"\"earnings\"\" are taxed the same. However, for S-Corp there's a \"\"reasonable compensation\"\" requirement, so while B and C don't do any \"\"work\"\" they may be required to draw salary as executives/directors (if they act as such). Equity - for S-Corp you cannot have different classes of shares, all are the same. So you cannot have 2 partners contribute money and third to contribute nothing (work is compensated, you'll be getting salary) and all three have the same stake in the company. You can have that with an LLC. Expansion - S-Corp is limited to X shareholders, all of which have to be Americans. Once you get a foreign partner, or more than 100 partners - you automatically become C-Corp whether you want it or not. Investors - it would be very hard for you to find external investors if you're a LLC. There are many more things to consider. Do not make this decision lightly. Fixing things is usually much more expensive than doing them right at the first place.\"",
"title": ""
},
{
"docid": "839decb72a043b2574f664f4caef55df",
"text": "How is the business organized? If as a General Partnership or LLC that reports as a partnership, you will be getting distributed to you each year your % ownership of the earnings or loss. But note, this is a paperwork transfer on the form K-1, which must then carryover to your tax return, it does not require the transfer of cash to you. If organized as an S-Corp, you should be holding shares of the company that you may sell back to the S-Corp, generally as outlined in the original articles of incorporation. The annual 'dividend' (earnings remaining after all expenses are paid) should be distributed to you in proportion to the shares you hold. If a C-Corp and there is only one class of stock that you also hold a percentage of, the only 'profits' that must be distributed proportionally to you are declared dividends by the board of directors. Most family run business are loosely formed with not much attention paid to the details of partnership agreements or articles of incorporation, and so don't handle family ownership disputes very well. From my experience, trying to find an amicable settlement is the best...and least expensive....approach to separation from the business. But if this can't be done or there is a sizable value to the business, you may have to get your own legal counsel.",
"title": ""
},
{
"docid": "ecc935d4a7335aef4bb4b595a533e79f",
"text": "\"If you intend to gamble, you should bring cash with you and turn your chips into cash at the end of the night. If the casino closes and you haven't cashed in your chips before docking, you'll be out of luck. Also if you use your ship card to get money for gambling, they will charge you a hefty fee. If you use the electronic poker table or a machine that doesn't take actual money, you'll have to use your ship card. Make sure when you leave the at the end of the night that you \"\"cash in\"\" your electronic winnings. This is really confusing, but the machines will debit your ship card, into a 'casino account' and if you just walk away thinking it will net out your other purchases (drinks, food, etc) you will lose all of that money. Summary: If you gamble, use real money and convert your winnings back into real money.\"",
"title": ""
},
{
"docid": "685c14304a8149f9c6767409cb71bdb3",
"text": "This is what is called a Structured Product. The linked page gives an overview of the relative pros and cons. They tend to hold the bulk of funds in bonds and then used equity index futures and other derivatives to match returns on the S&P, or other indices tracked. All combine to provide the downside protection. Note that your mother did not receive the dividends paid by the constituent companies. She only received the capital return. Here is a link to Citigroup (Europe) current structured product offerings. Here is a link to Fidelity's current offerings of structured products. Here is Investopedia's article detailing the pitfalls. The popularity of these products appears to be on the wane, having been heavily promoted and sold by the providers at the time your mother invested. Most of these products only provide 100% protection of capital if the market does not fall by a specified amount, either in successive reporting periods or over the life of the product. There are almost as many terms and conditions imposed on the protection as there are structured products available. I have no personal experience buying this type of product, preferring to have the option to trade and receive dividend income.",
"title": ""
},
{
"docid": "696815e6eea59859df62432679186f7d",
"text": "\"What is being described in Longson's answer, though helpful, is perhaps more similar to a financial spread bet. Exactly like a bookmaker, the provider of a spread bet takes the other side of the bet, and is counter party to your \"\"trade\"\". A CFD is also a bet between two parties. Now, if the CFD provider uses a market maker model, then this is exactly the same as with a spread bet and the provider is the counter party. However, if the provider uses a direct market access model then the counter party to your contract is another CFD trader, and the provider is just acting as an intermediary to bring you together (basically doing the job of both a brokerage and an exchange). A CFD entered into through a direct market access provider is in many ways similar to a Futures contract. Critically though, the contract is traded 'over-the-counter' and not on any centralized and regulated exchange. This is the reason that CFDs are not permitted in the US - the providers are not authorized as exchanges. Whichever model your CFD provider uses, it is best to think of the contract as a 'bet' on the future price movements of the underlying stock or commodity, in much the same way as with any other derivative instrument such as futures, forwards, swaps, or options. Finally, note that because you don't actually own the underlying stock (just as Longson has highlighted) you won't be entitled to any of the additional benefits that can come with ownership of a stock, such as dividend payments or the right to attend shareholder meetings. RESPONSE TO QUESTION So if I understand correctly, the money gained through a direct market access model comes from other investors in the same CFD who happened to have invested in the \"\"wrong\"\" direction the asset was presumed to take. What happens then, if no one is betting in the opposite direction of my investment. Your understanding is correct. If literally nobody is betting in the opposite direction to you, then you will not be able to trade. This is true for any derivative market; if suddenly every single buyer were to remove their bids from the S&P futures, then no seller would be able to sell. This is a very extreme scenario, as the S&P futures market is incredibly liquid (loads of buyers and sellers at all times). However, if something like this does happen (the flash crash of 2010, for example), then the centralized futures exchanges such as the CME have safeguards in place - the market become locked-limit so that it can only fall so far, there may be no buyers below the lock limit price, but the market cannot fall through it. CFD providers are not obliged to provide such safeguards, which is why regulators in the US don't permit them to operate. It may be the case that if you're trying to buy a CFD for a thinly traded and ill-liquid stock there will be no seller available. One possibility is that the provider will offer a 'hybrid' model, and in the absence of an independent counter party they will take the opposite side of your bet, and then offset their risk by taking an opposing position in the underlying stock.\"",
"title": ""
},
{
"docid": "ba77f94ecf3dc8303a13bc32bfb714a5",
"text": "\"This will do nothing to prevent the market being a casino as there are plenty of players in the market capable of out witting you at lower frequencies that HFT. In fact most of the money small investors \"\"lose\"\" do not go to HFT strategies, but to lower intra-day and multi-day strategies that are just smarter than you are. I really am confused at this anger at HFT. It is very poorly informed. The people stealing your money are lower frequency hedge funds. HFT steals money from THEM. In any case, the market was *designed* to be a casino because without speculators liquidity really *does* dry up and people lose faith in the market.\"",
"title": ""
},
{
"docid": "5d321b84f039bd1722170d381b751b4c",
"text": "scr888 We are an online casino with the most complete selection of entertainment for the Malaysia market. Playing at GD2 ONE is to do it with all the guarantees because our offer is backed by the licenses granted to us by the General Direction of Game Management after passing all the certification tests, after a complex process of study and analysis. We bet for you, to offer you scr888 the most attractive online leisure offers on the market. We do this with the strength and security of being part of the GD2 ONE, one of the leading and most prestigious companies in the gambling and betting industry with presence worldwide. Experience and innovation go hand in hand with GD2 ONE thanks to the most reputed professionals.",
"title": ""
},
{
"docid": "9b4a51564be3849c4c55bf66e6249c02",
"text": "Good answer. I set up an S-Corp on my own, but I intend to transfer our intellectual property to an LLC at a later date. I would say hiring an attorney to draft an operating agreement is a must and worth the expense.",
"title": ""
}
] |
fiqa
|
d63a8b2b6bc229ad494dbb63447a5f4d
|
Should I file taxes or Incorperate a personal project?
|
[
{
"docid": "a0af92a78e11e80bd05b2a3c99589328",
"text": "Normally, incorporation is for liability reasons. Just file your taxes as a business. This just means adding a T2125 to your personal return. There's no registering, that's for GST if over a certain threshold. There's even a section in the instructions for internet businesses. http://www.cra-arc.gc.ca/E/pub/tg/t4002/t4002-e.html#internet_business_activities This is the form you have to fill out. Take note that there is a place to include costs from using your own home as well. Those specific expenses can't be used to create or increase a loss from your business, but a regular business loss can be deducted from your employment income. http://www.cra-arc.gc.ca/E/pbg/tf/t2125/t2125-15e.pdf",
"title": ""
},
{
"docid": "806e9a3ed65f7aa9a2cea31e6a32d23f",
"text": "\"I don't know what you mean by \"\"claim for taxes,\"\" I think you mean pay taxes. I'm not sure how corps function in Canada but in the US single owner limited liability entities typically pass the net income through to the owner to be included in their personal tax return. So it seems all of this is more or less moot, because really you should probably already be including your income sourced from this project on your personal taxes and that's not really likely to change if you formed something more formal. The formal business arrangements really exist to limit the liability of the business spilling over in to the owner's assets. Or trouble in the owner's life spilling over to interrupt the business operation. I don't know what kind of business this is, but it may make sense to set up one of the limited liability arrangements to ensure that business liability doesn't automatically mean personal liability. A sole proprietorship or in the US we have DBA (doing business as) paperwork will get you a separate tax id number, which may be beneficial if you ever have to provide a tax ID and don't want to use your individual ID; but this won't limit your liability the way incorporating does.\"",
"title": ""
},
{
"docid": "976acf12fb1f54a3edf6824216b75099",
"text": "There are two reasons for incorporating a business in Canada - limiting liability and providing some freedom in structuring your taxes. Since you are asking about taxes, I will restrict myself to that topic. First of all, remember that if you don't make much money, there isn't much tax to save by clever structuring of your affairs. And if you do incorporate, you will pay taxes as a corporation, and pay taxes again on your salary paid from that corporation. It can still be advantageous, because the small business tax rate is less that the higher tax brackets of personal taxes, and you don't have to pay out all of the profit as salary. If you don't incorporate, you still must pay taxes on your net income from the business. (See brian's answer.) Definitely keep track of your income and expenses, even if you don't plan on making money, in case you get audited. If the CRA wants to call your hobby a business, you will need to show that you haven't made any profit. I am just giving you a few bits of advice because this subject is complicated. Too complicated for an answer on this site. If you are still interested, go to your local library and get some books on the subject.",
"title": ""
}
] |
[
{
"docid": "caac26bdd391f8e851b7ad6108cc0407",
"text": "Yes, you do. Depending on your country's laws and regulations, since you're not an employee but a self employed, you're likely to be required to file some kind of a tax return with your country's tax authority, and pay the income taxes on the money you earn. You'll have to tell us more about the situation, at least let us know what country you're in, for more information.",
"title": ""
},
{
"docid": "329976f4cf91b6bb75ddc8697909597f",
"text": "I am not an accountant. However I am an independent contractor. When making money, it's best to estimate the taxes. Especially as you make more money. For two reasons: Your estimates will never be spot on, no worries everything will be reconciled when you file your return.",
"title": ""
},
{
"docid": "8de0bd6e321f81879376c5cc24885ddb",
"text": "So there are a lot of people that get into trouble in your type of self employment situation. This is what I do, and I use google drive so there are no cost for tools. However, having an accounting system is better. Getting in trouble with the IRS really sucks bad.",
"title": ""
},
{
"docid": "cecc860897423d6c529366fcac3bc914",
"text": "\"You need to hire a tax professional and have them sort it out for you properly and advise you on how to proceed next. Don't do it yourself, you're way past the stage when you could. You're out of compliance, and you're right - there are penalties that a professional might know how to mitigate, and maybe even negotiate a waiver with the IRS, depending on the circumstances of the case. Be careful of answers like \"\"you don't need to pay anything\"\" that are based on nothing of facts. Based on what you said in the question and in the comments, it actually sounds like you do have to pay something, and you're in trouble with the IRS already. It might be that you misunderstood something in the past (e.g.: you said the business had filed taxes before, but in fact that might never happened and you're confusing \"\"business filed taxes\"\" with \"\"I filed schedule C\"\") or it might be the actual factual representation of things (you did in fact filed a tax return for your business with the IRS, either form 1120 of some kind or 1065). In any case a good licensed (CPA or EA) professional will help you sort it out and educate you on what you need to do in the future.\"",
"title": ""
},
{
"docid": "58fd1222e8565395bee7290f7a71a3e3",
"text": "\"In the U.S., Form 1040 is known as the tax return. This is the form that is filed annually to calculate your tax due for the year, and you either claim a refund if you have overpaid your taxes or send in a payment if you have underpaid. The form is generally due on April 15 each year, but this year the due date is April 18, 2016. When it comes to filing your taxes, there are two questions you need to ask yourself: \"\"Am I required to file?\"\" and \"\"Should I file?\"\" Am I required to file? The 1040 instructions has a section called \"\"Do I have to file?\"\" with several charts that determine if you are legally required to file. It depends on your status and your gross income. If you are single, under 65, and not a dependent on someone else's return, you are not required to file if your 2015 income was less than $10,300. If you will be claimed as a dependent on someone else's return, however, you must file if your earned income (from work) was over $6300, or your unearned income (from investments) was over $1050, or your gross (total) income was more than the larger of either $1050 or your earned income + $350. See the instructions for more details. Should I file? Even if you find that you are not required to file, it may be beneficial to you to file anyway. There are two main reasons you might do this: If you have had income where tax has been taken out, you may have overpaid the tax. Filing the tax return will allow you to get a refund of the amount that you overpaid. As a student, you may be eligible for student tax credits that can get you a refund even if you did not pay any tax during the year. How to file For low income tax payers, the IRS has a program called Free File that provides free filing software options.\"",
"title": ""
},
{
"docid": "90d0f60baf23f68e50157d52c6ab539b",
"text": "\"I would advise against \"\"pencil and paper\"\" approach for the following reasons: You should e-file instead of paper filing. Although the IRS provides an option of \"\"Fillable Forms\"\", there's no additional benefit there. Software ensures correctness of the calculations. It is easy to make math errors, lookup the wrong table It is easy to forget to fill a line or to click a checkbox (one particular checkbox on Schedule B cost many people thousands of dollars). Software ask you questions in a \"\"interview\"\" manner, and makes it harder to miss. Software can provide soft copies that you can retrieve later or reuse for amendments and carry-overs to the next year, making the task next time easier and quicker. You may not always know about all the available deductions and credits. Instead of researching the tax changes every year, just flow with the interview process of the software, and they'll suggest what may be available for you (lifetime learners credit? Who knows). Software provides some kind of liability protection (for example, if there's something wrong because the software had a bug - you can have them fix it for you and pay your penalties, if any). It's free. So why not use it? As to professional help later in life - depending on your needs. I'm fully capable of filling my own tax returns, for example, but I prefer to have a professional do it since I'm not always aware about all the intricacies of taxation of my transactions and prefer to have a professional counsel (who also provides some liability coverage if she counsels me wrong...). Some things may become very complex and many people are not aware of that (I've shared the things I learned here on this forum, but there are many things I'm not aware of and the tax professional should know).\"",
"title": ""
},
{
"docid": "531b1aba2b2c8be716305089b22240a9",
"text": "\"There are basically two approaches, based on how detailed you want to be in your own personal accounting: Obviously the more like a business or like \"\"real\"\" accounting you want to be, the more complex you can make it, but in general I find that the purpose of personal accounting is (1) to track what I own, and (2) to ensure I have documented anything I need to for tax purposes, and as long as you're meeting those goals any reasonable approach is workable.\"",
"title": ""
},
{
"docid": "71d5d98b04b8b3014d949fa925d595d7",
"text": "As Victor says, you pay tax on net profit. If this is a significant source of income for you, you should file quarterly estimated tax payments or you're going to get hit with a penalty at the end of the year.",
"title": ""
},
{
"docid": "1cc96b5757877b174dc8f1fee4ca1ab6",
"text": "I did not file taxes on last season winnings as I’ve received conflicting advise (particularly regarding self-employment taxes). I have all my documentation to support my winnings should I file as a professional gambler. Oh dear. Get a GOOD tax adviser (licensed as EA, CPA or Attorney in Nevada) who's specializing in providing services to people like you and have it resolved ASAP. You're in major non-compliance. If you earned by gambling more than you earned by working in years, and you haven't reported that on your taxes - you may very well find yourself in jail. As to your original question - why on earth would you have a corporation for gambling? Or LLC... Why? What's the liability that you want to shield yourself of? It's your money that you're risking, and the risk is that you lose it, how is LLC or Corp going to help you in any way? Gambling winnings are reported as miscellaneous income (whether you're professional or just got lucky once with a slot machine - no matter), and if you're a pro (and it sounds like that since you're doing it systematically and in order to make profits), then yes, you pay SE taxes on it. Whoever told you anything else told you to break the law. Which you did, unfortunately.",
"title": ""
},
{
"docid": "d715a1051df70433a15f15013544d74a",
"text": "\"Thinking about the business overall, your \"\"profit\"\" would be: Since this is a sole proprietorship, the taxes are going to depend on your marginal tax rate. If you file jointly, your income will determine what your marginal tax rate is. If you file separately, there likely wouldn't be any tax on that income since it's less than the standard deduction, but you lose benefits of filing jointly (combined exemptions, etc.) So think about how much she would charge, what expenses are involved (before taxes), what the taxes would be on that profit, and what the \"\"opportunity costs\"\" are - is it worth time away from the kids/hobbies/etc. for that hobby? How much should a hobby business make to make it worth the effort of charging for such services? That would fall in the \"\"expense\"\" section. Are you talking about the actual costs (tax prep, etc.) or just the hassle of collecting, accounting, etc. Certainly those are a consideration but it's harder to quantify that. If you can come up with some sort of cost then certainly it would fit in the overall value equation. I'm not sure using additional Social Security benefits as a gauge is helpful, since you wouldn't see those benefits until you're of retirement age (according to SS) and a lot can happen between now and then.\"",
"title": ""
},
{
"docid": "d402dc885d5d6ef6afda8b49de969880",
"text": "You're doing business in the US and derive income from the US, so I'd say that yes, you should file a non-resident tax return in the US. And in Connecticut, as well, since that's where you're conducting business (via your domestic LLC registered there). Since you paid more than $600 to your contractor, you're probably also supposed to send a 1099 to him on that account on behalf of your LLC (which is you, essentially, if you're the only member).",
"title": ""
},
{
"docid": "90bf0c014b7268f7f6404fa099240da9",
"text": "This may not exactly answer your question but, as a small business owner, I would highly recommend having a professional handle your taxes. It is worth the money to have it done correctly rather than doing something wrong and getting audited or worse having penalties assessed and owing more than you thought would be possible. I would recommend this especially if this is how you make your primary income, you can always write it off as a business expense.",
"title": ""
},
{
"docid": "7ff48ab59c694db453df646f2d03e011",
"text": "\"If you're \"\"living off the land\"\" and make no money, then you don't have to file. Though you might be able to actually make money through credits and the like if you do file. If you've lost more than you've made, then you'll probably need to file since someone will have needed to report that they paid you (W-2 or 1099-MISC). If the IRS receives a form saying that you made X and you don't file, they aren't going to just take your word for it that you lost more than you made, right? That, and if you want a refund, you'll almost certainly need to file to get it.\"",
"title": ""
},
{
"docid": "c3267da06090af6e036fcf7b12ec78df",
"text": "\"I agree with some of the points of the other answers but why not avoid all the guesswork? I highly recommend you not charge him now. Wait until the end of the year when you have much more information about both of your companies and then you can run the numbers both ways and decide if it would benefit you (collectively). If either of your businesses runs on a cash basis and you decide to invoice, just make sure the check is deposited before Dec 31. Update: If you want to do this for 2016, at least your husband's business would have to be using an accrual basis (since it's too late to take the deduction on a cash basis). Simply run the numbers both ways and see if it helps you. If it doesn't help enough to warrant it for 2016 you could rerun the numbers near the end of 2017 to see if it helps then. Diclaimer: I think it's OK to do this type of manipulation for the scenario you described since you have done (or are doing) the work and you are charging a reasonable fee, but realize that you shouldn't manipulate the amount of the invoice, or fabricate invoices. For example, you shouldn't ever think about such things as: \"\"If I invoice $50K instead of $3K, will that help us?\"\"\"",
"title": ""
},
{
"docid": "eb722c559f44df2797bf063012c9f3c9",
"text": "\"First of all congrats... very nice work indeed.. Secondly, i do not offer this as legal advise.. lol.. anyhow.. you need to make sure to hang on to as much as possible, being a single earner, our Uncle (Sam) is going to want what's due... That being said, you should probably look into investments, for starters, purchase a primary residence or start a business, or purchase a primary residence and use that as a business residence (both).. what you basically want are write-offs.. you need to bring your \"\"taxable\"\" income as low as possible so you pay minimal taxes.. in your case, you're in danger of paying a hefty sum in taxes... i'm sure you can shield yourself with various business expenses (a car, workplace, computers, etc.. ) that you could benefit from, both professionally and individually.. and then seriously bro... making 250k leads me to believe you've got at least more than half a brain, and that you're using more than half of that.. so dude.. get an accountant... and one you can trust.. ask your parents, colleagues, people you've worked with in the past.. etc.. there are professionals who are equally as talented in helping you keep your money as you are in making it.. -OR- you could get married, make sure your wife stays at home and start popping out kids asap... those keep my taxable (and excess) income pretty low.. LOL!!! I'm going to add to this... as a contractor, i've generally put any \"\"estimated\"\" taxes into some kind of interest accruing account so i can at least make a little money before i have to give it away.. in your case, i'd say put away at least 2/3's into some kind of interest earning account.. start by talking to your personal banker wherever your money is.. you'll be surprised at how nice they treat you... you ARE going to have to pay taxes.. so until you do, try to make a little money while it sits.. again, nice problem to have!\"",
"title": ""
}
] |
fiqa
|
335eb92e17f7124461c746ed0cfbe349
|
Do Square credit card readers allow for personal use?
|
[
{
"docid": "a1eac45edacfbee6761874daf52b1603",
"text": "What I should have done in the first place was just ask them. From their customer support team: Thanks for writing in and for your interest in Square. It is perfectly acceptable to use Square for personal business, such as a yard sale. You do not need to have a registered business to take advantage of Square and the ability to accept credit cards. Just please note that it is against our Terms of Service to process prepaid cards, gift cards or your own credit card using your own Square account. Additionally, you may not use Square as a money transfer system. For every payment processed through Square, you must provide a legitimate good or service. Please let me know if you have any additional concerns.",
"title": ""
},
{
"docid": "8750efa51631db664dfb10c9e53b03b2",
"text": "\"Yes. From their TOS: \"\"By creating a Square Account, you confirm that you are either a legal resident of the United States, a United States citizen, or a business entity...\"\".\"",
"title": ""
},
{
"docid": "579cf9991971fade5896354a42eab97f",
"text": "My husband used this device at work in an organization/club that collects dues for fundraisers. The fundraisers are only for the club. So I think that is not business at all. They have no business tax id#, etc? and they use it for personal reasons when collecting money via Cc#'s if this helps you.",
"title": ""
},
{
"docid": "9602e16151bf709cfb818f3eed2690dc",
"text": "I used square in the past for personal yard sale and they did not transfer balance to my bank acct because they told me it was against their policy and I had to have a business license that they could either refund the credit cards i process or keep the money. So they kept it I never got it back. I don't recommend anybody to use square.",
"title": ""
}
] |
[
{
"docid": "7aec18814f3c28ae1a6b570030bfeae5",
"text": "There are rules and regulations as to how the credit card information must be stored, and I assume Square adhere to these rules. The point is that the barber doesn't need to see your credit card at all, and doesn't have to keep its number for keeping tabs, you only share the information with Square and they remit payments to everyone else. This is very similar to Paypal, Amazon and Google checkout systems, except that Square combine it with physical card processing.",
"title": ""
},
{
"docid": "b51c31a37afaad1d531c0293b76eec17",
"text": "Direct from Square Support in an email to me today when I asked this very question: Thanks for writing in. You can certainly use Square for personal use. When activating your account, you’ll be asked how you intend to use Square. You’ll simply need to select ‘Individual Use.’ Don't think we can get more clear than that :)",
"title": ""
},
{
"docid": "464068787d562d3dbd5c7e7aeb1d307c",
"text": "I have never used Square, but my understanding is that they charge a premium for their services. Basically, because you get this nifty smartphone pluggable credit card swiper, you end up paying more than the alternate options. Granted I am in no way knowledgeable of the alternates (as in, mobile credit card machines?), but I assume they aren't as easy to set up. When it first came out, one of my buddies decided that he would accept payments from friends via Square (for beer, meals, concert tickets, gas, etc), and I remember reading that it charges a flat fee plus variable cost, which I thought was a rather silly cost to be incurring. Maybe that has changed? Basically, Square sounds almost to good to be true, but I'm not a small business owner dealing with credit card transactions, so you probably shouldn't listen to me.",
"title": ""
},
{
"docid": "93f3dcda2f0d75ba43f7c7d5741bb049",
"text": "\"I think the survey needs to be broken down to \"\"as a consumer...\"\" and \"\"as a merchant...\"\" I'm not sure any service like the one you propose can be really implemented on the consumer side. In particular, I suspect few if any consumers would pay for the privilege You might look into the company \"\"Neat\"\" who sold a specialized scanner and software package designed around organizing reciepts a while back. Retailer buy-in is a huge factor too. You can create a platform and encourage retailers to send reciepts via email or whatever, but at the end of the day, a lot of retailers still see value in a reciept 5x as long as it should be to itemize the 22 ways you \"\"saved money\"\" and the 19 cross-promotions or coupons they want to inform you of. Unless you can provide equal percieved value for them, they won't be interested, even if consumers like the concept. The classic example in this debate is the US chain \"\"CVS Pharmacy\"\"-- whose long reciepts are the butt of many jokes, but persist because they're part of an elaborate reward scheme where they give people coupons in the hopes of them coming back to use them. As for the smaller vendors who may not be as tied to such strategies, they're also likely going to be less technically equipped to cope with a new feature. You almost need to target the POS vendors like NCR and IBM-- if you can make \"\"electronic reciept\"\" a feature in their platform, it becomes something that hundreds of stores are getting built into their systems for \"\"free\"\" and they just have to turn it on. That's a lot easier than selling to every single retailer one at a time, and it would be a big enough launch that you could start to get customer preference\"",
"title": ""
},
{
"docid": "7f1d72d07ecfc18364d1947cf6d44efe",
"text": "\"These are services that facilitate using credit cards. So whatever vulnerabilities there may be, your risk is limited to your liability to the credit card issuer. Usually, this means no liability whatsoever, and the most significant risk is the inconvenience of re-issuing the compromised card. Some card issuers separate the \"\"Pay\"\" service account from your main account so that even that risk is mitigated - the number exposed is only used for that specific service and doesn't compromise your actual physical card.\"",
"title": ""
},
{
"docid": "d9f137f1ce57c260111448e68748912b",
"text": "\"I think that you're missing one significant point: NFC is not only used for payments. It's a general protocol (\"\"Near-Field Communication\"\") that is supposed to provide easy connectivity between adjacent devices. As such, built-in encryption/security are counter-productive the same way as built-in encryption/security are counter-productive in IP: you're forcing something from a higher layer on a lower layer. Applications that use NFC but don't need this extra security will pay unnecessary penalty. Here come providers like Apple Pay, Android Pay, Samsung Pay and others. They provide applications that use NFC for specific purpose. And they provide the security needed for that purpose. Banks are welcome to introduce their own applications, but they lack the client base to make it wide enough spread for POS providers to include it. Visa/Mastercard have their own \"\"near-field\"\" solutions already that are embedded in cards themselves, and are not necessarily interested in competing with software giants like Apple or Google in their fields. Phone manufacturers also lack the wide enough client base (with the exception of Samsung, which is very popular and as the result is able to pull off its own payment system - I think they're partnered with Visa).\"",
"title": ""
},
{
"docid": "f8bac368ca853f6b6e11ffa469ed47e9",
"text": "Envudu (envudu.com) looks very promising, and I think what they are planning to put out will do essentially everything you want. It's a single prepaid card, but with a connected app. On the app you choose which budget category you're going to spend on next, and then swipe your card. Your purchase gets deducted from that category. There aren't a ton of details yet on their website (e.g., what happens if you try to swipe on a category that doesn't have the funds available?) and there is going to be a $20/year fee, but I think it meets all of your criteria, even though it's a single card--you'll just need to use a smartphone with it.",
"title": ""
},
{
"docid": "1a3786764d2e6576dfd4848fae81f485",
"text": "We have a pre-paid mastercard. This will only allow the spending up to the amount already paid into the card account. Visa Electron is a bank account linked debit card that will not allow the account to go overdrawn but this card type is getting quite rare.",
"title": ""
},
{
"docid": "5fee4c2ada624f9f9dfd3cf43e073b65",
"text": "There are different ways of credit card purchase authorizations. if some choose less secure method it's their problem. Merchants are charged back if a stolen card is used.",
"title": ""
},
{
"docid": "71a0b8631383a8b1177ba145a64901c7",
"text": "Most corporate policies strictly prohibit the card's use for personal use, even if the intent is to re-pay in full, on or before the due date. I'm certain it has something to do with limitation of liability, i.e. the monetary risk the company is willing to put itself at, in order to offer a corporate card program. In my experience, AMEX Corporate Card Services is the most widely-used card, and in my experience, it is your employer that determines and administers the policy that outlines the card's appropriate use, not the credit card provider, so you're best to check with your employer for a definitive answer to this.",
"title": ""
},
{
"docid": "20b04ee89c1411b9b8f5a570d431466b",
"text": "I stopped using pre-authorized payments for things like telephone etc., because it made it more possible/likely for a fraudulent charge to sneak by. But if there is an occasion for choosing pre-authorized payments (like charities, and places of exact fixed price) I use my credit card because then I also get points. Furthermore, I reason (perhaps wrongly) that if there is intermediary step between actual money (bank account) and the source of the bill then it gives me better chance of catching irregularities and hence a little safer. I am sure other members here will laugh my naivety, but there you have it.",
"title": ""
},
{
"docid": "e8b74cda6fce2fb67840dae50de3bedf",
"text": "My recollection is that most traditional reader systems charge like 5%. For squareup there were two different pricing schemes 1. 2.75% per swipe. 2. 0% per swipe but a $275 permonth charge. When I did the math the flat fee only made sense if you're doing over $2500ish per month in business. These fees seem pretty minimal to me.",
"title": ""
},
{
"docid": "e6e3bd403ff62470cfd7ae67cf18581d",
"text": "\"Using the card but paying it off entirely at each billing cycle is the only \"\"Good\"\" way to use a credit card. If you feel like you will be tempted to buy more than you can pay back don't use credit. As far as furnishing the apartment, the best thing to do would be to save and pay cash, but if you want to use credit the credit available at stores would be a far better deal than carrying it on a card.\"",
"title": ""
},
{
"docid": "3da1291762d8a2d0cae24144a0b1e1a0",
"text": "Like email and spam, fighting creditcard fraud is a cat and mouse game, with technology and processes constantly being developed to reduce fraud. The CVV on the back of the card is just one more layer of security. Requiring the CVV generally requires you to physically have access to the card. CVV should not be stored by any merchant. This frustrates card skimming fraud as the CVV is not present in the track data and fraud caused by database compromises. You should never use your PIN online. MC/VISA both have implementations of 3D-Secure (SecureCode for MC and Verified by VISA) which require a password / code to confirm card ownership. Depends on both Issuer and Merchant implementing the standard. Regarding not needing a PIN at the airport, some low value transactions no longer need PINs, depending on the Issuer and Scheme (VISA/MC). MasterCard PayPass or VISA PayWave enable low value contactless transactions without PIN. In Australia, the maximum value for a contactless transactions is $100 AUD. At some merchants (McDonalds for example) a PIN is not required for for meals purchased with VISA (at least, for the cheeseburger I bought there as a test). This makes sense - if you don't need a PIN for a contactless purchase, why do you need it for a chip based purchase? So - why allow PIN free transactions? On average customers report stolen credit cards / wallet very quickly and the losses are correspondingly small. As card issuers are always online, cards can be cancelled very quickly after being reported lost / stolen. Finally, by performing transactions for just a few cents or pennies, the merchant (Spotify) can likely validate you are the owner of the card as you'd need access to your online bank to confirm the transactions. PayPal do this with bank account to confirm ownership. (Unless I've misunderstood your statement).",
"title": ""
},
{
"docid": "21fe332df485ef839ba1dfa57f47ed91",
"text": "Have you considered a service that allows you to generate credit card numbers on the fly? DoNotTrackMe allows you to generate a CC number on the fly, for a specific amount. If the vendor tries to charge more, it will fail. If it gets stolen, it's useless. I don't know the specific fees off hand, but they have an annual fee for the feature. Still, for the protection, doesn't seem like a bad way to go. Note: I have no affiliation with DNTM, I'm just a very happy user of their email protection products. The Masked Cards faq is here.",
"title": ""
}
] |
fiqa
|
d26d41f3163c4f501fb7fd7061d4abd8
|
Differences in taxes paid for W2 employee vs. 1099 contractor working on sites like ODesk.com?
|
[
{
"docid": "0a788c0d227d60e290dc71775c247243",
"text": "Yes, you've summarized it well. You may be able to depreciate your computer, expense some software licenses and may be home office if you qualify, but at this scale of earning - it will probably not cover for the loss of the money you need to pay for the additional SE tax (the employer part of the FICA taxes for W2 employees) and benefits (subsidized health insurance, bonuses you get from your employer, insurances, etc). Don't forget the additional expense of business licenses, liability insurances etc. While relatively small amounts and deductible - still money out of your pocket. That said... Good luck earning $96K on ODesk.",
"title": ""
}
] |
[
{
"docid": "a3536cc618e291ed7fa8cd499d035587",
"text": "I'm not sure why you're confusing the two unrelated things. 1040ES is your estimated tax payments. 941 is your corporation's payroll tax report. They have nothing to do with each other. You being the corporation's employee is accidental, and can only help you to avoid 1040ES and use the W2 withholding instead - like any other employee. From the IRS standpoint you're not running a LLC - you're running a corporation, and you're that corporation's employee. While technically you're self-employed, from tax perspective - you're not (to the extent of your corporate salary, at least).",
"title": ""
},
{
"docid": "47fbaf740dacac037b1f7a8f5dfa294b",
"text": "This answer is assuming you're in the US, which apparently you're not. I doubt that the rules in the EU are significantly different, but I don't know for sure. In case of an IRS control, is it ok to say that I regularly connect remotely to work from home although in the work contract it says I must work at client's office? No. Are there any other ways I can prove that this deduction is valid? No. You can't prove something is valid when its not. You can only deduct home office expense if it is used exclusively for your business, and your bedroom obviously is not.",
"title": ""
},
{
"docid": "077e69dfbbb8d8112c446114db179a4c",
"text": "As a nonresident sole proprietor or partnership You are not a sole proprietor or a member of a legal partnership. You are an employee for a corporation. Does the nature of your work require you to be present in New York regularly? If you are in New York for personal reasons, you are simply telecommuting. You must pay taxes personally for your W-2 income, but your business entity never moved from Wyoming. If this were not true, companies would have to pay corporate income tax to every state in which they have a telecommuter. For example, I live in Florida but telecommute to a company in Michigan. Does my employer pay Florida business tax? Of course not. Your business would only owe New York if the nature of the business requires a consistent and regular business presence in New York, such as maintaining an office for a portion of every year so clients could see you.",
"title": ""
},
{
"docid": "20031b48e19a5aacb7b99bebca187c28",
"text": "\"Littleadv is incorrect because receiving a 1099 means she will be taxed self-employment tax on top of federal income taxes. Your employer will automatically withhold 7.65% of payroll taxes as they pay you each paycheck and then they'll automatically pay the other half of your payroll tax (an additional 7.65%) to bring it to a total of 15.3%. In other words, because your wife is technically self employed, she will owe both sides of payroll tax which is 15.3% of $38k = $5,800 on TOP of your federal income tax (which is the only thing the W-4 is instructing them about what amount to withhold). The huge advantage to a 1099, however, is that she's essentially self-employed which means ALL of the things she needs to run her business are deductible expenses. This includes her car, computer, home office, supplies, sometimes phone, gas, maintenance, travel expenses, sometimes entertainment, etc - which can easily bring her \"\"income\"\" down from $38k to lets say $23k, reducing both her federal income tax AND self-employment tax to apply to $15k less (saving lets say 50% of $15k = $7.5k with federal and self employment because your income is so high). She is actually supposed to pay quarterly taxes to make up for all of this. The easy way to do this is each quarter plug YOUR total salary + bonus and the tax YOU have paid so far (check your paystubs) into TurboTax along with her income so far and all of her expenses. This will give you how much tax you can expect to have left to owe so far--this would be your first quarter. When you calculate your other quarters, do it the exact same way and just subtract what you've already paid so far that year from your total tax liability.\"",
"title": ""
},
{
"docid": "2759de95b6e4abc47e93cbccb708395a",
"text": "\"There are way too many details missing to be able to give you an accurate answer, and it would be too localized in terms of time & location anyway -- the rules change every year, and your local taxes make the answer useless to other people. Instead, here's how to figure out the answer for yourself. Use a tax estimate calculator to get a ballpark figure. (And keep in mind that these only provide estimates, because there are still a lot of variables that are only considered when you're actually filling out your real tax return.) There are a number of calculators if you search for something like \"\"tax estimator calculator\"\", some are more sophisticated than others. (Fair warning: I used several of these and they told me a range of $2k - $25k worth of taxes owed for a situation like yours.) Here's an estimator from TurboTax -- it's handy because it lets you enter business income. When I plug in $140K ($70 * 40 hours * 50 weeks) for business income in 2010, married filing jointly, no spouse income, and 4 dependents, I get $30K owed in federal taxes. (That doesn't include local taxes, any itemized deductions you might be eligible for, IRA deductions, etc. You may also be able to claim some expenses as business deductions that will reduce your taxable business income.) So you'd net $110K after taxes, or about $55/hour ($110k / 50 / 40). Of course, you could get an answer from the calculator, and Congress could change the rules midway through the year -- you might come out better or worse, depending on the nature of the rule changes... that's why I stress that it's an estimate. If you take the job, don't forget to make estimated tax payments! Edit: (some additional info) If you plan on doing this on an ongoing basis (i.e. you are going into business as a contractor for this line of work), there are some tax shelters that you can take advantage of. Most of these won't be worth doing if you are only going to be doing contract work for a short period of time (1-2 years). These may or may not all be applicable to you. And do your research into these areas before diving in, I'm just scratching the surface in the notes below.\"",
"title": ""
},
{
"docid": "a13a67170ffc59dbf2ae2485ac4f2bd9",
"text": "I do something pretty simple when figuring 1099 income. I keep track of my income and deductible expenses on a spreadsheet. Then I do total income - total expenses * .25. I keep that amount in a savings account ready to pay taxes. Given that your estimates for the quarterly payments are low then expected, that amount should be more then enough to fully fund those payments. If you are correct, and they are low, then really what does it matter? You will have the money, in the bank, to pay what you actually owe to the IRS.",
"title": ""
},
{
"docid": "eb6a63bb1abd8ee6d5c4b1cde0087a9f",
"text": "I took littleadv's advice and talked to an accountant today. Regardless of method of payment, my US LLC does not have to withhold taxes or report the payment as payments to contractors (1099/1042(S)) to the IRS; it is simply a business expense. He said this gets more complicated if the recipient is working in the US (regardless of nationality), but that is not my case",
"title": ""
},
{
"docid": "edb005ea7461d6a53124407aca06bab5",
"text": "After reading OP Mark's question and the various answers carefully and also looking over some old pay stubs of mine, I am beginning to wonder if he is mis-reading his pay stub or slip of paper attached to the reimbursement check for the item(s) he purchases. Pay stubs (whether paper documents attached to checks or things received in one's company mailbox or available for downloading from a company web site while the money is deposited electronically into the employee's checking account) vary from company to company, but a reasonably well-designed stub would likely have categories such as Taxable gross income for the pay period: This is the amount from which payroll taxes (Federal and State income tax, Social Security and Medicare tax) are deducted as well as other post-tax deductions such as money going to purchase of US Savings Bonds, contributions to United Way via payroll deduction, contribution to Roth 401k etc. Employer-paid group life insurance premiums are taxable income too for any portion of the policy that exceeds $50K. In some cases, these appear as a lump sum on the last pay stub for the year. Nontaxable gross income for the pay period: This would be sum total of the amounts contributed to nonRoth 401k plans, employee's share of group health-care insurance premiums for employee and/or employee's family, money deposited into FSA accounts, etc. Net pay: This is the amount of the attached check or money sent via ACH to the employee's bank account. Year-to-date amounts: These just tell the employee what has been earned/paid/withheld to date in the various categories. Now, OP Mark said My company does not tax the reimbursement but they do add it to my running gross earnings total for the year. So, the question is whether the amount of the reimbursement is included in the Year-to-date amount of Taxable Income. If YTD Taxable Income does not include the reimbursement amount, then the the OP's question and the answers and comments are moot; unless the company has really-messed-up (Pat. Pending) payroll software that does weird things, the amount on the W2 form will be whatever is shown as YTD Taxable Income on the last pay stub of the year, and, as @DJClayworth noted cogently, it is what will appear on the W2 form that really matters. In summary, it is good that OP Mark is taking the time to investigate the matter of the reimbursements appearing in Total Gross Income, but if the amounts are not appearing in the YTD Taxable Income, his Payroll Office may just reassure him that they have good software and that what the YTD Taxable Income says on the last pay stub is what will be appearing on his W2 form. I am fairly confident that this is what will be the resolution of the matter because if the amount of the reimbursement was included in Taxable Income during that pay period and no tax was withheld, then the employer has a problem with Social Security and Medicare tax underwithholding, and nonpayment of this tax plus the employer's share to the US Treasury in timely fashion. The IRS takes an extremely dim view of such shenanigans and most employers are unlikely to take the risk.",
"title": ""
},
{
"docid": "ef325af95e1dfafaa8396f9a31045429",
"text": "\"I've been in a similar situation before. While contracting, sometimes the recruiting agency would allow me to choose between being a W2 employee or invoicing them via Corp-2-Corp. I already had a company set up (S-Corp) but the considerations are similar. Typically the C2C rate was higher than the W2 rate, to account for the extra 7.65% FICA taxes and insurance. But there were a few times where the rate offered was identical, and I still choose C2C because it enabled me to deduct many of my business expenses that I wouldn't have otherwise been able to deduct. In my case the deductions turned out to be greater than the FICA savings. Your case is slightly different than mine though in that I already had the company set up so my company related costs were \"\"sunk\"\" as far as my decision was concerned. For you though, the yearly costs associated with running the business must be factored in. For example, suppose the following: Due to these expenses you need to make up $3413 in tax deductions due to the LLC. If your effective tax rate on the extra income is 30%, then your break even point is approximately $8K in deductions (.3*(x+3413)=3413 => x = $7963) So with those made up numbers, if you have at least $8K in legitimate additional business expenses then it would make sense to form an LLC. Otherwise you'd be better off as a W2. Other considerations:\"",
"title": ""
},
{
"docid": "57e727fb40b21bd2c80d0ec6311b1577",
"text": "If the $882 is reported on W2 as your income then it is added to your taxable income on W2 and is taxed as salary. Your basis then becomes $5882. If it is not reported on your W2 - you need to add it yourself. Its salary income. If its not properly reported on W2 it may have some issues with FICA, so I suggest talking to your salary department to verify it is. In any case, this is not short term capital gain. Your broker may or may not be aware of the reporting on W2, and if they report the basis as $5000 on your 1099, when you fill your tax form you can add a statement that it is ESPP reported on W2 and change the basis to correct one. H&R Block and TurboTax both support that (you need to chose the correct type of investment there).",
"title": ""
},
{
"docid": "521ca52299c5af07b7cf3157b6a45764",
"text": "\"TL;DR: Get a tax adviser (EA/CPA licensed in your State) for tax issues, and a lawyer for the Operating Agreement, labor law and contract related issues. Some things are not suitable for DIY unless you know exactly what you're doing. We both do freelance work currently just through our personal names. What kind of taxes are we looking into paying into the business (besides setup of everything) compared to being a self proprietor? (I'm seeing that the general answer is no, as long as income is <200k, but not certain). Unless you decide to have your LLC taxed as a corporation, there's no change in taxes. LLC, by default, is a pass-through entity and all income will flow to your respective tax returns. From tax perspective, the LLC will be treated as a partnership. It will file form 1065 to report its income, and allocate the income to the members/partners on schedules K-1 which will be given to you. You'll use the numbers on the K-1 to transfer income allocated to you to your tax returns and pay taxes on that. Being out of state, will she incur more taxes from the money being now filtered through the business? Your employee couldn't care less about your tax problems. She will continue receiving the same salary whether you are a sole proprietor or a LLC, or Corporatoin. What kind of forms are we looking into needing/providing when switching to a LLC from freelance work? Normally we just get 1099's, what would that be now? Your contract counterparts couldn't care less about your tax problems. Unless you are a corporation, people who pay you more than $600 a year must file a 1099. Since you'll be a partnership, you'll need to provide the partnership EIN instead of your own SSN, but that's the only difference. Are LLC's required to pay taxes 4 times per year? We would definitely get an accountant for things, but being as this is side work, there will be times where we choose to not take on clients, which could cause multiple months of no income. Obviously we would save for when we need to pay taxes, but is there a magic number that says \"\"you must now pay four times per year\"\". Unless you choose to tax your LLC as a corporation, LLC will pay no taxes. You will need to make sure you have enough withholding to cover for the additional income, or pay the quarterly estimates. The magic number is $1000. If your withholding+estimates is $1000 less than what your tax liability is, you'll be penalized, unless the total withholding+estimates is more than 100% of your prior year tax liability (or 110%, depending on the amounts). The LLC would be 50% 50%, but that work would not always be that. We will be taking on smaller project through the company, so there will be times where one of us could potentially be making more money. Are we setting ourselves up for disaster if one is payed more than the other while still having equal ownership? Partnerships can be very flexible, and equity split doesn't have to be the same as income, loss or assets split. But, you'll need to have a lawyer draft your operational agreement which will define all these splits and who gets how much in what case. Make sure to cover as much as possible in that agreement in order to avoid problems later.\"",
"title": ""
},
{
"docid": "11fb8e7e63dd941dffe0099876b5abc8",
"text": "If the money comes to you, then it's income. If the money goes out from you, it's an expense. You get to handle the appropriate tax documentation for those business transactions. You may also have the pleasure of filing 1099-MISC forms for all of your blogging buddies if you've paid them more than $600. (Not 100% sure on this one.) I was in a blog network that had some advertising deals, and we tried to keep the payments separate because it was cleaner that way. If I were you, I'd always charge a finder's fee because it is extra work for you to do what you're doing.",
"title": ""
},
{
"docid": "12145f28caf8629f91f0f822a8de3b2c",
"text": "Don't overthink it. As an employee, whether of your own corporation or of someone else, you get a salary and there are deductions taken out. As the owner of a business you get (hopefully) business profits as well. And, in general, you often have other sources of income from investments, etc. Your estimated tax payments are based on the difference between what was withheld from your salary and what you will owe, based on salary, business income, and other sources. So, in essence, you just add up all the income you expect, estimate what the tax bill will be, and subtract what's been withheld. That's your estimated tax payment.",
"title": ""
},
{
"docid": "bfc6b9e15735ccad53b4a312432b6239",
"text": "I strongly recommend that you talk to an accountant right away because you could save some money by making a tax payment by January 15, 2014. You will receive Forms 1099-MISC from the various entities with whom you are doing business as a contractor detailing how much money they paid you. A copy will go to the IRS also. You file a Schedule C with your Form 1040 in which you detail how much you received on the 1099-MISC forms as well as any other income that your contracting business received (e.g. amounts less than $600 for which a 1099-MISc does not need to be issued, or tips, say, if you are a taxi-driver running your own cab), and you can deduct various expenses that you incurred in generating this income, including tools, books, (or gasoline!) etc that you bought for doing the job. You will need to file a Schedule SE that will compute how much you owe in Social Security and Medicare taxes on the net income on Schedule C. You will pay at twice the rate that employees pay because you get to pay not only the employee's share but also the employer's share. At least, you will not have to pay income tax on the employer's share. Your net income on Schedule C will transfer onto Form 1040 where you will compute how much income tax you owe, and then add on the Social Security tax etc to compute a final amount of tax to be paid. You will have to pay a penalty for not making tax payments every quarter during 2013, plus interest on the tax paid late. Send the IRS a check for the total. If you talk to an accountant right away, he/she will likely be able to come up with a rough estimate of what you might owe, and sending in that amount by January 15 will save some money. The accountant can also help you set up for the 2014 tax year during which you could make quarterly payments of estimated tax for 2014 and avoid the penalties and interest referred to above.",
"title": ""
},
{
"docid": "cf3539f86c66a80f473878e2c84b1c32",
"text": "\"It seems that you think you are freelancing, and they think you are an employee. What's bad for you, the tax office will also think you are an employee if they withhold tax for you. Alternatively, they think you are stupid, and they keep the money, but are actually not paying it to the tax office at all, in which case you will have a bad surprise when you do your tax returns. First, I'd ask them for proof that they are indeed paying these taxes into some account related to you. I'd then ask a tax adviser for some serious advice. If they are acting out of incompetence and not out of malice, then you should be mostly fine, but your work there will count as employment. Heaven knows why they treat you as an employee. Check your contract with them; whether it is between you and them or your company and them. It maybe that they never hired a contractor and believe that they have to pay employment tax. They don't. If your company sends them a bill, then they need to pay that bill, 100% of it, and that's it. Taxes are fully your business and your responsibility. As \"\"quid\"\" said, if they say they are withholding tax, then at the very least there must be a paystub that proves they have actually been paying these taxes. If they withhold taxes, and there is no paystub, then this looks like a criminal attempt to cheat you. If they have actually paid taxes properly into your account, then they are merely creating a mess that can hopefully be fixed. But it is probably complicated enough that you need a tax advisor, even if you had none before, since instead of paying to your company, they paid some money to the company, and some to you personally.\"",
"title": ""
}
] |
fiqa
|
c0d55502bb49e2705dc1511c69c83579
|
If I invest in a company that goes bankrupt, is that a gain or a loss?
|
[
{
"docid": "5356f3858e3f23badd6f69f9bb16c3d4",
"text": "I'll give the credit to @Quid in the comments section of the question. You put out $10k, you got back $20k, that's a cash gain of $10k, how the asset was valued between your purchase and sale isn't relevant. From an accounting perspective, the company is the only party that is realizing the loss (as they have sold the asset for 40K less than par). You the buyer, only get to see the initial buy and sale of such capital asset. Example: A company purchases a car for $20,000 and after depreciation it is worth (book valued at) $2,000. It is then sold to a customer for $3,000. Does the customer realize a loss of $1,000? No. Does the company realize a gain of $1,000? Yes. Your bank analogy is flawed in two ways:",
"title": ""
}
] |
[
{
"docid": "6828c8aac1235a11ea839878bf006177",
"text": "\"Because I feel the answers given do not wholely represent the answer you are expecting, I'd like to re-iterate but include more information. When you own stock in a company, you OWN some of that company. When that company makes profit, you usually receive a dividend of those profits. If you owned 1% of the company stock, you (should) recieve 1% of the profits. If your company is doing well, someone might ask to buy your stock. The price of that stock is (supposed) to be worth a value representative of the expected yield or how much of a dividend you'd be getting. The \"\"worth\"\" of that, is what you're betting on when you buy the stock, if you buy $100 worth of coca cola stock and they paid $10 as dividend, you'd be pretty happy with a 10% growth in your wealth. Especially if the banks are only playing 3%. So maybe some other guy sees your 10% increase and thinks, heck.. 10% is better than 3%, if I buy your stocks, even as much as 6% more than they are worth ($106) I'm still going to be better off by that extra 1% than I would be if I left it in the bank.. so he offers you $106.. and you think.. awesome.. I can sell my $100 of cola shares now, make a $6 profit and buy $100 worth of some other share I think will pay a good dividend. Then cola publicises their profits, and they only made 2% profit, that guy that bought your shares for $106, only got a dividend of $2 (since their 'worth' is still $100, and effectively he lost $4 as a result. He bet on a better than 10% profit, and lost out when it didn't hit that. Now, (IMHO) while the stock market was supposed to be about buying shares, and getting dividends, people (brokers) discovered that you could make far more money buying and selling shares for 'perceived value' rather than waiting for dividends to show actual value, especially if you were not the one doing the buying and selling (and risk), but instead making a 0.4% cut off the difference between each purchase (broker fees). So, TL;DR, Many people have lost money in the market to those who made money from them. But only the traders and gamblers.\"",
"title": ""
},
{
"docid": "ae229b502d3703935223089402b569de",
"text": "\"By definition, a downturn in the business cycle will push some companies into bankruptcy. What's worse, a downturn in the business cycle will trigger \"\"bankruptcy fears\"\" for a LOT of companies, far more than will suffer this fate. So the prices of MANY candidates go down to levels that reflect this fear. This aggregate impact produces the \"\"overreaction\"\" you're talking about. It's called \"\"fallacy of composition\"\"; some of these companies will go under, but not all. Then the prices of the survivors will bounce back strongly during the early stages of an upturn when it becomes clear which companies WON'T go bankrupt.\"",
"title": ""
},
{
"docid": "d3654d20ab2b1704565386801ebed97b",
"text": "\"Of course, but that's not relevant to my example. Let me clarify: say you hold a highly-appreciated $10M position in AAPL and you have good reason to believe the next iPhone is going to be a flop, causing the stock to decline 20%. You can sell now to avoid the (probable) decline, but by doing so you will be left with, let's say, $6.67M after paying $3.33M of state and federal LTCG taxes on the appreciation ($9M of the $10M, because you bought a long time ago). However, by simply doing nothing and \"\"eating\"\" the 20% decline, you'll end up with $8M instead of $6.67M. Many economists would criticize the tax in this example, as it has led to the investor rationally suffering a $2M loss, instead of reallocating all $10M of his/her capital to a more promising enterprise. Furthermore, if/when many investors act that way, they can create inefficiency in the equity markets (prices not declining by as much as they should to reflect a firm's reduced prospects).\"",
"title": ""
},
{
"docid": "2b143acbcb0db499f15b967cf333ea82",
"text": "The book value is Total Assets minus Total Liabilities and so if you increase the Total Assets without changing the Total Liabilities the difference gets bigger and thus higher. Consider if a company had total assets of $4 and total liabilities of $3 so the book value is $1. Now, if the company adds $2 to the assets, then the difference would be 4+2-3=6-3=3 and last time I checked 3 is greater than 1. On definitions, here are a couple of links to clarify that side of things. From Investopedia: Equity = Assets - Liabilities From Ready Ratios: Shareholders Equity = Total Assets – Total Liabilities OR Shareholders Equity = Share Capital + Retained Earnings – Treasury Shares Depending on what the reinvestment bought, there could be several possible outcomes. If the company bought assets that appreciated in value then that would increase the equity. If the company used that money to increase sales by expanding the marketing department then the future calculations could be a bit trickier and depend on what assumptions one wants to make really. If you need an example of the latter, imagine playing a game where I get to make up the rules and change them at will. Do you think you'd win at some point? It would depend on how I want the game to go and thus isn't something that you could definitively say one way or the other.",
"title": ""
},
{
"docid": "ad64b8995684cf9541d506b431cd2c60",
"text": "\"I don't think \"\"cost of carry\"\" is the right word here. Yes, you have the opportunity cost (what you could have earned during that time if you had invested the money somehwere else) and then you also have interest rate risk and default risk.\"",
"title": ""
},
{
"docid": "5612dcb81d25c948a71027db30822c3b",
"text": "\"If a company is doing well, it seems less likely to go bankrupt. If a company is doing poorly, it seems more likely to go bankrupt. The problem is, where is the inflection point between \"\"well\"\" and \"\"poorly\"\"? When does a company start to head into oblivion? Sometimes it is hard to know. But if you don't call that right and hold onto your shares when a company is tanking, others, who call it before you do, will sell off, devalue the share price, and now you've missed your chance to get out at a good profit. If you hang on too long, the company may just go bankrupt and you've lost your investment entirely. A healthy profitability of the company therefore has to bolster investor confidence in avoiding this very unpleasant scenario. Therefore, the more profitable a company is, the more shareholder confidence it inspires, and the more willing to pay for it in the form of increased share price. And, this then has a \"\"meta\"\" effect, in that each shareholder thinks, \"\"all other investors think this way, too,\"\" and so each feels good about holding the stock, since he knows he can likely easily liquidate it for good cash if he needs to, either now or in the next year or sometime hence.\"",
"title": ""
},
{
"docid": "41d5bfb7a9d47b8e32ca6736772ca243",
"text": "\"Yes and no. There are different classes of shares - Some have voting rights, some *don't*. Some take precedence over others in a bankruptcy. Some get larger dividends. \"\"Common\"\" isn't really a useful description of your stake in the company. You *do* have a \"\"stake\"\" in the company, but not all shares are equal.\"",
"title": ""
},
{
"docid": "30dbc27585a5e7c1e53bbaec9a1a710e",
"text": "Generally speaking, if a business loses money for whatever reason, then that reduces the profits of the business which reduces the tax payable. However if you were holding the assets on a personal basis prior to incorporating the business, the position may become more complicated. For that kind of money some professional advice may be worthwhile.",
"title": ""
},
{
"docid": "d3fcc98a23ecf60d847d502cb52a0209",
"text": "In this type of strategy profit is made when the shares go down as your main position is the short trade of the common stock. The convertible instruments will tend to move in about the same direction as the underlying (what it can be converted to) but less violently as they are traded less (lower volatility and lower volume in the market on both sides), however, they are not being used to make a profit so much as to hedge against the stock going up. Since both the bonds and the preference shares are higher on the list to be repaid if the company declares bankruptcy and the bonds pay out a fixed amount of interest as well, both also help protect against problems that may occur with a long position in the common stock. Essentially the plan with this strategy is to earn fixed income on the bonds whilst the stock price drops and then to sell both the bonds and buy the stock back on the market to cover the short position. If the prediction that the stock will fall is wrong then you are still earning fixed income on the debt and are able to convert it into stock at the higher price to cover the short sale eliminating, or reducing, the loss made on the short sale. Effectively the profit here is made on the spread between the price of the bond, accounting for the conversion price, and the price of the stock and that fixed income is less volatile (except usually in the junk market) than stock.",
"title": ""
},
{
"docid": "8c9ad2bc428ae33590e1bcedd20e21e8",
"text": "Research the company. Obtain and read their current and past financial statements. Find and read news stories about them. Look for patterns and draw conclusions. Or diversify to the point where one company failing doesn't hurt you significantly. Or both.",
"title": ""
},
{
"docid": "b33667625868aa72db975098d0a594ef",
"text": "I'm afraid you're not going to get any good news here. The US government infused billions of dollars in capital as part of the bankruptcy deal. The old shares have all been cancelled and the only value they might have to you are as losses to offset other gains. I would definitely contact a tax professional to look at your current and previous returns to create a plan that best takes advantage of an awful situation. It breaks my heart to even think about it.",
"title": ""
},
{
"docid": "8a6619ef11534ca2524d1abac32a4a5c",
"text": "The economic effect of a CFD from your point of view is very close to the effect of owning the stock. If the stock goes up, you make money. If it goes down you lose money. If it pays a dividend, you get that dividend. You'll typically pay commission for buying and selling the CFDs in a similar way to the commission on stock purchases, though one of the advertised advantages of CFDs is that the commission will be lower. They also often have tax advantages, for example in the UK you don't have to pay stamp duty on CFDs. In theory you are exposed to credit risk on the CFD issuer, which you aren't with the real stocks: if the issuer goes bankrupt, you may lose any money you have invested regardless of how well the stock has performed. It's certainly similar to a bet, but not much more so than investing directly in the stock. In practice the issuer of the CFDs is likely to hedge its own exposure by actually buying the underlying stocks directly, but they can aggregate across lots of contracts and they would tolerate some unhedged exposure to the stock, so they can cut down on the transaction fees. You also won't get the same voting rights as the underlying stock would grant you.",
"title": ""
},
{
"docid": "68938393c3cbd8e60c0cc1cb39d08287",
"text": "It would be the sales revenue less everything else. When he says reinvest, that is to say they keep all of the post-tax earnings and place it in retained earnings. This means that it is still the companies money to invest and use to fulfill their goals. If they didn't have any worthy investing opportunities, they could issue dividends. So say your cost of capital is, eeeeeh, 15%. And the best investment you can make will earn you 12%. That's a loss of value. So the company, acting in the investors best interests, will give those funds back so that the investors can allocate that money to more efficient areas. Dividends are one mechanism a company has to control their rate of growth.",
"title": ""
},
{
"docid": "e283bf3970ba22d343d192d4c3512665",
"text": "If this was a public corporation (stock) and the investment was made in a non-registered account, then you can claim a capital loss. Capital losses are claimed against capital gains (not income), and can be carried back 3 years or carried forward indefinitely. Here's an article I've written on how to claim capital losses that may help.",
"title": ""
},
{
"docid": "d7a78554226f07c7c8ed4a01314b6a78",
"text": "Doesnt mean that equity or even debt holders wouldn't lose their investment. Those money and banking texts are presently useless post GFC given the incredible moral hazard and how all of the traditional bankruptcy rules were ignored.",
"title": ""
}
] |
fiqa
|
ab09c8ac2f704f01841866cca23446ca
|
Getting financial advice: Accountant vs. Investment Adviser vs. Internet/self-taught?
