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70c2e3744d2a0b41ec097ee751e8dafe
|
Hobby vs. Business
|
[
{
"docid": "475ff0dce200c39f9e5720194d86cca2",
"text": "Miscellaneous income -- same category used for hobbies.",
"title": ""
},
{
"docid": "0e0ae1e5e3f2fc011f870fc4b608327e",
"text": "\"You can list it as other income reported on line 21 of form 1040. In TurboTax, enter at: - Federal Taxes tab (Personal in Home & Business) - Wages & Income -“I’ll choose what I work on” Button Scroll down to: -Less Common Income -Misc Income, 1099-A, 1099-C. -The next screen will give you several choices. Choose \"\"Other reportable Income\"\". You will reach a screen where you can type a description of the income and the amount. Type in the amount of income and categorize as Tutoring.\"",
"title": ""
}
] |
[
{
"docid": "2fca1facc06f3225c3ebc700424e3432",
"text": "Colloquially, there's no difference except for the level of risk (which is an estimate anyway). Classically, investment is creating wealth through improvement or production. Purchasing a house with the intent to renovate and sell it for a profit would be an investment, as the house is worth more when you sell than when you bought it. Speculation, on the other hand, is when you hope to make a profit through changes in the market itself. Purchasing a house, letting it sit for 6 months, and selling it for a profit would be speculation.",
"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": "814386e466e2fcb8282aa0e2612cbcea",
"text": "\"I am a healthcare compliance consultant making good money. I understand the logic behind ROI and education. I was trying to raise the point that choosing what to study is more than what you make when you're done with college or what the \"\"value\"\" of your degree is. Can't we value education intrinsically? Why does it have to be tied to ROI? Maybe the business sub isnt the best place for this debate, but I think its important.\"",
"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": "f2eb9fcac14a964a1438a708467f2e8b",
"text": "Why is one person more succesfull than another? At the end of the day I think it simply comes down to personal choices, some people will choose to invest their time in profitable indevours and some will not. This of course assumes people have a reasonable access to a mean of improvement (free education, vocational training, etc.)",
"title": ""
},
{
"docid": "58f5c3b4f9fa26b9553a047ba094966b",
"text": "Agreed. If you create a small sustainable biz for yourself, you create the freedom to pursue the hobby project ideas as well. You have a strong base which protects you. A software biz like ours is WAY more tolerant than a job. Like when I got sick for 3 mos and couldn't work at ALL, we didn't grow, but we didn't collapse either. It pretty much coasted. That means we have way more free time than we think we do.",
"title": ""
},
{
"docid": "6adac1714e527948fccc024674e5b61a",
"text": "\"I appreciate your taking the time to shoot some holes in this oft repeated statistic. However, I do disagree on some points. > Nor is there anything wrong with the person then ENDING that \"\"business\"\" and moving on... to another (different name, different field) business... or taking a job with some company There may not be anything shameful about doing that, but that scenario is, indeed, a business failure. People do not shutter a profitable (successful) business and then go to work for someone else. I believe a key contributor to the confusion is talking about the self-employed and business owners in the same breath. Someone who's self-employed basically owns a job. His income will always be directly proportional to the amount of time spent working and the company does not exist apart from himself. A business owner, on the other hand, has processes/equipment/staff/IP in place that generates income whether or not she gets out of bed in the morning. These are different people with different goals and cannot be lumped into the same demographic block.\"",
"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": "15f8fe31dafe995883d263bca748b91e",
"text": "I know. It's crazy, if you step back and look at it. The issue is that startup media is really tabloid media. It focuses only on the big, unlikely wins, which appeals to our base instincts. We want to believe that we are Cinderella dressed up in Ruby on Rails. But the fact is, the more you read about extraordinary things, the more likely you are to think it will happen regularly, and happen to you. That's a basic cognitive bias, the availability heuristic. That, and the cooing of venture capitalists, is what leads people to believe that their hobbies or fun non-profit projects could and should make them rich.",
"title": ""
},
{
"docid": "70959a94ab8dc442e876159289f59fd4",
"text": "\"? You quoted an oft cited oft disproven false factoid. It's extremely biased. Like you seem to be. Most of those \"\"self made\"\", notice those quotes, people came from money. Their business is \"\"self made\"\", with family money. Like the article implies.\"",
"title": ""
},
{
"docid": "691ed606e941985e1cf97265ec9495c9",
"text": "You could say the same thing but replace money with pacman and it would be true for the guys who are really good at pacman. Making money can be no different than any other hobby. The only difference is that you can engage in direct exchange after the fact instead of barter exchange. But make no mistake enjoying it does not make warren any more insane than the pacman guys (or more seriously most academics).",
"title": ""
},
{
"docid": "277aeb456c68a74536054f63adc22af7",
"text": "These 'issues' don't exclusively relate to the 'sharing economy', the challenge of uncertainty would exist for any small business / independent contractor. It's not as if people didn't work as independent contractors in these industries before, it's just now the industries are being enhanced and overhead lowered, from technology. For example: Uber driver vs Medallion [Leasing] Taxi Driver AirBNB landlord vs Apartment landlord, vacation rental landlord, or traditional bed & breakfast owner. PostMates messenger vs traditional bike messenger",
"title": ""
},
{
"docid": "84ab27a123f3a72dbaf250f4d0c4b850",
"text": "One owns bar/restaurants and is a millionaire, but claims he never used anything he learned from the degree. He is more of a COO so in a way he doesn't need to think about the economics of the business. He just needs to operate/maintain. The other, lost his job so parents bought him a gas station. These people never really went the corporate route so they aren't the best examples, imo.",
"title": ""
},
{
"docid": "a4753cca35c315b3f8d6cff278a55bfe",
"text": "By simplifying my hobbies, I have more time for money-saving activities such as researching deals, creating an effective coupon-clipping system, and making more foods from scratch (which doubles as entertainment since I enjoy it). When I run frantically from activity to activity, I tend to mindlessly throw away more money, too. By living more intentionally, I think about my purchases more as well. On the simplifying note, never underestimate the power of less stuff in terms of being able to fit into a smaller home. That leads to less space to heat and cool, which leads to savings. Everyone has their comfort level with less, of course, and some people love space. There are just trade-offs to more stuff.",
"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": ""
}
] |
fiqa
|
ffe34df1c7976a15d0ba31ae23ecb3de
|
Personal checks instead of business ones
|
[
{
"docid": "a1c74729f1dca762dfb8b1500a304afd",
"text": "I'll assume you are asking about a check for some kind of work or service that you provided them, that they hired your company to do. No large business will do that. In their records they have a contract with your company to provide services. If they write you a personal check it won't match with the contract, and when the auditors see that they will scream blue murder. Whoever wrote the check will have to prove that you are legitimately the same thing as the company (that doesn't mean taking your word for it). They may also have to show they weren't conspiring with you to commit tax fraud ( that wasn't your intention of course, was it?) .",
"title": ""
}
] |
[
{
"docid": "17609ed5dd1c22d3b7733a7358c9a2a2",
"text": "\"I expect the company wanted to pay you for a product (on a purchase order) rather than as a contract laborer. Whatever. Would they be willing to re-issue the check to you as a sole proprietor of a business named ABC Consulting (or anything like that)? You can register your sole proprietor business with the state using a \"\"Doing Business As\"\" (DBA, or fictitious name), and then open the bank account for your business using the check provided by the customer as the first deposit. (There is likely a smaller registration fee for the DBA.) If they won't re-issue the check and you have to go the LLC route... Scrounge up $125 doing odd jobs or borrowing from a friend or parents. Seriously, anyone can earn that amount of money in a week or two. Besides the filing fee for the LLC, your bank may require you to provide an Operating Agreement (which is not required by the State). The Operating Agreement can be simple, or more complex if you have a partner (even if it's a spouse). If you do have a partner, it is essential to have such an agreement because it would specify the responsibilities and benefits allocated to each partner, particularly in the event of equity distributions (taking money out of the business, or liquidating and ending the LLC). There are websites that will provide you a boilerplate form for Operating Agreements. But if your business is anything more than just single member LLC, you should pay an attorney to draw one up for you so the wording is right. It's a safeguard against potential future lawsuits. And, while we're at it, don't forget to obtain a EIN (equivalent to a SSN) from the IRS for your LLC. There's no cost, but you'll have to have it to file taxes as a business for every year the LLC exists and has income. Good luck!\"",
"title": ""
},
{
"docid": "3c9b91c35eb318ee1c0c35dfe4d2df3d",
"text": "If you're a sole proprietor there's no reason to have a separate business account, as long as you keep adequate records, as you are one and the same for tax purposes. My husband and I already have 5 accounts and a mortgage with one bank. I don't see the need to open up yet another account. As a contracted accountant, I don't need to write business checks, and my expenses are minimal. As long as I have an present my assumed business name certificate and ID, there's no reason for a bank not to deposit into my personal account.",
"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": "46691bddaf9882f2bfd4e34befd3fefa",
"text": "You can't cash the check silly. How can you go off on a rant when you can't even tell the difference between a real check and a promotional tool. If you don't want to call in an get info throw it away....simple. This thread made me laugh. Thanks for that. Good day.",
"title": ""
},
{
"docid": "9e647855ce80fa9aaed40fc2b7b5c1b3",
"text": "\"I know of one practical difference between business checks (8\"\" check) and personal checks (6\"\" check) dealing with the paper check conversion rule to electronic debit. The National ACH Association, created a rule that allows receivers of checks without an \"\"Auxiliary On-Us\"\" field, to convert your check into an electronic debit via the ACH network. By default, 6\"\" checks (personal checks) do NOT have the AUX ON-US field, and are eligible to be converted to ACH debit. If you do not want your paper checks converted to ACH debits, then start using business checks with the AUX ON-US field populated. You can use business checks for business or personal checking accounts. More information can be found below: http://www.deluxe.com/miscfiles/pdf/AuxOnUsField.pdf http://www.achrulesonline.org/\"",
"title": ""
},
{
"docid": "6aa022f401826c82028f3335f5cd8c4d",
"text": "I'm going to give the checkmark to Joe, but I wanted to convey my personal experience. I bank with TD in New Jersey and was informed by the teller that I simply needed to endorse the check myself and indicate Parent of Minor. I cannot attest if other banks will accept this, but it at least works for TD and my situation in particular.",
"title": ""
},
{
"docid": "d3b115181031954eaaccb2a341b09b63",
"text": "While you can print that on the check, it isn't considered legally binding. If you are concerned about a check not being deposited in a timely manner, consider purchasing a cashier's check instead. This doesn't solve the problem per se, but it transfers responsibility of tracking that check from you to the bank.",
"title": ""
},
{
"docid": "32d72da103ae8a43c1c999c9c204cb7e",
"text": "I feel the change should not be to remove the stigma from personal default. It should be to add it, in very large amounts, to corporate default. Every member of a defaulting corporation should be ashamed to be seen in public. The have let their culture down and should be mortified. So if you defaulted on your mortgage, yeah, that's not great. If you're Donald Trump, that filed 11 a couple times, he can go fuck himself.",
"title": ""
},
{
"docid": "da1a151451e9fea0a7fda6d5b8185a0f",
"text": "It's not the legitimate checks or bounced checks that are the problem, it's phony checks issued against real accounts with actual money in them. All the security measures on the check don't amount to crap if someone can print up some legitimate looking checks with bogus amounts on them, or even just steal some printed checks and sign something resembling the authorized signature.",
"title": ""
},
{
"docid": "f1b045c543a90f25c4cfb615618dd4e6",
"text": "I don't know, ask the various companies I'm forced to do business with why in the hell they want me to stop by their office so I can drop a check off vs just using some means of digital payment. I would fucking LOVE to ditch paper checks.",
"title": ""
},
{
"docid": "51fb633f62e19dd495c87a1636237e4e",
"text": "\"To put a positive spin on the whole thing, maybe it's a small family shop, and having the check made out to \"\"cash\"\" means that your barber can hand it to someone else without the need to countersign. Or maybe his last name is \"\"Cash\"\" - there was a pretty famous singer who fit that description. Either way, it's not your place to nanny his finances.\"",
"title": ""
},
{
"docid": "8f414572f1273861b9e4d36c3ad3e02a",
"text": "As I replied to someone else who said that: I'm often having to send stuff with the check. Paperwork, a bill etc. While that would work to a person who knows me, it's usually not going to work with a business or government who needs to know why I'm sending this check.",
"title": ""
},
{
"docid": "a6a8bc7193252f2ccfec889fe8110dcb",
"text": "No, most check deposits are processed that way. Banks transmit the pictures of the checks between themselves, and allow business customers to deposit scans for quite some time now. I see no reason for you to be concerned of a check being in a dusty drawer, it's been deposited, cannot be deposited again. If you're concerned of forgery - well, nothing new there.",
"title": ""
},
{
"docid": "df87670ac7382775987c809f727ed906",
"text": "\"A.1 and B.1 are properly balanced, but \"\"Business Expense\"\" is an expense, not an asset. The T entries should be timestamped. The time should be equal to the time on the credit card receipts. This will make audit and balancing easier. A or B can be used, but if the the business is to be reimbursed for personal expenses, the accounts should be renamed to reflect that fact. More explicit account names could be \"\"Business expense - stationary\"\" and \"\"Personal expense - lunch\"\" or even better \"\"Personal expense - cammil - lunch\"\". With a consistent format, the account names can be computer parsed for higher resolution and organization, but when tallying these high resolution accounts, debits & credits should always be used. When it comes time to collect from employees, only accounts with \"\"Personal expense\"\" need be referenced. When it comes time to collect from \"\"cammil\"\", only net accounts of \"\"Personal expense - cammil\"\" need be referenced. An example of higher resolution, to determine what \"\"cammil\"\" owes, would be to copy the main books, reverse any account beginning with \"\"Personal expense - cammil\"\", and then take the balance. Using the entries in the question as an example, here's the account to determine \"\"cammil\"\"'s balance: Now, after all such balancing entries are performed, the net credit \"\"Personal expense - cammil\"\" is what \"\"cammil\"\" owes to the business. The scheme for account names should be from left to right, general to specific.\"",
"title": ""
},
{
"docid": "0b765d68528c6fdf490f9af8dd659d99",
"text": "\"Checks sold as \"\"business checks\"\" are larger than checks sold as \"\"personal checks\"\". Personal checks are usually 6\"\" x 2 1/2\"\" while business checks are 8 1/2 \"\" x 3 to 4 \"\". Also, business checks typically have a tear-off stub where you can write who the check was made out to and what it was for. In this computer age that seems pretty obsolete to me, I enter the check into the computer, not write it on a stub, but I suppose there are still very small businesses out there that doesn't use a computerized record-keeping system. These days business checks are often printed on 8 1/2 by 11\"\" paper -- either one per sheet with a big tear-off or 3 per sheet with no tear off -- so you can feed them through a computer printer easily. Nothing requires you to use \"\"business checks\"\" for a business account. At least, I've always used personal checks for my business account with no problem. These days I make almost all payments electronically, I think I write like one paper check a year, so it's become a trivial issue. Oh, and I've never had any problem getting a check printer to put my business name on the checks or anything like that.\"",
"title": ""
}
] |
fiqa
|
2ddba64498dc5c3bf98d792e5fda7eb0
|
How can I register a UK business without providing a business address?
|
[
{
"docid": "7105af373db635e924f9f01e352fc7d4",
"text": "You don't have to provide your personal home address per se. You can provide a legal address where Companies house can send across paper correspondence to. Companies house legally requires an address because directors are liable to their shareholders(even if you are the only shareholder) and to stop them from disappearing just like that with shareholder's money. Moreover your birth date will also be visible on websites which provide comapnies information. You can ask these websites to stop sharing your personal information. Every company must have a registered office within the UK which is the official legal address of the company. It must be a physical address (i.e. not a PO Box without a physical location) as Companies House will use this address to send correspondence to. To incorporate a private limited company you need at least one director, who has to be over 16 years of age. You may also have a secretary, but this is optional. The information you will need to supply for each officer includes: You may also have officers that are companies or firms, and for these you will need to supply the company or firm name, its registered office address, details of the legal form of the company, where it is registered and if applicable its registration number.",
"title": ""
}
] |
[
{
"docid": "2722f69315341259b6dfc8053db89d61",
"text": "Normal high street accounts certainly are available to non-residents. I have several, and I haven't been resident in the UK for fourteen years. However you do need to open them before you leave. They need identification. Once you have one open, the same bank should be able to open other accounts by mail. The disadvantage of course is that you will pay tax on your earnings, and while you can claim it back that's an unnecessary piece of work if you don't have other UK earnings. I would take the risk of an offshore account, assuming it's with a big reputable bank - the kind that are going to be bailed out if there is another collapse. An alternative might be a fixed term deposit. You lock up your money for three years, and you get it back plus a single interest payment at the end of three years. You would pay nothing in tax while you were gone, but the whole interest amount would be taxable when you got back.",
"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": "85c6ec404d0a5d71afa21f1097d00d83",
"text": "You need to file foreign qualification in any State you have physical presence in (warehouses, offices, etc). Including the State from which you personally operate (if it is not Nevada). You don't need to register in States to which you ship products.",
"title": ""
},
{
"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": "035e03018aa1d2da9746f0c75cd7ad7f",
"text": "Seems like it's more dependent on who you want to be your supplier. The times I've been involved in requesting this, each company had its own application form. They usually need proof of business activity, which gets back to SpecKK's answer.",
"title": ""
},
{
"docid": "7a0f5ae5d21bde5bfb381e841ac88197",
"text": "Most US states have rules that go something like this: You will almost certainly have to pay some registration fees, as noted above. Depending on how you organize, you may or may not need to file a separate tax return for the business. (If you're sole proprietor for tax purposes, then you file on Schedule C on your personal Form 1040.) Whether or not you pay taxes depends on whether you have net income. It's possible that some losses might also be deductible. (Note that you may have to file a return even if you don't have net income - Filing and needing to pay are not the same since your return may indicate no tax due.) In addition, at the state level, you may have to pay additional fees or taxes beyond income tax depending on what you sell and how you sell it. (Sales tax, for example, might come into play as might franchise taxes.) You'll need to check your own state law for that. As always, it could be wise to get professional tax and accounting advice that's tailored to your situation and your state. This is just an outline of some things that you'll need to consider.",
"title": ""
},
{
"docid": "7548affc097d12684b115ced5528491e",
"text": "\"If you have a business web site, using firstname.lastname@businessdomain.*x* would be the best choice. Using an @gmail address should be a second choice. If gmail is your only option, though, I would strongly recommend avoiding the aka.username portion. If [email protected] isn't available (and, for most people, it no longer is), using something such as [email protected] would be a much better option (for example, John Smith with Example Enterprises would be [email protected]). If you're looking for an email address to use for purposes such as a resume / CV or similar documents, then I would suggest to try to find a variation that includes your first name and last name on gmail. You can use your middle initial, as well, if necessary. John Curtis Smith could have any combination such as jcsmith, john.c.smith, johnathan.smith, johnathan.c.smith, j.curtis.smith (though that last one will imply that John prefers to be called Curtis), and similar. Also, and I say this as honest advice from someone who has been in charge of hiring people in the past, if you're concerned about professionalism, you'll want to ensure your grammar and spelling are impeccable. A quick glance at your posting history makes me think you're a Brit, or are currently living in England, so working on your English skills will be important. People will find it difficult to take someone seriously, otherwise, and a poor first impression via text or email can easily cost you whatever it is you're trying to establish, *especially* if you aren't the only person attempting to establish yourself for that position. You have several errors in your post (\"\"I just a question,\"\" \"\"approriate,\"\" \"\"buisness,\"\" and a lack of sentence structure and punctuation in general). It may seem silly to concern yourself with typing properly in a post on Reddit, but think of it as practice in a medium (text and typing) where repetition is key. If you're used to typing poorly, it'll take a lot more effort to type well when it counts, and you're more likely to miss an error that could cost you a job or client. Good luck to you! ^^^In ^^^before ^^^mentioning ^^^spelling ^^^/ ^^^grammar ^^^and ^^^missing ^^^something ^^^in ^^^my ^^^own ^^^text.\"",
"title": ""
},
{
"docid": "553ba551de833464c003df753f98f022",
"text": "Not sure about the UK, but if it were in the US you need to realize the expenses can be claimed as much as the income. After having a mild heart attack when I did my business taxes the first time many years ago, a Small Business Administration adviser pointed it out. You are running the site from a computer? Deductible on an amortization schedule. Do you work from home? Electricity can be deducted. Do you drive at all? Did you pay yourself a wage? Any paperwork, fax communications, bank fees that you had to endure as work expenses? I am not an accountant, but chances are you legally lost quite a bit more than you made in a new web venture. Discuss it with an accountant for the details and more importantly the laws in your country. I could be off my rocker.",
"title": ""
},
{
"docid": "0239db99a14304f9c2d2c4e5f0e8cc2e",
"text": "\"We use Cater Allen for our business banking (recommended/introduced by our accountants so we've saved the standard \"\"minimum funds per month\"\" limit) which was set up all remotely - our accountants sent us the forms (which you can get from Cater Allen's site), we photocopied the identity documents (driving licence etc) and sent them off. Within a couple of weeks we had the account open. Cater Allen hasn't got any physical branches, so that's \"\"one way\"\" of working around the \"\"come into a branch\"\" solution - pick a bank without branches! Girobank (which became Alliance and Leicester Business Banking and then became part of Santander) used to allow all account creations remotely - but that was back in the 90s and I've got no idea if Santander still do. Since you've setup an Ltd company, you are probably looking for an accountant too (even if it just to do your year end or payroll) - ask them for their recommendations.\"",
"title": ""
},
{
"docid": "51cab5507bc350b41e38fe645194961c",
"text": "Surprised that no one has mentioned **Dun & Bradstreet** yet. A lot of small businesses require a D&B number for various reasons (getting an extended verification SSL cert, applying for government contracts, etc). D&B numbers are *free*, but the D&B sales guys will lie and threaten you about expensive up-sells over the course of many phone calls before you can actually get it. Then once you have the number, they send this bullshit spam saying that your credit report has changed, but you got to pay to know what they're saying about you. Sorry for the rant, just D&B is the scummiest company I've dealt with in a long time.",
"title": ""
},
{
"docid": "a279ca195fb059cdc40775cca8a0e5d3",
"text": "As an LLC you are required to have a separate bank account (so you can't have one account and mix personal and business finances together as you could if you were a sole trader) - but there's no requirement for it to be a business bank account. However, the terms and conditions of most high street bank personal current accounts specifically exclude business banking, so unless you could find one that would allow it, you'd have to open a business bank account.",
"title": ""
},
{
"docid": "ed623c193cfc05a8c04cb3925bf45a18",
"text": "If you mostly do work for businesses/individuals who are VAT registered it's a no-brainer to become VAT registered yourself... Although you will have to charge your customers VAT (and pass this on to HMRC) because they are VAT-registered they will reclaim the amount so it won't actually 'cost' them anything. At the same time, you can reclaim all the VAT you're currently being charged on your business expenditure (business equipment, tickets to business events, business software, accountancy/other business services you pay for, web hosting etc etc etc) However, if most of your clients are not VAT-registered it's not worth you registering. You would have to charge your customers an extra 20% (and they wouldn't be able to claim it back!) and you would have to pass this on to HMRC. Although you could still claim for goods and services you purchase for business use, essentially you'd just be another tax collector for HMRC. That said, at the end of the day it's up to you! VAT returns are quarterly and dead simple. Just keep a spreadsheet with your invoices (output tax) and receipts (input tax) and then do some basic maths to submit the final numbers to HMRC. No accountant required!",
"title": ""
},
{
"docid": "5cbb996244fc60be4ce51aa99ccabc02",
"text": "The short Answer is NO, HMRC do not like disguised employment which is what this is as you fall under IR35 you can bill them via an umbrella company and you should be charging the contractor rate not a permie rate. http://www.contractoruk.com/",
"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": "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": ""
}
] |
fiqa
|
3db0a7f9a497e0d28291892cac498064
|
What are 'business fundamentals'?
|
[
{
"docid": "8e31f9a452a967f889442863ca55440f",
"text": "From http://financial-dictionary.thefreedictionary.com/Business+Fundamentals The facts that affect a company's underlying value. Examples of business fundamentals include debt, cash flow, supply of and demand for the company's products, and so forth. For instance, if a company does not have a sufficient supply of products, it will fail. Likewise, demand for the product must remain at a certain level in order for it to be successful. Strong business fundamentals are considered essential for long-term success and stability. See also: Value Investing, Fundamental Analysis. For a stock the basic fundamentals are the second column of numbers you see on the google finance summary page, P/E ratio, div/yeild, EPS, shares, beta. For the company itself it's generally the stuff on the 'financials' link (e.g. things in the quarterly and annual report, debt, liabilities, assets, earnings, profit etc.",
"title": ""
}
] |
[
{
"docid": "ed8ac5cafaa4a0d9cf5ad7b74ff04938",
"text": "\"As other people have posted starting with \"\"fictional money\"\" is the best way to test a strategy, learn about the platform you are using, etc. That being said I would about how Fundamental Analysis works . Fundamental Analysis is the very basis of learning about an assets true value is priced. However in my humble opinion, I personally just stick with Index funds. In layman's terms Index Funds are essentially computer programs that buy or sell the underlying assets based on the Index they are associated with in the portion of the underlying index. Therefore you will usually be doing as good or as bad as the market. I personally have the background, education, and skillsets to build very complex models to do fundamental analysis but even I invest primarily in index funds because a well made and well researched stock model could take 8 hours or more and Modern Portfolio Theory would suggest that most investors will inevitably have a regression to the mean and have gains equal to the market rate or return over time. Which is what an index fund already does but without the hours of work and transaction cost.\"",
"title": ""
},
{
"docid": "c273003dc6bb4bc0fda17ca3b38d53b0",
"text": "\"Your comment is more related to economics rather than finance. You're right that with conventional, everyday goods that \"\"value\"\" is an entirely subjective thing. Economists formalize this idea with the notion that people's preferences determine market prices. In finance, though, \"\"fundamental value\"\" relates to the value of the cash-flows produced by a financial asset. In Marxian terms, we're talking about exchange value - what can I get if I take this bond/stock and sell it. The value I get should be equivalent to the monetary value of the cashflows produced by that asset over time, discounting for uncertainty, etc. So, \"\"fundamental value\"\" is a bit more objective in finance since these things produce something quasi-objective - cash.\"",
"title": ""
},
{
"docid": "56815446ee85684b1e933f6502565d5f",
"text": "Triple Bottom Line places a special focus on preserving a wide technical skill set, while retaining an exceptional level of technical expertise, which enables the company to fulfill its mission. Triple Bottom Line offers our clients a broad spectrum of mobile application development services. We have team of dedicated developers specializing in Android , iPhone, Symbian, iPad, tablets, Blackberry, JQuery, Titanium, C+, Javascript, html5, Facebook Apps, Twitter Apps, Palm, Android TV apps, Apple's iTV, and Web design and development. We can also put your app in the Barnes and Nobles' Nook, Amazon's and other bookstore's Kindle, AT&T's U-verse TV with our approved developer accounts. We are specialists in various API and SDK integration including AT&T, Facebook, Twitter, Amazon, Paypal, among many more. Our services create affordable development for corporate clients and development firms. We provide solutions at an affordable price with superior quality. Contact us for a quote to see how affordable it will be to complete your mobile application needs with alacrity. Visit our website @ http://tbldevelopmentfirm.com/",
"title": ""
},
{
"docid": "4e0be7ab0b5c4a8ad8dee1636aa05953",
"text": "\"Synergy is when a relationship makes its members stronger. \"\"Relationships\"\" doesn't cut it. Results and [ROI](http://www.investopedia.com/terms/r/returnoninvestment.asp) are very different. If a subordinate brings an insignificant problem to their manager, \"\"be realistic\"\" doesn't have quite the kick that \"\"deal with it\"\" does, IMO, but I'll give it to you. I'm not sure what you're getting at with \"\"Expectations? Goals?\"\", but managing expectations is conveyed in neither. Your terms do not suffice, and your lack of understanding leads me to believe that you're either really junior or not in business at all.\"",
"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": "a39b37febb386d8d25976b32ed6e7097",
"text": "all of these examples are great if you actually believe in fundamentals, but who believes in fundamentals alone any more? Stock prices are driven by earnings, news, and public perception. For instance, a pharma company named Eyetech has their new macular degeneration drug approved by the FDA, and yet their stock price plummeted. Typically when a small pharma company gets a drug approved, it's off to the races. But, Genetech came out said their macular degeneration drug was going to be far more effective, and that they were well on track for approval.",
"title": ""
},
{
"docid": "68ad2d6cc4afb29c1b2f1b4a8f0d38f1",
"text": "All you have to do is ask Warren Buffet that question and you'll have your answer! (grin) He is the very definition of someone who relies on the fundamentals as a major part of his investment decisions. Investors who rely on analysis of fundamentals tend to be more long-term strategic planners than most other investors, who seem more focused on momentum-based thinking. There are some industries which have historically low P/E ratios, such as utilities, but I don't think that implies poor growth prospects. How often does a utility go out of business? I think oftentimes if you really look into the numbers, there are companies reporting higher earnings and earnings growth, but is that top-line growth, or is it the result of cost-cutting and other measures which artificially imply a healthy and growing company? A healthy company is one which shows year-over-year organic growth in revenues and earnings from sales, not one which has to continually make new acquisitions or use accounting tricks to dress up the bottom line. Is it possible to do well by investing in companies with solid fundamentals? Absolutely. You may not realize the same rate of short-term returns as others who use momentum-based trading strategies, but over the long haul I'm willing to bet you'll see a better overall average return than they do.",
"title": ""
},
{
"docid": "20f359098fd69ea33661b6f8f5533514",
"text": "Google Portfolio does the job: https://www.google.com/finance/portfolio You can add transaction data, view fundamentals and much more.",
"title": ""
},
{
"docid": "f0526e7431f71287e6672e599e85d48e",
"text": "\"Is english not your first language? I'm not trying to be rude i just want to understand if the difficulty in communicating with you comes from a language barrier or something else. Finance and accounting knowledge are things people go to university for years for, just to learn the basics to get in the door. What you're asking requires years of experience and earned expertise. The expectation that you can just post here with some questions and suddenly have enough of a grasp to become a decision maker with respect to these situations is borderline offensive to professionals like myself. Either you need this knowledge for a practical application, or an academic pursuit. It seems to be the latter given your previous message. There are textbooks dedicated to what you're asking about, if you are really serious about learning then go pick them up and put in the hours necessary just like anyone else. Otherwise stop wasting peoples time on here. If you have one or two small questions to help clarify something you've been self studying that's fine, but honestly coming on here and asking \"\"how can a company issue bonds and what are bonds is it like a mortgage\"\" is absolutely a waste of time and reeks of laziness on your part.\"",
"title": ""
},
{
"docid": "444b5c847964ff77552b194814e3ac68",
"text": "\"Spoken like a true non-business person. I'm an engineer that now has an MBA. It's not \"\"fluff\"\", far from it. In fact, I'm doing more quantitative work now than I did as an engineer. I use MATLAB and Excel more than I ever did before. And I'm in marketing, one of the less quantitative MBA jobs.\"",
"title": ""
},
{
"docid": "374e6710563e24b0d8106fb204e53dd2",
"text": "Not sure why people are suggesting CFP or CFA to someone who hasn't graduated with a BS yet. With that said, CFA had a claritas (fundamentals course) with like 20-20 page chapters going over basic finance and investment info. Pretty sure you can still get those pdfs for free. Investopedia is also great for general concepts for banking and investments. CFA is very expensive and I wouldn't touch it until you've taken general business classes and really built up your foundation.",
"title": ""
},
{
"docid": "ba5bf7b67849af2a301c29a925ef0c59",
"text": "The technical skills (excel, matlab, econometrics) others posted are absolutely essential, but I have seen a ton of world class number crunchers who could not put anything in context. My advice: - Read any annual report for any company you find somewhat interesting, aim for reading 2 or 3 a week. This is the best way to learn real world macro economics and get a very strong grasp on financial accounting - Practice writing about what you learn.",
"title": ""
},
{
"docid": "6f223dd9cf545da0fdadcbc3847f769e",
"text": "Basically you'd take all the companies in a given universe (like the S&P 500 or the Russell 3000) and instead of weighting them by market cap as they are currently done, you would weight by an alternative measure. Right now, if you're invested in an index that is market cap weighted, you're effectively momentum chasing. If a stock runs up, you're going to have a higher weight in your portfolio because of it (but only after the increase). An alternative that OppenheimerFunds has come up with is using revenue-weighting. That way you're using company fundamentals and only when the fundamentals are improving do you increase the weight in your portfolio. I haven't yet seen any research that explores weighting by other fundamentals. I would think that revenues aren't perfect either and that you might want to weight by Net Income. Or to go several steps further, by year over year Free Cash Flow growth. It could be a seminal paper if you are the one who empirically identifies a better weighting methodology and then have everyone else fight over the theoretical underpinnings. This is effectively what goes into Smart Beta investing: http://www.investopedia.com/terms/s/smart-beta.asp",
"title": ""
},
{
"docid": "b2e056bfcd6c9499ce4401c581de7df5",
"text": "\"Definition: Fundamental analysis involves analyzing financial statements and health, management and competitive advantages, and competitors and markets. Books are a great way to learn fundamental analysis but can be time consuming for something that really isn't very difficult. So the internet might be a better way to get started. When using fundamental analysis all you are doing is trying to figure out how much a company is worth. The vocabulary and huge range of acronyms can be intimidating but really its a fairly simple task. You can use (investopedia) for definitions and simple examples when you do not fully understand something. IE: (PEG) You can search for definitions using the search bar on the top right (google also is a good source to look for additional definitions). I recommend starting out by doing an independent analysis on a well known name such as Proctor & Gamble or Mcdonald's. Then you can compare your analysis to a professionals and see how they stack up. Books and Resources: Getting Started in Fundamental Analysis Fundamental Analysis For Dummies Fundamental analysis Wiki What Is Fundamental Analysis? - Video tut from Investopedia Fundamental Analysis: Introduction Step by Step example of fundamental analysis - It's a pretty in depth forum post. Side Notes: Personally when I first began using fundamental analysis I found it difficult to understand why something is considered undervalued or overvalued. I couldn't figure out who was the \"\"authority\"\" on saying this. Well in short the \"\"authority\"\" basically is the market. You can say you believe XYZ is undervalued but you are only proven correct if the market agrees with you over long period of time. Some key facts you should know: Many times a stock can be \"\"broken\"\" for many reasons. The price can go far beyond what would be considered a \"\"normal valuation\"\" (this is considered a bubble, e.g. the tech bubble of 1999-2000). It can also go far below a \"\"normal valuation\"\". In most cases these types of valuations are short lived and in the end a stock should return to \"\"normal valuation\"\" or at least this is the theory behind fundamental analysis.\"",
"title": ""
},
{
"docid": "d97e266ba12f00578992bb56628866ea",
"text": "The thing about business is, it isn't engineering, medicine, or law. What value does inventing a whole other language add? When it's a shortcut, fine, but too often these phrases sprout up because MBAs want everyone to think they know something arcane and precious, and that's when cliches are a symptom of obfuscation, something engineers, doctors, and lawyers are certainly guilty of, albeit with more justification.",
"title": ""
}
] |
fiqa
|
9499932f491f88e92601b5760ffba402
|
How can I estimate business taxes / filing fees for a business that has $0 income?
|
[
{
"docid": "e8c6bd900f8d5b7b20accdc0347b2060",
"text": "Is the business an S-Corp, LLC or Sole Prop? I am going to guess based on the question that it is an LLC that you never closed with the state and you live in a state (NY) that charges a fee for having an LLC in the state in which case you owe those fees to the state. I am not aware of any taxes on the mere existence of a business by the IRS. I think you are going to find out that the are no taxes owed to the IRS for this nonexistent activity.",
"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": "7691b04c045df57a892e781356f4004f",
"text": "Washington State doesn't have a state income tax for individuals, so unless you've got a business there's nothing to file. Find out more on their website.",
"title": ""
},
{
"docid": "6f4290ed479d97b76cb8e3e8ecc89e8f",
"text": "Starting and running a business in the US is actually a lot less complicated than most people think. You mention incorporation, but a corporation (or even an S-Corp) isn't generally the best entity to start a business with . Most likely you are going to want to form an LLC instead this will provide you with liability protection while minimizing your paperwork and taxes. The cost for maintaining an LLC is relatively cheap $50-$1000 a year depending on your state and you can file the paperwork to form it yourself or pay an attorney to do it for you. Generally I would avoid the snake oil salesman that pitch specific out of state LLCs (Nevada, Delaware etc..) unless you have a specific reason or intend on doing business in the state. With the LLC or a Corporation you need to make sure you maintain separate finances. If you use the LLC funds to pay personal expenses you run the risk of loosing the liability protection afforded by the LLC (piercing the corporate veil). With a single member LLC you can file as a pass through entity and your LLC income would pass through to your federal return and taxes aren't any more complicated than putting your business income on your personal return like you do now. If you have employees things get more complex and it is really easiest to use a payroll service to process state and federal tax with holding. Once your business picks up you will want to file quarterly tax payments in order to avoid an under payment penalty. Generally, most taxpayers will avoid the under payment 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. Even if you get hit by the penalty it is only 10% of the amount of tax you didn't pay in time. If you are selling a service such writing one off projects you should be able to avoid having to collect and remit sales tax, but this is going to be very state specific. If you are selling software you will have to deal with sales tax assuming your state has a sales tax. One more thing to look at is some cities require a business license in order to operate a business within city limits so it would also be a good idea to check with your city to find out if you need a business license.",
"title": ""
},
{
"docid": "7bd542cb4e6e88dd0fb8aa378fa34d0a",
"text": "\"You can make a custom category for \"\"Website expenses\"\" under Other Expenses as well. If the domain name only costs a very small amount, like $10, I think expensing it would be reasonable. 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": "18cd8234a214ff8a7f311bcf36715bc1",
"text": "If you need to shop coins, you could do your personal improvement, however, this may be tricky because of even easy documentation errors fee extra. For many little employer proprietors, the high-quality picks the use of a business enterprise company, which is a fee-powerful preference to make sure your documentation is accurate and filed right away with conditions. If you're concerned in Delaware LLC with as little quotes as viable, begin with the aid of considering conditions wherein you'll include. You do no longer require work within the state you select, however it may be more reasonable for pick out your home circumstance.",
"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": "e7ccac55c68e68fb150691852e53e0c9",
"text": "Havoc P's answer is good (+1). Also don't forget the other aspects of business income: state filing fees, county/city filing fees, business licenses, etc. Are there any taxes you have to collect from your customers? If you expect to make more this year, then you should make estimated quarterly tax payments. The first one for 2011 is due around the same time as your federal income tax filing.",
"title": ""
},
{
"docid": "7b171a55ca69f689ee46c4199f8dc686",
"text": "If thinking about it like a business you normally only pay taxes on Net income, not gross. So Gross being all the money that comes in. People giving you cash, checks, whatever get deposited into your account. You then pay that out to other people for services, advertisement. At the end of the day what is left would be your 'profit' and you would be expected to pay income tax on that. If you are just an individual and don't have an LLC set up or any business structure you would usually just have an extra page to fill out on your taxes with this info. I think it's a schedule C but not 100%",
"title": ""
},
{
"docid": "05575c7ecd138f1d959b8ffd50b5d3d2",
"text": "I have researched this question extensively in previous years as we have notoriously high taxes in California, while neighboring a state that has zero corporate income tax and personal income tax. Many have attempted pull a fast one on the California taxation authorities, the Franchise Tax Board, by incorporating in Nevada or attempting to declare full-year residence in the Silver State. This is basically just asking for an audit, however. California religiously examines taxpayers with any evidence of having presence in California. If they deem you to be a resident in California, and they likely will based on the fact that you live in California (physical presence), you will be subject to taxation on your worldwide income. You could incorporate in Nevada or Bangladesh, and California will still levy its taxation on any business income (Single Member LLCs are disregarded as separate corporate entities, but still taxed at ordinary income rates on the personal income tax basis). To make things worse, if California examines your Single Member LLC and finds that it is doing business in California, based on the fact that its sole owner is based in California all year long, you could feasibly end up with additional penalties for having neglected to file your LLC in California (California LLCs are considered domestic, and only file in California unless they wish to do business in other states; Nevada LLCs are considered foreign to California, requiring the owner to file a domestic LLC organization in Nevada and then a foreign LLC organization in California, which still gets hit with the minimum $800 franchise fee because it is a foreign LLC doing business in California). Evading any filing responsibility in California is not advisable. FTB consistently researches LLCs, S-Corporations and the like to determine whether they've been organized out-of-state but still principally operated in California, thus having a tax nexus with California and the subsequent requirement to be filed in California and taxed by California. No one likes paying taxes, and no one wants to get hit with franchise fees, especially when one is starting a new venture and that minimum $800 assessment seems excessive (in other words, you could have a company that earns nothing, zero, zip, nada, and still has to pay the $800 minimum fee), but the consequences of shirking tax laws and filing requirements will make the franchise fee seem trivial in comparison. If you're committed to living in California and desire to organize an LLC or S-Corp, you must file with the state of California, either as a domestic corporation/LLC or foreign corporation/LLC doing business in California. The only alternatives are being a sole proprietor (unincorporated), or leaving the state of California altogether. Not what you wanted to hear I'm sure, but that's the law.",
"title": ""
},
{
"docid": "86f371260e89d31a0477118e8f490e2c",
"text": "\"Actually, calculating taxes isn't that difficult. You will pay a percentage of your gross sales to state and local sales tax, and as a single-owner LLC your profits (after sales taxes) should pass through to your individual tax tax return (according to this IRS article. They are not cumulative since they have different bases (gross sales versus net profit). That said, when determining if your future business is profitable, you need to ask \"\"what aspects of the business can I control\"\"? Can you control how much each item sells for? Increasing your prices will increase your gross margins, which should be higher than your fixed and variable costs. If your margins do not exceed your costs, then you will note be profitable. Note that as a vendor you are at a slight disadvantage to a retailer, since tax has to be baked in to your prices. A retailer can advertise the pre-tax price, and pass-through sales tax at the point of sale. However, people expect to pay more at a vending machine, so the disadvantage is very small (you aren't directly competing with retailers anyways).\"",
"title": ""
},
{
"docid": "43b87ab9579364ecb540986c555633c2",
"text": "Normally you could either head down to the office supply store and pick up a copy of a tax program, or you could head over to the IRS office and pick up the instructions and forms. However, in your case you should be talking to a tax lawyer. The unfiled taxes are bad enough but you own a business outside the USA and most likely have bank accounts also. That brings you into the realm of FATCA.",
"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": "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": "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": "f9a15d4ecc758b477a3b68fb24dd21a4",
"text": "\"You can hire a good CPA for a really low price. They can advise you on how to do exactly what you said and many other aspects of your business. Mine does this as a courtesy with the filing of my taxes. And the filing of my taxes is not all that much. It is great value for the money. Recently I had to make a decision that is a potential audit situation and can go badly if not properly documented. It was not hard to document (with the CPA's help), but now that it is so I don't lose mental energy on if I am going to get \"\"caught\"\" by the IRS. Let them come, I have the necessary documentation. Beyond the IRS, I really like the documentation that you are trying to put behind this loan. Having this in writing helps smooth this potentially bad situation between you and the BIL. I would go above and beyond writing conditions and contingencies down in order to keep this relationship happy. With these kinds of things, cover the applicable 5 \"\"Ds\"\" of partnership agreements: However, I would add another: Boom. What happens if your business takes off? Perhaps there should be a clause to retire the loan prior to you expanding beyond a certain level. Please understand I am not suggesting that any of these bad things are going to happen to you (except the Boom, I really hope that happens to you), but it is a way to communicate contingent actions if one of the risks of small business materializes. Having agreements ahead of time helps avoid crisis.\"",
"title": ""
},
{
"docid": "75546585b13b415f40ba7b912437fc1a",
"text": "\"Depending on the nature of the expenses, you will enter them under Deductions, on lines 9 through 20. Did you rent an office? Add the rental expense to line 13. Fee for a business license? Line 14. Everything else that doesn't fall into any specific category goes on line 20 (You'll need to attach a small statement that breaks out the expense categories, e.g. office supplies, phone, legal fees, etc.) Expenses that are entered in the Income section are costs directly related to sales, such as merchant fees that you pay to a bank if you take payments by credit card. Since you said the partnership has \"\"zero money coming in,\"\" I assume that it currently has no revenues, so all the fields in the Income section would be zero.\"",
"title": ""
}
] |
fiqa
|
39d2b85be30a97c3fdc27a0f5d3b72d3
|
Would the purchase of a car for a business through the use of a business loan be considered a business expense?