|
[
{
"docid": "67cbe9429df7739550de8c0cf95a68ba",
"text": "\"Do I need an Investment Adviser? No, but you may want to explore the idea of having one. Is he going to tell me anything that my accountant can't? Probably. How much expertise are you expecting from your accountant here? Do you think your accountant knows everything within the realms of money from taxes, insurance products, investments and all your choices and what would work or wouldn't? Seems like it could be a tall order to my mind. My accountant did say to come to him for advice on investment/business issues. So, he is willing, but is he able? Not asking about his competence, but rather \"\"is there something that only an Investment Adviser can provide, by law, that an accountant can't\"\"? Not that I know though don't forget how much expertise are you expecting here from one person. Is this person intended to answer all your money questions? But isn't that something that my accountant could/should do? Perhaps though how well are you expecting one person to be aware of so much stuff? I want you to know all the tax law so I can minimize taxes, maximize my investment returns, cover me with adequate insurance, and protect my savings seems like a bit much to put on one entity. Do I need either of them? Won't the Internet and sites like this one suffice? Need no. However, how much time are you prepared to spend learning the basics of strategies that work for you? How much money are you prepared to put into things to learn what works and doesn't? While it is your decision, consider how to what extent do you diagnose your medical issues through the internet versus going to see a doctor? Be careful of how much of a do it yourself approach you want to go here and recognize that there are multiple approaches that may work. The question is which trade-offs are OK for you.\"",
"title": ""
},
{
"docid": "3e516905444b5f8601052766e9d6301a",
"text": "An accountant should be able to advise on the tax consequences of different classes of investments/assets/debts (e.g. RRSP, TFSA, mortgage). But I would not ask an accountant which specific securities to hold in these vehicles, or what asset allocation (in terms of geography, capitalization, or class (equity vs fixed income vs derivatives vs structured notes etc). An investment advisor would be better suited to matching your investments to your risk tolerance.",
"title": ""
},
{
"docid": "0426f28fe3338906029840877b17c603",
"text": "I think the OP is getting lost in designations. Sounds to me that what he wants is a 'financial advisor' not an 'investment advisor'. Does he even have investments? Does he want to be told which securities to buy? Or is he wanting advice on overall savings, insurance, tax-shelters, retirement planning, mortgages, etc. Which is a different set of skills - the financial advisor skill set. Accountants don't have that skill set. They know operating business reporting, taxes and generally how to keep it healthy and growing. They can do personal tax returns (as a favour to only the owners of the business they keep track of usually). IMO they can deal with the reporting but not the planning or optimization. But IMO the OP should just read up and learn this stuff for himself. Accreditation mean nothing. Eg. the major 'planner' brand teaches factually wrong stuff about RRSPs - which are the backbone of Canadian's finances.",
"title": ""
}
] |
[
{
"docid": "d77ecf24ade6171a4838084eeac4a212",
"text": "\"I have always found that the \"\"free\"\" planners are just salesmen pointing you in their best interests. Not that it won't get you a good deal in the processes, but, in my experience, they usually just recommend products that give them the best commission, finders fee, kickback, whatever. Flat fee financial planners are not really to my liking either. This is a taste thing, but generally, I feel like now that they have my fee, what interest do they have in taking care of me. That doesn't mean that they don't give good advise however. They may be a good first step. Percentage based financial planners, those that charge a percentage of assets under management, are my recommendation. The more money they make me the more money they make. This seems to work out quite well. Whatever you do, you need to be aware that financial planners are not just about recommending products, or saving money. That's part of it, but a good planner will also help you look at monthly budgets, current costs, liabilities, and investments. You want to look for someone that you can basically tell your goal to - \"\"I want to have x amount of money saved for y date,\"\" for example, or \"\"I want to reduce my bills by z amount in x months\"\". Run from any planner that looks only at the large sum as the \"\"solution\"\" or only source of money. You want a planner that will look at your first house mortgage(s), care loans, income, other investments, etc. and come up with a full plan for everything. If you're only trying to invest the new house money, and that's it, you're better off just sticking with Google and some research on your own.\"",
"title": ""
},
{
"docid": "f43694d6b791a3c2cd5acf2302cdeffa",
"text": "Investopedia does have tutorials about investments in different asset classes. Have you read them ? If you had heard of CFA, you can read their material if you can get hold of it or register for CFA. Their material is quite extensive and primarily designed for newbies. This is one helluva book and advice coming from persons who have showed and proved their tricks. And the good part is loads of advice in one single volume. And what they would suggest is probably opposite of what you would be doing in a hedge fund. And you can always trust google to fish out resources at the click of a button.",
"title": ""
},
{
"docid": "1ff0975850d918373a5f7ab0599dbcb3",
"text": "Just by chance I recently encountered this link - Do It Yourself MFE, which describes an attempt to self-educate to the level of Master of Financial Engineering. It lists books, online courses, etc. which I think may be interesting for you too.",
"title": ""
},
{
"docid": "732b1d87850d18987f69ce516b933752",
"text": "\"This Stack Exchange site is a nice place to find answers and ask questions. Good start! Moving away from the recursive answer... Simply distilling personal finance down to \"\"I have money, I'll need money in the future, what do I do\"\", an easily digestible book with how-to, multi-step guidelines is \"\"I Will Teach You To Be Rich\"\". The author talks about setting up the accounts you should have, making sure all your bills are paid automatically, saving on the big things and tips to increase your take home pay. That link goes to a compilation page on the blog with many of the most fundamental articles. However, \"\"The World’s Easiest Guide To Understanding Retirement Accounts\"\" is a particularly key article. While all the information is on the free blog, the book is well organized and concise. The Simple Dollar is a nice blog with frugal living tips, lifestyle assessments, financial thoughts and reader questions. The author also reviews about a book a week. Investing - hoping to get better returns than savings can provide while minimizing risk. This thread is an excellent list of books to learn about investing. I highly recommend \"\"The Bogleheads' Guide to Investing\"\" and \"\"The Only Investment Guide You'll Ever Need\"\". The world of investment vehicles is huge but it doesn't have to be complicated once you ignore all the fads and risky stuff. Index mutual funds are the place to start (and maybe end). Asset allocation and diversification are themes to guide you. The books on that list will teach you.\"",
"title": ""
},
{
"docid": "d4ad0c93e416a8ca9c94448e846829a7",
"text": "Also, my wealth manager doesn't like to discuss my money with me. To some extent, I understand this because finances are not my forte This is akin to porn surfing all day at your job instead of writing code, fire him ASAP. For now I would stick it in a bank account until you are comfortable and understand the investments you are purchasing. Here are some options to consider: The last one is tricky. You might have to interview several in order to find that one gem. With you being so young it is unlikely any of your friends have a need for such a service. I would concentrate on asking older work colleagues or friends of your parents for recommendations. Ask if they are educated by their adviser. In the end it would really pay for you to educate yourself about finances. No one can quite do as good as a job as you can in this area. You recognize that there was a problem with your current guy, that shows wisdom. If you have an interest in this area, I would recommend attending a Financial Peace University class. All my kids (about your age and older) are required to take it. It will help you navigate debt, mortgages, insurance, and investing and will cost you about $100. If you don't learn enough the first time, and you won't, you can repeat the course as many times as you wish for no additional cost.",
"title": ""
},
{
"docid": "bc6465a444d8872f0a0363390dbde207",
"text": "\"Good ones, no there are not. Go to a bookstore and pick up a copy of \"\"The Intelligent Investor.\"\" It was last published in 1972 and is still in print and will teach you everything you need to know. If you have accounting skills, pick up a copy of \"\"Security Analysis\"\" by Benjamin Graham. The 1943 version was just released again with a 2008 copyright and there is a 1987 version primarily edited by Cottle (I think). The 1943 book is better if you are comfortable with accounting and the 1987 version is better if you are not comfortable and feel you need more direction. I know recent would seem better, but the fact that there was a heavy demand in 2008 to reprint a 1943 book tells you how good it is. I think it is in its 13th printing since 2008. The same is true for the 72 and 87 book. Please don't use internet tutorials. If you do want to use Internet tutorials, then please just write me a check now for all your money. It will save me effort from having to take it from you penny by penny because you followed bad advice and lost money. Someone has to capture other people's mistakes. Please go out and make money instead. Prudence is the mother of all virtues.\"",
"title": ""
},
{
"docid": "cf54036c6776fec58c6975a58b2792a0",
"text": "A financial advisor is a service professional. It is his/her job to do things for you that you could do for yourself, but you're either too busy to do it yourself (and you want to pay somebody else), or you'd rather not. Just like some people hire tax preparers, or maids, or people to change their oil, or re-roof their houses. Me, I choose to self-manage. I get some advise from Fidelity and Vanguard. But we hired somebody this year to re-roof our house and someone else to paint it.",
"title": ""
},
{
"docid": "3baa242993cb5b6cc6ab13e6fa977495",
"text": "Consistently beating the market by picking stocks is hard. Professional fund managers can't really do it -- and they get paid big bucks to try! You can spend a lot of time researching and picking stocks, and you may find that you do a decent job. I found that, given the amount of money I had invested, even if I beat the market by a couple of points, I could earn more money by picking up some moonlighting gigs instead of spending all that time researching stocks. And I knew the odds were against me beating the market very often. Different people will tell you that they have a sure-fire strategy that gets returns. The thing I wonder is: why are you selling the information to me rather than simply making money by executing on your strategy? If they're promising to beat the market by selling you their strategy, they've probably figured out that they're better off selling subscriptions than putting their own capital on the line. I've found that it is easier to follow an asset allocation strategy. I have a target allocation that gives me fairly broad diversification. Nearly all of it is in ETFs. I rebalance a couple times a year if something is too far off the target. I check my portfolio when I get my quarterly statements. Lastly, I have to echo JohnFx's statement about keeping some of your portfolio in cash. I was almost fully invested going into early 2001 and wished I had more cash to invest when everything tanked -- lesson learned. In early 2003 when the DJIA dropped to around 8000 and everybody I talked to was saying how they had sold off chunks of their 401k in a panic and were staying out of stocks, I was able to push some of my uninvested cash into the market and gained ~25% in about a year. I try to avoid market timing, but when there's obvious panic or euphoria I might under- or over-allocate my cash position, respectively.",
"title": ""
},
{
"docid": "6cf3d98f83f8d22c5222e2e9560689cd",
"text": "To be confident in your solution, and get the best solution for you, consult a local accountant, preferably one who is specialized in taxes for businesses. Or muddle through the code and figure it out for yourself. The primary advantage in consulting with an accountant is that you can ask them to point out ways you can restructure your expenses, debts and income in order to minimize your tax burden. They can help you run the numbers for the various options and choose the one that is right, numerically.",
"title": ""
},
{
"docid": "d6302399f615b121a3add9a0f0edf061",
"text": "\"There are several types of financial advisors. Some are associated with brokerages and insurance companies and the like. Their services are often free. On the other hand, the advice they give you will generally be strongly biased toward their own company's products, and may be biased toward their own profits rather than your gains. (Remember, anything free is being paid for by someone, and if you don't know who it's generally going to be you.) There are some who are good, but I couldn't give you any advice on finding them. Others are not associated with any of the above, and serve entirely as experts who can suggest ways of distributing your money based on your own needs versus resources versus risk-tolerance, without any affiliation to any particular company. Consulting these folks does cost you (or, if it's offered as a benefit, your employer) some money, but their fiduciary responsibility is clearly to you rather than to someone else. They aren't likely to suggest you try anything very sexy, but when it comes to your primary long-term savings \"\"exciting\"\" is usually not a good thing. The folks I spoke to were of the latter type. They looked at my savings and my plans, talked to me about my risk tolerance and my goals, picked a fairly \"\"standard\"\" strategy from their files, ran simulations against it to sanity-check it, and gave me a suggested mix of low-overhead index fund types that takes almost zero effort to maintain (rebalance occasionally between funds), has acceptable levels of risk, and (I admit I've been lucky) has been delivering more than acceptable returns. Nothing exciting, but even though I'm relatively risk-tolerant I'd say excitement is the last thing I need in my long-term savings. I should actually talk to them again some time soon to sanity-check a few things; they can also offer advice on other financial decisions (whether/when I might want to talk to charities about gift annuity plans, whether Roth versus traditional 401(k) makes any difference at all at this point in my career, and so on).\"",
"title": ""
},
{
"docid": "bb1c5beb344c55d09f33176d446f927c",
"text": "Any fee based financial adviser should be able to help you. I don't think you need to worry about finding a 401K specific adviser. I'm not even sure that's a thing. A good place to start is the National Association of Personal Financial Advisors. The reason I specifically mentioned a fee based adviser is that the free ones are working on sales commissions, which may influence them to give advice that is in their own best interest more than yours.",
"title": ""
},
{
"docid": "b950b079cd48b8d52ec91b298421e469",
"text": "\"An investment in knowledge always pays the best interest, as Ben Franklin said. However, this is not a question I can answer for you, as it depends on the opportunities that are specifically available to you as an individual. Sometimes opportunities will knock on your door and you can take advantage, other times you have to create that door to allow opportunities to knock. Maybe you have a friend that is opening a side business, maybe there is a class you can get into at a trivial cost. What I suggest is to start investing just to get into the habit of it, not so much for the returns. Before you do, however, any financial advisor will advise you to begin with a emergency fund, worth about 3-6 months of your expenses for that time. I wanted to hit the ground running and start investing in stocks, but first things first I guess. \"\"Millionaire Next Door\"\" will help you get into a saving mindset, \"\"I will teach you to be rich\"\" is ok, plenty of other books. My advice is keep doing what you're doing, learn to start saving, and once you have obtained an emergency fund of the amount of your choosing, start looking to invest in Index Funds or ETFs through any platform that has LOW FEES!! I use Betterment, but Vanguard is good too, as they allow you to get your feet wet and it's passive. Hope this helps.\"",
"title": ""
},
{
"docid": "7c08b825fd49af4408560809e33a42a6",
"text": "\"I know I replied in another section of this tread as well, but are you looking at MS/Smith Barney, trowe advisory planning, or directly within their mutual fund equity research? The reason I ask is because often there is a misunderstanding between Financial Advisory (FA) work and working directly within a fund doing equity research (Equity Analyst). People often think FA's do a lot of research, and they do, but you'll effectively blackball yourself from **ever** entering research because there's a \"\"sales-person\"\" stigma attached to being an FA.\"",
"title": ""
},
{
"docid": "f2f8f38fd4980be3ead50b16da75a484",
"text": "Why would anyone listen to someone else's advice? Because they believe that the person advising them knows better than they do. It's as simple as that. The fact that you're doing any research at all - indeed, the fact that you know about a site on the internet where personal finance questions get asked and answered - puts you way ahead of the average member of the population when it comes to pensions. If you think you know better than the SJP adviser (and I don't mean that aggressively, just as a matter of fact), then by all means do your own thing. But remember about unknown unknowns - you don't know everything the adviser might say, depending on your circumstances and changes to them over time...",
"title": ""
},
{
"docid": "998308ee3ff8f396abe59c9e60451502",
"text": "In addition to a fee-only advisor, brought up by dg99, you could consider asking your questions on message boards such as Bogleheads.org. I have found the advice amazing, obviously conflict-free, and free.",
"title": ""
}
] |
fiqa
|
88f591d36ef54e81c9cab95173d54322
|
How does Robinhood stock broker make money?
|
[
{
"docid": "4e17ade0793be8969406bb0a2d23fa1e",
"text": "Robinhood seems interesting. Some say it's a gimmicky site with a nice UI not an investing or trading platform. From investopedia: 1. For now, the app stays afloat for mainly two reasons. First, the business itself is extremely lean: no physical locations, a small staff, no massive public relations campaigns and only one operating system platform to maintain. Robinhood also generates interest off of unused cash deposits from user accounts according to the Federal Funds rate. 2. Second, venture capitalists such as Index Ventures, Ribbit Capital, Google Ventures, Andreessen Horowitz, Social Leverage,and “many others” have invested more than $16 million in the app. 3. According to Barron’s, Robinhood plans to implement margin trading in 2015, eventually charging 3.5% interest for the service. E*Trade charges 8.44% for accounts under $25,000. Phone assisted trading will also be available at $10 per trade in the future. 4. Originally, Robinhood planned to make money off of order flows – a common tactic used by discount brokerages in the 1990s to generate revenue. According to the company's FAQ, Robinhood backpedaled on the idea because it executes orders through a clearing partner and, as a result, receives little to no payment for order flow. The company is willing to return to its original plan in the future if it receives order flows directly or begins to generate a lot of revenue from them.",
"title": ""
},
{
"docid": "d1b408b65407c57eb00dd74769540cce",
"text": "\"Yes, there is a lot they are leaving out, and I would be extremely skeptical of them because of the \"\"reasons\"\" they give for being able to charge $0 commissions. Their reasons are that they don't have physical locations and high overhead costs, the reality is that they are burning venture capital on exchange fees until they actually start charging everyone they suckered into opening accounts. They also get paid by exchanges when users provide liquidity. These are called trade rebates in the maker-taker model. They will start offering margin accounts and charging interest. They are [likely] selling trade data to high frequency trading firms that then fill your stock trades at worse prices (Robinhood users are notorious for complaining about the fills). They may well be able to keep commissions low, as that has been a race to the bottom for a long time. But if they were doing their users any actual favors, then they would be also paying users the rebates that exchanges pay them for liquidity. Robinhood isn't doing anything unique as all brokers do what I mentioned along with charging commissions, and it is actually amazing their sales pitch \"\"$0 commissions because we are just a mobile app lol\"\" was enough for their customers. They are just being disingenuous.\"",
"title": ""
},
{
"docid": "6bc45537dbbaa8efca1e2a36ecd28420",
"text": "\"Disclosure: I don't have an iPhone, so I don't use RobinHood. That being said, I have a less \"\"they're-out-to-get-ya\"\" view of what they're doing. As a small business owner (2 businesses), employees cost the most. If you can create a solid business with few (or no) employees and let robots run it, you will drastically reduce your costs. Joe Polish said it similarly with sales letters, something along the lines of they never complain about a headache, need to take a year off to discover themself, or just need a personal day. Robots are the same; they do not have human limits. Most simple trading can be done and maintained by well written code and AI, there's very little need for humans to do anything other than build it. Think about the efficiency of bitcoin versus all the central banks combined; how many people are employed by central banks? Robinhood states that they are using technology in these ways to minimize costs and they're using a system that doesn't need physical branches (this doesn't mean they will never have them, just that they don't need them). Robinhood does not indicate that they allow everything to happen for free; only stock trading. I worked for a large trading firm once and observed that stock trading wasn't the bulk of where they made their money anyway; trading options, futures, index funds, etc are where the big money was and Robinhood says nothing about those being free. Like the CQM mentioned too, they'll be charging for margin as well. In a way, the individual stock trader is dead; many people - including this forum - prefer index funds, so more than likely, Robinhood will strike up a deal with an index fund company or create their own (this is just easy, passive income with an expense ratio). In this category, the markets are their playground, but they do need to attract enough people to their platform, thus free stock trading is a good way to do it. As for selling your information for advertising, that is always a possibility, but they have quite a few other options that would be good for most investors (index funds, affiliating with financial fund companies, etc) where they can start before ever needing to dip their toe in selling information. This isn't to say they won't do it, but that there are few other options they have. The major concern I have for Robinhood is ongoing security. Just building it and letting it run kind of assumes that there won't be major compromises in the future and as AI evolves, superior AI might be able to crush older AI.\"",
"title": ""
},
{
"docid": "67f337555c55ec7847384688e0b2b8d8",
"text": "Charging very high prices for additional standard services: See Commission & Fees: https://brokerage-static.s3.amazonaws.com/assets/robinhood/legal/RHF%20Retail%20Commisions%20and%20Fees%20Schedule.pdf Link is down in the footer, to the left...",
"title": ""
}
] |
[
{
"docid": "160028dad1a8e6ec1b09f8395175d164",
"text": "In my experience they charge you coming and going. For example, if a brokerage firm is advertising that their commissions are only $7/trade, then that means you pay money to buy the stock, plus $7 to them, and later on if you want to sell that stock you must pay $7 to get out of the deal. So, if you want to make any money on a stock (say, priced at $10) you would have to sell it at a price above $10+$7+$7=$24. That kind of sale could take a few years to turn a profit. However, with flat-rate fees like that it is advantageous to buy in bulk.",
"title": ""
},
{
"docid": "19c215406af14db05a1acffe9423ae75",
"text": "Nothing. Stockbrokers set up nominee accounts, in which they hold shares on behalf of individual investors. Investors are still the legal owners of the shares but their names do not appear on the company’s share register. Nominee accounts are ring-fenced from brokers’ other activities so they are financially secure.",
"title": ""
},
{
"docid": "c224346604b8d4e798f6453fcb10053b",
"text": "stocks represent ownership in a company. their price can go up or down depending on how much profit the company makes (or is expected to make). stocks owners are sometimes paid money by the company if the company has extra cash. these payments are called dividends. bonds represent a debt that a company owes. when you buy a bond, then the company owes that debt to you. typically, the company will pay a small amount of money on a regular basis to the bond owner, then a large lump some at some point in the future. assuming the company does not file bankrupcy, and you keep the bond until it becomes worthless, then you know exactly how much money you will get from buying a bond. because bonds have a fixed payout (assuming no bankrupcy), they tend to have lower average returns. on the other hand, while stocks have a higher average return, some stocks never return any money. in the usa, stocks and bonds can be purchased through a brokerage account. examples are etrade, tradeking, or robinhood.com. before purchasing stocks or bonds, you should probably learn a great deal more about other investment concepts such as: diversification, volatility, interest rates, inflation risk, capital gains taxes, (in the usa: ira's, 401k's, the mortgage interest deduction). at the very least, you will need to decide if you want to buy stocks inside an ira or in a regular brokerage account. you will also probably want to buy a low-expense ration etf (e.g. an index fund etf) unless you feel confident in some other choice.",
"title": ""
},
{
"docid": "9e1d0c6ec35cad5fe9aa6d894c55fef5",
"text": "There are 2 main types of brokers, full service and online (or discount). Basically the full service can provide you with advice in the form of recommendations on what to buy and sell and when, you call them up when you want to put an order in and the commissions are usually higher. Whilst an online broker usually doesn't provide advice (unless you ask for it at a specified fee), you place your orders online through the brokers website or trading platform and the commissions are usually much lower. The best thing to do when starting off is to go to your country's stock exchange, for example, The ASX in Sydney Australia, and they should have a list of available brokers. Some of the online brokers may have a practice or simulation account you can practice on, and they usually provide good educational material to help you get started. If you went with an online broker and wanted to buy Facebook on the secondary market (that is on the stock exchange after the IPO closes), you would log onto your brokers website or platform and go to the orders section. You would place a new order to buy say 100 Facebook shares at a certain price. You can use a market order, meaning the order will be immediately executed at the current market price and you will own the shares, or a limit price order where you select a price below the current market price and wait for the price to come down and hit your limit price before your order is executed and you get your shares. There are other types of orders available with different brokers which you will learn about when you log onto their website. You also need to be careful that you have the funds available to pay for the share at settlement, which is 3 business days after your order was executed. Some brokers may require you to have the funds deposited into an account which is linked to your trading account with them. To sell your shares you do the same thing, except this time you choose a sell order instead of a buy order. It becomes quite simple once you have done it a couple of times. The best thing is to do some research and get started. Good Luck.",
"title": ""
},
{
"docid": "4460aa5eb5a249d9056dd222a6242b4f",
"text": "\"Some rich people want to make money without working. So they give their money to a company like Apollo Global Management, and then Apollo Global Management takes the money that they were given and decides how they will turn that money into more money, which they can give back to the person who gave it to them. That money they give back is called return, or \"\"return on investment.\"\" That's how the person who gave the money, makes money -- from return on investment. The company's only real purpose is to make money with the money you give them. The company takes the money and sometimes they let other companies borrow that money, either for a long period of time or short period of time. They have different things called stocks, bonds, commodities and other things that they trade back and forth, and they only hope that they will make money doing it. It is sort of like they are going to work and playing the lottery every day, except, they do a lot of math to try and figure out how they can win the money from other companies as quick as possible. Instead of buying lotto tickets, they are buying those things I mentioned, stocks, bonds, commodities, and other things. By buying or selling these things, they are betting that a company will either make or lose money. It is basically like a game, with you and other people and companies, all as players. You are betting that the other players in the game will either make or lose money, based on what you see other players doing. As a player, you can win big or small, and you can lose big or small. There's a thing called the SEC. To play the game, you have to follow the rules that the SEC makes, or you will end up in jail! They are like the police, they are looking for people who do bad things. When you are older, you can make a lot of money if you work at a company like Apollo, but you can make more money than a lottery winner if you own a company yourself like Apollo.\"",
"title": ""
},
{
"docid": "2946b37fe124978cc75eb71e8f0a2c12",
"text": "\"A simple way to ask the question might be to say \"\"why can't I just use the same trick with my own shares to make money on the way down? Why is borrowing someone else's shares necessary to make the concept a viable one? Why isn't it just the inverse of 'going long'?\"\" A simple way to think about it is this: to make money by trading something, you must buy it for less than you sell it for. This applies to stocks like anything else. If you believe the price will go up, then you can buy them first and sell them later for a higher price. But if you believe the price will go down, the only way to buy low and sell high is to sell first and buy later. If you buy the stock and it goes down, any sale you make will lose you money. I'm still not sure I fully understand the point of your example, but one thing to note is that in both cases (i.e., whether you buy the share back at the end or not), you lost money. You say that you \"\"made $5 on the share price dropping\"\", but that isn't true at all: you can see in your example that your final account balance is negative in both cases. You paid $20 for the shares but only got $15 back; you lost $5 (or, in the other version of your example, paid $20 and got back $5 plus the depreciated shares). If you had bought the shares for $20 and sold them for, say, $25, then your account would end up with a positive $5 balance; that is what a gain would look like. But you can't achieve that if you buy the shares for $20 and later sell them for less. At a guess, you seem to be confusing the concept of making a profit with the concept of cutting your losses. It is true that if you buy the shares for $20 and sell them for $15, you lose only $5, whereas if you buy them for $20 and sell for $10, you lose the larger amount of $10. But those are both losses. Selling \"\"early\"\" as the price goes down doesn't make you any money; it just stops you from losing more money than you would if you sold later.\"",
"title": ""
},
{
"docid": "03d36bcfc0701893351e08d872295887",
"text": "Some good answers already, but let me add a TL:DR version. Brokers work like a special type of bank account where you can deposit or withdraw money. The major difference is that they also give you the ability to buy/sell investments with the money in your account which you can do by either calling them or using their website. Important: Many investments you will make through a broker(e.g. stocks) are not insured against losing value like the money in your bank account.",
"title": ""
},
{
"docid": "71399cba538d2d34baf47cb9990fb45a",
"text": "\"Also, in the next sentence, what is buyers commission? Is it referring to the share holder? Or potential share holder? And why does the buyer get commission? The buyer doesn't get a commission. The buyer pays a commission. So normally a buyer would say, \"\"I want to buy a hundred shares at $20.\"\" The broker would then charge the buyer a commission. Assuming 4%, the commission would be So the total cost to the buyer is $2080 and the seller receives $2000. The buyer paid a commission of $80 as the buyer's commission. In the case of an IPO, the seller often pays the commission. So the buyer might pay $2000 for a hundred shares which have a 7% commission. The brokering agent (or agents may share) pockets a commission of $140. Total paid to the seller is $1860. Some might argue that the buyer pays either way, as the seller receives money in the transaction. That's a reasonable outlook. A better way to say this might be that typical trades bill the buyer directly for commission while IPO purchases bill the seller. In the typical trade, the buyer negotiates the commission with the broker. In an IPO, the seller does (with the underwriter). Another issue with an IPO is that there are more parties getting commission than just one. As a general rule, you still call your broker to purchase the stock. The broker still expects a commission. But the IPO underwriter also expects a commission. So the 7% commission might be split between the IPO underwriter (works for the selling company) and the broker (works for the buyer). The broker has more work to do than normal. They have to put in the buyer's purchase request and manage the price negotiation. In most purchases, you just say something like \"\"I want to offer $20 a share\"\" or \"\"I want to purchase at the market price.\"\" In an IPO, they may increase the price, asking for $25 a share. And they may do that multiple times. Your broker has to come back to you each time and get a new authorization at the higher price. And you still might not get the number of shares that you requested. Beyond all this, you may still be better off buying an IPO than waiting until the next day. Sure, you pay more commission, but you also may be buying at a lower price. If the IPO price is $20 but the price climbs to $30, you would have been better off paying the IPO price even with the higher commission. However, if the IPO price is $20 and the price falls to $19.20, you'd be better off buying at $19.20 after the IPO. Even though in that case, you'd pay the 4% commission on top of the $19.20, so about $19.97. I think that the overall point of the passage is that the IPO underwriter makes the most money by convincing you to pay as high an IPO price as possible. And once they do that, they're out of the picture. Your broker will still be your broker later. So the IPO underwriter has a lot of incentive to encourage you to participate in the IPO instead of waiting until the next day. The broker doesn't care much either way. They want you to buy and sell something. The IPO or something else. They don't care much as to what. The underwriter may overprice the stock, as that maximizes their return. If they can convince enough people to overpay, they don't care that the stock falls the day after that. All their marketing effort is to try to achieve that result. They want you to believe that your $20 purchase will go up to $30 the next day. But it might not. These numbers may not be accurate. Obviously the $20 stock price is made up. But the 4% and 7% numbers may also be inaccurate. Modern online brokers are very competitive and may charge a flat fee rather than a percentage. The book may be giving you older numbers that were correct in 1983 (or whatever year). The buyer's commission could also be lower than 4%, as the seller also may be charged a commission. If each pays 2%, that's about 4% total but split between a buyer's commission and a seller's commission.\"",
"title": ""
},
{
"docid": "4b7262dc2ce7e8c5af516b49b75cc613",
"text": "\"There are a few people that do this for a living. They are called \"\"market makers\"\" or \"\"specialists\"\" in a particular stock. First of all, this requires a lot of capital. You can get burned on a few trades, a process known as \"\"gambler's ruin,\"\" but if you have enough capital to weather the storm, you can make money. Second, you have to be \"\"licensed\"\" by the stock market authorities, because you need to have stock market trading experience and other credentials. Third, you are not allowed to buy and sell at will. In order to do your job, you have to \"\"balance the boat,\"\" that is buy, when others are selling, and sell, when others are buying, in order to keep the market moving in two directions. It's a tough job that requires a lot of experience, plus a license, but a few people can make a living doing this.\"",
"title": ""
},
{
"docid": "769d27c645763928c956ad9de86d019b",
"text": "Prop (proprietary) traders trade using huge amounts of a bank's money (i.e. other people's money) so the reason why they have such low commissions (and they certainly do) is that the firms for which they work negotiate low commissions as the quantities and volumes (as they also trade very frequently) will be high and so the total commission will be very high. There is no such thing as a prop trading account unless you are a big bank with a very large bank roll (tens of millions of USD) so you cannot open one to enjoy those benefits unless you have enough money that you can negotiate your commission with brokers. 25k CAD is definitely not enough money to even start a conversation about those sorts of commissions. note: prop traders are generally banned from trading intraday with their own money by their employers and the law as it is a massive conflict of interests. Those who do and get caught face lengthy prison sentences.",
"title": ""
},
{
"docid": "8f55019d19ab0b8c5d5fb5b5b7d2960a",
"text": "I feel like the author doesn't have a clear message. On the one hand he is saying that Robinhood users should be long-term passive investors, the he turns around and criticizes it for not completing trades fast enough and having too much slippage. I think that we need to be very specific about our goals. If the goal is to make as much money as possible, sure, Robinhood is a poor tool. However, the vast majority of people are only at the point that they need to save more. If then our goal is to get more people to save more then it is a great tool. It lowers barriors and makes it fun. More importantly, the limits of Robinhood are obvious to anyone who starts to take the next step and increase their gains.",
"title": ""
},
{
"docid": "1410bf64e236bfa3179df8388872d022",
"text": "Most of stock trading occurs on what is called a secondary market. For example, Microsoft is traded on NASDAQ, which is a stock exchange. An analogy that can be made is that of selling a used car. When you sell a used car to a third person, the maker of your car is unaffected by this transaction and the same goes for stock trading. Still within the same analogy, when the car is first sold, money goes directly to the maker (actually more complicated than that but good enough for our purposes). In the case of stock trading, this is called an Initial Public Offering (IPO) / Seasoned Public Offering (SPO), for most purposes. What this means is that a drop of value on a secondary market does not directly affect earning potential. Let me add some nuance to this. Say this drop from 20$ to 10$ is permanent and this company needs to finance itself through equity (stock) in the future. It is likely that it would not be able to obtain as much financing in this matter and would either 1) have to rely more on debt and raise its cost of capital or 2) obtain less financing overall. This could potentially affect earnings through less cash available from financing. One last note: in any case, financing does not affect earnings except through cost of capital (i.e. interest paid) because it is neither revenue nor expense. Financing obtained from debt increases assets (cash) and liabilities (debt) and financing obtained from stock issuance increases assets (cash) and shareholder equity.",
"title": ""
},
{
"docid": "f29816a5c7091d03a3667b83afe982fe",
"text": "Upselling you is how they make money. That's the price of the free content. Test their recommendations. Pretend to buy the stocks they say. How do they do? Do they ever say to sell the stocks after their buy recommendations? There are lots and lots of opinions out there. I doubt people really hear about the good ones because (a) the good ones have paid newsletters and/or (b) the good ones aren't telling a soul because they're absolutely cleaning it up. Warren Buffett doesn't announce his intentions. He's been buying for a while before anyone finds out.",
"title": ""
},
{
"docid": "bada6c854343fb7d5ca949eb55eca134",
"text": "\"The answer posted by Kirill Fuchs is incorrect according to my series 65 text book and practice question answers. The everyday investor buys at the ask and sells at the bid but the market maker does the opposite. THE MARKET MAKER \"\"BUYS AT THE BID AND SELLS AT THE ASK\"\", he makes a profit form the spread. I have posted a quiz question and the answer created by the Financial Industry Regulatory Authority (FINRA). To fill a customer buy order for 800 WXYZ shares, your firm requests a quote from a market maker. The response is \"\"bid 15, ask 15.25.\"\" If the order is placed, the market maker must sell: A) 800 shares at $15.25 per share. B) 800 shares at $15 per share. C) 100 shares at $15.25 per share. D) 800 shares at no more than $15 per share. Your answer, sell 800 shares at $15.25 per share., was correct!. A market maker is responsible for honoring a firm quote. If no size is requested by the inquiring trader, a quote is firm for 100 shares. In this example, the trader requested an 800-share quote, so the market maker is responsible for selling 8 round lots of 100 shares at the ask price of $15.25 per share.\"",
"title": ""
},
{
"docid": "747cc718e1016927fc48bf0216b35c05",
"text": "As others have said, it depends on the brokerage firm. My broker is Scottrade. With Scottrade the commission is assessed and applied the moment the order is filled. If I buy 100 shares of XYZ at $10 a share then Scottrade will immediately deduct $1007.02 out of my account. They add the commission and fees to the buy transaction. On a sale transaction they subtract the commission and fees from the resulting money. So if I sell 100 shares of XYZ at $11 a share I will get 1,092.98 put into my account, which I can use three business days later.",
"title": ""
}
] |
fiqa
|
58f5da5217a3b43e45e9740b3821461a
|
Credit Card Approval
|
[
{
"docid": "09472cd8bdfdd9f6c5506339edeb2e32",
"text": "Banks use quite a few parameters to arrive at the decision for card approval. The credit score is just one input. There are multiple other inputs it would source, for example total years in job, the number of years in current job, income streams, etc ... the exact formula is a trade secret and varies from Bank to Bank",
"title": ""
},
{
"docid": "a81f01ff15ce6066d8db54a2328a24ee",
"text": "Three big ones that are common in almost all banks (though, individually, they may have other criteria): Other criteria I've seen (while working in the banking industry - varying by bank): the average balance you keep on deposit accounts (checking/savings/CDs/etc), number of overdraft fees in the past 12 months (one bank I worked for wouldn't approve a credit card if a customer had more than 5 overdrafts in the past year), the length of time a customer had been with the bank. Note that a credit card only company, like AmEx, may have different criteria in that they don't offer all the other type of accounts that other other banks do.",
"title": ""
},
{
"docid": "3c4999c3b65b141f9eacb8703aee109c",
"text": "Bigger than the three mentioned above is on-time payment and/or collections activity. If your report shows you have not paid accounts on time, or have accounts in collections, that is almost guaranteed decline except for the least desirable cards. Another factor is number of hard inquiries. If you have been on a recent application spree, you will get declined for too many recent inquiries. Wait 12-18 months for the inquiries to roll off your report. Applications for business cards are a little tricky depending on whether you are applying as an individual or as an employee of a corporation. I usually stay away from these as you can be liable for company debts you did not charge under the right circumstances.",
"title": ""
}
] |
[
{
"docid": "49b743482fb6c3ce7ded4219b2149524",
"text": "Three things prevent you from doing this: Credit cards generally don't accept other credit cards as payment. You could do this with a cash advance or balance transfer, but Cash advances and balance transfers usually have fees associated with them, negating any reward you might earn. Your card might have a no-fee balance transfer promotion going, but Cash advances and balance transfers generally aren't eligible for rewards.",
"title": ""
},
{
"docid": "898499ec5c013cb2425c03238bfdc185",
"text": "Credit card companies organize types of businesses into different categories. (They charge different types of businesses different fees.) When a business first sets up their credit card processing merchant account, they need to specify the category. Here is a list of categories that Visa uses. Grocery stores and supermarkets are category number 5411. Other types of businesses, such as the examples you provided in your question, have a different category number. American Express simply looks at the merchant category code for each of your transactions and only gives you rewards for the ones in the grocery store category. It's all automated. They likely don't have a list of every grocery store in the US, and even if they did, they would probably not provide it to the public, for proprietary reasons. If you are in doubt about whether or not a particular store is in the grocery category, you'll just have to charge it to your card and see what happens. Often, the category of transaction will be shown for each transaction on your credit card's website.",
"title": ""
},
{
"docid": "a2bca858601b7bc24a317dbaf20d6a38",
"text": "\"You have a lack of credit history. Lending is still tight since the recession and companies aren't as willing to take a gamble on people with no history. The secured credit card is the most direct route to building credit right now. I don't think you're going to be applicable for a department store card (pointless anyways and encourages wasteful spending) nor the gas card. Gas cards are credit cards, funded through a bank just like any ordinary credit card, only you are limited to gas purchases at a particular retailer. Although gas cards, department store cards and other limited usage types of credit cards have less requirements, in this post-financial crisis economy, credit is still stringent and a \"\"no history\"\" file is too risky for banks to take on. Having multiple hard inquiries won't help either. You do have a full-time job that pays well so the $500 deposit shouldn't be a problem for the secured credit card. After 6 months you'll get it back anyways. Just remember to pay off in full every month. After 6 months you'll be upgraded to a regular credit card and you will have established credit history.\"",
"title": ""
},
{
"docid": "d60942b11b6c901e01348d1e8c3fa46f",
"text": "There is no special activity type (or provider) for this situation. Depending on the car rental agency, it is either a normal charge, and they later return the charge as necessary; or it is a normal authorization (like in a restaurant) that does never get confirmed (so it falls off the credit card after about three days).",
"title": ""
},
{
"docid": "bc28dfa716f66d5aff573a4d995cbf1a",
"text": "\"Executive summary: It sounds like the merchant just did an authorization then cancelled that authorization when you cancelled the order, so there was never an actual charge so you'll never see an actual refund and there's no money to \"\"claim\"\". More detail: From your second paragraph, it sounds like they just did an authorization but never posted the transaction. A credit card authorization is basically the merchant asking your credit card company \"\"Does sandi have enough credit to pay this amount and if so please reserve that amount for a bit.\"\" The authorization will decrease the total credit you have available on the card, but it's not actually a charge, so if your billing cycle ends, it won't show up on your statement. Depending on which company issued your credit card, you may be able to see the authorization online, usually labelled something like \"\"Pending transactions\"\". Even if your credit card company doesn't show pending transactions, you'll see a decrease in your available credit, however you shouldn't see an increase in your balance. The next step, and the only way the original merchant gets paid, is for the merchant to actually post a transaction to your card. Then it becomes a real charge that will show up on your next credit card statement and you'll be expected to pay it (unless you dispute the charge, but that's a different issue). If the charge is for the same amount as the authorization, the authorization will go away (it's now been converted to an actual charge). If the amounts are different, or the merchant never posts a transaction, the authorization will be removed by your credit card company automatically after a certain amount of time. So it sounds like you placed the order, the merchant did an authorization to make sure you could pay for it and to reserve the money, but then you cancelled the order before the merchant could post the transaction, so you were never really charged for it. The merchant then cancelled the authorization (going by the start of your third paragraph). So there was never an actual transaction posted, you were never charged, and you never really owed any money. Your available credit went down for a bit, but now should be restored to what it was before you placed the order. You'll never see an actual refund reflected on your credit card statement because there was no actual transaction.\"",
"title": ""
},
{
"docid": "f028b1f62bfa8ad8d9af53c00f8cd407",
"text": "CreditCards.com has maintained a fairly comprehensive list of offers for many years now. I don't see any straight 2% offers there right now.",
"title": ""
},
{
"docid": "6af3c71153cd6f76bcfda075408eb03d",
"text": "It is barely possible that this is Citi's fault, but it sounds more like it is on the Costco end. The way that this is supposed to work is that they preauthorize your card for the necessary amount. That reserves the payment, removing the money from your credit line. On delivery, they are supposed to capture the preauthorization. That causes the money to transfer to them. Until that point, they've reserved your payment but not actually received it. If you cancel, then they don't have to pay processing fees. The capture should allow for a larger sale so as to provide for tips, upsells, and unanticipated taxes and fees. In this case, instead of capturing the preauthorization, they seem to have simply generated a new transaction. Citi could be doing something wrong and processing the capture incorrectly. Or Costco could be doing a purchase when they should be doing a capture. From outside, we can't really say. The thirty days would seem to be how long Costco can schedule in advance. So the preauthorization can last that long for them. Costco should also have the ability to cancel a preauthorization. However, they may not know how to trigger that. With smaller merchants, they usually have an interface where they can view preauthorizations and capture or cancel them. Costco may have those messages sent automatically from their system. Note that a common use for this pattern is with things like gasoline or delivery purchases. If this has been Citi/Costco both times, I'd try ordering a pizza or some other delivery food and see if they do it correctly. If it was Citi both times and a different merchant the other time, then it's probably a Citi problem rather than a merchant problem.",
"title": ""
},
{
"docid": "fe0000ec75eb49b8dd3971dad3a268c4",
"text": "Typically there are several parties involved: (Sometimes one company plays multiple roles; for example AmEx is a network and an issuer.) When a merchant charges a card and the issuer approves it, money is transferred from the issuer to the acquirer to the merchant. This settlement process takes some time, but generally is completed within a day. Of course, most cardholders pay on a monthly basis. The issuer must use their own funds in the mean time. If the cardholder defaults, the issuer takes the loss.",
"title": ""
},
{
"docid": "c6b6c0b21e83c57a3b62918af7f3f1bf",
"text": "\"* Don't underestimate the power of facial recognition wizardry. * No, you don't have to show ID to activate the cards. But keep in mind that they know which cards were activated. There is a paper trail. I'm sure Amex, Visa, MC would happily deactivate the cards for them. Target just has to report that the cards were activated using fraud/theft. * If you took advantage of this \"\"deal\"\" your best bet is to get the prepaid credit cards and spend the money asap at another store (walmart) before they are deactivated. * If indeed this legally is considered fraud, and they go after you for it, you could end up in a giant heap of trouble as many laws have been broken. And, if you use any of the \"\"fraudulent\"\" CC's to make online purchases from a company in another state you could face even more federal charges.\"",
"title": ""
},
{
"docid": "d69080d71cf0e268084c0cd37c108d35",
"text": "\"As for PC Mastercard like stated by @nullability, VISA Desjardins list the \"\"Pending Authorizations\"\" almost instantly (the time it's take to get back home) in AccesD (Their Web portal for managing accounts).\"",
"title": ""
},
{
"docid": "6264d91249767240ea3928379994b2a4",
"text": "quid has expressed some of the disadvantages with this approach, but there is another. Vendors will not want to give you any goods you buy with your credit card until they are sure they will get the money. With your suggested approach buying something with a credit card now looks like: No vendor is going to stand for this for even moderate sized transactions, so in reality they will just decline your card if you have this facility enabled.",
"title": ""
},
{
"docid": "56b3f2e8678f37a2950221facf30df56",
"text": "Is it difficult to ask the credit card issuer for two cards, even if the account belongs to one person? You can most definitely get two cards for one account. People do it all the time. You just have to add her on as an authorized user. Would it be better for me to apply for the card on my own, or would there be an advantage to having her co-sign? It depends. If she co-signed, then that means she is also responsible for the credit card payments - which can help her credit score. If its is just you applying, then you are the only one responsible. If you don't want her lower credit score to impact what you could be approved for, then only you should apply. However, if you are the sole account holder, then you are responsible for the payments, which means, if in the event you guys break up and she maxes out the card before you cancel it, then you are on the hook for what she spend. As for improving her credit score, I do know that some banks report to the credit bureaus for the authorized user as well, so that could help her out too.",
"title": ""
},
{
"docid": "5f47a81ac4e95a651ae91ff4749699af",
"text": "\"As others have stated, credit (signature required) is processed through their respective networks (Visa, MasterCard, Discover, or American Express). A \"\"debit\"\" card tied to your checking account, still go through the same credit network even though the funds are guaranteed from your checking rather than a free loan 30-60 days which has the potential to be unpaid. This type of debit card purchase may be eligible for a lower processing rate for less risk. Debit cards can also be processed through the debit network (PIN required, no signature). This is typically a straight fee such as $0.35. Fees vary, but let me give you a simple comparison: Say you are at the supermarket and buy $50 worth of groceries with a debit card with Visa logo. You are asked \"\"credit\"\" or \"\"debit\"\": At my supermarket, this is why I am given the option to enter my PIN first. If I want to pay by credit, I have to tap Cancel to process via credit signature.\"",
"title": ""
},
{
"docid": "15719a8b8ee5b0361f43e22b91f3d55b",
"text": "\"Generally not. Since authorized user cards are the same account and the difference between the two (the original and the AU card) are minimal. Note, there's nothing technically stopping banks from offering this as a feature, two cards do have identifiers that indicate they're separate cards, but the banks concern for your needs stops at how much they can bleed from you, and \"\"helping you control your spending\"\" is not part of that.\"",
"title": ""
},
{
"docid": "65e15aec404bf25068aecdd8e101821d",
"text": "\"This is a great question precisely because the answer is so complicated. It means you're starting to think in detail about how orders actually get filled / executed rather than looking at stock prices as a mythical \"\"the market\"\". \"\"The market price\"\" is a somewhat deceptive term. The price at which bids and asks last crossed & filled is the price that prints. I.e. that is what you see on a market price data feed. ] In reality there is a resting queue of orders at various bids & asks on various exchanges. (source: Larry Harris. A size of 1 is 1H = 100 shares.) So at first your 1000H order will sweep through the standing queue of fills. Let's say you are trading a low-volume stock. And let's say someone from another brokerage has set a limit order at a ridiculous price. Part of your order may sweep through and part of it get filled at a ridiculously high price. Or maybe either the exchange or your broker / execution mechanism somehow will protect you against the really high fill. (Let's say your broker hired GETCO, who guarantees a certain VWAP.) Also people change their bids & asks in response to what they see others do. Your 1000H size will likely be marked as a human counterparty by certain players. Other players might see that order differently. (Let's say it was a 100 000H size. Maybe people will decide you must know something and decide they want to go the same direction as you rather than take the opportunity to exit. And maybe some super-fast players will weave in and out of the filling process itself.) There is more to it because, what if some of the resting asks are on other venues? What if both you and some of the asks match with someone who uses the same broker as you? Not only do exchange rules come into play, but so do national regulations. tl;dr: You will get filled, with price slippage. If you send in a big buy order, it will sweep through the resting asks but also there are complications.\"",
"title": ""
}
] |
fiqa
|
189eea3747ed3f04e3ab018e3ff786a8
|
When should I start an LLC for my side work?
|
[
{
"docid": "59c7fd30c8303ec146bf06020749ffcb",
"text": "The major reason to start an LLC for side work is if you want the additional personal liability protection afforded by one. If you're operating as a sole proprietor, you may be exposing yourself to liability: debts and judgments against your business can put your personal assets at risk! So, if you're intending to continue and grow your side work in the future, you ought to consider the LLC sooner than later. It's also an important legal decision and you should consider seeking a professional opinion. The Wall Street Journal has a brief guide titled How to Form an LLC. Here are some notable excerpts: A limited liability company, or LLC, is similar to a partnership but has the legal protections of personal assets that a corporation offers without the burdensome formalities, paperwork and fees. [...] Some states charge annual fees and taxes that can diminish the economic advantage of choosing to become an LLC. Among LLC advantages: pass-through taxation – meaning the profits and losses “pass through” the business to the individuals owning the business who report this information on their own personal tax returns. The result can be paying less in taxes, since profits are not taxed at both the business level and the personal level. Another plus: Owners aren’t usually responsible for the company’s debts and liabilities. [...] Also check out onstartups.com's Startup 101: Should You Form An Inc. or An LLC? Here are some additional articles that discuss the advantages / disadvantages of forming an LLC:",
"title": ""
},
{
"docid": "616d6830f17e38d5635622525c0d1b86",
"text": "\"An LLC is overkill for 99% of 1 man small businesses. Side-businesses should remain as sole proprieterships until they get much larger and need the benefits of the LLC laws. You can still bill through a company name if you want to start building a brand: And set aside 25% of your gross income for Uncle Sam. He wants you to file a Schedule C with your regular 1040 at tax time. He doesn't care about your company. He just wants your social security number with a big fat check stuck to it. Be sure to maximize your tax savings by tracking your expenses like a hawk. Every mile is worth 50 cents. I recommend using a tracking system like the TaxMinimiser.com (buy the $4 version to see if you like it). Bottom line: EARN MONEY. Don't set up a \"\"corporation\"\".\"",
"title": ""
},
{
"docid": "aa1af5d9d393c3f322ed64975a43200c",
"text": "\"Not all of the reason to start an LLC is liability (although that is implicit). There are two main reasons as far as I have experienced it: I always recommend that people set things up properly from the beginning. If you do start to grow, or if you need to cut your losses, it can be very difficult to separate yourself from the company if it isn't set up entirely apart from you. I was once told, \"\"Run your small company as you would wish it to be.\"\" Don't get into bad habits at the beginning. They become bad habits in big companies later on.\"",
"title": ""
},
{
"docid": "b91b0a5738a90c2834593bede2d4b8b2",
"text": "It really depends on the type of business you are running. If there is any chance of liability, you should protect yourself with an LLC. Then it is much more difficult for them to sue and take personal assets. For example, if you are a wedding photographer, you would want to be an LLC in case you lose someones pictures.",
"title": ""
}
] |
[
{
"docid": "b2635248cd6f4a5ad54e321d27fcb3d6",
"text": "\"Basically, yes. Don't use your business account for personal spending because it may invalidate your limited liability protection. Transfer a chunk of money to your personal account, write it down in your books as \"\"distribution\"\" (or something similar), and use it in whatever way you want from your personal account. The IRS doesn't care per se, but mixing personal and business expenses will cause troubles if you're audited because you'll have problems distinguishing one from another. You should be using some accounting software to make sure you track your expenses and distributions correctly. It will make it easier for you to prepare reports for yourself and your tax preparer, and also track distributions and expenses. I suggest GnuCash, I find it highly effective for a small business with not so many transactions (if you have a lot of transactions, then maybe QuickBooks would be more appropriate).\"",
"title": ""
},
{
"docid": "ac312006d6f1c199884fac1886a4e1fc",
"text": "The LLC will not be liable for anything, it is disregarded for tax purposes. If you're doing any work while in the US, or you (or your spouse) are a green card holder or a US citizen - then you (not the LLC) may be liable, may be required to file, pay, etc. Unless you're employing someone, or have more than one member in your LLC, you do not need an EIN. Re the bank - whatever you want. If you want you can open an account in an American bank. If you don't - don't. Who cares?",
"title": ""
},
{
"docid": "ac8916af592d24f229674bf1f89c93c2",
"text": "If this is something you plan to continue doing it would make sense to create it as it's own business entity and then to get non-profit status eg: 501c3. Otherwise I'm pretty sure you have to think of it as YOU receiving the money as a sole proprietor - and file a couple more tax forms at the end of the year. I think it's a Schedule C. So essentially if you bring in $10,000, then you spend that $10,000 as legit business expenses for your venture your schedule C would show no profit and wouldn't pay taxes on it. BUT, you do have to file that form. Operating this way could have legal implications should something happen and you get sued. Having the proper business entity setup could help in that situation.",
"title": ""
},
{
"docid": "a4e58727a5c4014e2a94305aaf66c17a",
"text": "If the business activities are closely related you could combine them into a single Schedule C, but in your case it sounds like it should be two separate Schedule C's. The loss from one will offset profit from the other, and your self-employment and income taxes will be based on the net of the two businesses. Any business can generate losses, make sure your expenses are reasonable and documented, there are plenty of resources out there for helping you decide which expenses are proper for each business. There is some truth to the warning that not showing profit in 2/5 of years can raise flags at the IRS, and they may deem your business a hobby, which disallows losses. That is not a hard rule, legitimate businesses can lose money for years on end without issue, if you're trying to make money at it, you'll likely be fine.",
"title": ""
},
{
"docid": "0fb8ad9020bf14fbf901fe9c1f18a4c4",
"text": "\"If you receive a 1099-MISC from YouTube, that tells you what they stated to the IRS and leads into most tax preparation software guided interviews or wizards as a topic for you to enter. Whether or not you have a 1099-MISC, this discussion from the IRS is pertinent to your question. You could probably elect to report the income as a royalty on your copyrighted work of art on Schedule E, but see this note: \"\"In most cases you report royalties in Part I of Schedule E (Form 1040). However, if you ... are in business as a self-employed writer, inventor, artist, etc., report your income and expenses on Schedule C or Schedule C-EZ (Form 1040).\"\" Whether reporting on Schedule E or C is more correct or better for your specific circumstances is beyond the advice you should take from strangers on the internet based on a general question - however, know that there are potentially several paths for you. Note that this is revenue from a business, so if you paid for equipment or services that are 100% dedicated to your YouTubing (PC, webcam, upgraded broadband, video editing software, vehicle miles to a shoot, props, etc.) then these are a combination of depreciable capital investments and expenses you can report against the income, reducing the taxes you may owe. If the equipment/services are used for business and personal use, there are further guidelines from the IRS as to estimating the split. These apply whether you report on Sch. E, Sch. C, or Sch C-EZ. Quote: \"\"Self-Employment Income It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income. All income earned through the taxpayer’s business, as an independent contractor or from informal side jobs is self-employment income, which is fully taxable and must be reported on Form 1040. Use Form 1040, Schedule C, Profit or Loss from Business, or Form 1040, Schedule C-EZ, Net Profit from Business (Sole Proprietorship) to report income and expenses. Taxpayers will also need to prepare Form 1040 Schedule SE for self-employment taxes if the net profit exceeds $400 for a year. Do not report this income on Form 1040 Line 21 as Other Income. Independent contractors must report all income as taxable, even if it is less than $600. Even if the client does not issue a Form 1099-MISC, the income, whatever the amount, is still reportable by the taxpayer. Fees received for babysitting, housecleaning and lawn cutting are all examples of taxable income, even if each client paid less than $600 for the year. Someone who repairs computers in his or her spare time needs to report all monies earned as self-employment income even if no one person paid more than $600 for repairs.\"\"\"",
"title": ""
},
{
"docid": "441d66b4f3a0b06654ca14ea69393c53",
"text": "You better consult with a tax adviser (EA or CPA) on this, my answer doesn't constitute such an advice. Basically, you're selling stuff on Kickstarter. No matter how they call it (projects, pledges, rewards - all are just words), you're selling stuff. People give you money (=pledges) and in return you're giving them tangible or intangible goods (=rewards). All the rest is just PR. So you will pay taxes on all the money you get, and you will be able to deduct some of the expenses (depends on whether its a business or a hobby, the deduction may be full or limited). It doesn't matter if you use LLC or your own account from the financial/taxation point of you, but it matters legally. LLC limits your personal liability, but do get a legal advice on this issue, and whether it is at all relevant for you. If you raise funds in 2012 you pay taxes on the money in 2012. If you go into production in 2013 - you can deduct expenses in 2013. If you're classified as a hobby, you'll end up paying full taxes in 2012 and deducting nothing in 2013. Talk to a tax adviser.",
"title": ""
},
{
"docid": "8d28aa994d28e9404b96d8ac04f34c79",
"text": "LLC doesn't explain the tax structure. LLCs can file as a partnership (1065) Scorp (1120S) or nothing at all, if it's a SMLLC. (Single Member LLC). I really enjoy business, and helping people get started. If you PM me your contact information, id be more than happy to go over any issues you may have, and help you with your current issue.",
"title": ""
},
{
"docid": "49af7aa1976b53feba7306586aa787c1",
"text": "You may be able to, depending on what state you're in, but it is going to be 10x more complicated than just forming a new LLC. I don't see an advantage to this approach - if you're imagining it will be cheaper, you are imagining wrong.",
"title": ""
},
{
"docid": "0cc9f29299b97f983d66979dc8a38088",
"text": "Are you talking about domicile? An LLC is treated differently than a corporation in the terms of citizenship of the law. An LLC is a citizen of whichever state it's members (shareholders) are citizens. I would recommend you just spend the money on a business attorney to ensure that all the t's are crossed correctly so it doesn't end up costing you more later on.",
"title": ""
},
{
"docid": "4a9011e433785e61732b017579a786a1",
"text": "Yes, but make sure you issue a 1099 to these freelancers by 1/31/2016 or you may forfeit your ability to claim the expenses. You will probably need to collect a W-9 from each freelancer but also check with oDesk as they may have the necessary paperwork already in place for this exact reason. Most importantly, consult with a trusted CPA to ensure you are completing all necessary forms correctly and following current IRS rules and regulations. PS - I do this myself for my own business and it's quite simple and straight forward.",
"title": ""
},
{
"docid": "d382dad448f0554e3dda16e8fb3a7f7d",
"text": "First of all, consult an accountant who is familiar with tax laws and online businesses. While most accountants know tax laws, fewer know how to handle online income like you describe although the number is growing. Right now, since you're a minor, this complicates things a bit. That's why you'll need a tax accountant to come up with the best business structure to use. You'll need to keep your own records to estimate your quarterly taxes. At the amount you're making, you'll want to do this since you'll pay a substantial penalty at the end of the year if you don't. You can use a small business accounting software package for this or just track everything using Excel or the like. As long as taxes are paid, you won't go to jail. But you need to pay them along with any penalties by April 15, 2013. If you don't do this, then the IRS will want to have a 'discussion' with you.",
"title": ""
},
{
"docid": "acd13ed628496354fa8b601a28ac4b2d",
"text": "As a new (very!) small business, the IRS has lots of advice and information for you. Start at https://www.irs.gov/businesses/small-businesses-self-employed and be sure you have several pots of coffee or other appropriate aid against somnolence. By default a single-member LLC is 'disregarded' for tax purposes (at least for Federal, and generally states follow Federal although I don't know Mass. specifically), although it does have other effects. If you go this route you simply include the business income and expenses on Schedule C as part of your individual return on 1040, and the net SE income is included along with your other income (if any) in computing your tax. TurboTax or similar software should handle this for you, although you may need a premium version that costs a little more. You can 'elect' to have the LLC taxed as a corporation by filing form 8832, see https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc . In principle you are supposed to do this when the entity is 'formed', but in practice AIUI if you do it by the end of the year they won't care at all, and if you do it after the end of the year but before or with your first affected return you qualify for automatic 'relief'. However, deciding how to divide the business income/profits into 'reasonable pay' to yourself versus 'dividends' is more complicated, and filling out corporation tax returns in addition to your individual return (which is still required) is more work, in addition to the work and cost of filing and reporting the LLC itself to your state of choice. Unless/until you make something like $50k-100k a year this probably isn't worth it. 1099 Reporting. Stripe qualifies as a 'payment network' and under a recent law payment networks must annually report to IRS (and copy to you) on form 1099-K if your account exceeds certain thresholds; see https://support.stripe.com/questions/will-i-receive-a-1099-k-and-what-do-i-do-with-it . Note you are still legally required to report and pay tax on your SE income even if you aren't covered by 1099-K (or other) reporting. Self-employment tax. As a self-employed person (if the LLC is disregarded) you have to pay 'SE' tax that is effectively equivalent to the 'FICA' taxes that would be paid by your employer and you as an employee combined. This is 12.4% for Social Security unless/until your total earned income exceeds a cap (for 2017 $127,200, adjusted yearly for inflation), and 2.9% for Medicare with no limit (plus 'Additional Medicare' tax if you exceed a higher threshold and it isn't 'repealed and replaced'). If the LLC elects corporation status it has to pay you reasonable wages for your services, and withhold+pay FICA on those wages like any other employer. Estimated payments. You are required to pay most of your individual income tax, and SE tax if applicable, during the year (generally 90% of your tax or your tax minus $1,000 whichever is less). Most wage-earners don't notice this because it happens automatically through payroll withholding, but as self-employed you are responsible for making sufficient and timely estimated payments, and will owe a penalty if you don't. However, since this is your first year you may have a 'safe harbor'; if you also have income from an employer (reported on W-2, with withholding) and that withholding is sufficent to pay last year's tax, then you are exempt from the 'underpayment' penalty for this year. If you elect corporation status then the corporation (which is really just you) must always make timely payments of withheld amounts, according to one of several different schedules that may apply depending on the amounts; I believe it also must make estimated payments for its own liability, if any, but I'm not familiar with that part.",
"title": ""
},
{
"docid": "29bee6cf3c5e3539af8867ea50a27cef",
"text": "It is a bit of work and expense to form a LLC. In the long run it is the best approach because it shields your personal assets from business liability. In the short run, you can form as a sole proprietor and operate that way, and later convert to a LLC.",
"title": ""
},
{
"docid": "ae96ebf7c42b5aa8611e7c1b9890c299",
"text": "First - get a professional tax consultation with a NY-licensed CPA or EA. At what point do I need to worry about collecting sales taxes for the city and state of New York? Generally, from the beginning. See here for more information on NYS sales tax. At what point do I need to worry about record-keeping to report the income on my own taxes? From the beginning. Even before that, since you need the records to calculate the costs of production and expenses. I suggest starting recording everything, as soon as possible. What sort of business structures should I research if I want to formalize this as less of a hobby and more of a business? You don't have to have a business structure, you can do it as a sole proprietor. If you're doing it for-profit - I suggest treating it as a business, and reporting it on your taxes as a business (Schedule C), so that you could deduct the initial losses. But the tax authorities don't like business that keep losing money, so if you're not expecting any profit in the next 3-4 years - keep it reported as a hobby (Misc income). Talk to a licensed tax professional about the differences in tax treatment and reporting. You will still be taxed on your income, and will still be liable for sales tax, whether you treat it as a hobby or as a business. Official business (for-profit activity) will require additional licenses and fees, hobby (not-for-profit activity) might not. Check with the local authorities (city/county/State).",
"title": ""
},
{
"docid": "ee166c86d628d6354e45e2b491d31a0f",
"text": "You should be careful about mingling your personal money and that of the business, even if it is a sole prop right now. It is a good habit to keep separate business and personal bank/credit accounts just so that when you change to an LLC, it is simpler for you to separate what belongs to the company and what is yours personally. What you're doing makes it more difficult (although only marginally so) to itemize business deductions that were paid with an ostensibly personal credit account. The better habit to get into now is keeping that distinct separation between personal and business. That being said, there's nothing illegal in what you're doing, but it would make an accountant cringe, that's for sure. (chuckle) Hope this helps. Good luck!",
"title": ""
}
] |
fiqa
|
efebcf7a554eeb9d76ed081b900d5310
|
Can I open a personal bank account with an EIN instead of SSN?
|
[
{
"docid": "765e60af2e9d1a54d09edc1026346916",
"text": "\"According to IRS Publication 1635, Understanding your EIN (PDF), under \"\"What is an EIN?\"\" on page 2: Caution: An EIN is for use in connection with your business activities only. Do not use your EIN in place of your social security number (SSN). As you say your EIN is for your business as a sole proprietor, I would also refer to Publication 334, Tax Guide for Small Business, under \"\"Identification Numbers\"\": Social security number (SSN). Generally, use your SSN as your taxpayer identification number. You must put this number on each of your individual income tax forms, such as Form 1040 and its schedules. Employer identification number (EIN). You must also have an EIN to use as a taxpayer identification number if you do either of the following. Pay wages to one or more employees. File pension or excise tax returns. If you must have an EIN, include it along with your SSN on your Schedule C or C-EZ as instructed. While I can't point to anything specifically about bank accounts, in general the guidance I see is that your SSN is used for your personal stuff, and you have an EIN for use in your business where needed. You may be able to open a bank account listing the EIN as the taxpayer identification number on the account. I don't believe there's a legal distinction between what makes something a \"\"business\"\" account or not, though a bank may have different account offerings for different purposes, and only offer some of them to entities rather than individuals. If you want to have a separate account for your business transactions, you may want them to open it in the name of your business and they may allow you to use your EIN on it. Whether you can do this for one of their \"\"personal\"\" account offerings would be up to the bank. I don't see any particular advantages to using your EIN on a bank account for an individual, though, and I could see it causing a bit of confusion with the bank if you're trying to do so in a way that isn't one of their \"\"normal\"\" account types for a business. As a sole proprietor, there really isn't any distinction between you and your business. Any interest income is taxable to you in the same way. But I don't think there's anything stopping you legally other than perhaps your particular bank's policy on such things. I would suggest contacting your bank (or trying several banks) to get more information on what account offerings they have available and what would best fit you and your business's needs.\"",
"title": ""
}
] |
[
{
"docid": "2e8d2a6fc48ad0b5eb36446712f21708",
"text": "set up a US company (WY is cheap and easy), go south and open a personal and business bank account, ask for the itin form. file for the itin. set up your EIN for the company. get a credit card for both. pay some mail forwarding service with it. file for taxes in the next year using your itin. prepaid cards do not link to your tax id",
"title": ""
},
{
"docid": "4e7d074138d08232e36f451e8793bc49",
"text": "I had to open a bank account in the US without having the right paperwork initially (SSN really). All the bank asked me to do was fill in a W8 form in lieu (instead) of the social security number.",
"title": ""
},
{
"docid": "ac312006d6f1c199884fac1886a4e1fc",
"text": "The LLC will not be liable for anything, it is disregarded for tax purposes. If you're doing any work while in the US, or you (or your spouse) are a green card holder or a US citizen - then you (not the LLC) may be liable, may be required to file, pay, etc. Unless you're employing someone, or have more than one member in your LLC, you do not need an EIN. Re the bank - whatever you want. If you want you can open an account in an American bank. If you don't - don't. Who cares?",
"title": ""
},
{
"docid": "3971966a0f7a37feebc830ddfeaeca7c",
"text": "Yes. But once you chose the method (on your first tax return), you cannot change it without the IRS approval. Similarly the fiscal year. For individuals, I can't think of any reason why would accrual basis be better than cash, or why would an individual use a fiscal year other than the calendar year.",
"title": ""
},
{
"docid": "662b511141c68f3a8cd19f8578583ac5",
"text": "You definitely do not need human interaction to open an account at Schwab. You just need to provide a social security number and US drivers license. See http://www.schwab.com/public/schwab/investing/accounts_products/accounts/brokerage_account You can do it online or through the mail. They usually have some questions about your level of experience with investing. They are required to ask these questions to ensure that you don't get confused and put your money in inappropriate investments.",
"title": ""
},
{
"docid": "d7b4f03d1e0956ca87f51146a917da16",
"text": "I like Quicken for personal use, and they have a small business edition if you don't want to move into QuickBooks.",
"title": ""
},
{
"docid": "4cba1a460e187020b96edac475da3e0b",
"text": "That information is the only way to get money wired directly into your account so you don't have a lot of options. You should be reasonably comfortable giving out that information as there checks and balances (as noted above) but more than this the banks tend to err on the side of avoiding a PR nightmare if someone uses routing/account to defraud their customer. For bank security you should be more concerned about a) your credit card, only use secure https sites and ones you can see are dealing with lots of customers b) your identity, someone with your social security number, a recent bank statement and some basic information about you (like family, birth location etc) can assume your identity c) your bank login, be sure to create a strong password, pref 10 characters or more with numbers, symbols and upper & lower case. A site like http://strongpasswordgenerator.com/ can help here.",
"title": ""
},
{
"docid": "2d61bf1d4e8b08b9aaf595b477ac1554",
"text": "No.just give your social security number and contact info, that's all that's needed.",
"title": ""
},
{
"docid": "6e1530ecf31d7428453dc1e107cfef73",
"text": "According to the IRS: Aliens who are not eligible to apply for a U.S. social security number, or who do not meet the Social Security Administration's evidence requirements for an SSN, may apply for an Individual Taxpayer Identification Numbers (ITIN) from the Internal Revenue Service if they have a valid tax reason for needing an ITIN, as explained in the Form W-7 instructions. Seeing as you don't have a valid tax reason for an ITIN, your request will probably be denied by the IRS.",
"title": ""
},
{
"docid": "740d8e0a2249a2c05d5a40d2d206cf3c",
"text": "I don't know if it's legal but your talking about arbitraging the rates between a personal savings account and a business account. I also don't know those rates but will venture to guess that they are not materially different, after taking into account the cost of setting up and registering an LLC, for it to be worth the time and effort.",
"title": ""
},
{
"docid": "28e1f72ba698af26332cbfc0cb7960dc",
"text": "Do you write checks? You are giving your bank account and routing number to anybody you have ever given a check to. Your employer is paying taxes on your behalf, so they need your social security number so they can pay your social security taxes. Account and routing numbers are how deposits are made. If you are concerned, create a free checking account, collect the direct deposit and each payday go to the bank and withdraw your money to put it where you like. Nothing is deposit only because you will want your money back. Finally, you would be shocked at how little it takes to make a draft on your account in the US. Certainly not your SSN, Address, or even your name.",
"title": ""
},
{
"docid": "5b28e315b2bebc5522b126396f8d62c5",
"text": "\"Yes, kinda. Talk to local banks about a business account, and tell them you want to enable certain employees to make deposits but not withdrawals. They don't need to know you're all the same person. For instance I have a PayPal account for business. These allow you to create \"\"sub accounts\"\" for your employees with a variety of access privileges. Of course I control the master account, but I also set up a \"\"sub account\"\" for myself. That is the account I use every day.\"",
"title": ""
},
{
"docid": "1ca195738fbc2504e5084cc0a60951cd",
"text": "\"Open a personal account to link SQUARE with, open a savings account with same bank. Register as \"\"PERSONAL USE\"\", make as many transactions you want for whatever you want $5.00 to $1,000.00 or more, you get paid, square collects a fee. Money is in your \"\"personal account\"\" in 24 hrs, transfer it to your savings acct. 2 years now no issue. I've done the EIN, vendors license, registering business crap, if you work for yourself for private citizens it's none of anyone else's concern.\"",
"title": ""
},
{
"docid": "5ee9f8d91bf9c6edf84fc8a1577ed745",
"text": "Instead of SSN, foreign person should get a ITIN from the IRS. Instead of W9 a foreigner should fill W8-BEN. Foreigner might also be required to file 1040NR/NR-EZ tax report, and depending on tax treaties also be liable for US taxes.",
"title": ""
},
{
"docid": "49bf63270abac9fac8d2ea74065f4246",
"text": "Why do you say we need a national ID? IMO we're in this mess not because we needed a nation ID, but because it was easier/cheaper to just use an SSN for identification instead of the plethora of other options we already have at the state level.",
"title": ""
}
] |
fiqa
|
99820afc2bf7d7c9e9361b8a4b02421f
|
Why are bank transactions not instant?
|
[
{
"docid": "5b2fe2d74750a319ba7f3e89da773762",
"text": "\"If you want your bank to pay $1 to a beneficiary Bob, then the service (no matter how implemented) needs to result in Bob's bank saying to Bob \"\"Hey, I owe you $1\"\". The usual way how this is done consists of two parts - your bank needs to somehow tell Bob's bank \"\"hey guys, do us a favor and please give Bob $1 with a message from the sender\"\", and your bank needs to convince the other bank that they'll pay for (cover) that. This is the main source for the delays in international payments - there are thousands of banks, and most of possible pairs have no legal contact between themselves whatsoever, no bilateral agreements, no trust and no reasonable enforcement mechanism for small claims. If I'm Bob's bank, then a random bank from anywhere from Switzerland to Nigeria can send me an instruction \"\"give Bob $1, we'll make it up for you\"\", the SWIFT network is a common way of doing this. However, most likely I'm going to give Bob the money only after I receive the funds somehow, which means that they have given the money to some institution I work with. For payments within a single country, it often is a centralized exchange or a central bank, and the payment speed is then determined by the details of that particular single payment network - e.g. UK Faster Payments or the various systems used in USA. For international payments, it may require a chain of multiple intermediaries (correspondent banks) - for example, a payment of $1mm from Kazakhstan to China will likely involve the Kazakhstan bank asking their main correspondent in USA (some major bank such as Chase JPMorgan) to give the money to the relevant chinese bank's correspondent in USA (say, Citi) to then give the money to that chinese bank to then give the money to the actual recipient. Each of those steps can happen because those entities have bilateral agreements, trust and accounts with each other; and each of those steps generally takes time and verification. If you want all payments to happen instantly, then you need all institutions to join a single binding payment system. It's not as easy as it sounds, as it is a nightmare of jurisdiction - for example, if you'd want me (as Bob's bank) to credit Bob instantly, then the system needs to provide solid guarantees that I would get paid even if (a) the payer institution changes its mind, made a mistake or intentional fraud; (b) the payer institution goes insolvent; (c) the system provider gets insolvent. Providing such guarantees is expensive, they need to be backed by multi-billion capital, and they're unrealistic to enforce across jurisdictions (e.g. would an Iranian bank get recourse if some funds got blocked because of USA sanctions). The biggest such project as far as I know is SEPA, across most of Europe. Visa and MasterCard networks perform the same function - a merchant gets paid by the CC network even if the payer can't pay his CC bill or the paying bank goes insolvent.\"",
"title": ""
},
{
"docid": "ef1c7c2a0da5d0c4d348db3446d4e5be",
"text": "It is a rather complex system, but here is a rough summary. Interbank tranfers ultimately require a transfer of reserves at the central bank. As a concrete example, the bank of england system is the rtgs. Only the clearing banks and similar (e.g. bacs) have access to rtgs. You can send a chaps payment fairly quickly, but that costs. Chaps immediately triggers an rtgs transfer once the sending bank agrees and so you can be certain that the money is being paid. Hence its use for large amounts. Bacs also sits on the rtgs but to keep costs down it batches tranfers up. Because we are talking about bank reserve movements, checks have to be in place and that can take time. Furthermore the potential for fraud is higher than chaps since these are aggregrated transactions a layer removed, so a delay reduces the chance of payment failing after apparently being sent. Faster payments is a new product by bacs that speeds up the bacs process by doing a number of transfers per day. Hence the two hour clearing. For safety it can only be used for up to 10k. Second tier banks will hold accounts with clearing banks so they are another step down. Foreign currency transfers require the foreign Central Bank reserve somewhere, and so must be mediated by at least one clearing bank in that country. Different countries are at different stages in their technology. Uk clearing is 2h standard now but US is a little behind I believe. Much of Europe is speeding up. Rather like bitcoin clearing, you have a choice between speed and safety. If you wait you are more certain the transaction is sound and have more time to bust the transfer.",
"title": ""
}
] |
[
{
"docid": "ffd1a93e5ba8df50304b578f7aee6402",
"text": "As far as I can see, this is an issue of the bank's policy rather than some legal regulation. That means that you'll need to work it out with the bank. To give you a couple of ideas to work with when you talk with them, maybe something from this list will work: Good luck!",
"title": ""
},
{
"docid": "ac39145c842a2f524bf52e9ad797b4ec",
"text": "\"Quite a few Bank in India allow Funds Transfer via ATM. One has to first register the beneficiary account and wait for 24 hrs before transacting. However it looks like \"\"Indian Bank\"\" currently does not offer this service. You can call up Indian Bank and ask if they provide this service. Alternativly use the Internet Banking to transfer funds to CitiBank or any other Bank in India.\"",
"title": ""
},
{
"docid": "b28c2b7e080f6e38428d65d2bbb39ce5",
"text": "You mentioned BoA. I have had BoA accounts for about ten years. All of my transfers between accounts are immediate. I have never had to wait with BoA. Scottrade Accounts are the worst in this respect. Once I had to wait 8 days. PayPal come in a close second for making you wait.",
"title": ""
},
{
"docid": "d75920d84097b33a1bc7c02b04354336",
"text": "\"At this point, a great deal of the world's wealth exists only in electronic form, and just as you can write a check or pay by debit card and trust the banks will handle it, banks can conduct wire transfers\"\" through higher-level banking networks. In the US, when there is a need to convert physical money to electronic or vice versa, it is typically handled by armored car and armed guard transfer between a bank and the local Federal Reserve Bank office. Physical money is moved around only when necessary, and for as short a distance as possible, to the most secure facilities possible, to minimize risk. I can't vouch for how it's managed elsewhere in the world, where the networks and repository banks may not be as available. I would presume (I would hope!) that the same general concepts and approaches are followed.\"",
"title": ""
},
{
"docid": "de5b3b9faab2ae254ca546bb6740d4e1",
"text": "In the US, paper checks are still the rule, and there is a large amount of the population that does not care to use online banking. As a result, those people need to go to the bank once a week or more often, to deposit checks they get from anywhere, to get cash, etc.; so all those little banks have traffic. This is slowly changing, and banks start to automatic the processes even in the brick-and-mortar location, but for now, they are around.",
"title": ""
},
{
"docid": "e77a1e994c475bcb9e126a374154e32d",
"text": "From http://en.wikipedia.org/wiki/Wire_transfer: The entity wishing to do a transfer approaches a bank and gives the bank the order to transfer a certain amount of money. IBAN and BIC codes are given as well so the bank knows where the money needs to be sent. The sending bank transmits a message, via a secure system (such as SWIFT or Fedwire), to the receiving bank, requesting that it effect payment according to the instructions given. The message also includes settlement instructions. The actual transfer is not instantaneous: funds may take several hours or even days to move from the sender's account to the receiver's account. Either the banks involved must hold a reciprocal account with each other, or the payment must be sent to a bank with such an account, a correspondent bank, for further benefit to the ultimate recipient. Banks collect payment for the service from the sender as well as from the recipient. The sending bank typically collects a fee separate from the funds being transferred, while the receiving bank and intermediate banks through which the transfer travels deduct fees from the money being transferred so that the recipient receives less than what the sender sent. The last point may not be relevant in domestic transfers.",
"title": ""
},
{
"docid": "73851022abdb3f0a43549072dcdda4a5",
"text": "This really should be a comment, but I can't yet. The question desperately needs a location tag. In at least some countries(New Zealand), the default action on all insufficient funds transactions is to refuse the transaction. Credit cards are the only common exception. Every bank operating in NZ that I know of acts this way. Sometimes there is a fee for bouncing a transaction, sometimes not, that depends on the bank. Any other option must be explicitly arranged in writing with the bank. Personally, coming from a country where declining transactions is the default, I'd be shocked and angry to be stuck with an automatic transfer from another account. Angry enough to change banks if they won't immediately cease and desist.",
"title": ""
},
{
"docid": "7252370787b0eb06f8699bd008627e83",
"text": "\"Most of your money doesn't exist as physical cash, but simply as numbers in a ledger. At any given time, banks expect their clients to withdraw a certain percentage of their balances... For instance, checking accounts are frequently drawn down to zero, savings accounts might be emptied once our twice a year, CDs are almost never withdrawn, etc. To cover those withdrawals, banks keep a certain amount of physical cash on hand, and an additional amount remains on the ledgers. The rest gets loaned out to their customers for use in buying homes, cars, credit cards,etc. Anything they can't loan out directly gets deposited with the federal reserve or loaned directly to other institutions who need it. However, those last two options tend to be short term (ie overnight) loans. With debit cards functioning 24/7, you could get cash at an atm or make a purchase anytime of the day our night. The weekend has nothing to do with it. Which is a long way of saying \"\"No, they do it all the time, not just on weekends\"\" ;)\"",
"title": ""
},
{
"docid": "21abd7c81ac52b7456f391cab37c1f7c",
"text": "\"When Laurence Olivier took the role of Douglas Macarthur in the Unification Church's filming of Inchon, he told the press, \"\"People ask me why I'm playing in this picture. The answer is simple: Money, dear boy.\"\" Banking systems are typically decades old and subject to innumerable legal and technical restrictions. Moving money more quickly from one client's account to another would definitely be in the clients' interest, but\"",
"title": ""
},
{
"docid": "9b1a6b86eaca734d1f2275ac71100bf2",
"text": "A bank is unlikely to provide a 'command line' interface because typical users consider a graphical interface easier to use than a command line interface. The extra effort in providing a command line interface for the remaining handful of people isn't worth it. It's the same reason that everything else in the world has a point and click interface. Command line-like features, such as easy repetition and keystroke shortcuts are also unlikely to implemented for the same reasons. They are hard to implement in a web interface, and most people aren't interested in them. Most people have only a few accounts and don't need to download multiple files on a frequent basis. They do typically provide link shortcuts to commonly used features. However all online banking works by implementing the HTTP protocol in some way. You should be able to deduce the HTTP transactions necessary to get the information you want, and implement your own 'command-line'style' interface, or any other interface you want. That won't be easy, especially since you will almost certainly have to implement the security protocols too, but it should be possible.",
"title": ""
},
{
"docid": "1d9d3121a57a654f46a39ca379ab12ec",
"text": "Those fields are used in a bank-to-bank transfers that do not use SWIFT. SWIFT is a messaging system, however with the fields you have listed, banks can exchange messages directly without having to use SWIFT. Your bank may not support bank-to-bank transfers, in which you need to notify your client that it needs to be a SWIFT transfer.",
"title": ""
},
{
"docid": "5b213dd622dfb92ca43339dad0d9a256",
"text": "\"Your bank is maintaining different states for transactions, and changing the state depending on real-world events and the passage of time. withdraw €100 from my bank account on 30 September […] my bank does not process the transaction until 2 October. The bank probably have that transaction marked as “pending” on 30 September, and “cleared” on 2 October. transfer €100 from Bank A to Bank B, Bank A's statement dates the transaction on 20 September, but Bank B dates it as coming in on 22 September. Similarly, bank A will have the transaction marked as “pending” initially. Bank B won't have a corresponding transaction at all, until later; they'll have it “pending” too, until they confirm the transfer. Then (probably at different times from each other) the banks will each mark the corresponding transactions “cleared”. The bookkeeping software that I use doesn't seem to allow for this \"\"transfer time\"\" between accounts. When I enter a transfer from one account to another, they both have to have the same date. You may want to learn about different bases of accounting. The simpler option is “cash-based” accounting. The simplification comes from assuming transactions take no time to transfer from one account to another, and are instantly available after that. Your book-keeping software probably books using this simpler basis for your personal finances. The more complex “accrual-based” accounting tracks each individual transaction through multiple states – “pending”, “transfer”, “cleared”, etc. – with state changes at different times – time of trade, time of settlement, etc. – to more accurately reflect the real world agreements between parties, and different availability of the money to each party. So if your book-keeping program uses “cash basis”, you'll need to pick which inaccuracy you want: book the transfer when you did it, or book the transfer when the money is available at the other end.\"",
"title": ""
},
{
"docid": "aa91763d3069df0a5cadff629dfd558f",
"text": "\"The second part of your question is the easiest to answer, how much manual work is involved in settlement processes? Payment systems which handle low value (i.e. high volume) transactions work on the basis of net settlement. Each of the individual payments are netted across all of the participant banks, so that only one \"\"real\"\" payment is made by each bank. Some days banks will receive money, others they will pay money. This is arbitrary and depends on whether their outbound payments exceed their inbound payments for that day. The payment system will notify each Bank how much it owes/will receive for the day. The money is then transferred between all of the banks simultaneously by the payment system to remove the risk that some pay and others don't. If you're going to make or receive a very large payment, you're going to want to make certain that its correct. This means that if there's a discrepancy, you need operations people available to find out why its wrong. When dealing with this many payments, answering that question can be hard. Did we miss a payment? Is there a duplicate? Etc. The vast majority of payments will process without any human involvement, but to make the process work, you always need human brains there to fix problems that occur. This brings me to your first question. On every day that settlement happens, a bank will receive (or pay) a very large sum of money. As a settlement bank you must settle that money - the guarantee that every bank will pay is one of the main reasons these systems exist. For settlement to happen, every bank has to agree to participate, and be ready to verify the data on their side and deliver the funds from their account. So there is no particular reason that this doesn't happen on weekends and holidays other than history. But for any payment system to change, it would require the support of (at least) a majority of participants to pay staff to manage the settlement process on weekends. This would increase costs for banks, but the benefits would only really be for you and me (if at all). That means it's unlikely to happen unless a government forces the issue.\"",
"title": ""
},
{
"docid": "22ebd7649dae4fb9b7b0fa94559c5e37",
"text": "\"Banks don't generally \"\"Post\"\" transactions on Friday-Sunday, meaning any transfers made on those days don't show up until someone processes it on Monday. I would expect the money to show today, and call your bank tomorrow if it doesn't.\"",
"title": ""
},
{
"docid": "237b046a1a504aac7ff28b5d4f68910b",
"text": "lol- yeah, I know how banks work. My point is EVERY transaction should be recorded somewhere. Banks have both internal and external auditors who's only job it is to monitor the transactions to make sure everything adds up. It just doesn't make sense that the CEO of the company would have so little idea of what is going on. Shades of Enron to me.",
"title": ""
}
] |
fiqa
|
cff0c34d949d0893eda0e75abdccc3ce
|
What is network marketing?
|
[
{
"docid": "fb3a3205e06594a75de89afa5d37a8e8",
"text": "\"Network Marketing (also called multi-level marketing) isn't necessarily a skill that you learn in a course. It's a type of business model that's used by companies like Avon, Southern Living, Mary Kay, etc. It's also used in many scams (called pyramid schemes, but the aforementioned companies are using the pyramid structure, too). A lot. See here for a high-level explanation (pay attention to the pyramid scheme bit): http://www.entrepreneur.com/encyclopedia/network-marketing If you want to get into a Network Marketing venture, join a reputable company and start doing it. They will provide you with all of the training you need. Your \"\"manager\"\" will make money based on how well you do. If you can in turn recruit other individuals to start selling, then you make money off their sales, and you \"\"manager\"\" makes money off their sales. Hence the pyramid label. Reputable companies charge very little to join, you set your own schedule, and don't have any hard quotas to live up to. Do your research! If they make you a promise that sounds too good to be true, it is.\"",
"title": ""
}
] |
[
{
"docid": "1dbc96b0f6e218edcbb70e4a349ba79a",
"text": "\"hi OP -- first, MLM means \"\"multi level marketing\"\" not Mid Level Management. for a great description of multi level marketing, check out the Herbalife documentary \"\"Betting On Zero\"\" on Netflix second, any group that goes on and on about We Are Not A Pyramid Scheme is unfortunately a red flag for a pyramid scheme. i am so sorry to say this because i bet it sounds like a fantastic opportunity in the sales pitch they give you. third, check out this review -- https://getoutofdebt.org/16566/investigative-report-dave-burke-and-real-talk-network-real-talk-network-inc may i ask, did you give these guys your credit card information? you might want to check right now to see if they dinged you. sounds from the article like these guys are doing some really shady stuff, i hope you don't get ripped off edited: words\"",
"title": ""
},
{
"docid": "dbf4eadf4e8cdb0f35d9a121e65cde8c",
"text": "If you are looking e-mail marketing services in USA, Saleglue provides e-mail marketing services in USA . E-mail marketing is perform of seanding business massgae classically to a group of people, using email. Every email send to a possible or present customer could be considered email marketing. http://www.saleglue.com/",
"title": ""
},
{
"docid": "8909082c87f6c7ba62cc7775a52bf7d3",
"text": "Starting with the basics, you have the sell side (investment banks, Goldman Sachs) and the buy side (asset managers, Blackrock). The buy side are the clients of the sell side, directing trade flow through banks and using their research and taking part in origination and new issues. Basically both are currently under structural pressure from passive investing combined with new technology and regulation (MIFID 2 in Europe).",
"title": ""
},
{
"docid": "e6937176ab71010e2d52ff610e08bd81",
"text": "Read any article that's linked to from Facebook or Twitter, that is advertising. I don't know what hole you've crawled out of but digital marketing spending is passing traditional media. More and more companies are using social media marketing and content marketing in their overall plans. Social Media is not dead, it's just beginning to grow if anything.",
"title": ""
},
{
"docid": "fce9ff8fc45db7863f7bbb60033fee55",
"text": "I don't think it's hard but definitely not easy either. It is very time consuming. The hardest things is about how to apply the abstract strategies as example link building. You will learn the difference between links, how to get a backlink and etc. The problem is that you need most of the times to be creative and make your own strategy because sometimes that same strategy that you learn won't work in this case. So because of that I believe you need a good amount of knowledge to know how to adapt and always make the most efficient strategy for that case. Digital marketing have a lot to learn and different niches. I would suggest you to pick one (SEO, SMM, PPC, SEM, email marketing, content marketing, video producing, Youtube marketing, influencer marketing, reputation management and more..) Those one are some of the most popular but we have way more and many niches inside them. What I suggest is to choose one of them and found a good source of knowledge to learn. The problem to learn by yourself is that it will take time to filter what is good and what is not. And mostly people will give you a bad but baiting content in order to sell you something in this market. So be careful with scammers. Hope it helped.",
"title": ""
},
{
"docid": "db5024ed1631b2333a20b46f5b8b1237",
"text": "If you're selling a product of actual value, and willing to do the recruiting hustle then a Network Marketing Scheme might work out for you. If you can't make money just selling the product, or it's not a product you'd support I would stay far away. In the US, it is my understanding that MLM is legal if your earnings can surpass your sponsor's. Disclaimer: I did Quixtar (Amway online) in college. But I didn't succeed because I didn't nag all my family and friends to join nor hustle the products. I have met folks who have actually done well with it, and I think without really screwing anyone else over.",
"title": ""
},
{
"docid": "c7f8fae58ed9d42f874ceb15dccf7c23",
"text": "Email list brokers are valuable tools to make use of, specially if you are a small business owner or marketing consultant. A list broker is an expert who acts as an agent for individuals or enterprise that want to need direct marketing as a way to attain prospective customers.",
"title": ""
},
{
"docid": "00e6ce85332f6b12c961af4e58eb402e",
"text": "\"The geniuses behind this \"\"infographic\"\" are part of a marketing industry trend that aims to exploit social media as a free advertising medium, period. Reddit is difficult to advertise for free on, and the writer of this blog post admits to this. In an attempt to be more clever than all the other \"\"social media experts\"\" out there, they are making the claim that a marketer can get on Reddit, establish a presence as a redditor, then start shilling. These claims are not only impossible to verify, but the effort it would take to do something like this just to do marketing seems like a bad investment. In addition to the things they mention on their little chart, redditors do not like being manipulated by marketers and would downvote at best and get you banned at worst. Unless there is something about Reddit that I don't know, which is certainly a possibility.\"",
"title": ""
},
{
"docid": "d92d75a7462308c90350e1011da67305",
"text": "There is no contradiction that social networks are an important part of the brand, and when you buy Instagram Follower and I like it, you can push your business to the next level. Buy followers and I like Instagram that help make your business and your reputation grow faster than ever. Instagram is a social networking platform that allows users to share content only with images. This is a motivating concept for companies simply because the images allow you to keep your logos and services much more chromatic.",
"title": ""
},
{
"docid": "05fc16e3ee148e7a941bae8ccd42536d",
"text": "Really, the only way to develop meaningful relationships of any kind (personal/business/etc) is to interact with people directly in a shared context. If you don't have any professional interaction with them through your/their business, then you're left to social/personal things -- play tennis together at a club, golf together, work out at a gym together, meet at charity events, attend social gatherings, etc. Executives are people too. Think about it -- how would you want someone to approach you? Some random guy sending mail/email to a bunch of people with your same job title hoping to make a contact for entirely selfish reasons (i.e. getting a job, selling a product/service, whatever) is not going to look attractive to you -- you're just going to ignore it because there's no personal connection, no reason to care. For all intents and purposes, you may as well be talking about an unsolicited ad from Comcast for TV service you don't need. In general, I'd go back to the drawing board. What exactly are you trying to accomplish here? Are you trying to sell a startup/project you've been working on? Are you trying to find a shortcut to a high-paid job? Revisiting your objective will give you the recipe to more effectively approach it. **TL;DR** -- Sending spam to executives is not an effective way of networking. It is a good way to identify yourself as an undesirable contact, however.",
"title": ""
},
{
"docid": "886c959f012de7e3810b9931cd7312f9",
"text": "Most of the responses to your networking question are posed in a negative light. Flip it on it's head- be positive about your potential connections. I have personally gotten in touch with some of my billionaire heroes by doing something simple. Not easy, but simple. I added **value** for them. How can you add value for a billionaire? Put yourself in their shoes. The ones I reached out to are professional investors- what I also enjoy- and so I went about looking through the investments they own, etc. and found ways to add value. Hope that helps.",
"title": ""
},
{
"docid": "378f092626197ad82e9c6e67655828ae",
"text": "Network. Network. Network. I got a job out of college on the buy side from being an intern. An Alum I found through networking said they had an extra desk on the floor and told me to come spin my wheels until I found a job. Three months later, that job was on their fixed income desk. It's rare, but it can absolutely happen",
"title": ""
},
{
"docid": "054ecd42afa51caf2182f0869bccc846",
"text": "Ok thanks for this. I am curious, how would they know its facebook that is directing these increased sales. If it's TV or radio, you can tell by increased revenues from increased spots. But for a facebook ad or a google ad, unless this is the only form of marketing, how are you sure (unless again you can ask, did you hear from us by google or fb) its from one of these websites. My thinking was for a physical product when i made this comment.",
"title": ""
},
{
"docid": "de69357a9ad450e0885a5def2857552a",
"text": "\"You need \"\"the list\"\". Write down EVERYONE you know. EVERYONE. Like, EVERYONE. Then categorise their potential as a customer as \"\"high\"\" \"\"avg\"\" or \"\"low\"\". Then make contact with all the low hanging fruit. Most will naturally ask what you're doing, you'll tell them, and you'll plant a lot of seeds. Some will germinate soon, some will take years, some will refer, some will not. People need to know what you can offer and the best place to start is with people you know.\"",
"title": ""
},
{
"docid": "fb97a767493891c650c77004680de96b",
"text": "I am selling in an idea. We are running a concierge MVP to test the insight behind an idea before going into development. Essentially what the meeting will involve is me offering the brand some free market research. Wow, never posted on /r/business before... negative community?",
"title": ""
}
] |
fiqa
|
3788c86bcbbef86ad5fbfd79abc611eb
|
Can I claim mileage for traveling to a contract position?
|
[
{
"docid": "039519230ab375aea3fdd45fc09a3a49",
"text": "\"The short answer is yes you can, but you have to make sure you do it correctly. If you are employed by a tech company that does contract work at a separate location and you don't get reimbursed by your employer for travel expenses, you can claim the mileage between your home and location B as a business expense, but there's a catch - you have to subtract the mileage between your home and location A (your employer). So if it's 20 miles from your house to your employer (location A), and 30 miles from your house to the business you're contracting at (location B), you can only claim 10 miles each way (so 20 miles total). Obviously if the distance to location B is closer than your employer (location A), you're out of luck. You will have to itemize to take this deduction, by filling out a Schedule A for itemized deductions and Form 2106 to calculate how much of a deduction for travel expenses you can take. Google \"\"should i itemize\"\", if you're unsure whether to take the Standard Deduction or Itemize. Sources:\"",
"title": ""
}
] |
[
{
"docid": "7f8fdfaf770de8745e3b0fcaa705afcc",
"text": "\"This arrangement is a scam to get around certain tax and benefits laws, both State and Federal. I know they can't get away with this with a person-as-contractor, but this \"\"he's not a contractor, he's a business owner\"\" may move it into a gray area. (I used to know this stuff cold, but I've been retired for a while.) The fact that they asked you to do this is at all is, IMNSHO, a Red Flag®. They think that this way they won't be paying 1/2 your FICA, your Workman's Comp, health insurance, overtime, sick leave or vacation time ... you will. A somewhat simplistic rule of thumb for setting contracting rates is to take your targeted annual salary as a full-time, full-benefits employee and double it. So $50,000 becomes $100,000 a year; $25/hour becomes $50/hour. You can tell them that driving to their workplace from your company's location is now a \"\"site visit\"\" and charge them your hourly rate for the one-way commute time. You could also tell them that your company charges 150% for hours worked over 40 hours/week, plus 150% on Saturdays and 200% on Sundays. Your company may also have a minimum 30 days notice of termination with a penalty kicker. Get it all in writing and signed by someone who has the authority to sign it. Also, Get A Lawyer. The most expensive contracts I've ever signed were ones I thought I was smart enough to draw up myself.\"",
"title": ""
},
{
"docid": "ed2a440591aaa7a4df75c0943e7628ae",
"text": "I'd approach the lender that you're getting the lease from, but be prepared for them either saying 'no' to putting the lease into the name of an LLC without any proven track record (because it hasn't been around for a while) or require you to sign a personal guarantee, which partially defeats the purpose of putting the car lease into the LLC. I'd also talk to an accountant to see if you can't just charge the business the mileage on your vehicle as that might be the simplest solution, especially if the lender gets stroppy. Of course the mileage rate might not cover the expense for the lease as that one is designed to cover the steepest part of the depreciation curve. Does your LLC generate the revenue needed so it can take on the lease in the first place? If it's a new business you might not need or want the drain on your finances that a lease can be.",
"title": ""
},
{
"docid": "077e69dfbbb8d8112c446114db179a4c",
"text": "As a nonresident sole proprietor or partnership You are not a sole proprietor or a member of a legal partnership. You are an employee for a corporation. Does the nature of your work require you to be present in New York regularly? If you are in New York for personal reasons, you are simply telecommuting. You must pay taxes personally for your W-2 income, but your business entity never moved from Wyoming. If this were not true, companies would have to pay corporate income tax to every state in which they have a telecommuter. For example, I live in Florida but telecommute to a company in Michigan. Does my employer pay Florida business tax? Of course not. Your business would only owe New York if the nature of the business requires a consistent and regular business presence in New York, such as maintaining an office for a portion of every year so clients could see you.",
"title": ""
},
{
"docid": "a57851d680f06d0d027cbc370f7c762e",
"text": "I contacted Stephen Fishman, J.D., the author of Home Business Tax Deductions, to let him know that this question was missing from his book. He was kind enough to send a reply. My original phrasing of the question: If your car is used for both business and personal use, and you deduct via the actual expense method, do trips to the mechanic, gas station, and auto parts store to service or repair the car count as business miles, personal miles, or part-business-part-personal miles? What about driving the newly-purchased car home from the dealership? And his response: Good question. I can find nothing about this in IRS publication or elsewhere. However, common sense would tell us that the cost of driving to make car repairs should be deductible. If you use your car for business, it is a business expense, just like transporting any other piece of business equipment for repairs is a business expense. This should be so whether you use the standard mileage rate or actual expense method. You should probably reduce the amount of your deduction by the percentage of personal use of the car during the year. The same goes for driving a car home from the dealer.",
"title": ""
},
{
"docid": "bae6e8d76b98b2ba96a5520be36c2c8f",
"text": "I believe moving reimbursement has to be counted as income no matter when you get it. I'd just put it under miscellaneous income with an explanation.",
"title": ""
},
{
"docid": "5498f94a9a9b67688adc5bf8897be351",
"text": "\"I'm not sure what you mean by \"\"writing off your time,\"\" but to answer your questions: Remember that, essentially, you are a salaried employee of a corporation. So if you are spending time at your job, even if you are not billing anything to a client, you are earning your salary. If there are costs involved with these activities (maybe class fees, a book purchase, or travel expenses), the corporation should be paying the costs as business expenses. However, the logistics of this, whether the corporation writes a business check to the vendor directly, or you put the expenses on a personal credit card and are reimbursed with an expense check from the corporation, don't matter. Your accountant can show you the right way to do this.\"",
"title": ""
},
{
"docid": "c9071f33291146ae94561b8f6f6e5442",
"text": "\"It will count as income, and you can deduct as much of your moving expenses as allowed by tax laws. If you also count it as a reimbursement, then you're double-taxed - once for the income and again by reducing your moving deduction. The \"\"reimbursement\"\" amount is designed for when you get literally reimbursed for exact expenses directly, bypassing the tax on that compensation. The only difference will be that you (and your employer) pay FICA and medicare on the \"\"relocation bonus\"\" that you wouldn't if you were reimbursed. Also, with a reimbursement you are not incentivized to minimize the cost of your relocation (since it's not your money you're spending). With a bonus, since you get to keep whatever is left over, you have a vested interest in keeping your expenses down.\"",
"title": ""
},
{
"docid": "564af3a28334cf6f3e8ea2f0b2241a8c",
"text": "\"For example, for my employer I received a signing bonus, and a \"\"relocation lump sum\"\" separate from that signing bonus. The relocation lump sum is taxed and will appear as income on my W-2, and I can spend it on anything I want. That said, should the relocation lump sum count towards the entry quoted above in Form 3903, or would it be considered the same as any other bonus; thus allowing me to take a full deduction for all of my deductible travel expenses? The signing bonus and relocation lump sum will appear as regular income on your W-2. You can think of the relocation bonus as something to cover the pain and suffering the cost of moving, without needing to send in receipts. Lets assume that you meet the distance and time tests, so there is potential to save money on your taxes. Lets also put your actual moving expenses as $2500. If you have valid moving expenses the IRS will allow you to use them to reduce your AGI. So now you can reduce your AGI by the $2500. Enter the total amount your employer paid you for the expenses listed on lines 1 and 2 that is not included in box 1 of your Form W-2 (wages). This amount should be shown in box 12 of your Form W-2 with code P. My question is: what exact payments from your employer should be entered here? I realize that you can just write the number you get in box 12 with code P on your W-2, but I'm curious how they come up with this number. In some cases the company will reimburse you your moving expenses up to a maximum of $x. For example a maximum of $1000 That means you submit receipts for those expenses and they give you a check or add it to your next paycheck. The check will either be for the amount on your receipts or the maximum amount, whichever is smaller. In this situation with actual expenses of $2500 and a reimbursement of $1000 you can reduce your AGI by $1500.\"",
"title": ""
},
{
"docid": "839bca2b1ee5694acef25c021fb0d2a7",
"text": "As has been mentioned, it's largely up to the landlord. I'm in Texas, USA, and my landlord's payment service permits it, but they charge an exorbitant fee of 22% plus 0.50 in order to do so. My rent is $895/month. If I chose to use a credit card, I pay $1092.40. The miles aren't worth that kind of money.",
"title": ""
},
{
"docid": "19a5eaff889e256c24b4d030e13e7d2c",
"text": "As a general rule, you must choose between a mileage deduction or an actual expenses deduction. The idea is that the mileage deduction is supposed to cover all costs of using the car. Exceptions include parking fees and tolls, which can be deducted separately under either method. You explicitly cannot deduct insurance costs if you claim a mileage deduction. Separately, you probably won't be able to deduct the deductible for your car as a casualty loss. You first subtract $100 from the deductible and then divide it by your Adjusted Gross Income (AGI) from your tax return. If your deductible is over 10% of your AGI, you can deduct it. Note that even with a $1500 deductible, you won't be able to deduct anything if you made more than $14,000 for the year. For most people, the insurance deductible just isn't large enough relative to income to be tax deductible. Source",
"title": ""
},
{
"docid": "6931b28ed497d53fd8dcf1995532c920",
"text": "\"Also within Germany the tax offices usually determine which tax office is responsible for you by asking where you were more than 180 days of the year (if e.g. you have a second flat where you work). That's a default value, though: in my experience you can ask to be handled by another tax office. E.g. I hand my tax declaration to my \"\"home\"\" tax office (where also my freelancing adress is), even though my day-job is 300 km away. So if you work mostly from Poland and just visit the German customer a few times, you are fine anyways. Difficulties start if you move to Germany to do the work at your customer's place. I'm going to assume that this is the situation as otherwise I don't think the question would have come up. Close by the link you provided is a kind of FAQ on this EU regulation About the question of permanent vs. temporary they say: The temporary nature of the service is assessed on a case-by-case basis. Here's my German-Italian experience with this. Background: I had a work contract plus contracts for services and I moved for a while to Italy. Taxes and social insurance on the Italian contracts had to be paid to Italy. Including tax on the contract for services. Due to the German-Italian tax treaty, there is no double taxation. Same for Poland: this is part of EU contracts. By the way: The temporary time frame for Italy seemed to be 3 months, then I had to provide an Italian residence etc. and was registered in the Italian health care etc. system. Due to the German-Italian tax treaty, there is no double taxation. Same for Poland: this is part of EU contracts. Besides that, the German tax office nevertheless decided that my \"\"primary center of life\"\" stayed in Germany. So everything but the stuff related to the Italian contracts (which would probably have counted as normal work contracts in Germany, though they is no exact equivalent to those contract types) was handled by the German tax office. I think this is the relevant part for your question (or: argumentation with the German tax office) of temporary vs. permanent residence. Here are some points they asked: There is one point you absolutely need to know about the German social insurance law: Scheinselbständigkeit (pretended self-employment). Scheinselbständigkeit means contracts that claim to be service contracts with a self-employed provider who is doing the work in a way that is typical for employees. This law closes a loophole so employer + employee cannot avoid paying income tax and social insurance fees (pension contributions and unemployment insurance on both sides - health insurance would have to be paid in full by the self-employed instead of partially by the employer. Employer also avoids accident insurance, and several regulations from labour law are avoided as well). Legally, this is a form of black labour which means that the employer commits a criminal offense and is liable basically for all those fees. There is a list of criteria that count towards Scheinselbständigkeit. Particularly relevant for you could be\"",
"title": ""
},
{
"docid": "ea6ed61741132af22d02342aaef6a5d7",
"text": "\"I recently went full time self employed after doing photography on the side for several years. One of the types I do is real estate photography, but it's tough doing it alone so I signed up to freelance with a company that basically brokers out jobs in the area. They cover close to 70% of the market share so they're big. I now get ten times the work I used to, for less money but the volume and the fact I no longer edit make up for it. However, they made me sign a non compete that says I cannot shoot real estate photography for two years after I leave them. I've always thought that I'd really like to see how enforceable that is since I did real estate for two years before them, they didn't teach me anything new, so what gives them the right to tell me I can't continue doing what I already did just because I'm no longer with them? What kind of bullshit, un-American crap is that? The jokes on them, though, as they apparently don't read their own stuff very well. They told me I'd be allowed to still shoot independently with the agents I worked with prior to freelancing for them if I just wrote them in at the bottom of the non compete so they'd have it for their records. So I did; I specifically named the the big offices I wanted to keep working with (that didn't already use the company I was going to be working with) and also put another line that said \"\"and all current, former, and future clients of my business, xyzabc photography\"\" and they signed off on it and returned a copy to me. Still, the fact that they think they have the right to limit me from doing a career that I already did and received no training from them is so asinine and ridiculous.\"",
"title": ""
},
{
"docid": "168c75be45ba473b7391fb8a0554acb8",
"text": "Not if the bonuses are also on a grid. At my work it's the same way -- you get paid a certain amount for every year of tenure you have at the company (outside experience generally doesn't count) and then the bonus varies depending on how your performance rating goes. Everybody knows what the bonus levels are.",
"title": ""
},
{
"docid": "5c74f6ebcfa8d74bf27aaca0cb828abc",
"text": "\"> The main reason you see so many people in first class is because they earn miles for themselves Yup. My private company allows us to use our own milage accounts when booking company travel, so we earn the miles. I also make heavy use of my Chase sapphire card, that has a 1:1 transfer between card-miles and most airline programs' miles. While I don't travel _often_ for my job, I'm usually on a plane every couple months, at least, and most of the time, I can upgrade to first/business, or at least the \"\"special cattle\"\" rows of coach on my own dime (or miles).\"",
"title": ""
},
{
"docid": "36bc3419347f5ab9a094d1c7d866fbae",
"text": "\"Anything is negotiable. Clearly in the current draft of the contract the company isn't going to calculate or withhold taxes on your behalf - that is your responsibility. But if you want to calculate taxes yourself, and break out the fees you are receiving into several \"\"buckets\"\" on the invoice, the company might agree (they might have to run it past their legal department first). I don't see how that helps anything - it just divides the single fee into two pieces with the same overall total. As @mhoran_psprep points out, it appears that the company expects you to cover your expenses from within your charges. Thus, it's up to you to decide the appropriate fees to charge, and you are assuming the risk that you have estimated your expenses incorrectly. If you want the company to pay you a fee, plus reimburse your expenses, you will need to craft that into the contract. It's not clear what kind of expenses you need to be covered, and sometimes companies will not agree to them. For specific tax rule questions applicable to your locale, you should consult your tax adviser.\"",
"title": ""
}
] |
fiqa
|
39ca4edf3dd668244ae73b9f3ac6af8c
|
When an investor makes money on a short, who loses the money?