|
[
{
"docid": "221c2facfbbbc27225c5f7d9f28af460",
"text": "You don't say what country you live in. If it's the U.S., the IRS has very specific rules for business use of a car. See, for starters at least, http://www.irs.gov/publications/p463/ch04.html. The gist of it is: If you use the car 100% for business purposes, you NEVER use it to drive to the grocery store or to your friend's house, etc, then it is a deductible business expense. If you use a car party for business use and partly for personal use, than you can deduct the portion of the expense of the car that is for business use, but not the portion that is for personal use. So basically, if you use the car 75% for business purposes and 25% for personal use, you can deduct 75% of the cost and expenses. You can calculate the business use by, (a) Keeping careful records of how much you spent on gas, oil, repairs, etc, tracking the percentage of business use versus percentage of personal use, and then multiplying the cost by the percentage business use and that is the amount you can deduct; or (b) Use the standard mileage allowance, so many cents per mile, which changes every year. Note that the fact that you paid for the car from a business account has absolutely nothing to do with it. (If it did, then everyone could create a small business, open a business account, pay all their bills from there, and all their personal expenses would magically become business expenses.) Just by the way: If you are going to try to stretch the rules on your taxes, business use of a car or personal computer or expenses for a home office are the worst place to do it. The IRS knows that cars and computers are things that can easily be used for either personal or business purposes and so they keep a special eye out on these.",
"title": ""
}
] |
[
{
"docid": "85110d666ba177dfbde6ed4aae613120",
"text": "Yes, truckloads of cash. /s It's exactly the same as your example, when people say to pay for a car in cash, they don't meany physical bills, but rather the idea that you aren't getting a loan. In most acquisitions, the buyer will usually pay with their own stock, pay in cash, or a combination of both.",
"title": ""
},
{
"docid": "a2f90aea0d5c4bccafa3f3047a28797e",
"text": "\"Assuming its in the US: No, it is not, and such things are usually treated as \"\"red flags\"\" for audit (and no, golf club memberships are not deductible either). The food expenses are not deductible in their entirety as well, only up to 50% of the actual expense, and only if it is directly business related. From what you've described, it sounds like if you have an audit coming you'll be in trouble. The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. You cannot deduct dues paid to: Country clubs, Golf and athletic clubs, Airline clubs, Hotel clubs, and Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions.\"",
"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": "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": "0cc576b5888470d7003f4abf92ab4d38",
"text": "No. Net profit is calculated after taxes. Loan interest is an expense, so it will result in the company paying less taxes (it acts as a tax shield), so net profit should still be positive. How much will depend on tax and interest rate. Only the portion of the $1.000.000 that correspond to interest is an expense. Principal payments are not.",
"title": ""
},
{
"docid": "fb32ab169c1794b67f1a1ee65fd22d70",
"text": "If you buy a car using a loan, the dealer gets benefited by the financing institution by the way of referring fee paid to the dealer by the institution, and that too if the dealer has helped in financing the purchase. Otherwise for the dealer it doesn't matter if one pays in full or through financing. The dealer is paid in full in either cases. Hence the dealer may slightly get disappointed that you are not taking a loan.",
"title": ""
},
{
"docid": "f44b20011b4c0ef83ce99bfe19e6e1ca",
"text": "It's not quite clear what you are asking, so I'll answer a few possible interpretations. Businesses pay taxes on their profits. So if your business took a million pounds in revenue (e.g. sold a million pounds worth of stuff) then you would subtract (roughly speaking) everything the business spent on making and selling that stuff, and pay taxes only on the profit. VAT however is a different matter, and you would have to pay VAT on all of that income (technically the VAT portion isn't even income - it's tax you are forced to collect on behalf of the government). If your business made a million pounds pounds profit, it would pay tax on all of that million (subject to what a tax accountant can do to reduce that, which ought to be considerable). You can't subtract your personal living expenses like that. However the company can pay you a salary, which counts as an expense and the company doesn't pay tax on that. You might also take some money from the company as dividends. Both salary and dividends count as personal income to yourself, and you will need to pay personal income tax on them. As for the Ferrari, it depends on whether you can justify it as a business expense. A lot of companies provide cars for their employees so that they can use them for business - however you have to be able to show that IS for business, otherwise they are taxed like salary. The rules for company cars are quite complicated, and you would need an accountant. If this is a real rather than hypothetical situation, definitely get a tax accountant involved.",
"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": "53a20d80b0a4b1fc95cd358082d398ce",
"text": "No, you can't claim personal expenses as business expenses. What is the alternative to paying someone to do your chores? Letting the chores go undone. How does it affect your business if your household chores go undone? It doesn't; it only affects your personal life--that's why they are personal expenses.",
"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": "c6c5338768d8d4a1502efcaa15ed74fd",
"text": "Sounds like a trick question. If it's hired for a limited time, equivalent to an operating lease, then you only pay a running cost as it's used, and it's neither an asset or a liability, but just a running cost like salaries. If it's hired in a way that fulfils the criteria for a financial lease, i.e. you treat it like it's being purchased, then it's both a liability and an asset. It goes on both sides of the balance sheet. Just like when you buy something on credit and recognize the liability to pay as a debt, and the item owned as an asset. edit: presuming the relevant company is the one paying.",
"title": ""
},
{
"docid": "aec159d832b416596b4ba5e39324d200",
"text": "An expense is an expense. You can deduct your lease payment subject to some limitations, but you don't make out by having more expenses. Higher expenses mean lower profit. Is leasing better than owning? It depends on the car you'd buy. If your business doesn't benefit from flashiness of your car, then buying a quality used car (a few years old at most) would probably be a wiser decision financially. I'd think hard about whether you really need an up-to-date car.",
"title": ""
},
{
"docid": "b54f359812447b459ce484e396958a5f",
"text": "Alright, IRS Publication 463: Travel, Entertainment, Gift, and Car Expenses Business and personal use. If you use your car for both business and personal purposes, you must divide your expenses between business and personal use. You can divide your expense based on the miles driven for each purpose. Example. You are a sales representative for a clothing firm and drive your car 20,000 miles during the year: 12,000 miles for business and 8,000 miles for personal use. You can claim only 60% (12,000 ÷ 20,000) of the cost of operating your car as a business expense Obviously nothing helpful in the code. So I would use option 1, weight the maintenance-related mileage by the proportion of business use. Although if you use your car for business a lot (and perhaps have a spouse with a car), an argument could be made for 3. So I would consider my odds of being audited (even lower this year due to IRS budget cuts) and choose 1 or 3. And of course never throw anything away until you're room temperature.",
"title": ""
},
{
"docid": "c6dbd951582b3e30962e024dba0282d1",
"text": "\"The answer to your question is...it depends. Depending on the state you, your friend, and the LLC are located in, it can be very easy to run afoul of state banking laws, or to somehow violate some other statute pertaining to the legal activities an LLC may undertake by doing something like a loan. It is not unusual (or illegal) for officers or employees of a business entity to be loaned money by the company they work for, so something of this nature wouldn't be an issue with regulatory agencies. Having your LLC loan money to a friend who isn't an employee or officer of your LLC just might not be kosher though. The best advice I can give is that you should call the state banking commission or similar agency in your state and ask them whether what you want to do is alright. The LAST thing you want is to end up with auditors or regulators sniffing around your business, even if you haven't done anything wrong, and you certainly don't want to run the risk of accidentally \"\"piercing the corporate veil\"\", as someone else here astutely pointed out. Good luck!\"",
"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": ""
}
] |
fiqa
|
25f47551752996a5875b20e7cd14578a
|
Deducting last years (undocumented) side business loss
|
[
{
"docid": "65e937ed3f126133a62b0b7452a1af51",
"text": "You should speak to a good tax adviser. The less documentation you have the more problems IRS are going to cause you. Generally you can deduct business losses (in the year they occurred, which is 2011), but you have to show that that was a valid business, not just a way to reduce your tax bill with personal expenses. Thus lack of documentation reduces your ability to prove that you're entitled to the deduction. The burden of proof is generally on you. You can not deduct it from 2012 taxes, but you can still amend 2011. Keep in mind though that amended returns have higher chance of audit, and a significant business loss on a business that only existed that year is a major red flag which will raise the probability of an audit to very high percentage. Theoretically, if the business was real and just failed - you can definitely deduct this. But practically, lack of documentation may cause too big a problem, and a tax adviser might suggest you giving it up if he doesn't think you have a real chance to convince the IRS. Definitely don't do that without a professional advice. It is worth fighting for, its quite a loss, but don't do it on your own as you will definitely lose.",
"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": "2c471849f109297f8aa0872aaa94b4cd",
"text": "I am not an accountant, but I have a light accounting background, despite being primarily an engineer. I also have a tiny schedule C business which has both better and worse years. I am also in the United States and pay US taxes. I assume you are referring to the US Form 1040 tax return, with the attached Schedule C. However little I know about US taxes, I know nothing about foreign taxes. You are a cash-basis taxpayer, so the transactions that happen in each tax year are based on the cash paid and cash received in that year. You were paid last year, you computed your schedule C based on last year's actual transactions, and you paid taxes on that income. You can not recompute last years schedule C based on the warranty claim. You might want to switch to an accrual accounting method, where you can book allowances for warranty claims. It is more complex, and if your business is spotty and low volume, it may be more trouble than it is worth. At this point, you have two months to look for ways to shift expenses into next year or being income into this year, both of which help offset this loss. Perhaps a really aggressive accountant would advise otherwise (and remember, I am not an accountant), but I would take the lumps and move on. This article on LegalZoom (link here) discusses how to apply a significant net operating loss (NOL) in this year to the previous two years, and potentially carry it forward to the next two years. This does involve filing amended returns for the prior two years, showing this year's NOL. For this to be relevant, your schedule C loss this year must exceed your other W2 and self-employment income this year, with other tests also applied. Perhaps a really aggressive accountant would advise otherwise (and remember, I am not an accountant), but I would take the lumps and move on.",
"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": "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": "d658c3ec1d9279c81cc4cf3a58c86168",
"text": "\"Short answer: Yes. For Federal income tax purposes, you are taxed on your total income, adding up positives and negatives. If business A made, say, $100,000 while business B lost $20,000, then your total income is $80,000, and that's what you'll be taxed on. As @littleadv says, of course any business losses you claim must qualify as business losses under IRS rules. And yes, there are special rules about losses that the IRS considers \"\"passive\"\". If you have wage income in addition to business income, business losses don't offset wage income for social security and medicare tax purposes. You can't get a refund of the social security tax deducted from your paycheck. I don't know if this is relevant to you, but: If you have businesses in different states, each is taxed by that state. For example I have two tiny side businesses, one in Michigan and one in Ohio. Last year the Michigan business made money while the Ohio business lost money. So my federal income was Michigan minus Ohio. My Ohio income was negative so I owed no Ohio income tax. But I couldn't subtract my Ohio losses from my Michigan income for Michigan income tax purposes. Thus, having, say, $10,000 income in Michigan and $10,000 in Ohio would result in lower taxes than $30,000 income in Michigan and a $10,000 loss in Ohio, even though the total income in both cases is the same. And this would be true even if the tax rates in both states were identical.\"",
"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": "ae579dcb50cc14bc3da84900f50b83ed",
"text": "I'm no tax expert by any means. I do know that a disreagarded entity is considered a sole proprietor for federal tax purposes. My understanding is that this means your personal tax year and your business tax year must be one and the same. Nevertheless, it is technically possible to have a non-calendar fiscal year as an individual. This is so rare that I'm unable to find a an IRS reference to this. The best reference I could find was this article written by two CPAs. If you really want to persue this, you basically need to talk with an accountant, since this is complicated, and required keeping propper accounting records for your personal life, in addition to your business. A ledger creqated after-the-fact by an accountant has been ruled insufficent. You really need to live by the fiscal year you choose.",
"title": ""
},
{
"docid": "937e178303c71f9a48e8980a920490ce",
"text": "This loss would be unrealized and, assuming you're a cash-basis tax-payer, you would not be able to take a loss on your 2014 tax return. This is similar to if you held a stock that lost 50% of its value. You wouldn't be able to claim this loss until you finally sold it. The link that User58220 posted may come into play if you converted your UAH back to USD.",
"title": ""
},
{
"docid": "2b3eb961fe4796f80757fdd694888379",
"text": "IRS Publication 463 is a great resource to help you understand what you can and can't deduct. It's not a yes/no question, it depends on the exact company use, other use, and contemporaneous record keeping.",
"title": ""
},
{
"docid": "1525ae32cf52879d47052ec31a67d930",
"text": "A non-resident alien is only allowed for deductions connected to producing a US-sourced income (See IRC Sec. 873). Thus you can only deduct things that qualify as business expenses, and State taxes on your wages. In addition you can deduct a bunch of stuff explicitly allowed (like tax preparation, charitable contributions, casualty losses, etc) but sales tax is not in that list.",
"title": ""
},
{
"docid": "4feb648016f073df68bca025da36bfd5",
"text": "\"Hobby expenses are not tax deductible. Business expenses are, but only if it's a bona fide business. First they look at profitability: if you reported a net profit (i.e. paid taxes) in your first 3 years, they will believe you rant on Youtube for a living. Remember, by the time they get around to auditing you, you'll likely be well into, or through, your third year. There is an exception for farms. Other than that, if you lose money year after year, you better be able to show that you look, walk and quack like a business; and one with a reasonable business reason for delayed profitability. For instance Netflix's old business model of mailing DVDs had very high fixed infrastructure expense that took years to turn profitable, but was a very sensible model. They're fine with that. Pets.com swandived into oblivion but they earnestly tried. They're fine with that too. You can't mix all your activities. If you're an electrician specializing in IoT and smart homes, can you deduct a trip to the CES trade show, you bet. Blackhat conference, arguable. SES? No way. Now if you had a second business of a product-reco site which profited by ads and affiliate links, then SES would be fine to deduct from that business. But if this second business loses money every year, it's a hobby and not deductible at all. That person would want separate accounting books for the electrician and webmaster businesses. That's a basic \"\"duck test\"\" of a business vs. a hobby. You need to be able to show how each business gets income and pays expense separate from every other business and your personal life. It's a best-practice to give each business a separate checking account and checkbook. You don't need to risk tax penalties on a business-larva that may never pupate. You can amend your taxes up to 3 years after the proper filing date. I save my expense reciepts for each tax year, and if a business becomes justifiable, I go back and amend past years' tax forms, taking those deductions. IRS gives me a refund check, with interest!\"",
"title": ""
},
{
"docid": "36fcccad5602fec5364f2c1f4e6d3235",
"text": "Generally stock trades will require an additional Capital Gains and Losses form included with a 1040, known as Schedule D (summary) and Schedule D-1 (itemized). That year I believe the maximum declarable Capital loss was $3000--the rest could carry over to future years. The purchase date/year only matters insofar as to rank the lot as short term or long term(a position held 365 days or longer), short term typically but depends on actual asset taxed then at 25%, long term 15%. The year a position was closed(eg. sold) tells you which year's filing it belongs in. The tiny $16.08 interest earned probably goes into Schedule B, typically a short form. The IRS actually has a hotline 800-829-1040 (Individuals) for quick questions such as advising which previous-year filing forms they'd expect from you. Be sure to explain the custodial situation and that it all recently came to your awareness etc. Disclaimer: I am no specialist. You'd need to verify everything I wrote; it was just from personal experience with the IRS and taxes.",
"title": ""
},
{
"docid": "9a79e4ac789b44b448e0340713d810a9",
"text": "You can only deduct (with the 2% AGI threshold) expenses that: You've actually incurred. I.e.: you actually paid for equipment or services provided and can show receipts for the payment. At the request of the employer. I.e.: you didn't just decide on your own to buy a new book or take a class, your employer told you to. With business necessity. I.e.: it was in order for you to do your job. And you were not reimbursed by your employer. I.e.: you went somewhere and spent your after tax money on something employer explicitly told you to pay for, and you didn't get reimbursed for that. From your story - these conditions don't hold for you. As I said in the comments - I strongly suggest you talk to a lawyer. Your story just doesn't make any sense, and I suspect your employer is doing something very fishy here.",
"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": "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": ""
}
] |
fiqa
|
f9e4e829155c6ec88867db4ecf32fbb7
|
30% share in business
|
[
{
"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": "ac5f6d63f5ddfbe95132e9cb560a5580",
"text": "Get involved a lawyer and Accountant. Without it you may not be sure what you are getting. What exactly will 30% mean for me? It will mean exactly what gets written in contract. It can mean you are owner of 30% of the company. If this is structured as partnership, it would also mean you are party to 30% loss. It can mean by current valuation, you get x fixed shares. In future if the directors creates more shares, your % ownership can get diluted. Or anything else. It all depends on what is written in contract and how the contract is structured. Is there anything I should I be aware of before agreeing? Get a draft and talk to a Lawyer and Accountant, they should be able to tell you exactly what it means and you can then decide if you agree to it or not; or need this contract worded differently.",
"title": ""
}
] |
[
{
"docid": "cc91ea4c757c7222136a6d2fab185128",
"text": "Typically, preferred shares come with one or both different benefits - a disproportionate share of votes, say 10 votes per share vs the normal 1, or a preferred dividend. The vote preference is great for the owner(s) looking to go public, but not lose control of the company. Say, I am a Walton (of Walmart fame) and when I went public, I sold 80% of the (1000 share total) company. But, in creating the share structure, 20% of shares were assigned 10 votes each. 800 shares now trade with 800 votes, 200 shares have 10 votes each or 2000 votes. So, there are still the 1000 shares but 2800 votes. The 20% of shares now have 2000/2800 or 71% of the total votes. So, my shares are just less than half ownership, but over 78% of votes. Preferred dividend is as simple as that, buy Stock A for ownership, or (same company) Stock A preferred shares which have ownership and $1/yr dividend. Edited to show a bit more math. I use a simple example to call out a total 1000 shares. The percentages would be the same for a million or billion shares if 20% were a 10 vote preferred.",
"title": ""
},
{
"docid": "83a2cd1d21f6b2b537b411e87e0e262d",
"text": "As part of this acquisition 96% of the shareholders accepted an offer for their shares This means that most of the shareholder agreed for the sale. If this was less than specified percentage, the deal would not have gone through. To make it easier, there were 2 options present to shareholder, full exchange of shares of Infinera or part shares and part cash. I failed to do so as I was unwell at the time So you cannot now choose the option. There will be a default option of getting the equivalent shares in Infinera. What options are available to me now? Contact Infinera investor relations and ask them.",
"title": ""
},
{
"docid": "a9137d9de66cb03137718ed663e40f0a",
"text": "Isn't this absolute bullshit? You're basically giving him 8% interest plus 30% stake in the company for nothing other than putting up the initial shareholder capital ... which he's basically treating like a loan because he wants the money back and guaranteed dividend on the stake he's buying with it. Essentially, he's hedging himself against this not being a long continuing concern. So much for trust eh? I have absolutely no idea how the VC world evaluates things so this may be normal practice for them ... but it seems like short changing which will come back to bite you if the business takes off.",
"title": ""
},
{
"docid": "e3cb4bef3b410bfdf6c5f591b47e88eb",
"text": "A private company say has 100 shares with single owner Mr X, now it needs say 10,000/- to run the company, if they can get a price of say 1000 per share, then they just need to issue 10 additional shares, so now the total shares is 110 [100 older plus 10]. So now the owner's share in the company is around 91%. However if they can get a price of only Rs 200 per share, they need to create 50 more shares. So now the total shares is 150 [100 older plus 50]. So now Mr X's equity in his own company is down to 66%. While this may still be OK, if it continues and goes below 50%, there is chances that he [Original owner] will be thrown out",
"title": ""
},
{
"docid": "da781e6cc464fae224f7616998e5d61b",
"text": "Imagine that I own 10% of a company, and yesterday my portion was valued at $1 Million, therefore the company is valued at $10 Million. Today the company accepts an offer to sell 1% of the company for $500 Thousand: now my portion is worth $5 Million, and company is worth $50 Million. The latest stock price sets the value of the company. If next week the news is all bad and the new investor sells their shares to somebody else for pennies on the dollar, the value of the company will drop accordingly.",
"title": ""
},
{
"docid": "a1931fcfb31aace0fe69344184134370",
"text": "\"Simply paying him back the 50K to reduce \"\"his equity\"\" back to 30% doesn't necessarily mean that he still doesn't have a higher liq pref upon a liquidation event. You don't need the legal language to know...I deal with term sheets all the time, I don't deal in the legal language, we cut the deal with the term sheet and leave the legal language to the lawyers.\"",
"title": ""
},
{
"docid": "75d0ef524784e39bf4b944ea1d459050",
"text": "number of shares is finite Yes it is I would assume that the repurchase numbers exceed the numbers of created shares Number of shares repurchased by company would never exceed in theory the total number of shares. It can become Zero, however its unlikely as it would run on its own and its not possible. In practise company generally repurchase a small percentage say 5% - 10% of the outstanding shares. The number of shares additional created is irrelevant. Its the total shares that is relevant. Edit: A company starts with say 100 shares, over the period it creates new shares [via various mechanisms, Rights issue, split, Additional shares, etc] say to the extent of 50. So now the company has total shares of 150. This lets say is held by 15 entities. The company can buy back say 15 shares in a year, and keep doing this, next year another 10 etc. However a company if it purchased all 150 of its own shares is unlikely as the Majority shareholders will not like this to happen and loose control. There are 2 different things, buying out of minority shareholders, typically different percentage of the shares are held by non-promoters and available for trade can range from 10% to 70% ... there are also listing norms. Quite a few stock-exchange need atleast 10% shares to be available for trade [held by non-promotors]. In case a company has a small number of shares held by non-promoters, it can buy back the shares and delist the company from the exchange.",
"title": ""
},
{
"docid": "0781346fa724fd4cdd54d85a61f25b62",
"text": "I almost agree. I am not completely sure about the ownership of stock, but to have the majority ownership of any company you must own more than 50% of a company's outstanding shares. Although a board in majority, could out vote a majority shareholder in most cases depending on the company policy regarding shareholders and the general law of the country, and to how the company is managed.",
"title": ""
},
{
"docid": "c12ee0e61851a3b1e3a942a83af67044",
"text": "\"I think your question might be coming from a misunderstanding of how corporate structures work - specifically, that a corporation is a legal entity (sort of like a person) that can have its own assets and debts. To make it clear, let's look at your example. We have two founders, Albert and Brian, and they start a corporation called CorpTech. When they start the company, it has no assets - just like you would if you owned nothing and had no bank account. In order to do anything, CorpTech is going to need some money. So Albert and Brian give it some. They can give it as much as they want - they can give it property if they want, too. Usually, people don't just put money into a corporation without some sort of agreement in place, though. In most cases, the agreement says something like \"\"Each member will own a fraction of the company that is in proportion to this initial investment.\"\" The way that is done varies depending on the type of corporation, but in general, if Albert ends up owning 75% and Brian ends up owning 25%, then they probably valued their contributions at 75% and 25% of the total value. These contributions don't have to be money or property, though. They could just be general \"\"know-how,\"\" or \"\"connections,\"\" or \"\"an expectation that they will do some work.\"\" The important thing is that they agree on the value of these contributions and assign ownership of the company according to that agreement. If they don't have an agreement, then the laws of the state that the company is registered in will say how the ownership is assigned. Now, what \"\"ownership\"\" means can be different depending on the context. When it comes to decision-making, you could \"\"own\"\" one percentage of the company in terms of votes, but when it comes to shares of future profits, you could own a different amount. This is why you can have voting and non-voting versions of a company's stock, for example. So this is a critical point - the ownership of a company is independent of the individual contributions to the company. The next part of your question is related to this: what happens when CorpTech sees an opportunity to make an investment? If it has enough cash on hand (because of the initial investment, or through financing, or reinvested profits), then the decision to make the investment is made according to Albert and Brian's ownership agreement, and they spend it. The money doesn't belong to them individually anymore, it belongs to CorpTech, and so CorpTech is spending it. They are just making the decision for CorpTech to spend it. This is why people say the owners are not financially liable beyond their initial investment. If the deal is bad, and they lose the money, the most they can lose is what they initially put in. On the other hand, if CorpTech doesn't have the money, then they have to figure out a way to get it. They might decide to each put in an amount in proportion to their ownership, so that their stake doesn't change. Or, Albert might agree to finance the deal 100% in exchange for a larger share of ownership. Or, he could agree to fund all of it without a larger stake, because Brian is the one who set the deal up. Or, they might take out a loan, and not need to invest any new money. Or, they might find an investor who agrees to put in the needed money in exchange for a a 51% share, in which case Albert and Brian will have to figure out how to split the remaining 49% if they agree to the deal. The details of how all of this would work depend on the structure (LLC, LLP, C-corp, S-corp, etc), but in general, the idea is that the company has assets and debts, and the owners can have voting rights, equity rights, and rights to future profits in any type of split that they want, regardless of what the companies assets and debts are, or what their initial investment was.\"",
"title": ""
},
{
"docid": "00d21b3746e0c66b39ff8538ccd42fcd",
"text": "\"Owning more than 50% of a company's stock normally gives you the right to elect a majority, or even all of a company's (board of) directors. Once you have your directors in place, you can tell them who to hire and fire among managers. There are some things that may stand in the way of your doing this. First, there may be a company bylaw that says that the directors can be replaced only one \"\"class\"\" at a time, with three or four \"\"classes.\"\" Then it could take you two or three years to get control of the company. Second, there may be different classes of shares with different voting rights, so if e.g. \"\"A\"\" shares controlled by the founding family gives them ten votes, and \"\"B\"\" shares owned by the other shareholders, you may have a majority of total shares and be outvoted by the \"\"A\"\" shares.\"",
"title": ""
},
{
"docid": "4369868410d906a8c2a6ee3fc23dc638",
"text": "It depends on the business entity. If the entity is a sole proprietorship or a general partnership, the individual are considered to be the business. There are no shares, and so yes, the owner would have to take on 75% of the expenses. For example, in the event of a lawsuit, if the claimant were awarded $1,000,000, the 75% partner would be personally liable for $750,000. In the event of a corporation, there are shares, so the responsibility is on the management of the company, not the owners, to come up with money for the expenses of the business. That money can come from the business' capital, which is the money owners have put in. Basically, for a corporate entity, the owner is not responsible for 75% of expenses, for a partnership, yes, they are.",
"title": ""
},
{
"docid": "4a7cb335aa2cfc013f8504d25232875e",
"text": "\"It is not clear when you mean \"\"company's directors\"\" are they also majority owners. There are several reasons for Buy; Similarly there are enough reasons for sell; Quite often the exact reasons for Buy or Sell are not known and hence blindly following that strategy is not useful. It can be one of the inputs to make a decision.\"",
"title": ""
},
{
"docid": "67d7dfb2f82a21b6f3921d03126aca1a",
"text": "The power of selling skills. Jonathan convinced him that at 100% it was not truly in the investors best interest because he would lose what made the company grow, him... Example at 100% equity (A buyout) the company would lose its CEO the driving force behind the product. Maybe because of this it only makes a million in sales and value. But at 35% plus 4% in sales Jonathan will continue to put his heart, soul and passion into the company and in the long term maybe the company becomes worth 10 million. And at 35% this deal is worth 3.5 million to the investor, all because he was convinced of Jonathan's tenacity. A truly beautiful display of knowing your stuff and sticking to your guns.",
"title": ""
},
{
"docid": "1bf921ce7872ac844b4b36aba18cec4d",
"text": "From my memory of CFA Level 2 accounting: * If Company A buys 50% or more of company B, they must consolidate 100% of Company B on their financial statements. The % of the business they don't own is multiplied by net income every year, and the resulting number is added to minority interest on the balance sheet. * If Company A buys more than 20% but less than 50%, use the equity method of accounting. This involves creating an asset for the purchase price paid for the stake in Company B. The asset increases in value by dividends received, that's it. * If Company A buys 20% or less, the investment is held in Marketable securities or something similar on the balance, and is marked-to-market.",
"title": ""
},
{
"docid": "e0654e7730a0c6596f36a97d8f2e0cc7",
"text": "You actually have a few options. First, you can do a share split and then sell an equal number of shares from both you and your wife to maintain parity. Second, you can have the company issue additional shares/convert shares and then have the company sell the appropriate percentage to the third party while the rest is distributed to you and your wife. Third, you can have the company issue a separate class of stock. For example there are companies that have voting stock and non-voting stock. Depending on your goal, you could just issue non-voting stock and sell that. Best bet is to contact a lawyer who specializes in this type of work and have them recommend a course of action. One caveat that has not been mentioned is that what/how you do this will also depend on the type of corporation that you have created.",
"title": ""
}
] |
fiqa
|
5932b56d8fba8f68c176ff7c8a6ee180
|
Claiming business expense from personal credit card
|
[
{
"docid": "983b96518395d2dd077ddb166149f582",
"text": "or just input it in my accounting software along with receipts, and then when I'm doing taxes this would go under the investment or loses (is it somewhere along that line)? Yes, this. Generally, for the long term you should have a separate bank account and charge card for your business. I started my business (LLC) by filing online, and paying a fee for a registration, and that makes it a business cost right? Startup cost. There are special rules about this. Talk to your tax adviser. For the amounts in question you could probably expense it, but verify.",
"title": ""
},
{
"docid": "e9164010a7447a8720e8f28be4b6652e",
"text": "There is no law that requires you to have a separate bank account for your business, or to pay all expenses from a business bank account. It is a GOOD IDEA to have a separate bank account and pay all business expenses from that account and all personal expenses from your personal account, because that makes sorting out what is what much simpler, both in case of an audit and for your own accounting. Whether a particular expenditure is a deductible business expense has nothing to do with what account you pay it from. If you pay advertising expenses for your business from your personal account, that's still (almost certainly) a deductible business expense. If you buy groceries from your business account, that's almost certainly not a deductible business expense. In your case, there are all kinds of rules about when and how much travel is deductible.",
"title": ""
}
] |
[
{
"docid": "dbfa5b84cb673235e5bac207e7538d3e",
"text": "As I understand it... Generally housing can't be considered a business expense unless taken at your employer's explicit direction, for the good of the business rather than the employee. Temporary assignment far enough from you home office that commuting or occasional hotel nights are impractical, maybe. In other words, if they wouldn't be (at least theoretically) willing to let you put it on an expense account, you probably can't claim it here.",
"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": "ac59ace4d85551d12cfedf3a65cd4df0",
"text": "\"Your corporation would file a corporate income tax return on an annual basis. One single month of no revenue doesn't mean much in that annual scheme of things. Total annual revenue and total annual expenses are what impact the results. In other words, yes, your corporation can book revenues in (say) 11 of 12 months of the year but still incur expenses in all months. Many seasonal businesses operate this way and it is perfectly normal. You could even just have, say, one super-awesome month and spend money the rest of the year. Heck, you could even have zero revenue but still incur expenses—startups often work like that at first. (You'd need investment funding, personal credit, a loan, or retained earnings from earlier profitable periods to do that, of course.) As long as your corporation has a reasonable expectation of a profit and the expenses your corporation incurs are valid business expenses, then yes, you ought to be able to deduct those expenses from your revenue when figuring taxes owed, regardless of whether the expenses were incurred at the same approximate time as revenue was booked—as long as the expense wasn't the acquisition of a depreciable asset. Some things your company would buy—such as the computer in your example—would not be fully deductible in the year the expense is incurred. Depreciable property expenses are deducted over time according to a schedule for the kind of property. The amount of depreciation expense you can claim for such property each year is known as Capital Cost Allowance. A qualified professional accountant can help you understand this. One last thing: You wrote \"\"write off\"\". That is not the same as \"\"deduct\"\". However, you are forgiven, because many people say \"\"write off\"\" when they actually mean \"\"deduct\"\" (for tax purposes). \"\"Write off\"\", rather, is a different accounting term, meaning where you mark down the value of an asset (e.g. a bad loan that will never be repaid) to zero; in effect, you are recognizing it is now a worthless asset. There can be a tax benefit to a write-off, but what you are asking about are clearly expense deductions and not write-offs. They are not the same thing, and the next time you hear somebody using \"\"write off\"\" when they mean \"\"deduction\"\", please correct them.\"",
"title": ""
},
{
"docid": "e74a34907bbd9a96c944e1b07530a98a",
"text": "\"I disagree with BrenBran, I don't think this is qualified as unreimbursed employee expense. For it to qualify, it has to be ordinary and necessary, and specifically - necessary for your employer. This is not the case for you, as there's no such necessity. From employer's perspective, you can work from your home just as well. In fact, the expense is your personal, as it is your choice, not \"\"unreimbursed employee expense\"\" since your employer didn't even ask you to do it. You should clarify this with a licensed tax adviser (EA/CPA licensed in New York).\"",
"title": ""
},
{
"docid": "e78b35365288cf3823c4ae0b5e8b957f",
"text": "\"It's pretty easy. In the Interview Setup for Ufile, check the box for \"\"Self-employment business income\"\". Then during the process of filling everything out, you'll get a Self-Employment screen. It'll ask for the name of your business, but just put your own name since you don't have one. For the 6-digit classification code, click the ? button and look through the list for the industry that best matches the one for whom you wrote the technical report. Or you can go with 711500: Independent artists, writers and performers. It doesn't really matter that much so don't worry if it's a poor match. It will also ask you for your income and expenses. I don't know exactly what costs you might have incurred to write your report, but you can likely claim a very tiny amount of \"\"home office\"\" expenses. Costs like rent (or mortgage interest + property tax), utilities, and home insurance can be claimed, but they have to be pro-rated for the time you were actually doing the work, and are based on the amount of space you used for the work. For example, if you paid $1000 rent and $200 utilities for the month in which the work was done, and it took you 20 of the 31 days in that month to actually do the work, and you used a room that makes up about 10% of the square footage of your home, then you can claim: $1200 * 20/31 * 0.1 = $77.42 for your home office expenses. If you also used that room for non-business purposes during that time, then you reduce it even further. Say, if the room was also used for playing video games 50% of the time, then you'd only claim $38.71\"",
"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": "473b89d88dbe46c26fc30c3a059e5370",
"text": "In no ways. Both will be reported to the members on their K1 in the respective categories (or if it is a single member LLC - directly to the individual tax return). The capital gains will flow to your personal Schedule D, and the business loss to your personal Schedule C. On your individual tax return you can deduct up to 3K of capital losses from any other income. Business loss is included in the income if it is active business, for passive businesses (like rental) there are limitations.",
"title": ""
},
{
"docid": "58348661c55700b23bf1552586d40b29",
"text": "Assuming that it's not inventory that is sold in the following year or a depreciable asset, you can deduct it when you make the purchase. The courts have ruled that credit cards balances are considered debt. It's treated the same way as if you went to the bank, got a loan, and used cash or a check to purchase the items. On your accounting books, you would debit the expense account and credit the credit card liability account. This is only for credit cards, which are considered loans. If you use a store charge card, then you cannot deduct it until you pay. Those are considered accounts payable. I'm an IRS agent and a CPA.",
"title": ""
},
{
"docid": "69c0b762b3bcc88cf243d2bc0f4f0195",
"text": "What I would prefer is top open a new category charges under dispute and park the amount there. It can be made as an account as well in place of a income or expenses category. This way your account will reconcile and also you will be able to track the disputes.",
"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": "a9c23ac395d4ece655d32c1d7c7bcaaf",
"text": "\"No, your business cannot deduct your non-business expenses. You can only deduct from your business income those reasonable expenses you paid in order to earn income for the business. Moreover, for there to be a tax benefit, your business generally has to have income (but I expect there are exceptions; HST input tax credits come to mind.) The employment income from your full-time job wouldn't count as business income for your corporation. The corporation has nothing to do with that income – it's earned personally, by you. With respect to restaurant bills: These fall under a category known as \"\"meals & entertainment\"\". Even if the expense can be considered reasonable and business-related (e.g. meeting customers or vendors) the Canada Revenue Agency decided that a business can only deduct half of those kinds of expenses for tax purposes. With respect to gasoline bills: You would need to keep a mileage and expense log. Only the portion of your automobile expenses that relate to the business can be deducted. Driving to and from your full-time job doesn't count. Of course, I'm not a tax professional. If you're going to have a corporation or side-business, you ought to consult with a tax professional. (A point on terminology: A business doesn't write off eligible business expenses — it deducts them from business income. Write off is an accounting term meaning to reduce the value of an asset to zero. e.g. If you damaged your car beyond repair, one could say \"\"the car is a write-off.\"\")\"",
"title": ""
},
{
"docid": "c11d1781a910fe53b160db6f0ac43cb5",
"text": "The IRS Guidance pertaining to the subject. In general the best I can say is your business expense may be deductible. But it depends on the circumstances and what it is you want to deduct. Travel Taxpayers who travel away from home on business may deduct related expenses, including the cost of reaching their destination, the cost of lodging and meals and other ordinary and necessary expenses. Taxpayers are considered “traveling away from home” if their duties require them to be away from home substantially longer than an ordinary day’s work and they need to sleep or rest to meet the demands of their work. The actual cost of meals and incidental expenses may be deducted or the taxpayer may use a standard meal allowance and reduced record keeping requirements. Regardless of the method used, meal deductions are generally limited to 50 percent as stated earlier. Only actual costs for lodging may be claimed as an expense and receipts must be kept for documentation. Expenses must be reasonable and appropriate; deductions for extravagant expenses are not allowable. More information is available in Publication 463, Travel, Entertainment, Gift, and Car Expenses. Entertainment Expenses for entertaining clients, customers or employees may be deducted if they are both ordinary and necessary and meet one of the following tests: Directly-related test: The main purpose of the entertainment activity is the conduct of business, business was actually conducted during the activity and the taxpayer had more than a general expectation of getting income or some other specific business benefit at some future time. Associated test: The entertainment was associated with the active conduct of the taxpayer’s trade or business and occurred directly before or after a substantial business discussion. Publication 463 provides more extensive explanation of these tests as well as other limitations and requirements for deducting entertainment expenses. Gifts Taxpayers may deduct some or all of the cost of gifts given in the course of their trade or business. In general, the deduction is limited to $25 for gifts given directly or indirectly to any one person during the tax year. More discussion of the rules and limitations can be found in Publication 463. If your LLC reimburses you for expenses outside of this guidance it should be treated as Income for tax purposes. Edit for Meal Expenses: Amount of standard meal allowance. The standard meal allowance is the federal M&IE rate. For travel in 2010, the rate for most small localities in the United States is $46 a day. Source IRS P463 Alternately you could reimburse at a per diem rate",
"title": ""
},
{
"docid": "ed6909b1d2486a0cd9e6aaf638528c16",
"text": "\"For a newly registered business, you'll be using your \"\"personal\"\" credit score to get the credit. You will need to sign for the credit card personally so that if your business goes under, they still get paid. Your idea of opening a business card to increase your credit score is not a sound one. Business plastic might not show up on your personal credit history. While some issuers report business accounts on a consumer's personal credit history, others don't. This cuts both ways. Some entrepreneurs want business cards on their personal reports, believing those nice high limits and good payment histories will boost their scores. Other small business owners, especially those who keep high running balances, know that including that credit line could potentially lower their personal credit scores even if they pay off the cards in full every month. There is one instance in which the card will show up on your personal credit history: if you go into default. You're not entitled to a positive mark, \"\"but if you get a negative mark, it will go on your personal report,\"\" Frank says. And some further information related to evaluating a business for a credit card: If an issuer is evaluating you for a business card, the company should be asking about your business, says Frank. In addition, there \"\"should be something on the application that indicates it's for business use,\"\" he says. Bottom line: If it's a business card, expect that the issuer will want at least some information pertaining to your business. There is additional underwriting for small business cards, says Alfonso. In addition to personal salary and credit scores, business owners \"\"can share financials with us, and we evaluate the entire business financial background in order to give them larger lines,\"\" she says. Anticipate that the issuer will check your personal credit, too. \"\"The vast majority of business cards are based on a personal credit score,\"\" says Frank. In addition, many issuers ask entrepreneurs to personally guarantee the accounts. That means even if the businesses go bust, the owners promise to repay the debts. Source\"",
"title": ""
},
{
"docid": "e066e481ce1dc4ba46306df1ed00eb97",
"text": "I'm a CPA and former IRS agent and manager. Whether you are a cash or accrual basis taxpayer, you get to deduct the expense when your card is charged. Think of it this way: You are borrowing from the credit card company or bank that issued the credit card. You take that money to make a purchase of a product or service. You now have an expense and a liability to a third party. When you pay off the liability, you do not get to take a deduction. Your deduction is when you pay for the expense. Depending on what you purchased, you may have to capitalize it.",
"title": ""
},
{
"docid": "221c2facfbbbc27225c5f7d9f28af460",
"text": "You don't say what country you live in. If it's the U.S., the IRS has very specific rules for business use of a car. See, for starters at least, http://www.irs.gov/publications/p463/ch04.html. The gist of it is: If you use the car 100% for business purposes, you NEVER use it to drive to the grocery store or to your friend's house, etc, then it is a deductible business expense. If you use a car party for business use and partly for personal use, than you can deduct the portion of the expense of the car that is for business use, but not the portion that is for personal use. So basically, if you use the car 75% for business purposes and 25% for personal use, you can deduct 75% of the cost and expenses. You can calculate the business use by, (a) Keeping careful records of how much you spent on gas, oil, repairs, etc, tracking the percentage of business use versus percentage of personal use, and then multiplying the cost by the percentage business use and that is the amount you can deduct; or (b) Use the standard mileage allowance, so many cents per mile, which changes every year. Note that the fact that you paid for the car from a business account has absolutely nothing to do with it. (If it did, then everyone could create a small business, open a business account, pay all their bills from there, and all their personal expenses would magically become business expenses.) Just by the way: If you are going to try to stretch the rules on your taxes, business use of a car or personal computer or expenses for a home office are the worst place to do it. The IRS knows that cars and computers are things that can easily be used for either personal or business purposes and so they keep a special eye out on these.",
"title": ""
}
] |
fiqa
|
549010c3ced5bbf797d3b74d7032ebd3
|
Using business check to pay at retail
|
[
{
"docid": "26380e834a3f492cf088ecc635f89079",
"text": "You can just buy the items personally and then submit an expense report to the company to get reimbursed. Keep all the receipts. Paying with a company check is also fine, but you might run into problems with stores not accepting checks.",
"title": ""
}
] |
[
{
"docid": "eb1508ea931882b83665fb6c454f4549",
"text": "For an individual its not automatic. One needs to ask the Bank, return the check. For Corporate Customer depending on how big the relationship is, many a times this is given as a service and there is an automatic return",
"title": ""
},
{
"docid": "51fb633f62e19dd495c87a1636237e4e",
"text": "\"To put a positive spin on the whole thing, maybe it's a small family shop, and having the check made out to \"\"cash\"\" means that your barber can hand it to someone else without the need to countersign. Or maybe his last name is \"\"Cash\"\" - there was a pretty famous singer who fit that description. Either way, it's not your place to nanny his finances.\"",
"title": ""
},
{
"docid": "06fd20bef0c8c90a7bd03c63416a8f8e",
"text": "They sure can. They are two different legal entities, so why not? You can even write a check to yourself, and then deposit it back into your own account. (Not very useful, but you can). The tax implications are a very different question, as this might constitute taking money out of the company. Edit: In some countries, when the business hires someone to work for them, it is forbidden by law to do that, unless he/she is explicitly allowed to do it in his contract. The business owner himself however, can always 'allow' himself to do that.",
"title": ""
},
{
"docid": "2776b9b713efad071e2df5b19058b5d5",
"text": "According to the TN DOL FAQ, the employer can choose how to pay wages. Other options include checks and cash. However, it is the employer's choice, not the employees, on how to pay the wages. In case of direct deposit, the employee can choose the bank at which to receive the money. Why would opening an account be unpractical is beyond me. You can also use services like AMEX Serve, NetSpend, or even Walmart's MoneyCard.",
"title": ""
},
{
"docid": "5abd0f2e06b8bb729315dc0610738cf5",
"text": "Generally it goes by when they receive the check, not when they cash the check. Though if the check was received prior to midnight on December 31st, but after the bank closes, they would probably let the tax payer decide to count it for the next year. Of course if the check is from person A to person B then the only issue is gift tax, or annual limit calculations. If it is company to person then income tax could be involved. The IRS calls this Constructive receipt Income Under the cash method, include in your gross income all items of income you actually or constructively receive during your tax year. If you receive property or services, you must include their fair market value in income. Example. On December 30, 2011, Mrs. Sycamore sent you a check for interior decorating services you provided to her. You received the check on January 2, 2012. You must include the amount of the check in income for 2012. Constructive receipt. You have constructive receipt of income when an amount is credited to your account or made available to you without restriction. You do not need to have possession of it. If you authorize someone to be your agent and receive income for you, you are treated as having received it when your agent received it. Example. Interest is credited to your bank account in December 2012. You do not withdraw it or enter it into your passbook until 2013. You must include it in your gross income for 2012. Delaying receipt of income. You cannot hold checks or postpone taking possession of similar property from one tax year to another to avoid paying tax on the income. You must report the income in the year the property is received or made available to you without restriction. Example. Frances Jones, a service contractor, was entitled to receive a $10,000 payment on a contract in December 2012. She was told in December that her payment was available. At her request, she was not paid until January 2013. She must include this payment in her 2012 income because it was constructively received in 2012. Checks. Receipt of a valid check by the end of the tax year is constructive receipt of income in that year, even if you cannot cash or deposit the check until the following year. Example. Dr. Redd received a check for $500 on December 31, 2012, from a patient. She could not deposit the check in her business account until January 2, 2013. She must include this fee in her income for 2012. In general it is best not to cut it close. If the check is to be counted as an January event it is best to send it in January. If it is to be December event it is best to send it early enough to be able to say with confidence that the check arrived at the destination before the end of the year.",
"title": ""
},
{
"docid": "20f1faf11e9fc76bc2216ed86c83a0e7",
"text": "\"I know this an old thread, but one that caught my interest as I just moved to the USA from Australia. As per the OP I had never written a check in my whole life, and upon arriving in the US I was surprised as to their proliference. In Australia pretty much all bills you receive can be paid in a number of ways: For small amounts between friends cash is probably used most, but for larger amounts direct transfer is popular. Your friend/landlord will give you their bank account number and BSB number, which identifies their bank, and then you transfer the money in. We don't have a SSN like some other countries. Cheques are still used by some however, esp by the older generations. Now that I'm in the US initially I had tried to set up direct transfer to pay my rent however the bank has a $1000 daily transfer limit. I contacted the bank to get this increased however I was informed that this limit applies to ALL accounts at the bank. I asked how do people pay their rents with this low limit and was told that most people used cheques. (This explains the strange look I got from my landlord when I asked for their bank account details so I could pay the rent!) I now have some bills to pay here and I use online banking. You enter the biller's name and address and then the bank actually prints off a cheque and posts it to the biller on your behalf! My first couple of pays here were also cheques, which were the first actual \"\"paychecks\"\" I had ever received.\"",
"title": ""
},
{
"docid": "166d9d8c192fb1848d9c77fa7c96305e",
"text": "\"There are benefits associated with a cash only business (the link states a few). However checks made out to \"\"cash\"\" don't reap those benefits listed. For anyone on SE to say your barber hides revenue from the IRS would just be speculation. With that said there are a great number of disadvantages for a cash only business. And from my experience, a business that goes out of their way to take cash only can be a little suspicious. Luckily you are not committing any crimes or fraud by paying her cash.\"",
"title": ""
},
{
"docid": "d0ba3a3f52735f9f8f5be47d45351fa7",
"text": "\"If you wish to lend them the money, make the check payable to the order of \"\"loan\"\", not directly to your son or daughter.\"",
"title": ""
},
{
"docid": "a7e80a491ca2b9845cca45332bc34640",
"text": "\"If you sign the check \"\"For Deposit Only\"\", the bank will put it in your account. You may need to set up a \"\"payable name\"\" on the account matching your DBA alias. However, having counted offerings for a church on several occasions, I know that banks simply have no choice but to be lax about the \"\"Pay to the Order Of\"\" line on checks. Say the church's \"\"legal name\"\" for which the operating funds account was opened is \"\"Saint Barnabas Episcopal Church of Red Bluff\"\". You'll get offering checks made out to \"\"Saint Barnabas\"\", \"\"Saint B's\"\", \"\"Episcopal Church of Red Bluff\"\", \"\"Red Bluff Episcopal\"\", \"\"Youth Group Fund\"\", \"\"Pastor Frank\"\", etc. The bank will take em all; just gotta stamp em with the endorsement for the church. Sometimes the money will be \"\"earmarked\"\" based on the payable line; any attempt to pay the pastor directly will go into his \"\"discretionary fund\"\", and anything payable to a specific subgroup of the church will go into their asset account line, but really all the cash goes directly to the same bank account anyway. For-profit operations are similar; an apartment complex may get checks payable to the apartment name, the management company name, even the landlord. I expect that your freelance work will be no different.\"",
"title": ""
},
{
"docid": "7ef100bc0d7e435fdc5fbb103eef4366",
"text": "\"It's a scam. The cashier's check will be forged. Craigslist has a warning about it here (item #3). What kind of payment do you think is not fakable? Or at least not likely to be used in scams? When on craigslist - deal only locally and in person. You can ask to see the person's ID if you're being paid by check When being paid by check, how can seeing his/her ID help? In case the check isn't cashable, I can find that person by keeping record of his/her ID? If you're paid by check, the payers details should be printed on the check. By checking the ID you can verify that the details match (name/address), so you can find the payer later. Of course the ID can be faked too, but there's so much you can do to protect yourself. You'll get better protection (including verified escrow service) by selling on eBay. Is being paid by cash the safest way currently, although cash can be faked too, but it is the least common thing that is faked currently? Do you recommend to first deposit the cash into a bank (so that let the bank verify if the cash is faked), before delivering the good? For Craigslist, use cash and meet locally. That rules out most scams as a seller. What payment methods do you think are relatively safe currently? Then getting checks must be the least favorite way of being paid. Do you think cash is better than money order or cashier order? You should only accept cash. If it is a large transaction, you can meet them at your bank, have them get cash, and you receive the cash from the bank. Back to the quoted scam, how will they later manipulate me? Are they interested in my stuffs on moving sale, or in my money? They will probably \"\"accidentally\"\" overpay you and ask for a refund of some portion of the overpayment. In that case you will be out the entire amount that you send back to them and possibly some fees from your bank for cashing a bad check.\"",
"title": ""
},
{
"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": "bd2b03ed3cd4d1e068eb182200ec4848",
"text": "\"What they are doing is wrong. The IRS and the state might not be happy with what they are doing. One thing you can ask for them to do is to give you a credit card for business and travel expenses. You will still have to submit receipts for expenses, but it will also make it clear to the IRS that these checks are not income. Keep the pay stubs for the year, or the pdf files if they don't give you a physical stub. Pay attention to the YTD numbers on each stub to make sure they aren't sneaking in the expenses as income. If they continue to do this, ask about ownership of the items purchased, since you will be paying the tax shouldn't you own it? You can in the future tell them \"\"I was going to buy X like the customer wanted, but I just bought a new washer at home and their wasn't enough room on the credit card. Maybe next month\"\"\"",
"title": ""
},
{
"docid": "3d585003ac8bc7e31dd82558e215bafb",
"text": "There is no bank that I know of offering such a feature and I'm not sure what the point of it would be (other than to annoy their customers). If you've been subjected to a fraudulent check your best bet is to either choose to write checks only to trusted parties and/or use your banks BillPay service (they usually issue checks on another account while transferring the money from your account). The drawbacks of your current plan, bounced legitimate checks and high maintenance nature, outweigh the potential benefits of catching a fraudulent check since you're not legally obligated to pay checks you haven't written.",
"title": ""
},
{
"docid": "8cb2a9643708b5505e3ebd3fc591d30f",
"text": "\"Technically it doesn't matter what size the check is. In fact, it doesn't even have to be written on paper. While writing it on a cow may not always fly, almost any object actually will. That said, more to the question asked - you can definitely use the smaller \"\"personal\"\"-sized checks for a business account. The larger checks formatted to the \"\"letter\"\" page size: if you cut it into three equal pieces with a tiny bit left for the binder holes - you'll get exactly three check-sized pieces. This is convenient for those printing checks, keeping carbon-copy records etc. Regarding the MICR line: I just checked my business check book, which is of a smaller \"\"personal\"\" size (that I got for free from the bank) - the check number is at the end.\"",
"title": ""
},
{
"docid": "f037e925896d678b10bbe59832cb7e56",
"text": "\"If you want to deposit checks or conduct business at a window, you should look at a local savings bank or credit union. Generally, you can find one that will offer \"\"free\"\" checking in exchange for direct deposit or a minimum balance. Some are totally free, but those banks pay zippo for interest. If you don't care about location, I would look at Charles Schwab Bank. I've been using them for a couple of years and have been really satisfied with them. They provide free checking, ATM fee reimbursement, free checks and pre-paid deposit envelopes. You also can easily move money between Schwab brokerage or savings accounts. Other brokers offer similar services as well.\"",
"title": ""
}
] |
fiqa
|
e05f28875cd91bf8ed8341ca37ada0be
|
Starting a side business slowly
|
[
{
"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": "aacf84abf0e15e48cd79c9cdb7a0e26c",
"text": "\"Yes. There are several downsides to this strategy: You aren't taking into account commissions. If you pay $5 each time you buy or sell a stock, you may greatly reduce or even eliminate any possible gains you would make from trading such small amounts. This next point sounds obvious, but remember that you pay a commission on every trade regardless of profit, so every trade you make that you make at a loss also costs you commissions. Even if you make trades that are profitable more often than not, if you make quite a few trades with small amounts like this, your commissions may eat away all of your profits. Commissions represent a fixed cost, so their effect on your gains decreases proportionally with the amount of money you place at risk in each trade. Since you're in the US, you're required to follow the SEC rules on pattern day trading. From that link, \"\"FINRA rules define a “pattern day trader” as any customer who executes four or more “day trades” within five business days, provided that the number of day trades represents more than six percent of the customer’s total trades in the margin account for that same five business day period.\"\" If you trip this rule, you'll be required to maintain $25,000 in a margin brokerage account. If you can't maintain the balance, your account will be locked. Don't forget about capital gains taxes. Since you're holding these securities for less than a year, your gains will be taxed at your ordinary income tax rates. You can deduct your capital losses too (assuming you don't repurchase the same security within 30 days, because in that case, the wash sale rule prevents you from deducting the loss), but it's important to think about gains and losses in real terms, not nominal terms. The story is different if you make these trades in a tax-sheltered account like an IRA, but the other problems still apply. You're implicitly assuming that the stock's prices are skewed in the positive direction. Remember that you have limit orders placed at the upper and lower bounds of the range, so if the stock price decreases before it increases, your limit order at the lower bound will be triggered and you'll trade at a loss. If you're hoping to make a profit through buying low and selling high, you want a stock that hits its upper bound before hitting the lower bound the majority of the time. Unless you have data analysis (not just your intuition or a pattern you've talked yourself into from looking at a chart) to back this up, you're essentially gambling that more often than not, the stock price will increase before it decreases. It's dangerous to use any strategy that you haven't backtested extensively. Find several months or years of historical data, either intra-day or daily data, depending on the time frame you're using to trade, and simulate your strategy exactly. This helps you determine the potential profitability of your strategy, and it also forces you to decide on a plan for precisely when you want to invest. Do you invest as soon as the stock trades in a range (which algorithms can determine far better than intuition)? It also helps you figure out how to manage your risk and how much loss you're willing to accept. For risk management, using limit orders is a start, but see my point above about positively skewed prices. Limit orders aren't enough. In general, if an active investment strategy seems like a \"\"no-brainer\"\" or too good to be true, it's probably not viable. In general, as a retail investor, it's foolish to assume that no one else has thought of your simple active strategy to make easy money. I can promise you that someone has thought of it. Trading firms have quantitative researchers that are paid to think of and implement trading strategies all the time. If it's viable at any scale, they'll probably already have utilized it and arbitraged away the potential for small traders to make significant gains. Trust me, you're not the first person who thought of using limit orders to make \"\"easy money\"\" off volatile stocks. The fact that you're asking here and doing research before implementing this strategy, however, means that you're on the right track. It's always wise to research a strategy extensively before deploying it in the wild. To answer the question in your title, since it could be interpreted a little differently than the body of the question: No, there's nothing wrong with investing in volatile stocks, indexes, etc. I certainly do, and I'm sure many others on this site do as well. It's not the investing that gets you into trouble and costs you a lot of money; it's the rapid buying and selling and attempting to time the market that proves costly, which is what you're doing when you implicitly bet that the distribution of the stock's prices is positively skewed. To address the commission fee problem, assuming a fee of $8 per trade ... and a minimum of $100 profit per sale Commissions aren't your only problem, and counting on $100 profit per sale is a significant assumption. Look at point #4 above. Through your use of limit orders, you're making the implicit assumption that, more often than not, the price will trigger your upper limit order before your lower limit order. Here's a simple example; let's assume you have limit orders placed at +2 and -2 of your purchase price, and that triggering the limit order at +2 earns you $100 profit, while triggering the limit order at -2 incurs a loss of $100. Assume your commission is $5 on each trade. If your upper limit order is triggered, you earn a profit of 100 - 10 = 90, then set up the same set of limit orders again. If your lower limit order is triggered this time, you incur a loss of 100 + 10 = 110, so your net gain is 90 - 110 = -20. This is a perfect example of why, when taking into account transaction costs, even strategies that at first glance seem profitable mathematically can actually fail. If you set up the same situation again and incur a loss again (100 + 10 = 110), you're now down -20 - 110 = -130. To make a profit, you need to make two profitable trades, without incurring further losses. This is why point #4 is so important. Whenever you trade, it's critical to completely understand the risk you're taking and the bet you're actually making, not just the bet you think you're making. Also, according to my \"\"algorithm\"\" a sale only takes place once the stock rises by 1 or 2 points; otherwise the stock is held until it does. Does this mean you've removed the lower limit order? If yes, then you expose yourself to downside risk. What if the stock has traded within a range, then suddenly starts declining because of bad earnings reports or systemic risks (to name a few)? If you haven't removed the lower limit order, then point #4 still stands. However, I never specified that the trades have to be done within the same day. Let the investor open up 5 brokerage accounts at 5 different firms (for safeguarding against being labeled a \"\"Pattern Day Trader\"\"). Each account may only hold 1 security at any time, for the span of 1 business week. How do you control how long the security is held? You're using limit orders, which will be triggered when the stock price hits a certain level, regardless of when that happens. Maybe that will happen within a week, or maybe it will happen within the same day. Once again, the bet you're actually making is different from the bet you think you're making. Can you provide some algorithms or methods that do work for generating some extra cash on the side, aside from purchasing S&P 500 type index funds and waiting? When I purchase index funds, it's not to generate extra liquid cash on the side. I don't invest nearly enough to be able to purchase an index fund and earn substantial dividends. I don't want to get into any specific strategies because I'm not in the business of making investment recommendations, and I don't want to start. Furthermore, I don't think explicit investment recommendations are welcome here (unless it's describing why something is a bad idea), and I agree with that policy. I will make a couple of points, however. Understand your goals. Are you investing for retirement or a shorter horizon, e.g. some side income? You seem to know this already, but I include it for future readers. If a strategy seems too good to be true, it probably is. Educate yourself before designing a strategy. Research fundamental analysis, different types of orders (e.g., so you fully understand that you don't have control over when limit orders are executed), different sectors of the market if that's where your interests lie, etc. Personally, I find some sectors fascinating, so researching them thoroughly allows me to make informed investment decisions as well as learn about something that interests me. Understand your limits. How much money are you willing to risk and possibly lose? Do you have a risk management strategy in place to prevent unexpected losses? What are the costs of the risk management itself? Backtest, backtest, backtest. Ideally your backtesting and simulating should be identical to actual market conditions and incorporate all transaction costs and a wide range of historical data. Get other opinions. Evaluate those opinions with the same critical eye as I and others have evaluated your proposed strategy.\"",
"title": ""
},
{
"docid": "bf6d612e979609c1cd11106e9f1d1353",
"text": "\"Rather than thinking of becoming a landlord as a passive \"\"investment\"\" (like a bank account or mutual fund), it may be useful to think of it as \"\"starting a small part-time business\"\". While certainly many people can and do start their own businesses, and there are many success stories, there are many cases where things don't work out quite as they hoped. I wouldn't call starting any new business \"\"low risk\"\", even one that isn't expected to be one's main full-time job, though some may be \"\"acceptable risk\"\" for your particular circumstances. But if you're going to start a part-time business, is there any particular reason you'd do so in real estate as opposed to some other activity? It sounds like you'd be completely new to real estate, so perhaps for your first business you're starting you'd want it to be something you're more familiar with. Or, if you do want to enter the real estate world (or any other new business), be sure to do a lot of research, come up with a business plan, and be prepared for the possibility of losing money as with any investment or new business.\"",
"title": ""
},
{
"docid": "2c7280ef2f9b1af1a1f051cf8bd8c9ac",
"text": "A good idea is try use your weekends to develop your business/plans at first. Most business startups don't boom overnight, it takes time to build. Dont quit your job, that is revenue you can build your business with. The most important thing is to have a sound business plan, not too ambitious, not too realistic.",
"title": ""
},
{
"docid": "5a97fec0eb191f632c8ff032120cc7e9",
"text": "I'm currently in process. I work full time for one big local company and side Hustle in my free time. U must have some income, so I belive this is good path. In future, when I could live from my own company I will quit my current job. But that means that you should work at least 14-16 h/day. It is hard but it will be worth one day. Make some product, find clients etc. Start small, find some co-founder(s) and just start.",
"title": ""
},
{
"docid": "043e8b96e188a71c3356cd717f395661",
"text": "\"I worked for a plumbing/heating business in a management position for the past 3 years and I learned a few things: You need a web presence STAT. Yellow page ads while effective at reaching older clients are EXPENSIVE and effective web marketing can be created at a fraction of the cost. Social media is an AMAZING tool use it. Flat rate pricing. Quote your prices before you get the work and get a signature before you start. Make sure it is very very clear that you expect to be paid on completion. Be known for cleanliness. Wealthy clients WILL spread your name around if you take the time and care to respect their property. Carpet runners, boot covers and cleaning supplies will pay off. Pick a company name and get a PROFESSIONAL graphic designer to make your logo. Plaster it on all sides of your vehicle and you now have a mobile billboard. Find something to specialize in.... for example boiler repair is a dying art. If you can be \"\"The boiler guy\"\" you will have lots of yearly maintenance work. Speaking of which offer yearly maintenance contracts as a way to get back into the house and develop a business relationship. Get some sales training. You can be and effective salesman and still be honest it is just a matter of understanding the customer. Nexstar might be something worth looking into. But the membership fee is not cheap. Setup some sort of inventory tracking system NOW. Have it in place so when he wants to grow it will be easy. The company I worked for while not doing all of the things I mentioned here still managed to do 7 million a year in revenue. PM me if you want to know anything else.\"",
"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": "543e117902d82e0eb8e27fd78b200947",
"text": "\"I can pretty much guarantee you that the vast majority of new small companies will NOT grow to have 50 workers (they probably won't even have 49 workers, or 48, or even 47). Once they approach 40, other \"\"solutions\"\" -- even beyond the \"\"part time employees\"\" suggested by the author (a thing I would expect will be \"\"addressed\"\" by a change in the detailed regulations -- the Federal government will attempt to stop this obvious loophole by redefining what constitutes a \"\"full time employee\"\") -- MANY other solutions will be executed (dividing the company into two or three distinct entities with slightly different ownership {for example wife owns one location, husband another, etc}, plus the obvious expanded use of temp agencies, contract and/or subcontract workers, subbing work {especially generic administrative work} out to other firms, etc). Any and all of those will probably cost far LESS than $40k a year (which is probably a woefully underestimated number).\"",
"title": ""
},
{
"docid": "e7ce461be6d4661f109b01f01956fe10",
"text": "The doing of it, the actual floral design part, is a small part of what that business is going to need. The needs of a small business are huge and varied. For instance, somebody will need to do the Quickbooks, handle the register and cash, handle clients and follow-up. Do payroll even if it is just the two of you. Handle insurance. Place orders for inventory, develop relationships with suppliers to keep costs down. Do marketing. Calculate profitability and use that to determine pricing, specials, and discounting on bulk orders. Clean the shop and enable your flower arranger to work effeciently. Need employees? Then get ready for applications, interviews, onboarding, reviews, coaching, and firing. Create checklists and best practices. The Small Business Association is your friend. It's a government program that is already paid for by you, and the employees are generally successful entrepreneurs that just don't feel like doing the 80 hours a week anymore. They will be so happy to mentor you and can really assist if you are looking for a loan to start up. Small business isn't for everybody. I think most people would rather work 40 hours a week for somebody else. If none of this scares you off, you might have what it takes. Starting and running a business is incredibly rewarding for me emotionally and financially and I wouldn't trade it for any job on the planet.",
"title": ""
},
{
"docid": "05e5d1a20d3484b1fab76875ae508a79",
"text": "In now days beginning a business, website optimization daddy can enable you to begin a web business, to do you know the intricate details of web crawlers and have aptitudes in stages like Google Analytics? The proprietors of a ton of littler organizations don't understand the amount of an effect website, streamlining SEO can have on their business. We teach those entrepreneurs on the energy of starting an internet business to help change their sites into a more SEO-accommodating property. We have master abilities to the stage proprietors how to peruse and utilize their examination information the correct way, and how to legitimately utilize watchwords and structure substance to get more movement.",
"title": ""
},
{
"docid": "65a6928ffa6063ef95e3639adfb57bbc",
"text": "Yeah, not all small businesses are barely scraping by. On another note, I know in some places restaurants, regulations and laws have been introduced which lowers minimum wage for tip earners (like servers). It's an interesting thought but I'm not sure how well it works.",
"title": ""
},
{
"docid": "7f75872c71535e7c7f0a90f3b86887dc",
"text": "For this type of business a sole tradership would seem appropriate. You might then want to register as a limited company at a later date if you were growing significantly, taking on premises, seeking debt etc, as that would then shield you from liability.",
"title": ""
},
{
"docid": "56941f61022dfec7fea49b5f306ff12e",
"text": "\"You can certainly try to do this, but it's risky and very expensive. Consider a simplified example. You buy 1000 shares of ABC at $1.00 each, with the intention of selling them all when the price reaches $1.01. Rinse and repeat, right? You might think the example above will net you a tidy $10 profit. But you have to factor in trade commissions. Most brokerages are going to charge you per trade. Fidelity for example, want $4.95 per trade; that's for both the buying and the selling. So your 1000 shares actually cost you $1004.95, and then when you sell them for $1.01 each, they take their $4.95 fee again, leaving you with a measly $1.10 in profit. Meanwhile, your entire $1000 stake was at risk of never making ANY profit - you may have been unlucky enough to buy at the stock's peak price before a slow (or even fast) decline towards eventual bankruptcy. The other problem with this is that you need a stock that is both stable and volatile at the same time. You need the volatility to ensure the price keeps swinging between your buy and sell thresholds, over and over again. You need stability to ensure it doesn't move well away from those thresholds altogether. If it doesn't have this weird stable-volatility thing, then you are shooting yourself in the foot by not holding the stock for longer: why sell for $1.01 if it goes up to $1.10 ten minutes later? Why buy for $1.00 when it keeps dropping to $0.95 ten minutes later? Your strategy means you are always taking the smallest possible profit, for the same amount of risk. Another method might be to only trade each stock once, and hope that you never pick a loser. Perhaps look for something that has been steadily climbing in price, buy, make your tiny profit, then move on to the next company. However you still have the risk of buying something at it's peak price and being in for an awfully long wait before you can cash out (if ever). And if all that wasn't enough to put you off, brokerages have special rules for \"\"frequent traders\"\" that just make it all the more complicated. Not worth the hassle IMO.\"",
"title": ""
},
{
"docid": "f69a1160d0806abe01e9fa3064037448",
"text": "Based on the additional comment you gave, I would recommend that you keep the capital from the businesses separate as much as possible. It sounds like you won't get into any trouble legally if you make 'loans' or transfers of capital from one business into the other. But I would suggest that you keep detailed records of any transfers that you do make. The reason why is that in any business, it is important to know the economics of how your business makes money. If you find yourself making transfers repeatedly, then your business model may be bad. Even if your transfers are only to deal with the cost of poor customers, it could still mean that your business model needs to be adjusted. But if it's a question of the timing of cash flows, then there's really nothing wrong with taking some of the money from your successful pants operation and building up more working capital in your stationery shop.",
"title": ""
},
{
"docid": "0559a5f8e99aaed4115bf99f13583c7b",
"text": "http://www.legalzoom.com/business-management/starting-your-business/turn-your-calling Answering this, but I expect an expert to give an answer with some insight too There are many more steps, but not having done them personally I suggest you read the legalzoom.com site.",
"title": ""
},
{
"docid": "83d700ae94fb9917fc1904ecdd1d0877",
"text": "\"If you're really interested in the long-term success of your business, and you can get by in your personal finances without taking anything from the business for the time being, then don't. There is no \"\"legal requirement\"\" to pay yourself a prevailing wage if doing so would put the company out of business. it is common for a company's principals not to draw wages from the business until it is viable enough to sustain payroll. I was in that situation when I first began my business, so the notion that somehow I'm violating a law by being fiscally responsible for my own company is nonsense. Be wise with your new business. You didn't state why you feel the need to take some kind of payment out, but this can be a crucial mistake if it imperils your business or if that money could be better spent on marketing or some other areas which improve revenues. You can always create a salary deferral agreement between yourself and your own company which basically states that the company owes you wages but you are, for the time being, willing to defer accepting them until such time that the company has sufficient revenues to pay you. That's one solution, but the simplest answer is, if you don't need the money you're thinking of paying yourself, don't do it. Let that money work for you in the business so that it pays off better in the long run. Good luck!\"",
"title": ""
}
] |
fiqa
|
5fda645cfb5b34cbdf21ca6ed1aceb4b
|
Why is “cheque cashing” a legitimate business?
|
[
{
"docid": "25e2790f0097e1553fcb935da1c4396a",
"text": "\"This answer is based on my understanding of the US banking system. We have check cashing businesses here too, which are just like what you describe, except for the spelling :-) Let's consider what \"\"cash it for free at the bank\"\" really means, and why it might not be an option for everyone. One key issue is \"\"which bank?\"\" As an example, suppose that I have an account at ABC Bank. I take out my checkbook for that account and write you a check for $500. (Terminology: In this case, I am the drawer or maker of the check, ABC Bank is the drawee bank, and you, user54609, are the payee. Disclaimer: \"\"You\"\" here is meant as a generic pronoun and I do not mean to insinuate that anything here actually applies to you personally.) There are two common things you might do with the check: If you have an account at some bank, say XYZ Bank, you might take the check to XYZ Bank and deposit it in your account. (You might be able to do this through an ATM, mobile app, or by mail, instead of in person.) XYZ Bank does not have a way to verify with certainty that the check is valid (e.g. they don't know what my signature looks like, nor whether I actually have $500 in my account at ABC), so they send it to ABC Bank, which verifies the check and transfers $500 to XYZ. (This is usually done through a central clearinghouse, such as the Federal Reserve in the US, and in some cases an image of the check may be sent electronically, instead of the physical check.) This process takes some time, so XYZ may not make the $500 available to you right away - there may be a hold period before you can withdraw that $500 from your account. You could take the check to ABC Bank, in person. They will verify on the spot that the check is valid and that you are in fact user54609. If everything looks good, they will hand you $500 in cash (perhaps subtracting a fee of a few dollars). Now we can see some possible problems with each of these approaches. For 1: Maybe you don't have a bank account at all. There are many possible reasons: You don't have enough money to meet the minimum balance that a bank account would require. You used to have an account, but you overdrew or otherwise misused an account, so the bank closed it. They then entered you in a registry such as ChexSystems which ensures that other banks know about this, and so no other bank will open a new account for you. You immigrated to the country illegally and cannot get the documents (driver's license, social security number, etc) that a bank normally requires to open an account. You simply don't like the idea of keeping your money in a bank. Maybe you do have an account at XYZ Bank, but it's in another town. You need the cash today, so you can't use mail or a mobile app, and third-party ATMs usually don't accept deposits. Maybe you need to spend the money today, and XYZ Bank would place a hold. For 2: ABC Bank may not have a branch you can conveniently visit. Maybe the nearest one is a long way away, in another city or across the country. Or maybe ABC is an online bank with no physical branches at all. Maybe it's in the same city, but you don't have transportation to get you there. Or maybe it's simply less convenient than the check-cashing business on the corner. Maybe it is after usual banking hours, or a weekend, and ABC Bank is closed, but you need cash now. In any of these situations, \"\"cash it at the bank\"\" might not be a viable option, and so you might reasonably turn to a check cashing business instead. As you say, you will pay a much higher fee there, but maybe it is worth it to you, or you just don't have any choice. Another possibility, of course, is that you are poorly educated about the banking system, and you don't really understand that 1 and 2 are options, or how to go about them. But there's this storefront on the corner that says \"\"Check Cashing\"\", so this seems like a low-stress, uncomplicated way to exchange this piece of paper for money. As such, there certainly are people who legitimately might want to cash a valid check at a check-cashing business. Check cashing business do of course take some risk of fraud, since they can't necessarily verify the check. There are sometimes steps they can take to minimize this risk. Sometimes they can call ABC Bank and check that I have sufficient money in my account. Maybe they'll only accept certain kinds of checks, such as payroll checks from well-known companies for which you can produce a matching pay stub. And they can demand identification from you (perhaps allowing more flexible options than a bank), which helps ensure that you are the payee, and would make you easier to track down if you did commit fraud. But they will probably lose some money this way, so they will have to make their fees high enough to cover those losses.\"",
"title": ""
},
{
"docid": "dfd0d06afe8c24b08155be3de6a58234",
"text": "\"In my experience (in the US), the main draw of check-cashing businesses (like \"\"CheckN2Cash\"\" is that they will hold your check for a certain period of time. This is also known as a \"\"payday loan\"\". Rather than bringing them a check someone else has written you, you write them a check yourself, postdated, and they pay you the amount on the check less their fees, and agree not to cash the check until a future date. So if you don't have the money right now but you need it before your next payday, you visit a check-cashing business and get the money, and it'll be withdrawn from your account after your next paycheck.\"",
"title": ""
},
{
"docid": "f11642ee9a141532e6f6837656985f1b",
"text": "\"How does this get any business? You'd be surprised on how much profit these type of businesses can bring in and the number of people who cash their checks this way. They make profit off people who want their checks cashed ASAP. Usually cheques written to \"\"cash\"\" or something can just be cashed for free at the bank right? Yes, most banks cash your check for free. Some may not cash it right away and may require a few days to process. Some charge a small fee if the check is not from the same bank. Some personal checks may not even be processed the same day as well. Wouldn't the only cheques that people would cash at these places be bad cheques? Yes and no. Yes because it may be \"\"easier\"\" to try to cash a fraudulent check at these type of check cashing places. However, some places may only cash business checks and require your ID in which they write down the information in order to possibly track you down in the future. Also some places only cash a check to a certain amount. And wouldn't this mean that the business will lose a lot of money since it pays out cash but then has the cheque bounce? Of course the business loses money if the check bounces or is fake. That is why they try to minimize their losses with certain requirements that needs to met before the check can be cashed. Who uses these services exactly? Just about anyone who needs their check cashed ASAP or like ChrisW stated in his answer is trying to keep their money on the low. There is a demand for this service even though it may seem shady to you.\"",
"title": ""
}
] |
[
{
"docid": "7d886d70fde7e58daf8a86ac00e1884c",
"text": "Nowadays, all checks you write will not be send to your bank anymore, but instead the bank where they get deposited does an ACH from your bank. That implies that not allowing this to happen, your bank would not be able to honor any checks you wrote (without enforcing paper check delivery in the mail, but the Check21 bill does not allow such enforcing anymore). Basically, your bank would not be able to do business with anyone. The obvious conclusion is that no such bank exists.",
"title": ""
},
{
"docid": "8b95002c06839baa44fe81fe396190b7",
"text": "Some banks give you an indemnity form that will allow them to clear the payment available in a different name. This is usually in case the name on the cheque is slightly misspelled. For example, color (American) could be spelt as colour (British). In India for example, names can often be spelt in multiple ways. the indeminity form is common place.",
"title": ""
},
{
"docid": "2e7d825afdea7026e94c625f7a88ae03",
"text": "Is it standard for a bank to need the cheque to cancel it? (what about if it was intercepted, surely you can cancel before you're plundered?) Generally it makes life easy for the Bank. They can physically see the cheque and are assured that it has not been cashed. Bank can put a hold / stop on the cheque. However given today's Banking it is complex with multiple systems and specially with international clearing taking months ... the cheque could have been cashed and the Bank that issued may only get to know about it month later. Is there any way to bypass this? Best is for your friend to correspond in writing. The rejection email from your Bank should also go into the communication. And follow-ups every 15 days all in writing. Generally after tons of follow-up Banks would pay it off.",
"title": ""
},
{
"docid": "166d9d8c192fb1848d9c77fa7c96305e",
"text": "\"There are benefits associated with a cash only business (the link states a few). However checks made out to \"\"cash\"\" don't reap those benefits listed. For anyone on SE to say your barber hides revenue from the IRS would just be speculation. With that said there are a great number of disadvantages for a cash only business. And from my experience, a business that goes out of their way to take cash only can be a little suspicious. Luckily you are not committing any crimes or fraud by paying her cash.\"",
"title": ""
},
{
"docid": "db9727bc51b56367e0c52dcca1121c14",
"text": "\"When banks would return the actual physical cheque, at least you had some printing / writing from the other bank on it, as some type of not-easily-Photoshopped proof. Now many (most?) banks don't return the actual cheques anyway, just an image of it - sometimes a low quality shrunken B&W photocopy-like image too. You'd have to check with a lawyer or court in your area, but I suspect any photocopy or image, as well as a written or carbon-copy duplicate, would not be good enough proof for a law court, since they could all be easily re-written or Photoshopped. So I don't think there's a real upside anyway. Only an official bank statement saying that the name/people written actually cashed the cheque might be \"\"good evidence\"\" (I'm having doubts that the bank's own low quality \"\"image\"\" would even qualify, unless it's verified as coming directly from the bank somehow). I'd agree with Nate (+1) that a big downside could be identity theft, either online or alongside phone loss/theft.\"",
"title": ""
},
{
"docid": "a161cd359abe82b21405c3261005f3c4",
"text": "\"This may vary some by the state, but the general facts are consistent broadly. The elements of check fraud typically are: This means that not only do you have to have presented a check that is returned for insufficient funds, but you must have known at the time that it wouldn't be honored. It must typically also be given for present consideration, which is why the comments to the other answer correctly note that the post-dated check \"\"scam\"\" cooked up by the payday loan folks shouldn't generally be relevant under these laws; on the same site, they note the cases that are clearly not present consideration: So if I give you a check for $50 and it's returned for NSF because I screwed up my bank accounts and had all my money in savings, that's probably not fraud. But if I decide I really want a Tesla X and give Tesla Motors a check for $95,000, knowing I don't have $95,000, that's fraud. How the prosecutor proves knowledge is probably beyond the scope of Personal Finance and Money Stack Exchange, though I imagine it tends to commonly be done so by showing the person doesn't normally have that much money in their account.\"",
"title": ""
},
{
"docid": "1884d09a6e7e4786e5ba73997559dc1b",
"text": "In the united states, they may request a check written by the bank to the other party. I have had to make large payments for home settlements, or buying a car. If the transaction was over a specified limit, they wanted a cashiers check. They wanted to make sure it wouldn't bounce. I have had companies rebate me money, and say the maximum value of the check was some small value. I guess that was to prevent people from altering the check. One thing that has happened to me is that a large check I wanted to deposit was held for a few extra days to make sure it cleared. I wouldn't have access to the funds until the deadline passed.",
"title": ""
},
{
"docid": "4e728f67b84c940c2e23ee8334471085",
"text": "Because it makes money for all parties, and because the general public is reluctant to any change. Who should have an interest to change that? People. And they have no say in it. You can actually do a lot without paper checks nowadays (I only use one per year for car taxes, as they do not accept anything else), but many people shake their heads about even online banking and would never trust it.",
"title": ""
},
{
"docid": "0dbbb1b166003f7c3c8ec4e3dfc80c2b",
"text": "\"Thirtyfive years ago, when buying checks through one's bank was the sole option, if you got a \"\"business\"\" account with a bank, you had to buy \"\"business\"\" checks. One difference between a \"\"business\"\" account and a personal account was that on the business account, the incorporated or unincorporated company (say Simply Wonderful Apps) had the option of changing from John Doe to Richard Roe as the Treasurer of Simply Wonderful Apps and the person signing the checks, whereas a personal account in John Doe's name could not be changed to allow Richard Roe signature authority over the account. For a self-employed person doing business as Simply Wonderful Apps, a personal checking account would do just as well, since the need to change the person responsible for signing checks might never arise. It was, of course, important to have a separate checking account for the business because it made book-keeping simpler and also separated business expenses deductible on Schedule C from personal expenses. But it was not necessary to have a business account or business checks to run a small business. In addition to the various advantages described in other answers, one advantage that I found for larger checks is that various money management programs could do things like print an address below the name on (computer-printable) checks so that after folding, the check could be put into a window envelope and mailed directly. For the one check to a page format, the programs could print additional information on the blank area below the check (e.g. explanations about the check, company logo etc. So, it was convenient if one had to write several checks each month. But if outgoing checks are infrequent and extra security is not much of an issue, there is less reason to spend a lot extra on business style checks rather than the personal style checks.\"",
"title": ""
},
{
"docid": "91c1e5a7cf791b995eb94817024b8a20",
"text": "\"It's possible to cash cheques by post. When I did this, it involved filling out a \"\"paying-in slip\"\" (I had a book of these provided by the bank) and posting the cheque together with the slip to an address provided by the bank. You could also bring the paying-in slip and the cheque to a branch and deposit them there, and it wasn't necessary that you were the account holder, just that the details on the slip matched the account you were paying into. I Googled \"\"paying-in slip\"\" and found the instructions for HSBC as an example: Paying-In Slips. It explicitly mentions that you don't need to be the account holder to do this, and moreover there are even blank slips in the branch, which you just need to fill in with the correct account details. I think the procedure is much the same for other banks, but presumably you could check the relevant bank's website for specific guidance.\"",
"title": ""
},
{
"docid": "a75cac77f825c90e839d4f2fc1cf9ee4",
"text": "It doesn't make rational sense, if you think the goal of having money is to have more money. On the other hand, imagine you are someone for whom the goal of having money is to feel powerful, successful, and to be able to tell the world in no uncertain terms to fuck itself. Imagine on top of that, you already have enough money that _your money alone_ is earning you enough to keep you in the good life, and will likely continue to do so for a long time. In that position, being able to hold a cheque for $300m and _not_ cash it would be the ultimate validation of all the things you got rich for in the first place.",
"title": ""
},
{
"docid": "71dd227a1b8cfb5e02657bcf1c74a81b",
"text": "This is so very much a scam. The accepted answer already tells you the basics of it. In addition to the cheque being fake, there is also the possibility that the cheque is a legitimate cheque but has been stolen (or swindled off) from somebody else. In that case, the delay with which the cashing of the cheque will blow up can be considerably longer than the accepted answer states since it depends on the other victim noticing and reporting the fraudulent transfer. The end result is the same: you are not going to be allowed to keep the money. Report this to both your sister's bank as well as her local police. Nothing good can come off this.",
"title": ""
},
{
"docid": "adecf436eb624e96b15680ef74eab0f2",
"text": "As Pete B says, something is not adding up. If your story is correct you should still have the legitimate check from your employer. If that is the case, your solution is simple. You If you do not have the good cheque then you are in deep trouble - because then either you didn't have it (in which case you have been lying to us) or you cashed it and spent the money (which means you knew that you had given the bad cheque to the liquor store). Either of those mean you have been deliberately perpetrating a fraud. As for the consequences - be aware that passing a bad cheque is a crime, and if the store reports it as such, it is not unlikely that the police will want to investigate. If they decide you did this deliberately you could be arrested, and you might well end up in jail. We will do you the favour of assuming that you still have the good cheque, and option 1 is possible.",
"title": ""
},
{
"docid": "62b3abd6bf7c68cf869c27668c3dd32d",
"text": "Rational reason. They like this method of paying. There is a delay between writing the check and having the money removed from the account. Their checkbook makes a carbon copy of the check, so they can update their balance easier. They can leave the store and update their checkbook register, or the spreadsheet or their Quicken or budget application data. They don't have to try and remember the amount, store name or date.",
"title": ""
},
{
"docid": "1dfdc404c22a79e7c6e79d474694d9a3",
"text": "Current account offers a lot of benefits for sole proprietors. Think of it like bank account for a company. The bank provides a host of facilities for the company. A sole proprietor does not have enough value as that of a company for a bank but needs similar services. Thus Indian banks offer a toned down version of the account offered to a company. Current account offer very good overdraft ( withdrawing money even if balance is zero). This feature is very useful as business cycles and payment schedules can be different for each supplier/customer the sole proprietor does business with. Imagine the sole proprietor account has balance of zero on day 0. customer X made payment by cheque on day 1. Cheques will get credited only on Day 3 (Assume Day 2 is a national holiday or weekend). Sole proprietor gave a cheque to his supplier on day 0. The supplier deposited the cheque on Day 0 and the sole proprietor's bank will debit the the proprietor's account on day 1. As customer's cheque will get credited only day 3, the overdraft facility will let the proprietor borrow from the bank Interestingly, current accounts were offered long before Indian banks started offering customized accounts to corporate customers. The payment schedule mentioned in my example is based on a clearing system > 10 years ago. Systems have become much simpler now but banks have always managed to offer something significantly extra on lines similar to my example above to proprietor over a savings bank account",
"title": ""
}
] |
fiqa
|
4be24be8a515e06f5115ccfbbb7d89f0
|
Is business the only way to become a millionaire?
|
[
{
"docid": "fc961d78af0c6dc47b70cb7aedb508bc",
"text": "\"Not at all. The Millionaire Next Door offers a book full of anecdotes on couples that earned money and saved their way to being millionaires. I believe about 1/3 or so had businesses, but the rest were employed and simply saved wisely. $3860/yr saved for 40 years at 8% will return $1M. Adjust the numbers to hit a million sooner or reach a higher goal. The Author might be accused of survey bias. This is the phenomenon of studying the final results without looking at the pool of people years prior. Little Adv' is correct that while 1/3 of millionaires may have gotten that way by starting a business, that says nothing about how many businesses need to start to find the one millionaire that resulted. I view the book more as a lesson of \"\"spend beneath your means\"\" and focus on his anecdotes of the dual income couples who saved their way to this status. If you are in no rush, get this book from your library and spend the few hours to read it. In response to my Friend Dilip's comment, MoneyChimp offers a good look at compound growth (for the S&P) over time. The 40 years ending 2012, which obviously include the 'lost decade,' returned a CAGR of 9.78%. Not to be confused with the average 11.43%. When I pull the numbers for each year's return and apply an annual $3860 deposit, the 40 years ends with $2.2M. A 1% fee, or 1% lower return resulted in $1.6M. If 8% isn't conservative, of course you can run the numbers you wish. The 40 years contained both a lost decade and two great ones. Will the 3 decades post-lost average to get the Quad-Decade period to 8%+? I don't know.\"",
"title": ""
},
{
"docid": "feb4a846685b398f7f94f265a827fdde",
"text": "That's actually a pretty good way to get bankrupt quick. You can get rich quick through lottery, gambling, mere saving or investing wisely, or marrying someone from the Kennedy or Bush clans. Starting a business is one of the ways to become a millionaire, but definitely not the only one.",
"title": ""
}
] |
[
{
"docid": "6ceab9657a3d0586b638a48107e7f043",
"text": "\"It is difficult to become a millionaire in the short term (a few years) working at a 9-to-5 job, unless you get lucky (win the lottery, inheritance, gambling at a casino, etc). However, if you max out your employer's Retirement Plan (401k, 403b) for the next 30 years, and you average a 5% rate of return on your investment, you will reach millionaire status. Many people would consider this \"\"easy\"\" and \"\"automatic\"\". Of course, this assumes you are able to max our your retirement savings at the start of your career, and keep it going. The idea is that if you get in the habit of saving early in your career and live modestly, it becomes an automatic thing. Unfortunately, the value of $1 million after 30 years of inflation will be eroded somewhat. (Sorry.) If you don't want to wait 30 years, then you need to look at a different strategy. Work harder or take risks. Some options:\"",
"title": ""
},
{
"docid": "8031cefc62322a4ac0c426c8089c9342",
"text": "If you could find a breakdown, I suspect that it would show not just that they are self employed but own their own company. There are many people that are self employed, many of them make a good living at it, but are not millionaires. My neighbour the plumber is a perfect example of this sort of self-employed and comfortable but not rich person. The key to wealth growth is to own (a significant part of) a company. It one way to leverage a smaller amount of money to something much larger. Plough your profits back in to the company to grow it, pay yourself reasonably for some time as the company grows. After it is some size, you can afford to pay yourself more of the profits, if not sell it as a going concern to someone else. One last thought - I am assuming that your book is claiming that they made their money through self-employment, instead of choosing to become self employed after striking rich somewhere. If I were to win the lottery, I might then become a self-employed something, but in that case it was not my self-employment that got me there.",
"title": ""
},
{
"docid": "e32750c2a6673fe9611e33a247683f10",
"text": "There is no 1 2 3 to being successful. Everyone's story is different but generally there is some composition of connections, networking, dedication and opportunity involved. Anyone offering easy steps to being financially successful is a scammer and anyone willing to buy into it is a chump. Go out and build a network, learn and offer product/service that has demand is the most general you can be.",
"title": ""
},
{
"docid": "8dbf1e3859ea0f37d09621daca437b12",
"text": "\"I can name far more non-real estate millionaires than those who are. That statistic isn't only not valid, it's not even close. Update: The correct quote is \"\"90% of all Millionaires become so through owning Real Estate\"\" and it's attributed to Andrew Carnegie. Given that he was born in 1835, I can imagine that his statement was true at he time, but not today.\"",
"title": ""
},
{
"docid": "96387f55bb095db0193bdbe95e7499a8",
"text": "\"The \"\"coin flip\"\" argument made in the article is absurd. My old boss had a saying, \"\"the harder I work, the luckier I get.\"\" He came from nothing, worked maniacally to become an Olympian, and later in life became a multi-millionaire. This is a common story among self-made people. I DO think that the rich have significant advantages: education, contact networks, access to startup capital, etc. These are very helpful, but don't assure success. Their lack is not insurmountable by the ambitious. I also think those advantages have expanded in recent years. Monetary policy has resulted in a large pool of investable funds being made available to to the financial sector, who earn high incomes with rent-seeking tactics.\"",
"title": ""
},
{
"docid": "9752468477b80a382ab4d26802656041",
"text": "Stay in school, learn everything you can, and spend as little money as possible. And realize that the chances of you dropping out and becoming a millionaire are much lower than the chances of you staying in school and becoming a millionaire. You're unlikely to be a good investor if you make bets with negative expected payoffs.",
"title": ""
},
{
"docid": "55bfc7c29e7dcdd310cf7e7ef83a0a2a",
"text": "Think about Wall Street. It's the most highly paid occupation in the world and it's nothing but a casino. I don't think the article is saying that success is only luck, or that there aren't successes built far more on genius than luck, but that luck is the main factor in the majority of cases of great wealth.",
"title": ""
},
{
"docid": "cd0b25899dfe8a0d7965310d6cfc769b",
"text": "Playing the markets is simple...always look for the sucker in the room and outsmart him. Of course if you can't tell who that sucker is it's probably you. If the strategy you described could make you rich, cnbc staff would all be billionaires. There are no shortcuts, do your research and decide on a strategy then stick to it in all weather or until you find a better one.",
"title": ""
},
{
"docid": "86ab87896262194cc99c45974a9aa070",
"text": "Well, I'm sorry that you're so thin-skinned. Here's a simple logical relation that I think absolutely holds true: hard work is neither necessary nor sufficient for success. It's certainly to be valued, but not as a form of cult worship. There are so many people who are smarter, more tenacious and work harder than anyone you've ever known -- and they were cut down by malaria, murder, or a god damned piano falling on their heads. Them are the breaks. For every billionaire/famous person out there, there're at least 100 also-rans with analogous talent and prospects (at one point). Chance rules us all, and it takes NOTHING away from the hard-working to admit that.",
"title": ""
},
{
"docid": "cf436e92c85791cdbc4cce4ca62c946d",
"text": "\"I think there's a measure of confirmation bias here. If you talk to somebody that started a successful business and got a million out of it, he'd say \"\"it's easy, just do this and that, like I did\"\". If you consider this as isolated incident, you would ignore thousands of others that did exactly the same and still struggle to break even, or are earning much less, or just went broke and moved on long time ago. You will almost never hear about these as books titled \"\"How I tried to start a business and failed\"\" sell much worse than success stories. So I do not think there's a guaranteed easy way - otherwise we'd have much more millionaires than we do now :) However, it does not mean any of those ways is not worth trying - whatever failure rate there is, it's less than 100% failure rate of not trying anything. You have to choose what fits your abilities and personality best - frugality, risk, inventiveness? Then hope you get as lucky as those \"\"it's easy\"\" people are, I guess.\"",
"title": ""
},
{
"docid": "830c22493df84f489ab96bc12292586f",
"text": "Million Dollar Marketing Machine is a top tier business venture that offers the new business owner the opportunity to make large sums of money earning money in sums greater than $500 per transaction. The financial transactions can be as high as $12,000. Each business owner collects their own money and they have the opportunity to have their own websites set up by the company of Million Dollar Marketing Machine. Previously known as Million Dollar Marketing Formula. Affiliation to the Pizza Box Business.",
"title": ""
},
{
"docid": "755734d3e74f8d0f325e9cc3619f9836",
"text": "I disagree that it is a silly way to do business. I think many industries are actually moving in the direction of MLM. The whole idea with a successful MLM like amway is that they spend no money on advertising. Did you know most companies spend about a third of their revenue back into advertising? Amway instead pays back that money as a bonus to their distributors. I can't remember which year off the top of my head but a couple years ago amway paid back over 4 billion dollars in bonus to their people. Now look at Uber, they are kind of cutting out the middle man also. Interesting right?",
"title": ""
},
{
"docid": "021516207d5c08333ad713b6cfa33be8",
"text": "Just to punch it in, my friend owns bars/restaurants and is a multi millionaire at the age of 29. His career choice wasn't corporate ladder, but entrepreneur. I'm investing his wealth and he is giving me a generous deal, I'm starting my own investment firm and having him as a client is the only client I need to be potentially a millionaire as well too. Don't pigeonhole yourself like everyone else does, but also know what you are capable of. Some people just aren't made to be their own boss as much as they say they could so it takes a bit of swallowing your pride and moving along to your best pathway. I could no way ever work for someone else so I swallowed my pride in a way and went my own path by saying bye to the corporate world. Some people think this is the ultimate goal, but I would relinquish potentially moving up that ladder and having that sort of prestige etc.",
"title": ""
},
{
"docid": "03fbd56cba1fc579188b5bc0c78a0e81",
"text": "Robert Kiyosaki repeatedly stressed that starting your own business is risk free and the easiest way to get rich, yet he's never done it - and has actually failed in business 3 times. He won't release his real estate investment history or his stock market investments. After failing many times he had no money until he joined network marketing groups to sell these books, he has made his money from his courses and books and has probably lost money from actual investments - I say this because most of his property investments were bought when market prices were very high. He's also stated that he essentially speculates on stock prices, when his broker phones him with the idea that a stock is about to go up he will shift lots of money into those stocks. If you'd like to read more, this exposes everything about him: [http://www.johntreed.com/Kiyosaki.html#bothsides](http://www.johntreed.com/Kiyosaki.html#bothsides) [Wall street journal article about him and Donald Trump.](http://online.wsj.com/article/SB116052181216688592.html?mod=money_page_left_hs) [Another video about 'get rich quick real estate gurus' ](http://www.youtube.com/watch?v=wx2KMUvqRIM&feature=player_embedded) This is turning into a cult following with people spending thousands on credit cards to go to these courses and receive this poor advice, please watch this BBC documentary to see the way people are acting about this 'get rich quick real estate' scheme: [BBC Iplayer link](http://www.bbc.co.uk/iplayer/episode/b017xgn6/Money_Who_Wants_to_be_a_Millionaire/)",
"title": ""
},
{
"docid": "fbe4d5b5d491227204c8a50186fca60a",
"text": "any business selling for only 1,000 will not be worth getting into. marketing alone should cost you more than that if you have any genuine hope of turning a profit. buy some books instead. work for someone, learn the ropes, read books, practice what you read at work, then start something with your savings in 5 years.",
"title": ""
}
] |
fiqa
|
bbe13ca9c269fee66d303163f7d1020b
|
Valuing a small business to invest in
|
[
{
"docid": "576f7d951a779bdf0f9e1097102fbb92",
"text": "There is nothing fair / unfair in such deals. It is an art than a science. what kind of things should be considered, to work out what would be a fair percentage stake A true fair value is; take the current valuation of the company [This can be difficult if it is small and does not maintain proper records]. Divide by number of shares, that is the value of share and you should 20K worth of such shares. But then there is risk premium. You are taking a risk that an small start-up may do exceedingly well ... or it may close off. This risk premium is what is negotiated. It depends on how desperate the owner of the small company is; who all are interested in this specific deal ... if you want 30% share; someone else is ready to offer 20K for 15% of share. Or there is no one willing to lend 20K as they don't believe it will make money ... and the owner is desperate, you may even get 50%.",
"title": ""
},
{
"docid": "ecb00e05bf09c78b463c0b7c134741d3",
"text": "\"It should be pretty obvious that without knowing what sort of assets the company owns, and what sort of net earnings are being generated it's impossible to say what a $20k equity investment should get you in terms of ownership percentage. With that said, you want to look at a few to several years of books, look for trends. Some things to understand that might be subtle red flags: It's extremely common for early stage investors to essentially make loans rather than strictly buying shares. In the worst case scenario creditors get to participate in liquidation proceedings before shareholders do. You may be better off investing in this business via a loan that's convertible to equity at your discretion. Single owner service companies are difficult because all of the net earnings go to the proprietor and that person maintains all of the relationships. So taking something like 5 years of net earnings as the value of the company doesn't make much sense because you (or someone else) couldn't just step in and replace the owner. Granted, you aren't contemplating taking over the business, but it negates using an X years of net earnings valuation method. When you read about valuation there is a sort of overriding assumption that no single person could topple the operation which couldn't be farther from the truth in single employee service companies. Additionally, understand that your investment in a single owner company hinges completely on one person's ability and willingness to work. It's really vital to understand the purpose of the funds. Someone will be hired? $20,000 couldn't be even six months of wages... Put things in to perspective with a pad, pen and calculator. Don't invest in the pipe dream of a friend of yours, and DEFINITELY don't hand this person the downpayment for their new house. The first rule of investing is \"\"don't lose money,\"\" this isn't emotional, this is a dollars and cents pragmatic process. Why does the business need this money? How will you be paid back? Personally, I think it would be more gratifying to put $20k in a blender and watch it blend, this is probably a horrible investment. The risk should just be left to credit card companies.\"",
"title": ""
}
] |
[
{
"docid": "f0656add052a98a8db4a16389833068c",
"text": "Source, see if you have access to it Convertible notes are often used by angel investors who wish to fund businesses without establishing an explicit valuation of the company in which they are investing. When an investor purchases equity in a startup, the purchase price of the equity implies a company valuation. For example, if an investor purchases a 10 per cent ownership stake in a company, and pay $1m for that stake, this implies that the company is worth $10m. Some early stage investors may wish to avoid placing a value on the company in this way, because this in turn will affect the terms under which later-stage investors will invest in the company. Convertible notes are structured as loans at the time the investment is made. The outstanding balance of the loan is automatically converted to equity when a later equity investor appears, under terms that are governed by the terms set by the later-stage equity investor. An equity investor is someone who purchases equity in a company. Example:- Suppose an angel investor invests $100,000 using a convertible note. Later, an equity investor invests $1m and receives 10% of the company's shares. In the simplest possible case, the initial angel investor's convertible note would convert to 1/10th of the equity investor's claim. Depending on the exact structure of the convertible note, however, the angel investor may also receive extra shares to compensate them for the additional risk associated with being an earlier investor The worst-case scenario would be if the issuing company initially performed well, meaning that the debt would be converted into shares, and subsequently went bankrupt. The converted shares would become worthless, but the holder of the note would no longer have any recourse. Will twitter have to sell their offices and liquidate staff to close this debt? This depends on the seniority(priority) of the debt. Debt is serviced according to seniority. The higher seniority debts will be paid off first and then only the lower seniority debts be serviced. This will all be in the agreements when you enter into a transaction. When you say liquidate staff you mean sell off their assets and not sell their staff into slavery.",
"title": ""
},
{
"docid": "2ca4fe8511e65b7cb8ff2d94ddb5fe0e",
"text": "What you have to remember is you are buying a piece of the company. Think of it in terms of buying a business. Just like a business, you need to decide how long you are willing to wait to get paid back for your investment. Imagine you were trying to sell your lemonade stand. This year your earnings will be $100, next year will be $110, the year after that $120 and so on. Would you be willing to sell it for $100?",
"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": "0dba28ff9b2908da6f4be7d5ec49557e",
"text": "Let's take a step back. My fictional company 'A' is a solid, old, established company. It's in consumer staples, so people buy the products in good times and bad. It has a dividend of $1/yr. Only knowing this, you have to decide how much you would be willing to pay for one share. You might decide that $20 is fair. Why? Because that's a 5% return on your money, 1/20 = 5%, and given the current rates, you're happy for a 5% dividend. But this company doesn't give out all its earnings as a dividend. It really earns $1.50, so the P/E you are willing to pay is 20/1.5 or 13.3. Many companies offer no dividend, but of course they still might have earnings, and the P/E is one metric that used to judge whether one wishes to buy a stock. A high P/E implies the buyers think the stock will have future growth, and they are wiling to pay more today to hold it. A low P/E might be a sign the company is solid, but not growing, if such a thing is possible.",
"title": ""
},
{
"docid": "ea277e4ed379486c09e3bbc1d31fd249",
"text": "Your analysis is correct. The income statement from Google states that LinkedIn made $3.4 million in 2010 - the same number you backed into by using the P/E ratio. As you point out, the company seems overvalued compared to other mature companies. There are companies, however, that posts losses and still trade on exchanges for years. How should these companies be valued? As other posters have pointed out there are many different ways to value a company. Some investors may be speculating on substantial growth. Others may be speculating on IPO hype. Amazon did not make a profit until 2003. Its stock had been around for years before that and even split many times. If you bought the stock in 1998 and still have it you would be doing quite well.",
"title": ""
},
{
"docid": "235d9911f024b3047fa915c0789caa18",
"text": "There are different ways to determine the value of a company: When an entrepreneur starts a new company himself and owns 100% of the company, the Fair Market value is unknown. He has put his own money into the company, so it has a high Investment value to him, meaning he has a lot at stake in the company. The Asset value is probably less than the Investment value, meaning if he closed the company, he would lose some of the money he invested. Now, using your example, a Venture Capitalist comes along and takes a look at the company. She believes that the company has a great future potential to make money, which means that she believes that the Intrinsic value is very high. She decides to invest $1 Million in the company for a 10% stake, and the founder agrees. The Fair Market value of the company at that moment is $10 Million. The VC believes that the Intrinsic value of the company is more than $10 Million and that she is making a good investment. The Asset value of the company just went up by $1 Million. To answer your question, the $1 Million is not the founder's to spend on a new house. It is the company's money. However, the founder owns 90% of the company. The new capital will allow the company to buy whatever assets the company needs to meet the potential that the founder and the VC see in it, and make the company grow and earn money for the two investors. A crooked founder could, theoretically, close down the company immediately and pocket 90% of the new cash, but there are certainly legal protections in the contract they signed when the investment was made that prevent him from doing that.",
"title": ""
},
{
"docid": "98ec745c6a8e74d555e9e026298ed9a2",
"text": "It is difficult to value a private company. Most of the valuations is based on how one feels the idea would translate into revenue in some future time. The VC firms take into account various factors to determine the price, but more often then not, its their hunch. Even VC don't make money on all picks, very few picks turn out to be stars, most picks lose money they have invested. Few picks just return their money. So if you feel that the idea/product/brand/people are great and would someday make good money, invest into it. Else stay away.",
"title": ""
},
{
"docid": "b731769f380d1dbc187594d1070e9701",
"text": "I was thinking that the value of the stock is the value of the stock...the actual number of shares really doesn't matter, but I'm not sure. You're correct. Share price is meaningless. Google is $700 per share, Apple is $100 per share, that doesn't say anything about either company and/or whether or not one is a better investment over the other. You should not evaluate an investment decision on price of a share. Look at the books decide if the company is worth owning, then decide if it's worth owning at it's current price.",
"title": ""
},
{
"docid": "15f7e3886208561d239ceac550001b11",
"text": "\"Okay, I'm going to give you my opinion based on experience; not any technical understanding. The options - by themselves - are pretty meaningless in terms of determining their value. The business plan going forward, their growth expectations, the additional options to be authorized, the additional preferred stock offers they anticipate, even current estimated value of the company are some of the pieces of data you will be needing. I also want to say something cynical, like \"\"to hell with the stock options give me cold hard\"\" but that's just me. (My experience two-times so far has shown stock options to be worth very very little.)\"",
"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": "053fc9bcde5b00d378e822f216f521bb",
"text": "Let's use an example: You buy 10 machines for 100k, and those machines produce products sold for a total of 10k/year in profit (ignoring labor/electricity/sales costs etc). If the typical investor requires a rate of return of 10% on this business, your company would be worth 100k. In investing terms, you would have a PE ratio of 10. The immediately-required return will be lower if substantially greater returns are expected in the future (expected growth), and the immediately required return will be higher if your business is expected to shrink. If at the end of the year you take your 10k and purchase another machine, your valuation will rise to 110k, because you can now produce 11k in earnings per year. If your business has issued 10,000 shares, your share price will rise from $10 to $11. Note that you did not just put cash in the bank, and that you now have a higher share price. At the end of year 2, with 11 machines, lets imagine that customer demand has fallen and you are forced to cut prices. You somehow produce only 10k in profit, instead of the anticipated 11k. Investors believe this 10k in annual profit will continue into the forseable future. The investor who requires 10% return would then only value your company at 100k, and your share price would fall back from $11 to $10. If your earnings had fallen even further to 9k, they might value you at 90k (9k/0.1=$90k). You still have the same machines, but the market has changed in a way that make those machines less valuable. If you've gone from earning 10k in year one with 10 machines to 9k in year two with 11 machines, an investor might assume you'll make even less in year three, potentially only 8k, so the value of your company might even fall to 80k or lower. Once it is assumed that your earnings will continue to shrink, an investor might value your business based on a higher required rate of return (e.g. maybe 20% instead of 10%), which would cause your share price to fall even further.",
"title": ""
},
{
"docid": "55007fd29e85f7c0371128de9781b4b8",
"text": "\"Think about the implications if the world worked as your question implies that it \"\"should\"\": A $15 share of stock would return you (at least) $15 after 3 months, plus another $15 after 6 months, plus another after 9 and 12 months. This would have returned to you $60 over the year that you owned it (plus you still own the share). Only then would the stock be worth buying? Anything less than $60 would be too little to be worth bothering about for $15? Such a thing would indeed be worth buying, but you won't find golden-egg laying stocks like that on the stock market. Why? Because other people would outbid your measly $15 in order to get this $60-a-year producing stock (in fact, they would bid many hundreds of dollars). Since other people bid more, you can't find such a deal available. (Of course, there are the points others have brought up: the earnings per share are yearly, not quarterly, unless otherwise noted. The earnings may not be sent to you at all, or only a small part, but you would gain much of their value because the company should be worth about that much more by keeping the earnings.)\"",
"title": ""
},
{
"docid": "27329adb821354bfbb68c192b1454180",
"text": "You could also look at your growth in online subscribers as a metric for valuing your company. A progressive increase in subscribers is one of the signs of a healthy online business, and vice versa. Your subscriber growth, site visitations, returning customer percentages and other subscriber based metrics should not be ignored when valuing your company.",
"title": ""
},
{
"docid": "6df12d93516abeff8fd5bd05200b87b4",
"text": "\"Since you have no sales, I'd likely question how well could you determine the value of the company's assets in a reasonable fashion. You may be better to estimate sales and discount that back to a current valuation. For example, insurance companies could determine that if you wanted to be paid $x/month for the rest of your life, the present day value of that is $y. There are similar mechanisms for businesses but this does get tricky as the estimates have to be somewhat conservative and you have to be prepared for some other scenarios. For example, if you got the $200,000 then would you really never have to ask for more external equity financing in the future or is it quite likely that you'd want another infusion down the road? While you can mark it at $1,000,000 there will be questions about why that value that you'd have to answer and saying, \"\"Cause I like big round numbers,\"\" may not go over well. My suggestion is to consider what kind of sales will the company have over the next 5 years that you could work back to determine a current price. If you believe the company can have $5,000,000 in sales over the 5 years then it may make sense to place the current valuation of $1,000,000 on it. I wouldn't look too much into the money and time you've invested as that isn't likely to go over well with investors that just because you've put in what is worth $x, the business may or may not be worth that. The challenge is that without sales, it is quite difficult to get an idea of what is the company worth. If it makes billions, then it is worth a lot more than a company that never turns a profit. Another way to consider this is the question of what kind of economic output do you think you could do working here for the next 5 years? Could you do thousands of dollars of work, millions of dollars or just a few bucks? Consider how you want this to be seen where if you want some help look up episodes of TV shows like \"\"Dragon's Den\"\" or \"\"Shark Tank\"\" as these give valuations often as part of the pitch which is what you are doing.\"",
"title": ""
},
{
"docid": "62077bd6249e2f08079161e4588f0f94",
"text": "\"Will the investment bank evaluate the worth of my company more than or less than 50 crs. Assuming the salvage value of the assets of 50 crs (meaning that's what you could sell them for to someone else), that would be the minimum value of your company (less any outstanding debts). There are many ways to calculate the \"\"value\"\" of a company, but the most common one is to look at the future potential for generating cash. The underwriters will look at what your current cash flow projections are, and what they will be when you invest the proceeds from the public offering back into the company. That will then be used to determine the total value of the company, and in turn the value of the portion that you are taking public. And what will be the owner’s share in the resulting public company? That's completely up to you. You're essentially selling a part of the company in order to bring cash in, presumably to invest in assets that will generate more cash in the future. If you want to keep complete control of the company, then you'll want to sell less than 50% of the company, otherwise you can sell as much or as little as you want.\"",
"title": ""
}
] |
fiqa
|
778b378620b98ab0ae3c04c4f216b85d
|
Advice on money transfer business
|
[
{
"docid": "7851f4eb8431440619c6ffb3774188f0",
"text": "\"As soon as I see the word \"\"friends\"\" along with money transfer I think scam. But ignoring that red flag.... You will have American companies reporting to the IRS that you are a Canadian Vendor they have hired. Then you are transferring money to people in Bangladesh. Assuming also that you fill out all the regulatory paperwork to establish this Money transfer business you may still face annual reporting requirements to 3 national taxing authorities. In the United states there are situations where the US Government hires a large company to complete a project. As part of that contract they require the large company to hire small businesses to complete some of the tasks. In a situation where the large company is imply serving as a conduit for the money between the government and the sub-contractor; and the large company has no other responsibilities; the usual fee for providing that function is 8% of the funds. This pays for their expenses for their accounting functions plus profit and the taxes that will trigger. Yet you said \"\"At the end of the day, I will not earn much, but the transactions will just burden my tax returns.\"\" The 8 percent fee doesn't include doesn't include having to file paperwork with 3 nations. Adding this to all the other risks associated with being an international bank, plus the legal costs of making sure you are following all the regulations...No thanks.\"",
"title": ""
}
] |
[
{
"docid": "b333300fe111ad7b459f9ec0a85ee48d",
"text": "You would think so wouldn't you, after all, it's your money! In practise though, it's not as easy as you might think because anti money laundering and anti fraud laws mean you generally have to withdraw money to the same account you funded your trading from. Some forex trading account providers will allow you to fund from multiple sources, but then insist on putting money back to those sources in some proportion or some order or other. Some forex trading account providers at least claim that they may, AT THEIR DISCRETION, let you do it, IF the destination account is in the same name, but I wouldn't be surprised if they charged you for it, and actually the charges might be somewhat justified if they have to invoke identification procedures to make sure the other account is indeed actually you. You would have to talk to a specific service provider and see if they agree to do what you want, they all have FAQs about funding and withdrawal so you can scan around online for the slightly more flexible ones and then give them a call. You might find it difficult to get any guarantees out of them though.",
"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": ""
},
{
"docid": "d579e49e9440fb500a3e9953ab6811da",
"text": "You're licensed to sell investments. You could get a job at a broker or RIA. You can sell stocks bonds funds annuities and work for a fee based ria in sales. You're technically licensed to give advice on investments but without at least some academic expertise in finance I would avoid it. Helpful? edit: you don't need securities licenses to work in a bank. you'll be selling loans which is regulated differently.",
"title": ""
},
{
"docid": "b693a50f0b041a503eb337fccc719e76",
"text": "\"In Frank Abagnale's book \"\"Art of the Steal\"\" the author talks about how to set up a bank account for safe wire transfers. He recommends setting up an account at your regular bank and specifying that money can be transferred into that account from another bank, and out to your regular account only. You are then free to give the necessary transfer information to whomever you want, knowing full well they can't take money out. This guy should know what he's talking about since he's an ex-confidence man legitimately working as an American security consultant.\"",
"title": ""
},
{
"docid": "b4b4bff9088e5f343db874e4d24389cb",
"text": "If you’re concerned about transferring USD, I can’t really help you there. But if you’re looking to transfer wealth, I believe that’s where something like Bitcoin could help you. In fact a small or nonexistent processing fee is one of Bitcoin’s biggest strengths as a currency. Off the top of my head, I believe BitPay has services that would suit your needs. And if you’re worried about the volatility of Bitcoin, you can always convert it straight to USD just so you can avoid service fees!",
"title": ""
},
{
"docid": "f16c1f0ed3f18f440e4bdc168c614b96",
"text": "I just called the customer service of a real bank, not a money transfer service. It seems that the limit is on the electronic transactions only. If you show up at the bank the limits tend to be huge or do not exist (the bank rep. just told me that he is not aware of a limit in this specific bank).",
"title": ""
},
{
"docid": "c11c09b85c443880b8d617752cb05e2a",
"text": "\"For some reason can't transfer it directly to his account overseas (something to do with security codes, authorized payees and expired cards). Don't become someone's financial intermediary. Find out exactly why he can't transfer the money himself, and then if you want to help him, solve that problem for him. Helping him fix his issue with his expired card, or whatever the real problem is, would be a good thing to do. Allowing him to involve you in the transaction, would be a bad thing to do. Possible problems which might be caused by becoming directly involved in the transaction: -The relative is being scammed themselves, and doesn't realize it / doesn't realize the risks, and either wants you to take the risk, or simply thinks there is no risk but needs administrative help. -The person contacting you is not the relative - perhaps they are faking that person's identity, and are using your trust to defraud you. -The person is committing some form of fraud, money laundering, or worse, and is directly trying to defraud you in order to keep their hands clean. -The transaction may be perfectly legal, but is considered taxable in one or more countries. By getting involved, you might face tax filing obligations, or even tax payment obligations. -The transaction may be perfectly legal and legitimate, but might accidentally get picked up as potential fraud by a financial monitoring system, causing the funds to be held, and your account to be flagged for further investigation, creating headaches for you until it becomes resolved. There are possibly other ways that this can go awry, but these are the biggest possibilities I can think of. The only possible 'good' outcome here is that everything goes smoothly, and it works exactly as well as if your relative's \"\"administrative problems\"\" were solved first, and the money went through his own account. Handwaving about why your account is needed and his is faulty is a big red flag. If it is truly just an administrative issue on his end, help him fix that issue instead.\"",
"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": "19da4235bb5b11c1d9518c851550e211",
"text": "Disclaimer: it's hard to be definitive as there may be some law or tax rule I'm not aware of. From a UK perspective, this should be perfectly legal. If it's just a one-off or occasional thing for personal reasons, rather than being done in the course of a business, there probably aren't any tax implications. In theory if there's an identifiable profit from the transaction, e.g. because you originally obtained the INR at a lower exchange rate, then you might be liable to capital gains tax. However this is only payable above approximately £10K capital gains (see http://www.hmrc.gov.uk/rates/cgt.htm) so unless this is a very large transaction or you have other gains in the tax year, you don't need to worry about that. I would only recommend doing this if you trust each other. If one side transfers the money and the other doesn't, the international nature will make it quite hard in practice to enforce the agreement legally, even though I think that in theory it should be possible. If the sums involved are large, you may find that the transaction is automatically reported to the authorities by your bank under money laundering regulations, or they may want documentation of the source of the funds/reason for the transaction. This doesn't automatically mean you'll have a problem, but the transaction may receive some scrutiny. I think that reporting typically kicks in when several thousand pounds are involved.",
"title": ""
},
{
"docid": "9fea2316fbdf92a6a9f2072df1000cf8",
"text": "\"I am not sure about transferwise and how they work, but generally when I had to transfer money across countries, I ended up using a foreign currency/transfer company who needed the destination account details i.e. a GBP account in the UK in your case, and money from the source account. Basically that means your father would need to open an EUR account, probably in an EU country (is this an option?) but may be in the UK is fine too depending on transfer fees. And a GBP account in the UK, perhaps see if there is a better business account than HSBC around, I have used them as well as Santander before. The only FX transaction done in this straightforward set up is the one performed by the specialised company (there are a few) - and their spread (difference between interbank i.e. \"\"official\"\" and your price) is likely to be around 1.0 - 1.5%. The other expenses are transfer fees to the FX company account, say a flat fee of $25 for the SWIFT payment. The full amount less the spread above then goes to your UK GBP account. There are still the running costs of both EUR and GBP accounts of course, but here the advice would be just to shop around for offers/free banking periods etc. Point being, given the saving in FX conversion, it might still be a better overall deal than just letting HSBC deal with it all.\"",
"title": ""
},
{
"docid": "954366c292367a5d222b983be4aa261a",
"text": "1. this is not the correct sub, try /r/Entrepreneurs or similar 2. Banks only care about 1 thing: collaterals with personal guarantee from the owners/shareholders of the business. Nothing else matters, don't waste your time with a business plan. (Yes ELI: bank only give money to people who have money).",
"title": ""
},
{
"docid": "4d9bce594dab33b0ff1365b4775ec48f",
"text": "Regardless of UK Money Laundering Laws - All companies have a responsibility under the Data Protection Act to ensure that all data kept is necessary and accurate - and so they can actually ask you to send up-to-date information* in any time period that they deem reasonable to ensure they are compliant with the act. That being said, most payment systems these days are automated and use algorithms to try and find suspicious activity. Using multiple accounts will definitely be a red flag here, unfortunately, the advice to use your previous account will just be seen as yet another account switch by these algorithms and will probably look even more suspicious. The main thing to remember is that ultimately these acts and regulations are there to protect you and your investment, so unless you have any suspicious that you're being asked for documents by a company or individual that you don't trust I would simply send them on and let them do their job. As a side note - make sure you send anything of that nature in a recorded delivery so that you know exactly who handled it and when! * So long as the information is necessary.",
"title": ""
},
{
"docid": "9ed3a82a920a14a749d37bafde0dd4d9",
"text": "A non-cash transaction will not be a problem. The bank will have to fill out federal paperwork if there are large amounts of cash involved. This is to stop the underground economy. This can even extend to non-banks. If you were to walk into a car dealer or some other stores and hand them a bag of cash they will also report it. You can do what you propose without having to transfer any money between accounts. Your girlfriend can put the furniture and landscaping on her credit card, or write checks to the stores or companies. Based on the number of questions on this site regarding how to transfer funds between banks and accounts, the mechanics of the transfer is the hard part. Resist the urge to use cash to make the transfer. That will require paperwork. Many people find that the old standard of using checks to transfer funds is easy, safe and quick.",
"title": ""
},
{
"docid": "a2d082daf5331166230654369e6e616b",
"text": "Have them contact their embassy for help. They may be able to facilitate the transaction. This answer assumes that this isn't a scam, and that the 'friend' is really in trouble.",
"title": ""
},
{
"docid": "0c095c5d16485bc331c95bf1af2efc1e",
"text": "\"If wire transfer through your bank does not work then perhaps one of the more popular money transfer services may be what you are looking for such as MoneyGram or Western Union. Now these rely on a trusted \"\"registered\"\" third party to do the money transfer so you need to make sure that you are working with a legitimate broker. Each money transfer service has a site that allows you to perform the search on registered parties around your area. There are certain fees that are sometimes applied due to the amount being transferred. All of these you will want to do some detailed research on before you make the transfer so that you do not get scammed. I would suggest doing a lot of research and asking people that you trust to recommend a trusted broker. I have not personally used the services, but doing a quick search brought many options with different competitive conversion rates as well as fees. Good luck.\"",
"title": ""
}
] |
fiqa
|
66267c1b699565dede193e8325f28144
|
Tutoring Business Payroll Management
|
[
{
"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": "a2cf66883d51bd5ea08ba6ad0f0a209d",
"text": "Stop paying too much for your online tutoring! Web Tutors provides the most professional online tutors for the absolute lowest price on the web. If you need math help, algebra help, science help, business help or any other online tutoring services, Web Tutors is the place to go. Get access to live tutors 24/7 from the comfort of your own home on your PC or even your tablet!",
"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": "6f35493317b0fa9767a0827ede4a4505",
"text": "I appreciate it. I didn't operate under selling the asset year five but other than that I followed this example. I appreciate the help. These assignments are just poorly laid out. Financial management also plays on different calculation interactions so it is difficult for me to easily identify the intent at times. Thanks again.",
"title": ""
},
{
"docid": "7f655f1a7499ef06e157cfe67f57ebc1",
"text": "\"We had a \"\"civics\"\" class when I was a freshman in high school. This was in the Ann Arbor, MI public schools. It covered the very basics (how to balance your checkbook, what are stocks, how do income taxes work, what is interest, etc.) of money management along with an overview of politics and the legal system. It was a really light class, though, and didn't go deeply into personal finance and money management. I agree that such a class would be very valuable, as would cooking, nutrition, and basic home and car repair.\"",
"title": ""
},
{
"docid": "dac202a02162e147b60e167b75595208",
"text": "A company would have significantly less capital to pay a skilled worker at that point though. Keep that in mind. So, to circle back now. Small businesses make up a decent amount of our GDP and job creation. Let's say you have had it working fir someone else and want to strike out on your own. You decide to start an e-commerce site, reselling from a factory on amazon. Simple enough set up. Online marketing made simple through amazon, google and facebook. But you don't have any idea how to translate that info into QuickBooks and push out the financial info needed for taxes, payroll, etc. You need to hire a bookkeeper to sort it out, but it os only 5 hours worth of work per week. Do you hire them as a salaried employee giving them a liveable wage or pay them the rate you agreed upon for those 5 hours?",
"title": ""
},
{
"docid": "b2c2a2438b925a7ca203cf52bfabeaf3",
"text": "You really shouldn't be using class tracking to keep business and personal operations separate. I'm pretty sure the IRS and courts frown upon this, and you're probably risking losing any limited liability you may have. And for keeping separate parts of the business separate, like say stores in a franchise, one approach would be subaccounts. Messy, I'm sure.",
"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": "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": "e014d35b3f0ff08b6d7e46b48d579fb8",
"text": "Payroll is undeniably one of the most important part of any business and it very important that you have a timely payroll every month. To avoid the hassle of payroll processing, it is best to get the service outsourced. We,DHpayroll, will be more than happy to offer you our expert services.",
"title": ""
},
{
"docid": "ab74462d5c7f99d3a4afd1ef3aeba97d",
"text": "It sounds like the job will largely be an administrative assistant (scheduling, note taking, organizing, etc.). If you want a primer on finance to try and show you want to understand more about what he does, then there's 4 fundamental ideas that underlie the majority of topics in finance: time value of money, liquidity preference, risk, and leverage. If someone has read and understands the investopedia intro paragraph on those topics; it's pretty easy to explain the gist of most aspects of finance to them.",
"title": ""
},
{
"docid": "1f885d19828b0096cb88cd4cd5ba8182",
"text": "This would be better posted in /r/personalfinance. But since I'm here, you need to seriously consider selling anything you can possibly part with and pick up a second and/or third job. I hope you didn't charge that whiteboard purchase.",
"title": ""
},
{
"docid": "7156a9fde48c1a3aec096bab435c99e9",
"text": "Yes, you can do what you are contemplating doing, and it works quite well. Just don't get the university's payroll office too riled by going in each June, July, August and September to adjust your payroll withholding! Do it at the end of the summer when perhaps most of your contract income for the year has already been received and you have a fairly good estimate for what your tax bill will be for the coming year. Don't forget to include Social Security and Medicare taxes (both employee's share as well as employer's share) on your contract income in estimating the tax due. The nice thing about paying estimated taxes via payroll deduction is that all that tax money can be counted as having been paid in four equal and timely quarterly payments of estimated tax, regardless of when the money was actually withheld from your university paycheck. You could (if you wanted to, and had a fat salary from the university, heh heh) have all the tax due on your contract income withheld from just your last paycheck of the year! But whether you increase the withholding in August or in December, do remember to change it back after the last paycheck of the year has been received so that next year's withholding starts out at a more mellow pace.",
"title": ""
},
{
"docid": "cce2d4382f45e9abbdf4d6bb2a5f0681",
"text": "\"Same in childcare, but people are more willing to pay and the work isn't as hard. So it kind of works out. I do tutoring on the side and my officemate suggested I get into at home childcare because \"\"My daycare lady makes BANK! It's so expensive!!!!!\"\" then I broke down for her how inexpensive those prices really are. She was shocked and agreed that it's actually a quite low paying gig. People don't think critically about what they're getting for the money- they just see a huge check written weekly.\"",
"title": ""
},
{
"docid": "4ad2eabf91224ff40d902e978434c540",
"text": "I'm a bot, *bleep*, *bloop*. Someone has linked to this thread from another place on reddit: - [/r/talkbusiness] [Are We Ready For A Workforce That is 50% Freelance?](https://np.reddit.com/r/talkbusiness/comments/7836tp/are_we_ready_for_a_workforce_that_is_50_freelance/) [](#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": ""
},
{
"docid": "bd73b14f4979fbee1d6a372bb5666977",
"text": "For Federal Return, Schedule H and its Instructions are a great start. You are the nanny's employer, and are responsible for FICA (social security and medicare) withholding, and also paying the employer portion. You will offer her a W4 so she can tell you how much federal and state tax to withhold. You'll use Circular E the employer's tax guide to calculate withholding. In January, you'll give her a W-2, and file the information with your own tax return. For State, some of the above applies, but as I recall, in my state, I had to submit withholding quarterly separate from my return. As compared to Federal, where I adjusted my own withholding so at year end the tax paid was correct. Unemployment insurance also needs to be paid, I believe this is state. This issue is non-political - I told my friends at the IRS that (a) the disparity between state and federal to handle the nanny tax was confusing for those of us trying to comply, and (b) even though we are treated as an employer, a 'guide to the nanny tax' would be helpful, a single IRS doc that doesn't mix non-nanny type issues into the mix. In the end, if a service is cost effective, go for it, your time is valuable, and thi is something that only lasts a few years.",
"title": ""
}
] |
fiqa
|
08f0c47e1e05aeed860e2e9a32f89124
|
Should my husband's business pay my business?