|
[
{
"docid": "45d30b6b15c3c64709ec89acf0a3ee0a",
"text": "\"The correct answer to this question is: the person who the short sells the stock to. Here's why this is the case. Say we have A, who owns the stock and lends it to B, who then sells it short to C. After this the price drops and B buys the stock back from D and returns it to A. The outcome for A is neutral. Typically stock that is sold short must be held in a margin account; the broker can borrow the shares from A, collect interest from B, and A has no idea this is going on, because the shares are held in a street name (the brokerage's name) and not A. If A decides during this period to sell, the transaction will occur immediately, and the brokerage must shuffle things around so the shares can be delivered. If this is going to be difficult then the cost for borrowing shares becomes very high. The outcome for B is obviously a profit: they sold high first and bought (back) low afterwards. This leaves either C or D as having lost this money. Why isn't it D? One way of looking at this is that the profit to B comes from the difference in the price from selling to C and buying from D. D is sitting on the low end, and thus is not paying out the profit. D bought low, compared to C and this did not lose any money, so C is the only remaining choice. Another way of looking at it is that C actually \"\"lost\"\" all the money when purchasing the stock. After all, all the money went directly from C to B. In return, C got some stock with the hope that in the future C could sell it for more than was paid for it. But C literally gave the money to B, so how could anybody else \"\"pay\"\" the loss? Another way of looking at it is that C buys a stock which then decreases in value. C is thus now sitting on a loss. The fact that it is currently only a paper loss makes this less obvious; if the stock were to recover to the price C bought at, one might conclude that C did not lose the money to B. However, in this same scenario, D also makes money that C could have made had C bought at D's price, proving that C really did lose the money to B. The final way of seeing that the answer is C is to consider what happens when somebody sells a stock which they already hold but the price goes up; who did they lose out on the gain to? The person again is; who bought their stock. The person would buys the stock is always the person who the gain goes to when the price appreciates, or the loss comes out of if the price falls.\"",
"title": ""
},
{
"docid": "962ea288290efde34f5522ca7d5171a9",
"text": "Michael gave a good answer describing the transaction but I wanted to follow up on your questions about the lender. First, the lender does charge interest on the borrowed securities. The amount of interest can vary based on a number of factors, such as who is borrowing, how much are they borrowing, and what stock are they trying to borrow. Occasionally when you are trying to short a stock you will get an error that it is hard to borrow. This could be for a few reasons, such as there are already a large amount of people who have shorted your broker's shares, or your broker never acquired the shares to begin with (which usually only happens on very small stocks). In both cases the broker/lender doesnt have enough shares and may be unwilling to get more. In that way they are discriminating on what they lend. If a company is about to go bankrupt and a lender doesnt have any more shares to lend out, it is unlikely they will purchase more as they stand to lose a lot and gain very little. It might seem like lending is a risky business but think of it as occurring over decades and not months. General Motors had been around for 100 years before it went bankrupt, so any lender who had owned and been lending out GM shares for a fraction of that time likely still profited. Also this is all very simplified. JoeTaxpayer alluded to this in the comments but in actuality who is lending stock or even who owns stock is much more complicated and probably doesnt need to be explained here. I just wanted to show in this over-simplified explanation that lending is not as risky as it may first seem.",
"title": ""
},
{
"docid": "36f74a656015e3e432d501b97ff69860",
"text": "Not really. The lender is not buying the stock back at a lower price. Remember, he already owns it, so he need not buy it again. The person losing is the one from whom the short seller buys back the stock, provided that person bought the stock at higher price. So if B borrowed from A(lender) and sold it to C, and later B purchased it back from C at a lower price, then B made profit, C made loss and A made nothing .",
"title": ""
}
] |
[
{
"docid": "4b4d3454995bfc832e60836cefe5af3c",
"text": "\"Am I getting it right that in India in terms of short selling in F&O market its what in the rest of the world is called naked short and you actually make promise to depositary that you will deliver that security you sold on settlement without actually owning the security or going through SLB mechanism? In Future and Options; there is no concept of short selling. You buy a future for a security / index. On the settlement day; the exchange determines the settlement price. The trade is closed in cash. i.e. Based on the settlement price, you [and the other party] will either get money [other party looses money] or you loose money [other party gets the money]. Similarly for Options; on expiry, the all \"\"In Money\"\" [or At Money] Options are settled in cash and you are credit with funds [the option writer is debited with funds]. If the option is \"\"out of money\"\" it expires and you loose the premium you paid to exercise the option.\"",
"title": ""
},
{
"docid": "a44daf7196d15483dc2a93284ac04b00",
"text": "\"Who are the losers going to be? If you can tell me for certain which firms will do worst in a bear market and can time it so that this information is not already priced into the market then you can make money. If not don't try. In a bull market stocks tend to act \"\"normally\"\" with established patterns such as correlations acting as expected and stocks more or less pricing to their fundamentals. In a bear market fear tends to overrule all of those things. You get large drops on relatively minor bad news and modest rallies on even the best news which results in stocks being undervalued against their fundamentals. In the crash itself it is quite easy to make money shorting. In an environment where stocks are undervalued, such as a bear market, you run the risk that your short, no matter how sure you are that the stock will fall, is seen as being undervalued and will rise. In fact your selling of a \"\"losing\"\" stock might cause it to hit levels where value investors already have limits set. This could bring a LOT of buyers into the market. Due to the fact that correlations break down creating portfolios with the correct risk level, which is what funds are required to do not only by their contracts but also by law to an extent, is extremely difficult. Risk management (keeping all kinds to within certain bounds) is one of the most difficult parts of a manager's job and is even difficult in abnormal market conditions. In the long run (definitions may vary) stock prices in general go up (for those companies who aren't bankrupted at least) so shorting in a bear market is not a long term strategy either and will not produce long term returns on capital. In addition to this risk you run the risk that your counterparty (such as Lehman brothers?) will file for bankruptcy and you won't be able to cover the position before the lender wants you to repay their stock to them landing you in even more problems.\"",
"title": ""
},
{
"docid": "99ba8e9b3a8e247eec12203c5dccd25d",
"text": "\"Derivatives derive their value from underlying assets. This is expressed by the obligation of at least one counterparty to trade with the other counterparty in the future. These can take on as many combinations as one can dream up as it is a matter of contract. For futures, where two parties are obligated to trade at a specific price at a specific date in the future (one buyer, one seller), if you \"\"short\"\" a future, you have entered into a contract to sell the underlying at the time specified. If the price of the future moves against you (goes up), you will have to sell at a loss. The bigger the move, the greater the loss. You go ahead and pay this as well as a little extra to be sure that you satisfy what you owe due to the future. This satisfaction is called margin. If there weren't margin, people could take huge losses on their derivative bets, not pay, and disrupt the markets. Making sure that the money that will trade is already there makes the markets run smoothly. It's the same for shorting stocks where you borrow the stock, sell it, and wait. You have to leave the money with the broker as well as deposit a little extra to be sure you can make good if the market moves to a large degree against you.\"",
"title": ""
},
{
"docid": "89a27825da28e95937d83b40b8dd83e0",
"text": "\"For some studies on why investors make the decisions they do, check out For a more readable, though less rigorous, look at it, also consider Kahneman's recent book, \"\"Thinking, Fast and Slow\"\", which includes the two companion papers written with Tversky on prospect theory. In certain segments (mostly trading) of the investing industry, it is true that something like 90% of investors lose money. But only in certain narrow segments (and most folks would rightly want traders to be counted as a separate beast than an 'investor'). In most segments, it's not true that most investors lose money, but it still is true that most investors exhibit consistent biases that allow for mispricing. I think that understanding the heuristics and biases approach to economics is critical, both because it helps you understand why there are inefficiencies, and also because it helps you understand that quantitative, principled investing is not voodoo black magic; it's simply applying mathematics for the normative part and experimental observations for the descriptive part to yield a business strategy, much like any other way of making money.\"",
"title": ""
},
{
"docid": "766ba9a0a0e7c1d6325b6344da388fe8",
"text": "If you buy a stock and it goes up, you can sell it and make money. But if you buy a stock and it goes down, you can lose money.",
"title": ""
},
{
"docid": "6e6390bc4bd318df463271b969ab2ba9",
"text": "This has never really adequately explained it for me, and I've tried reading up on it all over the place. For a long time I thought that in a trade, the market maker pockets the spread *for that trade*, but that's not the case. The only sensible explanation I've found (which I'm not going to give in full...) is that the market maker will provide liquidity by buying and selling trades they have no actual view on (short or long), and if the spread is higher, that contributes directly to the amount they make over time when they open and close positions they've made. It would be great to see a single definitive example somewhere that shows how a market maker makes money.",
"title": ""
},
{
"docid": "b4230bc9749d09b9fad10599e79b40ef",
"text": "\"I don't have anything definitive, but in general positions in a company are not affected materially by what is called a corporate action. \"\"Corp Actions\"\" can really be anything that affects the details of a stock. Common examples are a ticker change, or exchange change, IPO (ie a new ticker), doing a split, or merging with another ticker. All of these events do not change the total value of people's positions. If a stock splits, you might have more shares, but they are worth less per share. A merger is quite similar to a split. The old company's stock is converted two the new companies stock at some ratio (ie 10 shares become 1 share) and then converted 1-to-1 to the new symbol. Shorting a stock that splits is no different. You shorted 10 shares, but after the split those are now 100 shares, when you exit the position you have to deliver back 100 \"\"new\"\" shares, though dollar-for-dollar they are the same total value. I don't see why a merger would affect your short position. The only difference is you are now shorting a different company, so when you exit the position you'll have to deliver shares of the new company back to the brokerage where you \"\"borrowed\"\" the shares you shorted.\"",
"title": ""
},
{
"docid": "9be77ec1a7a6711cd9e39215f344a6e9",
"text": "\"There are situations where you can be forced to cover a position, particular when \"\"Reg SHO\"\" (\"\"regulation sho\"\") is activated. Reg SHO is intended to make naked short sellers cover their position, it is to prevent abusive failure to delivers, where someone goes short without borrowing someone else's shares. Naked shorting isn't a violation of federal securities laws but it becomes an accounting problem when multiple people have claims to the same underlying assets. (I've seen companies that had 120% of their shares sold short, too funny, FWIW the market was correct as the company was worth nothing.) You can be naked short without knowing it. So there can be times when you will be forced to cover. Other people being forced to cover can result in a short squeeze. A risk. The other downside is that you have to pay interest on your borrowings. You also have to pay the dividends to the owner of the shares, if applicable. In shorter time frames these are negligible, but in longer time frames, such as closer to a year or longer, these really add up. Let alone the costs of the market going in the opposite direction, and the commissions.\"",
"title": ""
},
{
"docid": "35d418477f6f1ff8bf0e3e14b2082fe6",
"text": "Day traders see a dip, buy stocks, then sell them 4 mins later when the value climbed to a small peak. What value is created? Is the company better off from that trade? The stocks were already outside of company hands, so the trade doesn't affect them at all. You've just received money from others for no contribution to society. A common scenario is a younger business having a great idea but not enough capital funds to actually get the business going. So, investors buy shares which they can sell later on at a higher value. The investor gets value from the shares increasing over time, but the business also gets value of receiving money to build the business.",
"title": ""
},
{
"docid": "def659aae548de1cffe0daa87eeb0196",
"text": "I believe that it's not possible for the public to know what shares are being exchanged as shorts because broker-dealers (not the exchanges) handle the shorting arrangements. I don't think exchanges can even tell the difference between a person selling a share that belongs to her vs. a share that she's just borrowing. (There are SEC regulations requiring some traders to declare that trades are shorts, but (a) I don't think this applies to all traders, (b) it only applies to the sells, and (c) this information isn't public.) That being said, you can view the short interest in a symbol using any of a number of tools, such as Nasdaq's here. This is often cited as an indicator similar to what you proposed, though I don't know how helpful it would be from an intra-day perspective.",
"title": ""
},
{
"docid": "a094c5a11277c21d3ef4c7708548e105",
"text": "\"Take the case where a stock has just two owners, A and B, both at $10. One of them sells his shares to C, at $11. Now B has made $1 in profit but is no longer an owner of the stock. A hasn't sold anything but his shares are worth 10% more due to the last traded price printed. C has bought shares at $11 and the price is $11, so technically he hasn't lost any money. In a larger market, there are winners and losers every day on a single stock, but they may not remain owners of a stock. There could be days in which those that remain owners are all winners - say when a stock goes up to an all time high and all those that are currently owners have an average buy price lower than the last traded price. And the reverse applies too. It is of course more complicated. Say you own a stock and let someone else \"\"borrow\"\" it for a short-selling opportunity (he sells it in the market). For each uptick in price, you win, the short seller loses, and the guy he sold it to also wins. A person that has a covered call on a stock is not a winner beyond a point. And so on.\"",
"title": ""
},
{
"docid": "5f505ea025ad3b724d57c8c6297ce71a",
"text": "When you buy a stock, the worst case scenario is that it drops to 0. Therefore, the most you can lose when buying a stock is 100% of your investment. When you short a stock, however, there's no limit on how high the stock can go. If you short a stock at 10, and it goes up to 30, then you've lost 200% on your investment. Therefore shorting stocks is riskier than buying stocks, since you can lose more than 100% of your investment when shorting. because the price might go up, but it will never be as big of a change as a regular price drop i suppose... That is not true. Stocks can sometimes go up significantly (50-100% or more) in a very short amount of time on a positive news release (such as an earnings or a buyout announcement). A famous example occurred in 2008, when Volkswagen stock quintupled (went up 400%) in less than 2 days on some corporate news: Porsche, for some reason, wants to control Volkswagen, and by building up its stake has driven up the price. Hedge funds, figuring the share price would fall as soon as Porsche got control and stopped buying, sold a lot of VW shares short. Then last weekend, Porsche disclosed that it owned 42.6 percent of the stock and had acquired options for another 31.5 percent. It said it wanted to go to 75 percent. The result: instant short-squeeze. The German state of Lower Saxony owns a 20 percent stake in VW, which it said it would not sell. That left precious few shares available for anyone else. The shorts scrambled to cover, and the price leaped from about €200, or about $265, to above €1,000.",
"title": ""
},
{
"docid": "02d2b13e35b38e12d934800189817837",
"text": "\"Below is just a little information on short selling from my small unique book \"\"The small stock trader\"\": Short selling is an advanced stock trading tool with unique risks and rewards. It is primarily a short-term trading strategy of a technical nature, mostly done by small stock traders, market makers, and hedge funds. Most small stock traders mainly use short selling as a short-term speculation tool when they feel the stock price is a bit overvalued. Most long-term short positions are taken by fundamental-oriented long/short equity hedge funds that have identified some major weaknesses in the company. There a few things you should consider before shorting stocks: Despite all the mystique and blame surrounding short selling, especially during bear markets, I personally think regular short selling, not naked short selling, has a more positive impact on the stock market, as: Lastly, small stock traders should not expect to make significant profits by short selling, as even most of the great stock traders (Jesse Livermore, Bernard Baruch, Gerald Loeb, Nicolas Darvas, William O’Neil, and Steven Cohen,) have hardly made significant money from their shorts. it is safe to say that odds are stacked against short sellers. Over the last century or so, Western large caps have returned an annual average of between 8 and 10 percent while the returns of small caps have been slightly higher. I hope the above little information from my small unique book was a little helpful! Mika (author of \"\"The small stock trader\"\")\"",
"title": ""
},
{
"docid": "55cb5b9ae06e3904e268112a5940bf42",
"text": "\"My take on this is that with any short-selling contract you are engaging in, at a specified time in the future you will need to transfer ownership of the item(s) you sold to the buyer. Whether you own the item(s) or in your case you will buy your friend's used car in the meantime (or dig enough gold out of the ground - in the case of hedging a commodity exposure) is a matter of \"\"trust\"\". Hence there is normally some form of margin or credit-line involved to cover for you failing to deliver on expiry.\"",
"title": ""
},
{
"docid": "ce8990841beccdcdb14c77381c273494",
"text": "Your impression about banks and bankers is very wrong. Wall street banks can and often do lose in transactions. In fact, banks go bankrupt and/or require massive bailouts to survive because they sometimes lose a ton of money. The business of investment banking often involves bearing risk for customers, which, by definition, means they lose some of the time. Generally the risks they take on individual transactions are not large enough to bring the whole bank down, but sometimes they are. Banking is a job like any other, except that it has more risk than most. Anyway, to your point, how do underwriters make money on shares that fall in value before the sale? On the commission. The issuing company will normally pay the investment bank a percentage of the funds raised in the offering, regardless of the price. Of course, it's possible for the bank to still lose money if their contract stipulates a minimum price and they are not able to meet it. In that case, the bank may lose on that offering, contradicting your preconceived notion. By the way, one other question implicit in your post: Why was the secondary offering considered bad news? If the CEO and other insiders have private information that indicates that the stock is overvalued, then doing a secondary offering at the inflated price will greatly enrich them. Because this happens some times, investors are wary about secondary offerings. This makes companies that would otherwise do a secondary offering shy away from it, even if shares are not overpriced. Therefore if a company is doing a secondary offering, the market is likely to worry that the stock is overvalued even at a reduced price.",
"title": ""
}
] |
fiqa
|
cf30eed4fbb5ae872d0f9e42efc3ca1b
|
Excessive Credit Check from Comcast
|
[
{
"docid": "7eb27e7e8dc2b2ddba0a88de6872d1c1",
"text": "\"In general, it is unusual for a credit check to occur when you are terminating a contract, since you are no longer requesting credit. If the credit check was a \"\"hard pull\"\" it will stay on your credit report for 2 years, but will only have an impact on your credit score for up to 12 months. If the check is a \"\"soft pull\"\" it has no impact on your credit score. Since you're past the 12 months boundary anyway, I wouldn't worry about it. That being said, please feel free to continue your investigation and report back if you can get Comcast to admit they performed the 2nd credit check. I'm sure we'd all be interested to hear their explanation for it.\"",
"title": ""
}
] |
[
{
"docid": "0088551e56693f9713c06610f68b44f1",
"text": "You can't make your bank do a charge back. This function is to assist with straight up fraud, not a customer service mistake. (Think spoofed or stolen card or if a vendor intentionally acted fraudulently.) While you may believe what they did is fraud, your bank will require that you provide the vendor with the opportunity to rectify the situation themselves. Trying to call back and giving up after a long hold time won't meet their standards. If banks started letting anyone unhappy with a vendor start doing charge backs, they would be doing nothing else all day. The issues you're describing has not reached the threshold for the bank to authorize a charge back. Comcast has local and regional offices, and you could go in person to speak with someone. Maybe there isn't one near you. There are non-peak hours which wait times will be less. You'll just have to grin and bear it if you truly want the money back. Then, take your business elsewhere and post bad reviews online. Always keep in mind that when you eventually speak with someone, they will not be the person that messed up, and you should be overly nice and polite to them. I promise it will yield far better results than being surly and demanding. Another way to get Comcast's attention would be to file a complaint with the BBB. It might take longer, but I've had this work with big companies, usually with good results. Again, be nice to whomever contacts you. In reference to your recent duplicate question: Mastercard won't be able to help at all. They play no part in the transaction at all.",
"title": ""
},
{
"docid": "f60f520231c8c33a0095bb8e007d774e",
"text": ">That's one reason why they let you get access to your credit score, to check it the data is correct and make the 'product' (data about you) better. If that were true, checking your credit report regularly would be straight forward and free. However, the credit agencies have turned insuring your credit report is actuate into a revenue stream. You can see raw data that goes into your score once a year, because the agencies are required by law to provide that you. In past the agencies have been criticized for trying to trick people into buying their services when they request their annual free report (see [freecreditreport.com vs annualcreditreport.com](http://www.getrichslowly.org/blog/2009/02/24/want-to-see-your-credit-report-for-free-freecreditreportcom-vs-annualcreditreportcom/)). If you want to check the accuracy of credit report more than once a year, you have to pay. If you want to know your score, you have to pay, although many credit cards offer this as a perk.",
"title": ""
},
{
"docid": "386fd11dd18a3fd9cb22b2a151054c16",
"text": "As noted above, this is likely going to need (several) lawyers to straighten out. I am not a lawyer, but I think one should be retained ASAP. However, in the meantime: The authorized user should not be making any charges. Continuing to do so at this point may be a criminal offense. For the protection of any other heirs, this should be brought to the attention of the credit card issuer and law enforcement authorities. As it stands, the account holder's estate will be liable for the full debt, and the authorized user's estate would be untouched. Of course, all this could change if other heirs challenge the estate and file civil suits, in which case it's likely that both estates will be eaten up with legal fees anyway.",
"title": ""
},
{
"docid": "998a715534f77ef5a2e6055d63ecbd1c",
"text": "You check your 401(k) retirement account, making sure your portfolio is carefully balanced. You scan your bank and credit card statements from time to time to verify the charges. These are things responsible people do. >But there’s a good chance you’ve spent time recently on a chore you didn’t sign up for: finding out if hackers possibly stole information about you from Equifax Inc., That's where you're wrong, kiddo. Why would I need to freeze my credit? Because someone else was stupid? Ah, hahaha, ha. nope.",
"title": ""
},
{
"docid": "0acd90d0e7a87890166b03610894f90d",
"text": "This is great news. Proving that Comcast is effectively (albeit indirectly) throttling specific traffic would be difficult in court, to a judge or jury. But regulators have significant expertise. They will understand Netflix's arguments. Also, since Netflix has signed a deal, they will not look like outsiders just wishing to join the party. They are complaining about their own business partners! I now expect the Comcast/TimeWarner merger to be stopped. Lobbying won't help them at this point, so I wouldn't be surprised if Comcast starts running ads to buttress their weak case.",
"title": ""
},
{
"docid": "f161f4f33e996e418842ee5dd8e034b4",
"text": "Yes, you did. To give an example of the contract terms that allow this, the [Capital One credit card agreement](https://www.capitalone.com/media/doc/credit-cards/Credit-Card-Agreement-for-Consumer-Cards-in-Capital-One-N.A.pdf) states: > Credit Reports > > We may report information about your Account to credit bureaus and others. Late payments, missed payments, or other defaults on your Account may be reflected in your credit report. Information we provide may appear on your and the Authorized Users’ credit reports. > > If you believe that we have reported inaccurate information about your Account to a credit bureau or other consumer reporting agency, notify us in writing at PO Box 30281, Salt Lake City, UT 84130-0281. When you write, tell us the specific information that you believe is incorrect and why you believe it is incorrect. > > We may obtain and use credit, income and other information about you from credit bureaus and others as the law allows.",
"title": ""
},
{
"docid": "8b17509ce52c566891fa540325150849",
"text": "For most, it's usually $30 to initially freeze ($10 x 3 major credit bureaus) then $30 in the future to unfreeze for a certain time frame each time you need a credit check, ie applying for a credit card, mortgage, auto lease. It may well be worth it to avoid thousands of dollars of losses from identity theft but still doesn't seem low cost to me. Looked into it but will take my chances. Equifax is super sketchy to not make at least their own freezing service free for life given their huge screwup. $20 for every credit check for the rest of my life would have been more reasonable but still a decent amount of money.",
"title": ""
},
{
"docid": "6c76b97fce53688c272eebaeee2f0c8d",
"text": "What you are describing here is the opposite of a problem: You're trying to contact a debt-collector to pay them money, but THEY'RE ignoring YOU and won't return your calls! LOL! All joking aside, having 'incidental' charges show up as negative marks on your credit history is an annoyance- thankfully you're not the first to deal with such problems, and there are processes in place to remedy the situation. Contact the credit bureau(s) on which the debt is listed, and file a petition to have it removed from your history. If everything that you say here is true, then it should be relatively easy. Edit: See here for Equifax's dispute resolution process- it sounds like you've already completed the first two steps.",
"title": ""
},
{
"docid": "6441fcef6c61db1345c14d3330bfc4bb",
"text": "Unsolicited credit checks like that don't affect your credit score. Those checks only count if they result from you applying for credit somewhere. So No.",
"title": ""
},
{
"docid": "add38ca7424072cd6aa0226650874a23",
"text": "\"I had about $16k in student loans. I defaulted on the loans, and they got > passed to a collection type agency (OSCEOLA). These guys are as legitimate as a collection agency can be. One thing that I feel is very sketchy is when they were verifying my identity they said \"\"Does your Social Security Number end in ####. Is your Birthday Month/Day/Year.\"\" That is not sketchy. It would be sketchy for a caller to ask you to give that information; that's a common scheme for identity theft. OSCEOLA are following the rules on this one. My mom suggested I should consider applying for bankruptcy Won't help. Student loans can't be discharged in bankruptcy. You have the bankruptcy \"\"reform\"\" act passed during the Bush 43 regime for that. The loan itself is from school. What school? Contact them and ask for help. They may have washed their hands of your case when they turned over your file to OSCEOLA. Then again, they may not. It's worth finding out. Also, name and shame the school. Future applicants should be warned that they will do this. What can I do to aid in my negotiations with this company? Don't negotiate on the phone. You've discovered that they won't honor such negotiations. Ask for written communications sent by postal mail. Keep copies of everything, including both sides of the canceled checks you use to make payments (during the six months and in the future). Keep making the payments you agreed to in the conversation six months ago. Do not, EVER, ignore a letter from them. Do not, EVER, skip going to court if they send you a summons to appear. They count on people doing this. They can get a default judgement if you don't show up. Then you're well and truly screwed. What do you want? You want the $4K fee removed. If you want something else, figure out what it is. Here's what to do: Write them a polite letter explaining what you said here. Recount the conversation you had with their telephone agent where they said they would remove the $4K fee if you made payments. Recount the later conversation. If possible give the dates of both conversations and the names of the both agents. Explain the situation completely. Don't assume the recipient of your letter knows anything about your case. Include evidence that you made payments as agreed during the six months. If you were late or something, don't withhold that. Ask them to remove the extra $4K from your account, and ask for whatever else you want. Send the letter to them with a return receipt requested, or even registered mail. That will prevent them from claiming they didn't get it. And it will show them you're serious. Write a cover letter admitting your default, saying you relied on their negotiation to set things straight, and saying you're dismayed they aren't sticking to their word. The cover letter should ask for help sorting this out. Send copies of the letter with the cover letter to: Be sure to mark your letter to OSCEOLA \"\"cc\"\" all these folks, so they know you are asking for help. It can't hurt to call your congressional representative's office and ask to whom you should send the letter, and then address it by name. This is called Constituent Service, and they take pride in it. If you send this letter with copies you're letting them know you intend to fight. The collection agency may decide it's not worth the fight to get the $4K and decide to let it go. Again, if they call to pressure you, say you'd rather communicate in writing, and that they are not to call you by telephone. Then hang up. Should I hire a lawyer? Yes, but only if you get a court summons or if you don't get anywhere with this. You can give the lawyer all this paperwork I've suggested here, and it will help her come up to speed on your case. This is the kind of stuff the lawyer would do for you at well over $100 per hour. Is bankruptcy really an option Certainly not, unfortunately. Never forget that student lenders and their collection agencies are dangerous and clever predators. You are their lawful prey. They look at you, lick their chops, and think, \"\"food.\"\" Watch John Oliver's takedown of that industry. https://www.youtube.com/watch?v=hxUAntt1z2c Good luck and stay safe.\"",
"title": ""
},
{
"docid": "c86d946924f477d132f16b006688480f",
"text": "I agree. I pulled my free reports (by going to ftc.gov first to get link to the truly free reports). The Equifax data was out of date. Didn't bother trying to correct it. As I don't need any new credit lines, I just put a security freeze on my records at all four bureaus. Makes my data virtually worthless to any potential identity their, and (best of all) nearly worthless to the bureaus.",
"title": ""
},
{
"docid": "28b410ed0d92fb6024497c5728194ff0",
"text": "In a nutshell, not really. That's the risk you take when you co-sign for someone. The lender only made the loan because of the strength of your brother's credit, not your mother's, so his reputation (in the form of his credit rating) is going to take the hit because of his mother's behaviors. The one thing he can do is this: The credit bureaus allow you to add a comment or explanation to your credit file which may be helpful, provided potential creditors read it, which is never a guarantee. It's worth trying though, so suggest to him to look into it. Here's a link for him/you/anyone to look at that can help explain how this works and what effects it can have: Adding a comment to your credit file for negative items I hope this helps. Good luck!",
"title": ""
},
{
"docid": "c862ffa8adba84464ca1c38d3b51cec4",
"text": "Yes, there is. I was a victim of Experian's breach last year. The only thing these credit reporting agencies sell is their opinion. If their opinion is not worth shit because they are compromised, then what they sell has little value. Next time you hear a lender explaining to you this credit score thingy, ask them if they still remember how to underwrite without it, because it is going away. They will look at you and try to carefully explain its importance, but you are under no obligation to believe them. Tell them COBOL sucks, and so does much of the '80s music they still listen to.",
"title": ""
},
{
"docid": "51788755f7176dffdb025f6ef5264772",
"text": "It's always a good idea to check your credit history on a regular basis - try checking your credit score from one of the independent providers recently (like Equifax) ? Maybe that will offer a clue what PayPal is doing.",
"title": ""
},
{
"docid": "a2badd78067071a0993a7bdc24577e6e",
"text": "I should add that it's a good defensive measure in case your information gets hacked, as mine likely has. You need to do it with all three agencies, and it costs five of ten dollars. Equifax has waived the Dee.",
"title": ""
}
] |
fiqa
|
95a0fc17e67590e224894ef67bffd131
|
Deposit a cheque in an alternative name into a personal bank account (Australia)
|
[
{
"docid": "bd79b85d692bf9e419a41ca027831ac8",
"text": "You don't have much choice other than to open an account in your business name, then do a money transfer, as @DJClayworth says. You will not without providing your name and street address and possibly other information that you may consider to be of a private nature. This is due to laws about fraud, money laundering and consumer protection. I'm not saying that's what you have in mind! But without accountability of the sort provided by names and street addresses, banks would be facilitating crimes of many sorts, which is why regulatory agencies enforce disclosure requirements.",
"title": ""
},
{
"docid": "de08ae2af0e8ff9943c55d61e5490d1c",
"text": "You actually don't have to open a business account with your bank, you can have a personal account with the bank and have your business funds go into it, whether it be from cheques or from Eftpos\\Credit Card Facilities. You just have to get your customers to make the cheque out under your name (the same name used for your bank account). If you are trading as a sole trader and you trade under a name other than your own name, then officially you are supposed to register that name with Fair Trading in your state. However, if you are trading using another name and it is not registered, Fair Trading will only become aware of it if someone (usually one of your customers) makes a compliant about you, and they will then ask you to either stop using that name as your trading name or have it registered (if not already registered by someone else).",
"title": ""
},
{
"docid": "fe02dac238961f9255895e609c881f91",
"text": "Banks has to complete KYC. In case you want to open a bank account, most will ask for proof of address. I also feel it is difficult for bank to encash a cheque payable to a business in your account. Opening a bank account in the name of your business or alternatively obtaining a cheque payable to your personal name seems the only alternatives to me.",
"title": ""
},
{
"docid": "882cbd406a8b1849647272257c95b90e",
"text": "\"Unfortunately, Australian bureocrats made it impossible to register a small business without making the person's home address, full name, date of birth and other personal information available to the whole world. They tell us the same old story about preventing crime, money laundering and terrorism, but in fact it is just suffocating small business in favour of capitalistic behemoths. With so many weirdos and identity thieves out there, many people running a small business from home feel unsafe publishing all their personal details. I use a short form of my first name and real surname for my business, and reguraly have problems cashing in cheques written to this variation of my name. Even though I've had my account with this bank for decades and the name is obviously mine, just a pet or diminitive form of my first name (e.g. Becky instead of Rebecca). This creates a lot of inconvenience to ask every customer to write the cheque to my full name, or make the cheque \"\"bearer\"\" (or not to cross \"\"or bearer\"\" if it is printed on the cheque already). It is very sad that there is protection for individual privacy in Australia, unless you can afford to have a business address. But even in this case, your name, date of birth and other personal information will be pusblished in the business register and the access to this information will be sold to all sorts of dubious enterprises like credit report companies, debt collectors, market researchers, etc. It seems like Australian system is not interested in people being independent, safe, self-sufficient and working for themselves. Everyone has to be under constant surveliance.\"",
"title": ""
}
] |
[
{
"docid": "a9060c0ee19a5d962dc4c0ebe016c4c8",
"text": "I found a good description of these on the Laurentian Bank website. Very similar to Abraham's answer, but the details are a little different (perhaps because it's Canadian). Certified cheque: A cheque which has been certified by the bank that the funds to be drawn are available and locked in for the sole beneficiary. This type of payment is guaranteed in case of theft, loss or destruction. Certified cheques can be entirely replaced after investigation (may be subject to a fee). Official cheque: As for the certified cheque, the official cheque is guaranteed by the bank against theft, loss or destruction. This type of cheque is different because it will be automatically and fully reimbursed within a 30 to 90-day period. If the amount is over $1,000, fees will be higher than those of the certified cheque. Money Order: The money order is also a bank-guaranteed payment in case of theft, loss or destruction. As with the official cheque, it will be replaced or totally refunded within a 30 to 90-day period. Its difference resides in the fact that the maximum amount is $1,000 and it can be issued in US dollars. Bank draft: A bank draft is the ideal guaranteed payment vehicle for all your foreign currency transactions. It’s guaranteed against theft, loss or destruction and will be replaced or totally reimbursed within a period that varies according to the currency. If you are an immigrant or an emigrant or if you make purchases outside of the country, you could require this payment vehicle.",
"title": ""
},
{
"docid": "d9d0ec4043394576ee2b74aab9e500a8",
"text": "Whichever is most convenient for the two of you, so it will depend on the situation. If you two are close by, cash is probably the best option. Your friend can hand it over to you in a number of ways. If you two are far apart, a cheque would probably be the better option. You don't want cash to get stolen from the mail. If it is international and/or you need it ASAP, something like Western Union would work better. It would cost me ~$80 (USD, not sure what fees are for CAD), but comes with additional protections to prevent fraud. Your friend could deposit the money on one side of the world, and you could pick it up at another side of the world within the hour (assuming cash, other payment methods may take longer). Other considerations:",
"title": ""
},
{
"docid": "1106f53035aa74ff20d51f8c9d233ccc",
"text": "\"No, the best you can do is (probably) determine the bank, from the sort code. using an online checker such as this one from the UK payments industry trade association. Revealing the name of an account holder is something the bank would typically require a warrant for, I'd expect, or whatever is covered in the account T&Cs under \"\"we provide all lawfully required assistance to the authorities\"\" Switching to what I suspect is your underlying problem - if this is a dispute that's arisen at the end of your tenancy, relating to the return of the deposit, then there are plenty of people to help you, for free. Use those rather than attempting your own detective work. Start with the UK government How to Rent guide, which includes links on to Shelter's pages about deposits. The CAB has lots of good info here too. Note that if your landlord didn't put your deposit in a deposit protection scheme, then as a professional landlord they could be penalised four times (I think) the deposit amount by a court, so stick to your guns on this.\"",
"title": ""
},
{
"docid": "06d8ab67711673601cf3eaaf45b9519a",
"text": "\"You can try writing on the back of the check, in the signature area, \"\"For deposit only to account xxxxxxxxx\"\", leaving room for the signature. This may or may not be legally binding, but it states your intnt and is in a form the bank will recognize.\"",
"title": ""
},
{
"docid": "2059bcdc3f4cc9371ad8551bd2aa3aef",
"text": "The regulatory environment here is the main driver. In Australia, where I spent 10 years developing software for lenders/banks you can operate the same way as described in the original question (overnight transfer to anyone) and cheques are not only never used, if you try, people will laugh at you. In Australia 4 banks control > 90% of the market, they realize that overnight transfers that involve them 0% is more efficient (read: costs less) for all of them. This will change in the next 1 - 2 years in the US I believe however, as pressures from technologies like bitcoin and technology providers like dwolla and venmo start to get a foothold and broader visibility.",
"title": ""
},
{
"docid": "ffa2250acc63d88f31a6961a58f380b9",
"text": "I've been a landlord and also a tenant. I have been able to deposit money in an account, where I have the account number, and/or a deposit slip. In a foreign bank you can deposit by a machine if in the bank or someone is there for you and knows the account number. With regards to cashing a check in another country, it is up to the bank and the time is at least 14 to 21 business days, with a fee is added. As of a winning check, since its in your name, if you are in another country sign the check, for deposit only with a deposit slip and send it to your out of country bank by FedEx - you will have a tracking number, where as regular mail it might get there in 3 months. I hope by now you came to your solution.",
"title": ""
},
{
"docid": "18fdaf795363cebce215bc069bf9f8f1",
"text": "Today typically a Business needs to hold accounts in more than one currency. Banks in certain countries are offering what is called a dual currency account. It is essentially 2 accounts with same account number but different currency. So One can have an account number say 123456 and have it in say AUD and USD. So the balance will always show as X AUD and Y USD. If you deposit funds [electronic, check or cash] in USD; your USD balance goes up. Likewise at the time of withdrawal you have to specify what currency you are withdrawing. Interest rates are calculated at different percentage for different currencies. So in a nutshell it would like operating 2 accounts, with the advantage of remembering only one account number. Designate a particular currency as default currency. So if you don't quote a currency along with the account number, it would be treated as default currency. Otherwise you always quote the account number and currency. Of-course bundled with other services like free Fx Advice etc it makes the entire proposition very attractive. Edit: If you have AUD 100 and USD 100, if you try and withdraw USD 110, it will not be allowed; Unless you also sign up for a auto sweep conversion. If you deposit a GBP check into the account, by default it would get converted into AUD [assuming AUD is the default currency]",
"title": ""
},
{
"docid": "a8935f4f9f839987be51bdc9ca58e298",
"text": "\"You can (usually) take it to your bank, and with appropriate identification, endorse the check with the words, \"\"not used for the purpose intended.\"\" The one time I needed to not-use a money order, I was instructed to do so by the cashier/clerk at the bank.\"",
"title": ""
},
{
"docid": "6e6eb756cc10517e78138928fe576fa8",
"text": "\"Depositum irregulare is a Latin phrase that simply means \"\"irregular deposit.\"\" It's a concept from ancient Roman contract law that has a very narrow scope and doesn't actually apply to your example. There are two distinct parts to this concept, one dealing with the notion of a deposit and the other with the notion of irregularity. I'll address them both in turn since they're both relevant to the tax issue. I also think that this is an example of the XY problem, since your proposed solution (\"\"give my money to a friend for safekeeping\"\") isn't the right solution to your actual problem (\"\"how can I keep my money safe\"\"). The currency issue is a complication, but it doesn't change the fact that what you're proposing probably isn't a good solution. The key word in my definition of depositum irregulare is \"\"contract\"\". You don't mention a legally binding contract between you and your friend; an oral contract doesn't qualify because in the event of a breach, it's difficult to enforce the agreement. Legally, there isn't any proof of an oral agreement, and emotionally, taking your friend to court might cost you your friendship. I'm not a lawyer, but I would guess that the absence of a contract implies that even though in the eyes of you and your friend, you're giving him the money for \"\"safekeeping,\"\" in the eyes of the law, you're simply giving it to him. In the US, you would owe gift taxes on these funds if they're higher than a certain amount. In other words, this isn't really a deposit. It's not like a security deposit, in which the money may be held as collateral in exchange for a service, e.g. not trashing your apartment, or a financial deposit, where the money is held in a regulated financial institution like a bank. This isn't a solution to the problem of keeping your money safe because the lack of a contract means you incur additional risk in the form of legal risk that isn't present in the context of actual deposits. Also, if you don't have an account in the right currency, but your friend does, how are you planning for him to store the money anyway? If you convert your money into his currency, you take on exchange rate risk (unless you hedge, which is another complication). If you don't convert it and simply leave it in his safe, house, car boot, etc. you're still taking on risk because the funds aren't insured in the event of loss. Furthermore, the money isn't necessarily \"\"safe\"\" with your friend even if you ignore all the risks above. Without a written contract, you have little recourse if a) your friend decides to spend the money and not return it, b) your friend runs into financial trouble and creditors make claim to his assets, or c) you get into financial trouble and creditors make claims to your assets. The idea of giving money to another individual for safekeeping during bankruptcy has been tested in US courts and ruled invalid. If you do decide to go ahead with a contract and you do want your money back from your friend eventually, you're in essence loaning him money, and this is a different situation with its own complications. Look at this question and this question before loaning money to a friend. Although this does apply to your situation, it's mostly irrelevant because the \"\"irregular\"\" part of the concept of \"\"irregular deposit\"\" is a standard feature of currencies and other legal tender. It's part of the fungibility of modern currencies and doesn't have anything to do with taxes if you're only giving your friend physical currency. If you're giving him property, other assets, etc. for \"\"safekeeping\"\" it's a different issue entirely, but it's still probably going to be considered a gift or a loan. You're basically correct about what depositum irregulare means, but I think you're overestimating its reach in modern law. In Roman times, it simply refers to a contract in which two parties made an agreement for the depositor to deposit money or goods with the depositee and \"\"withdraw\"\" equivalent money or goods sometime in the future. Although this is a feature of the modern deposit banking system, it's one small part alongside contract law, deposit insurance, etc. These other parts add complexity, but they also add security and risk mitigation. Your arrangement with your friend is much simpler, but also much riskier. And yes, there probably are taxes on what you're proposing because you're basically giving or loaning the money to your friend. Even if you say it's not a loan or a gift, the law may still see it that way. The absence of a contract makes this especially important, because you don't have anything speaking in your favor in the event of a legal dispute besides \"\"what you meant the money to be.\"\" Furthermore, the money isn't necessarily safe with your friend, and the absence of a contract exacerbates this issue. If you want to keep your money safe, keep it in an account that's covered by deposit insurance. If you don't have an account in that currency, either a) talk to a lawyer who specializes in situation like this and work out a contract, or b) open an account with that currency. As I've stated, I'm not a lawyer, so none of the above should be interpreted as legal advice. That being said, I'll reiterate again that the concept of depositum irregulare is a concept from ancient Roman law. Trying to apply it within a modern legal system without a contract is a potential recipe for disaster. If you need a legal solution to this problem (not that you do; I think what you're looking for is a bank), talk to a lawyer who understands modern law, since ancient Roman law isn't applicable to and won't pass muster in a modern-day court.\"",
"title": ""
},
{
"docid": "793e34f55011f78eca9d55f9b33a457b",
"text": "If the check is made out to him, he will have to endorse it. Which means that at some point he will have to physically have the check in his hands. At which point, he could probably just deposit it himself. If there's some problem getting the check to him for him to sign it, you could call the bank and ask if they'll accept it for deposit to his account without a signature. I understand some banks will do this. I would be very surprised if they would let you deposit a check made out to your son to your account. They'd have no way of knowing if your son was agreeable to this or if you were stealing his money. Traditionally, the person the check was made out to could endorse it, give the check to someone else, and then the second person could endorse it and deposit it to their (the second person's) account. That is, the endorsement would have your son's signature, and below that, your signature. But I understand some banks won't accept this any more, so you'd be best to check before trying it.",
"title": ""
},
{
"docid": "f85d0c665d1602fa222c3dbc0a7c32d9",
"text": "As it is a cheque I don't think you can deposit online. It seems that most the banks here charge a flat fee. Bank of Queensland charges $45 plus whatever the FX rate and fees are at the time. I think most of the banks have a clearance period of up to 28 days from when you deposit the cheque to when the funds clear and you could use them. If you want a cheaper and quicker option maybe try to have the USD funds sent electronically to the Australian bank account you choose.",
"title": ""
},
{
"docid": "0b9699c5ad5eb2bc97be861a8d1268ed",
"text": "I am assuming that you are referring to Personal Checks since you do not have a business account. Generally, your full name is the minimal requirement that is needed on the top left of each check. It is best if this information is pre-printed. In fact, some businesses and banks will not honor a check if your full name is handwritten on the check. This is for obvious reasons such as fraud.",
"title": ""
},
{
"docid": "0cdf32009ce7d2b68f9a30325a4cce95",
"text": "There's nothing particularly special about a two million dollar cheque. While they aren't commonplace, the bank certainly has experience with them. Many ATMs won't allow a deposit of that size but the bank cashiers will certainly accept them. They will typically get a supervisor to sign off on the deposit and may ask about the source of the money, for fraud prevention reasons. They may be held for longer than a smaller cheque if the bank manager chooses to do so. If there's nothing remotely suspicious (for example, it is a cheque from an insurance company for an expected payout), you should expect it will clear in about a week. On the other hand, if it is a cheque from a bank in another country and the bank manager has any reason to suspect it may not be legitimate, they may hold it for a month or more. Even then, you are not guaranteed the cheque was legitimate. This is used in a common scam.",
"title": ""
},
{
"docid": "90a56315d20bf81e78a7647eb7bea497",
"text": "While on a completely different scale to what you boys are talking about couple of years ago I was a relationship manager in retail banking and would on the reg have to sign away ~400k out of the tellers boxes and into the safe. After a few months of that you kind of view it as lego to fuck around with... [Australian money](https://www.google.com.au/search?q=australian+money&hl=en&prmd=imvns&source=lnms&tbm=isch&sa=X&ei=OquAUO2SD82ciAfSnoDgCA&ved=0CAoQ_AUoAQ&biw=1006&bih=502)",
"title": ""
},
{
"docid": "5ad774d144f61833b720a43b509ca992",
"text": "From HMRC Note that the rule is when a person becomes entitled to payment of earnings. This is not necessarily the same as the date on which an employee acquires a right to be paid. For example, an employee's terms of service may provide for the employee to receive a bonus for the year to 31 December 2004, payable on 30 June 2005 if the employee is still in the service of the employer on 31 December 2004. If the condition is satisfied the employee becomes entitled to a payment on 31 December 2004 but is only entitled to payment of it on 30 June 2005. So PAYE applies to it on 30 June 2005 and it is assessable for 2005/06. The date that matters is the date the employee is entitled to be paid the bonus. But why are you worried about paying tax. That is your employer's responsibility and they will do it for you. Ask you firm's finance department also for further clarification. HMRC are not an organization to mess with, they will tie up your life in knots.",
"title": ""
}
] |
fiqa
|
adfbb7086c70e740f67f52084addca15
|
why if change manufacturing of a product not change the price for the buyer?