|
[
{
"docid": "4c90a79aa4eaf29fbb8947a4296a3b5a",
"text": "It depends on the finances involved, but particularly if you're not billing anything right now and may have no revenue this year, it's probably a good idea to bill his company. This is in part because some deductions or other tax treatments are only allowed if you have revenue and/or income. The biggest example I can think of is the Solo 401k - you can only contribute up to your self employed income. If you're planning to contribute to one (and you should, they're amazingly powerful tools for saving for retirement and for reducing your tax burden), you will have to have some revenue in order to have something to pay yourself with. I don't believe you have to charge him, though, if it makes more tax sense not to (for example, if his business is operating at a loss and cannot benefit from expensing it, but you'd then have to pay taxes on your own income from it).",
"title": ""
},
{
"docid": "e2f7bbb19b33de9afdab4e616c14f606",
"text": "\"Is it worth it for me to \"\"charge\"\" him? I can think of two reasons why you might want to charge your husband:\"",
"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": "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": "305299bd0445f70b928a386809b620c3",
"text": "\"(Yes, I know this is a seven year old question.) Does this only apply to debts that were taken on during marriage Yes or to all debts of both partners? No. The important thing to remember is that it's both debts and assets acquired during the marriage which are shared. This comes from the reality that men in the olden times were the ones in business, accumulating wealth, etc while the woman \"\"made the home\"\". The working assumption was that the woman who made the home was an equal partner with the man, since he benefited from a good home, and she benefited from his income. The fact that pre-marriage debts and assets were not community property also protected the woman, because she was able to then take back her dowry and use that to support herself. (N.B. - I live in a CP state.)\"",
"title": ""
},
{
"docid": "095938096f0729953b2f9a910c9744aa",
"text": "Hi, are you a business lawyer and do you happen to know the answer? I tried asking someone at a Small Business Center but I think he started getting annoyed at all my questions and starting becoming curt so I stopped asking even though I still wasn't clear on all the answers yet.",
"title": ""
},
{
"docid": "2f73770a2da33ab40245475e5bc5ee82",
"text": "\"You may want, or at least be thinking of, the annualized method described in Pub 505 http://www.irs.gov/publications/p505/ch02.html#en_US_2015_publink1000194669 (also downloadable in PDF) and referred to in Why are estimated taxes due \"\"early\"\" for the 2nd and 3rd quarters only? . This doesn't prorate your payments as such; instead you use your income and deductions etc for each of the 3,2,3,4-month \"\"quarters\"\" to compute a prorated tax for the partial year, and pay the excess over the amount already paid. If your income etc amounts are (nearly) the same each month, then this computation will result in payments that are 3,2,3,4/12ths of 90% of your whole-year tax, but not if your amounts vary over the year. If you do use this method (and benefit from it) you MUST file form 2210 schedule AI with your return next filing season to demonstrate that your quarterly computations, and payments, met the requirements. You need to keep good per-period (or per-month) records of all tax-relevant amounts, and don't even try to do this form by hand, it'll drive you nuts; use software or a professional preparer (who also uses software), but I'd expect someone in your situation probably needs to do one of those anyway. But partnership puts a wrinkle on this. As a partner, your taxable income and expense is not necessarily the cash you receive or pay; it is your allocated share of the partnership's income and expenses, whether or not they are distributed to you. A partnership to operate a business (like lawyers, as opposed to an investment partnership) probably distributes the allocated amounts, at least approximately, rather than holding them in the partnership; I expect this is your year-end draw (technically a draw can be any allowed amount, not necessarily the allocated amount). In other words, your husband does earn this money during the year, he just receives it at the end. If the year-end distribution (or allocation if different) is significant (say more than 5% of your total income) and the partnership is not tracking and reporting these amounts (promptly!) for the IRS quarters -- and I suspect that's what they were telling you \"\"affects other partners\"\" -- you won't have the data to correctly compute your \"\"quarterly\"\" taxes, and may thus subject yourself to penalty for not timely paying enough. If the amount is reasonably predictable you can probably get away with using a conservative (high-side) guess to compute your payments, and then divide the actual full-year amounts on your K-1 over 12 months for 2210-AI; this won't be exactly correct, but unless the partnership business is highly seasonal or volatile it will be close enough the IRS won't waste its time on you. PS- the \"\"quarters\"\" are much closer to 13,9,13,17 weeks. But it's months that matter.\"",
"title": ""
},
{
"docid": "515b690eacac5ea7e087bd7b424aa6b3",
"text": "I agree. Billing by the hour for a sole-proprietorship is the exception, not the norm. You either usually sell a product for a fixed price or provide a service via contract for a total sum. That and the term 'sole proprietorship' doesn't preclude you from having thousand of employees working for you.",
"title": ""
},
{
"docid": "8b8ffbf0d555542312da22ea78052786",
"text": "Yes. Basically, I see it as a huge giveaway to corporate interests when we have to do things like step in and pay for food for their workers (e.g. SNAP), enabling a business to keep their own wages low. It's basically a wealth transfer to shareholders. A full-time worker should be able to cover their nutritional needs from their salary.",
"title": ""
},
{
"docid": "97c49e6547ad8640d2b8e83b0f8209ea",
"text": "You should check several things: How your business can deduct your child care expenses is beyond me. If your mother-in-law starts a business as a neighborhood babysitter, she might get some deductions for her related expenses though.",
"title": ""
},
{
"docid": "d8901ebcbe588b9b70a36bb5f84f71a5",
"text": "\"You're a partnership. You should ask the money to be paid to the partnership. You'll have to fill partnership income tax return (form 1065) and each of you will get a K-1 schedule with your own personal portion of the income. For example, you're Adam, Ben and Clara. You work together on a project and are being paid. You get a check for $300 issued to \"\"Adam, Ben and Clara, DBA ABC Partnership\"\". You don't have to have a DBA, it just makes it easier to show you as a single entity. You then deposit the check to an account you set up for your partnership, and from that account you transfer $100 to each of you. Year end, you file form 1065, showing $300 income, and attach K-1 for each of the partners showing $100 income. That $100 income will flow to your individual tax returns. The overhead here is setting up a partnership account, potentially making a DBA, and filing the extra tax return. That's the proper way to do it, especially if it is something you're going to do regularly. For a one-time thing, one of you can get paid, report it as income on his/her Schedule C, and issue 1099 to the rest of you for your parts, and deduct the amount as his/her expense. Here, the overhead is Schedule C for each of you (instead of Schedule E if handling it as a partnership), extra 1099 forms (instead of 1065 and K-1s), and a risk of one partner defrauding the others (depends on how much you trust each other). With proper documentation, each of these is equally legal, and tax-wise the costs are the same (i.e.: either way you pay the same taxes). With partnership the overhead is a bit more expensive (DBA+1065 extra cost), but in the long term it will make your life easier if you do this kind of thing regularly. You may want to consider setting up your partnership as a LLC/LLP (depending on what your State allows), but that would require State paperwork and potentially more fees.\"",
"title": ""
},
{
"docid": "f8d408901fe75bd3e42e9c0290848c5a",
"text": "Assuming the funds are being transferred for his treatment, Yes it should be added to your income and taxed at the bracket you fall into. This is same as a person walking into your clinic and paying you cash/cheque/credit card to get treated.",
"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": "16cd7199c139d9f9e3025c20c4cacd73",
"text": "You can ask the client to pay you through the LLC. In that case you should invoice them from the LLC and have them pay the invoice. If they pay you personally, you can always make a capital contribution to the LLC and use that money to buy equipment. The tax implications for a single person LLC providing professional services are the same for you either way: income is income whether it's from your LLC or an employer. It's different for the employer if they are giving you a W2 vs a 1099. So it doesn't matter much for you. If the LLC is buying equipment, make sure you get enough revenue through the LLC to at least offset those expenses.",
"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": "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": "6f4c9b8ab65f563b1d82e2d953c91b2e",
"text": "\"I started a business a few years ago. At one point it wasn't going so well and my father \"\"loaned\"\" me an amount not too dissimilar to what you've done. From a personal perspective, the moment I took that loan there was a strain the relationship. Especially when I was sometimes late on the interest payments... Unfortunately thoughts like \"\"he doesn't need this right now, but if I don't pay the car loan then that is taken away\"\" came up a few times and paying the interest fell to the bottom of the monthly bill payment stack. At some point my wife and I finally took a hard look at my finances and goals. We got rid of things that simply weren't necessary (car payment, cable tv, etc) and focused on the things we needed to. Doing the same with the business helped out as well, as it helped focus me to to turn things around. Things are now going great. That said, two of my siblings ran into their own financial trouble that our parents helped them on. When this happened my father called us together and basically forgave everyone's debt by an equal amount which covered everything plus wrote a check to the one that was doing fine. This \"\"cleared the air\"\" with regards to future inheritance, questions about how much one sibling was being helped vs another, etc. Honestly, it made family gatherings more enjoyable as all that underlying tension was now gone. I've since helped one of my children. Although I went about it an entirely different way. Rather than loan them money, I gave it to them. We also had a few discussions on how I think they ought to manage their finances and a set of goals to work towards which we co-developed. Bearing in mind that they are an individual and sometimes you can lead a horse... Given the current state of things I consider it money well \"\"spent\"\".\"",
"title": ""
},
{
"docid": "382a84ba2de816aeea68f21ab665c9b2",
"text": "Yes, absolutely she can. I come across small businesses from sole props to corps and llc who have their spouses employed. One thing to note is that the business won't need Workers Comp insurance if you're the only employee, if you hire anyone else you will need it.",
"title": ""
},
{
"docid": "9d528af1915fd76bb48ff938a339e435",
"text": "Let's look at the two options. It sounds like, at this time, the company has enough cash to pay you a salary or pay your loan off, but not both at the same time. Ideally, in the future, there will be enough cash flow to be able to do both at the same time. If you start your salary now, when the cash flow increases to the point where the company can pay off your loan, you will continue to receive your salary while the loan is being repaid. So it is probably most advantageous to you to start the salary now and wait with the loan payments. (If you think that the company is not going to make it and there is a danger of not ever getting the loan repaid, this could change; however, you are probably optimistic about the company, or you wouldn't have made the loan and agreed to work for free in the first place.) With the other option, the company gets out of debt quicker and cheaper. I can totally understand your brother wanting to eliminate this debt ASAP. It looks like you and your brother had different expectations about what was going to happen. That's why it is so critical to put these kinds of agreements in writing. If you had had a payment schedule in your written loan agreement, this wouldn't be an issue. Of course, the issue of how long you would continue to work for free would still be there, but this could also have been decided ahead of time. As is, you have two different things going on that were left up in the air with no formal agreement. As to what is fair, that is something only you and he can work out. Perhaps you can propose a payment schedule for your loan that the company can afford now while paying your salary; that way, you will start getting paid for working, and the company will start moving toward eliminating the debt. I hope that you will be able to agree to a solution without ruining the relationship you have with your brother. Besides the fact that family relationships are important, a rift between the two of you would certainly be disastrous for the company and, as a result, your and his finances.",
"title": ""
}
] |
fiqa
|
378a8e331d023d1bb6d038ddbe2d1f81
|
Why can't online transactions be completed outside of business hours?
|
[
{
"docid": "6456413b7ec143609b45ca93f8c59625",
"text": "Generally, unless you're doing a wire transfer, bank transactions are processed in batches overnight. So the credit card company won't be able to confirm your transfer until the next business day (it may take even longer for them to actually receive the money).",
"title": ""
}
] |
[
{
"docid": "ffd92d990a6b96092871ac822eef4a57",
"text": "\"This is not a normal occurrence, and you have every right to be annoyed, but the technical way it usually happens goes like this: What can happen is when the merchant incorrectly completes the transaction without referencing the pre-authorization transaction. The bank effectively doesn't \"\"know\"\" this is the same transaction, so they process it the same way they process any other purchase, and it has no effect on the pre-authorization and related held/pending transaction. As far as the bank knows, you purchased a second set of blinds in the store for $200 and are still waiting on the first order to come in, they have no idea the store screwed up. The reason this is possible is the purpose of the pre-auth in the first place is that it is a contractual agreement between the bank (credit card) and the merchant that the funds are available, will be available except under rare special circumstances, and thus they can go ahead and process the order. This lets the merchant be secure in the knowledge that they can collect their payment, but you aren't paying interest or monthly payments on something you haven't even gotten yet! This system works reasonably well for everyone - right up until someone screws up and fails to properly release a hold, makes a second transaction instead of properly referencing the first one, or the bank screws up their system and fails to correctly match referenced pre-authorization codes to purchases. The problem is that this should not be a normal occurrence, and the people you are speaking with to try to sort out the issue often do not have the authority or knowledge necessary to properly fix the issue, or its such a hassle for them that they hope you just go away and time fixes the issue on its own. The only sure-fire solution to this is: make sure you have so much extra credit line that this doesn't effect you and you can safely let it time out on its own, or stop doing business with this combination of merchant/payment that creates the problem. Back when my credit limits were being pushed, I would never pay at gas pumps because their hold polices were so weird and unpredictable, and I would only pre-pay inside or with cash to avoid the holds.\"",
"title": ""
},
{
"docid": "7978ca109e7616f8fa48ed25d4df2cb9",
"text": "Interesting. The real surprise here is preference. It seems not only do people but in person, they actually seem to mostly prefer it that way. Most spending being offline isn't too surprising, especially if you count corporate purchasing. The average consumer spend most of their money on things like gas and food, two products not normally available online. Also, big purchases like cats and houses aren't online either. But companies also often don't ship online. Think about a building contractor. He goes to the contractor store in the morning before going to the job site. Or about the heavy manufacturer. A lot of steel manufacturers require the customer to speak to a sales rep or even to meet in person, depending on the size of the deal.",
"title": ""
},
{
"docid": "e71f228afd0edf155e68003fb0ba718a",
"text": "One thing I didn't see mentioned - my major bills are all electronic transfer, i.e. there is no check mailed. A bill due in 2 days can be set up now, and still paid the day after tomorrow. Try that with a check. There are smaller companies that are not done that way and a check mailed, but you state the due date not the mailing date. So the bank still has the obligation to get it there. This is how my particular bank works.",
"title": ""
},
{
"docid": "0d57a595cc31caf9543fc27603a5a3c4",
"text": "Any institution that issues checks and is connected to the ACH system can be the passive side. Any institution that clears checks and is connected to the ACH system can be the originating side. Not any institution that can be - in fact is. Your credit union doesn't provide this service because they don't want to. It costs them money to implement and support it, but they don't see the required benefit to justify it. They can. My credit union does that.",
"title": ""
},
{
"docid": "5957d17f3237d596fda562a4340cfe5c",
"text": "I don't know how fast are wire transfers between bank accounts in the US, but here in Europe we can have them in under an hour usually for an extra fee (during bank working hours) - so you could take a laptop with Internet connection to the transaction, make a wire transfer and wait that hour drinking coffee for the transfer to arrive before handing the keys and papers and the buyer driving away.",
"title": ""
},
{
"docid": "a33b7e79c798f5df57f893117b965db2",
"text": "Thanks it is problem for class and I don't want to give the problem I just want to understand how to actually do it and the book hasn't been much help. Only additional information I can provide is In Inventory – 15 days Accounts Receivable outstanding – 35 days Vendor credit – 40 days Operating Cycle – 50 days",
"title": ""
},
{
"docid": "7fefe5d57ca155e34ee38078fa8baeb9",
"text": "\"Yes, so much for audit. We are audited yearly by one of big-4 and me being in IT Management was asked by the Auditors prove that \"\"the system will not allow to enter an order for a customer that does not exist.\"\" ?!?!?! As for finance, I was once asked to setup credit card processing of a new type of orders. Done and tested! I then asked them to tell me when they start accepting the new orders, because I need to setup a job to send the charges to the bank. They did not inform me and accepted orders for $100,000s. Suddenly, after a year they discovered that we do not get paid by the bank. You would think that one of the basic jobs of accounting it to make sure Total Sales = Total Payments. We had write off $100,000s because I can only charge customers for orders in the last 30 days, before their credit card authorizations expires.\"",
"title": ""
},
{
"docid": "661a82ae2d2703de1f52515e29710b2d",
"text": "Stop orders and stop limit orders typically do not execute during extended hours after the general market session has closed. Stop orders are market orders and market orders especially are not executed during extended hours. Although there are exceptions because a broker can say one thing and do another thing with the way order types are presented to customers vs what their programming actually does. The regulatory burden is a slap on the wrist, so you need to ask the broker what their practices are. Orders created during normal market hours do not execute in extended sessions, different orders would have to be made during the extended session. Your stop order should execute if the normal market hour price stays below your stop price. So a stop limit would actually be worse here, because a stop limit will create a limit order which may never get hit (since it is above the best bid best ask)",
"title": ""
},
{
"docid": "1a6966cd2d8bb981a70c85519d33c330",
"text": "As far as I'm aware, PINs are only used for in-person transactions, not 'remote' (over the Internet or phone).",
"title": ""
},
{
"docid": "dbb4222a10017eda7d851caf3cb7233a",
"text": "\"Even worse: many more times, companies will go through an $8 million project to fix an \"\"issue\"\" that costs $20. Just 2 examples from my company: 1. A big project to automate the entry of 2 invoices per month from a supplier. Is would take an employee less than 10 minutes a month to enter those 2 invoices manually into the system. 2. A big project to provide a website for employees to buy the company's products (\"\"employee sales\"\"). I showed that on average, less than 1 order is placed per day, except December when the company has extra discounts, and then there are 3 sales a day. My solution: offer a coupon for employees to buy the same products on the existing B2C site. P/S: Yes, I did the 1st project. Why would I complain and point out the obvious? Those silly projects are more than a job security for me. I would probably even get a prize for \"\"job well done!\"\".\"",
"title": ""
},
{
"docid": "ecdf75f3e474ce610832c2e2ebc496d4",
"text": "I have always assumed that there is a regulation that either prohibits, or makes noncompetitive, internet bank business accounts. All of the 1%+ savings accounts offered at the banks listed are internet only. If you broaden the search to include other internet only banks like Capital One 360, American Express Savings, Goldman Sachs Savings, Discover Savings, you'll find they all also only offer accounts to individuals (some may allow a trust to own the account) not businesses.",
"title": ""
},
{
"docid": "6a620ff4f8a59262eff925e15f8fb94b",
"text": "\"You'd have to check the rules for your broker to make sure that the term is being used in its usual sense, but the typical answer to your question is \"\"no.\"\" A GTC will execute during market hours. You would need to explicitly specify extended hours if you want to execute outside of market hours (which your broker may or may not support).\"",
"title": ""
},
{
"docid": "e7c109089f649f7783cff28efe4472e4",
"text": "Some businesses verify the shipping address with the credit card company, and refuse to ship to an alternate address without additional, offline verification. Of course, this is only useful for physical goods.",
"title": ""
},
{
"docid": "6f1198a7edd481bd8811ecf23bee391f",
"text": "If I designed a system that handled multimillion dollar orders, I'd have the foresight to include a timestamp / order #, so resubmissions didn't generate duplicate charges. But that's probably just me and my small town ways.",
"title": ""
},
{
"docid": "8be8ac7ecbba0a10b649f7028804137c",
"text": "I've had a card cloned 15 years ago and used to buy over 5k of goods in another country. So the inconvenience of having a card closed and re-issued is quite annoying even though the charges were reversed and I was made whole. But these days most CC fraud isn't from a card scanned by a waiter and cloned then used elsewhere. Mostly it is poorly secured databases or point of sale terminal malware. The latter is getting curtailed by chipped cards and the largest source of fraud is now online transactions (so called card not present) where the merchant has your CC number. If their system is breached the bad guys have a wealth of card numbers they sell in an E-bay like site on the dark web. This is where the Citi virtual CC comes in handy. Here's how it works to protect the bank and the hassles you go through when a card as to be re-issued. Citi's virtual CCs let you generate an actual credit card, complete with security code and expiration date. What is unique is that once the virtual CC is used it can only be used subsequently by that same merchant and is declined by any other. You can also set a total limit on what the merchant can charge as well as an expiration date. I use them for all my online accounts because they are, for all practical purposes, immune to the malware that steals CC info. Even if somehow the virtual CC is used before the merchant makes the initial charge that locks in the CC to their account the charge can be reversed without closing your actual card which has a different number. You can manage multiple Citi virtual CCs and view charge status, close, or adjust limits over time so managing them is quite easy with no risk to your primary account.",
"title": ""
}
] |
fiqa
|
0cb400a482e3f9456531e52eb9bd8117
|
Finding a good small business CPA?
|
[
{
"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": "d5d2969e3095dd87f04b0ffbbdb58be3",
"text": "Check your local better business bureau. They can tell you who is in business, who's bonded, and who has had a lot of complaints levied against them for shoddy practices.",
"title": ""
},
{
"docid": "c68d940b558813b57eb63f1bf1324a2d",
"text": "People to ask: Granted I live in a small town, but when the same guy's name comes up more than once that's who you should hire...",
"title": ""
},
{
"docid": "d1f7fe158bdbb3b8634828acc9ac4633",
"text": "Ask for at least 10 references. Ask for 10 because it will be harder for them to refer you to ringer references like their family or friends.",
"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": "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": "6e1d042d845a3ded83660b9fd7eb6eb0",
"text": "Consult your local Small Business Administration office - they may have resources that can help you find what you're looking for.",
"title": ""
},
{
"docid": "f0aed14ebdb745589147bf106ba7b8f4",
"text": "Look for an accountant who brings not only expertise in number crunching, but consulting and business planning - a full package.",
"title": ""
}
] |
[
{
"docid": "12d1a8b507f62f4a0cec0bd65c453fa8",
"text": "\"They are under the radar, but are very strong in Europe and Asia. Deal size will be middle market transactions in North America, a stark contrast to its accounting clients. The good: -established pipeline from accounting and consulting partners & contacts -much better work life balance than most IBs, no 100 hour weeks -widely known name brand -experience working on more than straight forward sell side deals; people underestimate the knowledge and skills you learn through being involved in turnarounds, refinancings, buy side advisory, etc. Cons: -exit opportunities are more limited -pay will be below street -partner \"\"buy in\"\" can be incredibly frustrating I will say that generally KPMG prefers CPAs (even for non-accounting positions) and requires 3-4 years of experience. But, considering you have the interview, they felt you were worth talking with.\"",
"title": ""
},
{
"docid": "276388f53db8e90d4b87333a7c07e18a",
"text": "Generally speaking no person or program is really going to be able to help you lower your current tax burden, most tax decisions are done well before you reach the tax time. You either qualify for the deduction/credit or your don't. Where a good accountant will really be able to help you out is in planning that will limit your future tax burden. Particularly if you run a small business or are very wealthy you will probably want to consider using an accountant. I would always avoid the large scale tax prep places like HR Block they provide the same or lower quality service for a higher price than the software. I run a small business and do my own taxes using turbo tax, but my business isn't overly complex Sole prop, no employees, couple 1099's simple expenses (nothing to amortize) etc.",
"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": "37d3deae559faa027f581038480369ba",
"text": "Should I go see a CPA? Not unless you are filing paperwork for a corporation. A CPA (Certified Public Accountant) is a certification required to file certain paperwork for a corporation. In any other situation, you don't need a CPA and can just use a regular accountant. You could conceivably go to a tax accountant, but unless you are doing something complicated (like your own business) or are rich enough that everything is complicated, you should not need to do so.",
"title": ""
},
{
"docid": "419c2cebfdf3fcf5bc0590e713494556",
"text": "I have a CPA. They said that it isn't possible. However, I've seen on message boards that it indeed IS possible, multiple times. I'll likely reach out to another CPA. However, I am interested to hear from somebody who has done this before, so that I at least have a name or defined process for what I'm attempting to do.",
"title": ""
},
{
"docid": "095938096f0729953b2f9a910c9744aa",
"text": "Hi, are you a business lawyer and do you happen to know the answer? I tried asking someone at a Small Business Center but I think he started getting annoyed at all my questions and starting becoming curt so I stopped asking even though I still wasn't clear on all the answers yet.",
"title": ""
},
{
"docid": "c4d74a187ce9d827a308f17fa8561d36",
"text": "okay, I was thinking of an investment advisor. I believe in not doing it alone too. But i don't believe in just one more person. Investing advisors, tax advisors, business and law. I don't go to an advisor bc I can't balance my monthly budget and also want to save, you know. Questions more like, highest growth sectors, diversified strategies, etc. And right, they wouldn't get fired bc their client is still happy, (even though their losing money during a record bull market). Guy must be a good sales man. I'd just want to know that my advisors performance is decent relative to the market. But again, I'm not handing over checks to people, only speaking with them. edit: Yes, the average person should worry about making their kids soccer games and shit, not necessarily the markets and what their investment is worth in 30yrs",
"title": ""
},
{
"docid": "1bc58462d1b93a9debd7c1241a6979f9",
"text": "\"I am perfectly qualified to not use an accountant. I am a business professor, and my work crosses over into accounting quite a bit. I would certainly find a CPA that is reputable and hire them for advice before starting. I know a physicist who didn't do that and found they ended up with $78,000 in fines. There are a number of specific things an accountant might provide that Quickbooks will not. First and foremost, they are an outsider's set of eyes. If they are good, they will find a polite way to say \"\"you want to do what?!?!?!\"\" If they are good, they won't fall out of their chair, their jaw won't drop to the floor, and they won't giggle until they get home. A good accountant has seen around a hundred successful and unsuccessful businesses. They have seen everything you may have thought of. Intelligence is learning from your own mistakes, wisdom is learning from the mistakes of others. Accountants are the repositories of wisdom. An accountant can point out weaknesses in your plan and help you shore it up. They can provide information about the local market that you may not be aware of. They can assist you with understanding the long run consequences of the legal form that you choose. They can assist you in understanding the trade-offs of different funding models. They can also do tasks that you are not talented at and which will take a lot of time if you do it, and little time if they do it. There is a reason that accountants are required to have 160 semester hours to sit for the CPA. They also have to have a few thousand field hours before they can sit for it as well. There is one thing you may want to keep in mind though. An accountant will often do what you ask them to do, so think about what you want before you visit the accountant. Also, remember to ask the question \"\"is there a question I should have asked but didn't?\"\"\"",
"title": ""
},
{
"docid": "6006ef38d0fc100958476f3a31823b0b",
"text": "This is a general rule of thumb that has worked for myself, as well as my Father, Brother and Sister. We all own separate businesses. Mine is B2B, my Father is a freelance architect, my Brother is a plumber, my Sister is a CPA. This is pretty much standard practice for what is required from a franchisee for a franchiser, as well. It may not apply to all businesses, but that can be easily determined by anyone reviewing this list, unless they're complete idiots. So, thank you, Mr. Obvious.",
"title": ""
},
{
"docid": "eaa2180e94ca419c10d2db37381389b7",
"text": "I'm not directly affiliated with the company (I work for one of the add-on partners) but I can wholeheartedly recommend Xero for both personal and business finances. Their basis is to make accounting simple and clean, without sacrificing any of the power behind having the figures there in the first place.",
"title": ""
},
{
"docid": "d7a6eff56f3a33ccc3d36c129fba03cd",
"text": "\"Although they may have some similar functions, CPAs and Enrolled Agents operate in two rather different areas of the accounting \"\"space.\"\" CPAs deal with financial statements, usually of corporations. They're the people you want to go to if you are making an investment, or if you own your own business, and need statements of pretax profit and loss prepared. Although a few of them are competent in taxation, the one thing many of them are weak at is tax rules, and this is where enrolled agents come in. Enrolled agents are more concerned with personal tax liability. They can 1) calculate your income taxes, and 2) represent you in hearings with the IRS because they've taken courses with IRS agents, and are considered by them to be almost \"\"one of us.\"\" Many enrolled agents are former IRS agents, actually. But they are less involved with corporate accounting, including things that might be of interest to stock holders. That's the CPA's province.\"",
"title": ""
},
{
"docid": "1dc280dc659eba1a66c2474e3a5ccbfd",
"text": "It depends on the person. i will take turbo tax over any mediocre or poor accountant ANY DAY. You get consistent, accurate tax preparation with the software (desktop - not the online version) I was in a housing rental partnership with my brothers and one of them insisted on using his accountant... what a mistake. I have been using turbo tax for 10+ years and have always been happy. It handles my non trivial situation with ease: I am happy with it but have to admit I don't have a good accountant to compare it to. I see no reason to go to an accountant except for planning purposes. Just for tax prep it is more than worth it and more than you will need.",
"title": ""
},
{
"docid": "668cecf9dd78bc8eeb8ac981a1655342",
"text": "Take a look at http://en.wikipedia.org/wiki/Comparison_of_accounting_software, in particular the rows with a market focus of 'personal'. This is probably one of the more complete lists available, and shows if they are web-based (like Mint) or standalone (like Quicken or Microsoft Money).",
"title": ""
},
{
"docid": "32b44a14f4784baafbf92a7751d9d834",
"text": "You're correct, there's always a conflict of interest in private professions whether you're a CPA, doctor or lawyer. There's always a possibility of backroom dealings. The only true response is that governmental bodies like the SEC, IRS and otherwise affiliated private organizations like the AICPA can take away your license to practice, send you to jail, or fine you thousands of dollars and ruin your life - if you're caught. I would personally draw a line between publicly traded corporations, amoral as you said, and public accounting. A CPA firm's responsibility is to the public even though they aren't a governmental body. Accounting records are required to do business with banks and the IRS. Without public confidence in the profession, CPA firms wouldn't exist. It's truly an incentive to do a good job and continually gain confidence. They incidentally make money along the way.",
"title": ""
},
{
"docid": "b2c2a2438b925a7ca203cf52bfabeaf3",
"text": "You really shouldn't be using class tracking to keep business and personal operations separate. I'm pretty sure the IRS and courts frown upon this, and you're probably risking losing any limited liability you may have. And for keeping separate parts of the business separate, like say stores in a franchise, one approach would be subaccounts. Messy, I'm sure.",
"title": ""
}
] |
fiqa
|
e0bf1d41d35f5a6a6ea31d5618213989
|
Taxable income on full-time job + business earnings
|
[
{
"docid": "2cb5e43eba512b55cfa5d13bc941d656",
"text": "In Australia, any income you earn is taxable despite where it came from. Using your example your taxable income is $70,000. Keep in mind that with a business even as a sole trader any business expenses that contribute to the earning of your business income is deductible, reducing the final amount of tax you'll have to pay. The ATO website has lots of good information and examples to look at including tax rates. If your total income is pushing into a higher tax bracket over 30c tax per $1 earned, it may be worth looking at shifting your business to operate under a company structure that just has a fixed tax rate around 30c per $1. That said, for me, I don't want the paperwork overhead of a company yet so I'm running my side business as a sole trader too. I'd rather do that and keep it easy for now while my business gets profitable that waste time on admin structures for tax reasons even if in the shortterm it may mean slightly higher tax. In the end, you only pay tax on profit (income minus expenses) as opposed to raw/gross income. For more info there are good books in the bookshops or local library (to read free) on starting a business on the side while still working. They discuss these issues too.",
"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": "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": "a12fef26783efd9373ad54fafc4a0211",
"text": "Please do not focus solely on income tax, and ignore all of the other taxes that businesses need to pay. Payroll taxes for example. If I make $15/hr, I cost my employer more than this in reality.",
"title": ""
},
{
"docid": "e948ca5b9558c42927b25e6330a3ae74",
"text": "\"The real question you're asking is how you can work for your business. You cannot. Whether your \"\"friend\"\" pays you or not is entirely irrelevant. Claiming your work-related earnings as interest/dividend will make it also a tax fraud, in addition to the immigration violation (i.e.: not only deportation but also potentially jail time).\"",
"title": ""
},
{
"docid": "b54f359812447b459ce484e396958a5f",
"text": "Alright, IRS Publication 463: Travel, Entertainment, Gift, and Car Expenses Business and personal use. If you use your car for both business and personal purposes, you must divide your expenses between business and personal use. You can divide your expense based on the miles driven for each purpose. Example. You are a sales representative for a clothing firm and drive your car 20,000 miles during the year: 12,000 miles for business and 8,000 miles for personal use. You can claim only 60% (12,000 ÷ 20,000) of the cost of operating your car as a business expense Obviously nothing helpful in the code. So I would use option 1, weight the maintenance-related mileage by the proportion of business use. Although if you use your car for business a lot (and perhaps have a spouse with a car), an argument could be made for 3. So I would consider my odds of being audited (even lower this year due to IRS budget cuts) and choose 1 or 3. And of course never throw anything away until you're room temperature.",
"title": ""
},
{
"docid": "28ca8044728004376da120c7f572a56f",
"text": "\"It doesn't generally matter, and I'm not sure if it is in fact in use by the IRS other than for general statistics (like \"\"this year 20% of MFJ returns were with one spouse being a 'homemaker'\"\"). They may be able to try and match the occupation and the general levels and types of income, but for self-employed there's a more precise and reliable field on Schedule C and for employees they don't really need to do this since everything is reported on W2 anyway. So I don't think they even bother or give a lot of value to such a metric. So yes, I'm joining the non-authoritative \"\"doesn't matter\"\" crowd.\"",
"title": ""
},
{
"docid": "eee3787af4484907157a31db91c64902",
"text": "You need to register as self-employed with HMRC (it is perfectly fine to be self-employed and employed by an employer at the same time, in exactly your kind of situation). Then, when the income arrives you will need to declare it on your yearly tax return. HMRC information about registering for self-employment and declaring the income is here: https://www.gov.uk/working-for-yourself/overview There's a few extra hoops if your clients are outside the UK; the detail depends on whether they are in the EU or not. More details about this are here: https://www.gov.uk/online-and-distance-selling-for-businesses/selling-overseas .",
"title": ""
},
{
"docid": "71bd8b7bb71148feb7f19174d08ae7fa",
"text": "\"When I have a question about my income taxes, the first place I look is generally the Giant Book of Income Tax Information, Publication 17 (officially called \"\"Your Federal Income Tax\"\"). This looks to be covered in Chapter 26 on \"\"Car Expenses and Other Employee Business Expenses\"\". It's possible that there's something in there that applies to you if you need to temporarily commute to a place that isn't your normal workplace for a legitimate business reason or other business-related travel. But for your normal commute from your home to your normal workplace it has this to say: Commuting expenses. You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. These costs are personal commuting expenses. You cannot deduct commuting expenses no matter how far your home is from your regular place of work. You cannot deduct commuting expenses even if you work during the commuting trip.\"",
"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": "9ae88354d918c5f09d1b21baec41180e",
"text": "\"Take a look at IRS Publication 15. This is your employer's \"\"bible\"\" for withholding the correct amount of taxes from your paycheck. Most payroll systems use what this publication defines as the \"\"Percentage Method\"\", because it requires less data to be entered into the system in order to correctly compute the amount of withholding. The computation method is as follows: Taxes are computed \"\"piecewise\"\"; dollar amounts up to A are taxed at X%, and then dollar amounts between A and B are taxed at Y%, so total tax for B dollars is A*X + (B-A)*Y. Here is the table of rates for income earned in 2012 on a daily basis by a person filing as Single: To use this table, multiply all the dollar amounts by the number of business days in the pay period (so don't count more than 5 days per week even if you work 6 or 7). Find the range in which your pay subject to withholding falls, subtract the \"\"more than\"\" amount from the range, multiply the remainder by the \"\"W/H Pct\"\" for that line, and add that amount to the \"\"W/H Base\"\" amount (which is the cumulative amount of all lower tax brackets). This is the amount that will be withheld from your paycheck if you file Single or Married Filing Separately in the 2012 TY. If you file Married Filing Jointly, the amounts defining the tax brackets are slightly different (there's a pretty substantial \"\"marriage advantage\"\" right now; withholding for a married person in average wage-earning range is half or less than a person filing Single.). In your particular example of $2500 biweekly (10 business days/pp), with no allowances and no pre-tax deductions: So, with zero allowances, your employer should be taking $451.70 out of your paycheck for federal withholding. Now, that doesn't include PA state taxes of 3.07% (on $2500 that's $76.75), plus other state and federal taxes like SS (4.2% on your gross income up to 106k), Medicare/Medicaid (1.45% on your entire gross income), and SUTA (.8% on the first $8000). But, you also don't get a refund on those when you fill out the 1040 (except if you claim deductions against state income tax, and in an exceptional case which requires you to have two jobs in one year, thus doubling up on SS and SUTA taxes beyond their wage bases). If you claim 3 allowances on your federal taxes, all other things being equal, your taxable wages are reduced by $438.45, leaving you with taxable income of $2061.55. Still in the 25% bracket, but the wages subject to that level are only $619.55, for taxes in the 25% bracket of $154.89, plus the withholding base of $187.20 equals total federal w/h of $342.09 per paycheck, a savings of about $110pp. Those allowances do not count towards other federal taxes, and I do not know if PA state taxes figure these in. It seems odd that you would owe that much in taxes with your withholding effectively maxed out, unless you have some other form of income that you're reporting such as investment gains, child support/alimony, etc. With nobody claiming you as a dependent and no dependents of your own, filing Single, and zero allowances on your W-4 resulting in the tax withholding above, a quick run of the 1040EZ form shows that the feds should owe YOU $1738.20. The absolute worst-case scenario of you being claimed as a dependent by someone else should still get you a refund of $800 if you had your employer withhold the max. The numbers should only have gotten better if you're married or have kids or other dependents, or have significant itemized deductions such as a home mortgage (on which the interest and any property taxes are deductible). If you itemize, remember that state income tax, if any, is also deductible. I would consult a tax professional and have him double-check all your numbers. Unless there's something significant you haven't told us, you should not have owed the gov't at the end of the year.\"",
"title": ""
},
{
"docid": "b2ec0e4cfbb63734217e34fd4fd9f04d",
"text": "You are in business for yourself. You file Schedule C with your income tax return, and can deduct the business expenses and the cost of goods sold from the gross receipts of your business. If you have inventory (things bought but not yet sold by the end of the year of purchase), then there are other calculations that need to be done. You will have to pay income tax as well as Social Security and Medicare taxes (both the employee's share and the employer's share) on the net profits from this business activity.",
"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": "2c3f715ad21d7342bb9dcc0b681bad51",
"text": "\"As ApplePie discusses, \"\"tax bracket\"\" without any modifiers refers to a single jurisdiction's marginal tax rate. In your case, this is either your California's \"\"tax bracket\"\" or your Federal \"\"tax bracket\"\" (not including marginal Social Security and Medicare taxes). But if someone says \"\"combined state and federal tax bracket\"\", they probably mean the combination of your state and federal income tax brackets (again, lot including sales taxes, business and occupational taxes, social security taxes, and medicare taxes). The math to combine the state and federal marginal tax rates is a bit tricky, because most people can deduct either their state and local income taxes, or their state and local general sales taxes when computing their income for federal income tax purposes. (The federal \"\"alternative minimum tax\"\" restricts this deduction for some people.) For a single person earning $ 100,000 of salaries and wages in California, whose state income taxes are close to their standard deduction, the calculations for the combined marginal income tax rate look something like this: As mentioned above, this understates the tax bite on marginal \"\"earned income\"\". To find the true marginal rate, we need to add in Social Security taxes, Medicare taxes, sales taxes, and business & occupation taxes. The Social Security and Medicare taxes are sometimes called \"\"self employment taxes\"\". This math omits unemployment insurance and workers' compensation insurance, because those taxes are typically capped well below $ 100,000 per year of income. This math also omits B & O taxes, because this question is California specific. If an employer wishes to increase an employee's pay by $ 1,076.50, the first $ 76.50 will go to the employer's share of Social Security and Medicare taxes. The remaining $ 1,000.00 will be subject to the combined marginal income tax rate discussed above, plus will have $ 76.50 go to the employee's share of Social Security and Medicare taxes. The employee might buy some extra things with some of their extra money, and pay sales tax on them. In 2016, a 9 % sales tax rate was common in California's largest cities. The IRS estimated that (for a single person with no dependents making $ 100,000 per year who did not buy a boat, RV, motor vehicle, or major home construction), about 9 % of their marginal gross income was subject to sales tax.\"",
"title": ""
},
{
"docid": "484ba9dcfc97d92782ff077f49821d12",
"text": "\"Yep. You're single, you're possibly still a dependent on your parent's taxes (in lieu of rent), and you're finally bringing home bacon instead of bacon bits. Welcome to the working world. Let's say your gross salary is the U.S. median of $50,000. With bi-weekly checks (26 a year; common practice) you're getting $1923.08 per paycheck. In the 2013 \"\"Percentage Method\"\" tax tables, here's how your federal withholding is calculated as a single person paid biweekly: Federal taxes are computed piecewise; the amount up to A is taxed at X%, then the amount between A and B is taxed at Y%, so if you make $C, between A and B, the tax is (A*X) + (C-A)*Y. The amount A*X is included in the \"\"base amount\"\" for ease of calculation. Back to our example; let's say you're getting $1923.08 gross wages per check. That puts you in the 25% marginal bracket. You pay the sum of all lesser brackets (which is the \"\"base amount\"\" of the 25% bracket), plus the 25% marginal rate on every dollar that falls within the bracket. That's 191.95 + (1923.08 - 1479) * .25 = 191.95 + (444.08 * .25) = 191.95 + 111.02 = $302.97 per paycheck. The \"\"effective\"\" tax rate on the total amount, as if you were being charged a flat tax, is 15.75%, and this is just for the federal income tax. Add to this MA state income taxes (5.25% flat tax), FICA (aka Medicare; 1.45% flat) and SECA (aka Social Security; 6.2% up to a \"\"wage base\"\" that $50k doesn't even approach), and your effective tax rate on each dollar you earn is 15.75% + 5.25% + 1.45% + 6.2% = 28.65%. This doesn't include any state unemployment taxes that may be withheld separately, but as the rate I come up with is pretty darn close to what you've figured (meaning I slightly overestimated your gross income and thus your effective tax rate), my bet is that SUTA's either employer-paid in MA, or it's just part of MA state income tax. It gets better, at least at the federal level: The amount of your state income taxes is tax-deductible at the federal level if you itemize your deductions. That may not be a factor for you as you'd have to come up with more than $6,100 of other tax-deductible expenses to make itemizing the better option than taking the standard deduction (big-ticket items are mortgage expenses other than principal payments, hospital stays such as for childbirth or major accident, and state and local taxes such as sales, property and income). If you can claim yourself as a dependent (meaning your parents can't), then $150 of each check ($3,900 of your annual salary) is no longer taxed for federal withholding, lowering the amount of money taxed at the 25% marginal rate. You effectively save $37.50 biweekly ($975 annually) in taxes. Get married and file jointly, and your spouse, her personal exemption, and an extra standard deduction amount (if you don't itemize) go on your taxes. The tax rates for married couples filing jointly are also lower; they're currently calculated (or were in 2012) to be the same as if two equal earners were to file separately, so if your spouse doesn't work, your taxes on the single income are calculated at the rates you'd get if you earned half as much. It doesn't work out to half the taxes, but it is a significant \"\"marriage advantage\"\". Have kids, and each one is another little $3,900 tax write-off. It's nowhere near the cost of having or raising the child, but it helps, and having kids isn't about the money. Owning a home, making charitable deductions, having medical expenses, etc are a toss-up. The magic number in 2013 is $12,200 for a married couple, $6,100 for a single person. If your mortgage interest, insurance premiums, property taxes, medical expenditures, charitable donations, any contributions from your take-home pay to a tax-deferred savings account (typically these accounts are paid into by your employer as a \"\"pre-tax deduction\"\" and never show up as taxable income, but you could just as easily move money from your take-home pay into tax-deferred savings) and any other tax-deductible payments add up to more than 12 large, then itemize. If not, take your standard deduction. As a single taxpayer just starting out in life, you probably don't have any of these types of expenditures, certainly not enough to give up the SD. I did the math on my own taxes in 2012, and was surprised at how little the government actually gets of my paycheck when all's said and done. Remember back in the summer of 2012 when everyone was mad at Romney for making millions and only paying an effective income tax rate of 14%, which was compared to the middle class's marginal rate of 25-28%? Well, my family of 3, living on a little more than the median income from one earner (me), taking the married standard deduction, three personal exemptions, and a little extra for student loan interest, paid an effective federal income tax rate of something like 3.5%. Of course, the FICA and SS taxes don't allow any deductions (not even for retirement savings), so add in the 4.2% SS (in 2012) and 1.45% FICA and the full federal gimme was more like 9-10%.\"",
"title": ""
},
{
"docid": "66411ed6872cf336df370d0115b72910",
"text": "You have interpreted the instructions correctly. The issue with two jobs at the same time, is that that second job will be taxed at the highest rate; but the second employer has no idea what the other position is paying you. If you make enough to be in the 15% tax bracket for your main job that means: some of the money from each paycheck is taxed zero; some is taxed at 10% and the last dollars are taxed at 15%. But the second job should withhold for taxes to cover all the income at 15%. To avoid problems you should look at the tax form you are filling out this year. Look at the total tax you paid. Not the refund or the amount you owed when you filed but your total tax paid. The government allows a safe harbor if you make sure that in 2016 you have the same amount withheld this calendar year. If that isn't enough, you will owe money in April 2017, but you will not have to pay a penalty. After you have a couple of paycheck from your main employer, check to see that if you work the rest of the year at that same rate that the federal withholding will make the safe harbor. If you will make it, you don't have to worry about the penalty. If you will fall short, adjust the w-4 accordingly.",
"title": ""
},
{
"docid": "4de05fffb7ec3efd621672cdc743e956",
"text": "\"One way to do these sorts of calculations is to use the spreadsheet version of IRS form 1040 available here. This is provided by a private individual and is not an official IRS tool, but in practice it is usually accurate enough for these purposes. You may have to spend some time figuring out where to enter the info. However, if you enter your self-employment income on Schedule C, this spreadsheet will calculate the self-employment tax as well as the income tax. An advantage is that it is the full 1040, so you can also select the standard deduction and the number of exemptions you are entitled to, enter ordinary W-2 income, even capital gains, etc. Of course you can also make use of other tax software to do this, but in my experience the \"\"Excel 1040\"\" is more convenient, as most websites and tax-prep software tend to be structured in a linear fashion and are more cumbersome to update in an ad-hoc way for purposes like tax estimation. You can do whatever works for you, but I would recommend taking a look at the Excel 1040. It is a surprisingly useful tool.\"",
"title": ""
},
{
"docid": "36cb12699bb468880569a4c53d75b940",
"text": "Then the USA can respond by pulling troops out of these countries and NATO. Think of all the carbon we will save not sending all those planes and tanks and people in other countries. They can spend some of their budgets on protection then, maybe the French can make a green Jet to defend their country.",
"title": ""
}
] |
fiqa
|
b146b4797f2fd54e7d300a1654bb78ee
|
How can I lookup the business associated with a FEIN?
|
[
{
"docid": "be563df8add84c300bc12ad439293eec",
"text": "I think much of that info is hidden behind pay-walls. Here is one site I've found. http://www.feinsearch.com/ Another that is for non-profits only is guidestar. http://www.guidestar.org/rxg/products/nonprofit-data-solutions/product-information/guidestar-premium/advanced-nonprofit-search.aspx",
"title": ""
},
{
"docid": "28f1eeb458705240b060a9534edfc293",
"text": "\"In most cases you cannot do \"\"reverse lookup\"\" on tax id in the US. You can verify, but for that you need to have more than just the FEIN/SSN. You should also have a name, and some times address. Non-profits, specifically, have to publish their EIN to donors, so it may be easier than others to identify those. Other businesses may not be as easy to find just by EIN.\"",
"title": ""
},
{
"docid": "7a8387b86082efe0612f9fd4a3c72bbf",
"text": "If the organization is a non-profit. You can search by EIN on Charity Navigator's website FOR FREE. https://www.charitynavigator.org/",
"title": ""
},
{
"docid": "dc2b1071dc0a591bb00427ba3c3f5688",
"text": "If it is Texas company, you can try doing a taxable entity search on the Texas Comptroller website.",
"title": ""
}
] |
[
{
"docid": "8f4c080735d5f2b965340b162ba88a58",
"text": "Google is your friend. If you buy me a beer, I might be as well. By the way DOD is the ticker. Dogs of the Dow ETF",
"title": ""
},
{
"docid": "0ff87b4504eaa0cf33d2b696582f47ef",
"text": "\"I think the \"\"right\"\" way to approach this is for your personal books and your business's books to be completely separate. You would need to really think of them as separate things, such that rather than being disappointed that there's no \"\"cross transactions\"\" between files, you think of it as \"\"In my personal account I invested in a new business like any other investment\"\" with a transfer from your personal account to a Stock or other investment account in your company, and \"\"This business received some additional capital\"\" which one handles with a transfer (probably from Equity) to its checking account or the like. Yes, you don't get the built-in checks that you entered the same dollar amount in each, but (1) you need to reconcile your books against reality anyway occasionally, so errors should get caught, and (2) the transactions really are separate things from each entity's perspective. The main way to \"\"hack it\"\" would be to have separate top-level placeholder accounts for the business's Equity, Income, Expenses, and Assets/Liabilities. That is, your top-level accounts would be \"\"Personal Equity\"\", \"\"Business Equity\"\", \"\"Personal Income\"\", \"\"Business Income\"\", and so on. You can combine Assets and Liabilities within a single top-level account if you want, which may help you with that \"\"outlook of my business value\"\" you're looking for. (In fact, in my personal books, I have in the \"\"Current Assets\"\" account both normal things like my Checking account, but also my credit cards, because once I spend the money on my credit card I want to think of the money as being gone, since it is. Obviously this isn't \"\"standard accounting\"\" in any way, but it works well for what I use it for.) You could also just have within each \"\"normal\"\" top-level placeholder account, a placeholder account for both \"\"Personal\"\" and \"\"My Business\"\", to at least have a consistent structure. Depending on how your business is getting taxed in your jurisdiction, this may even be closer to how your taxing authorities treat things (if, for instance, the business income all goes on your personal tax return, but on a separate form). Regardless of how you set up the accounts, you can then create reports and filter them to include just that set of business accounts. I can see how just looking at the account list and transaction registers can be useful for many things, but the reporting does let you look at everything you need and handles much better when you want to look through a filter to just part of your financial picture. Once you set up the reporting (and you can report on lists of account balances, as well as transaction lists, and lots of other things), you can save them as Custom Reports, and then open them up whenever you want. You can even just leave a report tab (or several) open, and switch to it (refreshing it if needed) just like you might switch to the main Account List tab. I suspect once you got it set up and tried it for a while you'd find it quite satisfactory.\"",
"title": ""
},
{
"docid": "9e6f5a82008f9330d2061b78d7cbadd5",
"text": "I spent a while looking for something similar a few weeks back and ended up getting frustrated and asking to borrow a friend's Bloombterg. I wish you the best of luck finding something, but I wasn't able to. S&P and Morningstar have some stuff on their site, but I wasn't able to make use of it. Edit: Also, Bloomberg allows shared terminals. Depending on how much you think as a firm, these questions might come up, it might be worth the 20k / year",
"title": ""
},
{
"docid": "bb00d5b05640be0a5d62991982d1123f",
"text": "\"90% sounds like \"\"principal place of business\"\" but check these IRS resources to make sure.\"",
"title": ""
},
{
"docid": "a226142728bbc8549afc706baf5fdc7c",
"text": "\"Depending on how the check was made out, you may be able to file a DBA (\"\"doing business as\"\"), which would give you the business name locally. Then open an account under that name and deposit the check. Or simply go back to the customer and say \"\"hey, I don't have yhe company bak account open yet; could I exchange this check for one made out to me personally?\"\" That's how I've been handling hobby income under a company name. (I really do ned to file that DBA!)\"",
"title": ""
},
{
"docid": "fe924b06b4f744985a5c1a50c6871e3b",
"text": "\"In your words, you want to \"\"easily determine whether an item was purchased as part of our individual accounts, or our combined family account.\"\" It's not clear exactly to me what kind of reporting you're trying to get. (I find a useful approach here to be to start with the output you're trying to get from a system, and then see how that maps to the input you want to give the system.) Here's some possibilities:\"",
"title": ""
},
{
"docid": "b528f29ebaead09e2665fc7058ec1a55",
"text": "Institute of Supply Management, specifically their Report on Business. Good forward looking indicator. As far as the weekly report, I'd probably read it, maybe even contribute, but I more of a lurker on this sub. I saw your question and have had some similar experiences so I thought I could help you out.",
"title": ""
},
{
"docid": "23b8c89a673ed3d13114a805d1a96364",
"text": "If you're researching a publicly traded company in the USA, you can search the company filings with the SEC. Clicking 'Filings' should take you here.",
"title": ""
},
{
"docid": "caf9996540ad9416b6f19f1b62ae2743",
"text": "\"Short answer - matching your firms stock record or box to the records of a depository or fund family. Any differences are referred to as \"\"breaks\"\" and need to be resolved promptly otherwise action like covering or moving to suspsense are required. There are rules surrounding suspense, that may be valuable reading. Let me know if you have any specifics or want more detail. I made a few assumptions but that is the broadest view of a firms asset reconciliation (FINRA passed some recent rules that take this even deeper into \"\"firm\"\" accounts).\"",
"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": "6e1d042d845a3ded83660b9fd7eb6eb0",
"text": "Consult your local Small Business Administration office - they may have resources that can help you find what you're looking for.",
"title": ""
},
{
"docid": "095938096f0729953b2f9a910c9744aa",
"text": "Hi, are you a business lawyer and do you happen to know the answer? I tried asking someone at a Small Business Center but I think he started getting annoyed at all my questions and starting becoming curt so I stopped asking even though I still wasn't clear on all the answers yet.",
"title": ""
},
{
"docid": "9b42ee8b333f4eda0048aaa07d6c5a1c",
"text": "Edgar Online is the SEC's reporting repository where public companies post their forms, these forms contain financial data Stock screeners allow you to compare many companies based on many financial metrics. Many sites have them, Google Finance has one with a decent amount of utility",
"title": ""
},
{
"docid": "fa264c0b4db8dbcd91ad2b8a7eedcc17",
"text": "I do know the business connection, but this article seems more political than business oriented. I'm just sick of the cesspool of anti-trump stuff on reddit leaking out of the typical subs. Everything policy wise can have an affect on the business climate, but that doesn't mean it's necessarily a business topic.",
"title": ""
},
{
"docid": "04f8c79101781d940bc848bc38ac0671",
"text": "S&P/TSX 60 VIX (CAD) is an equation and as the implied volatility of two close to the money TSX 60 options change, the output changes. This is why the intra-day price fluctuates on a graph like a traded product. Although VIXC can't be traded, it can still be used as an important signal for traders. The excerpt is from slide 12, more information can be found here. https://www.m-x.ca/f_publications_en/vixc_presentation_en.pdf Futures (stage 2) Options, ETFs, OTC Products (stage 3) have not been implemented.",
"title": ""
}
] |
fiqa
|
f23f5486c32226e833cf8245447d0a9c
|
How to Deduct Family Health Care Premiums Under Side Business
|
[
{
"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": "15034ead9413735215f730cb5e1fe918",
"text": "\"HSAs as they exist today allow a person to contribute tax deductible money (like a traditional IRA) to a savings account. The funds in the savings account can be spent tax free for qualified expenses. If the money is invested it also grows tax free. This means a discount on your cash health expenses of the amount you would have paid in taxes, which given your relative's income isn't likely to be very much. As HSAs exist today they must be paired to a qualified High Deductible Health Plan (HDHP). Many plans have a deductible that meets or exceeds the level set by the regulations but many plans waive the deductible for things like X-Rays; waiving the deductible causes most \"\"high deductible\"\" plans to not qualify for HSA accounts. There are other qualified HSA expenses like Long Term Care (LTC) insurance premiums that can also be spent tax and penalty free from HSA funds. At age 60 with low income an HSA serves little purpose because the tax savings is so marginal and an HDHP is required. That does not however mean that the scope of HSA availability should not be expanded. Just because this is not a silver bullet for everyone does not mean it is of no use to anyone.\"",
"title": ""
},
{
"docid": "5e56a48a9311e628a53102f33e136054",
"text": "Child care expenses aren't exactly deductible without the FSA, but if you can't use the FSA and end up paying them with after tax dollars, you can use these expenses to qualify for the Child and Dependent Care Tax Credit, which, depending on your circumstances, could save you more money than the FSA would have saved you.",
"title": ""
},
{
"docid": "ecbb430ddfcedf05f360e137448ae3c5",
"text": "You can use it for medical expenses even if you don't have a high deductible policy. It can cover prescriptions, copays, deductibles, co-insurance, dentist, orthodontics... As long as it is being used for an approved medical expense there is no tax or penalty. Yes it doesn't save you on the monthly service charges but it does allow you to cut your medical expenses for a while.",
"title": ""
},
{
"docid": "c3c0944e9e65e420b692ee0e47cded0d",
"text": "As others have pointed out, post-tax dollars are what you'll use. Just as a quick note, as you'll be using post-tax dollars; in the past, I've refused to take contractor plans because they almost always are inferior to what I've been able to get off the private exchange ehealthinsurance. A few people have written excellent articles on Get Rich Slowly here and here about them in detail if you want more information. Generally, contractors (and sometimes employees) are offered a few plans (3-4), and this health exchange gives you a little more freedom to pick your plan, which in your situation may help. It isn't always cheaper, but depending on your needs, you may obtain a better deal. Forgot to add this: this option has also made switching jobs easy as well since I don't have to pay COBRA. While it depends on the situation, this can sometimes come out significantly cheaper. For instance, if I were to take the employer health plan next year, I would lose ~$450 a month, whereas the private exchange option is ~$300. But, if I were to switch jobs, decide to opt for self-employment, or a layoff, the COBRA would be even higher than ~$450.",
"title": ""
},
{
"docid": "5ff1af280caefca969392dcb82bd928c",
"text": "First off, you should contact your health plan administrator as soon as possible. Different plans may interact differently with Medicare; any advice we could provide here would be tentative at best. Some of the issues you may face: A person with both Medicare and a QHP would potentially have primary coverage from 2 sources: Medicare and the QHP. No federal law addresses this situation. Under state insurance law an individual generally cannot collect full benefits from each of 2 policies that together pay more than an insured event costs. State law usually specifies how insurance companies will coordinate health benefits when a person has primary coverage from more than one source. In that situation, insurance companies determine which coverage is primary and which is secondary. It’s important to understand that a QHP is not structured to pay secondary benefits, nor are the premiums calculated or adjusted for secondary payment. In addition, a person with Medicare would no longer receive any premium assistance or subsidies under the federal law. While previous federal law makes it illegal for insurance companies to knowingly sell coverage that duplicates Medicare’s coverage when someone is entitled to or enrolled in Medicare Part A or Part B, there has been no guidance on the issue of someone who already has individual health insurance and then also enrolls in Medicare. We and other consumer organizations have asked state and federal officials for clarification on this complicated situation. As such, it likely is up to the plan how they choose to pay - and I wouldn't expect them to pay much if they think they can avoid it. You may also want to talk to someone at your local Medicare branch office - they may know more about your state specifically; or someone in your state's department of health/human services, or whomever administers the Exchanges (if it's not federal) in your state. Secondly, as far as enrolling for Part B, you should be aware that if she opts not to enroll in Part B at this time, if your wife later chooses to enroll before she turns 65 she will be required to pay a penalty of 10% per 12 month period she was not enrolled. This will revert to 0 when she turns 65 and is then eligible under normal rules, but it will apply every year until then. If she's enrolling during the normal General Enrollment period (Jan-March) then if she fails to enroll then she'll be required to pay that penalty if she later enrolls; if this is a Special Enrollment Period and extends beyond March, she may have the choice of enrolling next year without penalty.",
"title": ""
},
{
"docid": "061c88bc7c25999f41e8622fc2c2bd64",
"text": "The rebate amount is a non-qualified distribution: IRS Pub 969 describes how the HSA works: Reporting Distributions on Your Return How you report your distributions depends on whether or not you use the distribution for qualified medical expenses (defined earlier). If you use a distribution from your HSA for qualified medical expenses, you do not pay tax on the distribution but you have to report the distribution on Form 8889. However, the distribution of an excess contribution taken out after the due date, including extensions, of your return is subject to tax even if used for qualified medical expenses. Follow the instructions for the form and file it with your Form 1040 or Form 1040NR. If you do not use a distribution from your HSA for qualified medical expenses, you must pay tax on the distribution. Report the amount on Form 8889 and file it with your Form 1040 or Form 1040NR. If you have a taxable HSA distribution, include it in the total on Form 1040 or Form 1040NR, line 21, and enter “HSA” and the amount on the dotted line next to line 21. You may have to pay an additional 20% tax on your taxable distribution. I looked at several plans regarding how to handle mistaken distributions: example A What if I accidentally use my HSA Visa debit card for a non-qualified expense? To fix this problem, just bring that same amount into any local branch and tell us it was a Mistaken Distribution. We can then put the funds back into your HSA and correct the problem. example B You’re allowed to correct mistaken HSA withdrawals when there is clear and convincing evidence that amounts were distributed from an HSA because of a mistake of fact due to reasonable cause. You can correct the mistake by repaying the withdrawal no later than April 15 following the first year that you knew or should have known that the withdrawal was a mistake. When a correction is made, the mistaken withdrawal does not have to be included in gross income or be subject to the 6 percent additional tax, and the repayment does not count as an excess contribution. If an error is made by SelectAccount in its role as the administrator, SelectAccount will be responsible for taking appropriate corrective action. Check with your plan trustee on their procedure to fix the mistaken withdrawal.",
"title": ""
},
{
"docid": "f0a4ee5d36563070fdd99129bf077a2e",
"text": "COBRA premiums are not deductible on 1040 line 29; to qualify, the IRS says the insurance plan must be in your name (COBRA is in your former employer's name). H&R Block confirms this.",
"title": ""
},
{
"docid": "b2ec0e4cfbb63734217e34fd4fd9f04d",
"text": "You are in business for yourself. You file Schedule C with your income tax return, and can deduct the business expenses and the cost of goods sold from the gross receipts of your business. If you have inventory (things bought but not yet sold by the end of the year of purchase), then there are other calculations that need to be done. You will have to pay income tax as well as Social Security and Medicare taxes (both the employee's share and the employer's share) on the net profits from this business activity.",
"title": ""
},
{
"docid": "f2ff641ca5fb5d9705c767b1ebe02e52",
"text": "I don't think you're stupid, evil, bad or anything like that. I'm sure in fact that you are an intelligent, nice person who only wants the best for everyone. I just think that you are in a willful mannor refusing to understand the difference between insurance and healthcare. It's not that you are incapable, it is that you simply refuse to do so. You are doing so to justify making the bad guy out of an industry whose goal is to make health-care accessible to as many people as possible by spreading out the cost of health-emergencies over time, which is mis-directed anger. I fully appreciate and understand that most health-care is payed for via insurance. However, this is entirely an artifact of business-tax deductions which make it cheaper for individuals to accept part of their compensation in the form of health insurance benefits. Health care and insurance aren't intrinsically inseparable, they are bound together in the US due to the tax code. So what you should be arguing for is the removal of business health-care tax deductions, and direct financial assistance for the poor. This would make insurance and healthcare a more competitive market, which would in turn drive costs down, and by giving the money directly to the impoverished more of the benefit would reach them, rather than creating some huge bureaucracy that it has to be filtered through first. But instead you are choosing to vilify a industry for not handing out free health-care, which is misguided at best.",
"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": "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": "58e9f8e3ec0964b68da6ac0df0d26c12",
"text": "While the OP disses the health insurance coverage offered through his wife's employer as a complete rip-off, one advantage of such coverage is that, if set up right (by the employer), the premiums can be paid for through pre-tax dollars instead of post-tax dollars. On the other hand, Health insurance premiums cannot be deducted on Schedule C by self-employed persons. So the self-employed person has to pay both the employer's share as well as the employee's share of Social Security and Medicare taxes on that money. Health insurance premiums can be deducted on Line 29 of Form 1040 but only for those months during which the Schedule C filer is neither covered nor eligible to be covered by a subsidized health insurance plan maintained by an employer of the self-employed person (whose self-employment might be a sideline) or the self-employed person's spouse. In other words, just having the plan coverage available through the wife's employment, even though one disdains taking it, is sufficient to make a Line 29 deduction impermissible. So, AGI is increased. Health insurance premiums can be deducted on Schedule A but only to the extent that they (together with other medical costs) exceed 10% of AGI. For many people in good health, this means no deduction there either. Thus, when comparing the premiums of health insurance policies, one should pay some attention to the tax issues too. Health insurance through a spouse's employment might not be that bad a deal after all.",
"title": ""
},
{
"docid": "95aa4d5b9f66c9d973aae8887df04cbd",
"text": "It is important to remember that the tax brackets in the U.S. are marginal. This means that the first part of your income is taxed at 10%, the next part at 15%, next at 25%, etc. Therefore, if you find yourself just on the edge of a tax bracket, it really does not make any difference which side of that line you end up falling on. That having been said, of course, reducing your taxable income reduces your taxes. There are lots of deductions you can take, if you qualify. Depending on what type of health insurance coverage you have, a Health Savings Account (HSA) is a great way to shelter some income from taxes. Charitable contributions are also an easy way to reduce your taxes; you don't really personally benefit from them, but if you'd rather send your money to a good cause than to Uncle Sam, that's an easy way to do it.",
"title": ""
},
{
"docid": "e6be25a6e20691553af8ecd7cda74ce5",
"text": "You have two options for deducting childcare expenses in the US. Both are discussed in Publication 503. You can claim the Childcare Tax Credit using Form 2441, which has instructions here. First, you can enroll in a dependent care FSA. You enroll in this through your employer; either you or your spouse can. $5000 can be deducted pre-tax from your paycheck to pay for childcare this way. This does not have income limits. Second, you can claim a credit based on expenses up to $3000 per child, up to two children ($6000 total), for the Child Care Tax Credit. This is combinable with the FSA, only for the last $1000 if you have 2+ children (so $6000 total between the two). That has income limits to claim over 20% of the credit; so if you are in the 25% bracket, you will only get to claim 20% of the total, either $200 if you have an FSA or $1200 if you do not. Both spouses must work full time or have other qualifying details (such as being a full time student) in order to qualify for the credit; see publication 503 above for more information.",
"title": ""
},
{
"docid": "b9f0d0ad1f69afb5a32d75cd2a711659",
"text": "Moody's came out with an analysis today saying the requirement could be slightly good for for-profit hospitals (Bad-debt charges will decline. The expansion of healthcare coverage under the law will lessen for-profit hospital operators’ exposure to bad debts, which in turn will improve margins and cash flow. However, we expect that the growth rate of Medicare reimbursements will also slow down, offsetting the benefit of lower bad-debt expense and making the overall credit impact of the ruling neutral to slightly positive), negative for pharmaceutical cos. (Pharmaceutical companies will continue to pay for the full adoption of the Affordable Care Act in the form of higher rebates to the government for Medicaid drug costs, discounts to seniors covered under Medicare Part D drug plans and a new industry fee) and slightly negative for medical device firms (Beginning Jan. 1, 2013, US medical-device product sales will be subject to a 2.3% excise tax; the excise tax will be tax-deductible, resulting in an estimated effective tax rate of 1.5% on US device revenues).",
"title": ""
}
] |
fiqa
|
0972231539410b5d6aa626b41462a776
|
Claiming car as a business expense in the UK
|
[
{
"docid": "49be38301e97d9b2978e78799196a64a",
"text": "\"I'm going to look just at purchase price. Essentially, you can't always claim the whole of the purchase price (or 95% your case) in the year (the accounting period) of purchase, but you get a percentage of the value of the car each year, called writing down allowance, which is a capital allowance. It is similar to depreciation, but based on HRMC's own formula. In fact, it seems you probably can claim 95% of the purchase price, because the value is less than £1000. The logic is a bit involved, but I hope you can understand it. You could also claim simplified expenses instead, which is just based on a rate per mile, but you can't claim both. Note, by year I mean whatever your account period is. This could be the normal financial year, but you would probably have a better idea about this. See The HMRC webpage on this for more details. The big idea is that you record the value of any assets you are claiming writing down allowance on in one of a number of pools, that attract the same rate of writing down allowance, so you don't need to record the value of each asset separately. They are similar to accounts in accounting, so they have an opening balance, and closing balance. If you use an asset for personal use, it needs a pool to itself. HRMC call that a single asset pool. So, to start with, look at the Business Cars section, and look at the Rates for Cars section, to determine the rate you can claim. Each one links to a further article, which gives more detail if you need it. Your car is almost certainly in the special rate category. Special rate is 8% a year, main rate is 18%, and First year allowance is essentially 100%. Then, you look at the Work out what you can claim article. That talks you through the steps. I'll go through your example. You would have a pool for your car, which would end the account period before you bought the vehicle at zero (step 1). You then add the value of the car in the period you bought it (Step 2). You would reduce the value of the pool if you dispose of it in the same year (Step 3). Because the car is worth less than £1,000 (see the section on \"\"If you have £1,000 or less in your pool\"\"), you would normally be able to claim the whole value of the pool (the value of the car) in the first accounting period, and reduce the value of the pool to zero. As you use the car for personal use, you only claim 95% of the value, but still reduce the pool to zero. See the section on \"\"Items you use outside your business\"\". This £1000 is adjusted if your accounting period lasts more or less than 12 months. Once the pool is down to zero that it you don't need to think about it any more for tax purposes, apart from if you are claiming other motoring expenses, or if you sell it. It gets more complicated if the car is more expensive. I'll go through an example for a car worth £2,000. Then, after Step 3, on the year of purchase, you would reduce the value of the pool by 8%, and claim 95% of the reduction. This would be a 160 reduction, and 95%*160 = 152 claim, leaving the value of 1860 in the pool. You then follow the same steps for the next year, start with 1840 in the pool, reduce the value by 8%, then claim 95% of the reduction. This continues until you sell or dispose of the car (Step 3), or the value of the pool is 1000 or less, then you claim all of it in that year. Selling the car, or disposing of the car is discussed in the Capital allowances when you sell an asset article. The basic idea is that if you have already reduced the value of the pool to zero, the price you sell the car for is added you your profits for that year (See \"\"If you originally claimed 100% of the item\"\"), if you still have anything in the pool, you reduce the value of the pool by the sale value, and if it reduces to below zero (to -£200, say), you add that amount (£200, in this case), to your profits. If the value is above zero, you keep applying writing down allowances. In your case, that seems to just means if you sell the car in the same year you buy it, you claim the difference (or 95% of it) as writing down allowance, and if you do it later, you claim the purchase price in the year of purchase, and add 95% of the sale price to your profits in the year you sell it. I'm a bit unclear about starting \"\"to use it outside your business\"\", which doesn't seem to apply if you use it outside the business to start with. You can claim simplified expenses for vehicles, if you are a sole trader or partner, but not if you claim capital allowances (such as writing down allowances) on them, or you include a separate expense in your accounts for motoring expenses. It's a flat rate of 45p a mile for the first 10,000 miles, and 25p per mile after that, for cars, and 24p a mile for motorcycles. See the HRMC page on Simplifed Mileage expenses for details. For any vehicle you decide to either claim capital allowances claim running costs separately, or claim simplified mileage expenses, and \"\"Once you use the flat rates for a vehicle, you must continue to do so as long as you use that vehicle for your business.you have to stick with that decision for that vehicle\"\". In your case, it seems you can claim 95% of the purchase price in the accounting period you buy it, and if you sell it you add 95% of the sale price to your profits in that accounting period. It gets more complicated if you have a car worth more than £1000, adjusted for the length of the accounting period. Also, if you change how you use it, consult the page on selling selling an asset, as you may have disposed of it. You can also use simplified mileage expenses, but then you can't claim capital allowances, or claim running costs separately for that car. I hope that makes sense, please comment if not, and I'll try to adjust the explanation.\"",
"title": ""
}
] |
[
{
"docid": "fcea0195c525dd15d0979228c8159f02",
"text": "Use a limited company. Use the HMRC website for help on limited companies and get a good accountant for doing your taxes. Mixing your website income and personal income may make you pay a higher tax rate. You can take out expenses from the limited company, which are tax deductible. But if you group it in personal income it wouldn't be tax deductible. In a personal capacity you are 100% liable if your business goes bust and you owe debt. But for a limited company you are only liable for what you own i.e %age of shares. You can take on an investor if your business booms and it is easier if you do it through a limited company rather than through a personal endeavour.",
"title": ""
},
{
"docid": "8faf102c4cceb0254f9731411e2413c0",
"text": "If the firm treats you as an employee then they are treated as having a place of business in the UK and therefore are obliged to operate PAYE on your behalf - this rule has applied to EU States since 2010 and the non-EU EEA members, including Switzerland, since 2012. If you are not an employee then your main options are: An umbrella company would basically bill the client on your behalf and pay you net of taxes and NI. You potentially take home a bit less than you would being 100% independent but it's a lot less hassle and potentially makes sense for a small contract.",
"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": "6d8fae7ab371dc25faf4139cdf4ce360",
"text": "If you itemize your deductions then the interest that you pay on your primary residence is tax deductible. Also realestate tax is also deductible. Both go on Schedule A. The car payment is not tax deductible. You will want to be careful about claiming business deduction for home or car. The IRS has very strict rules and if you have any personal use you can disqualify the deduction. For the car you often need to use the mileage reimbursement rates. If you use the car exclusively for work, then a lease may make more sense as you can expense the lease payment whereas with the car you need to follow the depreciation schedule. If you are looking to claim business expense of car or home, it would be a very good idea to get professional tax advice to ensure that you do not run afoul of the IRS.",
"title": ""
},
{
"docid": "7384ba26029dc697a612316e7d27c1e7",
"text": "You are either VAT registered or you are not VAT registered. If you are not VAT registered, then you are not allowed to charge customers VAT, and you cannot reclaim VAT that you are paying. You are however allowed to deduct the cost of goods including VAT from your expenses. So if you buy a computer for £1000 + £200 VAT, and you can deduct the computer as an expense to reduce your profits that you pay income tax for, then the expense is £1,200 and not just £1,000. If you are VAT registered, then you MUST charge every customer 20% VAT. Business customers don't mind at all, but private customers will be happier if you don't charge VAT because your bills will be a lot lower. You take all the VAT that you received, then subtract all the VAT that you paid for business expenses and that you have invoices for, and send the remainder to HMRC four times a year. (The reason that businesses don't mind paying VAT is because they can in turn deduct the VAT they pay you from the VAT that they received and for every pound they give you, they give one pound less to HMRC). Note that when you have expenses that are deductible from your profits, you can now only deduct the cost excluding VAT. On the other hand, the VAT you receive doesn't count as income and doesn't lead to profits that you need to pay income tax for. It's your decision whether you want to be VAT registered or not, unless your revenue exceeds some limit (somewhere between £70,000 and £80,000 per year) where you must register for VAT.",
"title": ""
},
{
"docid": "bf6049ea982c6dc34eeb8fa8d6e68ac1",
"text": "Some proportion of the costs of a policy have little to no relationship to miles driven. Think of costs of underwriting, and more especially sales/marketing/client acquisition costs (auto insurance isn't in the same league as non-term life insurance (where the commissions and other selling expenses typically exceed the first year's worth of premiums), but the funny TV ads and/or agent commissions aren't free), as well as general business overhead. Also, as noted by quid, some proportion of claim risk isn't correlated to distance covered (think theft, flood, fire, etc.). There are also differences in the miles that are likely to be driven by a non-commercial/vehicle-for-hire driver who puts 25k miles a year vs. one who puts 7k per year. The former is generally going to be doing more driving at higher speeds on less-congested freeways while the latter will be doing more of their driving on crowded urban roads. The former pattern generally has a lower expected value of claims both due to having fewer cars per road-mile, fewer intersections and driveways, and also having any given collision be more likely to result in a fatality (paralysis or other lifetime disability claims are generally going to exceed what the insurer would pay out on a fatality).",
"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": "baafc7faa6bfbfcb4e5e51674043a1bd",
"text": "Assuming your country is the United States there is. See schedule C line 9 and the corresponding instructions. There are many rules associated with this, in some cases the entire purchase can be written off but typically if the truck is only used for business. Most people write off partial usage in the form of credits for mileage. You are best to consult with a CPA once your business earns a profit. Good luck.",
"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": "798170778594d0e501f31a16af9790d5",
"text": "\"Reimbursements for business expenses are generally not taxable, but the commute from home to the job and back is not considered business travel and if they're paying for that it is taxable income. I don't think carpooling changes that, but I am not a tax lawyer or accountant. The rest of your questions seem to be company policy issues. There is no \"\"should\"\" here. You aren't required to pick up the other guys, but he isn't required to reimburse those miles (or employ you) so think carefully about your priorities before pushing back. Never invoke what thou canst not banish.\"",
"title": ""
},
{
"docid": "f81ad22890ccc28b8d5635a494d7570b",
"text": "\"The government thought of that a long time ago, and has any loophole there plugged. Like if you set up a company to buy a car and then allow you to use it ... You can use the car for company business, like driving to a customer's office to make a sales call or delivery, and the cost of the car is then tax deductible. But the company must either prohibit personal use of the car, or keep a log of personal versus business use and the personal use becomes taxable income to you. So at best you'd get to deduct an expense here and then you'd have to add it back there for a net change in taxable income of zero. In general the IRS is very careful about personal use of business property and makes it tough to get away with a free ride. I'm sure there are people who lie about it and get away with it because they're never audited, but even if that causes you no ethical qualms, it's very risky. I don't doubt that there are people with very smart lawyers who have found loopholes in the rules. But it's not as simple as, \"\"I call myself a business and now all my personal expenses become tax deductible business expenses.\"\" If you could do that, everybody would do it and no one would pay taxes. Which might be a good thing, but the IRS doesn't see it that way.\"",
"title": ""
},
{
"docid": "cb60d460053ce5c63ebde8691c96b90a",
"text": "Food is almost never a valid expense. Reason for it is simple - if you were not conducting business you would have to eat too. Ad 1. I don't see why travel in that case would not be a valid expense, as the only reason for you to travel there is for business reasons. Ad 2. Unlikely as there is a duality of purpose. So while part of it may be business, you are also getting personal benefit from the visit (coffee/cakes etc) so that generally is a no. Ad 3. No, while you can claim for entertainment of employees (to sensible extends), that doesn't work when entertaining clients. Ad 4. If any part of the trip is for leisure then you cannot claim it as business expense, sorry! If there is any duality of use then it's not a business expense. And food, as always, is a no go.",
"title": ""
},
{
"docid": "3a24e8c7fb56eacce57030b2d4d34c3c",
"text": "For stocks, bonds, ETF funds and so on - Taxed only on realised gain and losses are deductible from the gain and not from company's income. Corporate tax is calculated only after all expenses have been deducted. Not the other way around. Real estate expenses can be deducted because of repairs and maintenance. In general all expenses related to the operation of the business can be deducted. But you cannot use expenses as willy nilly, as you assume. You cannot deduct your subscription to Playboy as an expense. Doing it is illegal and if caught, the tours to church will increase exponentially. VAT is only paid if you claim VAT on your invoices. Your situation seems quite complicated. I would suggest, get an accountant pronto. There are nuances in your situation, which an accountant only can understand and help.",
"title": ""
},
{
"docid": "ac9363665b6f3b6c63d77f667d33cd17",
"text": "\"The point is that you need to figure out when a \"\"business expense\"\" is actually just a personal purchase. Otherwise you could very easily just start a business and mark all of your personal purchases as business expenses, so you never have to pay income taxes because you're handling all of your money through the untaxed corporation.\"",
"title": ""
},
{
"docid": "b1e31c0a10ca632844786eb12a4497e3",
"text": "The company will have to pay 20% tax on its profits. Doesn't matter how these profits are earned. Profits = Income minus all money you spend to get the income. However, you can't just take the profits out of the company. The company can pay you a salary, on which income tax, national insurance, and employer's national insurance have to be paid at the usual rate. The company can pay you a dividend, on which tax has to be paid. And the company can pay money into the director's pension fund, which is tax free. Since the amount of company revenue can be of interest, I'd be curious myself what the revenue of such a company would be. And if the company makes losses, I'm sure HMRC won't allow you to get any tax advantages from such losses.",
"title": ""
}
] |
fiqa
|
3a32bb8fd417008d7bcdceb237bafbef
|
Do I need to keep paper records for my business?
|
[
{
"docid": "fdd6c32e18b0abef55a3c97c273f8daa",
"text": "Scanned or electronic copies of invoices should be sufficient as long as they are accurate and you can deliver them during an audit. Also, if you have an accountant prepare your taxes you would either need to provide them a copy of the invoices or a summary of them with the corresponding amounts to be claimed. Personally I prefer to print out a paper copy and file that away with that quarter's and year's other tax documents. I do my own taxes and find paper copies handy as I can go through each invoice/receipt and make sure I have entered its information by ticking it. I find that when handling a large number of documents that paper copies are more easy to handle than electronic ones. In the end you will need to use a system that you feel comfortable with and are able to use effectively.",
"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": "f69a1160d0806abe01e9fa3064037448",
"text": "Based on the additional comment you gave, I would recommend that you keep the capital from the businesses separate as much as possible. It sounds like you won't get into any trouble legally if you make 'loans' or transfers of capital from one business into the other. But I would suggest that you keep detailed records of any transfers that you do make. The reason why is that in any business, it is important to know the economics of how your business makes money. If you find yourself making transfers repeatedly, then your business model may be bad. Even if your transfers are only to deal with the cost of poor customers, it could still mean that your business model needs to be adjusted. But if it's a question of the timing of cash flows, then there's really nothing wrong with taking some of the money from your successful pants operation and building up more working capital in your stationery shop.",
"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": "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": "d072016a2ccc2726e7b3018546b815db",
"text": "I'd imagine you want to keep the utility bills around to dispute any historical billing errors or anomalies for perhaps 6 months to a year. Beyond that, you always have the financial records of making the payments -- namely, your bank statements. So what benefit is there in keeping the paper receipts for utility payments around for longer than that? I say shred them, with extreme prejudice -- while wearing black Chuck Norris style.",
"title": ""
},
{
"docid": "aa97ca1911310dad466a3476df53c3ca",
"text": "Regarding your specific types: If you can't part with anything, sure, scan them. Also, there are lots of opportunities to sign up for eStatements with just about any financial provider. They want you to sign up for them, because it reduces their expenses. If you still like having paper around (I do admit that it's comforting in a way) then you can usually prune your paper a bit by statement (getting rid of T&C boilerplate, advertisements, etc.) or by consolidation (toss monthly when the quarterly consolidation statement arrives; toss the quarterly when the yearly arrives).",
"title": ""
},
{
"docid": "35521eafb32f55645fbcfd314a99e5f0",
"text": "While it's wise, easier and safer to check your transactions online a few times a month, I opt to receive and file paper statements as a hard copy back up of account history. Any reconciliation I perform is a quick glance to make sure the numbers sound right. It's probably a small waste of time and space, but it settles some of my paranoia (due to my training as a computer engineer) about failure of electronic banking systems. If someone tampers with bank records or a SAN explodes and wipes out a bunch of account data, then I will have years worth of paper statements to back up my numbers. Having years worth of statements printed on the banks stationary will have better credibility in court than a .pdf or printout thereof that could have been doctored, in case I ever needed to take my bank to court. A little piece of mind for the price of a letter opener, a square foot file box and a couple of minutes a month.",
"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": "2353c5a9b4ae96c9817bd7979603b97e",
"text": "In this blog, i will share some important things about QuickBooks Online. In this busy life, Every businessman has limited time. So with the help of QuickBooks Online he/she has to keep a track record of their sales and expenses. For more - https://www.wizxpert.com/quickbooks-online-support/",
"title": ""
},
{
"docid": "9a2f36176458673c1befe588ea650e77",
"text": "\"What exactly would the financial institution need to see to make them comfortable with these regulations The LLC Operating Agreement. The OA should specify the member's allocation of equity, assets, income and loss, and of course - managerial powers and signature authorities. In your case - it should say that the LLC is single-member entity and the single member has all the managerial powers and authorities - what is called \"\"member-managed\"\". Every LLC is required to have an operating agreement, although you don't necessarily have to file it with the State or record it. If you don't have your own OA, default rules will apply, depending on your State law. However, the bank will probably not take you as a customer without an explicit OA.\"",
"title": ""
},
{
"docid": "58788bb7194efa79a0ed8dbb1f19f438",
"text": "When a business asks me to make out a cheque to a person rather than the business name, I take that as a red flag. Frankly it usually means that the person doesn't want the money going through their business account for some reason - probably tax evasion. I'm not saying you are doing that, but it is a frequent issue. If the company makes the cheque out to a person they may run the risk of being party to fraud. Worse still they only have your word for it that you actually own the company, and aren't ripping off your employer by pocketing their payment. Even worse, when the company is audited and finds that cheque, the person who wrote it will have to justify and document why they made it out to you or risk being charged with embezzlement. It's very much in their interests to make the cheque out to the company they did business with. Given that, you should really have an account in the name of your business. It's going to make your life much simpler in the long run.",
"title": ""
},
{
"docid": "6f4290ed479d97b76cb8e3e8ecc89e8f",
"text": "Starting and running a business in the US is actually a lot less complicated than most people think. You mention incorporation, but a corporation (or even an S-Corp) isn't generally the best entity to start a business with . Most likely you are going to want to form an LLC instead this will provide you with liability protection while minimizing your paperwork and taxes. The cost for maintaining an LLC is relatively cheap $50-$1000 a year depending on your state and you can file the paperwork to form it yourself or pay an attorney to do it for you. Generally I would avoid the snake oil salesman that pitch specific out of state LLCs (Nevada, Delaware etc..) unless you have a specific reason or intend on doing business in the state. With the LLC or a Corporation you need to make sure you maintain separate finances. If you use the LLC funds to pay personal expenses you run the risk of loosing the liability protection afforded by the LLC (piercing the corporate veil). With a single member LLC you can file as a pass through entity and your LLC income would pass through to your federal return and taxes aren't any more complicated than putting your business income on your personal return like you do now. If you have employees things get more complex and it is really easiest to use a payroll service to process state and federal tax with holding. Once your business picks up you will want to file quarterly tax payments in order to avoid an under payment penalty. Generally, most taxpayers will avoid the under payment 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. Even if you get hit by the penalty it is only 10% of the amount of tax you didn't pay in time. If you are selling a service such writing one off projects you should be able to avoid having to collect and remit sales tax, but this is going to be very state specific. If you are selling software you will have to deal with sales tax assuming your state has a sales tax. One more thing to look at is some cities require a business license in order to operate a business within city limits so it would also be a good idea to check with your city to find out if you need a business license.",
"title": ""
},
{
"docid": "7403614f3f37ea3a0f0fd2f044b47884",
"text": "\"Some benefits of having a business checking account (versus a personal checking account) are: The first 3 should be pretty easy to determine if they are important to you. #4 is a little more abstract, though I see you have an LLC taxed as a sole proprietorship, and so I'm guessing protecting your personal assets may have been one of the driving reasons you formed the LLC in the first place. If so, \"\"following through\"\" with the business account is advised.\"",
"title": ""
},
{
"docid": "8287deab56f34b7c3f331d8e74600458",
"text": "I am in the United States. There is no need to keep the statements in any form forever. Once the bank gives you a 1099 stating how much interest you have earned, you don't need to keep them. If you only have them in electronic form, that is good enough for the IRS. When you do need to show a bank statement, such as when applying for a loan, the loan company will be keeping a copy. It doesn't matter if it was a scan from the original, from a printed PDF, or if you printed it from your archives. In the US they used send the original check back to the person who wrote it, so they could keep it for their records. Then many banks went to carbons, but if you paid extra they would send you the original. Now the bank that cashes the check scans the check and destroys the original. If you want a copy for your records it only exists as a scanned image.",
"title": ""
},
{
"docid": "3d256f5131dfbb00d5117bc0e6e9af62",
"text": "You don't need to keep receipts for most things, and if you are not going to itemize your deductions (which as a college student, you probably won't), you need even fewer. Things that you should always keep: If you are itemizing your deductions, you want to keep receipts for anything that you can itemize. Some common things are: Another thing that you should do, but few people do, is keep track of your online purchases, since many states require you to pay sales tax on those purchases. Of course, the state has no way of knowing what you buy online, so it is all done on the honor system.",
"title": ""
}
] |
fiqa
|
7896aacb43c25021dbb94b6923d4f1cd
|
Why do banks require small businesses to open a business bank account instead of a cheaper personal one?
|
[
{
"docid": "b2c42bddf3080ea7ae21817338063ec0",
"text": "The bank won't let you because: Differences in required account features — Business accounts have different features (many of them legal features) that are required by businesses. For instances: Do you want to be able to deposit cheques that are written out to your business name? You need a business account for that. Your business could be sold. Then it wouldn't be your business, so it wouldn't make sense to put the business account under your personal name. The bank account and the cash it holds is a business asset and should be owned by the business, so when the business is sold the account goes with it. This is especially the case for a corporation that has shareholders, and not a sole proprietorship. For a business, you could also, in theory, assign other people as signing authorities on the business account (e.g. your corporate treasurer), and the individuals performing that role could change over time. Business accounts allow for this kind of use. Market segmentation — The bank has consciously undertaken to segment their product offerings in order to maximize their profit. Market segmentation helps the bottom line. Even if there were zero legal reasons to have separate personal vs. business accounts, banks would still make it their policy to sell different account types according to use because they can make more money that way. Consider an example in another industry: The plain-old telephone company also practices segmentation w.r.t. personal/business. Do you want a telephone line for a business and listed as such in the phone book? You need a business line. Do you want a phone line hooked up at a non-residential address? You need a business line. Here it's clear it is less of a legal issue than with the bank account, and it doesn't matter that the technical features of the phone line may be identical for the basic product offerings within each segment. The phone company has chosen to segment and price their product offerings this way. Q. Why do companies choose to charge some kinds of customers more than others for essentially the same underlying service? A. Because they can.",
"title": ""
},
{
"docid": "73f616354bbcd19e986fbb0458614a5a",
"text": "You could, but the bank won't let you... If you're a sole proprietor - then you could probably open a personal account and just use it, and never tell them that is actually a business. However, depending on your volume of operations, they may switch you on their own to business account by the pattern of your transactions. For corporations, you cannot use a personal account since the corporation is a separate legal entity that owns the funds. Also, you're generally required to separate corporate and personal funds to keep the limited liability protection (which is why you have the corporation to begin with). Generally, business accounts have much higher volumes and much more transactions than personal accounts, and it costs more for the banks to run them. In the US, some banks offer free, or very low-cost, business accounts for small businesses that don't need too many transactions. I'm sure if you shop around, you'll find those in Canada as well.",
"title": ""
}
] |
[
{
"docid": "0ce94616048ba8e4f72ff234d512442d",
"text": "Yes it is (legal). There is of course no law requiring any business you walk in to break your money. What made you think there would be? Being a bank in the US (and in other countries) has some legal consequences, but none of them relates to 'having to do business with anyone that walks in', neither 'having to break bills for people' (not even for established customers). Yes, it was historically commonplace for most banks to do all money-breaking for free, but that does not establish any obligation to do it. Maybe the FED is required to do that, but that won't help you if you don't live near either.",
"title": ""
},
{
"docid": "4f367decaddb283c3d6768fa24bb39fb",
"text": "For a business, it has absolutely nothing to do with what's in the bank. A business could be billions of dollars in the hole cash wise and still be required to pay taxes, and it can also be flush with billions of dollars in cash and get a refund. It's all from differences between tax accounting and accrual ( standard business) accounting.",
"title": ""
},
{
"docid": "737584b1df2438d3c2880417457d2498",
"text": "Many of the Financial intermediaries in the business, have extraordinary high requirements for opening an account. For example to open an account in Credit Suisse one will need 1 million US dollars.",
"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": "f0042193f945e999cc51ee7b75a7469d",
"text": "They might not have to open accounts at 12 bank because the coverage does allow multiple accounts at one institution if the accounts are joint accounts. It also treats retirement accounts a separate account. The bigger issue is that most millionaires don't have all their money siting in the bank. They invest in stocks, bonds, government bonds, international funds, and their own companies. Most of these carry risk, but they are diversified. They also can afford advisers to help them manage and protect their assets.",
"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": "df4cbe6da08e11779cd733b91756b314",
"text": "Another factor that makes Buy to let more expensive is the risk involved. With a buy to let you are dependent on finding a tenant that will keep regular payments. if the property is left empty you need to finance the mortgage yourself putting you under financial strain and raising risk. Also as Chis mentioned they are regarded as a business enterprise, If the mortgage was to be taken by a business that would be very high risk for a bank as the business could dissolve leaving the bank out of pocket. Because of this it can be very difficult to get a buy to let through a business unless you are moving from a personal portfolio. For a regular mortgage these risks don't exist so this is reflected in lower interest repayments. It's because of these differences in risk that banks created buy to let so they can better manage those risks.",
"title": ""
},
{
"docid": "e4c59245bab105ea50a8a3bdda494767",
"text": "\"Credit unions require you to open an account because of their history. A credit union is just that: a union. Only instead of a union of workers collectively bargaining for better pay or worker's comp, they are lending each other money. They are chartered to offer their services to members of the union, rather than the public at large. For that reason, credit unions historically had targeted niche memberships (ie, employees at a specific company, or property with a specific hobby such as fishing). Most credit unions these days attempt to skirt the issue, by claiming to serve members of a specific geographic area. Anyway, membership is defined a owning a stake in the union, which is usually termed a share. By opening the account and \"\"purchasing a share,\"\" you are becoming both an owner and member of the union, and are eligible for their services. That's why the account is required before you can have a loan.\"",
"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": "ed6909b1d2486a0cd9e6aaf638528c16",
"text": "\"For a newly registered business, you'll be using your \"\"personal\"\" credit score to get the credit. You will need to sign for the credit card personally so that if your business goes under, they still get paid. Your idea of opening a business card to increase your credit score is not a sound one. Business plastic might not show up on your personal credit history. While some issuers report business accounts on a consumer's personal credit history, others don't. This cuts both ways. Some entrepreneurs want business cards on their personal reports, believing those nice high limits and good payment histories will boost their scores. Other small business owners, especially those who keep high running balances, know that including that credit line could potentially lower their personal credit scores even if they pay off the cards in full every month. There is one instance in which the card will show up on your personal credit history: if you go into default. You're not entitled to a positive mark, \"\"but if you get a negative mark, it will go on your personal report,\"\" Frank says. And some further information related to evaluating a business for a credit card: If an issuer is evaluating you for a business card, the company should be asking about your business, says Frank. In addition, there \"\"should be something on the application that indicates it's for business use,\"\" he says. Bottom line: If it's a business card, expect that the issuer will want at least some information pertaining to your business. There is additional underwriting for small business cards, says Alfonso. In addition to personal salary and credit scores, business owners \"\"can share financials with us, and we evaluate the entire business financial background in order to give them larger lines,\"\" she says. Anticipate that the issuer will check your personal credit, too. \"\"The vast majority of business cards are based on a personal credit score,\"\" says Frank. In addition, many issuers ask entrepreneurs to personally guarantee the accounts. That means even if the businesses go bust, the owners promise to repay the debts. Source\"",
"title": ""
},
{
"docid": "8ecf09c77fda7d3724775f9ae0e8d959",
"text": "\"This is unfortunately the truth, and I spend a lot of time with my clients trying to help them through this process. One of the key metrics that banks judge themselves on is \"\"products per household.\"\" The more things you have attached to them, the less likely you are to leave, and they deliberately tie you in with more and more services, e.g. direct deposit, billpay, debit cards, credit cards, etc. If you want to switch but are held back by the daunting task of all the stuff you need to do, it's easier than most people think, and bankers at those smaller banks who are getting your accounts should be more than happy to do about 80% of the work for you. *The other 20% can only be done by you personally due to privacy laws, but your banker can guide you through that too. A prime example: A customer of mine wanted to switch, but he didn't want to go to the old bank to actually wait in line and go through with the nonsense of actually closing the account. I see that anxiety over confrontation a lot, by the way. So I have saved on my desktop a form letter is a simple request by the customer to close their account at 2B2F bank. They sign it, I notarize it, and send it off to the branch. The branch of receipt has to close the account per the request. Before we send that letter, we get everything set up with the new bank, draw the old one down to $10 or so, and give instructions to the old bank to remit a check payable to the customer and mail it to me. Then the old account is closed, and I just deposit that nominal amount into the customer's account. The customer literally never has to set foot in the old bank again. The unfortunate thing is that not everyone knows that these kinds of things are even possible: that your banker should help you with this stuff, or that you can do pretty much everything remotely. Plus, if you look at the smaller banks and CUs these days, they have eliminated the need or ubiquity (i.e. \"\"but their ATMs are everywhere!\"\") because a good bank or CU will never allow you to get charged to get your money, they will give you the direct line and email address of your branch manager, and a lot of places have mobile apps that allow you to deposit checks remotely.\"",
"title": ""
},
{
"docid": "a6d66922dcd3d2189c4d20eef7cc9223",
"text": "I've had all my account with the same bank for all my life. Generally, the disadvantage is that if I want some kind of product like a credit extension or a mortgage, I have the one bank to go to and if they don't want to help me I'm out of luck. However, occasionally there are also perks like the bank spontaneously offering you increased credit or even a whole line of credit. They can do this because they have your whole history and trust you.",
"title": ""
},
{
"docid": "d9cdcdff137ec7b88535795c9b4a7540",
"text": "\"From the banks point of view the point of a current account like this is to get you as a regular customer. They want to be your \"\"main bank\"\", the bank you interact with the most, the bank you turn to first when you need financial products and services, the bank whose advertising you see every time you log into online banking or walk into a branch. The bank knows that if they just offer the unprofitablly high interest rate or other perks with no strings attatched that people will open the account and dump a bunch of savings in it but won't actually move their financial life over, their old bank will still be their main bank. So they attatch strings like a required minimum deposit, a minimum number of direct debits and similar. These have minimal effect on people actually using the account as their main current account while being a pain for people trying to game the system. Of course as you point out it is still possible to game the system but they don't need to make gaming the system impossible, they just need to make it inconvianiant enough that most people won't bother.\"",
"title": ""
},
{
"docid": "20d5a4c007d0c1bcd5bb373e553d37f3",
"text": "I don't think this is a French thing. It's like this everywhere. Banks always want people to open accounts of every type. A person with a checking account should be easy to sell on a savings account at the same institution. Given that it does not appear that they will have any chance to recover the money they spend to get customers to open these accounts (there are no fees and they have to pay out the interests, even if very small) Oh, they recover it. Banks make money by having deposits that they can use to lend out. They do pay interest on deposits, but not as much as they earn on your money. If they persuade you to have a savings account in addition to your checking account, then you might find it convenient and then move your money out of a different institution into their savings account. Or you might stop hoarding it under your mattress. Or whatever. More money in their accounts means more profit for them. I don't know whether banks make more profit per dollar in savings or checking accounts. I see banks pushing for both. I think they simply view more accounts as a good thing because it can lead to more total savings in their institution. That's how they make money.",
"title": ""
},
{
"docid": "cc8d8fb90a153bfe7fc2841389b13a8a",
"text": "\"Like most forms of insurance, health insurance is regulated at the state level. So what is available to you will depend greatly upon which state you live in. You can probably find a list of insurance companies from your state's official website. Many states now provide \"\"insurance of last resort\"\" for individuals who can't get insurance through private insurance companies. You can try looking into professional and trade associations. Some offer group insurance plans comparable with COBRA coverage, meaning you'd get a group discount and benefits but without the benefit of an employer paying 30-80% of your premiums. As a software developer you may qualify for membership in the IEEE or ACM, which both offer several forms of insurance to members. The ASP also offers insurance, though they don't provide much information about it on the public portions of their website. These organization offer other benefits besides insurance so you may want to take that in to consideration. The National Federation of Independent Business also offers insurance to members. You may find other associations in your specific area. Credit Unions, Coops and the local chamber of commerce are all possible avenues of finding lower cost insurance options. If you are religious there are even some faith based non-insurance organizations that provide medical cost sharing services. They depend upon the generosity and sense of fairness and obligation of their members to share the burden of medical expenses so their definitely not for everyone.\"",
"title": ""
}
] |
fiqa
|
6779d2aa0fb930d47d36c1972c130a77
|
How to treat miles driven to the mechanic, gas station, etc when calculating business use of car?