|
[
{
"docid": "9d9f02719dc4bd5d2fe38df5e59c278b",
"text": "In highly developed and competitive industries companies tread a continuous and very fine line between maximising shareholder profits by keeping prices up while making products as cheaply as possible, vs competitors lowering prices when they work out a way to make equivalents cheaper. In the short run you will quite often see companies hold onto large portions of efficiency savings (particularly if they make a major breakthrough in a specific manufacturing process etc) by holding old prices up, but in the long run competition pretty quickly lowers prices as the companies trying to keep high margins and prices get ruthlessly undercut by smaller competitors happy to make a bit less.",
"title": ""
}
] |
[
{
"docid": "52bbfff40cb3c26c0cb6c4697dcbec40",
"text": "The public was sold the idea that losing manufacturing didn't matter. They were told not only do you get cheaper products. But you will get new cleaner service, and tech jobs that pay the same or better! People bought into it but 30 years later Ross Perot was proven right.",
"title": ""
},
{
"docid": "63f1724f4c0a0b3f2e97ed990bac83fe",
"text": "There is a highly related question which is much easier to answer: what normally value-increasing news about a company would cause that company to fall in value in the public stock market? By answering that, we can answer your question by proxy. The answer to that question being: anything that makes investors believe that the company won't be able to maintain the level of profit. For example, let's say a company announces a 300% profit growth compared to the previous year. This should push the stock upwards; maybe not by 300%, but certainly by quite a bit. Let's also say that this company is in the business of designing, manufacturing and selling some highly useful gadget that lots of people want to buy. Now suppose that the company managed such an profit increase by one of: In scenario 1 (firing the engineering department), it is highly unlikely that the company will be able to come up with, manufacture and sell a Next Generation Gadget. Hence, while profit is up now, it is highly likely to go down in the months and years coming up. Because stock market investors are more interested in future profits than in past profits, this should push the value of the company down. In scenario 2 (selling off the machinery), the company may very well be able to come up with a Next Generation Gadget, and if they can manufacture it, they might very well be able to sell it. However, no matter how you slice it, the short-term costs for manufacturing either their current generation Gadget, or the Next Generation Gadget, are bound to go up because the company will either need to rent machinery, or buy new machinery. Neither is good for future profits, so the value of the company again should go down in response. In scenario 3 (their product getting a large boost), the company still has all the things that allowed them to come up with, produce and sell Gadgets. They also have every opportunity to come up with, manufacture and sell Next Generation Gadgets, which implies that future profits, while far from guaranteed, are likely. In this case, the probability remains high that the company can actually maintain a higher level of profit. Hence, the value of the company should rise. Now apply this to a slightly more realistic scenario, and you can see why the value of a company can fall even if the company announces, for example, record profits. Hence, you are looking for news which indicate a present and sustained raised ability to turn a profit. This is the type of news that should drive any stock up in price, all else being equal. Obviously, buyer beware, your mileage may vary, all else is never equal, nothing ever hits the average, you are fighting people who do this type of analysis for a living and have every tool known available to them, etc etc. But that's the general idea.",
"title": ""
},
{
"docid": "32329c2c15033e76b5811474523d7a06",
"text": "This is how mints make money. They sell limited runs of items at a price significantly higher than their manufacturing cost. Some buyers hope that the scarce nature of the item will cause others to value it higher than the initial offer price but also some people just like to have them.",
"title": ""
},
{
"docid": "9d5bc374a5367ee82b656c65bbce0b3e",
"text": "For a company the size of Amazon a 1% increase in prices is substantial. Many of their products are in fiercely competitive price sensitive markets. There are some products that people would notice a 1% difference from competitors. So the actual increase would have to be concentrated on a smaller subset of products that are not as price sensitive. However, that would still mean reduced sales. In short, I don't think amazon is foregoing a 50% bump in profits if they could get it. Also a 5% SGA cut is absolutely enormous for a lean organization. In any one year that would mean an effective ~10% cut once you factor in inflation.",
"title": ""
},
{
"docid": "a1ece231f4a6a24f77541da760f42283",
"text": "\"WF has trust in certain customers. I doubt that they will lose that trust by lowering prices, and they will probably gain other customers as well. The thing you should probably do before making your judgements is to realize that the CEO of Amazon is probably a pretty smart person and he has access to information that you don't. So maybe you should lean on the side of \"\"Wait and See\"\" before making any judgements to a certain move.\"",
"title": ""
},
{
"docid": "22db7194c1f7259e97ce4e26ccadce11",
"text": "\"The entire time you've talked about cost. Changing incomes matters little if the cost scales with it. Me thinks you don't understand how a market works, even a semi-planned one. If more people make more money, the price of most goods goes up. This isn't due to real actual demand, its due to something called inflation. When the amount of money in circulation increases, we have inflation. Lets say I make 35k a year as a store clerk. Is my labor being undervalued compared to the income of a store clerk in the past? Or is the price of goods scaling faster than my income has scaled? Simply adding more money doesn't fix anything. The price of the good or service is what matters the most. While everyone having more money is good, you can't just magically give everyone more money without the cost of goods and services rising. I imagine that if everyone suddenly were at least a millionaire, the price of a laptop would sky rocket. The cost of the laptop in parts wouldn't be that much more, but since most people would have disposable income beyond their needs some goods would then get more expensive. Once that happens, the inflation of prices starts to spread until its effects are seen across the market. I don't think the \"\"fruit of my labor\"\" is being stolen by the \"\"upper class\"\". If anything, the fruit of my labor gets taken more and more by my own government and transferred to the lower classes more and more. I'm not rich, not even close. But I know I've had at least 15k of my income in the last 5 years taken and distributed through taxes ON my income to people that are generally unable to earn enough on their own. If these people are the upper class, then I must be Marie Antoinette!\"",
"title": ""
},
{
"docid": "84e197ba22b582ffe057aaf34d5e94f8",
"text": "It does have to do with supply and demand in a sense. My salary, as an engineer, has relatively little to do with the supply and demand of the parts my employers company makes. My salary does, however, depend (in part) on the supply of fellow engineers that have comparable skill sets to mine and the demand that companies have for engineers with comparable skill sets to mine.",
"title": ""
},
{
"docid": "0117102db5c34d86efc6909afcd4cf35",
"text": "\"It seems this will be very much driven by price discrimination. If there are some customers who will pay up to $100, sell at that; and if there are others who'll pay $1 sell at that price. For instance you see computer games, which have zero marginal cost of production, sold at \"\"normal new release\"\" prices, at premium prices with a special box or doo-dad, and at discount prices once the game is a bit old.\"",
"title": ""
},
{
"docid": "7ea314b3dbeec651d17d4d45e178c4b9",
"text": "Balanced out might be a better way to put it. Imports become cheaper, driving down inflation, which should permit companies to operate at a lower cost, which should eventually work to limit or eliminate the impact of the shift. These balancing factors generally occur in the long term and specific sectors of the economy will be impacted to different degrees.",
"title": ""
},
{
"docid": "afc87e138f5ad7836364c72b04e864f2",
"text": "News about a company is not the only thing that affects its stock's price. There is also supply and demand. That, of course, is influenced by news, but it is not the only actor. An insider, with a large position in their company's stock, may want to diversify his overall portfolio and thus need to sell a large amount of stock. That may be significant enough to increase supply and likely reduce the stock's price somewhat. That brings me to another influence on stock price: perception. Executives, and other insiders with large positions in their company's stock, have to be careful about how and when they sell some of that stock as to not worry the markets. Many investors watch insider selling to gauge the health of the company. Which brings me to another important point. There are many things that may be considered news which is material to a certain company and its stock. It is not just quarterly filings, earnings reports and such. There is also news related to competitors, news about the economy or a certain sector, news about some weather event that affects a major supplier, news about a major earthquake that will impact the economy of a nation which can then have knock-on effects to other economies, etc... There are also a lot of investors with varying needs which will influence supply and demand. An institutional investor, needing to diversify, may reduce their position in a stock and thus increase supply enough that it impacts the stock's price. Meanwhile, individual investors will make their transactions at varying times during the day. In the aggregate, that may have significant impacts on supply and demand. The overall point being that there are a lot of inputs and a lot of actors in a complicated system. Even if you focus just on news, there are many things that fall into that category. News does not come out at regular intervals and it does not necessarily spread evenly. That alone could make for a highly variable environment.",
"title": ""
},
{
"docid": "2923139f67bc06512a813a131913ad4a",
"text": "\"The simplest answer would be: Because they can. Why charge less for something if people will pay more? One example are Apple products. While there the price number is not exactly the same in EUR and USD, they are so close that, effectively, the EUR product is more expensive. Many things go into a price. There might be reasons for products in the EU being more expensive to produce or distribute. Or people in the EU might be in general more willing to pay more for a certain product. In that case, a company would forgo profits when they offered it cheaper. Also, prices are relative. Is the USD price the \"\"correct\"\" one and the exchange rate should dictate what the EUR price is? Or vice versa?\"",
"title": ""
},
{
"docid": "371e8f2e82be060229ed7fa33316d364",
"text": "The mechanism of supply and demand is imperfect. Producers don't know exactly how many purchasers/consumers for a good there are. Some goods, by their nature, are in short supply, and some are plentiful. The process of price discovery is one where (in a nominally free market) producers and purchasers make offers and counter-offers to assess what the price should be. As they do this the historical price changes, usually floating around some long-term average. As it goes up, we experience inflation. As it goes down, deflation. However, there isn't a fixed supply of producers and purchasers, so as new ones arrive and old ones leave, this too has an impact on supply and prices. Money (either in electronic or physical form) needs to be available to reflect the transactions and underpin the economy. Most central banks (at least in more established economies) aim for inflation of 2-4% by controlling the availability of money and the cost of borrowing new money. There are numerous ways they can do this (printing, issuing bonds, etc.). The reason one wants some degree of inflation is because employees will never accept a pay cut even when one would significantly improve the overall economy. Companies often decrease their prices in order to match lower demand, but employees don't usually accept decreased wages for decreased labour demand. A nominal degree of overall money inflation therefore solves this problem. Employees who get a below-inflation wage increase are actually getting a wage cut. Supply and demand must be matched and some inflation is the inevitable consequence of this.",
"title": ""
},
{
"docid": "abde78073282f0ab99adf09574459065",
"text": "This sort of thinking is one of the problems with economics. It's way too simplistic, and unrepresentative of how a company works. No company increases the price of a product because they hired a more expensive employee, unless said employee is dead weight. It might be a process engineer, that right now costs the company a bit more, but 12 months down the line will improve production efficiency by at least the value of his salary. And if they improve it more, by say 200% of their salary? Product price stays the same, he gets a pat on his back from the boss, and the company increases it's profits. And what usually happens when you nickel-and-dime your employees? They lose engagement and interest, or worst, they hire a shit employee for a shit salary and get little to no benefit from hiring.",
"title": ""
},
{
"docid": "efe70ea839b8b2502a417b3f0cdc2d5f",
"text": "\"Yes and no. First off, commodity prices reflect the cost of a good about 3 steps back in the retail supply chain; the agreed-upon price for the raw foodstuff between farmers/ranchers and manufacturers. Your grocer may carry bags of whole grain wheat, but that's certainly not all he carries that contains it. Same for corn, rice and other staple grains, as well as for fruits and vegetables, herbs (yes, you can buy basil by the ton on the CME), meats, various sugars, etc. So, a long-term sustained change in prices of a commodity foodstuff will eventually affect the real cost to you to buy things they're made from. However, in the short term, the retail supply chain will generally act as a buffer between these prices and the ones you see on the store shelf. Consumers don't like price increases, especially of necessities like food. When food costs go up, consumers can and will very quickly change their spending habits, buying cheaper options to get their needed calories. That makes manufacturers nervous; consumers not buying their product is a worse scenario than consumers buying their product at a reduced gain or even at a loss. So, manufacturers, and suppliers and retailers, will all absorb as much as they can of the cost of a commodities increase before beginning to pass it on to consumers. On the flip side, while consumers like price drops, they don't notice them as much as price increases. So, the supply chain will also absorb a fall in commodity prices by resisting price reductions in the consumer goods, as long as they can get away with it (which is usually longer than the price reduction actually lasts). The net effect is that processed food prices typically follow the gentle upward climb of long-term inflation, and only rarely do you see drastic price increases or decreases. Where this model breaks down a little bit is in highly perishable foodstuffs, especially seasonal or \"\"wild-managed\"\" foods; fruits and vegetables, seafood, etc. The limited time in which the stuff can be sold makes the process of getting a fish out of the ocean and a fruit off the tree and into your grocery store much more market-driven; the producers, suppliers and grocers are all in constant contact over what's available and how much they can get for what price. The prices therefore are typically a lower markup (unlike highly processed grain-based foods, there's not much added value to be marked up between the apple farmer picking the fruit and the grocer putting it on display), but also much more volatile; if there's a bumper crop of fruit, the farmer has to unload it all or it goes to waste, while similarly if an early freeze decimated the apple crop, the suppliers can't just get some of last year's bumper crop out of storage; they fight with everyone else for what little made it to market. Farmers will sometimes intentionally let excess crop spoil in order to maintain a minimum price for what they sell (the rest can at least be composted and used for fertilizer, saving them some money on maintenance), but there's no silver bullet for a shortage. This is why a lot of these foods, especially seafood, are considered luxury items; they're not stable enough for everyone to get as much as they want whenever they want, unlike staple grains.\"",
"title": ""
},
{
"docid": "2545061699821509a05441398afc0d95",
"text": "Stuff like this came about mainly when setting the new guidlines in medicare part D. Basically companies are able to reset their prices if they come up with a new method of delivery of a drug, sometimes it's faster and better but not always, especially since it's put into effect regardless. Since they already have a monopoly status due to the patent they set price equal to marginal revenue, which in this case happens to be quite a bit and since they own the only competing drug from what it sounds they are perfectly within their right to pull the old one.",
"title": ""
}
] |
fiqa
|
08df63212ec0a52285a9dfcd7cfdf201
|
I'm self-employed with my own LLC. How should I pay myself, given my situation?
|
[
{
"docid": "d85a63af069d155338adc34e9ca37a60",
"text": "\"You're conflating LLC with Corporation. They're different animals. LLC does not have \"\"S\"\" or \"\"C\"\" designations, those are just for corporations. I think what you're thinking about is electing pass through status with the IRS. This is the easiest way to go. The company can pay you at irregular intervals in irregular amounts. The IRS doesn't care about these payments. The company will show profit or loss at the end of the year (those payments to you aren't expenses and don't reduce your profit). You report this on your schedule C and pay tax on that amount. (Your state tax authority will have its own rules about how this works.) Alternatively you can elect to have the LLC taxed as a corporation. I don't know of a good reason why someone in your situation would do this, but I'm not an accountant so there may be reasons out there. My recommendation is to get an accountant to prepare your taxes. At least once -- if your situation is the same next year you can use the previous year's forms to figure out what you need to fill in. The investment of a couple hundred dollars is worthwhile. On the question of buying a home in the next couple of years... yes, it does affect things. (Pass through status? Probably doesn't affect much.) If all of your income is coming from self-employment, be prepared for hassles when you are shopping for a mortgage. You can ask around, maybe you have a friendly loan officer at your credit union who knows your history. But in general they will want to see at least two years of self-employment tax returns. You can plan for this in advance: talk to a couple of loan officers now to see what the requirements will be. That way you can plan to be ready when the time comes.\"",
"title": ""
}
] |
[
{
"docid": "e4dcc6b3ab3c7a2c70e69426a6c8820e",
"text": "You do not need to file 1099-MISC to yourself if you're running as a sole proprietor - you are yourself. However, you do not deduct this amount from your business income and report it as royalties either. Your self-published book is your business income subject to SE tax. You can only deduct the actual costs of producing/writing, and the remaining amount is your Schedule C income.",
"title": ""
},
{
"docid": "fd5be2826839269830e2c39aba971b96",
"text": "I know that there are a lot service on the internet helping to form an LLC online with a fee around $49. Is it neccessarry to pay them to have an LLC or I can do that myself? No, you can do it yourself. The $49 is for your convenience, but there's nothing they can do that you wouldn't be able to do on your own. What I need to know and what I need to do before forming an LLC? You need to know that LLC is a legal structure that is designed to provide legal protections. As such, it is prudent to talk to a legal adviser, i.e.: a Virginia-licensed attorney. Is it possible if I hire some employees who living in India? Is the salary for my employees a expense? Do I need to claim this expense? This, I guess, is entirely unrelated to your questions about LLC. Yes, it is possible. The salary you pay your employees is your expense. You need to claim it, otherwise you'd be inflating your earnings which in certain circumstances may constitute fraud. What I need to do to protect my company? For physical protection, you'd probably hire a security guard. If you're talking about legal protections, then again - talk to a lawyer. What can I do to reduce taxes? Vote for a politician that promises to reduce taxes. Most of them never deliver though. Otherwise you can do what everyone else is doing - tax planning. That is - plan ahead your expenses, time your invoices and utilize tax deferral programs etc. Talk to your tax adviser, who should be a EA or a CPA licensed in Virginia. What I need to know after forming an LLC? You'll need to learn what are the filing requirements in your State (annual reports, tax reports, business taxes, sales taxes, payroll taxes, etc). Most are the same for same proprietors and LLCs, so you probably will not be adding to much extra red-tape. Your attorney and tax adviser will help you with this, but you can also research yourself on the Virginia department of corporations/State department (whichever deals with LLCs).",
"title": ""
},
{
"docid": "3e534876010df78449bbca157d503e14",
"text": "\"Chris, Joe's table helps. but think this way: there are two ways you can pay the taxes for your side-gig: either you can send a check quarterly to the Feds, OR, you can overwithhold at your real job to cover taxes at your sidegig. I'd do this in \"\"arrears\"\" -- after you get your first paycheck from sidegig, then adjust your real job's withholding. Except (and Joe neglected this), you're still responsible for Social Security / Medicare Tax from your sidegig. I suspect your income at real-job is high enough that you stop paying Social Security Tax, so at least at this time of year you won't be subject to 15.4% Social Security Tax. However, that's NOT true for the 2.9% Medicare Tax. Remember that because you're an independent contractor being payed without withholding, YOU are responsible not only for the Medicare (and Social Security) taxes you'd be responsible for if a regular employee, but you're also responsible for what your employer's share as well.\"",
"title": ""
},
{
"docid": "acaf0037dbf1ceb8761d571c06a645fe",
"text": "There are certain situations where you could legally pay yourself rent, but it'd be in the context of multiple business entities interacting, never in the context of an individual renting their own property. Even if you could, any rent paid to yourself would count as rental income, so there'd be no benefit. Edit: I was hunting for examples where it might be acceptable, and didn't, but I found a good explanation as to why it is not acceptable from Brandon Hall on a BiggerPockets post: To get technical, you will be going up against the Economic Substance Doctrine which states that a transaction has economic substance if: (1) the transaction changes in a meaningful way (apart from Federal income tax effects) the taxpayer’s economic position; and (2) the taxpayer has a substantial purpose (apart from Federal income tax effects) for entering into such transaction. By transferring your primary residence into a LLC, you would not be changing your economic position. Further, you do not have a substantial purpose for entering into such transaction other than to simply avoid paying federal income taxes. So it might make sense if multiple people owned the LLC that owned the property you wanted to rent, and there are instances where company X owns holding company Y that owns an office building that company X rents space in. But if you're the sole player in the LLC's then it sounds like a no-go.",
"title": ""
},
{
"docid": "79d8a28c19435af5beeac567628d0ce8",
"text": "manage the company properly. If you aren't much aware about company rules and regulation or tax matters, get an accountant so that you don't mess up later. better off paying my self a dividend of 100% profit or as an employee? That depends on how much salary you intend to pay yourself, your dividend or how much business expenses you will incur while running the business. Generally speaking you are better off paying your self a minimum salary and pay the rest as dividends. But check out the dividend tax and the income tax you might need to pay and compare which situation you are better off. If you have a partner, using the dividend way will reduce your NI outgoes. ethical and legal? Ethically the dividend way might burn your conscience but it is perfectly legal way of doing things.",
"title": ""
},
{
"docid": "04bbc88a939792d7bc92dd48454f2d87",
"text": "\"Paying yourself through a corporation requires an analysis of a variety of issues. First, a salary paid to yourself creates RRSP contribution room as well as CPP contributions. Paying yourself a dividend achieves neither of those. By having a corporation, you will have to file a corporate (T2) tax return. The corporation is considered a separate legal entity from you. As an individual, you will still need to file a personal (T1) tax return. Never just \"\"draw\"\" money out of a corporation. This can create messy transactions involving loans to shareholders. Interest is due on these amounts and any amounts not paid within one calendar year are considered as wages by Canada Revenue and would need to be reported as income on your next T1 return. You should never withhold EI premiums as the sole owner of a corporation. You are considered exempt from these costs by CRA. Any amounts that have been remitted to CRA can be reclaimed by submitting a formal request. The decision on whether to take a salary or dividends normally requires some detailed analysis. Your accountant or financial advisor should be able to assist in this matter.\"",
"title": ""
},
{
"docid": "8510a870bd602985400586f24d7396ab",
"text": "As littleadv says, if you're a sole proprietorship, you don't need to file a 1099 for money you pay yourself. You certainly will need to file a schedule C or schedule E to report the income. And don't forget SE to pay social security taxes on the income if you made a profit. If your company is a corporation, then -- I'm not a tax lawyer here, but I think the corporation would need to file a 1099 for the money that the corporation pays to you. Assuming that the amount is above the threshold that requires a 1099. That's normally $600, but it's only $10 for royalties.",
"title": ""
},
{
"docid": "e65985c3ab463e6ad723656aa8e16f82",
"text": "\"You can file an LLC yourself in most states, although it might be helpful to use a service if you're not sure what to do to ensure it is correct. I filed my LLC here in Colorado online with the Secretary of State's office, which provided the fill-in-the-blank forms and made it easy. In the U.S., taxation of an LLC is \"\"pass-through\"\", meaning the LLC itself does not have any tax liability. Taxes are based on what you take out of the LLC as distributions to yourself, so you pay personal income tax on that. There are many good books on how to form and then operate an LLC, and I personally like NoLo (link to their web site) because they cater to novices. As for hiring people in India, I can't speak to that, so hopefully someone else can answer that specific topic. As for what you need to know about how to run it, I'll refer back to the NoLo books and web site.\"",
"title": ""
},
{
"docid": "6ef443450b7a2e0334cec2673e52f06d",
"text": "\"You would put your earnings (and expenses, don't forget) on Schedule C, and then do a Schedule SE for self-employment tax. http://www.irs.gov/businesses/small/article/0,,id=98846,00.html 1040ES isn't used to compute taxes, it's used to pay taxes. Generally you are supposed to pay taxes as you go, rather than when you file. There are exceptions where you won't be penalized for paying when you file, \"\"most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller\"\" from http://www.irs.gov/taxtopics/tc306.html i.e. there's a safe harbor as long as you pay as much as you owed the year before. If you owe a lot at the end of the year a second time in a row, then you get penalized.\"",
"title": ""
},
{
"docid": "7200a89dbbfa7bb7d5c587cfb8532ebb",
"text": "\"Being self employed just means you fill out some more forms in your annual self assessment for your \"\"profit\"\" from being self employed. Profit = all the money you receive, minus any tax deductible cost that you spent for making that money (and all the cost must be documented, which means you have a folder with all the receipts and keep it safe). You pay normal income tax on all the profit, which means it is just added to your taxable income. What you do with the profit is up to you; you don't pay yourself a salary, just take the money (make sure you leave enough to pay your taxes).\"",
"title": ""
},
{
"docid": "1406ad7d12bc3a17399d0be238045b5b",
"text": "I am surprised no one has mentioned the two biggest things (in my opinion). Or I should say, the two biggest things to me. First, 1099 have to file quarterly self employment taxes. I do not know for certain but I have heard that often times you will end up paying more this way then even a W-2 employees. Second, an LLC allows you to deduct business expenses off the top prior to determining what you pay in taxes as pass-through income. With 1099 you pay the same taxes regardless of your business expenses unless they are specifically allowed as a 1099 contractor (which most are not I believe). So what you should really do is figure out the expense you incur as a result of doing your business and check with an accountant to see if those expenses would be deductible in an LLC and if it offsets a decent amount of your income to see if it would be worth it. But I have read a lot of books and listened to a lot of interviews about wealthy people and most deal in companies not contracts. Most would open a new business and add clients rather than dealing in 1099 contracts. Just my two cents... Good luck and much prosperity.",
"title": ""
},
{
"docid": "e14cb4c06d785d9ab927ff0914196dcc",
"text": "This is wrong. It should be or Now, to get back to self-employment tax. Self-employment tax is weird. It's a business tax. From the IRS perspective, any self-employed person is a business. So, take your income X and divide by 1.0765 (6.2% Social Security and 1.45% Medicare). This gives your personal income. Now, to calculate the tax that you have to pay, multiply that by .153 (since you have to pay both the worker and employer shares of the tax). So new calculation or they actually let you do which is better for you (smaller). And your other calculations change apace. And like I said, you can simplify Q1se to and your payment would be Now, to get to the second quarter. Like I said, I'd calculate the income through the second quarter. So recalculate A based on your new numbers and use that to calculate Q2i. or Note that this includes income from both the first and second quarters. We'll reduce to just the second quarter later. This also has you paying for all of June even though you may not have been paid when you make the withholding payment. That's what they want you to do. But we aren't done yet. Your actual payment should be or Because Q2ft and Q2se are what you owe for the year so far. Q1ft + Q1se is what you've already paid. So you subtract those from what you need to pay in the second quarter. In future quarters, this would be All that said, don't stress about it. As a practical matter, so long as you don't owe $1000 or more when you file your actual tax return, they aren't going to care. So just make sure that your total payments match by the payment you make January 15th. I'm not going to try to calculate for the state. For one thing, I don't know if your state uses Q1i or Q1pi as its base. Different states may have different rules on that. If you can't figure it out, just use Q1i, as that's the bigger one. Fix it when you file your annual return. The difference in withholding is going to be relatively small anyway, less than 1% of your income.",
"title": ""
},
{
"docid": "d4e6fe0aa15ee2e3158e55925b69ad93",
"text": "No, do not file a Form 1099. You should not issue a form to yourself and you have no separate entity to issue one. The reporting obligation is Form 1040, plus Schedule C. You may have followed a wrong turn somewhere in the TurboTax questionnaire or it may not have picked up the subtleties of your situation. The business income is already yours. Some writers use vehicles to hold their royalties and pay themselves. The questionnaire may have been trying to get at this issue or may have wrongly assumed it. There are special rules around such entities, so getting an adviser is a good idea. For now, just file Schedule C, remember to deduct your costs (e.g. cost to print the books), and pay your self-employment tax.",
"title": ""
},
{
"docid": "1b9e4a98fe42a45581fab09edb4e4eee",
"text": "You don't even need to formally loan the LLC any money. You pay for the setup costs out of pocket, and then once the LLC is formed, you reimburse yourself (just like with an expense report). Essentially you submit an expense report to the LLC for the startup costs, and the LLC pays out a check to you, categorized for the startup expenses.",
"title": ""
},
{
"docid": "8de0bd6e321f81879376c5cc24885ddb",
"text": "So there are a lot of people that get into trouble in your type of self employment situation. This is what I do, and I use google drive so there are no cost for tools. However, having an accounting system is better. Getting in trouble with the IRS really sucks bad.",
"title": ""
}
] |
fiqa
|
d898ef618a6ae1248a6b7c9253556c21
|
Form 1042-S for foreign resident and owner of trade account
|
[
{
"docid": "ffe42a6e748797d0223dd014d46a1239",
"text": "As you have indicated, the 1042-S reflects no income or withholding. As such, you are not required to file a US tax return unless you have other income from the US. Gains on stocks are not reported until realized upon sale. FYI, your activity does not fit the requirements of being engaged in a trade or business activity. While the definition is documented in several places of the Code, I have attached Publication 519 which most accurately represents the application to your situation as you have described it. https://www.irs.gov/publications/p519/ch04.html#en_US_2016_publink1000222308",
"title": ""
}
] |
[
{
"docid": "35c5605589b6b4dbdea21675a10af603",
"text": "There might be a problem. Some reporting paperwork will have to be done for the IRS, obviously, but technically it will be business income zeroed out by business expense. Withholding requirements will shift to your friend, which is a mess. Talk to a licensed tax adviser (EA/CPA) about these. But the immigration may consider this arrangement as employment, which is in violation of the visa conditions. You need to talk to an immigration attorney.",
"title": ""
},
{
"docid": "e51fdeb51cecb92c7a69bc78db232a18",
"text": "No, it will show on the LLC tax return (form 1065), in the capital accounts (schedules K-1, L and M-2), attributed to your partner.",
"title": ""
},
{
"docid": "b3371f553b12a1b7800b33aa60fbd97b",
"text": "Yes (most likely). If you are exchanging investments for cash, you will have to pay tax on that - disregarding capital losses, capital loss carryovers, AGI thresholds, and other special rules (which there is no indication of in your question). You will have to calculate the gain on Schedule D, and report that as income on your 1040. This is the case whether you buy different or same stocks.",
"title": ""
},
{
"docid": "ac752fb104fc90705e42850f151aec14",
"text": "What I'm going to write is far too long for a comment, so I'll put it here even though its not an answer. That's the closest thing to an answer you'll get here, I'm afraid. I'm not a tax professional, and you cannot rely on anything I say, as you undoubtedly know. But I'll give you some pointers. Things you should be researching when you have international clients: Check if Sec. 402 can apply to the pension funds, if so your life may become much easier. If not, and you have no idea what you're doing - consider referring the client elsewhere. You can end up with quite a liability suit if you make a mistake here, because the penalties on not filing the right piece of paper are enormous.",
"title": ""
},
{
"docid": "451e7176d208d3ff2634c0612d4b61bb",
"text": "The loss for B can be used to write off the gain for A. You will fill out a schedule 3 with cost base and proceeds of disposition. This will give you a $0 capital gain for the year and an amount of $5 (50% of the $10 loss) you can carry forward to offset future capital gains. You can also file a T1-a and carry the losses back up to 3 years if you're so inclined. It can't be used to offset other income (unless you die). Your C and D trades can't be on income account except for very unusual circumstances. It's not generally acceptable to the CRA for you to use 2 separate accounting methods. There are some intricacies but you should probably just use capital gains. There is one caveat that if you do short sales of Canadian listed securities, they will be on income account unless you fill out form T-123 and elect to have them all treated as capital gains. I just remembered one wrinkle in carrying forward capital losses. They don't reduce your capital gains anymore, but they reduce your taxable income. This means your net income won't be reduced and any benefits that are calculated from that (line 236), will not get an increase.",
"title": ""
},
{
"docid": "8364441010f6737d8fc4c32e0f598d57",
"text": "The United States taxes nonresident aliens on two types of income: First, a nonresident alien who is engaged in a trade or business in the United States is taxed on income that is effectively connected with that trade or business. Second, certain types of U.S.-source payments are subject to income tax withholding. The determination of when a nonresident alien is engaged in a U.S. trade or business is highly fact-specific and complex. However, keeping assets in a U.S. bank account should not be treated as a U.S. trade or business. A nonresident alien's interest income is generally subject to U.S. federal income tax withholding at a rate of 30 percent under Section 1441 of the tax code. Interest on bank deposits, however, benefit from an exception under Section 1441(c)(10), so long as that interest is not effectively connected with a U.S. trade or business. Even though no tax needs to be withheld on interest on a bank deposit, the bank should still report that interest each year to the IRS on Form 1042-S. The IRS can then send that information to the tax authority in Brazil. Please keep in mind that state and local tax rules are all different, and whether interest on the bank deposits is subject to state or local tax will depend on which state the bank is in. Also, the United States does tax nonresident aliens on wages paid from a U.S. company, if those wages are treated as U.S.-source income. Generally, wages are U.S.-source income if the employee provides services while physically present in the United States. There are a few exceptions to this rule, but they depend on the amount of wages and other factors that are specific to the employee's situation. This is an area where you should really consult with a U.S. tax advisor before the employment starts. Maybe your company will pay for it?",
"title": ""
},
{
"docid": "9100a3e1cee41f47fc7d15a0ffe99996",
"text": "So I want to sell my 100 shares of AAPL to him at a price of 10 or even 1 US Dollar. Is that legal/allowed? Of course. It's your stocks - do with it what you want. if the two persons are not served by a same broker. You'll have to talk to your broker about the technicalities of the transaction. if the person who sell are US citizen and the person who buy are not, and and vice-versa Since you asked specifically about US citizenship, I'll assume you're in the US or the transaction is taking place in the US. Citizenship has nothing to do with it (except may be for economic sanctions against Russians or Iranians that may come into play). What is important is the tax residency status. Such a transfer is essentially a gift, and if you're a US tax resident (which doesn't correlate to your immigration status necessarily) - you'll have to deal with the gift tax consequences on the discount value. For example - you have 100 shares of AAPL which you sold to your friend for $1 each when the fair market value (FMV) was $501. So essentially, the friend got $50,100 value for $100. I.e.: $50K gift. Since this amount is above the annual $14K exemption - you'll have to deal with the gift tax and file gift tax return. There are also consequences for the capital gains tax for both you and your friend. I suggest you talk to a licensed tax adviser (EA/CPA licensed in your State) about the specifics given your circumstances. If you (or the recipient) are also a foreign citizen/tax resident - then that country's laws also may affect your situation.",
"title": ""
},
{
"docid": "bba32b796ac32de9786cc1594733b90f",
"text": "I filed all my tax returns when I was abroad so they know how much I made (just not how much I saved). I smell problems here. If you were compliant wrt to your filings, you must have filed FBAR forms and form 8938. Even if you were below the threshold for form 8938, you will probably be above it when you move back to the US - the threshold for people living in the US is much lower. Do I still need to declare it, even though I might not intend to use this money to help my kids through college? I believe so. Here's what they want: Nothing there suggests that it is only limited to the accounts in the US or to the money you intend to use to help your kids through college.",
"title": ""
},
{
"docid": "44f7f02ebc9b4bba410c9a805b9ed00d",
"text": "\"If you have income - it should appear on your tax return. If you are a non-resident, that would be 1040NR, with the eBay income appearing on line 21. Since this is unrelated to your studies, this income will not be covered by the tax treaties for most countries, and you'll pay full taxes on it. Keep in mind that the IRS may decide that you're actually having a business, in which case you'll be required to attach Schedule C to your tax return and maybe pay additional taxes (mainly self-employment). Also, the USCIS may decide that you're actually having a business, regardless of how the IRS sees it, in which case you may have issues with your green card. For low income from occasional sales, you shouldn't have any issues. But if it is something systematic that you spend significant time on and earn significant amounts of money - you may get into trouble. What's \"\"systematic\"\" and how much is \"\"significant\"\" is up to a lawyer to tell you.\"",
"title": ""
},
{
"docid": "cd457dc2775f548272da666b546bbfaf",
"text": "Unless you started a bank or other kind of a financial institution (brokerage, merchant processor, etc etc), the page you linked to is irrelevant. That said, there's enough in the US tax code for you to reconsider your decision of not living in the US, or at least of being a shareholder of a foreign company. Your compliance costs are going to go through the roof. If you haven't broken any US tax laws yet (which is very unlikely), you may renounce your citizenship and save yourself a lot of money and trouble. But in the more likely case of you already being a criminal with regards the US tax law, you should probably get a proper tax advice from a US-licensed CPA/EA who's also proficient in the Japanese-American tax treaty and expats' compliance issues resolution.",
"title": ""
},
{
"docid": "3a867c6f052ff0ca6c6709e1a4dfacbe",
"text": "The LLC portion is completely irrelevant. Don't know why you want it. You can create a joint/partnership trading account without the additional complexity of having LLC. What liability are you trying to limit here? Her sisters will file tax returns in the us using the form 1040NR, and only reporting the dividends they received, everything else will be taxed by Vietnam. You'll have to investigate how to file tax returns there as well. That said, you'll need about $500,000 each to invest in the regional centers. So you're talking about 1.5 million of US dollars at least. From a couple of $14K gifts to $1.5M just by trading? I don't see how this is feasible.",
"title": ""
},
{
"docid": "819197acdc0e88afc44350dcccd999eb",
"text": "\"I believe you have to file a tax return, because state tax refund is considered income effectively connected with US trade or business, and the 1040NR instructions section \"\"Who Must File\"\" includes people who were engaged in trade or business in the US and had a gross income. You won't end up having to pay any taxes as the income is less than your personal exemption of $4050.\"",
"title": ""
},
{
"docid": "66b6d7651ba92fdc726761af5e89c6f9",
"text": "\"I made an investing mistake many (eight?) years ago. Specifically, I invested a very large sum of money in a certain triple leveraged ETF (the asset has not yet been sold, but the value has decreased to maybe one 8th or 5th of the original amount). I thought the risk involved was the volatility--I didn't realize that due to the nature of the asset the value would be constantly decreasing towards zero! Anyhow, my question is what to do next? I would advise you to sell it ASAP. You didn't mention what ETF it is, but chances are you will continue to lose money. The complicating factor is that I have since moved out of the United States and am living abroad (i.e. Japan). I am permanent resident of my host country, I have a steady salary that is paid by a company incorporated in my host country, and pay taxes to the host government. I file a tax return to the U.S. Government each year, but all my income is excluded so I do not pay any taxes. In this way, I do not think that I can write anything off on my U.S. tax return. Also, I have absolutely no idea if I would be able to write off any losses on my Japanese tax return (I've entrusted all the family tax issues to my wife). Would this be possible? I can't answer this question but you seem to be looking for information on \"\"cross-border tax harvesting\"\". If Google doesn't yield useful results, I'd suggest you talk to an accountant who is familiar with the relevant tax codes. Are there any other available options (that would not involve having to tell my wife about the loss, which would be inevitable if I were to go the tax write-off route in Japan)? This is off topic but you should probably have an honest conversation with your wife regardless. If I continue to hold onto this asset the value will decrease lower and lower. Any suggestions as to what to do? See above: close your position ASAP For more information on the pitfalls of leveraged ETFs (FINRA) What happens if I hold longer than one trading day? While there may be trading and hedging strategies that justify holding these investments longer than a day, buy-and-hold investors with an intermediate or long-term time horizon should carefully consider whether these ETFs are appropriate for their portfolio. As discussed above, because leveraged and inverse ETFs reset each day, their performance can quickly diverge from the performance of the underlying index or benchmark. In other words, it is possible that you could suffer significant losses even if the long-term performance of the index showed a gain.\"",
"title": ""
},
{
"docid": "26b37f71f94754dec7bfa1c9bcb2a39f",
"text": "I had this problem when I finished my job in Canada in Sept 2013. You'll likely have to open the account in person in Canada, at least if you don't already have a relationship with a broker there. DO NOT go to Virtual Brokers. They told me that my US citizenship was no problem, but right before I left Canada to double check. It wasn't until I asked specifically which US states they were licensed in that they realized they were licensed in NO US STATES. They told me that they'd freeze my account when I left. I then moved my (former) pension to a locked-in RRSP at BMO. As of September 2010 BMO could handle residents of most US states, but it took some tooth pulling to get the list out of them. However, after I flew to the USA, BMO called to demand more ID. My account was frozen until I flew back to Canada in person just to show ID. Annoyed, I closed the BMO account and moved it to TD Waterhouse. TD waterhouse can handle accounts for residents of all the US states EXCEPT Virginia, Louisiana, and Nebraska. (I only got the complete list of exceptions when I made my first trade, since the guys at the trading desk are much more knowledgeable about such things than the guys in the branch.) TD was extremely friendly about my USA citizenship/residence. (Many Canadian brokers simply won't accept US residents, at least as of the end of 2013.) Whichever broker you choose, BRING LOTS MORE ID than they require. Insist that they zerox it all. Make sure to include your social security card. You don't want them to demand more ID after you've left the country, like BMO did. They may even make such a move simply to get rid of US customers, because the FATCA is a pain for foreign banks.",
"title": ""
},
{
"docid": "01146864ca51d161601ebe09cd8359b9",
"text": "First of all, this is a situation when a consultation with a EA working with S-Corporations in California, CA-licensed CPA or tax preparer (California licenses tax preparers as well) is in order. I'm neither of those, and my answer is not a tax advice of any kind. You're looking at schedule CA line 17 (see page 42 in the 540NR booklet). The instructions refer you to form 3885A. You need to read the instructions carefully. California is notorious for not conforming to the Federal tax law. Specifically, to the issue of the interest attributable to investment in S-Corp, I do not know if CA conforms. I couldn't find any sources saying that it doesn't, but then again - I'm not a professional. It may be that there's an obscure provision invalidating this deduction, living in California myself - I wouldn't be surprised. So I suggest hiring a CA-licensed tax preparer to do this tax return for you, at least for the first year.",
"title": ""
}
] |
fiqa
|
104735f0dba43d7f7093b0135f5edfb2
|
Under specific conditions can I write off Spotify or other streaming audio services?
|
[
{
"docid": "59cf5c5066f75a5e4bececa297f762ea",
"text": "Nice try. No. If you were in the music industry, you might have a case. Depending on the exact job, certain things related to music would be a business expense. I don't see how this would pass an audit as it really is unrelated to the work you do.",
"title": ""
}
] |
[
{
"docid": "11e8951f9d52f4e20ebbc8e5edc325be",
"text": "get into the 21st century. there are millions of artists willing to make videos, music, and other forms of entertainment for FREE. the music and hollywood industry are NOT entitled to profits. they lose money because of bad business models that don't evolve to a changing entertainment paradigm",
"title": ""
},
{
"docid": "dd0d2a45891e94bd32e3cd8ded227f97",
"text": "Cause the ads are so fucking annoying. They advertise stuff I don’t care about way too often and it’s the same ad over and over again. Every time I listen to sound cloud in the car and there is an ad I turn the volume all the way down.",
"title": ""
},
{
"docid": "3fc0c634d70c69f7e20b6df164bc3dde",
"text": "As consumers, we need to demand licenses for content which state that they cannot be revoked unless there is a demonstrated violation of the terms of service. Those violations should have to be specifically enumerated and provided in writing to the licensee.",
"title": ""
},
{
"docid": "9dc05df9fc6e20481d08de42919c5f53",
"text": "Almost every company I know of charges something like 2% per month on past due accounts. They are not financial institutions, so it's probably quite legal.",
"title": ""
},
{
"docid": "28ac9750fbe2ced1cbb41ddf2bd17d70",
"text": "it is legal. In fact part of the service is provided by Google that displays the notifications. It's only available on Android which is approx 85% of the market share. It's not targeted advertising using an email address, telephone number, etc. The users smartphone scans for the signal. The user can dismiss a notification and turn the feature off and they opt in to the service during install/update of their OS",
"title": ""
},
{
"docid": "ecce220fa16d9537994bc292b4454923",
"text": "Call Comcast during a non-peak time (first thing in the morning?), wait on hold, and politely explain what happened and request a $50 credit. Also politely request that your premium support request be handled for free given how much hassle you've had getting disconnected. They'll be able to tell your premium request was never answered because there are no notes on your support tickets. Calling them is much easier than any of your other options.",
"title": ""
},
{
"docid": "1154baf84454ded433044779cbbcfec8",
"text": "You're charging service fees as a conduit entity for these tickets. While the service fee is not a fixed rate, but a percentage, you would need to record each purchase at dollar amount. To illustrate, it would look like: Now, to your question: How do I report this on my taxes? You would first start out by filing your Schedule C from the eyes of the business (the money you earn at your job, and the money you earn as a business are different). Just keep a general journal with the above entry for each sale and close them down to a simple balance sheet and income statement and you should be fine. Of course, read the instructions for your Schedule C before you begin. As always, good luck.",
"title": ""
},
{
"docid": "c4a1412c2941e87dd381bbdd23ec61a6",
"text": "\"If you're skipping and blocking the ads then you're not paying for shit. You are not helping that \"\"model.\"\" Fortunately you're in good company, and the few changes necessary *will* happen in response to how insufferable and ineffective ad-funding is. The whole business will simply fade away.\"",
"title": ""
},
{
"docid": "72aaf487205cb5e9e76f53782862c856",
"text": "You guys know that you don't need to use itunes right? Winamp can load/unload ipod devices just fine. There are other good alternatives too. I just use my phone now but itunes was so terrible I barely ever used it with my ipod when I was still using it.",
"title": ""
},
{
"docid": "946ea126eae0ed43396aa7a733be9258",
"text": "From accounting perspective, an unpaid bill for internet services, according to the Accruals Concept, is recorded as a liability under 'Current Liabilities' section of the Balance Sheet. Also as an expense on the Income Statement. So to answer your question it is both: a debt and an expense, however this is only the case at the end of the period. If you manage to pay it before the financial period ends this is simply an expense that is financed by cash or other liquid Asset on the Balance Sheet such as prepayment for example. For private persons you are generally given some time to pay the bill so it is technically a debt (Internet Provider would list you as a debtor on their accounts), but this is not something to worry about unless you are not considering to pay this bill. In which case your account may be sold as part of a factoring and you will then have a debt affecting your credit rating.",
"title": ""
},
{
"docid": "b5825b7937a3c46f4dad210d283bc7aa",
"text": "Also see who has the authority to delete bills or items on bills. This was a huge scam with some servers I've worked with. If you can delete an entire bill that was paid in cash then that's money in your pocket.",
"title": ""
},
{
"docid": "e2f9b8faa0d16414f9b1f39f9b0199f3",
"text": "I think it depends on who is being paid for your app. Do you have a company the is being paid? Or is it you personally? If you have a company then that income will disappear by offsetting it through expenses to get the software developed. If they are paying you personally then you can probably still get the income to disappear by file home-office expenses. I think either way you need to talk to an accountant. If you don't want to mess with it since the amount of income is small then I would think you can file it as additional income (maybe a 1099).",
"title": ""
},
{
"docid": "5bc36bb40421a8f0ee0e21a455342d4e",
"text": "I love Netflix, but mostly for the documentaries. I miss the old History Channel and then later H2 when they were full of documentaries and actually educational and interesting programming. Now they're just reality television like the rest of the crap on cable. While I don't mind the occasional Disney film or other movie on Netflix, I usually still like to own physical copies of movies(like Star Wars) and if I don't care enough to own it, I usually don't care enough to watch it. This doesn't really affect my streaming decisions at all. I still have Amazon Prime(which I've had for over 10 years now because of the 2 day shipping, don't watch much on their streaming service but I have it on my Roku). TBH I can see where Disney may lose money, because I for one have to really want to see something to buy a copy, and I don't care enough about most of their stuff to pay for a streaming sub specifically for their content. In closing, this wont make me pay for their stuff or pirate it, I simply wont watch it(besides seeing Star Wars films in the theater and/or buying the Blu-ray). I suppose I should catch up on what I'd like to see of theirs on Netflix before they remove it all in a year or two.",
"title": ""
},
{
"docid": "b2f800c1869740cfa566bac72a754fd3",
"text": "You should see all the albums I have in a drawer at home not bringing me any joy whatsoever. I'm 48 years old and I've been using a digital streaming source for most of my listening pleasure for the last 10 years.",
"title": ""
},
{
"docid": "2b6a35f1951cf41e56a1603955d3ac58",
"text": "As I have worked for H&R Block I know for a fact that they record all your activity with them for future reference. If it is their opinion that you are obligated to use their service if you use some other service then this, most likely, will affect your future dealings with them. So, ask yourself this question: is reducing their income from you this year worth never being able to deal with them again in future years? The answer to that will give you the answer to your question.",
"title": ""
}
] |
fiqa
|
7ff9308127dcd57222cf64ec5ba033dc
|
File bankruptcy, consolidate, or other options?
|
[
{
"docid": "8a4a05d20eb74ffe6d7a71fe57ba1510",
"text": "If your parents' business isn't viable (regardless of what combination of the economy or their management of it caused it not to be viable) it would seem that you'd be throwing good money after bad to save it. If the whole thing gets paid off, then they get rid of the debt, but the economy will still be in the tank and they'll be going in the hole again. If they think they're five years away from retirement, then they're kidding themselves. They won't be able to retire. They should get bankruptcy advice and should start looking for other sources of income. Maybe sell their house and get something smaller. Have their expenses match their income. Sorry if this sounds harsh but it will be difficult for them to recover from this mess if they're in their late fifties.",
"title": ""
},
{
"docid": "a8ba0fe96cd66931d79d5747d12ed72b",
"text": "If your parents can afford to shell out $1,250 a month for 5 years, they would pretty much have the debt paid off, provided the credit card companies don't start playing games with rates. If that payment is too high, maybe you could kick in $5k every few months to knock the principal down. If they think the business can keep puttering along without losing more money, that may be the way to go. Five years is long enough that the business or property may have recovered some value. Another option, depending on the value of the home, could be a reverse mortgage. I don't know how the economy has affected those programs, but that might be a good option to get the debt cleared away. My grandfather was in a similar position back in the 70's. He owned taverns in NYC that catered to an industrial clientele... the place was booming in the 60s and my grandfather and his brother owned 4 locations at one point. But the death of his brother, post-Vietnam malaise, suburban exodus and shutting of industry really hurt the business, and he ended up selling out his last tavern in 1979 -- which was a dark hour in NYC history and real estate values. A few years later, that building sold for a tremendous amount of money... I believe 10x more. I don't know whether there was a way for his business to survive for another 5-7 years, as I was too young to remember. But I do remember my grandfather (and my father to this day) being melancholy about the whole affair. It's hard to have to work part-time in your 60's and be constantly reminded that your family business -- and to some degree a part of your life -- ended in failure. The stress of keeping things afloat when you're broke is tough. But there's also a mental reward from getting through a tough situation on your own. Good luck!",
"title": ""
},
{
"docid": "4aa168633643cee09f0b068d172e8db9",
"text": "A couple of thoughts from someone who's kind of been there... Is the business viable at all? A lot of people do miss the jumping-off point where the should stop throwing good money after bad and just pull the plug on the business. If the business is not that viable, then selling it might not be an option. If the business is still viable (and I'd get advice from a good accountant on this) then I'd be tempted to try and pull through to until I'd get a good offer for the business. Don't just try to sell it for any price because times are bad if it's self-sustaining and hopefully makes a little profit. I does sound like their business is on the up again and if that's a trend and not a fluke, IMHO pouring more energy into (not money) would be the way to go. Don't make the mistake of buying high and selling low, so to speak. I'm also a little confused re their house - do they own it or do they still owe money on it? If they owe money on it, how are they making their payments? If they close the business, do they have enough income to make the payments still? Before they find another job, even if it's just a part-time job? As to paying off their debts or at least helping with paying them off, I'd only do that if I was in a financial position to gift them the money; anything else is going to wreak havoc with the family dynamics (including co-signing debt for them) and everybody will wish they didn't go there. Ask me how I know. Re debt consolidation, I don't think it's going to do much for them, apart from costing them more money for something they could do themselves. Bankruptcy - well, are they bankrupt or are they looking for the get-out-of-debt-free card? Sorry to be so blunt, but if they're so deep in the hole that they truly have no chance whatsoever to pay off their debt ever, then they're bankrupt. From what you're saying they're able to make the minimum payments they're not really what I'd consider bankrupt... Are your parents on a budget? As duffbeer703 said, depending on how much money the business is making they should be able to pay off the debt within a reasonable amount of time (which again doesn't make them bankrupt).",
"title": ""
},
{
"docid": "6c26cb8169b5246436c64281f34e0b34",
"text": "\"I think you're asking yourself the wrong question. The real question you should be asking yourself is this: \"\"Do I want to a) give my parents a $45,000 gift, b) make them $45,000 loan, or c) neither?\"\" The way you are talking in your question is as if you have the responsibility and authority to manage their lives. Whether they choose bankruptcy, and the associated stigma and/or negative self-image of financial or moral failure, or choose to muddle through and delay retirement to pay off their debt, is their question and their decision. Look, you said that loaning it to them was out, because you'd rather see them retire than continue to work. But what if they want to continue to work? For all the stress they're dealing with now, entrepreneurial people like that are not happy You're mucking about in their lives like you can run it. Stop it. You don't have the right; they're adults. There may come a time when they are too senile to be responsible for themselves, and then you can, and should, step up and take responsibility for them in their old age, just as they did for you when you were a child. But that time is not now. And by the way, from the information you've given, the answer should be C) neither. If giving or loaning them this kind of money taps you out, then you can't afford it.\"",
"title": ""
},
{
"docid": "c41b9a53c96d790c841c235e6ad05cd0",
"text": "\"Tough spot. I'm guessing the credit cards are a personal line of credit in their name and not the company's (the fact that the business can be liquidated separately from your parents means they did at least set up an LLC or similar business entity). Using personal debt to save a company that could have just been dissolved at little cost to their personal credit and finances was, indeed, a very bad move. The best possible end to this scenario for you and your parents would be if your parents could get the debt transferred to the LLC before dissolving it. At this point, with the company in such a long-standing negative situation, I would doubt that any creditor would give the business a loan (which was probably why your parents threw their own good money after bad with personal CCs). They might, in the right circumstances, be able to convince a judge to effectively transfer the debt to the corporate entity before liquidating it. That puts the debt where it should have been in the first place, and the CC companies will have to get in line. That means, in turn, that the card issuers will fight any such motion or decision tooth and nail, as long as there's any other option that gives them more hope of recovering their money. Your parents' only prayer for this to happen is if the CCs were used for the sole purpose of business expenses. If they were living off the CCs as well as using them to pay business debts, a judge, best-case, would only relieve the debts directly related to keeping the business afloat, and they'd be on the hook for what they had been living on. Bankruptcy is definitely an option. They will \"\"re-affirm\"\" their commitment to paying the mortgage and any other debts they can, and under a Chapter 13 the judge will then remand negotiations over what total portion of each card's balance is paid, over what time, and at what rate, to a mediator. Chapter 13 bankruptcy is the less damaging form to your parent's credit; they are at least attempting to make good on the debt. A Chapter 7 would wipe it away completely, but your parents would have to prove that they cannot pay the debt, by any means, and have no hope of ever paying the debt by any means. If they have any retirement savings, anything in their name for grandchildren's college funds, etc, the judge and CC issuers will point to it like a bird dog. Apart from that, their house is safe due to Florida's \"\"homestead\"\" laws, but furniture, appliances, clothing, jewelry, cars and other vehicles, pretty much anything of value that your parents cannot defend as being necessary for life, health, or the performance of whatever jobs they end up taking to dig themselves out of this, are all subject to seizure and auction. They may end up just selling the house anyway because it's too big for what they have left (or will ever have again). I do not, under any circumstance, recommend you putting your own finances at risk in this. You may gift money to help, or provide them a place to live while they get back on their feet, but do not \"\"give till it hurts\"\" for this. It sounds heartless, but if you remove your safety net to save your parents, then what happens if you need it? Your parents aren't going to be able to bail you out, and as a contractor, if you're effectively \"\"doing business as\"\" Reverend Gonzo Contracting, you don't have the debt shield your parents had. It looks like housing's faltering again due to the news that the Fed's going to start backing off; you could need that money to weather a \"\"double-dip\"\" in the housing sector over the next few months, and you may need it soon.\"",
"title": ""
}
] |
[
{
"docid": "2d221a69223e936c8bb1b06b84d2a01c",
"text": "I wouldn't buy a house at this time. Your credit card debt is the most expensive thing you have. Which is to say that you want to get rid of it as soon as possible. The lawyer isn't cheap, and your personal situation is not fully resolved. Congratulations on paying off the IRS, and getting up the 401k to 17.5k. Take care of the two things in paragraph 1, first,and then think about buying a house. You're doing too much good work to have it possibly be derailed by home payments.",
"title": ""
},
{
"docid": "3732c03ce8f43f586a8a38188d3be293",
"text": "This sounds like a crazy idea, but in reality people don't make the wisest decisions when considering bankruptcy in Australia. My suggestion would be to get some advice from an insolvency specialist.",
"title": ""
},
{
"docid": "7d541af5b4da0db28fcb027de43578f3",
"text": "\"You're welcome to throw in the towel and stop paying any time you want. You'll just suffer the consequences of doing so. It sounds like you're concerned about losing your job \"\"in the next few years.\"\" What are you doing to stem this off? Are you building up a side income? Are you building up portable skills -- ones that can be used anywhere? If you think you have a few years left, use them. Build something up. You may be able to recover more quickly, or last longer until you find a new job. Some of my blogging friends have been at it about as long as I have, and they're in high-five, low-six figures now. For blogging. Some did it even faster. All it takes is time. Your expenses for starting a blog are $10/month plus cutting out two hours of TV / drinking / anything else consumer-ish to learn more about your favorite interest, write about it, and interact with the online community. That's just one idea. Season to taste or choose a different meal altogether. Are you frugal? Are you looking for ways to cut expenses? If you can find extra money to save a little bit more and knock out just one of those debts (say, the car), you'll be able to throw that payment at the student loan. Then they'll both be gone, and you can save up a cushion for yourself faster. I just think it's a little weak to give up when you're not really in trouble yet. You're tight, but you can get through that.\"",
"title": ""
},
{
"docid": "31885151bf8a8078618149c4d54eb664",
"text": "\"I debated whether to put this in an answer or a comment, because I'm not sure that this can be answered usefully without a lot more information, which actually would then probably make it a candidate for closing as \"\"too localized\"\". At the very least we would need to know where (which jurisdiction) she is located in. So, speaking in a generic way, the options available as I see them are: Contact the mortgage companies and explain she can't continue to make payments. They will likely foreclose on the properties and if she still ends up owing money after that (if you are in the US this also depends on whether you are in a \"\"non-recourse\"\" state) then she could be declared bankrupt. This is rather the \"\"nuclear option\"\" and definitely not something to be undertaken lightly, but would at least wipe the slate clean and give her some degree of certainty about her situation. Look very carefully at the portfolio of properties and get some proper valuations done on them (depending on where she is located this may be free). Also do a careful analysis of the property sales and rental markets, to see whether property prices / rental rates are going up or down. Then decide on an individual basis whether each property is better kept or sold. You may be able to get discounts on fees if you sell multiple properties in one transaction. This option would require some cold hard analysis and decision making without letting yourselves get emotionally invested in the situation (difficult, I know). Depending on how long she has had the properties for and how she came to own them, it MIGHT be an option to pursue action against whoever advised her to acquire them. Clearly a large portfolio of decaying rental properties is not a suitable investment for a relatively elderly lady and if she only came by them relatively recently, on advice from an investment consultant or similar, you might have some redress there. Another option: could she live in one of the properties herself to reduce costs? If she owns her own home as well then she could sell that, live in the one of the rentals and use the money saved to finance the sale of the other rentals. Aside from these thoughts, one final piece of advice: don't get your own finances tangled up in hers (so don't take out a mortgage against your own property, for example). Obviously if you have the leeway to help her out of your budget then that is great, but I would restrict that to doing things like paying for grocery shopping or whatever. If she is heading for bankruptcy or other financial difficulties, it won't help if you are entangled too.\"",
"title": ""
},
{
"docid": "6717167ff7503e5d6514ba61ba1a135a",
"text": "Absolutely true, but in a bankruptcy situation the best OP can do is win a judgment for breach of contract/fiduciary duty/whatever against Refco, and then get a levy on some assets. He's still just a lien creditor who will be paid after all the secureds in bankruptcy. As MF Global is demonstrating once again, whatever regulations there are to keep clients' money in brokerages sequestered ain't cutting it.",
"title": ""
},
{
"docid": "df123f82aa26686436f8d9f3a76a9d24",
"text": "I've worked on numerous restructurings in the o&g space. I assure you that bankruptcy is not a magical process of wiping away debt. It's been extremely common over the last 3 years in the energy industry. It'd be far more aggressive to say that a business is valued at $5 billion when in reality they have $5 billion in debt that traded at pennies on the dollar.",
"title": ""
},
{
"docid": "c248a8a826ac97c964e8a86586fb5aaa",
"text": "Just found your comment as I was searching for 'judicial dissolution'. Depending on your state, your partner (by starting another business which is in direct competition to this business) has committed a breach of fiduciary duty, a breach of the implied covenant of good faith and fair dealing, and maybe fraud. I am currently dealing with a similar situation. The solution that I am pursuing is judicial dissolution. I will say, does the business own the web domain name, or do you personally? In my case, I purchased the domain myself, and I am simply going to redirect to a similar (but different) domain, and claim it as a rebranding effort. It sucks. A lot. But it's a valuable lesson learned (for me, anyway). Best of luck.",
"title": ""
},
{
"docid": "1569f93563ab208396b84015c60d687d",
"text": "* Absolutely agree with /u/IsAnAlpaca * You /must/ not agree to this without seeing his balance sheet. * That means assets and liabilities, but also ask for the last 12 months' cash flow * Inability or unwillingness to provide any of those things is a HUGE no-go red flag.",
"title": ""
},
{
"docid": "840ec552c2915c04ef4a5ee344159633",
"text": "There are two common filings under the bankruptcy code. Chapter 11 provides for the company to be reorganized and prevents the creditors from suing for their debts for a period. Hopefully the company becomes profitable and can pay the creditors later, possibly negotiating a reduction in debt, or an exchange of stock for debt. Chapter 7 is liquidation, in which the company is sold with the proceeds going to the creditors. (I may have some of this wrong, as I am just writing this off the top of my head.)",
"title": ""
},
{
"docid": "a46e30f4bc33d0e7cd964393fe909451",
"text": "Beg, plead, whimper, and hope they take pity on you. Sorry, but there's no way to force someone to take less than you legitimately owe them except to declare bankrupty, and even that may not do it. If they aren't interested in throwing away $3000, your best bet really is to try to arrange a payment plan, or to get a loan from somewhere and pay that back over time. Of course either of those options is likely to cost you interest, but that's what happens... I wish I could say something else, but there really isn't any good news here.",
"title": ""
},
{
"docid": "6ceb5dbeb5e6d6792bdb70623694af15",
"text": "\"You sound like you're already doing a lot to improve your situation... paying off the credit cards, paying off the taxes, started your 401k... I'm in a similar situation, credit ruined & savings gone after the divorce. I know it feels like you're just spinning your wheels, but look at it this way: every monthly payment you make on a debt directly increases your net worth. Paying those bills regularly is one of the single best things you can do right now. As for how you can improve your situation, only two things really jump out at me: 1) $1,300 in rent, plus $300 in utilities, seems quite high for a single man. I don't know the housing costs in your area, though. Depending on where you live, you could cut that in half while still living alone, or get a roommate and save even more. You might have to accept a \"\"suboptimal\"\" living arrangement (like a smaller apartment), but we all have to sacrifice at times. 2) That last $1,000... you really need to budget how it's being spent. Consider cooking at home more / eating out less, or trading in your car for one with lower insurance premiums. Or spending less money on the kids. You say it's for their entertainment, but don't say what that is... are we talking about going to the movies once a month, or rock concerts twice a week? 3) If the kids are on their own for college, it's not the end of the world. I know you want to provide the best future you can for them... help them get good grades, and it'll do more for them than any amount of money. After all those & any other ways you find to save money, even if you can only put a hundred bucks in a savings account at the end of the month (and I'd be surprised if you couldn't put five), do it. Put it in, and leave it there, despite the temptation to take it out and spend it.\"",
"title": ""
},
{
"docid": "7e0a8b11e1ce78276cfa13263148684d",
"text": "Keep in mind collectors are trying to get you to react emotionally, which is having some effect as you are considering bankruptcy. ...threatening me with judgments... Did they threaten to take away your first born son too? Many of their threats are empty. Even if you do have a judgement, you may be able to negotiate with the lawyer that is handling the judgement. Once you don't pay them anything for a few years, they are more likely to negotiate. It is good that you recognize that it was your dumb decisions that got you into this mess. Once on the other side of all this cleaning up that you have to do what will you change so this does not happen again? What raises a red flag for me is that you are worried about your credit score. Trying to have a good credit score is what got you into this mess in the first place. Stop borrowing.",
"title": ""
},
{
"docid": "b6620011e11946352b7885b765e5b2f4",
"text": "\"Assuming by your username that you are Dutch and this concerns invoices under Dutch law, there are a couple of ways to go about it. First of all, we don't have \"\"small claims court\"\" the way the US does. That would make life a lot easier, but we don't. You can go all legal on him and go through court procedures. The first step would probably be the [\"\"kantongerecht\"\"](http://nl.wikipedia.org/wiki/Kantongerecht) though there are some limitations to what you can do there. You don't need to have a lawyer at the kantongerecht, but chances of fucking up are high if you don't have experience or some experienced help. It's also likely to eat up more of your time than it's worth. And even if you get a favorable judgement there's still the matter of collecting. The second option, which nearly all companies in the Netherlands use, is to turn it over to an \"\"incassoburo\"\" (collections agency). For either a fee or a percentage they'll go after the miscreant, usually tacking that fee onto the money owed so it shouldn't cost you too much. The downside is that, again, they're not always successful if the non-paying person is either extraordinarily obstinate, already in a lot of debt, or if you're looking at him/her/it going bankrupt or being in \"\"schuldhulpverlening\"\" (debt counseling, which in some cases comes with legal protections). The third way, if it's a viable debt but you're willing to take a loss in exchange for money now, is to sell off the debt to a factoring agency. They'll assess it and pay out the open invoice to you, minus costs and/or a percentage depending on how they view their odds of collecting on it. It's then their debt, and they'll go after the original debtor without you ever needing to bother with it again. It's a tough position to be in. I've had to write off some invoices over time, some only a couple'hundred, some in the 5-figure range when a major customer of mine went tits-up. And I just happened to have an interesting conversation yesterday with someone who's more into the commercial side of my line of work. I learned that some relatively big name potential clients are looking more and more like a debt-ridden empty shell, so they went on the list of companies to keep a sharp eye on in case I do business with them. In future cases, keep on top of payment t&c, start reminding (\"\"aanmaning\"\") as soon as they miss their pay-by date as the first documented step towards taking action against them, and if it's a common problem try looking at factoring companies or insurance against non payment. It will cost you some margin, but increase your security.\"",
"title": ""
},
{
"docid": "b33667625868aa72db975098d0a594ef",
"text": "I'm afraid you're not going to get any good news here. The US government infused billions of dollars in capital as part of the bankruptcy deal. The old shares have all been cancelled and the only value they might have to you are as losses to offset other gains. I would definitely contact a tax professional to look at your current and previous returns to create a plan that best takes advantage of an awful situation. It breaks my heart to even think about it.",
"title": ""
},
{
"docid": "9f9c661e50e60782e8737963f1e16b86",
"text": "The value of an option has 2 components, the extrinsic or time value element and the intrinsic value from the difference in the strike price and the underlying asset price. With either an American or European option the intrinsic value of a call option can be 'locked in' any time by selling the same amount of the underlying asset (whether that be a stock, a future etc). Further, the time value of any option can be monitised by delta hedging the option, i.e. buying or selling an amount of the underlying asset weighted by the measure of certainty (delta) of the option being in the money at expiry. Instead, the extra value of the American option comes from the financial benefit of being able to realise the value of the underlying asset early. For a dividend paying stock this will predominantly be the dividend. But for non-dividend paying stocks or futures, the buyer of an in-the-money option can realise their intrinsic gains on the option early and earn interest on the profits today. But what they sacrifice is the timevalue of the option. However when an option becomes very in the money and the delta approaches 1 or -1, the discounting of the intrinsic value (i.e. the extra amount a future cash flow is worth each day as we draw closer to payment) becomes larger than the 'theta' or time value decay of the option. Then it becomes optimal to early exercise, abandon the optionality and realise the monetary gains upfront. For a non-dividend paying stock, the value of the American call option is actually the same as the European. The spot price of the stock will be lower than the forward price at expiry discounted by the risk free rate (or your cost of funding). This will exactly offset the monetary gain by exercising early and banking the proceeds. However for an option on a future, the value today of the underlying asset (the future) is the same as at expiry and its possible to fully realise the interest earned on the money received today. Hence the American call option is worth more. For both examples the American put option is worth more, slightly more so for the stock. As the stock's spot price is lower than the forward price, the owner of the put option realises a higher (undiscounted) intrinsic profit from selling the stock at the higher strike price today than waiting till expiry, as well as realising the interest earned. Liquidity may influence the perceived value of being able to exercise early but its not a tangible factor that is added to the commonly used maths of the option valuation, and isn't really a consideration for most of the assets that have tradeable option markets. It's also important to remember at any point in the life of the option, you don't know the future price path. You're only modelling the distribution of probable outcomes. What subsequently happens after you early exercise an American option no longer has any bearing on its value; this is now zero! Whether the stock subsequently crashes in price is irrelevent. What is relevant is that when you early exercise a call you 'give up' all potential upside protected by the limit to your downside from the strike price.",
"title": ""
}
] |
fiqa
|
e07168a63a0e514ec2dabef9cf65c6db
|
Are companies in California obliged to provide invoices?
|
[
{
"docid": "769c576c16662129867297ce0d808f29",
"text": "We run into this all the time with our EU clients. As far as I can tell, the only requirements when it comes to invoicing have to do with sales tax, which is determined at the state level, and only in the case that items are taxable. It seems that the service provided to you is not taxable and so there is no obligation under Californian law to provide you with the invoice you need. That said, it would be nice to provide this information to you as a courtesy. We don't provide the information typically required by EU tax authorities on our receipts either, but whenever one of our EU clients requests a more formal invoice we gladly send them one.",
"title": ""
}
] |
[
{
"docid": "5bf683f73eaca9db5871c953efed4ff7",
"text": "\"This is an answer grounded in reality, not advice. Most states have no means of enforcing their foreign business entity registration statutes. Some states never even codified consequences. (California is a notable exception.). Some states have 'business licenses' that you need in order to defend your entity in court, but will retroactively apply the corporate veil when you get the license. The \"\"do I have to register\"\" question is analogous to asking a barber if you need a haircut. But this doesn't absolve you of looking in the mirror (doing your research). Registration and INCOME taxes are different stories. If a state calls their fee a franchise tax and it is applicable and there are real consequences for not, then you will have to pay that tax. Anyway, this isn't advocating breaking the law, but since it describes ignoring toothless state-chartered agencies, then there are people that will disagree with this post, despite being in line with business climate in the United States. Hope that helps\"",
"title": ""
},
{
"docid": "0493d4f827147a296d9f105fe8748726",
"text": "They might be concerned with having to charge sales tax in California if they have a single employee in California, creating a nexus situation with CA. If that's the case, or even if there is some other issue, you might be able to switch from being a W2 employee to being a 1099 independent contractor. There's a host of additional issues this could cause, but it alleviate the nexus problem (if THAT is the problem). Here's a terrible solution you can bring up, but shouldn't do under any circumstances: offer to set up a mailing address in an allowed State, and give your company plausible deniability with regards to your legal residence. Obviously, this is a terrible idea, but exploring that option with your employer would help you suss out what the actual objection is. Ultimately, anything said here about the reason is just conjecture. You need to talk to the decision maker(s) about the real reason behind the denial. Then you can talk through solutions. Also - don't forget that you can get another job. If you are serious about a future with your girlfriend, you should put that relationship ahead of your current employment comfort and security. If you are willing to walk away from your position, you are in a much better situation to negotiate.",
"title": ""
},
{
"docid": "60d82de5d4c8aa8c5a7cc52e50bd1a35",
"text": "While some of that money was made overseas, in many cases half or more was made domestically. I'm not pretending that a company should have any obligation to pay taxes to America on money earned abroad, but I am saying they have an obligation to pay taxes to America earned at home. If an American company cannot discern between domestic and foreign sales, that sounds like a them problem, not a me problem, and we'll assess the full amount. Something tells me they'll be able to report the portion they made domestically.",
"title": ""
},
{
"docid": "66e6381d2dc24069e7834a8319e6a8e8",
"text": "Generally these are public companies set up to do some particular thing and get revenue from use. And yes, the elected representatives signed the municpalities on to these things. If you co-sign a loan, sooner or later you may have to pay up.",
"title": ""
},
{
"docid": "eabefe04b79362128f216635d428fa52",
"text": "Yes, However if you live in the USA a lot of companies will refuse to sent you any report and will not let you take part in “right issues” as they don’t wish to come under USA investment law.",
"title": ""
},
{
"docid": "be8d414a0fd1c029f1c9ad663a449c4d",
"text": "I do NOT know the full answer but I know here are some important factors that you need to consider : Do you have a physical location in the United States? Are you working directly from Canada? With a office/business location in the United States your tax obligation to the US is much higher. Most likely you will owe some to the state in which your business is located in Payroll Tax : your employer will likely want to look into Payroll tax, because in most states the payroll tax threshold is very low, they will need to file payroll tax on their full-time, part-time employees, as well as contractor soon as the total amount in a fiscal year exceeds the threshold Related to No.1 do you have a social security number and are you legally entitled to working in the States as an individual. You will be receiving the appropriate forms and tax withholding info Related to No.3 if you don't have that already, you may want to look into how to obtain permissions to conduct business within the United States. Technically, you are a one person consulting service provider. You may need to register with a particular state to obtain the permit. The agency will also be able to provide you with ample tax documentations. Chances are you will really need to piece together multiple information from various sources to resolve this one as the situation is specific. To start, look into consulting service / contractor work permit and tax info for the state your client is located in. Work from state level up to kick start your research then research federal level, which can be more complex as it is technically international business service for Canada-US",
"title": ""
},
{
"docid": "2948cd0e63af02de801485656a7996bc",
"text": "\"Tax US corporate \"\"persons (citizens)\"\" under the same regime as US human persons/citizens, i.e., file/pay taxes on all income earned annually with deductions for foreign taxes paid. Problem solved for both shareholders and governments. [US Citizens and Resident Aliens Abroad - Filing Requirements](https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad-filing-requirements) >If you are a U.S. citizen or resident alien living or traveling outside the United States, **you generally are required to file income tax returns, estate tax returns, and gift tax returns and pay estimated tax in the same way as those residing in the United States.** Thing is, we know solving this isn't the point. It is to misdirect and talk about everything, but the actual issues, i.e., the discrepancy between tax regimes applied to persons and the massive inequality it creates in tax responsibility. Because that would lead to the simple solutions that the populace need/crave. My guess is most US human persons would LOVE to pay taxes only on what was left AFTER they covered their expenses.\"",
"title": ""
},
{
"docid": "32ac818960c21a78d7a83f46630da254",
"text": "I don't know about down there but up here in Canada, unless those companies have some track history, you ARE personally responsible. Or at least that's how I remember it; someone feel free to correct me... (Unless you were wise enough and had enough capital to begin with a shell company)",
"title": ""
},
{
"docid": "3fd14cd78e53580cfc1beb0f4514c885",
"text": "I believe that the form you will need to fill out for the company is the IRS' W-8ECI form. My US-based Fortune 50 company pays my rent in Germany, and had my landlord fill one out so that they would not need to do any withholding for the payments. From this IRS site on withholding income for payments to Foreign Individuals: Withholding exemption. In most cases, you do not need to withhold tax on income if you receive a Form W-8ECI on which a foreign payee represents that: The foreign payee is the beneficial owner of the income, The income is effectively connected with the conduct of a trade or business in the United States, and The income is includible in the payee's gross income. Good luck!",
"title": ""
},
{
"docid": "f92d29b145907a0e067d913ff84eeed4",
"text": "\"The confusion comes from ambiguity in popular belief -- that businesses are required to accept x_y_x as payment. In reality, a business can state the terms of a transaction to their pleasure. On the other hand, debt is different -- no lender can refuse cash or other legal tender for repayment of debt. Sometimes, people try to split hairs and argue \"\"Well, if I eat a steak and I owe the restaurant $100, they should have to accept my $100 as tender for the debt of my meal.\"\" Not true. The restaurant isn't giving you a line of credit, they're billing you after services rendered, and your payment is due on their terms.\"",
"title": ""
},
{
"docid": "aa58feb088d2ac17ee263e7ef4eaa4b8",
"text": "With the corruption that goes on in these countries (China, Thailand, Etc), it's difficult for (US-UK) companies to comply with anti-corruption laws and still do business there. These countries demand bribes for permits, use of land etc. and if you don't pay expect to wait for these necessary things indefinetly...",
"title": ""
},
{
"docid": "c54cb7e79a7720dd0859a397335a548c",
"text": "No. There's no personal responsibility per se if you set up a corporation, but if you don't have a track record a creditor will likely insist that you personally guarantee the debts of the corporation. Beyond that, personal responsibility would be the result of a piercing of the corporate veil, which is something the courts are unlikely to do unless there is indicia of fraud or the like. There are also some statutory provisions that can lead to personal liability of a corporation's directors (e.g. unpaid wages), but I don't think that's really what this thread is getting at.",
"title": ""
},
{
"docid": "54610e4cac8721bba8b2690d2e6ba2cf",
"text": "\"Re the business license - in California business licenses are given by the municipal/county governments, so you'll have to check that with your city hall or county office. Re taxes - yes, you'll have to pay taxes, as with any income. Services are considered \"\"imputed income\"\", and generally you'd recognize income to the extent they would be paying had they been paying the full price (or the actual cost of services provided, if more). Since this is a hobby and not a for-profit enterprise, your deductions may be limited by the actual income and the 2% AGI threshold. See more here.\"",
"title": ""
},
{
"docid": "b228fd9c49d849a76e562c6128b35a42",
"text": "The key here is that you are defacto running your own company no matter if you acknowledge it or not. In the end these questions have the goal of deciding if you can and will repay the loan. Presumably you filed taxes on your income. These can be shown to the loan officer as proof you have the ability to repay your loan. Running your freelancing as a business has advantages of being able to deduct normal expenses for running the business from your revenue. I am not sure how business cards improves your credit worthiness as they can be had for $10 in about an hour.",
"title": ""
},
{
"docid": "32feefcea4d58b75470f821ea0aaa317",
"text": "You would still be the legal owner of the shares, so you would almost certainly need to transfer them to a broker than supports the Hong Kong Stock Exchange (which allows you to trade on the Shanghai exchange). In order to delist they would need to go through a process which would include enabling shareholders to continue to access their holdings.",
"title": ""
}
] |
fiqa
|
78261fe624c99b6fd514d6d85d9e385d
|
Obtaining Private Prospectuses
|
[
{
"docid": "0498d551c7e0a4ad4de52bfab30b7d3e",
"text": "How can I get quarterly information about private companies? Ask the owner(s). Unelss you have a relationship and they're interested in helping you, they will likely tell you no as there's no compelling reason for them to do so. It's a huge benefit of not taking a company public.",
"title": ""
}
] |
[
{
"docid": "fcaf54599e1643faabf88cf789396fb3",
"text": "I guess you are making quite a bit of assumptions without clarifying what you are trying to achieve. As a non-resident you cannot incorporate a sole proprietorship in Singapore. You have to be citizen. Alternatively you can register a company that has its own norms like minimum number of directors and some being Singapore national, etc. As you are paying dividend and not salary to yourself, the company will be required to pay taxes on gains. So all consulting money is gain as there is no expense. The balance when you transfer to Spain would potentially get taxed as income to you subject to DTAA",
"title": ""
},
{
"docid": "3b872a6d02dd992b30960d6d7e9b2b31",
"text": "\"There are two kinds of engagements in an IPO. The traditional kind where the Banks assume the risks of unsold shares. Money coming out of their pockets to hold shares no one wants. That is the main risk. No one buying the stock that the bank is holding. Secondly, there is a \"\"best efforts\"\" engagement. This means that bank will put forth its best effort to sell the shares, but will not be on the hook if any don't sell. This is used for small cap / risky companies. Source: Author/investment banker\"",
"title": ""
},
{
"docid": "4ad78c252c10c6b6a1ea91d8e2332a20",
"text": "\"A company whose stock is available for sale to the public is called a publicly-held or publicly-traded company. A public company's stock is sold on a stock exchange, and anyone with money can buy shares through a stock broker. This contrasts with a privately-held company, in which the shares are not traded on a stock exchange. In order to invest in a private company, you would need to talk directly to the current owners of the company. Finding out if a company is public or private is fairly easy. One way to check this is to look at the Wikipedia page for the company. For example, if you take a look at the Apple page, on the right sidebar you'll see \"\"Type: Public\"\", followed by the stock exchange ticker symbol \"\"AAPL\"\". Compare this to the page for Mars, Inc.; on that page, you'll see \"\"Type: Private\"\", and no stock ticker symbol listed. Another way to tell: If you can find a quote for a share price on a financial site (such as Google Finance or Yahoo Finance), you can buy the stock. You won't find a stock price for Mars, Inc. anywhere, because the stock is not publicly traded.\"",
"title": ""
},
{
"docid": "eb97f072861c891cdc887a8d726ad647",
"text": "couple questions for clarification: 1. Investment firm is a pretty broad term. Do you mean Registered Investment Advisory firm or broker/dealer, or something else? 2. Are you asking if they can reveal who they generally custody assets with? if so yes, they are always willing to give this out and many firms use multiple custodians. If you are asking if they can reveal client information and where the assets are held, then no, absolutely not, the only reason they could legally give this out is if the feds inquired or if a court order was issued.",
"title": ""
},
{
"docid": "2ca73cc0c28838ed1dafb94c0b3cf5db",
"text": "\"Shares sold to private investors are sold using private contracts and do not adhere to the same level of strict regulations as publicly traded shares. You may have different classes of shares in the company with different strings attached to them, depending on the deals made with the investors at the time. Since public cannot negotiate, the IPO prospectus is in fact the investment contract between the company and the public, and the requirements to what the company can put there are much stricter than private sales. Bob may not be able to sell his \"\"special\"\" stocks on the public exchange, as the IPO specifies which class of stock is being listed for trading, and Bob's is not the same class. He can sell it on the OTC market, which is less regulated, and then the buyer has to do his due diligence. Yes, OTC-sold stocks may have strings attached to them (for example a buy back option at a preset time and price).\"",
"title": ""
},
{
"docid": "cafd80031a7f88125c0fa2b02d28426a",
"text": "I work for an investment group in Central Asia in private equity/project investment. We use SPV and collateralized convertible loans to enter a project, we issue the loan at our own commercial bank. For each industry, the exact mechanisms vary. In most outcomes, we end up in control of some very important part of the business, and even if we have minority shares on paper, no decision is made w/o our approval. For example, we enter cosntruction projects via aquisiton of land and pledging the land as equity for an SPV, then renting it to the project operator. Basically, when you enter a business, be in control of the decisions there, or have significant leverage on the operations. Have your own operating professionals to run it. Profit.",
"title": ""
},
{
"docid": "d19f5919f9a91c4219b84859430d0127",
"text": "Ok, that's totally different then. The legislation that you were mentioning doesn't apply to prop shops that trade derivatives. If you want to end up in the equities world, then a place that requires those licenses that will pay for it doesn't seem like a bad deal.",
"title": ""
},
{
"docid": "84684ca8001220b80db21a461e7b2e21",
"text": "You won't be able to know the trading activity in a timely, actionable method in most cases. The exception is if the investor (individual, fund, holding company, non-profit foundation, etc) is a large shareholder of a specific company and therefore required to file their intentions to buy or sell with the SEC. The threshold for this is usually if they own 5% or greater of the outstanding shares. You can, however, get a sense of the holdings for some of the entities you mention with some sleuthing. Publicly-Traded Holding Companies Since you mention Warren Buffett, Berkshire Hathaway is an example of this. Publicly traded companies (that are traded on a US-based exchange) have to file numerous reports with the SEC. Of these, you should review their Annual Report and monitor all filings on the SEC's website. Here's the link to the Berkshire Hathaway profile. Private Foundations Harvard and Yale have private, non-profit foundations. The first place to look would be at the Form 990 filings each is required to file with the IRS. Two sources for these filings are GuideStar.org and the FoundationCenter.org. Keep in mind that if the private foundation is a large enough shareholder in a specific company, they, too, will be required to file their intentions to buy or sell shares in that company. Private Individuals Unless the individual publicly releases their current holdings, the only insight you may get is what they say publicly or have to disclose — again, if they are a major shareholder.",
"title": ""
},
{
"docid": "2558005d3942eb1f47665d8d63608efe",
"text": "Yes you can get them from your broker. Two main advantages I can see are:",
"title": ""
},
{
"docid": "8677ffa9c1ac3a3f5bca189a6db0e873",
"text": "You cannot trade in pre-IPO shares of companies like Facebook without being an accredited investor. If a website or company doesn't mention that requirement, they are a scam. A legitimate market for private shares is SecondMarket.",
"title": ""
},
{
"docid": "e43efd4d3a220dd0bfa96725213ba2ef",
"text": "All request and new cases are productively evaluated and screened online at Contact Us. Introductory consultations, LLC formations, and records for routine land and business exchanges are taken care of only online at prudent level expenses. A scope of Delaware llc in-office benefits after the underlying conference is offered yet at expenses higher than those cited for online things. We will keep you refreshed all through the procedure. We give steady correspondence and continuous notices as we process your incorporation.",
"title": ""
},
{
"docid": "cdede2d6ab1995907a3815ae89f6983d",
"text": "it sounds like you don't have experience in this, and neither does your *investor*; which is a recipe for disaster (pun intended). Your first order of business is to check whether your investor is an *Accredited Investor* (google to see what it means), if s/he's not, **walk away**. If s/he's an accredited investor, find a lawyer who can help you navigate this process, however these are the issues: * lawyers are expensive, and lawyers who have experience in these type of transactions are even more expensive * you actually need 2 lawyers, one for you and one for the investor * if neither of you have experience, there will be a lot more billable hours from the lawyers..... In principle this can go 3 ways: 1. The investors give you a loan, you pay them interests on a periodic basis, and then also principal. Items to be negotiated: interest rates, repayment schedule, collateral, personal guarantees. Highly unlikely this is what the investors wants. 2. The Investors get equity. items to be negotiated: your compensation, % of ownership, how profits are divided, how profits are paid; who gets to decide what. 3. A combination of 1 and 2 above, a *Convertible Note*. There's a lot more, too much for a Reddit post. There's not an easy ELI5.",
"title": ""
},
{
"docid": "2095856000a43ba310d2ac61948c6cb0",
"text": "Stuff I wish I had known, based on having done the following: Obtained employment at a startup that grants Incentive Stock Options (ISOs); Early-exercised a portion of my options when fair market value was very close to my strike price to minimize AMT; made a section 83b) election and paid my AMT up front for that tax year. All this (the exercise and the AMT) was done out of pocket. I've never see EquityZen or Equidate mention anything about loans for your exercise. My understanding is they help you sell your shares once you actually own them. Stayed at said startup long enough to have my exercised portion of these ISOs vest and count as long term capital gains; Tried to sell them on both EquityZen and Equidate with no success, due to not meeting their transaction minimums. Initial contact with EquityZen was very friendly and helpful, and I even got a notice about a potential sale, but then they hired an intern to answer emails and I remember his responses being particularly dismissive, as if I was wasting their time by trying to sell such a small amount of stock. So that didn't go anywhere. Equidate was a little more friendly and was open to the option of pooling shares with other employees to make a sale in order to meet their minimum, but that never happened either. My advice, if you're thinking about exercising and you're worried about liquidity on the secondary markets, would be to find out what the minimums would be for your specific company on these platforms before you plunk any cash down. Eventually brought my request for liquidity back to the company who helped connect me with an interested external buyer, and we completed the transaction that way. As for employer approval - there's really no reason or basis that your company wouldn't allow it (if you paid to exercise then the shares are yours to sell, though the company may have a right of first refusal). It's not really in the company's best interest to have their shares be illiquid on the secondary markets, since that sends a bad signal to potential investors and future employees.",
"title": ""
},
{
"docid": "f5f20c9dfd3239e234d66385fb395d15",
"text": "What I think was being asked (and so this is how I interpreted it) is not the transition from public to private, but a corporation itself buying all its shares back, and as a result having no shareholders. In this case we could envision that all outstanding shares would be become treasury stock. My argument was that this would never happen in a practical setting. Obviously, if you interpret the question differently, for instance to be about all the shares of firm being purchased by someone else (as in a private equity buyout), you get very different answers about practicality. So I'm not disagreeing with you at all, I just read the question differently.",
"title": ""
},
{
"docid": "02652a2907593af155500446726db5b3",
"text": "Usually your best bet for this sort of thing is to look for referrals from people you trust. If you have a lawyer or other trusted advisor, ask them.",
"title": ""
}
] |
fiqa
|
8a94a93c4267afc2120c04e7dd722224
|
What amount of money can a corporation spend on entertainment
|
[
{
"docid": "900adb9bbdf3136da55ded446a22ad2b",
"text": "\"There is no simple rule like \"\"you can/can't spend more/less than $X per person.\"\" Instead there is a reasonableness test. There is such a thing as an audit of just your travel and entertainment expenses - I know because I've had one for my Ontario corporation. I've deducted company Christmas parties, and going-away dinners for departing employees, without incident. (You know, I presume, about only deducting half of certain expenses?) If the reason for the entertainment is to acquire or keep either employees or clients, there shouldn't be a problem. Things are slightly trickier with very small companies. Microsoft can send an entire team to Hawaii, with their families, as a reward at the end of a tough project, and deduct it. You probably can't send yourself as a similar reward. If your party is strictly for your neighbours, personal friends, and close family, with no clients, potential clients, employees, potential employees, suppliers, or potential suppliers in attendance, then no, don't deduct it. If you imagine yourself telling an auditor why you threw the party and why the business funded it, you'll know whether it's ok to do it or not.\"",
"title": ""
}
] |
[
{
"docid": "c7f98dd7ed1bf4829b4c4624c3f71b51",
"text": "\"You should probably have a tax professional help you with that (generally advisable when doing corporation returns, even if its a small S corp with a single shareholder). Some of it may be deductible, depending on the tax-exemption status of the recipients. Some may be deductible as business expenses. To address Chris's comment: Generally you can deduct as a business on your 1120S anything that is necessary and ordinary for your business. Charitable deductions flow through to your personal 1040, so Colin's reference to pub 526 is the right place to look at (if it was a C-corp, it might be different). Advertisement costs is a necessary and ordinary expense for any business, but you need to look at the essence of the transaction. Did you expect the sponsorship to provide you any new clients? Did you anticipate additional exposure to the potential customers? Was the investment (80 hours of your work) similar to the costs of paid advertisement for the same audience? If so - it is probably a business expense. While you can't deduct the time on its own, you can deduct the salary you paid yourself for working on this, materials, attributed depreciation, etc. If you can't justify it as advertisement, then its a donation, and then you cannot deduct it (because you did receive something in return). It might not be allowed as a business expense, and you might be required to consider it as \"\"personal use\"\", i.e.: salary.\"",
"title": ""
},
{
"docid": "b49f655735cfdc44b2071ef441654b73",
"text": "My wife was once on a game show. The income was 1099 and wholly unrelated to gambling. I did offset the hotel cost on a schedule C against it (and filed a California return to get back the withholding) but a television appearance for a prize is not gambling. It is pay for a performance and she didn't risk any of her own money. Your friend's 8k loss can only offset casino or lottery winnings, sorry.",
"title": ""
},
{
"docid": "68c4d6b201926c7dc2dbd6098be0d795",
"text": "\"It is definitely legal, however none of such expenses will be allowed as a tax deduction for the corporation. Basically, you'll end up paying more to maintain the entity and pay taxes on its income (the rent you're paying to yourself as a corporation) at corporate rates, for no apparent benefit. Being the director/executive in the corporation will make you liable for whatever the corporation is liable, so liability isn't going away. The reason corporation is considered \"\"limited liability\"\" for owners is because shareholders are shielded from the corporate liability. Not directors or executives (which are explicitly not shielded).\"",
"title": ""
},
{
"docid": "81f412c4594395d3255551ceadf55a54",
"text": "I'm not business-savvy, but that seems like a very good idea. My wife works for a not-for-profit company, yet the CEO still makes $8,000,000 a year, *not* counting bonuses. I think in a for-profit, the CEO could easily afford to pay more employees to fill the gap made by decreasing the free labor he's used to.",
"title": ""
},
{
"docid": "6a47d7723009c5ace191549b1a1572d2",
"text": "If you look at page 27 of their 10Q Jan 2017, it clarifies their streaming content liabilities. http://files.shareholder.com/downloads/NFLX/4914912502x0xS1628280-17-496/1065280/filing.pdf Technically, the total liabilities comes to $20b. Depending on who your accountant is, the amount can be as you have stated/referred to, but in real terms, it's higher. The magic of including <1 year vs all of it. Tesla does the same shit with their accounting.",
"title": ""
},
{
"docid": "11e8951f9d52f4e20ebbc8e5edc325be",
"text": "get into the 21st century. there are millions of artists willing to make videos, music, and other forms of entertainment for FREE. the music and hollywood industry are NOT entitled to profits. they lose money because of bad business models that don't evolve to a changing entertainment paradigm",
"title": ""
},
{
"docid": "8549e17945a4d8a46afa30c91f421a0e",
"text": "I don't know of any rule of thumb for travel. In general, what you spend on entertainment should be what you have left after paying for the more mundane things in life -- housing, food, electricity, and so on -- and setting aside reasonable amounts for retirement and emergencies. Entertainment varies widely as a percentage of one's income. Someone making minimum wage and trying to support a sick wife and three kids probably has pretty much zero left over for entertainment. Someone who makes a million a year and has no debts might spend 50% or more of his income on entertainment. Yes, I've heard rules of thumb for charity, housing, and retirement that are probably at least useful ballparks. But for entertainment? No, I think that's just what's left over.",
"title": ""
},
{
"docid": "8357a729b20014c82aa2ce046b89fe1c",
"text": "\"Gambling is perhaps not well defined, but it certainly doesn't include things like reality show winnings. However, it is possible he could deduct something for this. If the reality show qualifies as a \"\"hobby\"\", and his expenses exceed the 2% of AGI requirement, it's possible he could deduct those airplane tickets and such. That deduction is explained in Publication 529.\"",
"title": ""
},
{
"docid": "84c58736875f54cb1990e281c042cc6e",
"text": "One thing I thought of when I heard this was first announced, is how theaters actually make money. Theaters don’t make much from the movies they show, since studios take a huge portion of ticket sales for themselves, especially at release - theaters make money with concessions and value add services, which would still be in full effect even on this “movie a day” subscription model. I’m no expert in the industry though, so I could be completely wrong here, but I’d imagine if theaters have a limitation on the pass in terms of how long a movie must be out before a pass can be used to see it (thereby avoiding the super high studio ticket cost) then they can still make good money from people dropping 30 bucks for popcorn, a drink and candy before they go in to see the movie.",
"title": ""
},
{
"docid": "4358e99254d6af312389bce07cbf9e75",
"text": "I think a labor management issue explains the high cost of popcorn. Some weeks theaters are loaded with patrons and other weeks there are many fewer patrons. If popcorn were priced so that most patrons bought some the theater manager would have to have lots of employees to sell popcorn on the really busy days. The manager would have to cover the cost of wages on the slow days. A simple solution would be to adjust employee hours. To a certain extent I suspect this is done. If you look at the situation from the standpoint of the employee being sent home early or being told not to work tomorrow or, perhaps for the next week because the theater has a bunch of bombs, is not a good situation. A job in popcorn sales is probably not a high paying job so the employees may just quit and they may do this, not by giving notice, but rather by not showing up for a scheduled shift. The result of this is that managers determine the maximum number of employees they can hire if there theater has low drawing movies and they set the price of popcorn so that when the theater is filled this number of employees will not be overwhelmed by patron buying popcorn. At least not to the extent that the start of the movie has to be delayed.",
"title": ""
},
{
"docid": "653107501e59e64058ee6d8681000ae3",
"text": "Here is an example for you. We have a fictional company. It's called MoneyCorp. Its job is to own money, and that's all. Right now it owns $10,000. It doesn't do anything special with that $10,000 - it stores it in a bank account, and whenever it earns interest gives it to the shareholders as a dividend. Also, it doesn't have any expenses at all, and doesn't pay taxes, and is otherwise magic so that it doesn't have to worry about distractions from its mathematical perfection. There are 10,000 shares of MoneyCorp, each worth exactly $1. However, they may trade for more or less than $1 on the stock market, because it's a free market and people trading stock on the stock market can trade at whatever price two people agree on. Scenario 1. MoneyCorp wants to expand. They sell 90,000 shares for $1 each. The money goes in the same bank account at the same interest rate. Do the original shareholders see a change? No. 100,000 shares, $100,000, still $1/share. No problem. This is the ideal situation. Scenario 2: MoneyCorp sells 90,000 shares for less than the current price, $0.50 each. Do the original shareholders lose out? YES. It now has something like $55,000 and 100,000 shares. Each share is now worth $0.55. The company has given away valuable equity to new shareholders. That's bad. Why didn't they get more money from those guys? Scenario 3: MoneyCorp sells 90,000 shares for more than the current price, $2 each, because there's a lot of hype about its business. MoneyCorp now owns $190,000 in 100,000 shares and each share is worth $1.90. Existing shareholders win big! This is why a company would like to make its share offering at the highest price possible (think, Facebook IPO). Of course, the new shareholders may be disappointed. MoneyCorp is actually a lot like a real business! Actually, if you want to get down to it, MoneyCorp works very much like a money-market fund. The main difference between MoneyCorp and a random company on the stock market is that we know exactly how much money MoneyCorp is worth. You don't know that with a real business: sales may grow, sales may drop, input prices may rise and fall, and there's room for disagreement - that's why stock markets are as unpredictable as they are, so there's room for doubt when a company sells their stock at a price existing shareholders think is too cheap (or buys it at a price that is too expensive). Most companies raising capital will end up doing something close to scenario 1, the fair-prices-for-everyone scenario. Legally, if you own part of a company and they do something a Scenario-2 on you... you may be out of luck. Consider also: the other owners are probably hurt as much as you are. Only the new shareholders win. And unless the management approving the deal is somehow giving themselves a sweetheart deal, it'll be hard to demonstrate any malfeasance. As an individual, you probably won't file a lawsuit either, unless you own a very large stake in the company. Lawsuits are expensive. A big institutional investor or activist investor of some sort may file a suit if millions of dollars are at stake, but it'll be ugly at best. If there's nothing evil going on with the management, this is just one way that a company loses money from bad management. It's probably not the most important one to worry about.",
"title": ""
},
{
"docid": "d7bb1920277a6e3077f9af827c5ce15d",
"text": "One explanation is that movie patrons are considering their total willingness to pay for the movie experience so that if the ticket price plus the market price of popcorn is less than their willingness to pay (WTP), the theater has an opportunity to extract more consumer surplus by charging higher than market prices for the popcorn (that is, price discrimination). There is a working paper on the subject by Gill and Hartmann (2008), the abstract of which reads: Prices for goods such as blades for razors, ink for printers and concessions at movies are often set well above cost. Theory has shown that this could yield a profitable price discrimination strategy often termed “metering.” The idea is that a customer’s intensity of demand for aftermarket goods (e.g. the concessions) provides a meter of how much the customer is willing to pay for the primary good (e.g. admission). If this correlation in tastes for the two goods is positive, a high price on the aftermarket good allows firms to extract a greater total price (admissions plus concessions) from higher type customers. This paper develops a simple aggregate model of discrete-continuous demand to motivate how this correlation can be tested using simple regression techniques and readily available firm data. Model simulations illustrate that the regressions can be used to predict whether aftermarket prices should be above, below or equal to their marginal cost. We then apply the approach to box-office and concession data from a chain of Spanish theaters and find that high priced concessions do extract more surplus from customers with a greater willingness to pay for the admission ticket. Locay and Rodriquez (1992) make a similar argument in a JPE article. They essentially argue that purchases of things like movie tickets are made by groups; once individuals are constrained by the group's choice, the firm has additional market power: We present models in which price discrimination in the context of a two-part price can occur in some competitive markets. Purchases take place in groups, which choose which firms to patronize. While firms are perfectly competitive with respect to groups, they have some market power over individual consumers, who are constrained by their groups' choices. We find that firms will charge an entry fee that is below marginal cost, and the second part of the price is marked up above marginal cost. The markup not only is positive but increases with the quality of the product. The quote you are looking for is similar, and again attributes the discrepancy to price discrimination. From the Armchair Economist (p. 159): The purpose of expensive popcorn is not to extract a lot of money from customers. That purpose would be better served by cheap popcorn and expensive movie tickets. Instead, the purpose of expensive popcorn is to extract different sums from different customers. Popcorn lovers, who have more fun at the movies, pay more for their additional pleasure. That is, some people like popcorn more than others. The latter idea is that the movie experience for popcorn lovers is worth more than the sum of its parts: that a movie ticket + popcorn is worth more than either of them separately for some people.",
"title": ""
},
{
"docid": "25fce1f063053c17c38a95d0e83a8f69",
"text": "\"There are many different methods for a corporation to get money, but they mostly fall into three categories: earnings, debt and equity. Earnings would be just the corporation's accumulation of cash due to the operation of its business. Perhaps if cash was needed for a particular reason immediately, a business may consider selling a division or group of assets to another party, and using the proceeds for a different part of the business. Debt is money that (to put it simply) the corporation legally must repay to the lender, likely with periodic interest payments. Apart from the interest payments (if any) and the principal (original amount leant), the lender has no additional rights to the value of the company. There are, basically, 2 types of corporate debt: bank debt, and bonds. Bank debt is just the corporation taking on a loan from a bank. Bonds are offered to the public - ie: you could potentially buy a \"\"Tesla Bond\"\", where you give Tesla $1k, and they give you a stated interest rate over time, and principal repayments according to a schedule. Which type of debt a corporation uses will depend mostly on the high cost of offering a public bond, the relationships with current banks, and the interest rates the corporation thinks it can get from either method. Equity [or, shares] is money that the corporation (to put it simply) likely does not have a legal obligation to repay, until the corporation is liquidated (sold at the end of its life) and all debt has already been repaid. But when the corporation is liquidated, the shareholders have a legal right to the entire value of the company, after those debts have been paid. So equity holders have higher risk than debt holders, but they also can share in higher reward. That is why stock prices are so volatile - the value of each share fluctuates based on the perceived value of the entire company. Some equity may be offered with specific rules about dividend payments - maybe they are required [a 'preferred' share likely has a stated dividend rate almost like a bond, but also likely has a limited value it can ever receive back from the corporation], maybe they are at the discretion of the board of directors, maybe they will never happen. There are 2 broad ways for a corporation to get money from equity: a private offering, or a public offering. A private offering could be a small mom and pop store asking their neighbors to invest 5k so they can repair their business's roof, or it could be an 'Angel Investor' [think Shark Tank] contributing significant value and maybe even taking control of the company. Perhaps shares would be offered to all current shareholders first. A public offering would be one where shares would be offered up to the public on the stock exchange, so that anyone could subscribe to them. Why a corporation would use any of these different methods depends on the price it feels it could get from them, and also perhaps whether there are benefits to having different shareholders involved in the business [ie: an Angel investor would likely be involved in the business to protect his/her investment, and that leadership may be what the corporation actually needs, as much or more than money]. Whether a corporation chooses to gain cash from earnings, debt, or equity depends on many factors, including but not limited to: (1) what assets / earnings potential it currently has; (2) the cost of acquiring the cash [ie: the high cost of undergoing a public offering vs the lower cost of increasing a bank loan]; and (3) the ongoing costs of that cash to both the corporation and ultimately the other shareholders - ie: a 3% interest rate on debt vs a 6% dividend rate on preferred shares vs a 5% dividend rate on common shares [which would also share in the net value of the company with the other current shareholders]. In summary: Earnings would be generally preferred, but if the company needs cash immediately, that may not be suitable. Debt is generally cheap to acquire and interest rates are generally lower than required dividend rates. Equity is often expensive to acquire and maintain [either through dividend payments or by reduction of net value attributable to other current shareholders], but may be required if a new venture is risky. ie: a bank/bondholder may not want to lend money for a new tech idea because it is too risky to just get interest from - they want access to the potential earnings as well, through equity.\"",
"title": ""
},
{
"docid": "480c0c63c7be67c322e10fa1df83fa21",
"text": "In reality, shareholders have very few rights other than the right to profits and the right to vote on a board. In general, a proxy fight to replace the board is complicated and expensive, so unless the interested parties buy close to 50% of the shares it's unlikely to be successful. Furthermore, a lot of the shares are held by insiders and institutions. I suppose if a large group of shareholders got together and demanded this, the existing directors may listen and give in to avoid unhappy shareholders being a general annoyance. That seems pretty unlikely unless the stake gets large. There's a great episode of NPR Planet Money [board games](http://www.npr.org/sections/money/2017/07/19/538141248/episode-594-board-games) which talks about one man's struggle to get the company to take some action.",
"title": ""
},
{
"docid": "4d6b8b176414df94cb82c6b650b20647",
"text": "To me this sounds like a transaction, where E already owns a company worth 400k and can therefore pocket the money from D and give D 25% of the profits every year. There is nothing objective (like a piece of paper) that states the company is worth 400K. It is all about perceived value. Some investors may think it is worth something because of some knowledge they may have. Heck, the company could be worth nothing but the investor could have some sentimental value associated to it. So is it actually the case that E's company is worth 400k only AFTER the transaction? It is worth what someone pays for it when they pay for it. I repeat- the 400K valuation is subjective. In return the investor is getting 25% ownership of the product or company. The idea is that when someone has ownership, they have a vested interest in it being successful. In that case, the investor will do whatever he/she can to improve the chances of success (in addition to supplying the 100K capital). For instance, the investor will leverage their network or perhaps put more money into it in the future. Is the 100k added to the balance sheet as cash? Perhaps. It is an asset that may later be used to fund inventory (for instance). ... and would the other 300k be listed as an IP asset? No. See what I said about the valuation just being perception. Note that the above analysis doesn't apply to all Dragons Den deals. It only applies to situations where capital is exchanged for ownership in the form of equity.",
"title": ""
}
] |
fiqa
|
1122f64f32554e947dc79f297d54531f
|
Estimated Taxes Fall Short of tax liability — how do I pay extra online (Federal and NYS)
|
[
{
"docid": "343eb328af1954172314cc6324db1e9a",
"text": "If you qualify for the safe harbor, you are not required to pay additional quarterly taxes. Of course, you're still welcome to do so if you're sure you'll owe them; however, you will not be penalized. If your income is over $150k (joint) or $75k (single), your safe harbor is: Estimated tax safe harbor for higher income taxpayers. If your 2014 adjusted gross income was more than $150,000 ($75,000 if you are married filing a separate return), you must pay the smaller of 90% of your expected tax for 2015 or 110% of the tax shown on your 2014 return to avoid an estimated tax penalty. Generally, if you're under that level, the following reasons suggest you will not owe the tax (from the IRS publication 505): The total of your withholding and timely estimated tax payments was at least as much as your 2013 tax. (See Special rules for certain individuals for higher income taxpayers and farmers and fishermen.) The tax balance due on your 2014 return is no more than 10% of your total 2014 tax, and you paid all required estimated tax payments on time. Your total tax for 2014 (defined later) minus your withholding is less than $1,000. You did not have a tax liability for 2013. You did not have any withholding taxes and your current year tax (less any household employment taxes) is less than $1,000. If you paid one-fourth of your last year's taxes (or of 110% of your last-year's taxes) in estimated taxes for each quarter prior to this one, you should be fine as far as penalties go, and can simply add the excess you know you will owe to the next check.",
"title": ""
}
] |
[
{
"docid": "b293a75aa6a5ccb721f4fe72a5f50768",
"text": "The W4 specifies withholding for income taxes, FICA taxes are not impacted. The tax withholding is do that you do not need to make estimated tax payments. Failing to make sufficient quarterly estimated tax payments or withholding a sufficient amount could result in you being hit with under payment penalties but nothing more. The under payment penalties will be figured out as part of you income tax return. What you should have done when you discovered this was use the extra withholding line on the W4 to further increase your withholding. The nice thing about withholding is that you back load it and the IRS does not care. The company has no liability here. It is your responsibility to update them when your personal circumstances change. You will be fully responsible for the tax bill. There is no company paid portion of your income tax so they are not impacted. The company only pays an employer share of FICA and that is not impacted by how you fill out the W4. First thing to do is figure out how much you owe the IRS. Then determine if you can pay it or if you need to investigate an installment option. In any case make sure to file your return on time.",
"title": ""
},
{
"docid": "8fd6c981891c253aa31da32c35cefe2d",
"text": "How do I report this on our income tax return? You should include it on Line 7 of your Form 1040. Additionally, you should report the extra payment to your employer if it was greater that $20. You can use From 4070 to do this if your employer does not provide you with a form. And finally, you are right, you should Form 4137 to report any tips that you include on your Form 1040 in order to pay the required social security and medicare taxes. Credit is due to glibdud and Nathan L for constructive feedback! Thanks!",
"title": ""
},
{
"docid": "f4f65d96de623386d5e4864d46eaf2ed",
"text": "\"You are on the right track, for tax purposes its all ordinary income at the end of 2016. If the free lance \"\"employer\"\" will withhold fed,state and local tax, then that takes care of your estimated tax. If they can't or won't, you will need to make those estimates and make payments quarterly for the fed and state tax at your projected tax liability. Or, you can bump up withholding by your day job employer and cover your expected tax liability at year end without making estimated tax payments.\"",
"title": ""
},
{
"docid": "8fe6f7a9cad2f4520ed898b0c39b47ba",
"text": "\"I assume your employer does standard withholding? Then what you need to do is figure what bracket that puts you in after you've done all your normal deductions. Let's say it's 25%. Then multiply your freelance income after business expenses, and that's your estimated tax, approximately. (Unless the income causes you to jump a bracket.) To that you have to add approximately 12-13% Social Security/Medicare for income between the $90K and $118,500. Filling out Form 1040SSE will give you a better estimate. But there is a \"\"safe harbor\"\" provision, in that if what you pay in estimated tax (and withholding) this year is at least as much as you owed last year, there's no penalty. I've always done mine this way, dividing last year's tax by 4, since my income is quite variable, and I've never been able to make sense of the worksheets on the 1040-ES.\"",
"title": ""
},
{
"docid": "6e823a2231fe80ac405b0c2fe35a9cf4",
"text": "You can file a revised W-4 with your employer claiming more allowances than you do now. More allowances means less Federal tax and (if applicable and likely with a separate form) less state tax. This doesn't affect social security and Medicare with holding, though. That being said, US taxes are on a pay-as-you-go system. If the IRS determines that you're claiming more allowances than you're eligible for and not paying the proper taxes throughout the year, they will hit you with an underpayment penalty fee, which would likely negate the benefits of keeping that money in the first place. This is why independent contractors and self-employed people pay quarterly or estimated taxes. Depending on the employer, they may require proof of the allowances for adjustment before they accept the revised W-4.",
"title": ""
},
{
"docid": "3fe97da3da12776e31cfb58e16e57f81",
"text": "\"It's likely you don't have to make estimated tax payments if this is your first year of contracting (extra income), and your existing salary is already having taxes withheld. If you look at the 1040-ES: General Rule In most cases, you must pay estimated tax for 2014 if both of the following apply. This is easier to understand if you look at the worksheet. Look at line 14b/14c and the associated instructions. 14b is your required annual payment based on last year's tax. 14c is the lesser of that number and 14a, so 14b is your \"\"worst case\"\". 14c is the amount of tax you need to prepay (withholding counts as prepayment). I'm going to apply this to your situation based on my understanding, because it's not easy to parse:\"",
"title": ""
},
{
"docid": "6ee6b31bfa88f4d98a4282156d6c0bf8",
"text": "As @littleadv's comment on your question said, it is unlikely that you and your husband paid a total of $5K in income tax on $185K of wages in 2013. More likely, your 2013 tax return (assumed to be a Married Filing Jointly tax return) showed that you had not arranged to have enough tax withheld from your salaries and thus you still owed $5K to the IRS for 2013 taxes. Most likely, that $5K sum included not just the unpaid amount of tax but also penalties for not paying enough income tax during 2013 and interest on the amounts not paid on time. Just to be clear, note that the income tax you paid for 2013 during 2013 is the total of all income tax withheld from your wages by your employers (plus any estimated tax payments that you might have made for 2013). If your 2014 tax return (that you will be filing by April 15, 2015) will likely show a similar amount due for 2014 taxes, you can avoid the penalties and interest by increasing your income tax withholding by a substantial amount for the remainder of 2014. If you are paid monthly and have two paychecks still to be received, then having $2500 extra withheld from each paycheck will cover the $5K shortfall that you expect to have for 2014 taxes. I assume that this is what your husband intended you to do, and to do this, you need to fill out a new W-4 Form (asking that an addiitonal $2500 be withheld from each paycheck) and give this form to your employer soon (i.e. well before Payroll processes your next paycheck which usually happens a few days before you get the paycheck). If you do so, your take-home pay will be reduced by $2500 on each of the next two monthly paychecks because your employer will withhold this extra amount from your pay and include it in the amount sent to the IRS as income tax withheld from your paycheck. After your last paycheck for 2014 has been received, you should submit a new W-4 Form to your asking for only $417 in extra income tax to be withheld from each paycheck starting January 1, 2015, so that the expected $5K shortfall for 2015 is paid in 12 equal monthly installments. If you neglect to do this, your employer will continue to withhold $2500 extra as income tax, and you will get $2500 less in take-home pay month after month in 2015. This money will not disappear forever; come 2016 when you file your income tax return for 2015, you will receive a substantial refund because you overpaid income tax by a lot during 2015. You will not, however, receive any interest on the amount that the IRS is returning to you unless the IRS delays in sending you the refund for some reason. Alternatively, you can file a new W-4 asking for no additional tax to be withheld from 2015 paychecks, and a year from now, go through the same exercise as above: have $2500 extra withheld from the last two paychecks for 2015, right when the holidays are coming and people are shopping for gifts.",
"title": ""
},
{
"docid": "9e1bd20e6583336a2a461705b9cd9eba",
"text": "\"The heart of the question is: why can't Bill just pay whatever he owes based on his income in that quarter? If Q2 is gang busters, he'll increase his tax payment. Then if Q3 is surprisingly slow, he'll pay less than he paid in Q2. I think what's most interesting about this question is that the other answers are geared towards how a taxpayer is supposed to estimate taxes. But that's not my objective -- nor is it Bill's objective. My [his] real objective is: In other words, the answer to this question either needs to deal with not overpaying, or it needs to deal with mitigating the underpayment penalty. AFAICT, there are 2 solutions: Solution 1 Figure your estimated taxes based on last year's tax. You won't owe a penalty if your withholding + estimated tax payments in each quarter are 25% or more of your previous year's tax liability. Here's the section that I am basing this on: http://www.irs.gov/publications/p505/ch04.html Minimum required each period. You will owe a penalty for any 2011 payment period for which your estimated tax payment plus your withholding for the period and overpayments for previous periods was less than the smaller of: 22.5% of your 2011 tax, or 25% of your 2010 tax. (Your 2010 tax return must cover a 12-month period.) Solution 2 Use the \"\"Annualized Income Installment Method\"\". This is not a method for calculating estimated taxes, per se. It's actually a method for reducing or eliminating your underpayment penalty. It's also intended to assist tax payers with unpredictable incomes. If you did not receive your income evenly throughout the year (for example, your income from a shop you operated at a marina was much larger in the summer than it was during the rest of the year), you may be able to lower or eliminate your penalty by figuring your underpayment using the annualized income installment method. Emphasis added. In order to take advantage of this, you'll need to send in a Schedule AI at the end of the year along with a Form 2210. The downside to this is that you're basically racking up underpayment penalties throughout the year, then at the end of the year you're asking the IRS to rescind your penalty. The other risk is that you still pay estimated taxes on your Q2 - Q4 earnings in Q1, you just pay much less than 25%. So if you have a windfall later in the year, I think you could get burned on your Q1 underpayment.\"",
"title": ""
},
{
"docid": "dbc2900dd925281d60d1f846130c6e5f",
"text": "\"Everything is fine. If line 77 from last year is empty, you should leave this question blank. You made estimated tax payments in 2015. But line 77 relates to a different way to pay the IRS. When you filed your 2014 taxes, if you were owed a refund, and you expected to owe the IRS money for 2015, line 77 lets you say \"\"Hey IRS, instead of sending me a refund for 2014, just keep the money and apply it to my 2015 taxes.\"\" You can also ask them to keep a specified amount and refund the rest. Either way this is completely optional. It sounds like you didn't do that, so you don't fill in anything here. The software should ask you in a different question about your estimated tax payments.\"",
"title": ""
},
{
"docid": "e14cb4c06d785d9ab927ff0914196dcc",
"text": "This is wrong. It should be or Now, to get back to self-employment tax. Self-employment tax is weird. It's a business tax. From the IRS perspective, any self-employed person is a business. So, take your income X and divide by 1.0765 (6.2% Social Security and 1.45% Medicare). This gives your personal income. Now, to calculate the tax that you have to pay, multiply that by .153 (since you have to pay both the worker and employer shares of the tax). So new calculation or they actually let you do which is better for you (smaller). And your other calculations change apace. And like I said, you can simplify Q1se to and your payment would be Now, to get to the second quarter. Like I said, I'd calculate the income through the second quarter. So recalculate A based on your new numbers and use that to calculate Q2i. or Note that this includes income from both the first and second quarters. We'll reduce to just the second quarter later. This also has you paying for all of June even though you may not have been paid when you make the withholding payment. That's what they want you to do. But we aren't done yet. Your actual payment should be or Because Q2ft and Q2se are what you owe for the year so far. Q1ft + Q1se is what you've already paid. So you subtract those from what you need to pay in the second quarter. In future quarters, this would be All that said, don't stress about it. As a practical matter, so long as you don't owe $1000 or more when you file your actual tax return, they aren't going to care. So just make sure that your total payments match by the payment you make January 15th. I'm not going to try to calculate for the state. For one thing, I don't know if your state uses Q1i or Q1pi as its base. Different states may have different rules on that. If you can't figure it out, just use Q1i, as that's the bigger one. Fix it when you file your annual return. The difference in withholding is going to be relatively small anyway, less than 1% of your income.",
"title": ""
},
{
"docid": "a7e3d7a58663bf7892905e74ddb6346a",
"text": "\"I'm mostly guessing based on existing documentation, and have no direct experience, so take this with a pinch of salt. My best understanding is that you need to file Form 843. The instructions for the form say that it can be used to request: A refund or abatement of a penalty or addition to tax due to reasonable cause or other reason (other than erroneous written advice provided by the IRS) allowed under the law. The \"\"reasonable cause\"\" here is a good-faith confusion about what Line 79 of the form was referring to. In Form 843, the IRC Section Code you should enter is 6654 (estimated tax). For more, see the IRC Section 6654 (note, however, that if you already received a CP14 notice from the IRS, you should cross-check that this section code is listed on the notice under the part that covers the estimated tax penalty). If your request is accepted, the IRS should issue you Notice 746, item 17 Penalty Removed: You can get more general information about the tax collection process, and how to challenge it, from the pages linked from Understanding your CP14 Notice\"",
"title": ""
},
{
"docid": "7c3371e7b7b02bfd5e69618ecfa55afa",
"text": "The key for you this year (2015) be aggressive in paying the taxes quarterly so that you do not have to do the quarterly filings or pay penalties for owing too much in taxes in future years. The tax system has a safe harbor provision. If you have withheld or sent via the estimated quarterly taxes an amount equal to 100% of the previous years taxes then you are safe. That means that if you end to the IRS in 2015 an amount equal to 100% of your 2014 taxes then in April 2016 you can avoid the penalties. You should note that the required percentage is 110% for high income individual. Because you can never be sure about your side income, use your ability to adjust your W-4 to cover your taxes. You will know early in 2016 how much you need to cover via withholding, so make the adjustments. Yes the risk is what you over pay, but that may be what you need to do to avoid the quarterly filing requirements. From IRS PUB 17: If you owe additional tax for 2014, you may have to pay estimated tax for 2015. You can use the following general rule as a guide during the year to see if you will have enough withholding, or if you should increase your withholding or make estimated tax payments. General rule. In most cases, you must pay estimated tax for 2015 if both of the following apply. You expect to owe at least $1,000 in tax for 2015, after subtracting your withholding and refundable credits. You expect your withholding plus your refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2015 tax return, or 100% of the tax shown on your 2014 tax return (but see Special rules for farmers, fishermen, and higher income taxpayers , later). Your 2014 tax return must cover all 12 months. and Estimated tax safe harbor for higher income taxpayers. If your 2014 adjusted gross income was more than $150,000 ($75,000 if you are married filing a separate return), you must pay the smaller of 90% of your expected tax for 2015 or 110% of the tax shown on your 2014 return to avoid an estimated tax penalty.",
"title": ""
},
{
"docid": "a8a34d5de6f3676427fdea0189bc6428",
"text": "It would be quite the trick for (a) the government to run all year and get all its revenue in April when taxes are due and (b) for people to actually save the right amount to be able to cut that check each year. W2 employers withhold the estimated federal and state taxes along with the payroll (social security) tax from each paycheck. Since the employer doesn't know how many kids you have, or how much mortgage interest, etc you will take deductions for, you can submit a W4 form to adjust withholdings. The annual Form 1040 in April is to reconcile exact numbers, some people get a refund of some of what they paid in, others owe some money. If one is self-employed, they are required to pay quarterly estimated taxes. And they, too, reconcile exact numbers in April.",
"title": ""
},
{
"docid": "7f0fededa670a411cea1e495d339388f",
"text": "I went through this too. There's a safe-harbor provision. If you prepay as estimated tax payments, 110% of your previous year's tax liability, there's no penalty for underpayment of the big liquidity-event tax liability. https://www.irs.gov/publications/p17/ch04.html That's with the feds. Your state may have different rules. You would be very wise indeed to hire an accountant to prepare your return this year. If I were you I'd ask your company's CFO or finance chief to suggest somebody. Congratulations, by the way.",
"title": ""
},
{
"docid": "6545f8a617a6d8d28f68332b30b60eeb",
"text": "They will not send a bill, though there's a chance they will eventually send an accusatory letter. You must proactively pay your taxes. The simplest route is to send a check to each taxing authority with the respective full amounts due. I wouldn't bother calling them. You could also file amended returns with each containing the correct information. As a general rule, tax advisors tend to counsel against giving bank account information to the IRS for payment purposes (as opposed to refund purposes), both to protect the timing of payment and to make it slightly more difficult for them to seize or lien your account. If you choose to send a check, you can use Form 1040-V and NY Form IT-201-V. Please triple check your Social Security Number matches your tax return SSN, so they correctly credit you for payment. You may include an explanation of the closed account if you are feeling either fearful or contrite, but if the amount due is paid in full, then neither taxing authority should really care about your error.",
"title": ""
}
] |
fiqa
|
957309f94dd06b3322788d6cfc122175
|
Does being involved in the management of a corporation make me ineligible for a workshare program?