|
[
{
"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": "b54f359812447b459ce484e396958a5f",
"text": "Alright, IRS Publication 463: Travel, Entertainment, Gift, and Car Expenses Business and personal use. If you use your car for both business and personal purposes, you must divide your expenses between business and personal use. You can divide your expense based on the miles driven for each purpose. Example. You are a sales representative for a clothing firm and drive your car 20,000 miles during the year: 12,000 miles for business and 8,000 miles for personal use. You can claim only 60% (12,000 ÷ 20,000) of the cost of operating your car as a business expense Obviously nothing helpful in the code. So I would use option 1, weight the maintenance-related mileage by the proportion of business use. Although if you use your car for business a lot (and perhaps have a spouse with a car), an argument could be made for 3. So I would consider my odds of being audited (even lower this year due to IRS budget cuts) and choose 1 or 3. And of course never throw anything away until you're room temperature.",
"title": ""
},
{
"docid": "310bedf38bc6828437741be5699ffbf2",
"text": "Since you are using the percentage method to determine the home/business use split, I would think that under most circumstances the distance driven to get your car from the dealership to home, and from home to mechanic and back would be less than 1% of the total miles driven. This is an acceptable rounding error. When refueling, I typically do that on my way to another destination and therefore it's not something I count separately. If your miles driven to attend to repair/refueling tasks are more than 1% of the total miles driven, split them as you feel comfortable in your above examples. I'd calculate the B/P percentages as total miles less maintenance miles, then apply that split to maintenance miles as well.",
"title": ""
}
] |
[
{
"docid": "aa814b38cf9b2f1b54222b975753ec2a",
"text": "Firstly, thank you for taking the time to respond, let me see what I can answer to help give you a bigger picture. * I am the rental manager but like I say, it's a small unit where the operations team is only 5 strong. We all have a hand in everything really and it was my precedent for implementing procedures in the past that triggered them to ask me into looking into this. * Honestly, I don't think I have much of a budget. That being said, if there's a price to anything and I can justify the company spending the money, they will be fair. From a personal perspective, I never even considered that third party software would be required for this kind of thing. If there's any you could recommend (licensed or open sourced) that would be greatly appreciated. * From what I can tell, the people in charge want a process in which we can fully understand CSAT from both a service and product standpoint. We can use the information gathered from our service feedback to improve ourselves and we can use the information gathered about the vehicles we lease (the products) so we can market them correctly in the future. Seeing how the customer feels on the vehicle's fuel economy, performance, comfort on the driver, downtime, etc. which can lead us to marketing the vehicles better or influence what vehicles we purchase moving on. * For the most part, I think the working processes are going to remain the same, where the customer support manager will have a more active role in getting these calls/visits/emails out to the customers and react accordingly. Again, thank you so much for your help.",
"title": ""
},
{
"docid": "bfe679c5837b22f85af32ce08beb0e7b",
"text": "Back when I was 25 and living near Kansas City, I would put 500-700 miles on my car almost every weekend traveling to other places like Omaha, St. Louis, Iowa City, occasionally Minneapolis, once to Fargo, and one longer trip all the way to Virginia... There's a whole lot of nothing out there so road trips are quite naturally long. They're also quite attractive and I still wouldn't miss an opportunity to get up and drive somewhere for the weekend. But, I have spent less money on cars in my entire lifetime than you have on this single car. I preferred then, and still do, to buy older cars for a few thousand dollars (or even less) and drive them until they die or can no longer pass inspection. Changing the oil is usually the most maintenance I'll do. Since I've spent so little on each car, I don't really care if it suffers some minor damage, or even gets totaled in an accident (which fortunately has never happened), so I would only carry the mandatory liability insurance. This is going to be much cheaper than the full coverage you will have on your car. If something did happen I would just go buy another junker. One such car I bought cost me a grand total of $150 excluding gas and gave me almost 10,000 miles until its transmission fell out. Another that I paid $100 for had difficulty getting over 60 miles an hour, but it did those 500-mile trips almost every weekend for two years before the engine threw a rod. This might not be something you want to do. Perhaps you don't want to be seen driving what one of my exes called a ****mobile because people will misjudge you. But consider that billionaire Sam Walton (of Wal-Mart) could afford any vehicle he wanted, but drove an old pickup truck. I present it as an option because it works for me, and might work for you. And my ex liked my old cars, especially the 1983 Mercury Zephyr station wagon with enough space in the back for a full size bed... Thus you have one possible way to cut your expenses significantly. The only thing left to deal with is parking and its attendant security issues. My ****mobiles have never been stolen, broken into or even looked at funny, though I have never left anything visible in them but the occasional bit of trash. Thieves don't seem to expect an old beater to contain valuables or even be drivable, and a chop shop certainly wouldn't want one. And as I noted in a comment earlier, it's possible to find cheaper monthly parking in NYC if you search carefully; the $130/month example in the Bronx being just the first one I found after 25 seconds on Google. I am pretty sure that if you do some more extensive research you can find cheaper parking that is reasonably secure and at least relatively convenient to your most common travel plans.",
"title": ""
},
{
"docid": "9fe54d3599894d568a96ea2e88b22f60",
"text": "You've got two options. Deduct the business portion of the depreciation and actual expenses for operating the car. Use the IRS standard mileage rate of $.575/mile in 2015. Multiply your business miles by the rate to calculate your deduction. Assuming you're a sole proprietor you'll include a Schedule C to your return and claim the deduction on that form.",
"title": ""
},
{
"docid": "9a9b3ef87b3ee77e7ce1a06de2fee9d7",
"text": "On form 8829, line 20 you can list utilities paid for the home office. You have two choices: 1) You can list the entire amount under column (b) as an indirect expense. You will then get a deduction for the fraction of the amount based on what fraction of your home is an office. This makes sense if the service equally benefits your entire home. 2) You can compute the portion of the expense reasonably attributable to the business/office and list that amount under column (a). This entire amount will be deducted. Which option you choose depends on how well you think you can allocate the expense between your office and the rest of your home. For example, I have had to do this with electricity, but I specifically measured the electricity used by my office. If you think you can defend allocating a larger portion to the office, use option 2. If you would have paid the same amount even if you didn't have an office, it's hard to justify allocating more of the expense to the office than its portion of the home. If you opted for a more expensive service or otherwise incurred additional costs, it makes sense to allocate a higher fraction to the office and to calculate that yourself.",
"title": ""
},
{
"docid": "6fdb383518120a8d5d446b4036a4d037",
"text": "The value of the car is only of interest if there is an intention to sell it aqain. I would make the following calculation: This gives you the costs per time period that the car really costs you. Now do the same with a new (used) car you intend to buy instead of this car. With the new car you also need to add the costs of buying it (sales price, plus any interests and fees if you finance it). If the old car costs you less than the new car, keep it, otherwise get the new car.",
"title": ""
},
{
"docid": "8be0b5e84db765897c5f57614ee70793",
"text": "\"For a long time I did just as you did. I had a car, but I didn't drive it. Even if you NEVER drive a car, it still has a cost. You still have to insure it and you still have to register it. On top of that a sitting car will have costs. Cars are not built to sit. I found it to be much cheaper to take a \"\"taxi\"\" then to own a car. Eventually I got rid of my car, and we (my wife and I) just rented any time we needed to go somewhere long distance. Very recently we purchased a car and kids change things, and we want kids. SO better to do this costly move now (in our minds). But still if we travel outside of town, we still rent. A car is, usually, not good at constant \"\"long drives\"\" as the maintenance costs get high, and they are, usually, not good at \"\"no driving\"\" as they are not built to sit still. They are best used, usually, for shorter, in town, or \"\"next town over\"\" style driving. Keep in mind I am in the USA so \"\"long and short\"\" drives have a different meaning. A 200 mile trip is about the line we draw before we just rent. But that's our preference. Some of which is because we would prefer to take the train and rent there then drive the entire trip.\"",
"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": "baafc7faa6bfbfcb4e5e51674043a1bd",
"text": "Assuming your country is the United States there is. See schedule C line 9 and the corresponding instructions. There are many rules associated with this, in some cases the entire purchase can be written off but typically if the truck is only used for business. Most people write off partial usage in the form of credits for mileage. You are best to consult with a CPA once your business earns a profit. Good luck.",
"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": ""
},
{
"docid": "0f06c64f3954dc1ce53ca1017d37773a",
"text": "\"I've lived this decision, and from my \"\"anecdata\"\": do #3 I have been car-free since 2011 in a large United States city. I was one month into a new job on a rail line out in the suburbs, and facing a $3000 bill to pass state inspection (the brakes plus the emissions system). I live downtown. I use a combination of transit, a carshare service, and 1-2 day rentals from full service car rental businesses (who have desks at several downtown hotels walking distance from my house). I have not had a car insurance policy since 2011; the carshare includes this and I pay $15 per day for SLI from full service rentals. I routinely ask insurance salesmen to run a quote for a \"\"named non-owner\"\" policy, and would pull the trigger if the premium cost was $300/6 months, to replace the $15/day SLI. It's always quoted higher. In general, our trips have a marginal cost of $40-100. Sure, this can be somewhat discouraging. But we do it for shopping at a warehouse club, visiting parents and friends in the suburbs. Not every weekend, but pretty close. But with use of the various services ~1/weekend, it's come out to $2600 per year. I was in at least $3200 per year operating the car and often more, so there is room for unexpected trips or the occasional taxi ride in cash flow, not to mention the capital cost: I ground the blue book value of the car from $19000 down to $3600 in 11 years. Summary: Pull the trigger, do it :D\"",
"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": "6d8fae7ab371dc25faf4139cdf4ce360",
"text": "If you itemize your deductions then the interest that you pay on your primary residence is tax deductible. Also realestate tax is also deductible. Both go on Schedule A. The car payment is not tax deductible. You will want to be careful about claiming business deduction for home or car. The IRS has very strict rules and if you have any personal use you can disqualify the deduction. For the car you often need to use the mileage reimbursement rates. If you use the car exclusively for work, then a lease may make more sense as you can expense the lease payment whereas with the car you need to follow the depreciation schedule. If you are looking to claim business expense of car or home, it would be a very good idea to get professional tax advice to ensure that you do not run afoul of the IRS.",
"title": ""
},
{
"docid": "a9c23ac395d4ece655d32c1d7c7bcaaf",
"text": "\"No, your business cannot deduct your non-business expenses. You can only deduct from your business income those reasonable expenses you paid in order to earn income for the business. Moreover, for there to be a tax benefit, your business generally has to have income (but I expect there are exceptions; HST input tax credits come to mind.) The employment income from your full-time job wouldn't count as business income for your corporation. The corporation has nothing to do with that income – it's earned personally, by you. With respect to restaurant bills: These fall under a category known as \"\"meals & entertainment\"\". Even if the expense can be considered reasonable and business-related (e.g. meeting customers or vendors) the Canada Revenue Agency decided that a business can only deduct half of those kinds of expenses for tax purposes. With respect to gasoline bills: You would need to keep a mileage and expense log. Only the portion of your automobile expenses that relate to the business can be deducted. Driving to and from your full-time job doesn't count. Of course, I'm not a tax professional. If you're going to have a corporation or side-business, you ought to consult with a tax professional. (A point on terminology: A business doesn't write off eligible business expenses — it deducts them from business income. Write off is an accounting term meaning to reduce the value of an asset to zero. e.g. If you damaged your car beyond repair, one could say \"\"the car is a write-off.\"\")\"",
"title": ""
},
{
"docid": "6ef21e41cbd2ebe2ef1d891503632fb1",
"text": "This is nonsense and just a game to squeeze more money from consumers. A convential car needs to change oil every so often. You get a warning light in the dashboard for that in most cars. If you decide to not change oil as needed, it's your business and your problem that you shortened your car's life. Do you want conventional cars to stop working when oil change is due? Basically Tesla is crippeling the car and does not let the consumer to FULLY use the car they own, if they choose to do that.",
"title": ""
},
{
"docid": "221c2facfbbbc27225c5f7d9f28af460",
"text": "You don't say what country you live in. If it's the U.S., the IRS has very specific rules for business use of a car. See, for starters at least, http://www.irs.gov/publications/p463/ch04.html. The gist of it is: If you use the car 100% for business purposes, you NEVER use it to drive to the grocery store or to your friend's house, etc, then it is a deductible business expense. If you use a car party for business use and partly for personal use, than you can deduct the portion of the expense of the car that is for business use, but not the portion that is for personal use. So basically, if you use the car 75% for business purposes and 25% for personal use, you can deduct 75% of the cost and expenses. You can calculate the business use by, (a) Keeping careful records of how much you spent on gas, oil, repairs, etc, tracking the percentage of business use versus percentage of personal use, and then multiplying the cost by the percentage business use and that is the amount you can deduct; or (b) Use the standard mileage allowance, so many cents per mile, which changes every year. Note that the fact that you paid for the car from a business account has absolutely nothing to do with it. (If it did, then everyone could create a small business, open a business account, pay all their bills from there, and all their personal expenses would magically become business expenses.) Just by the way: If you are going to try to stretch the rules on your taxes, business use of a car or personal computer or expenses for a home office are the worst place to do it. The IRS knows that cars and computers are things that can easily be used for either personal or business purposes and so they keep a special eye out on these.",
"title": ""
}
] |
fiqa
|
c2fc5d319fa7498d85063d2cd7de687d
|
value of guaranteeing a business loan
|
[
{
"docid": "6524bc2becd518e677ad0cd882293a3d",
"text": "The guarantee's value to you is whatever you have to pay to get the guarantee, assuming that you don't decide it's too expensive and look for another guarantor or another solution entirely. How much are you willing to pay for this loan, not counting interest and closing costs? That's what it's worth. See past answers about the risks of co-signing for a realistic view of how much risk your guarantor would be accepting and why they should hold out for a very substantial reimbursement for this service.",
"title": ""
},
{
"docid": "f7693c356c975e39379e08b247abf81f",
"text": "The standard goal of valuing anything is to seek the fair price for that thing in the open market. Depending on what is being valued, that may or may not be an easy task. eg: to value your home, get a real estate appraiser, who will look at recent market sales in your area, and adjust for nuances of your property. To value your loan guarantee, you would need to figure out what it is actually worth to the business, which may be difficult. In a perfect world, you would be able to ask the bank to tell you the interest rate you would have to pay, if the loan was not guaranteed. This would show you the value you are providing to the business by guaranteeing it. ie: if the interest would be $100k a year unguaranteed, but is only $40k a year guaranteed, you are saving the business $60k a year. If the loan is to last 5 years, that's a total of $300k. Of course, it is likely the bank simply won't offer you an unguaranteed loan at all. This makes the value quite difficult to determine, and highlights the underlying transaction you are considering: You are taking on personal risk of loan default, to profit the business. If you truly can't find an equitable way to value the guarantee, consider whether you understand the true risk of what you are doing. If you are able to determine an appropriate value for the loan, consider whether increasing your equity is fair compensation. There are other methods of compensation available, such as having the company pay you directly, or decrease the amount of capital you need to invest for this new set of equity. In the end, what is fair is what the other shareholders agree to. If you go to the shareholders with anything less than professional 3rd party advice (and stackexchange does not count as professional), then they may be wary of accepting your 'fee', no matter how reasonable.",
"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": "2c271dc160cc14046b923589c6d17ed7",
"text": "You should ask the bank supplying the SBA loan about the % of ownership that is required to personally guarantee the loan. Different banks give different figures, but I believe the last time I heard about this it was 20% or more owners must personally guarantee the loan. Before you spend a lot of money on legal fees drawing up a complicated scheme of shares, ask the bank what they require. Make sure you speak with an underwriter since many service people don't know the rules.",
"title": ""
}
] |
[
{
"docid": "b5ce0e715bbecbe660d6f410a6281b97",
"text": "There is a way to get a reasonable estimate of what you still owe, and then the way to get the exact value. When the loan started they should have given you amortization table that laid out each payment including the principal, interest and balance for each payment. If there are any other fees included in the payment those also should have been detailed. Determine how may payments you have maid: did you make the first payment on day one, or the start of the next month? Was the last payment the 24th, or the next one? The table will then tell you what you owe after your most recent payment. To get the exact value call the lender. The amount grows between payment due to the interest that is accumulating. They will need to know when the payment will arrive so they can give you the correct value. To calculate how much you will save do the following calculation: payment = monthly payment for principal and interest paymentsmade =Number of payments made = 24 paymentsremaining = Number of payments remaining = 60 - paymentsmade = 60-24 = 36 instantpayoff = number from loan company savings = (payment * paymentsremaining ) - instantpayoff",
"title": ""
},
{
"docid": "e2f4400348bb1a1d6a1cb9b5ac1b47e0",
"text": "\"The \"\"guaranteed minimum future value\"\" isn't really a guarantee so much as the amount they will charge you at the end of the agreement if you want to keep the car. In this sense it might better be considered a \"\"guaranteed maximum future cost\"\". If the car has fallen below that value at that point, then you can just hand back the car and you won't owe anything extra. If it turns out to be worth more, you end up in profit - though only if you either actually pay for the car, or if you roll over into a new PCP deal. So the finance company has an incentive to set it at a sensible value, otherwise they'll end up losing money. Most new cars lose a lot of value quickly initially, and then the rate of loss slows down. But given that it's lost £14k in 2 years, it seems pretty likely it'll lose much more than another £1k in the next 2 years. So it does sound like that in this case, they estimated the value badly at the start of the deal and will end up taking a loss on the deal when you hand it back at the end. It appears you also have the legal right to \"\"voluntary termination\"\" once you have paid off half the \"\"Total Amount Payable\"\". This should be documented in the PCP agreement and if you're half way into the deal then I'd expect you'll be about there. If that doesn't apply, you can try to negotiate to get out of the deal early anyway. If they look at it rationally, they should think about the value of your payments over the next two years minus the loss they will end up with at the end of those two years. But there's no guarantee they will. Disclaimer: Despite living in the UK, I hadn't heard of these contracts until I read this question, so my answer is based entirely on web searches and some inferences. The two most useful sources I found on the general subject were this one and this one.\"",
"title": ""
},
{
"docid": "b347516b80a7e2ce42a82256cc525709",
"text": "A Loan is an loan that gives some kind of benefit as an assurance to a loaning organization. So when you put in an application for a credit, you likewise advocate that in case that you can not pay, you've some form of benefit that will cover the default sum.",
"title": ""
},
{
"docid": "954366c292367a5d222b983be4aa261a",
"text": "1. this is not the correct sub, try /r/Entrepreneurs or similar 2. Banks only care about 1 thing: collaterals with personal guarantee from the owners/shareholders of the business. Nothing else matters, don't waste your time with a business plan. (Yes ELI: bank only give money to people who have money).",
"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": "64e9e40b6898d48c338c7559204146d0",
"text": "\"I'm afraid the great myth of limited liability companies is that all such vehicles have instant access to credit. Limited liability on a company with few physical assets to underwrite the loan, or with insufficient revenue, will usually mean that the owners (or others) will be asked to stand surety on any credit. However, there is a particular form of \"\"credit\"\" available to businesses on terms with their clients. It is called factoring. Factoring is a financial transaction whereby a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount in exchange for immediate money with which to finance continued business. Factoring differs from a bank loan in three main ways. First, the emphasis is on the value of the receivables (essentially a financial asset), not the firm’s credit worthiness. Secondly, factoring is not a loan – it is the purchase of a financial asset (the receivable). Finally, a bank loan involves two parties whereas factoring involves three. Recognise that this can be quite expensive. Most banks catering to small businesses will offer some form of factoring service, or will know of services that offer it. It isn't that different from cheque encashment services (pay-day services) where you offer a discount on future income for money now. An alternative is simply to ask his clients if they'll pay him faster if he offers a discount (since either of interest payments or factoring would reduce profitability anyway).\"",
"title": ""
},
{
"docid": "1b4e0eb0641fc8e6dd1a94c8b3a36a1b",
"text": "\"You should be able to pay back whenever; what's the point of an arbitrary timeline? Cash flow is the life blood of any business. When banks loan money, they are expecting a steady cash flow back. If you just pay back \"\"whenever\"\" - the bank has no idea what they'll be getting back month-to-month. When they can set the terms of the loan (length, rate, payment amount), they know how much cash flow they expect to get. What does [the term of the loan] even mean and what difference in the world does it make? In addition to the predictable cash flow needs above, setting a term for the loan determines how long their money will be tied up in the loan. The longer a bank has money tied up in a loan, the more risk there is that the borrower will default, so the bank will require a greater return (interest rate) for that extra risk. What you have described is effectively a revolving line of credit. The bank let you borrow money arbitrarily, charges you a certain rate of interest, and you can pay them back at your schedule. If you pay all of the interest for that month, everything else goes to principal. If you don't pay all of the interest, that interest is added to the balance and gets interest compounded on top of it. Both are perfectly viable business models, and bank employ them both, but they meed different needs for the bank. Fixed-term loans help stabilize cash flow, and lines of credit provide convenience for customers.\"",
"title": ""
},
{
"docid": "646a544547af13b516d0c897e77d1e74",
"text": "On a personal Loan Yes. On a business loan, it would depend on the Bank and they would like to understand the purpose of the loan and need it to be secured. They may not even grant such kind of business loan.",
"title": ""
},
{
"docid": "d18ebd16192f0d891dec26f9c5cef108",
"text": "I think in such situations a good rule of thumb may be - if you are asked to pay significant sums of money upfront before anything is done, stop and ask yourself, what would you do if they don't do what they promised? They know who you are, but usually most you know is a company name and phone number. Both can disappear in a minute and what are you left with? If they said they'd pay off the debt and issue the new loan - fine, let them do it and then you pay them. If they insist on having money upfront without delivering anything - unless it's a very big and known and established company you probably better off not doing it. Either it's a scam or in the minuscule chance they are legit you still risking too much - you're giving money and not getting anything in return.",
"title": ""
},
{
"docid": "0c41ae0b3760a3df1db01624405faaab",
"text": "There's a bit of truth to that, except in reality when you ask for business loan the bank most definitely looks at the background of the owners (assuming it's a small business). You might have some luck fooling investors as a way to get some capital, but that's doubtful as well if you have a history of starting companies that later fail.",
"title": ""
},
{
"docid": "d1ccea21c553d6fdbf534fdb0d965a54",
"text": "The home owner will knock 20% off the price of the house. If the house is worth $297K, then 20% is just a discount your landlord is offering. So your actual purchase price is $237K, and therefore a bank would have to lend you $237K. Since the house is worth more than the loan, you have equity. 20% to be more accurate. Another way to say is, the bank only wants to loan you 80% of the value of the item securing the loan. If you default on day one, they can sell the house to somebody else for $296K and get a 20% return on their loan. So this 20% you are worried about isn't actually money that anybody gives anybody else, it is just a concept.",
"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": "532cd8a3e15d0d6829b3962d772eb0cc",
"text": "Get in touch with a reliable company if you are looking for a range of small business financing solutions. Such companies offer consolidation loans to help smaller businesses take care of their previous obligations and this way manage their finances better",
"title": ""
},
{
"docid": "c89af4372c5a95e112336d2e3e9f3f8a",
"text": "\"This is an example from another field, real estate. Suppose you buy a $100,000 house with a 20 percent down payment, or $20,000, and borrow the other $80,000. In this example, your \"\"equity\"\" or \"\"market cap\"\" is $20,000. But the total value, or \"\"enterprise value\"\" of the house, is actually $100,000, counting the $80,000 mortgage. \"\"Enterprise value\"\" is what a buyer would have to pay to own the company or the house \"\"free and clear,\"\" counting the debt.\"",
"title": ""
},
{
"docid": "3b11f4fa7e336955f0eea0451f70dcdc",
"text": "This is dumb. The sub company will lose money but the parent company will pay taxes on the income they made off of expenses to the subcompany. This doesn't systematically reduce their risk either. Banks will loan more money if the parent company is liable to pay the bills if the sub company can't. So yes, a bank may make a loan to the sub company without any liability on the parent company, but its going to be a very small loan compared to what they would've given the parent company.",
"title": ""
}
] |
fiqa
|
a144e6d43ba55fb73ec35d201a7febc4
|
Deducting business expenses paid for by gift card
|
[
{
"docid": "39f3a8221f16c84c72aefff9e8144049",
"text": "To quote the answer you linked to: Perhaps the simplest way to think about this is you can only deduct an expense that you actually incur. In other words, the expense should show up on a bank or CC statement. So, if your business purchased the $1000 gift card for $800, you should see a $800 charge appearing on a business CC or bank statement. You would therefore be able to deduct the $800, but not the full $1000 of items that you purchase with it. Side Notes:",
"title": ""
}
] |
[
{
"docid": "221c2facfbbbc27225c5f7d9f28af460",
"text": "You don't say what country you live in. If it's the U.S., the IRS has very specific rules for business use of a car. See, for starters at least, http://www.irs.gov/publications/p463/ch04.html. The gist of it is: If you use the car 100% for business purposes, you NEVER use it to drive to the grocery store or to your friend's house, etc, then it is a deductible business expense. If you use a car party for business use and partly for personal use, than you can deduct the portion of the expense of the car that is for business use, but not the portion that is for personal use. So basically, if you use the car 75% for business purposes and 25% for personal use, you can deduct 75% of the cost and expenses. You can calculate the business use by, (a) Keeping careful records of how much you spent on gas, oil, repairs, etc, tracking the percentage of business use versus percentage of personal use, and then multiplying the cost by the percentage business use and that is the amount you can deduct; or (b) Use the standard mileage allowance, so many cents per mile, which changes every year. Note that the fact that you paid for the car from a business account has absolutely nothing to do with it. (If it did, then everyone could create a small business, open a business account, pay all their bills from there, and all their personal expenses would magically become business expenses.) Just by the way: If you are going to try to stretch the rules on your taxes, business use of a car or personal computer or expenses for a home office are the worst place to do it. The IRS knows that cars and computers are things that can easily be used for either personal or business purposes and so they keep a special eye out on these.",
"title": ""
},
{
"docid": "e066e481ce1dc4ba46306df1ed00eb97",
"text": "I'm a CPA and former IRS agent and manager. Whether you are a cash or accrual basis taxpayer, you get to deduct the expense when your card is charged. Think of it this way: You are borrowing from the credit card company or bank that issued the credit card. You take that money to make a purchase of a product or service. You now have an expense and a liability to a third party. When you pay off the liability, you do not get to take a deduction. Your deduction is when you pay for the expense. Depending on what you purchased, you may have to capitalize it.",
"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": "0c509b1b72a4cbf876193786938eb9a1",
"text": "Use one journal entry, and split the expenses into the appropriate accounts. This can happen even if you never mix business and personal on the same receipt: say you order office supplies (which where I live are immediately deductible as an expense) and software or hardware (which must be depreciated because they are assets) on the same order. We have an account called Proprietors Loan which represents money the company is lending to the humans who own it, or that the humans are lending to the company. Were I to pay for my personal lunch on a business credit card, it would go through that account, increasing the amount the company has lent me or decreasing the amount I have lent it. Similarly if I made a business purchase with a personal card it would go through that account in the other direction. Where I live, I can lend my company all the money I want any time, but if the company lends me money there can't be an outstanding balance over the corporate year end. If you make two credit card entries of 5 and 10 when you go to reconcile your accounts it will be harder because you'll have to realize they together match the single 15 line on your statement. Making a single entry (your A option) will make reconciling your statement much easier. And that way, you'll probably reconcile your statements, which is vital to knowing you actually recorded everything.",
"title": ""
},
{
"docid": "d737b1ec367bd04433444f7c48e9571f",
"text": "It is totally legal but it just has to be reported like income. Granted the IRS will probably not catch it. I work for a large company I get little gift cards all the time and they add the dollar value as income for taxes on my paycheck. It is a little annoying because I think it is kind of shit that a dollar value of a gift card is treated as the same value as real money, but they are amazon gift cards so better than cash to me.",
"title": ""
},
{
"docid": "f81ad22890ccc28b8d5635a494d7570b",
"text": "\"The government thought of that a long time ago, and has any loophole there plugged. Like if you set up a company to buy a car and then allow you to use it ... You can use the car for company business, like driving to a customer's office to make a sales call or delivery, and the cost of the car is then tax deductible. But the company must either prohibit personal use of the car, or keep a log of personal versus business use and the personal use becomes taxable income to you. So at best you'd get to deduct an expense here and then you'd have to add it back there for a net change in taxable income of zero. In general the IRS is very careful about personal use of business property and makes it tough to get away with a free ride. I'm sure there are people who lie about it and get away with it because they're never audited, but even if that causes you no ethical qualms, it's very risky. I don't doubt that there are people with very smart lawyers who have found loopholes in the rules. But it's not as simple as, \"\"I call myself a business and now all my personal expenses become tax deductible business expenses.\"\" If you could do that, everybody would do it and no one would pay taxes. Which might be a good thing, but the IRS doesn't see it that way.\"",
"title": ""
},
{
"docid": "abe8b5b68a0c31cf7d1413d9103a608d",
"text": "\"The relevant IRS publication is 526, Charitable Contributions. The section titled \"\"Contributions you cannot deduct\"\" begins on page 6; item 4 reads: \"\"The value of your time or services.\"\" I read that to mean that, if the website you built were a product, you could deduct its value. I don't understand the legal distinction between goods and services I originally said that I believe that a website is considered a service. Whether a website is a service or a product appears to be much more controversial that I originally thought. I cannot find a clear answer. I'm told that the IRS has a phone number you can call for rulings on this type of question. I've never had to use it, so I don't know how helpful it is. The best I can come up with is the Instructions for Form 1120s, the table titled \"\"Principal Business Activity Codes,\"\" starting on page 39. That table suggests to me that the IRS defines things based on what type of business you are in. Everything I can find in that table that a website could plausibly fall under has the word \"\"service\"\" in its name. I don't really feel like that's a definitive answer, though. Almost as an afterthought, if you were able to deduct the value of the website, you would have to subtract off whatever the value of the advertisement is. You said that it's not much, but there's probably a simple way of estimating that.\"",
"title": ""
},
{
"docid": "1584cb99081b2ef42a3fe5096f88876e",
"text": "Typically you can only claim as business deductions those expenses which strictly relate to your business. In some cases, if you have a dedicated home office in your house, you can specify that expenses related to this space (furniture, etc.) are business expenses because it is a dedicated space. For example, I know of someone in sports broadcasting who claimed several TVs as a business expense, but these are for a room in his house that he uses only for watching games related to his work responsibilities, and never for entertaining, having friends over, etc. I think it will be difficult for you to count any portion of this type of installation as a business expense as it would relate to both your business as well as your residence. If you intend to try to get this deducted, I would strongly recommend consulting a CPA or tax attorney first. I think it will be difficult to prove that the only benefit is to your LLC if your electricity bills/credits are co-mingled with those for your residence. Best of luck!",
"title": ""
},
{
"docid": "edc17c9268f1c1175416d4dbc378a50b",
"text": "If the fee is paid directly from the account, then unfortunately no, you can not deduct it. It's probably too late now, but in the future you can ask the financial institution if they will allow you to write them a separate check to cover the fees. If they allow that then you can preserve your tax free account balance, and potentially deduct the fees too. More details here. Update: as discussed in the comments below, a strict interpretation of the IRS description of deductible investment expenses may not include expenses for a Roth IRA, even if they are paid outside of the account. However, there seems to be conflicting interpretations of this IRS rule, so I would advise speaking to an accountant or the IRS directly for clarification. But even if you determine you cannot deduct the fees, paying for them outside of the Roth is still a good idea because it enables you to maintain a higher balance in your tax advantaged account.",
"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": "547b4e9e1520ac085e0ddc41d12abe56",
"text": "It sounds like something is getting lost in translation here. A business owner should not have to pay personal income tax on business expenses, with the caveat that they are truly business expenses. Here's an example where what you described could happen: Suppose a business has $200K in revenue, and $150K in legitimate business expenses (wages and owner salaries, taxes, services, products/goods, etc.) The profit for this example business is $50K. Depending on how the business is structured (sole proprietor, llc, s-corp, etc), the business owner(s) may have to pay personal income tax on the $50K in profit. If the owner then decided to have the business purchase a new vehicle solely for personal use with, say, $25K of that profit, then the owner may think he could avoid paying income tax on $25K of the $50K. However, this would not be considered a legitimate business expense, and therefore would have to be reclassified as personal income and would be taxed as if the $25K was paid to the owner. If the vehicle truly was used for legitimate business purposes then the business expenses would end up being $175K, with $25K left as profit which is taxable to the owners. Note: this is an oversimplification as it's oftentimes the case that vehicles are partially used for business instead of all or nothing. In fact, large items such as vehicles are typically depreciated so the full purchase price could not be deducted in a single year. If many of the purchases are depreciated items instead of deductions, then this could explain why it appears that the business expenses are being taxed. It's not a tax on the expense, but on the income that hasn't been reduced by expenses, since only a portion of the big ticket item can be treated as an expense in a single year.",
"title": ""
},
{
"docid": "b96288340f7a74edaf5cd6401bbece0e",
"text": "All of this assumes that this relationship isn't as employer-employee relationship, which would require you to withhold taxes. If you send them a small token of appreciation, and you are unable to record it as a business expense, or some other deductible expense, you don't have to be concerned about how they claim it. They decide if they want to risk claiming it was a gift, or if they want to record it as an expense. Even if you say some magic phrase that you think will impress the IRS, the recipient can still decide declare it as income. To have any hope of being able to treat it as a gift they would have to be able to demonstrate that there is a non-business relationship. If you can claim it as a business expense, or a deductible expense, they will have to also claim it as income; because your documentation could point the IRS to their lack of documentation. Giving them a check or sending the payment electronically will require them to claim it as an income, since an audit could require them to explain every line on their bank statements.",
"title": ""
},
{
"docid": "ba1ad496da75fa89e0e779d75eb78141",
"text": "\"Yes, your business needs to be in the business of making money in order for you to deduct the expenses associated with it. I suppose in theory this could mean that if you take in $10,000 and spend $30,000 every year, you not only don't get a net deduction of $20,000 (your loss) but you have to pay tax on $10,000 (your revenue). However this is super fixable. Just only deduct $9500 of your expenses. Tada! Small profit.For all the gory details, including how they consider whether you have an expectation of profits, see http://www.cra-arc.gc.ca/E/pub/gl/p-176r/p-176r-e.html This \"\"expectation of profit\"\" rule appears to apply to things like \"\"I sell home décor items (or home decorating advice) and therefore need to take several multi week trips to exotic vacation destinations every year and deduct them as business expenses.\"\" If you're doing woodworking or knitting in your home and selling on Etsy you don't particularly have any expenses. It's hard to imagine a scenario where you consistently sell for less than the cost of materials and then end up dinged on paying tax on revenue.\"",
"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": "7ad5b8a7665f87f4c1a7685590461e7f",
"text": "This is tax fraud, plain and simple. I recently wrote an article The Step Transaction Doctrine, in which I explain that a series of events may each be legal, but aggregate to one transaction and the individual steps are ignored. In this case, it goes beyond that, by accepting $5/mo you are already outside the tax code. As littleadv noted, you can't work for a legitimate business for free and not expect to have some kind of issue. The $14K/yr gift isn't a bona fide gift, but ties to that work.",
"title": ""
}
] |
fiqa
|
8fccf49c9401543e983aa8b159d0c07a
|
Car as business expense, but not because of driving
|
[
{
"docid": "2ec447312a423d5378550f6d87afb5a5",
"text": "\"To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary. (IRS, Deducting Business Expenses) It seems to me you'd have a hard time convincing an auditor that this is the case. Since business don't commonly own cars for the sole purpose of housing $25 computers, you'd have trouble with the \"\"ordinary\"\" test. And since there are lots of other ways to house a computer other than a car, \"\"necessary\"\" seems problematic also.\"",
"title": ""
}
] |
[
{
"docid": "bacbe17f21b09d058f277e0c87cc31a0",
"text": "Keep this rather corny acronym in mind. Business expenses must be CORN: As other posters have already pointed out, certain expenses that are capital items (computers, furniture, etc.) must be depreciated over several years, but you have a certain amount of capital items that you can write off in the current tax year.",
"title": ""
},
{
"docid": "65d356f1ceb92551df5df086488317a0",
"text": "Here are the general guidelines on what you should report and pay - but the overall rule is that if it's not a business-related cost then you can't claim it. In your example, a client meeting may warrant a claim for 'entertaining clients' which could be claimed as a business cost - but buying yourself a coffee to get out of the house isn't a business cost.",
"title": ""
},
{
"docid": "cd7306a60bf14d01085ce39d5567c46d",
"text": "Two adages come to mind. Never finance a depreciating asset. If you can't pay cash for a car, you can't afford it. If you decide you can finance at a low rate and invest at a higher one, you're leveraging your capital. The risk here is that your investment drops in value, or your cash flow stops and you are unable to continue payments and have to sell the car, or surrender it. There are fewer risks if you buy the car outright. There is one cost that is not considered though. Opportunity cost. Since you've declared transportation necessary, I'd say that opportunity cost is worth the lower risk, assuming you have enough cash left after buying a car to fund your emergency fund. Which brings me to my final point. Be sure to buy a quality used car, not a new one. Your emergency fund should be able to replace the car completely, in the case of a total loss where you are at fault and the loss is not covered by insurance. TLDR: My opinion is that it would be better to pay for a quality, efficient, basic transportation car up front than to take on a debt.",
"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": "c5077001ffd4ef92ac752c81dde2867a",
"text": "Approximately 25% of all cars sold last year were leased, which is the highest on record. When you are leasing you don't own the car, instead you are basically renting it for a fixed term, and turning it back to the dealership. It is very cost effective, because the manufacturers have a keen interest in making lots of cars. They are often subsidizing the lease by giving incentives to the dealer. They are gambling on the future value of their cars. They can lose on that gamble. The car business has turned into a financial nightmare for the car companies; they have huge development costs as the cars become more like mobile computing platforms loaded with sensors, and software that is constantly changing. They can't hold a model for 20 years like Mercedes was able to do in the past. Now they have to constantly update their products. The only way to survive as a car maker is to pump out volume, and the leasing programs, which are quietly being underwritten by the manufacturers help them increase the production quantities, which helps lower the fixed development costs. If only the defense contractors could do this! they are stuck spending billions to build 20 planes, and so each one has a staggering price tag. In the future, the car companies that will survive are those that have terrific credit, and low borrowing costs. That means Japanese and Germans will own the car business entirely in the end, and countries with higher borrowing costs (like America and Brasil) will not be competitive. Luckily Ford is so frugal, due to the lingering spirit of its founder, that they can hold out. One thing strongly in favor of leasing is that you have zero maintenance costs typically. The repair risk is significant in luxury cars. When you buy a 10 year old BMW, and when the tranny goes, it costs a fortune. Having a superb car for 30 months for a few hundred bucks a month is something a lot of people enjoy doing. Who can blame them? you spend an hour or 2 a day in your car, and why not live in a nice place?",
"title": ""
},
{
"docid": "9fe54d3599894d568a96ea2e88b22f60",
"text": "You've got two options. Deduct the business portion of the depreciation and actual expenses for operating the car. Use the IRS standard mileage rate of $.575/mile in 2015. Multiply your business miles by the rate to calculate your deduction. Assuming you're a sole proprietor you'll include a Schedule C to your return and claim the deduction on that form.",
"title": ""
},
{
"docid": "3a24e8c7fb56eacce57030b2d4d34c3c",
"text": "For stocks, bonds, ETF funds and so on - Taxed only on realised gain and losses are deductible from the gain and not from company's income. Corporate tax is calculated only after all expenses have been deducted. Not the other way around. Real estate expenses can be deducted because of repairs and maintenance. In general all expenses related to the operation of the business can be deducted. But you cannot use expenses as willy nilly, as you assume. You cannot deduct your subscription to Playboy as an expense. Doing it is illegal and if caught, the tours to church will increase exponentially. VAT is only paid if you claim VAT on your invoices. Your situation seems quite complicated. I would suggest, get an accountant pronto. There are nuances in your situation, which an accountant only can understand and help.",
"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": "6d864190cdecc0a7b03e663b49b5604b",
"text": "It's my understand that leasing is never the better overall deal, with the possible exception of a person who would otherwise buy a brand new car every 2 or 3 years, and does not drive a lot of miles. Note: in the case of a company car, Canadian taxes let you deduct the entire lease payment (which clearly has some principal in it) if you lease, while if you buy you can only deduct the interest, and must depreciate the car according to their schedule. This can make leasing more attractive to those buying a car through a corporation. I don't know if this applies in the US. The numbers you ran through in class presumably involved calculating the interest paid over the term of the loan. Can you not just redo the calculation using actual interest and lease numbers from a randomly chosen current car ad? I suspect if you do, you will discover leasing is still not the right choice.",
"title": ""
},
{
"docid": "fa004f6659916743d7a9cfa6c7fcb905",
"text": "Also, depending where you buy the car in the US, you have to pay property tax every year for just having purchased the car.",
"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": "53a20d80b0a4b1fc95cd358082d398ce",
"text": "No, you can't claim personal expenses as business expenses. What is the alternative to paying someone to do your chores? Letting the chores go undone. How does it affect your business if your household chores go undone? It doesn't; it only affects your personal life--that's why they are personal expenses.",
"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": "62e95a628269a92d9a6eb88cf35f5c91",
"text": "\"Partly I suspect this is selection bias. You say you see so many luxury cars go by. But if you're looking for them, you're going to notice them. Have you calculated the actual percentage? Do they make up 50% of the cars that pass a specific point in a specific period of time? Or just 10% if you really counted? You say you live in Baltimore county, Maryland. That's a relatively wealthy area, so I'd expect the percentage of luxury cars to be higher than the national average. You'd likely see considerably fewer in the backwoods of Mississippi. That said, some people who own luxury cars can't really afford them. I'm reminded of a wonderful TV commercial I saw recently where a man is showing off all his material goods, he talks about his big house, and his swimming pool, and his fancy car, with a big smile on his face, standing tall, and generally looking proud and happy. And then he says, \"\"How do I do it?\"\" And suddenly his expression changes to complete despair, he slumps down, and says, \"\"I'm in debt up to my eyeballs.\"\" It turns out to be a commercial for a debt-counseling service. Some people put very high value on owning a fancy car and are willing to sacrifice on other things. If having a big fancy car is more important to you then, say, having a nice house or the latest computer or a big screen TV or dining out more often or going on more expensive vacations or whatever you have to give up to get the car, well, that's your decision. Personally I don't care much about a fancy car, I just want something that gets me where I want to go. And I've always figured that with an expensive car, you have to constantly worry about getting in an accident and damaging or destroying it. If you put your money into a big fancy house, at least houses rarely collide with each other. Personally, I make a nice income too. And I have a $500/month mortgage and zero car payment because I drive a 2003 pickup that I bought with cash. But I have two kids in college and I'm trying to get them through with no debt, that's where all my money is going.\"",
"title": ""
},
{
"docid": "75656afe53e2639b2f91fdf7f2c72eff",
"text": "\"Using a \"\"vehicle\"\" is a common technique to isolate project-specific risk from the remainder of the company. There's not any problem with the vehicle making zero paper profits, it was only ever a paper company. The dodgy bit is when they start offering remuneration to participants based on the vehicle's profits - anyone with any sense goes on gross. Or when they are artificially shifting the profits around for tax reasons.\"",
"title": ""
}
] |
fiqa
|
31f6cb7a9329706a7648ea911a939cc0
|
Can a business refuse to take credit cards?
|
[
{
"docid": "767066e1be82bb833f52d561ec8096d6",
"text": "Businesses are free to decide what payment methods they accept for their goods and services. Businesses sometimes advertise what credit cards they accept by posting some stickers at their door. When your credit card isn't among them and you don't have enough cash with you, ask about your card before you order. If a business doesn't accept your credit card, your best recourse is to take your business elsewhere. When you already ate there and got into an awkward situation because you assumed that they would accept your card, you might also want to write an online review of the place and warn others to bring cash for their visit (but please be fair in the review. When the food and service are decent, a restaurant doesn't deserve a one star rating just because they don't take credit cards). Note that businesses have good reasons to not accept credit cards. It often means additional cost for them in form of: But there is also a more shady reason. Taking payment in cash means that there is no electronic trail of the transaction. That makes it far easier for an establishment to misreport their income. They might under-report it to evade taxes or over-report it to launder money (both are illegal, of course).",
"title": ""
}
] |
[
{
"docid": "a14f39ffe1e331e017210025d8ca5d46",
"text": "Can they reject a hundred dollar bill as a payment of debt?! No. A creditor cannot refuse payment in cash, whatever denomination you use. HOWEVER, when you're buying stuff - you don't owe anything to the business owner. There's no debt, so the above rule doesn't apply. As long as there's no debt in existence, the matter of payment is decided between two parties based on the mutual agreement. The demand not to use large bills is reasonable in places like 7/11 or taxi-cab that are frequently robbed, or at a small retailer that doesn't want to invest into forgery detection and fraud prevention. So the answer to this question: Is it the case where this practice of accepting small bills and rejecting large bills is perfectly legal? Is yes. You can find the full explanation on Treasury.gov, including code references.",
"title": ""
},
{
"docid": "3a78bb55ecfe2fb430be31b6985c68b4",
"text": "It depends completely on the nature of the takeover. When a business is bought, the new owner takes on the obligations of the prior owner, the debts don't just go away. When a business files for bankruptcy, its debts may get discharged, and gift card holders can easily be the first ones to get nothing back. A case in point was Sharper Image who stopped honoring gift cards even while the doors were open as they filed for bankruptcy.",
"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": "7202c02754a88269aa4ffc5136196e19",
"text": "Not necessarily. You can issue credit cards without a bank involved, although companies which do so may have additional legal complications, such as usury regulations. As an example, AmEx is a network which also issues cards themselves. The company is not a bank; they sold their banking subsidiary in 2007. It's also possible to get a bank-issued credit card without banking with that same company.",
"title": ""
},
{
"docid": "1f701108a459b9a53b0321a57a73b2e3",
"text": "Merchants that accept American Express should have decided that the extra costs are worth the increased business (many business travelers only have an Amex Corporate Card). To complain about people actually using it after they've explicitly decided to accept it is a sign that they made the wrong decision, or that they are very short-sighted. No one is forcing them to take a particular card.",
"title": ""
},
{
"docid": "fc9e6fa705358329c493d5f29d33399b",
"text": "\"Why would you consider it null and void? It might be that something went wrong and the business \"\"lost\"\" the transaction one way or another. It might be something else. It might never appear. It might appear. In one of the questions a while ago someone posted a link of a story where an account was overdrawn because of a forgotten debit card charge that resurfaced months later. Can't find the link right now, but it can definitely happen.\"",
"title": ""
},
{
"docid": "d19b0103e3bdf6e7390cbfafdd26fa66",
"text": "Accepting cash isn't free to the merchant's either. It needs to be counted, reconciled, stored, and taken to the bank each day. There is a certain amount that needs to be on-hand, not in the bank earning interest. There is more of a worry about employees taking cash from the register. There is the chance of inadvertently accepting counterfeit currency. I'm not sure how the cost of cash compares to the cost of accepting credit card, but there is a cost that cannot be ignored.",
"title": ""
},
{
"docid": "e138d48bd150ef9c9d160460027a7c44",
"text": "Because your friend isn't going to like the ~2% charge they have to pay to the credit card company on the $10,000 purchase. Credit card companies make money off of transactions. The cardholder normally doesn't pay any transaction fees (and in fact can make a profit via rewards), but the merchant has to pay a certain amount of money to the credit card company for the transaction. In this case, the apartment owners ate the charge, likely because it was easier for them to send a check than to refund the cost of the fee through the credit card company. If you started doing this a lot to take advantage of this, I would imagine they would get smart and refuse your business (it'll be pretty obvious what you're doing if you're not signing any leases).",
"title": ""
},
{
"docid": "d18beb46cb0338a631f4fa4b4b77fcea",
"text": "My understanding it that the signature requirement is at the retailer's discretion. If the merchant decides to require a signature it protects them against fraudulent charge-back claims, but increases their administrative costs. In some situations it just isn't practical for a retailer to require a signature. Consider for example mail-order or online purchases, which I've never had to sign a credit card slip for.",
"title": ""
},
{
"docid": "b4667ca0b508c1213651893932ccb69e",
"text": "\"Understood. But based on the OP, it's not categorically clear what they were refusing. If they refused to quote the balance and/or refused to take a phone payment that was otherwise in keeping with the cardholder agreement (i.e., the cardmember called the correct number for phone payments and balance-checking, etc), then yeah, they were not only being unreasonable, but also violating the contract. What I read as ambiguous is whether the cardholder was specifically asking for the *payoff* balance/amount, and whether they were following process for phone-payments and balance-checking, etc. IOW, it's not necessarily \"\"illegal\"\" and might not even be unreasonable for the customer-service number to have different departments for balance-checking and phone-payments versus card-cancellation. It's not falsifiably clear from the OP that the cardholder was not asking the person on the other end of the phone for categorical statements of fact that they were obligated to make. I'm not accusing anyone of lying or saying that the CC company was acting reasonably, I'm just saying that language such as **\"\"They do not provide mid-cycle payoff quotes\"\"** is not evidence that they were doing any kind of funny-business.\"",
"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": "8be60d4f9c2f4fab7b7b8bded259d26a",
"text": "A lot of stores, especially smaller ones, won't accept card payments under $10.00. They pay a fee for taking cards and for small transactions it is not worth it.",
"title": ""
},
{
"docid": "d3a3089e2ce15824c40e5d7da0c02e29",
"text": "Is this even legal? How can a bank refuse to deposit legal tender in the United States? Legal for all debts, public or private, doesn't mean quite what I used to think, either. Per The Fed: This statute means that all United States money as identified above is 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 payment for goods or services. Private businesses are free to develop their own policies on whether to accept cash unless there is a state law which says otherwise. Yes, they can refuse loose change. Also, they aren't refusing your deposit, just requiring that it be rolled. What do I do with my change? I do not want to spend the time rolling it, and I am not going to pay a fee to cash my change. There aren't many other options, change is a nuisance. I believe Coinstar machines reduce/remove their fee if you exchange coins for gift cards, so that might be the best option for convenience and retaining value.",
"title": ""
},
{
"docid": "d19ff474c7687bd9781ae3e068dc4f54",
"text": "I don't carry cash at all unless I know I'm going somewhere which requires it - this includes going to the corner shop for some milk or going to other countries for a week. Cards are easier for me - if a merchant wants my business they will take my money through whatever means they can. I don't think etiquette comes into it.",
"title": ""
},
{
"docid": "c2459fcb87bad231f9faf83c0f25e64d",
"text": "As long as you don't finance and the payment is upfront, its up to you and your customer how to pay. If you provide the product before the payment is being made or finance in any way (i.e.: there's debt), then the Canadian dollar, being legal tender in Canada, must be accepted. Considering the large amount, you would probably not be accepting cash anyway, so the point is moot. How they pay their credit cards is not your problem. However, do take into the account the currency exchange rates and fees that add costs to purchasing your product. If you don't have any physical presence (i.e.: online store only, no physical location on Canadian soil), then it goes by the rules of the jurisdiction where you've incorporated. Check with the local legal professional to be sure.",
"title": ""
}
] |
fiqa
|
ca61ba4bd34cbceab482d4a0cb67f609
|
Buying car from rental business without title
|
[
{
"docid": "3e48ff78f0a9989139b2a2c1115f7dac",
"text": "I would steer well clear of this. The risk is that they take your money but don't pay the bank. This wouldn't require dishonesty - what if they run into financial trouble? Any money of yours that they have that hasn't gone on to the bank yet might end up paying off other debts instead of yours. It's not clear if the idea is that you are paying them all the money up front or will be making payments over time, but either way if they don't clear the lien with the bank then the bank can come after the car no matter who is in physical possession of it. That would leave you without either the money or the car. In theory you'd have a legal claim against the seller, but in reality you'd probably find it hard to collect.",
"title": ""
}
] |
[
{
"docid": "5b33653164a3081cba70f7d0a1fb18f8",
"text": "The key here is the bank, they hold the title to the car and as such have the final say in things. The best thing you can do is to pay off the loan. Could you work like crazy and pay off the car in 6 months to a year? The next best thing would be to sell the car. You will probably have to cover the depreciation out of pocket. You will also need to have some cash to buy a different car, but buy it for cash like you should have done in the first place. The worst option and what most people opt for, which is why they are broke, is to seek to refinance the car. I am not sure why you would have to wait 6 months to a year to refinance, but unless you have truly horrific credit, a local bank or credit union will be happy for your business. Choose this option if you want to continue to be broke for the next five years or so. Once any of those happen it will be easy to re-title the car in your name only provided you are on good terms with the girlfriend. It is just a matter of going to the local title office and her signing over her interest in the car. My hope is that you understand the series of foolish decisions that you made in this vehicle purchase and avoid them in the future. Or, at the very least, you consciously make the decision to appear wealthy rather than actually being wealthy.",
"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": "b51589201c2d2e7f27a9572b11c42113",
"text": "The Nebraska DMV web site has a neat page about this. It seems to be fairly simple, and not costly to record a lien and later release it. Just go there with the title and the sales agreement that details the terms, and pay the $7 fee.",
"title": ""
},
{
"docid": "4d10afb74a50006ce9098f1051561fee",
"text": "An auto title loans are typically utilized by those that wish to obtain a funding with bad credit rating or no credit in any way. An auto-mobile title lending frequently called a vehicle title lending or merely title funding as well as pink slip funding’s. You merely should have a vehicle that is paid off or nearly paid off and also you could make use of the auto title as security to obtain the cash money you require, enabling you to continue driving your vehicle while paying your loan. Get Auto Car Title Loans Desert Hot Springs CA and nearby cities Provide Car Title Loans, Auto Title Loans, Mobile Home Title Loans, RV/Motor Home Title Loans, Big Rigs Truck Title Loans, Motor Cycle Title Loans, Online Title Loans Near me, Bad Credit Loans, Personal Loans, Quick cash Loans Contact Us: Get Auto Car Title Loans Desert Hot Springs CA 14080 Palm Dr. Ste D # 227, Desert Hot Springs, CA 92240 760-993-3301 [email protected] http://getautotitleloans.com/car-and-auto-title-loans-desert-hot-springs-ca/",
"title": ""
},
{
"docid": "ccaf4e379ae155f8f1ddd2d94784a9e7",
"text": "The old truck is collateral for a loan. The place that made the loan expects that if you can't pay they can repossess that old truck. If you sell it they can't repossess it. The dealer needs clean title to be able to buy the truck from you, so they can fix up the truck and sell it to somebody else. I am assuming the the lender has filed paperwork with the state to show their lien on the title. Your options are three: As to option 2: If the deal still makes sense the new car dealer can send the $9,000 to the lender that you forgot about. That will of course increase the amount of money you have to borrow. You will also run into the problem that this loan that you forgot to mention on your credit application may cause them to rethink the decision to loan you the money.",
"title": ""
},
{
"docid": "887b6da259f747c3ebaa6117d49b4758",
"text": "Not sure if it is the same in the States as it is here in the UK (or possibly even depends on the lender) but if you have any amount outstanding on the loan then you wouldn't own the vehicle, the loan company would. This often offers extra protection if something goes wrong with the vehicle - a loan company talking to the manufacturer to get it resolved carries more weight than an individual. The laon company will have an army of lawyers (should it get that far) and a lot more resources to deal with anything, they may also throw in a courtesy car etc.",
"title": ""
},
{
"docid": "893f4647c49ce9b1a99d36fda912461e",
"text": "You could have the buyer go to the bank with you so that he can get evidence that the loan will be paid in full and that the lien will be lifted. The bank won't sign over the title (and lift the lien) until the loan is paid back in full. DMV.org has a pretty good section about this. (Note: not affiliated with the actual DMV) Selling to a Private Party Though more effort will be required on your part, selling a car with a lien privately could net you a higher profit. Here are a few things you'll need to consider to make the process easier: Include the details of the lien in your listing. You'll list an advertisement for your car just as you would any other vehicle, with the addition of the lien information that buyers will need so as to avoid confusion. Sell in the location of the lienholder, if possible. If the bank or financial institution holding the lien is located in the area you're trying to sell, this will make the transaction much easier. Once you make an agreement with the buyer, you can go directly to the lender to pay off the existing lien. Ownership can then be transferred in person from the financial institution to the buyer. Consider an escrow service. If the financial institution isn't in your area, an escrow service can help to ensure a secure transaction. An escrow service will assume responsibility for receiving payments from the buyer and will hold the title until the purchase is complete. Advantages of an escrow service include: Payoff services, which will do most of the work with the financing institution for you. Title transfer services, which can help to ensure a safe and legitimate transaction and provide the necessary paperwork once the sale is complete.",
"title": ""
},
{
"docid": "ab9131fad945a1648aa94139b727c914",
"text": "\"I don't think that there is a generic answer that will apply to this question across all goods. The answer depends on how the related businesses work, how much insight you have into the true value of the goods, and probably other things. Your car example is a good one that shows multiple options - There are dealers who will buy as a single transaction, sell as a single transaction, or do a simultaneous sell with trade-in. I had a hot tub once, on the other hand, where I could find people who would do a trade-in, but there was no dealer who would just buy my used tub. There's not much parallel between the car and the tub because the options available are very different. To the extent that there is a generic answer, I generally agree with the point in @keshlam's answer about trying to avoid entrapment, but I take a slightly different view. If you want to get your best deal, you need to have an idea going into the process of what you want in net and keep focused on meeting your goal. If for some reason, it's convenient for the dealer to \"\"move money around\"\" between the new car and the trade-in, I'm ok with that as long as I'm getting what I want out of the deal. If possible, I prefer to deal with both transactions at once because it's simpler. At the same time, I'm willing to remove the trade-in from the deal if I'm not getting what I want. (Threatening to do so can also give you some information about where the dealer really puts the value between the new car and trade-in since, if you threaten to pull the trade-in, the price on the car will probably change in response.)\"",
"title": ""
},
{
"docid": "3eec08f53ddb437a4e142b74fbd3492f",
"text": "Is your name on the title at all? You may have (slightly) more leverage in that case, but co-signing any loans is not a good idea, even for a friend or relative. As this article notes: Generally, co-signing refers to financing, not ownership. If the primary accountholder fails to make payments on the loan or the retail installment sales contract (a type of auto financing dealers sell), the co-signer is responsible for those payments, or their credit will suffer. Even if the co-signer makes the payments, they’re still not the owner if their name isn’t on the title. The Consumer Finance Protection Bureau (CFPB) notes: If you co-sign a loan, you are legally obligated to repay the loan in full. Co-signing a loan does not mean serving as a character reference for someone else. When you co-sign, you promise to pay the loan yourself. It means that you risk having to repay any missed payments immediately. If the borrower defaults on the loan, the creditor can use the same collection methods against you that can be used against the borrower such as demanding that you repay the entire loan yourself, suing you, and garnishing your wages or bank accounts after a judgment. Your credit score(s) may be impacted by any late payments or defaults. Co-signing an auto loan does not mean you have any right to the vehicle, it just means that you have agreed to become obligated to repay the amount of the loan. So make sure you can afford to pay this debt if the borrower cannot. Per this article and this loan.com article, options to remove your name from co-signing include: If you're name isn't on the title, you'll have to convince your ex-boyfriend and the bank to have you removed as the co-signer, but from your brief description above, it doesn't seem that your ex is going to be cooperative. Unfortunately, as the co-signer and guarantor of the loan, you're legally responsible for making the payments if he doesn't. Not making the payments could ruin your credit as well. One final option to consider is bankruptcy. Bankruptcy is a drastic option, and you'll have to weigh whether the disruption to your credit and financial life will be worth it versus repaying the balance of that auto loan. Per this post: Another not so pretty option is bankruptcy. This is an extreme route, and in some instances may not even guarantee a name-removal from the loan. Your best bet is to contact a lawyer or other source of legal help to review your options on how to proceed with this issue.",
"title": ""
},
{
"docid": "92a61455d9f49c80b5be72ef8cd10f71",
"text": "As far as ease of sale transaction goes you'll want to pay off the loan and have the title in your name and in your hand at the time of sale. Selling a car private party is difficult enough, the last thing you want is some administrivia clouding your deal. How you go about paying the remaining balance on the car is really up to you. If you can make that happen on a CC without paying an additional fee, that sounds like a good option.",
"title": ""
},
{
"docid": "3afa01632d0806e42be788925051b20c",
"text": "You can buy a new Toyota from a non-dealer, but not from Toyota directly as they have no retail distribution capability. There is no need to buy directly from Toyota if you want to get a new car without going through a dealer. In many cases people buy new cars but have to sell them immediately for one reason or another.",
"title": ""
},
{
"docid": "f41d87bd1323ffe19c0574c0dbb2b3d5",
"text": "\"I somehow doubt there's any \"\"cast-iron\"\" reservation. Like airline carriage contracts, I bet in those multi page, tiny font legalese that actually is the rental car contract that everyone agreed to when they book (but few will read in its entirety I imagine)...there are clauses in there that probably say your reservation is not guaranteed and the rental company reserves the right to cancel cars for any reason. Obviously if you're one of those frequent rental program person/top tier member you will likely be not nearly as likely to be cancelled on as opposed to some rando guy renting...\"",
"title": ""
},
{
"docid": "26f95a2808dafcb66cc99e109505fd27",
"text": "How is wanting what he reserved and paid for kicking the ladder out from under him? He reserved and paid a premium for a convertible. If the rental company doesn't want to stock a convertible, don't offer it as a reservable option, and don't charge someone a premium and then give them a non premium car.",
"title": ""
},
{
"docid": "2877ea212c9e3863024c98fb6b9f6fa0",
"text": "In a perfect world scenario you would get a car 2-5 years old that has very little mileage. One of the long standing archaic rules of the car world is that age trumps mileage. This was a good rule when any idiot could roll back an odometer. Chances are now that if you rolled your odometer back the car was serviced somewhere, had inspection or whatever and it is on a report. If seller was found to do this they could face jail time and obviously now their car is almost worthless. Why do I mention this? Because you can take a look at 2011 cars. Those with 20K miles go for just a little more than those with 100K miles. As an owner you will start incurring heavy maintenance costs around 100K on most newer cars. By buying cars with lower mileage, keeping them for a year or two, and reselling them before they get up in miles, you can stay in that magic area where you can drive a pretty good car for $200-300 a month. Note that this takes work on both the buying and selling side and you often need cash to get these cars (dealers are good about siphoning really good used cars to employees/friends). This is a great strategy for keeping costs down and car value up but obviously a lot of people try to do this and it takes work and you have to be willing to settle sometimes on a car that is fine, but not exactly what you want. As for leasing this really gets into three main components: If you are going to do EVERYTHING at a dealership and you want something new or newish you might as well lease. At least then you can shop around for apples to apples. The problem with buying a new/used car from the dealers in perpetuity isn't the buying process. It is the fact that they will screw you on the trade-in. A car that books for 20K may trade-in for 17K. Even if the dealer says they are giving you 20K, then they make you pay list price for the car. I have many many times negotiated a price of a car and then wife brought in our car separately and I can count on ZERO fingers how many times that the dealership honored both sides of the negotiations. Not only did they not honor them but most refused to talk with us after they found out. With a lease you don't have to worry about losing this money in the negotiations. You might pay a little extra (or not since you can shop around) but after the lease you wash your hands of the car. The one caveat to this is the high-end market. When you are talking your Acura, Mercedes, Lexus... It is probably better to buy and trade in every couple years. You lose too much equity by leasing, where it won't cover the trade-in gap and cost of your money being elsewhere. I have a friend that does this and gets a slightly better car every 2-3 years with same monthly payment. Another factor to consider is the price of a car. If your car will be worth over $15K at time of sale you are going to have a hard time selling it by owner. When amounts get this high people often need financing. Yes they can get personal financing but most people are too lazy to do this. So the number of used car buyers on let's say craigslist are way way fewer as you start getting over $10-12K and I have found $15K to be kind of that magic amount. The pro-buy-used side is easy. Aim for those cars around $12-18K that are out there (and many still under warranty). These owners will have issues finding cash buyers. They will drop prices somewhere between book price and dealer trade-in. In lucky cases where they need cash maybe below dealer trade-in. And remember these sellers aren't dealing with 100s let alone 10 buyers. You drive the car for 3-4 years. Maybe it is $7-10K. But now you will get much much closer to book price because there will be far more buyers in this range.",
"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": ""
}
] |
fiqa
|
6ade17792ead0d4df347654d1b9ce72d
|
Why should I choose a business checking account instead of a personal account?