|
[
{
"docid": "85f1ee03b67a2df86e96dbcec51a9f21",
"text": "\"Assuming you are paying into and eligible to collect regular Employment Insurance benefits for the job in question, I don't see how owning a side business would, by itself, affect your ability to participate in the workshare program. Many people own dormant businesses ($0 revenue / $0 income), or businesses with insignificant net income (e.g. a small table at the flea market, or a fledgling web-site with up-front costs and no ad revenue, yet ;-) I think what matters is if your side business generated income substantial enough to put you over a certain threshold. Then you may be required to repay a portion of the EI benefits received through the workshare program. On this issue, I found the following article informative: How to make work-sharing work for you, from the Globe & Mail's Report on Business site. Here's a relevant quote: \"\"[...] If you work elsewhere during the agreement, and earn more than an amount equal to 40% of your weekly benefit rate, that amount shall be deducted from your work sharing benefits payable that week. [...]\"\" The definitive source for information on the workshare program is the Service Canada web site. In particular, see the Work-Sharing Applicant Guide, which discusses eligibility criteria. Section IV confirms the Globe article's statement above: \"\"[...] Earnings received in any week by a Work-Sharing participant, from sources other than Work-Sharing employment, that are in excess of an amount equal to 40% or $75 (whichever is greater) of the participant's weekly benefit rate, shall be deducted from the Work-Sharing benefits payable in that week. [...]\"\" Finally, here's one more interesting article that discusses the workshare program: Canada: Employment Law @ Gowlings - March 30, 2009.\"",
"title": ""
}
] |
[
{
"docid": "bed338db9cdf1dd0f3be10e06e8adaf3",
"text": "\"Yes, this is restricted by law. In plain language, you can find it on the IRS website (under the heading \"\"When Can a Retirement Plan Distribute Benefits?\"\"): 401(k), profit-sharing, and stock bonus plans Employee elective deferrals (and earnings, except in a hardship distribution) -- the plan may permit a distribution when you: •terminate employment (by death, disability, retirement or other severance from employment); •reach age 59½; or •suffer a hardship. Employer profit-sharing or matching contributions -- the plan may permit a distribution of your vested accrued benefit when you: •terminate employment (by death, disability, retirement or other severance from employment); •reach the age specified in the plan (any age); or •suffer a hardship or experience another event specified in the plan. Form of benefit - the plan may pay benefits in a single lump-sum payment as well as offer other options, including payments over a set period of time (such as 5 or 10 years) or a purchased annuity with monthly lifetime payments. Source: https://www.irs.gov/retirement-plans/plan-participant-employee/when-can-a-retirement-plan-distribute-benefits If you want to actually see it in the law, check out 26 USC 401(k)(2)(B)(i), which lists the circumstances under which a distribution can be made. You can get the full text, for example, here: https://www.law.cornell.edu/uscode/text/26/401 I'm not sure what to say about the practice of the company that you mentioned in your question. Maybe the law was different then?\"",
"title": ""
},
{
"docid": "316710461de83750af605d1897addf25",
"text": "Chris, since you own your own company, nobody can stop you from charging your personal expenses to your business account. IRS is not a huge fan of mixing business and personal expenses and this practice might indicate to them that you are not treating your business seriously, and it should classify your business as a hobby. IRS defines deductible business expense as being both: ordinary AND necessary. Meditation is not an ordinary expense (other S-corps do not incur such expense.) It is not a necessary expense either. Therefore, you cannot deduct this expense. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Deducting-Business-Expenses",
"title": ""
},
{
"docid": "e7e01f4693da28ecd3ef88fbcc7b66c1",
"text": "\"Not normally, for a limited liability company anyway. In extreme circumstances a court may \"\"lift the veil\"\" of incorporation and treat shareholders as if they were partners. If you are an office bearer or a director that is found to have breached duties/responsibiities then that is another matter. Dim views can be taken of shonky arrangents for companies formed for activites not of a bona fide business nature too.\"",
"title": ""
},
{
"docid": "493fff5992da61579f6f8f74553419bf",
"text": "\"This has to do with the type of plan offered: is it a 401(k) plan or a profit-sharing plan, or both? If it's 401(k) I believe the IRS will see this distribution as elective and count towards the employee's annual elective contribution limit. If it's profit sharing the distribution would be counted toward the employer's portion of the limit. However -- profit sharing plans have a formula that's standard across the board and applied to all employees. i.e. 3% of company profits given equally to all employees. One of the benefits of the profit sharing plans is also that you can use a vesting schedule. I'd consult your accountant to see how this specifically impacts your business - but in the case you describe this sounds like an elective deferral choice by an employee and I don't see how (or why) you'd make this decision for them. Give them the bonus and let them choose how it's paid out. Edit: in re-reading your question it actually sounds like you're wanting to setup a profit sharing type situation - but again, heed what I said above. You decide the amount of \"\"profit\"\" - but you also have to set an equation that applies across the board. There is more complication to it than this brief explanation and I'd consult your accountant to see how it applies in your situation.\"",
"title": ""
},
{
"docid": "9aeb6ea330ab89ab7f767e72d9ee2209",
"text": "I was hesitant to answer this question since I don't own MLP even though I'm aware of how they work. But hear crickets on this question, so here goes. I'll try to keep this as non technical as possible. MLPs are partnerships where a shareholder is a partner and liable for the partnership's taxes. MLPs don't pay corporate tax since the tax burden flows to you, the shareholder. So does that mean like a partnership the partners are liable for the company's actions? Technically, yes. Has it happened before? No. Of course there are limitations to the liability, but are not definitely shielded in a way normal shareholders are. MLPs issue a K-1 at the beginning of the year (feb/mar). The tax calculations are relatively complex and I'm not going to go over that in this post. Generally MLPs are a bad choice for tax-deferred accounts like IRAs since there are tax implications beyond certain limits of distribution (yes even out of an IRA you'll have to pay taxes if above the limit). Not all types of businesses can become MLPs (hey no corporate tax, let's form an MLP!) Only companies engaged in businesses related to real estate, commodities or natural resources can become MLPs. There are a number of MLPs out there. The largest is Kinder Morgan Energy Partners. Hope this helps!",
"title": ""
},
{
"docid": "ee0f34fa27cb4ca84be860d651f060f3",
"text": "You tagged with S-Corp, so I assume that you have that tax status. Under that situation, you don't get taxed on distributions regardless of what you call them. You get taxed on the portion of the net income that is attributable to you through the Schedule K that the S-Corp should distribute to you when the S-Corp files its tax return. You get taxed on that income whether or not it's distributed. If you also work for the small business, then you need to pay yourself a reasonable wage. The amount that you distribute can be one factor in determining reasonableness. That doesn't seem to be what you asked, but it is something to consider.",
"title": ""
},
{
"docid": "691ebc769be4882276be7460d9e1cd52",
"text": "Checkout the worksheet on page 20 of Pub 535. Also the text starting in the last half of the third column of page 18 onward. https://www.irs.gov/pub/irs-pdf/p535.pdf The fact that you get a W-2 is irrelevant as far as I can see. Your self-employment business has to meet some criteria (such as being profitable) and the plan needs to be provided through your own business (although if you're sole proprietor filing on Schedule C, it looks like having it in your own name does the trick). Check the publication for all of the rules. There is this exception that would prevent many people with full-time jobs on W-2 from taking the deduction: Other coverage. You cannot take the deduction for any month you were eligible to participate in any employer (including your spouse's) subsidized health plan at any time during that month, even if you did not actually participate. In addition, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2014, do not use amounts paid for coverage for that month to figure the deduction. (Pages 20-21). Sounds like in your case, though, this doesn't apply. (Although your original question doesn't mention a spouse, which might be relevant to the rule if you have one and he/she works.) The publication should help. If still in doubt, you'll probably need a CPA or other professional to assess your individual situation.",
"title": ""
},
{
"docid": "853b3e27f63962682a49ed6503c3a23d",
"text": "The instructions for Form W-7 include a table of exceptions to the requirement to attach a tax return. It looks like you might fall under Exemption 2a, but I don't think there's quite enough information in your question to be sure. The current instructions are here: https://www.irs.gov/pub/irs-pdf/iw7.pdf The table of exceptions runs from page 7 to page 9, so I won't try to reproduce it here.",
"title": ""
},
{
"docid": "16581677e644eac47253d3d85e446f77",
"text": "I suggest you have a professional assist you with this audit, if the issue comes into questioning. It might be that it wouldn't. There are several different options to deal with such situation, and each can be attacked by the IRS. You'll need to figure out the following: Have you paid taxes on the reimbursement? Most likely you haven't, but if you had - it simplifies the issue for you. Is the program qualified under the employers' plan, and the only reason you're not qualified for reimbursement is that you decided to quit your job? If so, you might not be able to deduct it at all, because you can't take tax benefits on something you can be reimbursed for, but chose not to. IRS might claim that you quitting your job is choosing not to get reimbursement you would otherwise get. I couldn't find from my brief search any examples of what happened after such a decision. You can claim it was a loan, but I doubt the IRS will agree. The employer most likely reported it as an expense. If the IRS don't contest based on what I described in #2, and you haven't paid taxes on the reimbursement (#1), I'd say what you did was reasonable and should be accepted (assuming of course you otherwise qualify for all the benefits you're asking for). I would suggest getting a professional advice. Talk to a EA or a a CPA in your area. This answer was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer",
"title": ""
},
{
"docid": "ab8e5625963dace403b25188bb017acc",
"text": "\"No, not on schedule C, better. Its an \"\"above the line\"\" deduction (line 29 on your 1040). Here's the turbo tax article on it. The instructions for this line set certain limitations that you must take into the account, and yes - it is limited to the net profit from the business. One of the following statements must be true. You were self-employed and had a net profit for the year. You were a partner with net earnings from self-employment. You used one of the optional methods to figure your net earnings from self-employment on Schedule SE. You received wages in 2011 from an S corporation in which you were a more-than-2% shareholder. Health insurance premiums paid or reimbursed by the S corporation are shown as wages on Form W-2. The insurance plan must be established under your business. Your personal services must have been a material income-producing factor in the business. If you are filing Schedule C, C-EZ, or F, the policy can be either in your name or in the name of the business.\"",
"title": ""
},
{
"docid": "186949c06eb488b98bb884fff413d4d4",
"text": "Renting a house out using a management company is mostly passive income. Earning affiliate income from companies that pay on a recurring basis is closer to passive income.",
"title": ""
},
{
"docid": "efa276413bc5598d0bcd46be619a7c10",
"text": "\"Directors can be held responsible for the liabilities of the corporation - see this Wikipedia article - and especially if it was clear that was the reason for the arrangement, you might well find this happening. That said, I know a Canadian who sold his house to a corporation he already owned (he was doing consulting work through it) at the (in his opinion ridiculously high) amount it had been assessed for property tax purposes. The company paid and claimed any and all expenses including paying for the lawn to be mowed and the house to be painted. He lived in it at a reduced rent (this rent was then income to the company) in exchange for looking after it. He was very happy with the arrangement. He was losing the \"\"no income tax when you sell your primary residence\"\" benefit we have here, but since he expected to never be able to sell it for more than the amount the company had paid, he wasn't worried. If the company exists for no reason other than to shelter income, hide you from liability, and reduce your taxes, then I would expect it would get you some unwanted attention and possibly some rulings you didn't like. If the company exists for a real purpose, and has income and expenses that outweigh whatever games you're playing with cars and homes, you might be able to achieve this. You need to work out what the benefits (other than ducking liabilities) would be and whether they are worth the hassle.\"",
"title": ""
},
{
"docid": "1ca3c5ec07188a8c92c46fb578d192c7",
"text": "Converting the comment from @MD-Tech into answer How or where could I find info about publicly traded companies about how stock owner friendly their compensation schemes are for their board and officers? This should be available in the annual report, probably in a directors' remunerations section for most companies",
"title": ""
},
{
"docid": "e3690f57050d3a70467bddf10e4f5f4c",
"text": "\"It might be best to step back and look at the core information first. You're evaluating an LLC vs a Corporation (both corporate entities). Both have one or more members, and both are seen similarly (emphasis on SIMILAR here, they're not all the same) to the IRS. Specifically, LLC's can opt for a pass-through tax system, basically seen by the IRS the same way an S-Corp is. Put another way, you can be taxed as a corporate entity, or it's P/L statements can \"\"flow through\"\" to your personal taxes. When you opt for a flow-through, the business files and you get a separate schedule to tie into your taxes. You should also look at filing a business expense schedule (Schedule C) on your taxes to claim legitimate business expenses (good reference point here). While there are several differences (see this, and this, and this) between these entities, the best determination on which structure is best for you is usually if you have full time employ while you're running the business. S corps limit shares, shareholders and some deductions, but taxes are only paid by the shareholders. C corps have employees, no restrictions on types or number of stock, and no restrictions on the number of shareholders. However, this means you would become an employee of your business (you have to draw monies from somewhere) and would be subject to paying taxes on your income, both as an individual, and as a business (employment taxes such as Social Security, Medicare, etc). From the broad view of the IRS, in most cases an LLC and a Corp are the same type of entity (tax wise). In fact, most of the differences between LLCs and Corps occur in how Profits/losses are distributed between members (LLCs are arbitrary to a point, and Corps base this on shares). Back to your question IMHO, you should opt for an LLC. This allows you to work out a partnership with your co-worker, and allows you to disburse funds in a more flexible manner. From Wikipedia : A limited liability company with multiple members that elects to be taxed as partnership may specially allocate the members' distributive share of income, gain, loss, deduction, or credit via the company operating agreement on a basis other than the ownership percentage of each member so long as the rules contained in Treasury Regulation (26 CFR) 1.704-1 are met. S corporations may not specially allocate profits, losses and other tax items under US tax law. Hope this helps, please do let me know if you have further questions. As always, this is not legal or tax advice, just what I've learned in setting several LLCs and Corporate structures up over the years. EDIT: As far as your formulas go, the tax rate will be based upon your personal income, for any pass through entity. This means that the same monies earned from and LLC or an S-corp, with the same expenses and the same pass-through options will be taxed the same. More reading: LLC and the law (Google Group)\"",
"title": ""
},
{
"docid": "c4a1412c2941e87dd381bbdd23ec61a6",
"text": "\"If you're skipping and blocking the ads then you're not paying for shit. You are not helping that \"\"model.\"\" Fortunately you're in good company, and the few changes necessary *will* happen in response to how insufferable and ineffective ad-funding is. The whole business will simply fade away.\"",
"title": ""
}
] |
fiqa
|
d8c96b37f076a20d17bc3a40eb6e6104
|
Do I only have to pay income tax on capital gains?
|
[
{
"docid": "68a5a4c899a2e109399eecca707bedb5",
"text": "On the revenue only. This amount of 10$ will be considered as interest and fully taxable. It will not be a capital gain. But why would you decide to declare it as an income? 100$ is insignificant. If you lend small amount to friends it cannot be considered a lending business.",
"title": ""
}
] |
[
{
"docid": "793313d45a67881b4f31326dc8143619",
"text": "Now i want to get this money in my new UK bank account, does this mean that gov will take taxes from this money as well. Yes that is income and you have to pay tax on that. But it might be a bit complicated than that, so I would ask you to call up HMRC or visit an accountant or maybe ask the finance people of your employer. Also one of my family members send us money every few months and will send to this bank from now on, does taxes also apply on this? See the HMRC page about capital gains tax on gifts: You won't have to pay Capital Gains Tax when you give a gift to your husband, wife or civil partner - as long as both of the following apply: It's useful to keep a note of what the asset cost you. Your spouse or civil partner may need this to work out their Capital Gains Tax when they dispose of the asset. Example: Mr B lives with his wife and gives her an antique table that he bought for £12,000 in 2003. Mrs B spends £500 restoring the table, eventually selling it for £20,000. Her total costs are £12,500 (£500 plus Mr B's original cost £12,000). Mrs B's gain is £7,500 (£20,000 less £12,500). When you make a gift to a family member or other person you're connected with, you'll need to work out the gain or loss. This doesn't apply to gifts you make to your spouse or civil partner. This also applies if you dispose of an asset to them in any other way - for example, you sell it to them for a low price. A 'connected person' in this context is someone such as your brother, sister, child, parent, grandparent, mother-in-law or business partner. Follow the link below for more information about connected people and Capital Gains Tax. You must get a valuation of the asset at the time you made the gift. Use this value in place of any amount you received for the asset to work out your gain or loss. If you gave the asset away, then of course the amount you received for it will be nothing. If you make a loss you can only deduct the loss from gains you make on gifts or other disposals to the same person.",
"title": ""
},
{
"docid": "0b631aebd88b85b7ad0afe37b73654d3",
"text": "Yes, you could avoid capital gains tax altogether, however, capital gains are used in determining your tax bracket even though they are not taxed at that rate. This would only work in situations where your total capital gains and ordinary income kept you in the 0% longterm capital gains bracket. You can't realize a million dollars in capital gains and have no tax burden due to lack of ordinary income. You can potentially save some money by realizing capital gains strategically. Giving up income in an attempt to save on taxes rarely makes sense.",
"title": ""
},
{
"docid": "ff7556fdf0db23b4610c4c896b0d1ebb",
"text": "Found a great article (with bibliography) that covers taxation on investment activity by non resident aliens - even covers the special 15% tax on dividends for Canadian residents. It's (dividend tax rate) generally 30% for other NRAs (your 2nd question). And it confirmed my suspicion that there are no capital gains taxes for NRAs. (1st Q) Source: http://invest-faq.com/articles/tax-non-us-nat.html",
"title": ""
},
{
"docid": "03b1b1ff2669c5a7655dfae34ee02e90",
"text": "You only pay tax on the capital gain of the bond, not the principal, unless the source of the money for the principal was gain from another investment, if that makes sense. In other words, if you bought the bond with income earned from your job, that money was already taxed as income, so it isn't subject to taxation again when you redeem the bond. On the other hand, if you cashed out of one investment and used those proceeds to buy a bond, then the entire amount might be taxable.",
"title": ""
},
{
"docid": "3a9a2887e88a59612d0e83c08cffd926",
"text": "Capital gains tax is an income tax upon your profit from selling investments. Long-term capital gains (investments you have held for more than a year) are taxed significantly less than short-term gains. It doesn't limit how many shares you can sell; it does discourage selling them too quickly after buying. You can balance losses against gains to reduce the tax due. You can look for tax-advantaged investments (the obvious one being a 401k plan, IRA, or equivalent, though those generally require leaving the money invested until retirement). But in the US, most investments other than the house you are living in (which some of us argue isn't really an investment) are subject to capital gains tax, period.",
"title": ""
},
{
"docid": "0d8cc97b73642c71c5a8013e9f2f0629",
"text": "\"In the UK it all comes down to what HMRC will allow you to charge without taxing you on the \"\"rent profit\"\" and not hitting capital gain tax when you sell the house, it may not all count as your \"\"main home\"\" if some is rented out. (http://www.accountingweb.co.uk/ is a good place to ask this type of questions in the uk)\"",
"title": ""
},
{
"docid": "51a1117c14284044ce3bc0d9893afe61",
"text": "The capital gain is counted as part of your income. So with a million capital gain you will be in a high tax bracket, and have to pay the corresponding capital gains tax rate on the million.",
"title": ""
},
{
"docid": "e91b1f08ae696306311d1ca153bab4f0",
"text": "\"US federal tax law distinguishes many types of income. For most people, most of their income is \"\"earned income\"\", money you were paid to do a job. Another category of income is \"\"capital gains\"\", money you made from the sale of an asset. For a variety of reasons, capital gains tax rates are lower than earned income tax rates. (For example, it is common that much of the gain is not real profit but inflation. If you buy an asset for $10,000 and sell it for $15,000, you pay capital gains tax on the $5,000 profit. But what if prices in general since you bought the asset have gone up 50%? Then your entire profit is really inflation, you didn't actually make any money -- but you still have to pay a tax on the paper gain.) So if you make your money by investing in assets -- buying and selling at a profit -- you will pay lower taxes than if you made the same amount of money by receiving a salary from a job, or by running a business where you sell your time and expertise rather than an asset. But money made from assets -- capital gains -- is not tax free. It's just a lower tax. It MIGHT be that when combined with other deductions and tax credits this would result in you paying no taxes in a particular year. Maybe you could avoid paying taxes forever if you can take advantage of tax loopholes. But for most people, making money from capital gains could result in lower taxes per dollar of income than someone doing more ordinary work. Or it could result in higher taxes, if you factor in inflation, net present value of money, and so on. BTW Warren Buffet's \"\"secretary\"\" is not a typist. She apparently makes at least $200,000 a year. http://www.forbes.com/sites/paulroderickgregory/2012/01/25/warren-buffetts-secretary-likely-makes-between-200000-and-500000year/#ab91f3718b8a. And side note: if Warren Buffet thinks he isn't paying enough in taxes, why doesn't he voluntarily pay more? The government has a web site where citizens can voluntarily pay additional taxes. In 2015 they received $3.9 million in such contributions. http://www.treasurydirect.gov/govt/reports/pd/gift/gift.htm\"",
"title": ""
},
{
"docid": "bdc4ff578f36f17f49e1d879f130ca3e",
"text": "If you received shares as part of a bonus you needed to pay income tax on the dollar valuse of those shares at the time you received them. This income tax is based on the dollar value of the bonus and has nothing to do with the shares. If you have since sold these shares you will need to report any capital gain or loss you made from their dollar value when you received them. If you made a gain you would need to pay capital gains tax on the profits (if you held them for more than a year you would get a discount on the capital gains tax you have to pay). If you made a loss you can use that capital loss to reduce any other capital gains in that income year, reduce any other income up to $3000 per year, or carry any additional capital loss forward to future income years to reduce any gains or income (up to $3000 per year) you do have in the future.",
"title": ""
},
{
"docid": "29af954b3b5d2f33d38175d849fcf8ac",
"text": "You should get a 1099-MISC for the $5000 you got. And your broker should send you a 1099-B for the $5500 sale of Google stock. These are two totally separate things as far as the US IRS is concerned. 1) You made $5000 in wages. You will pay income tax on this as well as FICA and other state and local taxes. 2) You will report that you paid $5000 for stock, and sold it for $5500 without holding it for one year. Since this was short term, you will pay tax on the $500 in income you made. These numbers will go on different parts of your tax form. Essentially in your case, you'll have to pay regular income tax rates on the whole $5500, but that's only because short term capital gains are treated as income. There's always the possibility that could change (unlikely). It also helps to think of them separately because if you held the stock for a year, you would pay different tax on that $500. Regardless, you report them in different ways on your taxes.",
"title": ""
},
{
"docid": "547c7695b77b8fca33f9c4f66557eee8",
"text": "As JoeTaxpayer has mentioned, please consult a lawyer and CA. In general you would have to pay tax on the profit you make, in the example on this 10% you make less of any expenses to run the business. depending on how you are incorporating the business, there would be an element of service tax apart from corporate tax or income tax.",
"title": ""
},
{
"docid": "96bc0eef187f7667d4a4cc35a1798d67",
"text": "As per Indian tax laws; income, expense, gain and loss constitute the basic pillars of every individual’s economic life. There are very few cases under which this new 'income' is non taxable. Based on the circumstances, you might have to pay capital gains tax.",
"title": ""
},
{
"docid": "23b0dfdbfbf5dd51940969b729167d69",
"text": "non-resident aliens to the US do not pay capital gains on US products. You pay tax in your home country if you have done a taxable event in your country. http://www.investopedia.com/ask/answers/06/nonusresidenttax.asp#axzz1mQDut9Ru but if you hold dividends, you are subject to US dividend tax. The UK-US treaty should touch on that though.",
"title": ""
},
{
"docid": "a745b467ff003e5a783c999f20615b18",
"text": "You only have to pay income tax on a tax deferred account (like a 401k) when you withdraw money from it. You might only need $3K to live on a month, or less, so you only have to pay the taxes at that time I believe.",
"title": ""
},
{
"docid": "826d062a6cf54470248a68681ae46fc4",
"text": "\"Very interesting question. While searching i also found that some precious metal ETFs (including IAU) gains are taxed at 28% because IRS considers it \"\"collectible\"\", rather than the usual long term 15% for stocks and stock holding ETFs. As for capital gain tax you have to pay now my guess it's because of the following statement in the IAU prospectus (page 34): When the trust sells gold, for example to pay expenses, a Shareholder will recognize gain or loss ....\"",
"title": ""
}
] |
fiqa
|
60528c2a782642ffb8dd69ead2596fe8
|
how to show income from paypal as export income
|
[
{
"docid": "176f3eda4ae7d7cc516c80053e3742c3",
"text": "PayPal pays with service tax, where ever you have exported you would have given the invoice, and the statement should be shown. I am also an exporter, I know the rules some times a CA might not be aware of PayPal. Just show your statement from PayPal and the deduction.",
"title": ""
}
] |
[
{
"docid": "000a4e01345164ec5682c16d5afc672b",
"text": "The best thing for you to do will be to start using the Cash Flow report instead of the Income and Expense report. Go to Reports -> Income and Expense -> Cash Flow Once the report is open, open the edit window and open the Accounts tab. There, choose your various cash accounts (checking, saving, etc.). In the General tab, choose the reporting period. (And then save the report settings so you don't need to go hunting for your cash accounts each time.) GnuCash will display for you all the inflows and outflows of money, which appears to be what you really want. Though GnuCash doesn't present the Cash Flow in a way that matches United States accounting rules (with sections for operating, investing, and financial cash flows separated), it is certainly fine for your personal use. If you want the total payment to show up as one line on the Cash Flow report, you will need to book the accrual of interest and the payment to the mortgage bank as two separate entries. Normal entry for mortgage payments (which shows up as a line for mortgage and a line for interest on your Cash Flow): Pair of entries to make full mortgage payment show up as one line on Cash Flow: Entry #1: Interest accrual Entry #2: Full mortgage payment (Tested in GnuCash 2.6.1)",
"title": ""
},
{
"docid": "1953236f5be7555ca9b4258a6797b362",
"text": "You do actually have some profits (whatever is left from donations). The way it goes is that you report everything on your Schedule C. You will report this: Your gross profits will then flow to Net Profit (line 31) since you had no other expenses (unless you had some other expenses, like paypal fees, which will appear in the relevant category in part II), and from line 31 it will go to your 1040 for the final tax calculation.",
"title": ""
},
{
"docid": "b9c1c0b0d03bf04f253f8a40f6636344",
"text": "It's income. Create an income account for it, or use a broader “miscellaneous income” account, depending on how precise you want to be.",
"title": ""
},
{
"docid": "628d5e85eae78da96540a2a6aab4c2f7",
"text": "I found this page at CNN Money, that lists 5 viable alternatives to Paypal, namely: I would suggest looking for unbiased sources like CNN rather than searching for alternatives and happening upon the merchant's sites themselves. Hope this helps!",
"title": ""
},
{
"docid": "3e6f1b68625c209ba0569e9daae82760",
"text": "Paypal is already forbidden from doing business with ISIS. When the government levies sanctions against a group or country, all companies based in that country are forbidden from doing business with that entity, and the penalties are strong enough that companies don't fuck around with that. PayPal hasn't handled business for ISIS in years.",
"title": ""
},
{
"docid": "fdd74cde47c185945481bfaf8364a5cc",
"text": "You can transfer to/from bank account. First, you must establish communication between PayPal and your bank. This has been my experience. Login to your PayPal account and do the following. Step 1. Click My Account tab, then choose 'Profile' Step 2. Choose My Money, Bank Account. There you can establish your bank account. Step 3. After you establish your account, you will receive confirmation deposits to your acct within a few days. Step 4. Once you confirm receiving the deposits, you can send/receive between PayPal and the account.",
"title": ""
},
{
"docid": "bf88b589697316377b9a6a577170fa17",
"text": "I have encountered this too, and nearly every month the downloaded transactions do not match up with the statement balances. In my experience it isn't necessarily because of transactions changing later; I have seen discrepancies for the following reasons: So what to do about it? So far I've been manually reconciling with the itemized statement each month. For me refunds are rare so the differences are easy to spot. Side Note: I see you are using the micropayments fee schedule. Since you don't have the default I'm sure you know that PayPal offers 2 different schedules: Some quick algebra tells us that if your average item sold is more than $11.90, then you are better off with option 1. You are apparently using option 2 even though all of the charges in your example are $20 or more. If your example numbers are indicative of your average sale, you could probably save some money by changing to option 1. Note that the reason I say probably rather than definitely is because when you have refunds you don't get the fixed fee back. So right now you only lose 5 cents per refund, whereas you would lose 30 cents per refund if you switch. You'll have to run the numbers for your average sale price and consider your refund rate to know which is best for you.",
"title": ""
},
{
"docid": "d1b56254525ee1a4d3bd61ecf5a539da",
"text": "Before answering specific question, you are liable to pay tax as per your bracket on the income generated. I work with my partner and currently we transfer all earning on my personal bank account. Can this create any issue for me? If you are paying your partner from your account, you would need to maintain proper paperwork to show the portion of money transferred is not income to you. Alternatively create a join Current Account. Move funds there and then move it to your respective accounts. Which sort off account should be talk and by whose name? Can be any account [Savings/Current]. If you are doing more withdrawls open Current else open Savings. It does not matter on whos name the account is. Paperwork to show income matters from tax point of view. What should we take care while transfering money from freelance site to bank? Nothing specific Is there any other alternative to bank? There is paypal etc. However ultimately it flows into a Bank Account. What are other things to be kept in mind? Keep proper record of actual income of each of you, along with expenses. There are certain expenses you can claim from income, for example laptop, internet, mobile phone etc. Consult a CA he will be able to guide and it does not cost much.",
"title": ""
},
{
"docid": "6fca11c4ffec55524e4ced645bc4a098",
"text": "I think you need to have paypal for eBay selling, just for one reason: people will avoid buying from you if they can't pay by paypal. It decreases significantly your selling.",
"title": ""
},
{
"docid": "83ccfe7a14924f2312a884665c1db75d",
"text": "\"For practical purposes, I would strongly suggest that you do create a separate account for each business you may have that is used only for business purposes, and use it for all of your business income and expenses. This will allow you to get an accurate picture of whether you are making money or not, what your full expenses really are, how much of your personal money you have put into the business, and is an easy way to keep business taxes separate. You will also be able to get a fairly quick read on what your profits are without doing much accounting by looking at the account balance less future taxes and expenses, and less any personal money you've put into the account. Check out this thread from Paypal about setting up a \"\"child\"\" account that is linked to your personal account and can be set up to autosweep payments into your main account, should you like. You will still be able to see transactions for each child account. NOTE: Do be careful to make sure you are reserving the proper amount out of any profits your startup may have for taxes - you don't want to mix this with personal money and then later find out that you owe taxes and have to scramble to come up with the money if you have already spent it This is one of the main reasons to segregate your startup's revenues and profits in the business account. For those using \"\"brick and mortar\"\" banking services rather than a service like Paypal: You likely do not need a business checking account if you are a startup. Most likely, you can simply open a second personal account with your bank in your name, and name it \"\"John Doe DBA Company Name\"\" (DBA = Doing Business As). This way, you can pay expenses and accept payments in the name of your startup. Check with your banker for additional details (localized information).\"",
"title": ""
},
{
"docid": "625b4ac57726954c615a0f324b509988",
"text": "There are several red flags here. can they get my bank account info in any way from me transferring money to them? Probably yes. Almost all bank transactions are auditable, and intentionally cause a money track. This track can be followed from both sides. If they can use your bank account as if they were you, that is a bit deeper than what you are asking, but yes they (and the polish cops) can find you through that transfer. I did look up the company and didn't find any scam or complaints concerning them. Not finding scams or complains is good, but what did you find? Did you find good reviews, the company website, its register, etc, etc? How far back does the website goes (try the wayback machine) Making a cardboard front company is very easy, and if they are into identity theft the company is under some guy in guam that never heard of poland or paypal. As @Andrew said above, it is probably a scam. I'd add that this scam leverages on the how easier is to get a PayPal refund compared to a regular bank transfer. It is almost impossible to get the money back on an international transaction. Usually reverting a bank transfer requires the agreement in writing of the receiver and of both banks. As for paypal, just a dispute from the other user: You are responsible for all Reversals, Chargebacks, fees, fines, penalties and other liability incurred by PayPal, a PayPal User, or a third party caused by your use of the Services and/or arising from your breach of this Agreement. You agree to reimburse PayPal, a User, or a third party for any and all such liability. (source) Also, you might be violating the TOS: Allow your use of the Service to present to PayPal a risk of non-compliance with PayPal’s anti-money laundering, counter terrorist financing and similar regulatory obligations (including, without limitation, where we cannot verify your identity or you fail to complete the steps to lift your sending, receiving or withdrawal limit in accordance with sections 3.3, 4.1 and 6.3 or where you expose PayPal to the risk of any regulatory fines by European, US or other authorities for processing your transactions); (emphasis mine, source) So even if the PayPal transfer is not disputed, how can you be sure you are not laundering money? Are you being paid well enough to assume that risk?",
"title": ""
},
{
"docid": "c1de1971a83164f2f91c1ca34eb3d445",
"text": "\"Selling an asset is not earning income. You are basically moving value from one asset (the laptop) to another (your bank account.) So you reduce the equity that is \"\"value of all my electronics\"\" and you increase the asset that is your bank account. In your case, you never entered the laptop in some category called \"\"value of all my electronics\"\" so you don't have that to make a double-entry against. The temptation is high to call it income as a result. Depending on the reason for all this double-entry book-keeping for personal finances, that may be fine. Or, you can create a category for balancing and use that, and realize the (negative) value of that account doesn't mean much.\"",
"title": ""
},
{
"docid": "0e1634b86dc0379488255eb75820baf2",
"text": "\"I recently needed to compute a better balance that let us pick and choose what to include in the computed sum without losing information, so I revisited this topic and I'm pleased to say that I've found a solution that works (at least for our data - you may have transactions that this code doesn't recognize, but you can always modify it to match). My solution was written natively for MS SQL Server 2008 or later, it uses a scalar UDF, a VIEW, and a windowed aggregate (SUM OVER (ORDER BY ...) which means it should be almost-syntax compatible with PostgreSQL. MySQL does not support OVER but you can perform a running-sum using a variable with arithmetic addition directly in the SELECT clause. Create a database table with this schema (feel free to exclude columns you're not interested in, such as Option1Name): Create a UNIQUE index on TxnId - you could use it as a primary-key, I suppose. You might be tempted to create a Foreign-Key relationship between ReferenceTxnId and TxnId, however this will fail if you enforce it: we have many transactions where ReferenceTxnId points to a Transaction that doesn't exist. This is usually in the case of [Type] = 'Web Accept Payment Received' AND [Status] = 'Canceled'. We also have some TransactionId values longer than 17 characters: some TransactionIds start with \"\"U-\"\" - all pending money requests, I suspect this indicates the transaction is \"\"unfinished\"\". Re-download your entire PayPal History CSV files so that you have the latest retroactive updates. Import these CSV files into this PayPalHistory table. Do a simple test to see how bad PayPal's default data is: To find out where the differences are coming from, run this query: (The ORDER BY (...), RowId is to ensure consistent ordering when multiple transactions share the same timestamp) As you scroll through the results, you'll see how the naive SUM is thrown-off from the official PayPal-computed Balance column. So as you can see, the Net column value cannot always be trusted - what we need is to generate our own \"\"EffectiveNet\"\" value which is accurate - that is, the value is 0.00 for rows which do not affect the balance, instead of being what they are right now. The problem is, given a single row of data (such as any single row from the example table in my original Question) we have no way of inherently knowing what its \"\"EffectiveNet\"\" is. I have devised two functions to help solve this problem, the first function only looks at the ReferenceTxnId, Type and Status column values and generates accurate values for the vast majority of rows - indeed, in our dataset we only had one row for which this approach did not work. I recommend you try this one first and compare the running-sum value to ensure it works for your data: You can use this function in the query like so below, hopefully it should give you an accurate running-sum and balance figure at the end: 8. And here's the view that ties it all together: Used like so: I hope this helps anyone else wanting to do accurate bookkeeping with PayPal Transaction History files!\"",
"title": ""
},
{
"docid": "11c080592426edb765b2bbb6e1a28c84",
"text": "\"From personal experience of having been abroad for a while for work, I found the simplest method to be to Paypal it to myself from one country to the other. Yes, you incur a transaction fee - but it was always less expensive than \"\"real\"\" bank fees for me. Also - if you use a bank that has offices in both countries, adding an authorized user with a debit card and having them visit the bank every X often and making a withdrawal is a viable route.\"",
"title": ""
},
{
"docid": "31564833d7ca386dc6d8186521ba3a89",
"text": "\"One option might be to set up a separate bank account and a separate credit card account, which you would use only for your ebay transactions. I have a friend who does a lot of selling on ebay, and this is exactly what she did. It's reasonable to want to protect your personal finances from any complications that might arise with PayPal and/or ebay. But since you definitely have to provide a bank account and c.c. number (there's no way around this), the best solution might be to set up separate \"\"ebay-only\"\" accounts. And be sure not to link them to any of your personal accounts, for added protection. If you're planning to do a lot of selling, this is probably a good idea anyway just for record-keeping purposes. If you do a lot of selling on ebay, you might consider setting up a \"\"merchant account\"\". There are some limitations on international transactions (currently you can't sell to residents of UK, Australia, or France), and payment processing is a few days slower. But there seem to be fewer fees/risks/etc associated with a merchant account. I don't know much more about it, but here's an article from an ebay seller, including pros and cons of PayPal vs. merchant accounts. http://www.ebay.com/gds/Selling-on-eBay-without-PayPal/10000000021351301/g.html\"",
"title": ""
}
] |
fiqa
|
a0dd55bc63ae6bd512b3dbd7c70f6b10
|
Renting out rooms in my home, what's the proper way to deal with utilities for tax purposes?
|
[
{
"docid": "126fd13c67264c54eded0b947f3c655d",
"text": "It's the same result either way. Say the bills are $600, and you are reimbursed $400. You'd be able to write off $400 as part of the utilities that are common expenses, but then claim the $400 as income. I'd stick with that, and have contemporaneous records supporting all cash flow. You also can take 2/3 of any other maintenance costs that most homeowners can't. Like snow removal, lawn care, etc.",
"title": ""
}
] |
[
{
"docid": "7b73465541b505fd29eecafb445ece16",
"text": "The money your tenants spent on repairs and maintenance that is otherwise your responsibility is considered rent paid to you (and deductible to the extent you can deduct maintenance expenses, provided you have documentation etc etc). The money your tenants spent on utilities, which is their responsibility anyway, is not considered rent paid to you. Since in your question you seem to be mixing both together, it is hard to accept a claim that the additional $300 spent on utilities and maintenance is enough to bring the rent to the FMV level. Especially since the transaction is between related persons, it may bring additional scrutiny of the IRS.",
"title": ""
},
{
"docid": "425030da8e9d713084ca7d3e8ef48786",
"text": "In general, you don't need to keep bills around for more than a few months. The exceptions are: anything that was itemized on your federal or state income taxes. You want to keep these around for seven years in case of an audit by the IRS brokerage statements buying/selling stocks, bonds, mutual funds, etc. You need to know how much you bought a stock for when you sell it, to calculate capital gains. information relating to major renovations to your house. This can be used to reduce the gain when you sell. anything relating to a business, again for tax and valuation purposes. When selling a house, the last years worth of utility bills might be useful, to show potential buyers. However, I get almost all of my recurring bills electronically now. They get saved and backed up. In that case, its easier to just keep everything than to selectively delete stuff. It takes very little space, is easier to find things than in paper files, and is much less hassle when moving than boxes full of paper.",
"title": ""
},
{
"docid": "d12eafeff696a9084ff5c95ad615c099",
"text": "Given your clarifying points, it sounds like you are running both businesses as one combined business. As such, you should be able to get just a single HST number and use that. However, let me please urge you to contact a professional accountant and possibly a lawyer, as it is very unusual to be performing these services without a business license, and you may be exposing yourself to civil penalties and placing your personal assets (e.g. your house) at risk. Additionally, it may be beneficial for you to run these as businesses as you can likely write off (more of) your expenses.",
"title": ""
},
{
"docid": "bc325b7dfcb54008801d23fc67003673",
"text": "Its best you start this venture as a Business entity. Whatever the customer pays you is your income. Whatever you pay to the hotel will be your expenses. Apart from this there will be other expenses. So essentially difference between your income and expense will be the profit of the entity and tax will be on the profit. If you do not want to start an Business entity and pay as an individual then please add the country tag, depending on the country there may different ways to account for the funds.",
"title": ""
},
{
"docid": "8f401c1a8bde35baed1cdaa8e98a1189",
"text": "My experience (two purchases, Ontario, Canada) is that the property taxes are paid by whomever is the owner on the date the tax bill comes due. The bill might be due before the owners even decide to sell. However: A part of the closing process is a Statement of Adjustments, in which various costs that span the tenure of two owners are split on a per-diem basis. In your case, there would have been a charge against you of 2/365 of the tax bill on this statement at the time of closing (if you hadn't paid any 2014 taxes) The statement also includes things like flat-rate water bills, monthly cable bills, security system monitoring... All paid by one owner or the other, but split fairly on a per diem basis at the time of closing...",
"title": ""
},
{
"docid": "7aab38b3269000319e156bc95984f607",
"text": "http://www.irs.gov/publications/p936/ar02.html#en_US_2010_publink1000229891 If you still own it, you get to deduct all of it. In my taxes I did online with TaxAct, it asked if I lived there or not and it just mattered which form it filed for me. With having tenants it was a 'business' form and I assume it would be a standard schedule A for personal. Either way the deductions are still mine to take.",
"title": ""
},
{
"docid": "78d14bc8caa8db04ea078cca3001630b",
"text": "You only need to report INCOME to the IRS. Money which you are paying to a landlord on behalf of someone else is not income.",
"title": ""
},
{
"docid": "05bfa80f78873aecb283a17bc572c7eb",
"text": "The $1300 turns into $2817/mo over a year. You've identified just over $1700 in expenses, but clearly missed a lot. Use what you wish, Mint, a spreadsheet, a notebook, I don't care. Just track every penny for a time. My property tax is due quarterly, so 3 months is minimum. It takes a year to get a full view of the items that are seasonal. Unless of course, the winter is mild (and your plowing expenses are low) or the summer is rainy (and the water bill for the grass is low.) Even the above doesn't capture the things that are less regular. The house painting, the heater repair, etc. The exercise itself is a great first step. As others stated $280 for cable/phone? Once you add the missing $900/mo, we'll know more. What's really important is that you look at 100% of where the money goes and decide what the priorities are. No one's judging you, we chose the bigger house over eating out and expensive vacations. It's about knowing and understanding your choices.",
"title": ""
},
{
"docid": "4cebf899ff5e831a6d09b0757dbc3ccc",
"text": "The rental income is indeed taxable income, but you reduce the taxable portion of it by deducting expenses (including mortgage interest, maintenance, insurance, HOA, real estate tax, and of course depreciation). Due to the depreciation, you may end up breaking even, or having very little taxable income. Note that when you sell the property, your basis is reduced by the depreciation you were allowed to deduct (even if you haven't deducted it for whatever reason), and also the personal residence exclusion might no longer be applicable - i.e.: you'll have to pay capital gains tax. You will not be able to deduct a loss though if you sell now, so it may be better to depreciate it as a rental, rather then sell at a loss that won't affect your taxes. Also, consider the fact that the basis for the depreciation is not the basis you currently have in the property (because you're under water). You have to remember that when calculating the taxes. This is not a tax advice, and you should seek a professional help.",
"title": ""
},
{
"docid": "6d70f2cae68608a83cef66fb85788404",
"text": "@Pete B.'s answer is good, but there's an important note to consider for tax purposes. It's too large for a comment, so I'm adding it as an answer. And that is: you cannot claim the property as a rental property under certain conditions. This affects things like claiming mortgage interest (which you don't have), and depreciation in value (which a rental is allowed). See IRS topic 415 for details, but I've included an important excerpt below with emphasis added: If you rent a dwelling unit to others that you also use as a residence, limitations may apply to the rental expenses you can deduct. You're considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for more than the greater of: ... A day of personal use of a dwelling unit is any day that it's used by: Talk to a tax accountant to better understand the ramifications of this, but it's worth noting that you can't just rent it to her for a paltry sum and be able to take tax advantages from this arrangement.",
"title": ""
},
{
"docid": "84802594cb5304ceebedadaed52cb223",
"text": "Ethically, you and your landlord should always report both income and expense as there technically exists a service and a rent. So it is subject to taxation. On the other hand, it can be considered an exchange of a simple favour and if it doesn't involve a money exchange or any profits (I am assuming that you are not selling what you or your landlord produce on the market) no value can be calculated thus no taxation can be applied. This changes though if a contract is involved, as a legal value can be estimated. Caution: These subjects can vary on an extreme level of specificity, of what can and cannot be claimed as income and expense, which can vary per country, state, province and even per judge, as well as the nature and sector of the work. Also, if you intend to formalize this relationship, the type of contract and reporting forms do vary per state as well. So it might be best to confirm it with a local legal advisor to avoid unfortunate surprises.",
"title": ""
},
{
"docid": "43f49166cd5d96efbe0bc4b3264f732e",
"text": "Hmmm. I hadn't considered that energy usage would be considered confidential. How about asking a nearby neighbor to share their next bill. If it's higher or lower than yours, just scale the history up or down accordingly. Other than that, the utility company might offer its own level billing plan where they handle the estimate and offer you the same payment each month.",
"title": ""
},
{
"docid": "d497f8cfbdbc39b4db633f05186d6ca9",
"text": "It is ordinary income to you. You should probably talk to a California licensed CRTP/EA/CPA, but I doubt they'll say anything different. You would probably ask them whether you can treat some of it as a refund of rent paid, but I personally wouldn't feel comfortable with that.",
"title": ""
},
{
"docid": "47fbaf740dacac037b1f7a8f5dfa294b",
"text": "This answer is assuming you're in the US, which apparently you're not. I doubt that the rules in the EU are significantly different, but I don't know for sure. In case of an IRS control, is it ok to say that I regularly connect remotely to work from home although in the work contract it says I must work at client's office? No. Are there any other ways I can prove that this deduction is valid? No. You can't prove something is valid when its not. You can only deduct home office expense if it is used exclusively for your business, and your bedroom obviously is not.",
"title": ""
},
{
"docid": "c713a48dcf00125363af47997e795bbf",
"text": "GET A LAWYER. Doing business with relatives is business first, and some effort spent in setting things up and nailing down exactly what the financial relationships and obligations are beforehand can save a lot of agony and animosity later. Assuming it's a legal rental, you may be able to deduct business costs spent on maintaining the rental unit, but of course you will have to declare the rent as income. If it's just a bedroom suite, rather than a full legal apartment, I don't think you can claim it as rental. (Note that whether you decide to share cooking and such is a separate question; apartment in most areas requires its own kitchen and bathroom.) As Joe pointed out, the actual purchase also sounds like it's going to involve a large gift, which has its own tax implications. Either that, or they retain ownership of their share and you get to deal with that if you or they decide to sell. Again: GET A LAWYER. And a tax accountant or tax lawyer to advise you on those implications. This is not someplace where the average wisdom of the Internet should be relied upon except for generalities; local laws and contract details matter.",
"title": ""
}
] |
fiqa
|
98e3ce48813577c3773c7b033c1d6c6b
|
How do I treat the income from an ESPP I sold now that I am a non-resident alien?