|
[
{
"docid": "7403614f3f37ea3a0f0fd2f044b47884",
"text": "\"Some benefits of having a business checking account (versus a personal checking account) are: The first 3 should be pretty easy to determine if they are important to you. #4 is a little more abstract, though I see you have an LLC taxed as a sole proprietorship, and so I'm guessing protecting your personal assets may have been one of the driving reasons you formed the LLC in the first place. If so, \"\"following through\"\" with the business account is advised.\"",
"title": ""
}
] |
[
{
"docid": "954366c292367a5d222b983be4aa261a",
"text": "1. this is not the correct sub, try /r/Entrepreneurs or similar 2. Banks only care about 1 thing: collaterals with personal guarantee from the owners/shareholders of the business. Nothing else matters, don't waste your time with a business plan. (Yes ELI: bank only give money to people who have money).",
"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": "8cb2a9643708b5505e3ebd3fc591d30f",
"text": "\"Technically it doesn't matter what size the check is. In fact, it doesn't even have to be written on paper. While writing it on a cow may not always fly, almost any object actually will. That said, more to the question asked - you can definitely use the smaller \"\"personal\"\"-sized checks for a business account. The larger checks formatted to the \"\"letter\"\" page size: if you cut it into three equal pieces with a tiny bit left for the binder holes - you'll get exactly three check-sized pieces. This is convenient for those printing checks, keeping carbon-copy records etc. Regarding the MICR line: I just checked my business check book, which is of a smaller \"\"personal\"\" size (that I got for free from the bank) - the check number is at the end.\"",
"title": ""
},
{
"docid": "8f414572f1273861b9e4d36c3ad3e02a",
"text": "As I replied to someone else who said that: I'm often having to send stuff with the check. Paperwork, a bill etc. While that would work to a person who knows me, it's usually not going to work with a business or government who needs to know why I'm sending this check.",
"title": ""
},
{
"docid": "646a544547af13b516d0c897e77d1e74",
"text": "On a personal Loan Yes. On a business loan, it would depend on the Bank and they would like to understand the purpose of the loan and need it to be secured. They may not even grant such kind of business loan.",
"title": ""
},
{
"docid": "0b765d68528c6fdf490f9af8dd659d99",
"text": "\"Checks sold as \"\"business checks\"\" are larger than checks sold as \"\"personal checks\"\". Personal checks are usually 6\"\" x 2 1/2\"\" while business checks are 8 1/2 \"\" x 3 to 4 \"\". Also, business checks typically have a tear-off stub where you can write who the check was made out to and what it was for. In this computer age that seems pretty obsolete to me, I enter the check into the computer, not write it on a stub, but I suppose there are still very small businesses out there that doesn't use a computerized record-keeping system. These days business checks are often printed on 8 1/2 by 11\"\" paper -- either one per sheet with a big tear-off or 3 per sheet with no tear off -- so you can feed them through a computer printer easily. Nothing requires you to use \"\"business checks\"\" for a business account. At least, I've always used personal checks for my business account with no problem. These days I make almost all payments electronically, I think I write like one paper check a year, so it's become a trivial issue. Oh, and I've never had any problem getting a check printer to put my business name on the checks or anything like that.\"",
"title": ""
},
{
"docid": "17609ed5dd1c22d3b7733a7358c9a2a2",
"text": "\"I expect the company wanted to pay you for a product (on a purchase order) rather than as a contract laborer. Whatever. Would they be willing to re-issue the check to you as a sole proprietor of a business named ABC Consulting (or anything like that)? You can register your sole proprietor business with the state using a \"\"Doing Business As\"\" (DBA, or fictitious name), and then open the bank account for your business using the check provided by the customer as the first deposit. (There is likely a smaller registration fee for the DBA.) If they won't re-issue the check and you have to go the LLC route... Scrounge up $125 doing odd jobs or borrowing from a friend or parents. Seriously, anyone can earn that amount of money in a week or two. Besides the filing fee for the LLC, your bank may require you to provide an Operating Agreement (which is not required by the State). The Operating Agreement can be simple, or more complex if you have a partner (even if it's a spouse). If you do have a partner, it is essential to have such an agreement because it would specify the responsibilities and benefits allocated to each partner, particularly in the event of equity distributions (taking money out of the business, or liquidating and ending the LLC). There are websites that will provide you a boilerplate form for Operating Agreements. But if your business is anything more than just single member LLC, you should pay an attorney to draw one up for you so the wording is right. It's a safeguard against potential future lawsuits. And, while we're at it, don't forget to obtain a EIN (equivalent to a SSN) from the IRS for your LLC. There's no cost, but you'll have to have it to file taxes as a business for every year the LLC exists and has income. Good luck!\"",
"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": "e8b519843c1cfb257ec05d9e29eb780c",
"text": "In my opinion, separating your money into separate accounts is a matter of personal preference. I can only think of two main reasons why people might suggest separating your bank accounts in this way: security and accounting. The security reasoning might go something like this: My employer has access to my bank account, because he direct deposits my salary into my account. I don't want my employer to have access to all my money, so I'll have a separate account that my employer has access to, and once the salary is deposited, I can move that money into my real account. The fault in this reasoning is that a direct deposit setup doesn't really give your employer withdrawal access to your account, and your employer doesn't have any reason to pull money out of your account after he has paid you. If fraud is going to happen, it much more likely to happen in the account that you are doing your spending out of. The other reason might be accounting. Perhaps you have several bank accounts, and you use the different accounts to separate your money for different purposes. For example, you might have a checking account that you do most of your monthly spending out of, you might have a savings account that you use to store your emergency fund, and you have more savings accounts to keep track of how much you have saved toward your next car, or your vacation, or your Christmas fund, or whatever. After you get your salary deposited, you can move some into your spending account and some into your various savings accounts for different purposes. Instead of having many bank accounts, I find it easier to do my budgeting/accounting on my own, not relying on the bank accounts to tell me how much money I have allocated to each purpose. I only have one checking account where my income goes; my own records keep track of how much money in that account is set aside for each purpose. When the checking account balance gets too large, I move a chunk of it over to my one savings account, which earns a little more interest than the checking account does. I can always move money back into my checking account if I need to spend it for some reason, and the amount of money in each of the two accounts is not directly related to the purpose of the money. In summary, I don't see a good reason for this type of general recommendation.",
"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": "99d140993e72032226919ac7ef175059",
"text": "A checking account is one that permits the account holder to write demand drafts (checks), which can be given to other people as payment and processed by the banks to transfer those funds. (Think of a check as a non-electronic equivalent of a debit card transaction, if that makes more sense to you.) Outside of the ability to write checks, and the slightly lower interest rate usually offered to trade off against that convenience, there really is no significant difference between savings and checking accounts. The software needs to be designed to handle checking accounts if it's to be sold in the US, since many of us do still use checks for some transactions. Adding support for other currencies doesn't change that. If you don't need the ability to track which checks have or haven't been fully processed, I'd suggest that you either simply ignore the checking account feature, or use this category separation in whatever manner makes sense for the way you want to manage your money.",
"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": "37e38b00009688a5f953c84a8685cce1",
"text": "My wife and I have two Schwab brokerage accounts, one for retirement and one for non-retirement investments. The latter also has a checking/savings account which we use as our main account. Schwab is very happy with us, as we are cheapskates and save a lot of money. The checking account, which seems to act like any ordinary checking account, gives us all the things listed above. They pay the ATM fees, which is not a lot of money, but seems like a nice thing to me. We can also do cash deposits and we can go to any Schwab branch to talk to someone face to face. We've only had to do the latter once in 10 or so years, and the former maybe once or twice.",
"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": "b9581148b6453c1697ee377b6f87be88",
"text": "The best ask is the lowest ask, and the best bid is the highest bid. If the ask was lower than the bid then they crossed, and that would be a crossed market and quickly resolved. So the bid will almost always be cheaper than the ask. A heuristic is that a bid is the revenue of the stock at any given time while the ask is the cost, so the market will only ever offer a profit to itself not to the liquidity seeker. If examining the book vertically, all orders are usually sorted descending. Since the best ask is the lowest ask, it is on the bottom of the asks, and vice versa for the best bid. The best bid & best ask will be those closest since that's the narrowest spread and price-time priority will promise that a bid that crosses the asks will hit the lowest ask, the best possible price for the bidder and vice versa for an ask that crosses the best bid.",
"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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
396fe12892460c5e4a85d7aef5b17e68
|
Tax planning for Indian TDS on international payments
|
[
{
"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": "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": "5b4ff9f4f9ce7b7f9ab09a70362e4047",
"text": "This is something better asking a licensed professional (EA/CPA licensed in the US) who's also familiar with your home country tax law and the tax treaty your home country has with the US. Assuming no tax treaty and adverse tax consequences at home, you can have this scenario: The last step is critical - unless there's a tax treaty, not every country allows foreign tax credit (tax treaties usually have a provision to avoid double taxation), and you may end up paying both the US tax and local tax on the same money. If there's a tax treaty - step #4 is most likely guaranteed. Step #4 may not work in some places that would not consider the penalty as tax. Again - check it with an accountant proficient with the local law. Step #3 depends on your country. Some countries ignore foreign deferred compensation rules and consider the 401k amounts income to you when it was deposited (the US treats foreign tax deferred accounts this way, I believe that is also the case in India). So you should check locally. In this case you have probably paid taxes (or were exempt) on this amount when you earned it and will not pay taxes again. But then you might also not be able to claim the 10% back as credit. Leaving it is an option, although with such an amount is hardly worth it. You'll have to check how your country deals with foreign accounts of its citizens (the US, for example, puts an enormous reporting and tax burden on these, some countries forbid them altogether). This also applies to step #1.",
"title": ""
},
{
"docid": "113b8719c3b38c3c58e18fcdbf173cf9",
"text": "There is no tax liability for your brother in India as under gift tax,t there is no cap on amount. The transaction may be taxable to you in US, as there is a limit of USD 14000 per year per person.",
"title": ""
},
{
"docid": "31abacd665512fee2feb11e369758173",
"text": "Is this money taxable in US? From what you described you're likely to have been a US tax resident. As such, you're taxed on your worldwide income. Foreign tax deferral schemes are not considered qualified under the US law (unless a treaty says otherwise), so you're liable for taxes on them now. Get a new tax adviser.",
"title": ""
},
{
"docid": "54b406db5cd92e5aae7e95eb64f7b17a",
"text": "How to send the full loan amount from Saudi Arabia (money exchange), because I have a money transfer limit? There is no limit for sending money into India. Just use the right banking channel and transfer the funds. If I sent to India, what about tax and all that in India? In a financial year if you are outside of India for more than 182 days, you are Non-Resident for tax purposes. Any money you earn outside of India is tax free in India. i.e. there is no tax for this funds in India. If it is possible to send the money, to whom do I have to send it (my account, or my parents account) Whatever is convenient, preferably to your own NRE/NRO account. Any documents I have to show for tax issues (in case tax) You have to establish that you are NRI and hence this funds are not taxable. Hence its best you transfer into NRE/NRO account. If you transfer to your parents account, you would need a gift deed to make this non-taxable to your parents. I have savings account my self in Axis Bank, for the past 3 years I am paying taxes, if I send to my Axis Bank account how can I withdraw the full amount (10 lakhs (1,000,000)) on single day Withdrawal is possible by cash or cheque You can write a check, do a NEFT/RTGS transfer to your loan account, you can withdraw cash by giving some notice time to the Branch Manager of your Branch.",
"title": ""
},
{
"docid": "ce5a9711abf6e3faffd048d87194ae7e",
"text": "\"Do I need to pay taxes in India in this scenario? For India tax purposes, you would still qualify as \"\"Resident Indian\"\". As a resident Indian you have to pay taxes on Global income. It is not relevant whether you transfer the money back to India to keep in US. The income is generated and taxable. Depending on your contract, presumably you are working as a free lance; certain expenses are allowed to be deducted from your income, for example if you purchase equipment to help carry out the work, stay / entertainment costs, etc. Consult a professional CA who should be able to guide you on what is eligible and what is not. The balance along with your other income will be taxed as per tax brackets. There is exemption for certain category of workers, mostly in entertainment industry where such income is not taxable. This does not apply to your case.\"",
"title": ""
},
{
"docid": "9eeb6c87801bc2c84330851fda5cc381",
"text": "To be fair, Inland Revenue has options here. They don't have to accept this transfer pricing scheme Starbucks has come up with to funnel their profits to, almost certainly, some overseas tax haven. I work with the Treasury team at a large British multinational pharma company in Japan. There are constant disputes between Inland Revenue and the IRS and the Japanese NTA and the British, Japanese and U.S. companies over what is an appropriate or inappropriate level of royalty for patents and trademarks owned by the three and licensed back and forth.",
"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": "5f9f12283747233c77cd51b2d3cbe33c",
"text": "France taxes capital / dividend gains accrued in France. Hence you will not be able to reduce this liability. India does have a Double Tax Avoidance Treaty with France and you can claim relief for the tax paid in France.",
"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": "ac6ae89f7f5eb0d3df5301a48dd439f6",
"text": "If you are a non resident Indian, the income you earn and transfer to India is tax free in India. You can hold the funds in USD or convert then into INR, there is no tax implication.",
"title": ""
},
{
"docid": "fa74f9772e688a7311fdd7a91a3b9504",
"text": "Are there any IRS regulations I should be aware of when sending money to India? None. As long as you are following the standard banking channels. You are also declaring all the accounts held outside US in your tax returns. FBAR. Is it legal to do so? Yes it is legal. do I have to declare how much I am investing and pay extra taxes? As part of FBAR. Income earned [including interest, capital gains, etc] needs to be paid in India [there are some exemptions for example interest on NRE accounts] as well as in the US [relief can be claimed under DTAA Indian version here and US here]. So if you already have paid taxes on salary and say transfer USD 10K to India; there is no tax on this 10K. If this 10K generates an income of say 2K; this 2K is taxable as per normal classification and rules.",
"title": ""
},
{
"docid": "3eb2be021982362d70ed7a5b1a30dcf6",
"text": "By earning money, I assume you are being paid a salary [and not allowance] in UK. For the Financial Year 2013-2014: You are still a tax resident in India. India taxes Global income. Hence your salary from 4th Feb to 31st March, needs to be declared as Income. The tax will be at your total tax brackets. India does have a Double Tax Avoidance Treaty [DTAA] with UK, so you can deduct any taxes you paid on this income and pay balance in India. Please note that it is not relevant whether you transfer money to India or keep in UK, it does not change the taxability. For the financial Year 2014-2015: Depending on the exact date, you may or may not be a NRI [away for more than 182 days] for tax purposes. If you are an NRI there no tax, else as above para.",
"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": "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": "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": ""
}
] |
fiqa
|
63f2c8cab98f8f2792e25c3292582b9c
|
Are banks really making less profit when interest rates are low?
|
[
{
"docid": "5d7cffc6473a5e945a5e089e0fb84d00",
"text": "profit has nothing to do with the level of interest rates. Is this correct? In theory, yes. The difference that you're getting at is called net interest margin. As long as this stays constant, so does the bank's profit. According to this article: As long as the interest rate charged on loans doesn't decline faster than the interest rate received on deposit accounts, banks can continue to operate normally or even reduce their bad loan exposure by offering lower lending rates to already-proven borrowers. So banks may be able to acquire the same net interest margin with lower risk. However the article also mentions new research from a federal agency: Their findings show that net interest margins (NIMs) get worse during low-rate environments, defined as any time when a country's three-month sovereign bond yield is less than 1.25%. So in theory banks should remain profitable when interest rates are low, but this may not actually be the case.",
"title": ""
},
{
"docid": "0f5af17b5140e42ea036fa485a4e5a7a",
"text": "I've read this claim many times in the news: banks are making less profit from the lending business when interest rates are historically low. The issue with most loans is they can be satisfied at any time. When you have falling interest rates it means most of the banks loans are refinanced from nice high rates to current market low interest rates which can significantly reduce the expected return on past loans. The bank gets the money back when it wants it the least because it can only re-lend the money at the current market (lower) interest rates. When interest rates are increasing refinance and early repayment activity reduces significantly. It's important to look at the loan from the point of view of the bank, a bank must first issue out the entire principal amount. On a 60 month loan the lender has not received payments sufficient to satisfy the principal until around 50th or 55th month depending on the interest rate. If the bank receives payment of the outstanding amount on month 30 the expected return on that loan is reduced significantly. Consider a $10,000, 60 month loan at 5% apr. The bank is expected to receive $11,322 in total for interest income of $1,322. If the loan is repaid on month 30, the total interest is about $972. That's a 26% reduction of expected interest income, and the money received can only be re-lent for yet a lower interest rate. Add to this the tricky accounting of holding a loan, which is really a discounted bond, which is an asset, on the books and profitability of lending while interest rates are falling gets really funky. And this doesn't even examine default risk/cost.",
"title": ""
},
{
"docid": "18a79eb08dc3d53a6c2c3ed6f6d25b4b",
"text": "\"Banks make less profit when \"\"long\"\" rates are low compared to \"\"short\"\" rates. Banks lend for long term purposes like five year business loans or 30 year mortgages. They get their funds from (mostly) \"\"short term\"\" deposits, which can be emptied in days. Banks make money on the difference between 5 and 30 year rates, and short term rates. It is the difference, and not the absolute level of rates, that determines their profitability. A bank that pays 1% on CDs, and lends at 3% will make money. During the 1970s, short rates kept rising,and banks were stuck with 30 year loans at 7% from the early part of the decade, when short rates rose to double digits around 1980, and they lost money.\"",
"title": ""
}
] |
[
{
"docid": "1279c20458071181639872766799d542",
"text": "What you say about monetary velocity is true, but I don't think its the whole story. Banks also create money by lending out their deposits: if I put $1000 in my account, and the bank lends out $500 of it, I still have my $1000 on deposit but someone else is also spending an extra $500. If the banks are lending less then this effect is reduced and the volume of money reduces as well as its velocity.",
"title": ""
},
{
"docid": "896208cf931b4d42a546ce95fc9c95d3",
"text": "ChelseaFC rocked number 2, so before I try to answer number 1, I'll just mention that academics generally ignored negative *real* interest rates, and have always admitted that negative *nominal* rates were perfectly possible. There's nothing in his explanation that I think is controversial at this point though. As for number 1, a drop in a company's share price affects the company's ability to raise cash in the present and future. In a closely related issue, that drop can affect the company's ability to compensate its employees through options and restricted stock grants. In the long run (and I suspect you already know this), and drop in the share price affects the shareholders' wealth, and can lead them to demand that changes be made to be firm's operations (usually, changes made to who's running the firm). If a firm doesn't need more financing, and it doesn't pay any employees with stock or derivatives on its stock, then changes to its stock price won't affect the firm's operations in the slightest. Naturally, this assuming that the change in stock prices isn't indicative of changes to the economy, but that's a causal relationship in the other direction (the stock price reflects changes in operations, not the other way around).",
"title": ""
},
{
"docid": "8d9a776d08c206dacd7cec3133072133",
"text": "\"With (1), it's rather confusing as to where \"\"interest\"\" refers to what you're paying and where it refers to what you're being paid, and it's confusing what you expect the numbers to work out to be. If you have to pay normal interest on top of sharing the interest you receive, then you're losing money. If the lending bank is receiving less interest than the going market rate, then they're losing money. If the bank you've deposited the money with is paying more than the going market rate, they're losing money. I don't see how you imagine a scenario where someone isn't losing money. For (2) and (3), you're buying stocks on margin, which certainly is something that happens, but you'll have to get an account that is specifically for margin trading. It's a specific type of credit with specific rules, and you if you want to engage in this sort of trading, you should go through established channels rather than trying to convert a regular loan into margin trading. If you get a personal loan that isn't specifically for margin trading, and buy stocks with the money, and the stocks tank, you can be in serious trouble. (If you do it through margin trading, it's still very risky, but not nearly as risky as trying to game the system. In some cases, doing this makes you not only civilly but criminally liable.) The lending bank absolutely can lose if your stocks tank, since then there will be nothing backing up the loan.\"",
"title": ""
},
{
"docid": "1cb916d0e43a50f25c6741433bb8358f",
"text": "\"Can it be so that these low-interest rates cause investors to take greater risk to get a decent return? With interest rates being as low as they are, there is little to no risk in banking; especially after Dodd-Frank. \"\"Risk\"\" is just a fancy word for \"\"Will I make money in the near/ long future.\"\" No one knows what the actual risk is (unless you can see into the future.) But there are ways to mitigate it. So, arguably, the best way to make money is the stock market, not in banking. There is a great misallocation of resources which at some point will show itself and cause tremendous losses, even maybe cause a new financial crisis? A financial crisis is backed on a believed-to-be strong investment that goes belly-up. \"\"Tremendous Losses\"\" is a rather grand term with no merit. Banks are not purposely keeping interest rates low to cause a financial crisis. As the central banks have kept interest rates extremely low for a decade, even negative, this affects how much we save and borrow. The biggest point here is to know one thing: bonds. Bonds affect all things from municipalities, construction, to pensions. If interest rates increased currently, the current rate of bonds would drop vastly and actually cause a financial crisis (in the U.S.) due to millions of older persons relying on bonds as sources of income.\"",
"title": ""
},
{
"docid": "bd585fa26eeb5e188fb1aad4503d3bda",
"text": "Since 1971, mortgage interest rates have never been more than .25% below current rates (3.6%). Even restricting just to the last four years, rates have been as much as .89% higher. Overall, we're much closer to the record low interest rate than any type of high. We're currently at a three-year low. Yes, we should expect interest rates to go up. Eventually. Maybe when that happens, bonds will fall. It hasn't happened yet though. In fact, there remain significant worries that the Fed has been overly aggressive in raising rates (as it was around 2008). The Brexit side effects seem to be leaning towards an easing in monetary policy rather than a tightening.",
"title": ""
},
{
"docid": "390afd4dabff9fdbde3d42a41d0007ca",
"text": "What the comments above say is true, but one more thing is there. FD rates are directly proportional to loan rates. However, banks make money because loan rates will always be higher than FD rates.",
"title": ""
},
{
"docid": "a85d503f11eeb1038839cd5d77b2a89a",
"text": "What is your investment goal? Many investors buy for the long haul, not short-term gain. If you're looking for long-term gain then daily fluctuations should be of no concern to you. If you want to day-trade and time the market (buy low and sell high with a short holding period) then yes less volatile stock can be less profitable, but they also carry less risk. In that case, though, transaction fees have more of an impact, and you usually have to trade in larger quantities to reduce the impact of transaction fees.",
"title": ""
},
{
"docid": "90e6f21f589db948c8ece7bcab290e55",
"text": "\"(Real) interest rates are so low because governments want people to use their money to improve the economy by spending or investing rather than saving. Their idea is that by consuming or investing you will help to create jobs that will employ people who will spend or invest their pay, and so on. If you want to keep this money for the future you don't want to spend it and interest rates make saving unrewarding therefore you ought to invest. That was the why, now the how. Inflation protected securities, mentioned in another answer, are the least risk way to do this. These are government guaranteed and very unlikely to default. On the other hand deflation will cause bigger problems for you and the returns will be pitiful compared with historical interest rates. So what else can be done? Investing in companies is one way of improving returns but risk starts to increase so you need to decide what risk profile is right for you. Investing in companies does not mean having to put money into the stock market either directly or indirectly (through funds) although index tracker funds have good returns and low risk. The corporate bond market is lower risk for a lesser reward than the stock market but with better returns than current interest rates. Investment grade bonds are very low risk, especially in the current economic climate and there are exchange traded funds (ETFs) to diversify more risk away. Since you don't mention willingness to take risk or the kind of amounts that you have to save I've tried to give some low risk options beyond \"\"buy something inflation linked\"\" but you need to take care to understand the risks of any product you buy or use, be they a bank account, TIPS, bond investments or whatever. Avoid anything that you don't fully understand.\"",
"title": ""
},
{
"docid": "9d25f7b5b2a6e7e660a965a644280c9c",
"text": "\"QUICK ANSWER When it comes to fixed income assets, whether rental real estate or government bonds, it's unusual for highly-leveraged assets to yield less than the same asset unleveraged or lowly-leveraged. This is especially so in countries where interest costs are tax deductible. If we exclude capital losses (i.e. the property sells in future at a price less than it was purchased) or net rental income that doesn't keep up with maintenance, regulatory, taxation, inflation and / or other costs, there is one primary scenario where higher leverage results in lower yields compared to lower leverage, even if rental income keeps up with non-funding costs. This occurs when variable rate financing is used and rates substantially increase. EXPLANATION Borrowers and lenders in different countries have different mortgage rate customs. Some are more likely to have long-term fixed rates; some prefer variable rates; and others are a hybrid, i.e. fixed for a few years and then become variable. If variable rates are used for a mortgage and the reference rates increase substantially, as they did in the US during the 1970s, the borrower can easily become \"\"upside-down,\"\" i.e. owe more on the mortgage than the property is then worth, and have mortgage service costs that exceed the net rental income. Some of those costs aren't easy to pass along to renters, even when there are periodic lease renewals or base rent increases referencing inflation rates. Central banks set policies for what would be the lowest short-term rates in a country that has such a bank. Private sector rates are established broadly by supply and demand for credit and can thus diverge markedly from central bank rates. Over time, the higher finance-carrying-cost-to-net-rental-income ratio should abate as (1) rental market prices change to reflect the costs and (2) the landlord can reinvest his net rental income at a higher rate. In the short-term though, this can result in the landlord having to \"\"eat\"\" the costs making his yield on his leveraged fixed income asset less than what he would have without leverage, even if the property was later sold at same price regardless of financing method. ========== Interestingly, and on the flip side, this is one of the quirks in finance where an accounting liability can become, at least in part, an economic asset. If a landlord borrows at a high loan-to-value ratio for a fixed interest rate for the life of the mortgage and rates, variable and fixed, were to increase substantially, the difference between his original rate and the present rates accrues to him. If he's able to sell the property with the loan attached (which is not uncommon for commercial, industrial and sometimes municipal real estate), the buyer will be assuming a liability with a lower carrying cost than his present alternatives and will hence pay a higher price for the property than if it were unleveraged. With long-term rates in many economically advanced countries at historic lows, if a borrower today were to take a long-term fixed rate loan and rates shortly after increased substantially, he may have an instant profit in this scenario even if his property hasn't increased in value.\"",
"title": ""
},
{
"docid": "9fb5a92addcdf90cef1c1a0b27106004",
"text": "\"Good news, but not surprising. The banks have largely done well over the last handful of years in terms of having sufficient capital to be able to withstand the Fed's downside models. The issues largely arise in regards to current dividend and share buy-back plans which the models assume are constant despite them being entirely discretionary. As a result it isn't uncommon for banks to have \"\"failed\"\" in the past which simply required a scaling down of dividends to solve.\"",
"title": ""
},
{
"docid": "1b79b7b99ed5009f4f2901d4a3c970d8",
"text": "I'm not too familiar with the Bank of England's objectives, but it seems similar to the FED's QE program. The interest rate the BOE sets, similar to the FED rate, affects mainly the short term (the left side) of the [interest rate curve](http://www.bankofengland.co.uk/statistics/pages/yieldcurve/default.aspx). However, in order to bring down intermediate and long term rates, central banks will buy intermediate and long dated government and corporate bonds. The government's added demand will drive those bond prices up, which will drive yields down. But like I said, I'm not too familiar with the BOE's bond purchasing program, so I could be way off base here.",
"title": ""
},
{
"docid": "f4e568fc53ff5d53ffd4f2074cb925a0",
"text": "It depends on your bank's terms (which may in turn be influenced by laws and regulations), but most banks calculate interest on a per-day basis, so if you leave the money in the account for more than a day, it will generate interest. However, it will most likely be so little that you could make more money doing any kind of paid work in the time it took you to write this question...",
"title": ""
},
{
"docid": "abe92cdc5cbfbffbfa49e82267ecb5ca",
"text": "Generally a credit union will tend to have lower rates, since they are owned by the members, and not having to make a profit for some rich bankers or a bunch of shareholders. OTOH their funds are often more limited than a bank, and they may be pickier about who they loan to. still that's just 'generally', it always pays to shop around",
"title": ""
},
{
"docid": "1cf9c7613a8b1d0fd44de8be4f8b61b0",
"text": "Keep in mind there are a couple of points to ponder here: Rates are really low. With rates being so low, unless there is deflation, it is pretty easy to see even moderate inflation of 1-2% being enough to eat the yield completely which would be why the returns are negative. Inflation is still relatively contained. With inflation low, there is no reason for the central banks to raise rates which would give new bonds a better rate. Thus, this changes in CPI are still in the range where central banks want to be stimulative with their policy which means rates are low which if lower than inflation rates would give a negative real return which would be seen as a way to trigger more spending since putting the money into treasury debt will lose money to inflation in terms of purchasing power. A good question to ponder is has this happened before in the history of the world and what could we learn from that point in time. The idea for investors would be to find alternative holdings for their cash and bonds if they want to beat inflation though there are some inflation-indexed bonds that aren't likely appearing in the chart that could also be something to add to the picture here.",
"title": ""
},
{
"docid": "3b2dea4f557792057a43a62a5cc9c0ce",
"text": "I think it's only a choice of terminology. Typically with a money market account has check-writing privileges whereas a savings account does not. In terms of rates, this blog has a good list of high interest yield savings accounts. http://www.hustlermoneyblog.com/best-bank-rates/ Disclosure: I am not affiliated with this blog. I just think it is a good resource to compare the rates across different banks.",
"title": ""
}
] |
fiqa
|
f10bef35cdbb45464ab3d484a958f8de
|
Why would a company care about the price of its own shares in the stock market?
|
[
{
"docid": "31440fe1300072d02dfd346fb49498a3",
"text": "Stock price is an indicator about the health of the company. Increased profits (for example) will drive the stock price up; excessive debt (for example) will drive it down. The stock price has a profound effect on the company overall: for example, a declining share price will make it hard to secure credit, attract further investors, build partnerships, etc. Also, employees are often holding options or in a stock purchase plan, so a declining share price can severely dampen morale. In an extreme case, if share prices plummet too far, the company can be pressured to reverse-split the shares, and (eventually) take the company private. This recently happened to Playboy.",
"title": ""
},
{
"docid": "cbdedbf2a7a73dfb9dae5366bc38387f",
"text": "The other answer has some good points, to which I'll add this: I believe you're only considering a company's Initial Public Offering (IPO), when shares are first offered to the public. An IPO is the way most companies get a public listing on the stock market. However, companies often go to market again and again to issue/sell more shares, after their IPO. These secondary offerings don't make as many headlines as an IPO, but they are typical-enough occurrences in markets. When a company goes back to the market to raise additional funds (perhaps to fund expansion), the value of the company's existing shares that are being traded is a good indicator of what they may expect to get for a secondary offering of shares. A company about to raise money desires a higher share price, because that will permit them to issue less shares for the amount of money they need. If the share price drops, they would need to issue more shares for the same amount of money – and dilute existing owners' share of the overall equity further. Also, consider corporate acquisitions: When one company wants to buy another, instead of the transaction being entirely in cash (maybe they don't have that much in the bank!), there's often an equity component, which involves swapping shares of the company being acquired for new shares in the acquiring company or merged company. In that case, the values of the shares in the public marketplace also matter, to provide relative valuations for the companies, etc.",
"title": ""
},
{
"docid": "b8da6c7da960df18a9cd9ad196ab306b",
"text": "Shareholders get to vote for the board, the board appoints the CEO. This makes the CEO care, which in turn makes everybody else working in the company care. Also, if the company wants to borrow money a good share price, as sign of a healthy company, gives them more favorable conditions from lenders. And some more points others already made.",
"title": ""
},
{
"docid": "c067f60aa6afa4f6133377c0af24b9eb",
"text": "Fiduciary They are obligated by the rules of the exchanges they are listed with. Furthermore, there is a strong chance that people running the company also have stock, so it personally benefits them to create higher prices. Finally, maybe they don't care about the prices directly, but by being a good company with a good product or service, they are desirable and that is expressed as a higher stock price. Not every action is because it will raise the stock price, but because it is good for business which happens to make the stock more valuable.",
"title": ""
},
{
"docid": "c2f509bb12d11e490a71f1a66f327b36",
"text": "Why do companies exist? Well, the corporate charter describes why the company exists. Usually the purpose is to enrich the shareholders. The owners of a company want to make money, in other words. There are a number of ways that a shareholder can make money off a stock: As such, maintaining the stock price and dividend payouts are generally the number one concern for any company in the long term. Most of the company's business is going to be directed towards making the company more valuable for a future buyout, or more valuable in terms of what it can pay its shareholders directly. Note that the company doesn't always need to be worried about the specifics of the day-to-day moves of the stock. If it keeps the finances in line - solid profits, margins, earnings growth and the like - and can credibly tell people that it's generally a valuable business, it can usually shrug off any medium-term blips as market craziness. Some companies are more explicitly long-term about things than others (e.g. Berkshire Hathaway basically tells people that it doesn't care all that much about what happens in the short term). Of course, companies are abstractions, and they're run by people. To make the people running the company worry about the stock price, you give them stock. Or stock options, or something like that. A major executive at a big company is likely to have a significant amount of stock. If the company does well, he does well; if it does poorly, he does poorly. Despite a few limitations, this is really a powerful incentive. If a company is losing a lot of money, or if its profits are falling so it's just losing a lot of its value as a business, the owners (stockholders) tend to get upset, and may vote in new management, or launch some sort of shareholder lawsuit. And, as previously noted, to raise funds, a company can also issue new shares to the market as a secondary offering as well (and they can issue fewer shares if the price is high - meaning that whatever the company is worth afterward, the existing owners own proportionally more of it).",
"title": ""
},
{
"docid": "42bb3a0c76e833a229be7a2fa993e605",
"text": "The fact you are asking this question, the number of up votes, uncovers the real cause of the banking crisis. Answers which mention that shareholders will fire a public company board are on the bottom. It is obvious that a company owners are interested in company value. And should have direct and easy impact on a directors board if management doesn't increase shareholders wealth. With large number of passive shareholders and current stock market system that impact is very limited. Hence your question. So bank directors, upper management aren't that interested in company value. They are mostly interested in theirs bonuses, their wealth increase, not shareholders. And that's the real problem of capitalism. Public companies slowly drift to function like companies in former socialistic countries. These is no owner, everything is owned by a nation.",
"title": ""
},
{
"docid": "fca9765a78f1d005b9358d9b54f078a0",
"text": "The most significant reason is that if the board of directors of a company neglects the stock value, the stockholders will vote them out of their jobs.",
"title": ""
},
{
"docid": "8be15acb6b240661d6447a5c078a6934",
"text": "The main reason is that a public company is owned by its share holders, and share holders would care about the price of the stock they are owning, therefore the company would also care, because if the price go down too much, share holders become angry and may vote to oust the company's management.",
"title": ""
},
{
"docid": "74c58cb199f873d475e24b80e1003eb6",
"text": "Overpriced shares: Cheaper to raise new capital through secondary share offerings or debt using shares as a security. Fends off hostile take overs, since the company is too dear. When a company is taken over it needs only one set of management. Top management of the company that is taken over loses their jobs - no one wants to lose their job. Shareholders love to see share price grow - sale brings them profit, secures jobs for company management. Shares are used as a currency during acquisitions, if company shares are overpriced that means they can buy another company on the cheap - paying with the overpriced shares. Undervalued shares: More expensive to raise additional capital through secondary share offerings - for the same amount of capital the management has to offer a bigger chunk of the company; have to offer bigger chunk of a company as a security as well. Makes company vulnerable to hostile take overs, company is undervalues - makes it an attractive bargain. Once the company is taken over top management will almost certainly lose jobs. Falling price makes shareholders unhappy - they will vote management out. Makes difficult to acquire other companies.",
"title": ""
},
{
"docid": "bbd20f7c83f683c9d6750e463c9f06b3",
"text": "Aside of the other (mostly valid) answers, share price is the most common method of valuating the company. Here is a bogus example that will help you understand the general point: Now, suppose that Company A wants to borrow $20 Million from a bank... Not a chance. Company B? Not a problem. Same situation when trying to raise new funds for the market or when trying to sell the company or to acquire another",
"title": ""
},
{
"docid": "d03319e7e10d7777ab0af425341562df",
"text": "Originally, stocks were ownership in a company just like any other business- you expected to make a profit from your investment, which is what we call dividends to stock holders. Since these dividends had real value, the stock price was based on what this return rate was, factoring in what it might be expected to be in the future, etc. Nowdays many companies never issue any dividends, so you have to consider the full value of the company and what benefit could be gained by another company if it were to acquire it. the market will likely adjust the share price to factor in what the value of the company might be to an acquirer. But otherwise, some companies today trading at an astronimical price, and which nevers pays a dividend- chalk it up to market stupidity. In this investor'd mind, there is no logical reason for these prices, except based on the idea that someone else might pay you more for it later... for what reason? I can't figure it out. Take it back to it's roots and imagine pitching a new business idea to you uncle to invest in- it will make almost nothing compared to it's share price, and even what it does make it won't pay anything to him for his investment. Why wouldn't he just laugh at you?",
"title": ""
},
{
"docid": "6bb718a4b47000594f78c65fa8a33aee",
"text": "Because it's a good indicator of how much their asset worth. In oversimplified example, wouldn't you care how much your house, car, laptop worth? Over the course of your life you might need to buy a bigger house, sell your car etc. to cope with your financial goal / situation. It's similar in company's case but with much more complexity.",
"title": ""
},
{
"docid": "980204c5b6fc20d68d519e9373e89ba3",
"text": "Investors are typically a part of the board of directors of the company. Because of their ownership in the company, they have a vested interest in its stock price. The same is true for management also in cases where they hold a certain percentage of equity in the company. Their incentives also get aligned to the stock price.",
"title": ""
}
] |
[
{
"docid": "b162c03324b8020cb7acdc8e7c8b3d0f",
"text": "\"Stock returns cannot be evaluated on its own. You need to take into account inflation and the return of other investment vehicles. Over the long run, you want to earn more than your peers (ie inflation), or lose less than them. Stock lets you buy into the profits of a company managed by others. So the fundamental question is \"\"do those company managers make better decision than average person?\"\" Of course there are times when they make awful decisions (eg just before dotcom bubble), and sometimes the best decision is to close the business. But overall those people are much better educated, have higher IQ, more resourceful, etc, and so over long time and across all the companies, this is correct and hence the stock market premium.\"",
"title": ""
},
{
"docid": "49f779c5fabf42933fb87c49daf79771",
"text": "You would think that share prices is just a reflection of how well the company is doing but that is not always the case. Sometimes it reflects the investor confidence in the company more than the mere performance. So for instance if some oil company causes some natural disaster by letting one of there oil tankers crash into a coral reef then investor confidence my take a big hit and share prices my fall even if the bottom line of the company was not all that effected.",
"title": ""
},
{
"docid": "39d9a34a9f738312aea33419fdb81e9e",
"text": "The folks who hold stock are the legal owners of the company. If a majority of stock holders become unhappy with the management of a company they can fire the executives and put in new management, or they can direct the company to close its doors and sell off its assets. As a crude approximation, the stock holders are happier when the stock price goes up and unhappier when it goes down. Therefore, executives are highly motivated to drive the stock price up. A frequent criticism of corporate governence is that management can be so motivated to drive the stock price up, that they will take actions that drive the stock price up in the current year, even if undercuts the company in the long term.",
"title": ""
},
{
"docid": "d68fc2a7722d857c5ffbe80888669754",
"text": "\"There are a LOT of reasons why institutional investors would own a company's stock (especially a lot of it). Some can be: The company is in one of the indices, especially big ones. Many asset management companies have funds that are either passive (track index) or more-or-less closely adhere to a benchmark, with the benchmark frequently being (based on/exactly) an index. As such, a stock that's part of an index would be heavily owned by institutional investors. Conclusion: Nothing definitive. Being included in an equity index is usually dependent on the market cap; NOT on intrinsic quality of the company, its fundamentals or stock returns. The company is considered a good prospect (growth or value), in a sector that is popular with institutional investors. There's a certain amount of groupthink in investing. To completely butcher a known IT saying, you don't get fired for investing in AAPL :) While truly outstanding and successful investors seek NON-popular assets (which would be undervalued), the bulk is likely to go with \"\"best practices\"\"... and the general rules for valuation and analysis everyone uses are reasonably similar. As such, if one company invests in a stock, it's likely a competitor will follow similar reasoning to invest in it. Conclusion: Nothing definitive. You don't know if the price at which those institutional companies bought the stock is way lower than now. You don't know if the stock is held for its returns potential, or as part of an index, or some fancy strategy you as individual investor can't follow. The company's technicals lead the algorithms to prefer it. And they feed off of each other. Somewhat similar in spirit to #2, except this time, it's algorithmic trading making decisions based on technicals instead of portfolio managers based on funamentals. Obviously, same conclusion applies, even more so. The company sold a large part of the stock directly to institutional investor as part of an offering. Sometimes, as part of IPO (ala PNC and BLK), sometimes additional capital raising (ala Buffett and BAC) Conclusion: Nothing definitive. That investor holds on to the investment, sometimes for reason not only directly related to stock performance (e.g. control of the company, or synergies). Also, does the fact that Inst. Own % is high mean that the company is a good investment and/or less risky? Not necessarily. In 2008, Bear Stearns Inst Own. % was 77%\"",
"title": ""
},
{
"docid": "5bdf7691029954ac590ae6f26332d9b1",
"text": "Well their money is in the company so it does matter to them. If I give a company $20k and see them blow through cash, throwing money at anything that seems like a business model, I'm going to get very concerned. You have the same issues at a private company, it's just that your shareholders are more heavily invested.",
"title": ""
},
{
"docid": "0620cbca97d934750faaf78e76922855",
"text": "Aside from the market implications Victor and JB King mention, another possible reason is the dividends they pay. Usually, the dividends a company pays are dependent on the profit the company made. if a company makes less profit, the dividends turn out smaller. This might incite unrest among the shareholders, because this means that they get paid less dividends, which makes that share more likely to be sold, and thus for the price to fall.",
"title": ""
},
{
"docid": "032c9a31fdd711d9aaacc419dfe99b75",
"text": "\"Yes, the value of a stock is completely, 100% determined by what people are willing to pay for it in conjunction with what people who have it are willing to sell it for. If something really bad happened to a company, like their only factory burned to the ground, and the traders didn't care, then I guess, in that scenario, the value of the stock would not change. But you can spin all sorts of hypotheticals of that sort. If dogs could talk, would German Shepherds speak German? Etc. Any answer is pretty meaningless because the premise is wildly unlikely. As CQM notes, \"\"traders\"\" in this context means everyone who buys or sells stock. If you buy stock, that includes you. They're not some mystical cabal somewhere. If you see a stock listed at, whatever, $50, and you are not willing to pay more than $40 for it, then you refuse to buy, and so you tend to force the price down. If you're not a billionaire, then your impact on the market is tiny, but the market is made up of millions of people each with tiny influence. Note that all this is true not just of the stock market, but of every product on the market. A product is worth whatever the owner is willing to sell it for and people are willing to pay. This is what determines the price of everything from houses to toasters. It's a little theory I've invented that I like to call, \"\"the law of supply and demand\"\". :-)\"",
"title": ""
},
{
"docid": "4921512769ebe7b33f245d03c02caa32",
"text": "from what i understand, which is not much, some companies use some of their own company shares as securitisation for loans. If the share price decreases, the security in the loan decreases, which means the company would need to find new capital. It can create a vicious cycle if the fall in share price is the result of operational concerns.",
"title": ""
},
{
"docid": "5f818a172800ab3e8c4068baf50271cc",
"text": "The short answer to your question is yes. Company performance affects stock price only through investors' views. But note that selling for higher and lower prices when the company is doing well or poorly is not an arbitrary choice. A stock is a claim on the future cash flows of the firm, which ultimately come from its future profits. If the company is doing well, investors will likely expect that there will large cash flows (dividends) in the future and be willing to pay more to hold it (or require more to sell it). The price of a stock is equal what people think the future dividends are worth. If market participants started behaving irrationally, like not reacting to changes in the expected future cash flows, then arbitrageurs would make a ton of money trading against them until the situation was rectified.",
"title": ""
},
{
"docid": "348c16d28dd5f13cc22835ed310e419a",
"text": "\"Why only long term investments? What do they care if I buy and sell shares in a company in the same year? Simple, your actually investing when you hold it for a long term. If you hold a stock for a week or a month there is very little that can happen to change the price, in a perfect market the value of a company should stay the same from yesterday to today so long as there is no news(a perfect market cannot exist). When you hold a stock for a long term you really are investing in the company and saying \"\"this company will grow\"\". Short term investing is mostly speculation and speculation causes securities to be incorrectly valued. So when a retail investor puts money into something like Facebook for example they can easily be burned by speculation whether its to the upside or downside. If the goal is to get me to invest my money, then why not give apply capital gains tax to my savings account at my local bank? Or a CD account? I believe your gains on these accounts are taxed... Not sure at what rate. If the goal is to help the overall health of business, how does it do that? During an IPO, the business certainly raises money, but after that I'm just buying and selling shares with other private shareholders. Why does the government give me an incentive to do this (and then hold onto it for at least a year)? There are many reasons why a company cares about its market price: A companies market cap is calculated by price * shares outstanding. A market cap is basically what the market is saying your company is worth. A company can offer more shares or sell shares they currently hold in order to raise even more capital. A company can offer shares instead of cash when buying out another company. It can pay for many things with shares. Many executives and top level employees are payed with stock options, so they defiantly want to see there price higher. these are some basic reasons but there are more and they can be more complex.\"",
"title": ""
},
{
"docid": "c6cb4a956263e8a41ee3791e633b372f",
"text": "Would you consider the owner of a company to be supporting the company? If you buy stock in the company you own a small part of that company. Your purchase also increases the share price, and thus the value of the company. Increased value allows the company to borrow more money to say expand operations. The affect that most individuals might have on share price is very very small. That doesn't mean it isn't the right thing for you to do if it is something you believe in. After all if enough people followed those same convictions it could have an impact on the company.",
"title": ""
},
{
"docid": "c9b670ef1275f6f9dab150477fbb3120",
"text": "Why is the stock trading at only $5 per share? The share price is the perceived value of the company by people buying and selling the stock. Not the actual value of the company and all its assets. Generally if the company is not doing well, there is a perceived risk that it will burn out the money fast. There is a difference between its signed conditional sale and will get money and has got money. So in short, it's trading at $5 a share because the market doesn't feel like it's worth $12 per share. Quite a few believe there could be issues faced; i.e. it may not make the $12, or there will be additional obligations, i.e. employees may demand more layoff compensation, etc. or the distribution may take few years due to regulatory and legal hurdles. The only problem is the stock exchange states if the company has no core business, the stock will be suspended soon (hopefully they can release the $12 per share first). What will happen if I hold shares in the company, the stock gets suspended, and its sitting on $12 per share? Can it still distribute it out? Every country and stock markets have laid out procedures for de-listing a company and closing a company. The company can give $10 as say dividends and remaining later; or as part of the closure process, the company will distribute the balance among shareholders. This would be a long drawn process.",
"title": ""
},
{
"docid": "2ff23bc81836dd0f652e075dd748b3ab",
"text": "\"For the same reason that people bet on different teams. Some think the Tigers will win, others thing the Yankees will win. They wager $5 on it. One of them wins, the other loses. In a short, one person bets that the stock goes down, the other bets that the stock goes up (or hold). You're basically saying \"\"I think this stock is going to hold it's value or go up. If I thought it would go down, like you do, I would sell it myself right now. Instead, I'll let you have it for a while because when I get it back I think I'll come out on top.\"\"\"",
"title": ""
},
{
"docid": "9cd4ebc007e5e4e0e0ffeb192ed4576b",
"text": "Companies are expected to make a profit, otherwise there is no point to their existence and no motivation for investment. That profit comes back to shareholders as growth and/or dividend. If a company is doing well and has a healthy profit to turn back into investment to facilitate increased future earnings, it increases shareholder equity and share price. If a company is doing well and has a healthy profit to pay out in dividend, it makes the shares more attractive to investors which pushes the price up. Either way, shares go up. Share prices drop when companies lose money, or there are market disturbances affecting all companies (recessions), or when individual companies fail. Averaged over all companies over the long term (decades), stocks can be reasonably expected to go up.",
"title": ""
},
{
"docid": "871d6e76ecc2a5e80485fd4dc9f7ee9e",
"text": "Two reasons are typically cited (I've heard these from Dave Ramsey): So I wouldn't refinance to a 15-year loan just for item 2, but would definitely look at it for the better interest rates.",
"title": ""
}
] |
fiqa
|
08533ecbc973391914e92a6aed9eeedb
|
How can Schwab afford to refund all my ATM fees?
|
[
{
"docid": "bc875b9c0d3f029ba3a99bb6c6a2d0be",
"text": "I am using my debit card regularly: in ATM's with a pin, in stores with my signature, and online. But later you say But from what I recall from starting my own business (a LONG time ago), for debit cards there's only a per-transaction fee of like $0.25, not a percentage cut. Only pin transactions have just a per-transaction fee paid by you to the merchant (and you are reimbursed by Schwab). If you use your card with just a signature or online without a pin, then it is a credit transaction from the merchant's perspective. The merchant pays a fee and Schwab gets its cut of that. So for two of the transaction types that you describe, the merchant pays Schwab (indirectly) out of your payment. Only when you enter your pin does it process as a debit transaction where Schwab pays the merchant. Because check cards withdraw the money from your account immediately, you don't even get the twenty to fifty day grace period. So those merchant fees are pure profit for Schwab, offsetting the loss from the ATM fees. You claim $4-5k in fees at $.25 each. That's sixteen to twenty thousand transactions. Assuming that several is four to five years, that's more than ten transactions a day. That seems like a lot. I can see three for meals, one for miscellaneous, and maybe some shopping. But if I go shopping one day, I don't normally go again for a while. I have trouble seeing a consistent average of five or more transactions a day. Even if we use just the higher ATM fees (e.g. $2), that's still more than a transaction a day. That's an extreme level of usage, particularly for someone who also makes frequent purchases via card. I haven't done any other business with them. I find this confusing. How does money get into your account? At some point, you must have deposited money into the account. You can't debit from an account without a positive balance. So you must have done or be doing some kind of business with them. If nothing else, they can invest the balance that you deposit. Note that they make a profit off such investments. They share some of that profit with you in the form of interest, but not that much really. Of course, Schwab may still be losing money on your transactions. We can't really tell without more information on how much of each transaction type you do and how much of a balance you maintain. Perhaps they are hoping that you will do other, more profitable, activities in the future. I doubt there are that many Schwab customers like you describe yourself. As best I've been able to see, they advertise their banking services just to investment customers. So it's unlikely that many customers who don't use their investment services use their banking services just for ATM reimbursements.",
"title": ""
},
{
"docid": "861e63e221a3f35d356ca7246fb4745d",
"text": "\"Schwab is a highly diversified operation and has a multitude of revenue streams. Schwab obviously thinks it can make more off you than you will cost in ATM fees and it's probably safe to assume most Schwab clients use more services than the ATM card. It's not worthwhile to discuss the accounting of ATM/Debit/Credit card fee norms because for a diversified operation it's about the total relationship, not whether each customer engagement is specifically profitable. People who get Schwab accounts soley for the ATM fee refunds are in the minority. In 2016 10-k filing Schwab posted $1.8B in net earnings, 10 million client accounts with a total of $2.78T in client assets. A couple grand in ATM fees over several years is a rounding error. \"\"ATM\"\" doesn't even appear in the 2016 10-K.\"",
"title": ""
},
{
"docid": "5816b00c06bccea78a1c9ade6674b940",
"text": "\"Like a lot of businesses, they win on the averages, which means lucrative customers subsidize the money-losers. This is par for the course. It's the health club model. The people who show up everyday are subsidized by the people who never show but are too guilty to cancel. When I sent 2 DVDs a day to Netflix, they lost their shirt on me, and made it up on the customers who don't. In those \"\"free to play\"\" MMOs, actually 95-99% of the players never pay and are carried by the 1-5% who spend significantly. In business thinking, the overall marketing cost of acquiring a new customer is pretty big - $50 to $500. On the other side of the credit card swiper, they pay $600 bounty for new merchant customers - there are salesmen who live on converting 2-3 merchants a month. That's because as a rule, customers tend to lock-in. That's why dot-coms lose millions for years giving you a free service. Eventually they figure out a revenue model, and you stay with it despite the new ads, because changing is inconvenient. When you want to do a banking transaction, they must provide the means to do that. Normal banks have the staggering cost of a huge network of branch offices where you can walk in and hand a check to a teller. The whole point of an ATM is to reduce the cost of that. Chase has 3 staffed locations in my zipcode and 6 ATMs. Schwab has 3 locations in my greater metro, which contains over 400 zipcodes. If you're in a one-horse town like French Lick, Bandera or Detroit, no Schwab for miles. So for Schwab, a $3 ATM fee isn't expensive, it's cheap - compared to the cost of serving you any other way. There may also be behind-the-scenes agreements where the bank that charged you $3 refunds some of it to Schwab after they refund you. It doesn't really cost $3 to do a foreign ATM transaction. Most debit cards have a Visa or Mastercard logo. Many places will let you run it as an ATM card with a PIN entry. However everyone who takes Visa/MC must take it as a credit card using a signature. In that case, the merchant pays 2-10% depending on several factors.** Of this, about 1.4% goes to the issuing bank. This is meant to cover the bank's risk of credit card defaults. But drawing from a bank account where they can decline if the money isn't there, that risk is low so it's mostly gravy. You may find Schwab is doing OK on that alone. Also, don't use debit cards at any but the most trusted shops -- unless you fully understand how, in fraud situations, credit cards and debit cards compare -- and are comfortable with the increased risks. ** there are literally dozens of micro-fees depending on their volume, swipe vs chip, ATM vs credit, rewards cards, fixed vs online vs mobile, etc. (Home Depot does OK, the food vendor at the Renaissance Faire gets slaughtered). This kind of horsepuckey is why small-vendor services like Square are becoming hugely popular; they flat-rate everything at around 2.7%. Yay!\"",
"title": ""
}
] |
[
{
"docid": "5ede24800b5d80033c81f06e9d0f3a38",
"text": "When you submit for reimbursement, the cash you get should be FIFO (first in, first out) and a large bill should empty out 2011 first, automatically tapping 12 for remaining amount owed. I doubt you need to do anything.",
"title": ""
},
{
"docid": "fbb67d40032f4f89b5d23f90cb3caa17",
"text": "I've had good experiences with a regional bank. All the perks of Wells but without the bullshit fees (except ATMs unfortunately but I just get cash back in the rare instance that a card / my phone won't cut it).",
"title": ""
},
{
"docid": "a6646a8fb13a286d8eec676138656def",
"text": "Since you have presumably now been living here for six months you may already have discovered that Australian banks charge a transaction fee whether the funds are deposited from overseas by check/cheque or telegraphically. I have an account with Bank of America and used to be able to draw funds from Australian bank Westpac via their ATMs without incurring a fee, because BofA and Westpac are both members of a Global ATM Alliance that did not charge fees to each others customers. But now they have initiated a new policy, and take 3% of every sum withdrawn. Not quite usury, but in the same ballpark. I'm now investigating the possibility of opening a Schwab or a Capital One account in the US, and using one of their credit cards, which, I believe, would allow withdrawals at Australian ATMs for no fee. If you find or have found a good answer to your dilemma I hope you will share it.",
"title": ""
},
{
"docid": "a13b26bab35c236d383017da79ab6110",
"text": "\"Everything I have read here sounds good except for one small detail. My bank does indeed identify ATM rebates as taxable income. They, in fact, seemed to have begun this practice several years ago but somehow forgot to send 1099's to their own customers despite sending them to the IRS. This ended up costing me nearly $2,000 in back taxes to cover 2012, 2013 and 2014. My bank sent a letter of apology and will cover any penalties and interest accrued \"\"due to their error\"\". No one from the bank ever told me that these rebates could be taxable when I signed on for this special checking account for which I pay a fee each month to continue. So what is the truth, is it taxable income or not? I have now paid for the 2012 and 2013 tax years for something I still say is not income. I am about to pay the 2014 tax bill and will have to pay another $850 or so due to this ruling by my bank. How can this be right??\"",
"title": ""
},
{
"docid": "72d91dcb2317801f81a6ce13273e1bc3",
"text": "\"I second what \"\"powercow\"\" and \"\"Osetic\"\" said. I switched away from Wells Fargo to Patelco (Pacific Telephone Company, i'm in the bay area). They are world's better. My biggest issue with WF was the overdrafts, how much they charged, and the way in which they processed incoming transactions (which they are being sued in a class action for, btw). I had my new account setup so it could never overdraft, it would just decline. In my first month with Patelco, I ordered checks. When that charge processed, it dipped my account into the negative due to it being an internal CU charge and their system not performing all the checks/balances first. They called me about 24hrs after it happened to let me know: * How sorry they were * That they would refund me the amount of the checks * That they added $10 on top of the refund to ensure I understood it was a mistake * If there was anything else they could do to make the situation right And like others here, I have shorter lines, more helpful tellers, a more inviting atmosphere, oh and free coffee. You gotta find a better CU, yo\"",
"title": ""
},
{
"docid": "66002fb9387b1f794929de8adce812a2",
"text": "\"This summer I used a loan from my 401(k) to help pay for the down payment of a new house. We planned on selling a Condo a few months later, so we only needed the loan for a short period but wanted to keep monthly payments low since we would be paying two mortgages for a few months. I also felt like the market might take a dip in the future, so I liked the idea of trying to cash out high and buy back low (spoiler alert: this didn't happen). So in July 2017 I withdrew $17,000 from my account (Technically $16,850.00 principal and $150 processing fee) at an effective 4.19% APR (4% rate and then the fee), with 240 scheduled payments of $86.00 (2 per month for 10 years). Over the lifetime of the loan the total finance charge was $3,790, but that money would be paid back into my account. I was happy with the terms, and it helped tide things over until the condo was sold a few months later. But then I decided to change jobs, and ended up having to pay back the loan ~20 weeks after it was issued (using the proceeds from the sale of the condo). During this time the market had done well, so when I paid back the funds the net difference in shares that I now owned (including shares purchased with the interest payments) was $538.25 less than today's value of the original count of shares that were sold to fund the loan. Combined with the $150 fee, the overall \"\"cost\"\" of the 20 week loan was about 4.05%. That isn't the interest rate (interest was paid back to my account balance), but the value lost due to the principal having been withdrawn. On paper, my account would be worth that much more if I hadn't withdrawn the money. Now if you extrapolate the current market return into 52 weeks, you can think of that loan having an APR \"\"cost\"\" of around 10.5% (Probably not valid for a multi year calculation, but seems accurate for a 12 month projection). Again, that is not interest paid back to the account, but instead the value lost due to the money not being in the account. Sure, the market could take a dip and I may be able to buy the shares back at a reduced cost, but that would require keeping sizable liquid assets around and trying to time the market. It also is not something you can really schedule very well, as the loan took 6 days to fund (not including another week of clarifying questions back/forth before that) and 10 day to repay (from the time I initiated the paperwork to when the check was cashed and shares repurchased). So in my experience, the true cost of the loan greatly depends on how the market does, and if you have the ability to pay back the loan it probably is worth doing so. Especially since you may be forced to do so at any time if you change jobs or your employment is terminated.\"",
"title": ""
},
{
"docid": "25865b998a68af259bbb602ce40e0cda",
"text": "I know that many HSBC ATMs at branches in the US and Canada offer this service (they actually scan and shred checks as you deposit them). Perhaps they do same in Germany... but not all ATMs offer this feature.",
"title": ""
},
{
"docid": "49c8e0800f5550f63ded1f3beb94a283",
"text": "Get a checking account with Ally Bank. They refund all ATM fees from within the US, so effectively, every ATM transaction will have no surcharge.",
"title": ""
},
{
"docid": "39ce77a9a6f73da8194f996943405e13",
"text": "\"It's very straightforward for an honest vendor to refund the charge, and the transaction only costs him a few pennies at most. If you initiate a chargeback, the merchant is immediately charged an irreversible fee of about $20 simply as an administrative fee. He'll also have to refund the charge if it's reversed. To an honest merchant who would've happily refunded you, it's unfair and hurtful. In any case, now that he's out-of-pocket on the administrative fee, his best bet is to fight the chargeback - since he's already paid for the privilege to fight. Also, a chargeback is a \"\"strike\"\" against the merchant. If his chargeback rate is higher than the norm in his industry, they may raise his fees, or ban him entirely from taking Visa/MC. For a small merchant doing a small volume, a single chargeback can have an impact on his overall chargeback rate. The \"\"threshold of proof\"\" for a chargeback varies by patterns of fraud and the merchant's ability to recover. If you bought something readily fungible to cash - like a gift card, casino chips, concert tickets etc., forget it. Likewise if you already extracted the value (last month's Netflix bill). Credit card chargeback only withdraws a payment method. Your bill is still due and payable. The merchant is within his rights to \"\"dun\"\" you for payment and send you to collections or court. Most merchants don't bother, because they know it'll be a fight, an unpleasant distraction and bad for business. But they'd be within their rights. Working with the merchant to settle the matter is a final resolution.\"",
"title": ""
},
{
"docid": "4ba84bfbdd386cc7be5016258b24fb99",
"text": "If this matters to you a lot, I agree you should leave. My primary bank account raised chequing account and transaction fees. I left. When I was closing my account the teller asked for the reason (they needed to fill out a form) and I explained it was the monthly fees. Eventually, if a bank gets enough of these, they will change. I want to get back those features for the same price it cost when I opened it They are in their rights to cancel features or raise prices. Just as you are in your rights to withdraw if they don't give you a deal. The reason why I mention this is that this approach is comical in some instances. A grocery store may raise the price of carrots. Typically you either deal with it or change stores. Prices rise occasionally. thus they will lose a lot of money from my savings From my understanding, a bank makes a large chunk of their money from fees. Very little is from the floating kitty they can have because of your savings. If you have an investment account with your bank (not recommended) or your mortgage, that would matter more. I've had friends who have left banks (and moved their mortgages) because of the bank not giving them a better rate. Does the manager have any pressure into keeping the account to the point of giving away free products to keep the costumer or they don't really care? Depends. I've probably say no. One data point is an anecdote; it is expected in a client base of thousands that a few will leave for seemingly random reasons. Only if mass amounts of clients leave or complain will the manager or company care. A note: some banks waive monthly account or service fees if you keep a minimal account balance. I have one friend who keeps X thousand in his bank account to save the account fee; he budgets a month ahead of time and savings account rates are 0% so this costs him nothing.",
"title": ""
},
{
"docid": "93cefae48690e4422b7b15bbee2d4c45",
"text": "It's actually becoming a lot more common these days because the smaller banks and CUs have to compete with the Bank of Americas of the world - they have ATMs everywhere and people really cling to that feeling of convenience. Rebating foreign ATM fees is actually more cost effective than setting up a billion ATMs in a lot of cases too, so it makes sense from a couple of perspectives.",
"title": ""
},
{
"docid": "81621535e00c6c4d967a4c57fd7ca746",
"text": "Yes, overall, it is a big inconvenience to you. This same issue applies for those that for example, receive Social Security benefits (and perhaps other government cash benefits) on a pre-paid card (rather than direct deposit to a bank account). They allow a few ways to get cash from the card: You can get cash back (no fee) when you make a retail purchase. You could use the card for relatively small items you would purchase anyway, and get $100 or more back in cash each time. Every store/chain will have it's own limits on how much cash back they will allow per transaction. And, be careful, some stores charge a fee for cash back, but it's not at all common. If even these small purchases are an issue, you can then (presumably later) return the item you purchased without returning the cash-back you received (if the store allows returns/refunds). And, since a transaction with cash back is processed as a debit (rather than a credit), usually if you later return the purchased item, you will be refunded in cash (rather than a credit back to your card/account). Also, for other cards, sometimes you can go to a branch of the bank that issued the card and make a no fee withdraw, sometimes in cash and sometimes by check. This depends on the policy of the issuing bank, and the card account. Finally, most of this assumes that you are given a pin (or the opportunity to create one) with the card, because cash-back and ATM access requires a pin. And there are some banks/cards that don't allow any of this.",
"title": ""
},
{
"docid": "8207cf44a5c260c72f91ffd0e294b3a7",
"text": "Simple Schwaab does not have actually your securities they have leased them out and have to borrow them back. all assets are linked with derivatives now. They show on the balance sheet but have to be untangled. Thats why the market drops disproportionally fast to the actual number of shares sold.",
"title": ""
},
{
"docid": "8d71273268765dcba15255bd606fe944",
"text": "I had one of those banks that reordered transactions. Deposit cash first thing in the morning means you should have money in your account, right? Nah son. First they're going to take your balance at the beginning of the day, then they'll deduct all of the transactions you made that day, in order from largest to smallest. Did one of those put you in the red (ignoring the deposit)? Time to apply an overdraft fee to that one and every single one that comes after (in order of largest purchase to smallest, mind you). Only then would they apply your deposit, but, for many, that wasn't enough to cover the overdraft fees. I eventually received money from either a class action or a CFPB thing, but not enough to cover the amount they took in fees through that scheme. Thankfully, my deposits were large enough to at least cover the fees, so I didn't have those damnable daily fees on top of it all.",
"title": ""
},
{
"docid": "e23e9b15dd562465366a939546bc4577",
"text": "\"There are two ways to handle this. The first is that the better brokers, such as Charles Schwab, will produce summaries of your gains and losses (using historical cost information), as well as your trades, on a monthly and annual basis. These summaries are \"\"ready made\"\" for the IRS. More brokers will provide these summaries come 2011. The second is that if you are a \"\"frequent trader\"\" (see IRS rulings for what constitutes one), then they'll allow you to use the net worth method of accounting. That is, you take the account balance at the end of the year, subtract the beginning balance, adjust the value up for withdrawals and down for infusions, and the summary is your gain or loss. A third way is to do all your trading in say, an IRA, which is taxed on distribution, not on stock sales.\"",
"title": ""
}
] |
fiqa
|
46bce6a99498d109180613cce3f31321
|
How much accounting knowledge is needed to read financial statements of publicly traded companies?