|
[
{
"docid": "abd138c01e6d5a971c99c8f92350dfec",
"text": "\"That's a tricky question and you should consult a tax professional that specializes on taxation of non-resident aliens and foreign expats. You should also consider the provisions of the tax treaty, if your country has one with the US. I would suggest you not to seek a \"\"free advice\"\" on internet forums, as the costs of making a mistake may be hefty. Generally, sales of stocks is not considered trade or business effectively connected to the US if that's your only activity. However, being this ESPP stock may make it connected to providing personal services, which makes it effectively connected. I'm assuming that since you're filing 1040NR, taxes were withheld by the broker, which means the broker considered this effectively connected income.\"",
"title": ""
}
] |
[
{
"docid": "7d5505b6c56edc9dc1592bdd431592f7",
"text": "You can keep your Mutual Funds. You have to communicate your new status to fund house. The SIP can continue. Please note you have to convert the savings account to NRO account. Most banks would keep the account number same, else you have to revise SIP debit to new NRO account. From a tax point of view, it would be similar to resident status. Right now short term gains are taxed. There are quite a few other things you may need to do. Although dated, this is a good article. PS: Once you become resident alien in US for tax purposes, you are liable for taxes on global income.",
"title": ""
},
{
"docid": "c1b97df8f72eb9db4c987059358d87ac",
"text": "\"Because you've sold something you've received cash (or at least an entry on your brokerage statement to say you've got cash) so you should record that as a credit in your brokerage account in GnuCash. The other side of the entry should go into another account that you create called something like \"\"Open Positions\"\" and is usually marked as a Liability account type (if you need to mark it as such). If you want to keep an accurate daily tally of your net worth you can add a new entry to your Open Positions account and offset that against Income which will be either negative or positive depending on how the position has moved for/against you. You can also do this at a lower frequency or not at all and just put an entry in when your position closes out because you bought it back or it expired or it was exercised. My preferred method is to have a single entry in the Open Positions account with an arbitrary date near when I expect it to be closed and each time I edit that value (daily or weekly) so I only have the initial entry and the current adjust to look at which reduces the number of entries and confusion if there are too many.\"",
"title": ""
},
{
"docid": "5585aaa5c498c78f143339441300c8fa",
"text": "Why not just leave it as is and register as foreign entity in New Mexico? You won't avoid the gross receipts tax, but other than that - everything stays as is. Unless Illinois has some taxes that you would otherwise not pay - just leave it there.",
"title": ""
},
{
"docid": "f82af4d38eca444773bd68289feb1710",
"text": "I think people in general tend to unnecessarily over-complicate this issue. Here's what I think you should do in any situation like this: First and foremost, put all tax considerations aside and decide whether it makes sense to sell the stock now or hold on to it for the long term based on its merits as an investment. Tax considerations have absolutely nothing to do with whether the stock is a good investment. If you consider all non-tax factors and decide to hold on to it for the long term, then you can use the tax considerations as a very minor input to how long you should hold it - in other words, don't set your time horizon to 17.5 months if waiting another 2 weeks gives you better tax treatment. You're going to pay taxes on your gains no matter what. The only difference is whether you pay capital gains tax or income tax. Granted, the income tax rate is higher, but wouldn't it suck if you pay a LOT less tax only because you have a LOT less value in your stock? So to answer your question - I would say, absolutely not, tax consequences do not make it worthwhile to hold on to your ESPP shares. If you decide to hold on to your ESPP for other reasons (and they better be good ones to put that much free profit at risk), only then should you look at the tax consequences to help fine-tune your strategy.",
"title": ""
},
{
"docid": "5aa0bc6369d80ae0d822ac99550e87f9",
"text": "When the deal closes, will it be as if I sold all of my ESPP shares with regards to taxes? Probably. If the deal is for cash and not stock exchange, then once the deal is approved and closed all the existing shareholders will sell their shares to the buyer for cash. Is there any way to mitigate this? Unlikely. You need to understand that ESPP is just a specific way to purchase shares, it doesn't give you any special rights or protections that other shareholders don't have.",
"title": ""
},
{
"docid": "c1f72824ef2b3072f154a0d2fa565ef4",
"text": "Depending on what software you use. It has to be reported as a foreign income and you can claim foreign tax paid as a foreign tax credit.",
"title": ""
},
{
"docid": "1f7667a2760ae4f21cf8be02f371e524",
"text": "\"Its not for US citizens - its for US residents. If the US considers you as a tax resident - you'll be treated the same as a US citizen, regardless of your immigration status. The question is very unclear, since it is not mentioned whether your US sourced income \"\"from the Internet\"\" is sales in the US, sales on-line, services you provide, investments, or what else. All these are treated differently. For some kinds of US-sourced income you should have paid taxes in the US already, regardless of where you physically reside. For others - not. In any case, if you become US tax resident, you'll be taxed on your worldwide income, not only the $10K deposited in the US bank account. ALL of your income, everywhere in the world, must be declared to the US government and will be taxed. You should seek professional advice, before you move to the US, in order to understand your responsibilities, liabilities and rights. I suggest looking for a EA/CPA licensed in California and experienced with taxation of foreigners (look for someone in the SF or LA metropolitan areas). Keep in mind that there may be a tax treaty between the US and your home country that may affect your Federal (but not California) taxes.\"",
"title": ""
},
{
"docid": "7c508e1bfa1f1a72afe1862b8a3f064f",
"text": "It is perfectly legitimate to adjust your 1099-B income by broker's fees. Publication 17 (p 116) specifically instructs taxpayers to adjust their Schedule D reporting by broker's fees: Form 1099-B transactions. If you sold property, such as stocks, bonds, or certain commodities, through a broker, you should receive Form 1099-B or substitute statement from the broker. Use the Form 1099-B or the substitute statement to complete Form 8949. If you sold a covered security in 2013, your broker should send you a Form 1099-B (or substitute statement) that shows your basis. This will help you complete Form 8949. Generally, a covered security is a security you acquired after 2010. Report the gross proceeds shown in box 2a of Form 1099-B as the sales price in column (d) of either Part I or Part II of Form 8949, whichever applies. However, if the broker advises you, in box 2a of Form 1099-B, that gross proceeds (sales price) less commissions and option premiums were reported to the IRS, enter that net sales price in column (d) of either Part I or Part II of Form 8949, whichever applies. Include in column (g) any expense of sale, such as broker's fees, commissions, state and local transfer taxes, and option premiums, unless you reported the net sales price in column (d). If you include an expense of sale in column (g), enter “E” in column (f). You can rely on your own records and judgment, if you feel comfortable doing so. Brokers often make incomplete tax reporting. This may have been simpler from their perspective if the broker fees were variable, or integrated, or unknown for a number of clients party to a transaction. If a taxpayer has documentation of the expenses that justify an adjustment, then it's perfectly appropriate to include that in the calculations. It is not necessary to report the discrepancy, and it may increase scrutiny to include a written addendum. The Schedule D, Form 8949, and Form 1099-B will probably together adequately explain the source of the deduction.",
"title": ""
},
{
"docid": "8dd55b46d9c07218fb9f8baf97aa6c57",
"text": "There is Free employer money on both sides of the tax fence for some employees. On the pretax side, your employer may provide you a match. If so, invest the maximum to get 100% of the match. On the after tax side, many companies offers a 15% discount on ESPP plans and a one year hold. My wife has such an employer. The one year hold is fine because it allows us to be taxed at Long Term Capital gains if the stock goes up which is lower than our current income bracket. After creating a seasoned pool of stocks that we could sell after the one year hold, we are then able to sell the same number of stocks purchased each month. This provides a 17.6% guaranteed gain on a monthly basis. How much would you purchase if you had a guaranteed 17.6% return. Our answer is 15% (our maximum allowed). The other trick is that while the employer is collecting the money, you will purchase the stock at the lowest day of the period. You will usually sell for even more than the purchase price unless the day purchased was the lowest day of month. The trick is to reinvest the money in tax free investments to balance out the pretax investing. Never leave the money in the plan. That is too much risk.",
"title": ""
},
{
"docid": "4911f9a1e0f23dca3556083c61350494",
"text": "\"Since you did not treat the house as a QBU, you have to use USD as your functional currency. To calculate capital gains, you need to calculate the USD value at the time of purchase using the exchange rate at the time of purchase and the USD value at the time of sale using the exchange rate at the time of sale. The capital gain / loss is then the difference between the two. This link describes it in more detail and provides some references: http://www.maximadvisors.com/2013/06/foreign-residence/ That link also discusses additional potential complications if you have a mortgage on the house. This link gives more detail on the court case referenced in the above link: http://www.uniset.ca/other/cs5/93F3d26.html The court cases references Rev. Rul 54-105. This link from the IRS has some details from that (https://www.irs.gov/pub/irs-wd/0303021.pdf): Rev. Rul. 54-105, 1954-1 C.B. 12, states that for purposes of determining gain, the basis and selling price of property acquired by a U.S. citizen living in a foreign country should be expressed in United States dollars at the rates of exchange prevailing as of the dates of purchase and sale of the property, respectively. The text of this implies it is for U.S. citizen is living in a foreign country, but the court case makes it clear that it also applies in your scenario (house purchased while living abroad but now residing in the US): Appellants agree that the 453,374 pounds received for their residence should be translated into U.S. dollars at the $1.82 exchange rate prevailing at the date of sale. They argue, however, that the 343,147 pound adjusted cost basis of the residence, consisting of the 297,500 pound purchase price and the 45,647 pounds paid for capital improvements, likewise should be expressed in U.S. dollar terms as of the date of the sale. Appellants correctly state that, viewed “in the foreign currency in which it was transacted,” the purchase generated a 110,227 pound gain as of the date of the sale, which translates to approximately $200,000 at the $1.82 per pound exchange rate. ... However fair and reasonable their argument may be, it amounts to an untenable attempt to convert their “functional currency” from the U.S. dollar to the pound sterling. ... Under I.R.C. § 985(b)(1), use of a functional currency other than the U.S. dollar is restricted to qualified business units (\"\"QBU\"\"s). ... appellants correctly assert that their residence was purchased “for a pound-denominated value” while they were “living and working in a pound-denominated economy,” ... And since appellants concede that the purchase and sale of their residence was not carried out by a QBU, the district court properly rejected their plea to treat the pound as their functional currency.\"",
"title": ""
},
{
"docid": "6ec01865ee73ef189c3c8933505cce2a",
"text": "RSU are taxed when vested, based on their value at that point, as salary. If you don't sell to cover, you need to pay the taxes, if you sell to cover - you sell the portion that is worth the taxes (brokers do that automatically, and remit the taxes on your behalf). Once paid your taxes, it becomes a regular stock position - short term gains if you sell within a year after vesting, long term if you wait for more than a year. The consideration whether to wait or sell is as with any other investment, them being previously restricted has no meaning. You calculate the gain for each position, so the fact that you have more than one position is not a problem. The RSU income and the taxes paid will appear on your W2, so when the broker reports proceeds, you can show the basis and thus calculate the gain. See this question for some useful answers on how to report the RSU sale on your taxes.",
"title": ""
},
{
"docid": "76ba232784fe8f7278b91b3212d6596d",
"text": "You didn't give enough information. What is your goal? What is your financial situation? A discount to buy company stock can seem very tempting. I was tempted by it myself, gee, almost 20 years ago. I still own some of the stock. But I held mutual funds first. There are two disadvantages that have disuaded me from partaking in the ESPP of my subsequent employers (one of which was a spin-out company of the stock-issuing company, the other having bought the spin-out). First, putting a bunch of money in a single stock is rather risky. single stocks will drop dramatically due to market conditions. Generally market conditions don't act so dramatically on all stock. Second, is it wise to put not only your salary but also your saved wealth all in one basket? It worked out reasonably well for me. The stock doubled right before my division was spun out -- I sold half of my position. And the resulting stock has continued to provide opportunities to diversify. However, it could have just as easily dropped in half instead of doubled. What is your timeline for holding the stock -- for realizing any gain? Can you afford patience if the stock value should drop in half? I have co-workers who continue to invest through our new company's ESPP. At least one co-worker has the stated goal to sell after every purchase -- he holds the stock long enough to make a long-term gain instead of short term, but he sells after every purchase. And it seems to him that the stock always drops right when he wants to sell.",
"title": ""
},
{
"docid": "b71efbb3f5044251b6e0a556fed686ed",
"text": "\"If you haven't been a US resident (not citizen, different rules apply) at the time you sold the stock in Europe but it was inside the same tax year that you moved to the US, you might want to have a look at the \"\"Dual Status\"\" part in IRS publication 519.\"",
"title": ""
},
{
"docid": "9c11adb5071b17afcac09a15263f2afe",
"text": "I did this for the last tax year so hopefully I can help you. You should get a 1099-B (around the same time you're getting your W-2(s)) from the trustee (whichever company facilitates the ESPP) that has all the information you need to file. You'll fill out a Schedule D and (probably) a Form 8949 to describe the capital gains and/or losses from your sale(s). It's no different than if you had bought and sold stock with any brokerage.",
"title": ""
},
{
"docid": "fd1d479b3ef0591db81ed22afc57b378",
"text": "\"I'm not personally familiar with this, but I had a look at the Companies House guidance. Unfortunately, it seems you've done things in the wrong order. You should have first got the funds out, distributed them to yourself as a dividend or salary, and then closed the account, and then wound up the company. Legally speaking, the remaining funds now belong to the government (\"\"bona vacantia\"\"). It's possible you could apply to have the company restored, but I think that might be difficult; I don't think the administrative restoration procedure applies in your situation. Given the amount involved, I'd suggest just forgetting about it.\"",
"title": ""
}
] |
fiqa
|
8b43fdc1454d52b08503eca6b00457bf
|
Should I keep copies of my business's invoices for tax records?
|
[
{
"docid": "5343a55d9de262de93da6ee1e7ee768a",
"text": "It's always beneficial to have detailed business records. There are any number of reasons where you'd need to prove both the types of services you've rendered and the payment history - you've already noted audits (for IRS taxes). Other possibilities: Whether these records need to be original or electronic might be the topic for another question.",
"title": ""
}
] |
[
{
"docid": "b785bcf974c97d43b0f71c871e9a9f2a",
"text": "No, even businesses pay taxes quarterly. So if you formed Nathan, LLC, or otherwise became self employed, you'd still have to file quarterly estimates and make tax payments. This would cause taxes to be a much more high touch part of your life. However, you should ensure that you're claiming the proper exemptions etc to avoid excessive withholding.",
"title": ""
},
{
"docid": "769c576c16662129867297ce0d808f29",
"text": "We run into this all the time with our EU clients. As far as I can tell, the only requirements when it comes to invoicing have to do with sales tax, which is determined at the state level, and only in the case that items are taxable. It seems that the service provided to you is not taxable and so there is no obligation under Californian law to provide you with the invoice you need. That said, it would be nice to provide this information to you as a courtesy. We don't provide the information typically required by EU tax authorities on our receipts either, but whenever one of our EU clients requests a more formal invoice we gladly send them one.",
"title": ""
},
{
"docid": "986c9acc7c40e3a524b8ef9cff81fbe9",
"text": "I just scanned in a single sheet summary of my last two years tax returns. It is something our CPA does for us. How would I post it? Don't worry, I marked out all the personal information. What is says is I paid over $50K in taxes in 2015. Last year we had one of our biggest contracts put on hold, so I only paid $20K. I won't have this years figures, because we don't submit them to our CPA until the end of the year. However, this year, we just bought out two other owners at $1.2M, which makes me a 33% owner. The contract is getting restarted (knock on wood), which all together means my personal tax liability is going to be well over $100K. My company is a commercial company, but we work with the government, and matter of fact some of the stuff we produce was designed and developed by the government (as is many of today's modern inventions - I think you would be surprised). So lets tackle it one at a time. Pick one of those things that commercial does better than government. P.s. Higher taxes doesn't mean higher for you, a lot of times it means higher for guys like me or way better than me (which I am perfectly fine with, and matter of fact would support). People who use infastructure more - like large corporations - should pay more for it...",
"title": ""
},
{
"docid": "df72925f51029c060510200978db244d",
"text": "Yes. This income would be reported on schedule SE. Normally, you will not owe any tax if the amount is less than $400. Practically, $100 in a garage sale is not why the IRS created the form SE. I wouldn't lose sleep over keeping track of small cash sales over the course of a year. However, if you have the information I'm not going to tell you not to report it.",
"title": ""
},
{
"docid": "5ed2cb583c94cdfb5b01560cfa611d27",
"text": "So long as you don't hate what you are doing, I'd say the price is somewhere in the neighborhood of $100-200 year of income to be worth the bookkeeping. I'd only say more than that if you have a ridiculously complex tax situation, you have an irrational hatred of filling out a few forms once a year, or if you just have such a stupidly large amount of money that even having a few hundred dollars a year to donate to people in desperate need just doesn't mean anything to you. Or if you are under special income limits and just a few dollars of income would put you in a bad situation (like a loss of medical benefits, etc). The reason is actually quite simple: the taxes aren't really that hard or time consuming. I've handled three self-employment businesses in my life, and unless you are trying to itemize every last dollar of business deductions and expenses, or you really want to scrape out every last cent from minor deductions that require considerable extra paperwork, it's a few extra forms on your taxes. Most of the extra taxes are as a percentage, so it reduces the benefits, but really not by much. You don't have to make it extra complicated if the extra complexity doesn't give you a big payoff in benefit. I would suggest you pick the simplest imaginable possible system for accounting for this, so that you might only spend an extra few hours per year on the books and taxes. Don't keep $10 sheet music receipts if you feel it's a burden to try to itemize expenses, etc. Instead, the decision should be if you (or in this case your wife) would enjoy doing it, and bringing in money can just be nice in it's own way. I'd suggest she keep some out for little extra niceties, earmark some for feel-good charitable giving, and then of course sock away the rest. Don't let extra income be an unnecessary burden that prevents you from getting it in the first place.",
"title": ""
},
{
"docid": "5ecd6e0d6e53174eb4327a0d37e38bde",
"text": "Unfortunately, my taxes tend to be complicated This. In and of itself, is a greater reason to keep the documents. The other answer offered a good summary, but keep in mind, if the IRS decides you fraudulently withheld claiming income, they can go back 7 years. I bought a rental property in 1987, and sold it in 2016. In that case, keeping the returns seemed the right thing to do to have the paper trail for basis, else I could claim anything, and hope for the best. I have all my tax returns since my first tax return, 1980. It's one drawer of a file cabinet. Not too great a burden.",
"title": ""
},
{
"docid": "d4e6fe0aa15ee2e3158e55925b69ad93",
"text": "No, do not file a Form 1099. You should not issue a form to yourself and you have no separate entity to issue one. The reporting obligation is Form 1040, plus Schedule C. You may have followed a wrong turn somewhere in the TurboTax questionnaire or it may not have picked up the subtleties of your situation. The business income is already yours. Some writers use vehicles to hold their royalties and pay themselves. The questionnaire may have been trying to get at this issue or may have wrongly assumed it. There are special rules around such entities, so getting an adviser is a good idea. For now, just file Schedule C, remember to deduct your costs (e.g. cost to print the books), and pay your self-employment tax.",
"title": ""
},
{
"docid": "86ca0abf6aafa8af607fcb744d027344",
"text": "The regulations you're talking about (TR 1.263) are going into effect starting tax year 2016, so for purchases you made last year they're (kindof...) irrelevant. Kindof, because the IRS promises to not audit those that qualify under the regulations even if they use it before it goes into effect, but it doesn't legally have to. Since the regulations are new, I suggest you talk to a licensed professional who'd explain them to you and interpret them with regards to your specific situation. From my brief read, you can expense under these rules things that you would otherwise capitalize, with the $500 limit to the invoice. Meaning, if you bought a computer paying $500, which you use 50% for your business - you can expense $250. The benefit, comparing to the Sec. 179, is that you're not limited to new items, nor are you limited to business revenue. Otherwise, it looks like the applicability is similar. As I said - talk to a licensed tax adviser (EA/CPA licensed in your State), since these rules are new and untested, and you should probably have a professional provide guidance. I'm not such a professional.",
"title": ""
},
{
"docid": "807c16336abdd3d0c6f9ee3fa1c647fa",
"text": "\"The personal checks may be due to their bank not issuing the company checks yet and there may also not be a payroll system in place at this time. So far as the W2's are concerned you should probably ask the owner if they plan on distributing them to the employees. If the owner has no interest in making you proper \"\"on the books employees\"\" let them know that they should probably be paying you in cash so that if the IRS comes you wont be tied to it. Obviously working in cash (off the books) has its drawbacks (no rights or protections) and benefits (no taxes).\"",
"title": ""
},
{
"docid": "a4e58727a5c4014e2a94305aaf66c17a",
"text": "If the business activities are closely related you could combine them into a single Schedule C, but in your case it sounds like it should be two separate Schedule C's. The loss from one will offset profit from the other, and your self-employment and income taxes will be based on the net of the two businesses. Any business can generate losses, make sure your expenses are reasonable and documented, there are plenty of resources out there for helping you decide which expenses are proper for each business. There is some truth to the warning that not showing profit in 2/5 of years can raise flags at the IRS, and they may deem your business a hobby, which disallows losses. That is not a hard rule, legitimate businesses can lose money for years on end without issue, if you're trying to make money at it, you'll likely be fine.",
"title": ""
},
{
"docid": "3ab074c9108274b749a78047bc2eec8f",
"text": "\"Journal entry into Books of company: 100 dr. expense a/c 1 200 dr. expense a/c 2 300 dr. expanse a/c 3 // cr. your name 600 Each expense actually could be a total if you don´t want to itemise, to save time if you totaled them on a paper. The paper is essentually an invoice. And the recipts are the primary documents. Entry into Your journal: dr. Company name // cr. cash or bank You want the company to settle at any time the balce is totaled for your name in the company books and the company name in your books. They should be equal and the payment reverses it. Or, just partially pay. Company journal: dr. your name // cr. cash or bank your journal: dr. cash or bank // cr. company name Look up \"\"personal accounts\"\" for the reasoning. Here is some thing on personal accounts. https://books.google.com/books?id=LhPMCgAAQBAJ&pg=PT4&dq=%22personal+account%22+double+entry&hl=es-419&sa=X&redir_esc=y#v=onepage&q=%22personal%20account%22%20double%20entry&f=false\"",
"title": ""
},
{
"docid": "1071e7137d3521bb67f4701cdadd93d3",
"text": "\"I would say to only bother keeping the ones you know you'll use for itemized deductions. This includes any unreimbursed business expenses and vehicle licensing fees. There are a lot of other itemized tax deductions possible, but those are two common ones. Also, keep track of your business mileage (mileage before and after the trip, and commuting doesn't count as \"\"business mileage\"\"). You may also want to keep receipts of all out-of-state purchases if your state is one of those that tries to collect state tax on out-of-state purchases. Ensure your supported charities are 501(c)(3), and they'll give you a receipt at the end of the year. Don't bother keeping fast food or gas receipts (unless they're business expenses).\"",
"title": ""
},
{
"docid": "8c0d1ce03947d1f4d6f5848f144ecc88",
"text": "\"In the UK Directgov don't specify anything more than \"\"records\"\", which leads me to think that a digital copy might be acceptable. With regards to bank statements, individuals (i.e. not self-employed, or owning a business) need to keep them for between 12 and 15 months after your tax return, depending on when you filed it. Source: Record keeping (individuals and directors) - Directgov\"",
"title": ""
},
{
"docid": "fcb2df2969c498e8cc9787fb8e1c130e",
"text": "I was only able to find Maryland form 1 to fit your question, so I'll assume you're referring to this form. Note the requirement: Generally all tangible personal property owned, leased, consigned or used by the business and located within the State of Maryland on January 1, 201 must be reported. Software license (whether time limited or not, i.e.: what you consider as rental vs purchase) is not tangible property, same goes to the license for the course materials. Note, with digital media - you don't own the content, you merely paid for the license to use it. Design books may be reportable as personal tangible property, and from your list that's the only thing I think should be reported. However, having never stepped a foot in Maryland and having never seen (or even heard of) this ridiculous form before, I'd suggest you verify my humble opinion with a tax adviser (EA/CPA) licensed in the State of Maryland to confirm my understanding of this form.",
"title": ""
},
{
"docid": "e9149538d610725a2eac924e1aea37af",
"text": "As I write this, the NASDAQ Composite is at 2790.00, down 6.14 points from yesterday. To calculate the percentage, you take 6.14 and divide by yesterday's close of 2796.14 to yield 0.22%. In your example, if SPY drops from 133.68 to 133.32, you use the difference of -0.36 and divide by the original, i.e. -0.36/133.68 = -0.27%. SPY is an ETF which you can invest in that tracks the S&P 500 index. Ideally, the index would have dropped the same percentage as SPY, but the points would be different (~10x higher). To answer your question about how one qualifies a point, it completely depends on the index being discussed. For example, the S&P 500 is a market-capitalization weighted index of the common stock of 500 large-cap US public companies. It is as if you owned every share of each of the 500 companies, then divide by some large constant to create a number that's easily understood mentally (i.e. 1330). The NASDAQ Composite used the same methodology but includes practically all stocks listed on the NASDAQ. Meanwhile, the Dow Jones Industrial Average is a price-weighted index of 30 large-cap companies. It's final value is modified using a divisor known as the Dow Divisor, which accounts for stock splits and similar events that have occurred since a stock has joined the index. Thus, points when referring to an index do not typically represent dollars. Rather, they serve as a quantitative measure of how the market is doing based on the performance of the index constituents. ETFs like SPY add a layer of abstraction by creating an investible vehicle that ideally tracks the value of the underlying index directly. Finally, neither price nor index value is related to volume. Volume is a raw measurement of the total number of shares traded for a given stock or the aggregate for a given exchange. Hope this helps!",
"title": ""
}
] |
fiqa
|
348ec50425e894d769873c9afd7ef51d
|
Ways to invest my saved money in Germany in a halal way?
|
[
{
"docid": "39a433a84ddadd612b78e80c78d4808f",
"text": "\"The UK has Islamic banks. I don't know whether Germany has the same or not (with a quick search I can find articles stating intentions to establish one, but not the results). Even if there's none in Germany, I assume that with some difficulty you could use banks elsewhere in the EU and even non-Euro-denominated. I can't recommend a specific provider or product (never used them and probably wouldn't offer recommendations on this site anyway), but they advertise savings accounts. I've found one using a web search that offers an \"\"expected profit rate\"\" of 1.9% for a 12 month fix, which is roughly comparable with \"\"typical\"\" cash savings products in pounds sterling. Typical to me I mean, not to you ;-) Naturally you'd want to look into the risk as well. Their definition of Halal might not precisely match yours, but I'm sure you can satisfy yourself by looking into the details. I've noticed for example a statement that the bank doesn't invest your money in tobacco or alcohol, which you don't give as a requirement but I'm going to guess wouldn't object to!\"",
"title": ""
},
{
"docid": "322adf88e50cec540e2b289c981ad770",
"text": "You can invest in a couple of Sharia-conform ETFs which are available in Germany and issued by Deutsche Bank (and other financial institutions). For instance, have a look at these ETFs: DB Sharia ETFs In addition, Kuveyt Turk Bank aims to become Germany's first Islamic bank offering Sharia conform investments (Reuters).",
"title": ""
},
{
"docid": "dd013c343baa4481ea089b48a77aae36",
"text": "\"What is actually a halal investment? Your definition of halal investment is loose and subject to interpretation. On one hand, nothing is fixed in the financial world. You might get a 10 Year Germany Bund with a fixed coupon rate of 1%, but the real rate of return of this investment is far from fixed. It depends on the market environment, the inflation, etc. (Also, you can trade this investment on the secondary market at any time.) Moreover, the country can default. For example, nothing is \"\"fixed\"\" if you hold the Argentina bonds. You might think a saving account in the bank is a fixed investment. But again, what about the inflation? And if you talk with the account holders in Cyprus, you will understand there is no such thing that you are \"\"guaranteed to profit a fixed amount each month or year\"\". So, from this point of view, everything is \"\"halal\"\", because nothing is fixed and the risk of losing the principle is alway there. On the other hand, if you assume that investing a government bond and having a saving account is not halal by definition, you will end up with a situation that every investment is not halal. Suppose you invest in a company. What does the company do with your money? Sure, they will use some of your money to buy equipments, hire new people, and so on. But they will always save some money as cash reserves to meet the short-term and emergency funding needs. Those cash reserves are usually in the form of highly liquid investment, such as short-term bonds, money market funds, savings in a bank account, etc. Because those investments are not halal per definition, is your investment in the company still halal? So in the end, you might just do whatever you want depending on your interpretation.\"",
"title": ""
},
{
"docid": "edfb5aeb4679f536da7472fa3de96b80",
"text": "What is not permitted in Islam is the practice of making unethical or immoral monetary loans that unfairly enrich the lender. Originally, usury meant interest of any kind. A loan may be considered usurious because of excessive or abusive interest rates or other factors. But In case of financial markets, people borrow money to make money and both parties benefits, and no one is taking advantage of the other. I may be wrong in interpreting this way, God knows the best.",
"title": ""
}
] |
[
{
"docid": "fb7489191787be6458bb24d48707cb7c",
"text": "You are not limited in these 3 choices. You can also invest in ETFs, which are similar to mutual funds, but traded like stocks. Usually (at least in Canada), MERs for ETFs are smaller than for mutual funds.",
"title": ""
},
{
"docid": "2fc135b838728f4607f8c4b954275f64",
"text": "Bank accounts? It is worse than that. People are afraid to invest in bank accounts. Did you see the bit when German government bonds hit a negative interest rate recently? (As in you buy a bond and in five years time the government promises to give nearly all of it back)",
"title": ""
},
{
"docid": "7624eb3ecdcd90198d5248bf06e3b563",
"text": "One possibility would be to invest in a crude oil ETF (or maybe technically they're an ETP), which should be easily accessible through any stock trading platform. In theory, the value of these investments is directly tied to the oil price. There's a list of such ETFs and some comments here. But see also here about some of the problems with such things in practice, and some other products aiming to avoid those issues. Personally I find the idea of putting all my savings into such a vehicle absolutely horrifying; I wouldn't contemplate having more than a small percentage of a much more well diversified portfolio invested in something like that myself, and IMHO it's a completely unsuitable investment for a novice investor. I strongly suggest you read up on topics like portfolio construction and asset allocation (nice introductory article here and here, although maybe UK oriented; US SEC has some dry info here) before proceeding further and putting your savings at risk.",
"title": ""
},
{
"docid": "597e6d04eba8bbeb3344b750e7fe1092",
"text": "\"This is my two cents (pun intended). It was too long for a comment, so I tried to make it more of an answer. I am no expert with investments or Islam: Anything on a server exists 'physically'. It exists on a hard drive, tape drive, and/or a combination thereof. It is stored as data, which on a hard drive are small particles that are electrically charged, where each bit is represented by that electric charge. That data exists physically. It also depends on your definition of physically. This data is stored on a hard drive, which I deem physical, though is transferred via electric pulses often via fiber cable. Don't fall for marketing words like cloud. Data must be stored somewhere, and is often redundant and backed up. To me, money is just paper with an amount attached to it. It tells me nothing about its value in a market. A $1 bill was worth a lot more 3 decades ago (you could buy more goods because it had a higher value) than it is today. Money is simply an indication of the value of a good you traded at the time you traded. At a simplistic level, you could accomplish the same thing with a friend, saying \"\"If you buy lunch today, I'll buy lunch next time\"\". There was no exchange in money between me and you, but there was an exchange in the value of the lunch, if that makes sense. The same thing could have been accomplished by me and you exchanging half the lunch costs in physical money (or credit/debit card or check). Any type of investment can be considered gambling. Though you do get some sort of proof that the investment exists somewhere Investments may go up or down in value at any given time. Perhaps with enough research you can make educated investments, but that just makes it a smaller gamble. Nothing is guaranteed. Currency investment is akin to stock market investment, in that it may go up or down in value, in comparison to other currencies; though it doesn't make you an owner of the money's issuer, generally, it's similar. I find if you keep all your money in U.S. dollars without considering other nations, that's a sort of ignorant way of gambling, you're betting your money will lose value less slowly than if you had it elsewhere or in multiple places. Back on track to your question: [A]m I really buying that currency? You are trading a currency. You are giving one currency and exchanging it for another. I guess you could consider that buying, since you can consider trading currency for a piece of software as buying something. Or is the situation more like playing with the live rates? It depends on your perception of playing with the live rates. Investments to me are long-term commitments with reputable research attached to it that I intend to keep, through highs and lows, unless something triggers me to change my investment elsewhere. If by playing you mean risk, as described above, you will have a level of risk. If by playing you mean not taking it seriously, then do thorough research before investing and don't be trading every few seconds for minor returns, trying to make major returns out of minor returns (my opinion), or doing anything based on a whim. Was that money created out of thin air? I suggest you do more research before starting to trade currency into how markets and trading works. Simplistically, think of a market as a closed system with other markets, such as UK market, French market, etc. Each can interact with each other. The U.S. [or any market] has a set number of dollars in the pool. $100 for example's sake. Each $1 has a certain value associated with it. If for some reason, the country decides to create more paper that is green, says $1, and stamps presidents on them (money), and adds 15 $1 to the pool (making it $115), each one of these dollars' value goes down. This can also happen with goods. This, along with the trading of goods between markets, peoples' attachment of value to goods of the market, and peoples' perception of the market, is what fluctates currency trading, in simple terms. So essentially, no, money is not made out of thin air. Money is a medium for value though values are always changing and money is a static amount. You are attempting to trade values and own the medium that has the most value, if that makes sense. Values of goods are constantly changing. This is a learning process for me as well so I hope this helps answers your questions you seem to have. As stated above, I'm no expert; I'm actually quite new to this, so I probably missed a few things here and there.\"",
"title": ""
},
{
"docid": "9d155f9d18eb8d36cf84227f169d5674",
"text": "There are lot of options. I personally avoid keeping money in bank accounts and invest in one of the funds. It's just my personal opinion, you can ask your Ulamas",
"title": ""
},
{
"docid": "6043f38787d467997ff5fd6af3ed2680",
"text": "A guy I used to work with would buy some shares in certain companies on a regular basis. The guy in question chose Coke, Pepsi, GE, Disney and some other old stable stocks. He just kept buying a few shared ($50 or so at a time) year after year after year. He worked his entire life, but by the time he was ready to retire, he had a pretty sizable investment; he was worth a rather tidy sum. The moral of the story is, it is very much worth it to invest a bit at a time. Don't bother with the idea of buying low and selling high; not right now. Just go ahead and buy stable stocks (or shares of index funds) and wait them out. This strategy (mixed with other retirement tactics like a 401K from work, and IRA of your own, Social Security in the US) is a good way to build wealth. Don't spend money you don't have, be ready for a long term investment and I think it makes great sense, regardless of what country you live in.",
"title": ""
},
{
"docid": "4d0c682843b282a6198ecc012f163746",
"text": "This. Why not convert the 50k euro to dollars and AUD, and invest in a basket of companies that trade on American/Australian exchanges instead. You could hold a bit of gold, but I would definitely not put everything into gold.",
"title": ""
},
{
"docid": "7edb0443a0be511f049c198dab38a4bc",
"text": "To start with, you are right, there shouldn't be any additional fees other than the currency exchange fee - I'm not sure of the exact fee for Natwest, but for Halifax this was around 2.5% for big currencies like the Euro. However, Germany doesn't actually use debit cards nearly as much as we do here in the UK, so you will almost certainly need cash. Rather than taking this from a currency exchange booth, what you should do in order to get the lowest fees is head straight to the ATM of any bank, and put your card in to make a cash withdrawal. It will almost certainly ask if you want to use their exchange rate, which it will show you, and you will almost certainly be better turning this down and allowing Natwest to do this for you. Dependent on the bank their currency exchange spread may be as high as 4.5%. I hope this helps, it certainly saved me a lot of money when I have been going abroad.",
"title": ""
},
{
"docid": "d388e19f4300d6d95e8b201b3d232df5",
"text": "Here's an unconventional approach: If you really need the money you can always call the bank or go to one of their branches and get new login credentials after some kind of formal process like proving that you are in fact the account holder. Since it will be a hassle to get the credentials you will not do it if it's not necessary. In germany the banks all use transaction authentication numbers (TAN) that you need to authorize a transfer. If there is such a thing in UK you can just throw the TAN list away. This way you can still check your savings balance but you cannot transfer the money without requesting a new TAN list which takes time and effort.",
"title": ""
},
{
"docid": "1f5747cf4bc4955f3b1a7492034f2a17",
"text": "\"With permanent contract in Germany you shouldn't have any problem getting a loan. It's even more important than how much do you earn. Generally, you should ask for a house mortgage (Baufinanzierungsdarlehen) with annuity as a type of credit to save on interest. Besides, you usually get a better conditions with a saving bank (Sparkasse) or a popular bank (Volksbank) situated in the area where your house is situated. You also shouldn't combine your credit with extra products (the simpler is the product, the better is for you), maybe I'll write later an extra piece on the common pitfalls in this regard. Probably, you could find a bank that would give you such a loan, but it would be very expensive. You should save at least 40%, because then the bank can refinance your loan cheaply and in return offer you a low interest. Taxes depend heavily on the place where you buy a house. When you buy it, you pay a tax between 3.5% and 6% (look up here). Then you pay a property tax (Grundsteuer), it depends on community how much do you pay, the leverage is called Hebesatz (here's example). Notary would cost ca. 1.5% of the house price. All and all, you should calculate with 10% A country-independent advice: if you want to save on interest in the long run, you should take an annuity loan with the shortest maturity. Pay attention to effective interest rate. Now to Germany specifics. Don't forget to ask about \"\"Sondertilgung\"\" (extra amortization) - an option to amortize additionaly. Usually, banks offer 5% Sondertilgung p.a. The interest-rate is usually fixed for 8 years (however, ask about it), this period is called Zinsbindung. It sound ridiculous, but in southern lands (Bayern, Baden-Württemberg) you usually get better conditions as in Berlin or Bremen. The gap could be as big as 0.5% p.a. of effective interest rate! In Germany they often use so-called \"\"anfängliche Tilgung\"\" (initial rate of amortizazion) as a parameter.\"",
"title": ""
},
{
"docid": "147702b696d74f38ad96ef0b2785ada8",
"text": "Compound interest is your friend. For such a low amount of cash, just pop it into savings accounts or deposits. When you reach about 1.500€ buy one very defensive stock that pays high dividends. With deposits, you don't risk anything, with one stock, you can lose 100% of the investment. That's why it's important to buy defensive stock (food, pharma, ...). Every time you hit 1.500€ after, buy another stock until you have about 10 different stock in different sectors, in different countries. Then buy more stock of the ones you have in portfolio. You're own strategy is pretty good also.",
"title": ""
},
{
"docid": "2ccdf1e5dd46c8433b4bc98d3814f4ea",
"text": "We don't have a good answer for how to start investing in poland. We do have good answers for the more general case, which should also work in Poland. E.g. Best way to start investing, for a young person just starting their career? This answer provides a checklist of things to do. Let's see how you're doing: Match on work pension plan. You don't mention this. May not apply in Poland, but ask around in case it does. Given your income, you should be doing this if it's available. Emergency savings. You have plenty. Either six months of spending or six months of income. Make sure that you maintain this. Don't let us talk you into putting all your money in better long term investments. High interest debt. You don't have any. Keep up the good work. Avoid PMI on mortgage. As I understand it, you don't have a mortgage. If you did, you should probably pay it off. Not sure if PMI is an issue in Poland. Roth IRA. Not sure if this is an issue in Poland. A personal retirement account in the US. Additional 401k. A reminder to max out whatever your work pension plan allows. The name here is specific to the United States. You should be doing this in whatever form is available. After that, I disagree with the options. I also disagree with the order a bit, but the basic idea is sound: one time opportunities; emergency savings; eliminate debt; maximize retirement savings. Check with a tax accountant so as not to make easily avoidable tax mistakes. You can use some of the additional money for things like real estate or a business. Try to keep under 20% for each. But if you don't want to worry about that kind of stuff, it's not that important. There's a certain amount of effort to maintain either of those options. If you don't want to put in the effort to do that, it makes sense not to do this. If you have additional money split the bulk of it between stock and bond index funds. You want to maintain a mix between about 70/30 and 75/25 stocks to bonds. The index funds should be based on broad indexes. They probably should be European wide for the most part, although for stocks you might put 10% or so in a Polish fund and another 15% in a true international fund. Think over your retirement plans. Where do you want to live? In your current apartment? In a different apartment in the same city? In one of the places where you inherited property? Somewhere else entirely? Also, do you like to vacation in that same place? Consider buying a place in the appropriate location now (or keeping the one you have if it's one of the inherited properties). You can always rent it out until then. Many realtors are willing to handle the details for you. If the place that you want to retire also works for vacations, consider short term rentals of a place that you buy. Then you can reserve your vacation times while having rentals pay for maintenance the rest of the year. As to the stuff that you have now: Look that over and see if you want any of it. You also might check if there are any other family members that might be interested. E.g. cousins, aunts, uncles, etc. If not, you can probably sell it to a professional company that handles estate sales. Make sure that they clear out any junk along with the valuable stuff. Consider keeping furniture for now. Sometimes it can help sell a property. You might check if you want to drive either of them. If not, the same applies, check family first. Otherwise, someone will buy them, perhaps on consignment (they sell for a commission rather than buying and reselling). There's no hurry to sell these. Think over whether you might want them. Consider if they hold any sentimental value to you or someone else. If not, sell them. If there's any difficulty finding a buyer, consider renting them out. You can also rent them out if you want time to make a decision. Don't leave them empty too long. There's maintenance that may need done, e.g. heat to keep water from freezing in the pipes. That's easy, just invest that. I wouldn't get in too much of a hurry to donate to charity. You can always do that later. And try to donate anonymously if you can. Donating often leads to spam, where they try to get you to donate more.",
"title": ""
},
{
"docid": "7847578cee6631c25a5d983b43d22e33",
"text": "\"On contrary of what Mike Scott suggested, I think in case of EURO DOOM it's a lot safer if your savings were changed into another currency in advance. Beware that bringing your money into an EURO CORE country (like Finland, Austria, Germany, Nethereland) it's useful if you think those banks are safer, but totally useless to avoid the conversion of your saving from Euro into your national currency. In case of EURO CRASH, only the Central Bank will decide what happens to ALL the Euro deposited wherever, single banks, even if they are Deutsche Bank or BNP or ING, can not decide what to do on their own. ECB (European Central Bank) might decide to convert EURO into local currencies based on the account's owner nationality. Therefor if you are Greek and you moved your saving in a German bank, the ECB might decide that your Euro are converted into New Dracma even if they sit in a German bank account. The funniest thing is that if you ask to a Finland bank: \"\"In case of Euro crash, would you convert my Euro into New Dracma?\"\", they sure would answer \"\"No, we can't!\"\", which is true, they can not because it's only the ECB (Europe Central Bank) the one that decides how an ordered Euro crash has to be manged, and the ECB might decide as I explained you above. Other Central Banks (Swiss, FED, etc.) would only follow the decisions of the ECB. Moreover in case of EURO DOOM, it's highly probable that the Euro currency looses a tremendous value compared to other currencies, the loss would be huge in case the Euro Crash happens in a disordered way (i.e. a strong country like Germany and their banks decides to get out and they start printing their own money w/o listening to the ECB anymore). So even if your saving are in Euro in Germany they would loose so much value (compared to other currencies) that you will regreat forever not to have converted them into another currency when you had the time to do it. Couple of advises: 1) If you want to change you savings into another currency you don't need to bring them into another bank/country (like US), you could simply buy US Shares/Bonds at your local bank. Shares/Bonds of a US company/US gov will always be worth their value in dollars no matter in what new pathetic currency your account will be converted. 2) But is there a drawback in converting my saving into another currency (i.e. buying dollars in the form of US treasury bonds)? Unfortunately yes, the drawback is that in case this Euro drama comes finally to an happy ending and Germans decide to open their wallets for the nth time to save the currency, the Euro might suddenly increase its value compared to other currencies, therefor if you changed your saving into another currency you might loose money (i.e. US dollars looses value against the Euro).\"",
"title": ""
},
{
"docid": "68307d5be9ffcdcde08545453139e73a",
"text": "\"Buying physical gold: bad idea; you take on liquidity risk. Putting all your money in a German bank account: bad idea; you still do not escape Euro risk. Putting all your money in USD: bad idea; we have terrible, terrible fiscal problems here at home and they're invisible right now because we're in an election year. The only artificially \"\"cheap\"\" thing that is well-managed in your part of the world is the Swiss Franc (CHF). They push it down artificially, but no government has the power to fight a market forever. They'll eventually run out of options and have to let the CHF rise in value.\"",
"title": ""
},
{
"docid": "4d9f05f39288a85e40d0d2571f7e15c5",
"text": "\"You are in your mid 30's and have 250,000 to put aside for investments- that is a fantastic position to be in. First, let's evaluate all the options you listed. Option 1 I could buy two studio apartments in the center of a European capital city and rent out one apartment on short-term rental and live in the other. Occasionally I could Airbnb the apartment I live in to allow me to travel more (one of my life goals). To say \"\"European capital city\"\" is such a massive generalization, I would disregard this point based on that alone. Athens is a European capital city and so is Berlin but they have very different economies at this point. Let's put that aside for now. You have to beware of the following costs when using property as an investment (this list is non-exhaustive): The positive: you have someone paying the mortgage or allowing you to recoup what you paid for the apartment. But can you guarantee an ROI of 10-15% ? Far from it. If investing in real estate yielded guaranteed results, everyone would do it. This is where we go back to my initial point about \"\"European capital city\"\" being a massive generalization. Option 2 Take a loan at very low interest rate (probably 2-2.5% fixed for 15 years) and buy something a little nicer and bigger. This would be incase I decide to have a family in say, 5 years time. I would need to service the loan at up to EUR 800 / USD 1100 per month. If your life plan is taking you down the path of having a family and needed the larger space for your family, then you need the space to live in and you shouldn't be looking at it as an investment that will give you at least 10% returns. Buying property you intend to live in is as much a life choice as it is an investment. You will treat the property much different from the way something you rent out gets treated. It means you'll be in a better position when you decide to sell but don't go in to this because you think a return is guaranteed. Do it if you think it is what you need to achieve your life goals. Option 3 Buy bonds and shares. But I haven't the faintest idea about how to do that and/or manage a portfolio. If I was to go down that route how do I proceed with some confidence I won't lose all the money? Let's say you are 35 years old. The general rule is that 100 minus your age is what you should put in to equities and the rest in something more conservative. Consider this: This strategy is long term and the finer details are beyond the scope of an answer like this. You have quite some money to invest so you would get preferential treatment at many financial institutions. I want to address your point of having a goal of 10-15% return. Since you mentioned Europe, take a look at this chart for FTSE 100 (one of the more prominent indexes in Europe). You can do the math- the return is no where close to your goals. My objective in mentioning this: your goals might warrant going to much riskier markets (emerging markets). Again, it is beyond the scope of this answer.\"",
"title": ""
}
] |
fiqa
|
743e4a39d4c3a52c73bf45654200d896
|
My company owed taxes for many years, An accountant asked me to ignore it and register a new one. Is it a right thing to do?
|
[
{
"docid": "29cfc7f33519a8138a57a090f51a686a",
"text": "I think the first step is to get an accountant whose advice you believe. Your accountant is far better placed to advise you on what sounds like a fairly complicated, fairly high stakes corporate arrangement than the internet. I would go back to the accountant and get him to explain in writing what his specific advice is. If you still don't like it absolutely get a second opinion. You may also want to speak to a lawyer.",
"title": ""
}
] |
[
{
"docid": "6930ffd3459df51d2e594465b3b8a9f1",
"text": "There's nothing wrong with your reasoning except that you expect the tax laws to make perfect sense. More often than not they don't. I suggest getting in touch with a professional tax preparer (preferably with a CPA or EA designation), who will be able to understand the issue, including the relevant portions of the French-US tax treaty, and explain it to you. You will probably also need to do some reporting in France, so get a professional advice from a French tax professional as well. So, in my tax return, can I say that I had no US revenue at all during this whole year? I doubt it.",
"title": ""
},
{
"docid": "cf3539f86c66a80f473878e2c84b1c32",
"text": "\"It seems that you think you are freelancing, and they think you are an employee. What's bad for you, the tax office will also think you are an employee if they withhold tax for you. Alternatively, they think you are stupid, and they keep the money, but are actually not paying it to the tax office at all, in which case you will have a bad surprise when you do your tax returns. First, I'd ask them for proof that they are indeed paying these taxes into some account related to you. I'd then ask a tax adviser for some serious advice. If they are acting out of incompetence and not out of malice, then you should be mostly fine, but your work there will count as employment. Heaven knows why they treat you as an employee. Check your contract with them; whether it is between you and them or your company and them. It maybe that they never hired a contractor and believe that they have to pay employment tax. They don't. If your company sends them a bill, then they need to pay that bill, 100% of it, and that's it. Taxes are fully your business and your responsibility. As \"\"quid\"\" said, if they say they are withholding tax, then at the very least there must be a paystub that proves they have actually been paying these taxes. If they withhold taxes, and there is no paystub, then this looks like a criminal attempt to cheat you. If they have actually paid taxes properly into your account, then they are merely creating a mess that can hopefully be fixed. But it is probably complicated enough that you need a tax advisor, even if you had none before, since instead of paying to your company, they paid some money to the company, and some to you personally.\"",
"title": ""
},
{
"docid": "14f54c5f328b37ac4f40a2b243f8e46c",
"text": "You should seek professional advice from an accountant.",
"title": ""
},
{
"docid": "d5a7e6714172567de547d1bb7a74903d",
"text": "\"What is the right way to handle this? Did you check the forms? Did the form state $0 tax due on the FTB LLC/Corp form (I'm guessing you operate as LLC/Corp, since you're dealing with the Franchise Tax)? The responsibility is ultimately yours. You should cross check all the numbers and verify that they're correct. That said, if the CPA filled the forms incorrectly based on your correct data - then she made a mistake and can be held liable. CPA filing forms from a jurisdiction on the other end of the country without proper research and knowledge may be held negligent if she made a grave mistake. You can file a law suit against the CPA (which will probably trigger her E&O insurance carrier who'll try to settle if there's a good chance for your lawsuit to not be thrown away outright), or complain to the State regulatory agency overseeing CPAs in the State of her license. Or both. Am I wrong for expecting the CPA should have properly filled out and filed my taxes? No, but it doesn't shift the responsibility from you. How can I find out if the CPA has missed anything else? Same as with doctors and lawyers - get a second opinion. Preferably from a CPA licensed in California. You and only you are responsible for your taxes. You may try to pin the penalties and interest on the CPA if she really made a mistake. California is notorious for very high LLC/Corp franchise tax (cost of registering to do business in the State). It's $800 a year. You should have read the forms and the instructions carefully, it is very prominent. It is also very well discussed all over the Internet, any search engine would pop it up for you with a simple \"\"California Franchise Tax for LLC/Corp\"\" search. CA FTB is also very aggressive in assessing and collecting the fee, and the rules of establishing nexus in CA are very broad. From your description it sounds like you were liable for the Franchise tax in CA, since you had a storage facility in CA. You may also be liable for sales taxes for that period.\"",
"title": ""
},
{
"docid": "b84e43a18db301825aa7a9e96c8f979a",
"text": "\"I'm not an accountant, and you should probably get the advice of one to be sure about what to do. However, if the business is a sole-proprietorship, you'd complete a Schedule C for the business, and you'd end up with a loss at the end. If the investment you made in the business is considered to be entirely or partially \"\"at risk\"\" per the IRS definition, you'd get to claim all or part of the loss as a reduction in your income. If the business was an LLC, then you're beyond my already limited knowledge. There may be some other considerations based on whether this was really a business vs a hobby, and whether or not you're going to try to continue with the business, or whether you've shut it down. I'm not sure about those parts, but they'd be worth exploring with an accountant.\"",
"title": ""
},
{
"docid": "a2e36eedaf3e9d2f52ffb4c0bd75a800",
"text": "(1) Should I register for VAT? – If it is below the threshold amount it is purely voluntary. If you register for VAT, you would have to charge VAT and then do returns every quarter. If you can take up this bit of hassle, it doesn't make much of a difference. One thing you need to consider: you get 1% discount during your first year of registering for VAT. If you want to save this discount for when you really need to pay VAT, it could be helpful. (2) What benefits would registering for VAT include? – Except for reclaiming VAT, where you pay VAT for business expenses, not much. (3) Would I not just hold onto the monies for HMRC ? – You wouldn't hold any money for HMRC. They will send you notifications if you do not file your returns and pay your VAT quarterly. And get everything cleared from your accountant. If your accountant doesn't answer properly, make it clear you need proper answers. Else change your accountant. If you do something wrong and HMRC gets after you, you would be held liable – your accountant can take the slip if you signed on all business documents provided by your accountant.",
"title": ""
},
{
"docid": "7fbb461a732f8f6e6ee02c594129eed4",
"text": "Yes, of course. Your business is active since it was established, it just didn't do anything. This is of course re the State taxes, the IRS considers LLC as a disregarded entity and it flows directly to your Schedule C if you're a single member, or your 1065 if you're multiple members. State of Texas never considers LLC as a disregarded (See here questions 13 and 14). You may not pay any taxes, but you have to file.",
"title": ""
},
{
"docid": "8d70c39fb376d9d5b5336f29de78dcb9",
"text": "If the business is legally separated and not commingled - they probably cannot. What they can do is put a lien on it (so that you cannot sell the business) and garnish your income. If the corporate veil is pierced (and its not that hard to have it pierced if you're not careful) - then they can treat it as if it is your personal asset. Verify this with a lawyer licensed in your state, I'm not a lawyer or a tax professional.",
"title": ""
},
{
"docid": "6af2d7c818f1572b426e4c57f8e217fe",
"text": "\"11 / 111 / 11111 looks like the (old) tax number: it is used by the tax office to know who you are, it isn't good at all for the spanish company. It would even change when you move inside Germany. VAT IDs are not exclusive to GmbHs (but a GmbH always has one). As freelancers you can get at VAT ID but you don't always have to. The tax office offers a \"\"small business\"\" treatment (§ 19 UStG) for freelancers, kind of an opt-out for the VAT ID. As you do not have a VAT ID, this is probably your case. It means So what to do? If I were you, I'd write them that according to §19 UStG and the European Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, TITLE XII CHAPTER 1 \"\"Special scheme for small enterprises\"\" you were not assigned a VAT ID, and VAT is not applicable to your bill. The fact that VAT is not applicable in this case does not mean that they are allowed to refuse payment. I heard a rumour (but don't really know) that a number similar to the VAT ID is planned also for freelancers (Wirtschafts-IDNr.). You could go to your tax office and ask them about. Maybe that yields a number that satisfies spanish burocracy. AFAIK, you can go to your tax office and ask them to give you a real VAT number. But careful: that has the serious drawback that you have to do do an advance VAT estimate and pay that to the tax office at least quarterly (for bigger business monthly). And (AFAIK) you are not allowed to change back to the small business treatment for several years.\"",
"title": ""
},
{
"docid": "7d12a52d03a621e3d9f0f92a4ca323b5",
"text": "Your CPA doesn't need to file anything, so don't worry about him being sidetracked. You are the one doing the filing. Since the amended returns have to be filed on paper, you'll actually go and mail a package to the IRS (each return in a separate envelope). The reason the CPA suggests to file the amended returns after the current one, is to ensure the NOL is registered in the system before the amended returns are processed. The IRS doesn't have to automatically accept the amended returns, and if there's no NOL on the current year they may just bounce the amended returns back to you. Keep in mind that since you haven't filed your return by the due date (including extensions), you're now unable to forego the carry-back. I don't know if you discussed this with your CPA, but you're allowed, if you chose so, to not apply the NOL to prior years, and instead to apply it forward for the next 20 years (or until it runs out). Depending on your income pattern, that might have been something you could have considered, but you can only chose this if you file a statement before the due date (with extensions), which is now passed.",
"title": ""
},
{
"docid": "5bf683f73eaca9db5871c953efed4ff7",
"text": "\"This is an answer grounded in reality, not advice. Most states have no means of enforcing their foreign business entity registration statutes. Some states never even codified consequences. (California is a notable exception.). Some states have 'business licenses' that you need in order to defend your entity in court, but will retroactively apply the corporate veil when you get the license. The \"\"do I have to register\"\" question is analogous to asking a barber if you need a haircut. But this doesn't absolve you of looking in the mirror (doing your research). Registration and INCOME taxes are different stories. If a state calls their fee a franchise tax and it is applicable and there are real consequences for not, then you will have to pay that tax. Anyway, this isn't advocating breaking the law, but since it describes ignoring toothless state-chartered agencies, then there are people that will disagree with this post, despite being in line with business climate in the United States. Hope that helps\"",
"title": ""
},
{
"docid": "5233f5bef9fbf9e67543bacf0f91b536",
"text": "As someone who used to be an IT contractor in the UK and used to work from home, my advice is to talk to your accountant in detail. It's been a few years, but IIRC you can write off some small stuff like proportional heating costs etc, but in my case it was so minuscule that it wasn't worth the effort. You're likely better off to just leave it. <subliminal message> Talk to your accountant :). </subliminal message>",
"title": ""
},
{
"docid": "c0aa1cad1b0530be37568b670f741860",
"text": "\"I heard it was illegal to begin a new business while still owing the IRS. No such thing. \"\"Renovating business\"\" may require certain State licenses that may in turn require you to show that you've not violated any laws (including tax laws), so you may want to check that. But as a general rule - you can \"\"start\"\" a business any time you want.\"",
"title": ""
},
{
"docid": "4cc24c165a83ad313d3ea6fe0d39b533",
"text": "\"I'm no expert on this, but I would say that, if you own the business entirely yourself, there is nothing terribly wrong with using it for your own purposes as you would any other asset that you own. What is wrong is not keeping accurate records that distinguish between your money and the business's. As you say, this is wrong strategically, but it can also be dangerous legally, because if you mix your money and the business's money and don't keep track, you could find, for instance, that you've failed to pay the taxes you were supposed to. There is also a concern that might not fall under what people refer to as \"\"ethics\"\" but more \"\"good corporate citizenship\"\". Basically, people tend not to like companies that just shovel all their gains into the owners' pockets. This is especially true if there are ways the money could be used to improve the business. In other words, if you're able to live high on the hog with the profits while paying all your employees a pittance, the public may not look favorably on your business.\"",
"title": ""
},
{
"docid": "f377bf8b7f5ca4193644635caed01974",
"text": "Firstly if you've formed a limited company you don't need to register as self-employed. You're an employee and shareholder of the company and your taxes will be handled that way. Registering as self-employed is only necessary if you're operating as a sole trader (i.e. without a company). Secondly you absolutely do want to get set-up correctly with HMRC as soon as possible, whether you're a company or a sole trader. Ignoring the legal question your worry about paying taxes when you have no income is groundless - if you're not making any money there won't be any tax to pay. Furthermore it seems likely that the business is currently losing money. Those losses, if correctly recorded, can be carried forward and offset against future profits so not only do you not have to pay tax now, but you can reduce the tax you pay later when the money does start rolling in.",
"title": ""
}
] |
fiqa
|
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