|
[
{
"docid": "d4000cf9ecd349abeeb5bc37ecd296aa",
"text": "\"I'm a senior majoring in accounting and management information systems. Here is a question I answered a while back about financial statements and employee retention. In the answer that I provided at the bottom it was to assess a company's ability to pay by use of ratios. Likewise, similar accounting methods need to be understood and implemented when assessing stocks(which is where I believe Mr. Buffet was going with this). As we can see the severity of the questions decreases, but if you can not answer question 3 then you should study accounting principles. So how much is enough just to get started? You will never have enough knowledge to start, period. You will have to continuously be learning, so start sooner than later. However you need neither economics or accounting knowledge if you were to learn technical analysis, many doubt the workings of this technique, but in my experience it is easier to learn and practise. A comment on @Veronica's post. Understanding economics and accounting are fundamental. Analysis, seeing trends, and copying are instinctual human traits that helped us evolve (we are very good at pattern recognition). Taking an intro economic and accounting course at a local community college is an excellent place to start when breaking the mold of pattern-thinking. You have to be critical in understanding what elements move a company's A/R in the statement of cash flows. Read. Literally, don't stop reading. Latest edition of of Kesio's accounting principles? Read it. Cover to cover. Tax policies on Section 874, 222, 534? Read it. Take a class, read a book, ask questions! Good Luck, \"\"Welcome to [the] Science [of Business], you're gonna like it here\"\" - Phil Plait\"",
"title": ""
},
{
"docid": "aadb42b2f8337e8f5a282e4d034362b2",
"text": "From my experience you don't need knowledge of accounting to pick good stocks. The type of investing you are referring to is fundamental. This is finding out about the company, this websites should help you start off: http://en.tradehero.mobi/how-to-choose-a-stock-fundamental-analysis/ Investopedia will also be a useful website in techniques. A bit of knowledge in economics will be helpful in understanding how current affairs will affect a market, which will affect stock prices. However you need neither economics or accounting knowledge if you were to learn technical analysis, many doubt the workings of this technique, but in my experience it is easier to learn and practise. For example looking at charts from previous years it shows the last time there was a huge recession the dollar did well and commodities didn't. In this recession we are entering you can see the same thing happening. Read about the different techniques before limiting yourself to just looking at financial statements you may find a better technique suited to you, like these technical analysts: http://etfhq.com/blog/2013/03/02/top-technical-analysts/ Hope this helps.",
"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": "c9be0cb23f9aeab59aeb64fa9d46670c",
"text": "\"To expand on the above, go to the \"\"Investor Relations\"\" part of the website if they're public, and take a look at how they explain themselves to their shareholders. You'll learn a lot very quickly about everything you'd need for the interview.\"",
"title": ""
},
{
"docid": "29a40af24f93fca95608892442b874f3",
"text": "There are all sorts of topics in finance that take a lot of time to learn. You have valuation (time value of money, capital asset pricing model, dividend discount model, etc.), financial statement analysis (ratio analysis, free cash flow & discounted cash flow, etc.) , capital structure analysis(Modgliani & Miller theories of capital structure, weighted average cost of capital, more CAPM, the likes), and portfolio management (asset allocation, security selection, integrates financial statement analysis + other fields like derivatives, fixed income, forex, and commodity markets) and all sorts. My opinion of Investopedia is that there is a lot of wheat with the chaff. I think articles/entries are just user-submitted and there are good gems in Investopedia but a lot of it only covers very basic concepts. And you often don't know what you don't know, so you might come out with a weak understanding of something. To begin, you need to understand TVM and why it works. Time value of money is a critical concept of finance that I feel many people don't truly grasp and just understand you need some 'rate' to use for this formula. Also, as a prereq, you should understand basics of accrual accounting (debits & credits) and how the accounting system works. Don't need to know things like asset retirement obligations, or anything fancy, just how accounting works and how things affect certain financial statements. After that, I'd jump into CAPM and cost of capital. Cost of capital is also a very misunderstood concept since schools often just give students the 'cost of capital' for math problems when in reality, it's not just an explicit number but more of a 'general feeling' in the environment. Calculating cost of capital is actually often very tricky (market risk premium) and subjective, sometimes it's not (LIBOR based). After that, you can build up on those basic concepts and start to do things like dividend discount models (basic theory underlying asset pricing models) and capital asset pricing models, which builds on the idea of cost of capital. Then go into valuation. Learn how to price equities, bonds, derivatives, etc. For example, you have the dividend discount model with typical equities and perpetuities. Fixed income has things like duration & convexity to measure risk and analyze yield curves. Derivatives, you have the Black-Scholes model and other 'derivatives' (heh) of that formula for calculating prices of options, futures, CDOs, etc. Valuation is essentially taking the idea of TVM to the next logical step. Then you can start delving into financial modelling. Free cash flows, discounted cash flows, ratio analysis, pro forma projections. Start small, use a structured problem that gives you some inputs and just do calculations. Bonuses* would be ideas of capital structure (really not necessary for entry level positions) like the M&M theorems on capital structure (debt vs equity), portfolio management (risk management, asset allocation, hedging, investment strategies like straddles, inverse floaters, etc), and knowledge of financial institutions and banking regulations (Basel accords, depository regulations, the Fed, etc.). Once you gain an understanding of how this works, pick something out there and do a report on it. Then you'll be left with a single 'word problem' that gives you nothing except a problem and tells you to find an answer. You'll have to find all the inputs and give reasons why these inputs are sound and reasonable inputs for this analysis. A big part that people don't understand about projections and analysis is that **inputs don't exist in plain sight**. You have to make a lot of judgment calls when making these assumptions and it takes a lot of technical understanding to make a reasonable assumption--of which the results of your report highly depend on. As a finance student, you get a taste for all of this. I'm gonna say it's going to be hard to learn a lot of substantial info in 2 months, but I'm not exactly sure what big business expects out of their grunts. You'll mostly be doing practical work like desk jockey business, data entry, and other labor-based jobs. If you know what you're talking about, you can probably work up to something more specialized like underwriting or risk management or something else. Source: Finance degree but currently working towards starting a (finance related) company to draw on my programming background as well.",
"title": ""
},
{
"docid": "4fb6acd2508554abfaf8439d0fc89a4a",
"text": "\"There are many different kinds of SEC filings with different purposes. Broadly speaking, what they have in common is that they are the ways that companies publicly disclose information that they are legally required to disclose. The page that you listed gives brief descriptions of many types, but if you click through to the articles on individual types of filings, you can get more info. One of the most commonly discussed filings is the 10-K, which is, as Wikipedia says, \"\"a comprehensive summary of a company's financial performance\"\". This includes info like earnings and executive pay. One example of a form that some people believe has potential utility for investors is Form 4, which is a disclosure of \"\"insider trading\"\". People with a privileged stake in a company (executives, directors, and major shareholders) cannot legally buy or sell shares without disclosing it by filing a Form 4. Some people think that you can make use of this information in the sense that if, for instance, the CEO of Google buys a bunch of Twitter stock, they may have some reason for thinking it will go up, so maybe you should buy it too. Whether such inferences are accurate, and whether you can garner a practical benefit from them (i.e., whether you can manage to buy before everyone else notices and drives the price up) is debatable. My personal opinion would be that, for an average retail investor, readng SEC filings is unlikely to be useful. The reason is that an average retail investor shouldn't be investing in individual companies at all, but rather in mutual funds or ETFs, which typically provide comparable returns with far less risk. SEC filings are made by individual companies, so it doesn't generally help you to read them unless you're going to take action related to an individual company. It doesn't generally make sense to take action related to an individual company if you don't have the time and energy to read a large number of SEC filings to decide which company to take action on. If you have the time and energy to read a large number of SEC filings, you're probably not an average retail investor. If you are a wheeler dealer who plays in the big leagues, you might benefit from reading SEC filings. However, if you aren't already reading SEC filings, you're probably not a wheeler dealer who plays in the big leagues. That said, if you're a currently-average investor with big dreams, it could be instructive to read a few filings to explore what you might do with them. You could, for instance, allocate a \"\"play money\"\" fund of a few thousand dollars and try your hand at following insider trades or the like. If you make some money, great; if not, oh well. Realistically, though, there are so many people who make a living reading SEC filings and acting on them every day that you have little chance of finding a \"\"diamond in the rough\"\" unless you also make a living by doing it every day. It's sort of like asking \"\"Should I read Boating Monthly to improve my sailing skills?\"\" If you're asking because you want to rent a Hobie Cat and go for a pleasure cruise now and then, sure, it can't hurt. If you're asking because you want to enter the America's Cup, you can still read Boating Monthly, but it won't in itself meaningfully increase your chances of winning the America's Cup.\"",
"title": ""
},
{
"docid": "953998066744ca70bd3d52152d186a3a",
"text": "\"If you are interested in a career in algorithmic trading, I strongly encourage you to formally study math and computer science. Algorithmic trading firms have no need for employees with financial knowledge; if they did, they'd just be called \"\"trading\"\" firms. Rather, they need experts in machine learning, statistical modeling, and computer science in general. Of course there are other avenues of employment at an algorithmic trading firm, such as accounting, clearing, exchange relations, etc. If that's the sort of thing you're interested in, again you'll probably want a formal education in those areas as opposed to just reading about finance in the news. If you edit your question or add a comment below with information about your particular background, I could perhaps advise you in a bit more detail. ::edit:: Given your comment, I would say you have a fine academic background for the industry. When hiring mathematicians, firms care most about the ease with which you can explore and extract features from massive datasets (especially time series) regardless of what the dataset might represent. An intelligent firm will not care whether you arrive at their doorstep with zero finance knowledge; they will want to teach you everything from scratch anyway. Nonetheless, some domain knowledge could be helpful, but you're not going to get \"\"more\"\" of it from reading any mass market news source, whether you have to pay for it or not. That's because Some non-mass-market news sources in the industry are These are subscription-only and actually discuss real information that real professional investors care about. They are loaded with industry jargon, they're extremely opinionated, and (in my opinion) they're useless. I can't imagine trying to learn about the industry from them, but if you want to spend money for news in order to be exposed to the innards of the industry, then either of these is far better than the Financial Times. Despite requiring a subscription, the Financial Times still does not cover the technical details of professional trading. Instead of trying to learn from news, then, I would suggest some old favorites: and, above all else, Read everything in the navigation box on the right side under Financial Markets and Financial Instruments.\"",
"title": ""
},
{
"docid": "6f4952b14a70ff141f9cc6483f94d071",
"text": "\"Publicly traded companies files 10-Ks with the SEC, searchable on the EDGAR system. If you want basic financial statement info then look for 10-Ks that are marked \"\"Interactive Data\"\", as for those the SEC has broken everything out by statement into standard formats. You could also use marketwatch which puts everything in financial statements into the same or as similar of categories as it can to make it easier to compare companies.\"",
"title": ""
},
{
"docid": "a9fbbddf99ada47cb3317b4673d6b8ca",
"text": "This is fine, but I'd probably spend a moment introducing WACC and it's estimation. It's also useful to link up the enterprise value to share price, so just also mentioning the debt subtraction to get equity value and division by shares for price. Keep in mind you're usually given like a minute to answer this, so you can afford to be a bit more detailed in some parts.",
"title": ""
},
{
"docid": "c8272dc25995314578ce4b67916ebc6f",
"text": "\"The basic equation taught in day one of accounting school is that Assets = Liabilities + Equity. My first point was that I looked at the actual financial statements published as of the end of the 2nd quarter 2017, and the total liabilities on their audited balance sheet were like $13 billion, not $20b. I don't know where the author got their numbers from. My second point: Debt usually needs to be paid on prearranged terms agreed upon by the debtor and the debtee, including interest, so it is important for a business to keep track of what they owe and to whom, so they can make timely payments. As long as they have the cash on hand to make payments plus whatever interest they owe, and the owners are happy with the total return on their investment, then it doesn't really matter how debt they have on the balance sheet. Remember the equation A=L+E. There are precisely two ways to finance a business that wants to acquire assets: liabilities and/or equity. The \"\"appropriate\"\" level of debt vs equity on a balance sheet varies wildly, and totally depends on the industry, size of the business, cash flow, personal preferences of the CEO, CFO, shareholders et al, etc. It gets way more detailed and complicated than that obviously, but the point is that looking at debt alone is a meaningless metric. This is corporate finance and accounting 101, so you can probably find tons of great articles and videos if you want to learn more.\"",
"title": ""
},
{
"docid": "b4f5cb01789a101dda033ab4b2e29e27",
"text": "They don't need to know how to actually write code, but they should understand the process of writing code. I don't expect a CEO to understand each line in the chain of the distribution centers but I do expect them to understand the process enough to make a logical decision. CEO's don't need to be able to write code, but they should understand what it takes to get that code to a production environment and what risks are involved with different types of code pushes.",
"title": ""
},
{
"docid": "4f86a8a4bb3fa8d170e7d2cb5f67b104",
"text": "Thanks for your thorough reply. Basically, I found a case study in one of my old finance workbooks from school and am trying to complete it. So it's not entirely complicated in the sense of a full LBO or merger model. That being said, the information that they provide is Year 1 EBITDA for TargetCo and BuyerCo and a Pro-Forma EBITDA for the consolidated company @ Year 1 and Year 4 (expected IPO). I was able to get the Pre-Money and Post-Money values and the Liquidation values (year 4 IPO), as well as the number of shares. I can use EBITDA to get EPS (ebitda/share in this case) for both consolidated and stand-alone @ Year 1, but can only get EPS for consolidated for all other years. Given the information provided. One of the questions I have is do I do anything with my liquidation values for an accretion/dilution analysis or is it all EPS?",
"title": ""
},
{
"docid": "46ec8b3f73e4ceaa7352199d3761af78",
"text": "I work in corporate finance at a large bank. Here's my opinion. I'd say learn SQL, Tableau, and OBIEE first in that order. I do know Java but have never personally used it at work. I know some people that do and Java is usually the language of choice for banks. It's really good to know but it's rare that a company would expect an accounting or finance person to use it. But almost every team in corporate finance will use at least one of the other three. Most finance / accounting people don't take the time to learn these. So most teams have one or two hot shots that do most of the work. Also, you can learn those three easily over the summer if not sooner. They aren't very difficult. Java is more complicated so maybe take your time learning that after the other ones.",
"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": "49d00cb08b23d1d2103174fcafd21f4c",
"text": "If you are refering to company's financial reports and offerings, the required source for companies to disclose the information is the SGX website (www.sgx.com) under the Company Disclosure tab. This includes annual statements for the last 5 years, prospectus for any shares/debentures/buy back/etc which is being offered, IPO offers and shareholders meetings. You may also find it useful to check the Research section of the SGX website where some of the public listed companies have voluntarily allowed independent research firms to monitor their company for a couple of years and produce a research report. If you are referring to filings under the Companies Act, these can be found at the Accounting and Regulatory Authority (ACRA) website (www.acra.gov.sg) and you can also purchase extracts of specific filings under the ACRA iShop. To understand the Singapore public listing system and the steps to public listing, you may find it useful to purchase one of the resource documents available for Singapore law, finance, tax and corporate secretaryship which are sold by CCH (www.cch.com.sg). Specifically for public listing the Singapore Annotated Listing Manual may help. It is common practice for companies here to employ law firms and research firms to do the majority of this research instead of doing it themselves which I one of the reasons this information is online but perhaps not so visible. I hope I have understood your question correctly!",
"title": ""
},
{
"docid": "1215709f7759651dfa4fa316b87bc917",
"text": "The websites of the most publicly traded companies publish their quarterly and annual financials. Check the investor relations sections out at the ones you want to look at.",
"title": ""
},
{
"docid": "7c7cd4dfefeb4623e8da5beb83ee96ab",
"text": "There are some economic signs as there are in all economic and business cycles, such as interest rates rising. However, a more effective way is to actually look at price action itself. The definition of an uptrend is higher highs followed by higher lows. The definition of a downtrend is lower lows followed by lower highs. So if you are looking to invest for the long term you can look at the weekly or even the monthly chart of the market say over the past 10, 15 or 20 years. Using these definitions on say the S&P500 if the price continues to make higher highs and higher lows then stay in the market. If the price makes a lower high than the previous high, then this is a warning sign that the trend may be about to end. The trend has not broken yet but it is a warning sign that it could be ending soon. If the price makes a higher low next followed by a higher high, then the trend continues and you just need to keep an eye on things. If, however, the price makes a lower low after the lower high this is a signal that the uptrend is over and you should get out of the market. If the price makes a lower low directly after a higher high, then be cautious and wait for confirmation that the uptrend is over. If you then get a lower high this is confirmation that the uptrend is over, you would then sell if prices drop below the previous low. If you invest in individual shares then you should keep an eye on the charts for the index and individual shares as well. The index chart will give you an indication if the uptrend is over for the whole market, then you can be more cautious in regards to the individual shares. You can then plan exit points on each individual share if their trends are broken too. If you have stop losses employed and the trend reverses on the index, this would be a good time to tighten your stop losses on individual shares. You can then buy back into the market when you determine that the downtrend is broken and prices start to show higher highs and higher lows again. Will there be occasions when the uptrend reverses and then after a short period starts trending up again, yes there might be, but the worse that will happen is that you pay a bit of extra brokerage to get out and then back into the market, and you might have to pay some capital gains tax on any profits made. But remember no one ever went broke making a profit. The most important thing to remember when investing is to conserve and protect your capital. I would rather pay some extra brokerage and some capital gains tax than see my portfolio drop by 50% or more, then take 5 years or more to recover. And remember, paying tax is a good thing, it means you made money. If you don't want to pay any tax it means you will never make any profits, because if you make profits you will have to pay tax one day.",
"title": ""
}
] |
fiqa
|
a47b2c7d4c6ec66f1326c95434f1e272
|
I am under 18 years old, in the US, my parents have terrible credit, how can I take out a loan?
|
[
{
"docid": "1c0b26d263cfa5db63d98c2b6fdab3c0",
"text": "Depending on the state this might not be possible. Loans are considered contracts, and various states regulate how minors may enter into them. For example, in the state of Oregon, a minor may NOT enter into a contract without their parent being on the contract as well. So you are forced to wait until you turn 18. At that time you won't have a credit history, and to lenders that often is worse than having bad credit. I can't help with the car (other than to recommend you buy a junker for $500-$1,000 and just live with it for now), but you could certainly get a secured credit card or line of credit from your local bank. The way they are arranged is, you make a deposit of an amount of your choosing (generally at least $200 for credit cards, and $1,000 for lines of credit), and receive a revolving line with a limit of that same amount. As you use and pay on this loan, it will be reported in your credit history. If you start that now, by the time you turn 18 you will have much better options for purchasing vehicles.",
"title": ""
},
{
"docid": "0609f66030464ce8977f64934cb2684a",
"text": "I am 17 and currently have a loan out for a car. My parents also have terrible credit, and because I knew this I was able to get around it. Your co-signer on your loan does not have to be your parent, at least in Wisconsin, I used my grandmother, who has excellent credit, as my cosigner. With my loan, we had made it so it doesn't hurt her credit if I don't get my payments in on time, maybe this is something for you to look into.",
"title": ""
}
] |
[
{
"docid": "e8551dc1d527827ddf6696afe51c141f",
"text": "You need a cosigner. Someone prepared to repay the mortgager if you should fail to. Needless to say this is going to have to be someone who knows you and trusts you very much. One way is to find someone prepared to share a house with you. Buy a bigger house than you would otherwise need. You would own half each, and the sharing agreement would specify that if one of you defaulted on their payments the other would get a larger share according to how much extra they end up paying. The other way is to find a silent partner, who doesn't live there. They put up no money unless you actually default. They would almost certainly have to be part owners, but you can structure the agreement so that you end up with the whole house if you succeed in paying off the mortgage, or miss no payments until you sell. Parents sometimes do this for their kids.",
"title": ""
},
{
"docid": "9e0b9a2e9015aeb08e040b219618558b",
"text": "In the US, money talks and bullshit walks. You can skip any credit history requirement if you demonstrate your ability to pay in a very obvious way. Credit history is just a standardized way of weeding out people that cannot reliably pay, instead of having to listen to an individual's excuses about how the bank overdrafted their account five times while they were waiting for their friend to pay them back for bubble gum. If you can show up with a wad of cash, you can get the car, or the apartment, or the bank account without the troubles of everyone else. But you can begin building credit with a secured credit card pretty easily. This will be useful for things like utilities and sometimes jobs. Also, banks won't be opposed to giving you credit if you have a lot of money in an account with them. You should be able to maintain an exemption from all socioeconomic problems in the United States, solely due to your experience with money and assets.",
"title": ""
},
{
"docid": "b83e9ce022aee6abbedc891366578447",
"text": "You're going to have a huge problem getting approved for anything as long as you have an unpaid bill on your report. Pay it and make sure its reported as paid in full - ASAP. Once that settled, your credit will start to improve slowly. Can't do anything about that, it will take time. You can make the situation improve a bit faster by lending money to yourself and having it reported regularly on your report. How? Easy. Get a secured credit card. What does it mean? You put X amount of money in a CD and the bank will issue you a credit card secured by that CD. Your credit line will be based on the amount in that CD, and you'll probably pay some fees to the bank for the service (~$20-50/year, shop around). You might get lucky and find a secured card without fees, if you look hard enough. Secured cards are reported as revolving credit (just as any other credit card) and are easy to get because the bank doesn't take the risk - you do. If you default on your payments - your CD goes to cover the debt, and the card gets cancelled. But make absolutely sure that you do not default. Charge between 10% and 30% of the credit limit each month, not more. Pay the balance shown on your credit card statement in full every month and by the due date shown on your monthly statement. It will take a while, but you would typically start noticing the improvement within ~6-12 months. Stop applying for stuff. Not store cards, not car loans, you're not going to get anything, and will just keep dragging your scores down. Each time you have a pull on your report, the score goes down. A lot of pulls, frequent pulls - the score goes down a lot. Lenders can see when one is desperate, and no-one wants to lend money to desperate people. Optimally lenders want to lend money to people who doesn't need loans, but in order to keep the business running they'll settle for slightly less - people who don't usually need loans, and pay the loans they do have on time. You fail on both, as you're desperate for a loan and you have unpaid bills on your report.",
"title": ""
},
{
"docid": "fa333059fd11e1523cf382938d912982",
"text": "\"Let me give you some advice from someone who has experience at both ends - had student loan issues myself and parents ran financial aid department at local university. Quick story of my student loan. I graduated in debt and could not pay at first due to having kids way too early. I deferred. Schools will have rules for deference. There are also federal guidelines - lets not get specific on this though since these change every year it seems. So basically there is an initial deferment period in which any student can request for the repayments to be deferred and it is granted. Then there is an extended deferment. Here someone has to OK it. This is really rather arbitrary and up to the school/lender. My school decided to not extend mine after I filled out a mound of paperwork and showed that even without paying I had basically $200 a month for the family to live off past housing/fixed expenses. Eventually they had to cave, because I had no money so they gave me an extended deferment. After the 5 years I started paying. Since my school had a very complex way to pay, I decided to give them 6 months at a time. You would think they would love that right? (On the check it was clearly stated what months I was paying for to show that I was not prepaying the loan off) Well I was in collections 4 months later. Their billing messed up, set me up for prepayment. They then played dumb and acted like I didn't but I had a picture of the check and their bank's stamp on the back... They couldn't get my loan out of collections - even though they messed up. This is probably some lower level employee trying to cover their mistake. So this office tells creditors to leave me alone but I also CANNOT pay my loan because the credit collection agency has slapped a 5k fee on the 7k loan. So my loan spent 5 years (kid you not) like this. It was interest free since the employee stopped the loan processing. Point being is that if you don't pay the lender will either put your loan into deferment automatically or go after you. MOST (not all) schools will opt for deferment, which I believe is 2 years at most places. Then after that you have the optional deferment. So if you keep not paying they might throw you into that bucket. However if you stop paying and you never communicate with them the chances of you getting the optional deferment are almost none - unless school doesn't know where you live. Basically if you don't respond to their mail/emails you get swept into their credit collection process. So just filling out the deferment stuff when you get it - even if they deny it - could buy you up to 10 years - kid you not. Now once you go into the collection process... anything is game. As long as you don't need a home/car loan you can play this game. What the collection agency does depends on size of loan and the rules. If you are at a \"\"major\"\" university the rules are usually more lax, but if you are at the smaller schools, especially the advertised trade/online schools boom - better watch out. Wages will be garnished very soon. Expect to go to court, might have to hire an attorney because some corrupt lenders start smacking on fees - think of the 5k mine smacked on me. So the moral of the story is you will pay it off. If you act nice, fill out paperwork, talk to school, and so on you can probably push this off quite a few years. But you are still paying and you will pay interest on everything. So factor in that to the equation. I had a 2.3% loan but they are much higher now. Defaulting isn't always a bad thing. If you don't have the money then you don't have it. And using credit cards to help is not the thing to do. But you need to try to work with the school so you don't incur penalties/fees and so that your job doesn't have creditors calling them. My story ended year 4 that my loan was in collection. A higher up was reviewing my case and called me. Told her the story and emailed her a picture of their cashed check. She was completely embarrassed when she was trying to work out a plan for me and I am like - how about I come down tomorrow with the 7k. But even though lender admitted fault this took 20+ calls to agencies to clear up my credit so I could buy a house. So your goal should be:\"",
"title": ""
},
{
"docid": "39aa9172cca72e1bd3023423e442c419",
"text": "Not only should you do this, you should tell your friends to do it too. Especially if a parent comes in to the bank with the child, banks fall over themselves to provide a card to someone whose only income is allowance. Really. Later, if you're 21 and your car broke and you don't get paid for another 11 days, NOBODY will lend you the money (or those money mart places that charge 300% a year will) to fix it. Never mind score (and yes for sure having a good score will be a result, and a good one) just having the card for emergencies makes all the difference to your early twenties. My kids have several friends who now can't get credit cards (some are students, some are underemployed) and end up missing paid days of work due to car troubles they can't pay to fix, or using those payday lenders, or other things that keep you poor. Get one while you can. Using it sensibly means you will have a great credit score in a decade or so, but just plain having it is worth more than you can know if you're not 18 yet.",
"title": ""
},
{
"docid": "63792b296af0765c2debb64c8e9bc54d",
"text": "A traditional bank is not likely to give you a loan if you have no source of income. Credit card application forms also ask for your current income level and may reject you based on not having a job. You might want to make a list of income and expenses and look closely at which expenses can be reduced or eliminated. Use 6 months of your actual bills to calculate this list. Also make a list of your assets and liabilities. A sheet that lists income/expenses and assets/liabilities is called a Financial Statement. This is the most basic tool you'll need to get your expenses under control. There are many other options for raising capital to pay for your monthly expenses: Sell off your possessions that you no longer need or can't afford Ask for short term loan help from family and friends Advertise for short term loan help on websites such as Kijiji Start a part-time business doing something that you like and people need. Tutoring, dog-walking, photography, you make the list and pick from it. Look into unemployment insurance. Apply as soon as you are out of work. The folks at the unemployment office are willing to answer all your questions and help you get what you need. Dip into your retirement fund. To reduce your expenses, here are a few things you may not have considered: If you own your home, make an appointment with your bank to discuss renegotiation of your mortgage payments. The bank will be more interested in helping you before you start missing payments than after. Depending on how much equity you have in your home, you may be able to significantly reduce payments by extending the life of the mortgage. Your banker will be impressed if you can bring them a balance sheet that shows your assets, liabilities, income and expenses. As above, for car payments as well. Call your phone, cable, credit card, and internet service providers and tell them you want to cancel your service. This will immediately connect you to Customer Retention. Let them know that you are having a hard time paying your bill and will either have to negotiate a lower payment or cancel the service. This tactic can significantly reduce your payments. When you have your new job, there are some things you can do to make sure this doesn't happen again: Set aside 10% of your income in a savings account. Have it automatically deducted from your income at source if you can. 75% of Americans are 4 weeks away from bankruptcy. You can avoid this by forcing yourself to save enough to manage your household finances for 3 - 6 months, a year is better. If you own your own home, take out a line of credit against it based on the available equity. Your bank can help you with that. It won't cost you anything as long as you don't use it. This is emergency money; do not use it for vacations or car repairs. There will always be little emergencies in life, this line of credit is not for that. Pay off your credit cards and loans, most expensive rate first. Use 10% of your income to do this. When the first one is paid off, use the 10% plus the interest you are now saving to pay off the next most expensive card/loan. Create a budget you can stick to. You can find a great budget calculator here: http://www.gailvazoxlade.com/resources/interactive_budget_worksheet.html Note I have no affiliation with the above-mentioned site, and have a great respect for this woman's ability to teach people about how to handle money.",
"title": ""
},
{
"docid": "e96a248e0185b8c754ebc2925ba34621",
"text": "\"If you're in the US then no. You cannot enter a binding contract therefore you will not get a loan from a bank. Cosigner or no cosigner, anything to do with a loan and a bank will not involve you. Your parents can get a loan, then they can give you the money, then you can pay them for their payments, but none of that means the loan has anything to do with you. It's their loan, if they default it's on them. Given your age, you probably will ignore everyone else's advice here about this trip being a bad idea if you can't afford it, but you should reconsider it. You will be paying for this trip long after the fun and excitement has worn off. This is the cycle that sends alot of families into bankruptcy, and it's a horrible habit to learn so young. \"\"Loan\"\" shouldn't even be in your vocabulary dealing with anything other than a library book.\"",
"title": ""
},
{
"docid": "2140584e169d629a1d505262f59597bf",
"text": "Smart parents not wanting to get stuck with a student loan or co-signing on a loan. because rent is so high Are you able to live with your parents? Is there anyway to reduce the cost of rent like renting a room? Can you move somewhere where the rent is cheaper? working 25 hours per week Working 25 hours per week and taking 6 hours is a pretty light schedule. It is not even 40 hours per week. What is stopping you from working 40 hours and paying for school from your salary? In my own life I created a pretty crappy situation for myself when I was a young man. I really wanted to go to a prestigious university, but ended up going to a community college, and then to a university that was lesser known in a less expensive area. I had to work like crazy, upwards of 50 hours per week. I also took a full load in a difficult degree program. You probably don't have to go to the extremes that I went through, but you can work more. Most adults work at their jobs well more than 40 hours per week, then come home and continue to work (on the house, raising kids, trying to start a side business, etc...). So you might as well become an adult now. There are ways to become independent from your parents for FAFSA like have a baby, get married, or join the military. I'd only recommend the last one as you will also receive the GI Bill. Another option is to try and obtain a job that offers financial aid.",
"title": ""
},
{
"docid": "20dea3b2e4cbbd789235606ea60ee020",
"text": "At your age, the only place you are going to get a loan is from relatives. If you can't... Go to next year's conference. Missing it this year might feel like a disaster, but it really, really isn't.",
"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": "6ec5bf02eb05a8458978817549471a9f",
"text": "\"When I was in high school, my mom got me a joint credit account with both of our names on it for exactly this reason. Well, that, and to have in case I found myself in some sort emergency, but it was mostly to build credit history. That account is still on my credit report (it's my oldest by a few years), and looking at the age of it, I was 17 at the time we opened it (and I think my younger sister got one around the same time). In my case, I now have an \"\"excellent\"\" credit score and my weakest area is the age of my accounts, so having that old account definitely helps me. I don't think I've really taken advantage of it, and I'm not sure if I'd really be worse off if my mom hadn't done that, but it certainly hasn't hurt. And I plan on buying a house in the next year or so, so having anything to bump up the credit score seems like a good thing.\"",
"title": ""
},
{
"docid": "57df0258a0afb33df7402a40ec2fc121",
"text": "In general, minors cannot enter into legally binding contracts -- which is what credit accounts are -- so an individually held card is probably not an option for you right now. You will not be approved for a credit card because you are minor. The only option credit card wise for you is for your parents to add you on as an authorized user onto their accounts. The upside is that you and your parents can work out a monthly payment for the amount you spend on your equipment, the downside is that if your parents don't pay their credit card bill, your credit score/report can be negatively affected. (This also depends on the bank, however, all the banks I bank with report monthly payment activities on authorized users' credit reports as well. There might be a bank that doesn't.) In terms of credit cards, there is nothing you can do. What you could do as the comments have suggested is either save up money for the equipment you want, or buy something cheaper.",
"title": ""
},
{
"docid": "cf28d2e6e0df4f9a3b7ce870dd89e9d4",
"text": "It sounds like your current loan is in your name. As such, you are responsible for paying it. Not your family, you. It also sounds like the loan payments are regularly late. That'll likely drastically affect your credit rating. Given what you've said, it doesn't surprise me that you were declined for a credit card. With the information on your credit report, you are a poor risk. Assuming your family is unable to pay loan on time (and assuming you aren't willing to do so), you desperately need to get your name off the loan. This may mean selling the property and closing out the loan. This won't be enough to fix your credit, though. All that will do is stop making your credit worse. It'll take a few years (five years in Canada, not sure how many years in India) until this loan stops showing up on your credit report. That's why it is important to do this immediately. Now, can a bank give you a loan or a credit card despite bad credit? Yes, absolutely. It all depends on how bad your credit is. If the bank is willing to do so, they'll most likely charge a higher interest rate. But the bank may well decide not to give you a loan. After all, your credit report shows you don't make your loan payments on time. You may also want to request your own copy of your credit report. You may have to pay for this, especially if you want to see your score. This could be valuable information if you are looking to fix your finances, and may be worth the cost. If you are sure it's just this one loan, it may not be necessary. Good luck! Edit: In India CIBIL is the authority that maintains records. Getting to know you exact score will help. CIBIL offers it via TransUnion. The non-payment will keep appearing on your record for 3 years. As you don't have any loans, get a credit card from a Bank where you have Fixed Deposits / PPF Account as it would be easier to get one. It can then help you build the credit.",
"title": ""
},
{
"docid": "75ed0fc10a3b7761fa31377b7c52efb2",
"text": "If your parents can spare it, take the money from your parents and return it to them with interest. It is always better to pay interest to family than to a bank.",
"title": ""
},
{
"docid": "24e3f17c0b75c01f8b9b00611bdd3e20",
"text": "Are financial institutions less likely to lend me money because of my age Yes. But they are especially unlikely to loan you money because you have little income. or because they know I avoid interest by paying things off aggressively? This won't affect them. But you might ask yourself how much credit history you have. Credit history can include all of loans, credit cards, rent, utilities, etc. You mention three loans. But you don't mention rent or utilities. You may simply not have much credit history, even if what you do have is good. But again, the biggest thing that they will look at is your income history. If you have a small income, then it doesn't matter what your payment history is. They don't want to loan money to people who need money. They want to loan money to people who don't need to borrow but are instead bringing a future purchase into the present. The ideal recipient is someone who has a high income and spends it all every month. Such a person is likely to borrow heavily but be able to keep up the payments. Obsessing about your ability to borrow is probably the wrong approach. Instead focus on how you can meet your goals without borrowing. Eventually your ability to pay will catch up. Then they'll offer you money. Of course, you might not need it then. Note that when I say little income, I'm talking about their perspective. You may be fully on track and making decent money or even very good money for your age. But they're looking for people who are mature in their careers and regularly bringing home large sums but who spend it faster than they can get it.",
"title": ""
}
] |
fiqa
|
10de8274aa921e88acf8a7a713610395
|
UK limited company and personal bank account
|
[
{
"docid": "281ead90b48ee598552183e72ee93263",
"text": "I don't think there is a legal requirement that you need a separate bank account. Just remember that you can only take money from your LLC as salary (paying tax), as dividend (paying tax), or as a loan (which you need to repay, including and especially if the LLC goes bankrupt). So make very sure that your books are in order.",
"title": ""
}
] |
[
{
"docid": "fcea0195c525dd15d0979228c8159f02",
"text": "Use a limited company. Use the HMRC website for help on limited companies and get a good accountant for doing your taxes. Mixing your website income and personal income may make you pay a higher tax rate. You can take out expenses from the limited company, which are tax deductible. But if you group it in personal income it wouldn't be tax deductible. In a personal capacity you are 100% liable if your business goes bust and you owe debt. But for a limited company you are only liable for what you own i.e %age of shares. You can take on an investor if your business booms and it is easier if you do it through a limited company rather than through a personal endeavour.",
"title": ""
},
{
"docid": "6ea1a50c2be082b1898f0ac78a08715d",
"text": "In the US, you would probably look at a certificate of deposit (CD). I imagine there is a similar financial product in the UK, but don't know first hand. I think it is wise to be risk averse in this situation, but be aware that your interest rate will be dismal for guaranteed returns.",
"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": "983b96518395d2dd077ddb166149f582",
"text": "or just input it in my accounting software along with receipts, and then when I'm doing taxes this would go under the investment or loses (is it somewhere along that line)? Yes, this. Generally, for the long term you should have a separate bank account and charge card for your business. I started my business (LLC) by filing online, and paying a fee for a registration, and that makes it a business cost right? Startup cost. There are special rules about this. Talk to your tax adviser. For the amounts in question you could probably expense it, but verify.",
"title": ""
},
{
"docid": "9e0bf969138d5735f61a8ebd7bdc190b",
"text": "\"You manage this account just as any other account. \"\"Petty cash\"\" refers to accounts where the cash money is intended for ad-hoc purchases, where you store an amount of cash in your drawer and take it out as needed. However, other than naming it \"\"petty cash\"\", there's nothing petty about it - it's an account just as any other. Many choose to just \"\"deduct\"\" the amount transferred to \"\"Petty Cash\"\" account and not manage it at all. Here the amount matters - some smaller amounts can fall under \"\"de minimis\"\" rules of the appropriate regulatory authority. Since you told nothing about where you are and what your business is - we can't tell you what the rules are in your case. If you track the usage of this account (and from your description it sounds like you are) - then the name \"\"Petty Cash\"\" is meaningless. It's an account just like any other. Since you have an employee dealing with this cash you should establish some internal audit procedures to ensure that there's no embezzlement and everything is accounted for. You will probably want to reconcile this account more often than others and check more thoroughly on what's going on with it. Since its a \"\"personal finance\"\" forum, I'm assuming you're a sole proprietor or a very small business, and SEC/SOX rules don't apply to you. If they do - you should have a licensed accountant (CPA or whatever public accountancy designation is regulated in your area) to help you with this.\"",
"title": ""
},
{
"docid": "e7e312bedeec562941f2f63ff198c46b",
"text": "\"have a bank account here, you need to have a credit history, That is wrong, whoever informed you that. You don't need a credit history to open a bank account. Some banks allow you to open no frills accounts without a credit history. I myself opened an account, with Barclays, with my NI card, job contract and probably my passport too and I amn't from the EU. Also, the bank that allowed me to open the account, doesn't allow me to wire transfer (my) money to another (UK) account, and claims that ll the bank have the same policy for \"\"cash accounts\"\", is that true, I mean, is there an actual law that for some reason donesn't allow you to transfer your funds? Why? Did you read the T&Cs. Chances are that other the account is with a different bank. And it always is fishy, atleast for banks because of heightened money laundering regulations, for people opening accounts and starting to transfer money to accounts with other banks. After you have banked with them for certain time, you can ask them to upgrade you to a current account which allow these services. Secondly because it might be a no frills account and they aren't allowed to charge fees, they might disallow transfers to other banks. And banks generally don't charge fees for no frills accounts so certain services are disallowed, which cost them money. NB:- I have had a cash account for 4-5 years with Barclays and I used to transfer money to other banks, but I probably never tried transferring money just after opening an account.\"",
"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": "0dce6729624168b550256744e70137e0",
"text": "No, thanks to the principle of corporate personhood. The legal entity (company C) is the owner and parent of the private company (sub S). You and C are separate legal entities, as are C and S. This principle helps to legally insulate the parties for purposes such as liability, torts, taxes, and so forth. If company C is sued, you may be financially at stake (i.e. your investment in C is devalued or made worthless) but you are not personally being sued. However, the litigant may attach you as an additional litigant if the facts of the suit merit it. But without legal separateness of corporations, then potentially all owners and maybe a number of the employees would be sued any time somebody sued the business - which is messy for companies and messy for litigants. It's also far cleaner for lenders to lend to unified business entities rather than a variety of thousands of ever-shifting shareholders. Note that this is a separate analysis that assumes the companies are not treated as partnerships or disregarded entities (tax nothings) for tax purposes, in which case an owner may for some purposes be imputed to own the assets of C. I've also ignored the consolidated tax return, which would allow C and S to file a type of corporate joint return that for some purposes treats them similarly to common entity. For the simplest variation of your question, the answer is no. You do not own the assets of a corporation by virtue of owning a few of its shares. Edit: In light of your edit to include FB and Whatsapp, and the wrinkle about corporate books. If sub S is 100% owned by company C, then you do not have any inspection rights to S because you are not a shareholder. You also do not have virtual corporation inspection rights through company C. However, if a person has inspection rights to company C, and sub S appears on the books and financial records of C, then your C rights will do the job of seeing S information. However, Facebook is a public company, so they will make regular public filings and disclosures that should at least partly cover Whatsapp. So I hedge and clear my throat by averring that my securities training is limited, but I believe that the SEC filings of a public company will as a practical matter (maybe a matter of law?) moot the inspection rights. At the very least, I suspect you'd need a proper purpose (under DGCL, for example), to demand the inspection, and they will have already made extensive disclosures that I believe will be presumptively sufficient. I defer to more experienced securities experts on that question, but I don't believe inspection rights are designed for public companies.",
"title": ""
},
{
"docid": "73f616354bbcd19e986fbb0458614a5a",
"text": "You could, but the bank won't let you... If you're a sole proprietor - then you could probably open a personal account and just use it, and never tell them that is actually a business. However, depending on your volume of operations, they may switch you on their own to business account by the pattern of your transactions. For corporations, you cannot use a personal account since the corporation is a separate legal entity that owns the funds. Also, you're generally required to separate corporate and personal funds to keep the limited liability protection (which is why you have the corporation to begin with). Generally, business accounts have much higher volumes and much more transactions than personal accounts, and it costs more for the banks to run them. In the US, some banks offer free, or very low-cost, business accounts for small businesses that don't need too many transactions. I'm sure if you shop around, you'll find those in Canada as well.",
"title": ""
},
{
"docid": "500c95eb8f7bbe0ace7c49351a3a4d1d",
"text": "\"When I left the UK four years ago, free banking is still an option and I'm pretty sure it still is. Therefore, you have chosen to have a bank account with a 5.00/month charge. In return for this charge, you will be eligible to receive certain benefits. For example; reduced borrowing costs, discounted mortgage rates, free overdraft on small amounts, \"\"rewards\"\" for paying household bills by direct debit, and things of this sort. Amongst these benefits may be preferential savings rates. However, from HMRC's point of view it will be the extra perks you are paying for with your monthly charge. You have chosen to pay for the account and HMRC is not interested in how you choose to spend your money, only in the money you earn. While I agree with you that it does have an element of unfairness, the problem is how would you divide the cost amongst the various benefits.\"",
"title": ""
},
{
"docid": "f3275902f1c0f9720de7ffcf33556f77",
"text": "\"The shares are \"\"imputed income\"\" / payment in kind. You worked in the UK, but are you a \"\"US Person\"\"? If not, you should go back to payroll with this query as this income is taxable in the UK. It is important you find out on what basis they were issued. The company will have answers. Where they aquired at a discount to fair market value ? Where they purchased with a salary deduction as part of a scheme ? Where they acquired by conversion of employee stock options ? If you sell the shares, or are paid dividends, then there will be tax withheld.\"",
"title": ""
},
{
"docid": "0ff87b4504eaa0cf33d2b696582f47ef",
"text": "\"I think the \"\"right\"\" way to approach this is for your personal books and your business's books to be completely separate. You would need to really think of them as separate things, such that rather than being disappointed that there's no \"\"cross transactions\"\" between files, you think of it as \"\"In my personal account I invested in a new business like any other investment\"\" with a transfer from your personal account to a Stock or other investment account in your company, and \"\"This business received some additional capital\"\" which one handles with a transfer (probably from Equity) to its checking account or the like. Yes, you don't get the built-in checks that you entered the same dollar amount in each, but (1) you need to reconcile your books against reality anyway occasionally, so errors should get caught, and (2) the transactions really are separate things from each entity's perspective. The main way to \"\"hack it\"\" would be to have separate top-level placeholder accounts for the business's Equity, Income, Expenses, and Assets/Liabilities. That is, your top-level accounts would be \"\"Personal Equity\"\", \"\"Business Equity\"\", \"\"Personal Income\"\", \"\"Business Income\"\", and so on. You can combine Assets and Liabilities within a single top-level account if you want, which may help you with that \"\"outlook of my business value\"\" you're looking for. (In fact, in my personal books, I have in the \"\"Current Assets\"\" account both normal things like my Checking account, but also my credit cards, because once I spend the money on my credit card I want to think of the money as being gone, since it is. Obviously this isn't \"\"standard accounting\"\" in any way, but it works well for what I use it for.) You could also just have within each \"\"normal\"\" top-level placeholder account, a placeholder account for both \"\"Personal\"\" and \"\"My Business\"\", to at least have a consistent structure. Depending on how your business is getting taxed in your jurisdiction, this may even be closer to how your taxing authorities treat things (if, for instance, the business income all goes on your personal tax return, but on a separate form). Regardless of how you set up the accounts, you can then create reports and filter them to include just that set of business accounts. I can see how just looking at the account list and transaction registers can be useful for many things, but the reporting does let you look at everything you need and handles much better when you want to look through a filter to just part of your financial picture. Once you set up the reporting (and you can report on lists of account balances, as well as transaction lists, and lots of other things), you can save them as Custom Reports, and then open them up whenever you want. You can even just leave a report tab (or several) open, and switch to it (refreshing it if needed) just like you might switch to the main Account List tab. I suspect once you got it set up and tried it for a while you'd find it quite satisfactory.\"",
"title": ""
},
{
"docid": "26a38c18828a857d694e30863e4badec",
"text": "There are no legal restrictions on doing this. If you're living in the UK, just open an account like any other resident of the UK would.",
"title": ""
},
{
"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": "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": ""
}
] |
fiqa
|
537e132a674ca670a229c10e4aa93979
|
Does receiving a 1099-MISC require one to file a tax return even if he normally would not be required to file?
|
[
{
"docid": "f32d820d97c3f202be1a3c1a88a1820b",
"text": "\"Does he need to file a tax return in this situation? Will the IRS be concerned that he did not file even if he received a 1099? No. However, if you don't file the IRS may come back asking why, or \"\"make up\"\" a return for you assuming that the whole amount on the 1099-MISC is your net earnings. So in the end, I suspect you'll end up filing even though you don't have to, just to prove that you don't have to. Bottom line - if you have 1099 income (or any other income reported to the IRS that brings you over the filing threshold), file a return.\"",
"title": ""
}
] |
[
{
"docid": "57fbee9831e6442f6cf8d4f9f3c712b6",
"text": "I can't find specific information for Form 1099-DIV for this tax year. However, I found this quote for next tax season that talks about Form 1099-B: Due date for certain statements sent to recipients. The due date for furnishing statements to recipients for Forms 1099-B, 1099-S, and 1099-MISC (if amounts are reported in box 8 or 14) is February 15, 2018. [emphasis added] I know many brokerages bundle the 1099-DIV with the 1099-B, so one might assume that the deadlines are the same. February 15 seems consistent with the messages I got from my brokerages that said the forms will be mailed by mid-February.",
"title": ""
},
{
"docid": "cf1c0c8f4ce07239858da167fbbcade1",
"text": "You can and are supposed to report self-employment income on Schedule C (or C-EZ if eligible, which a programmer likely is) even when the payer isn't required to give you 1099-MISC (or 1099-K for a payment network now). From there, after deducting permitted expenses, it flows to 1040 (for income tax) and Schedule SE (for self-employment tax). See https://www.irs.gov/individuals/self-employed for some basics and lots of useful links. If this income is large enough your tax on it will be more than $1000, you may need to make quarterly estimated payments (OR if you also have a 'day job' have that employer increase your withholding) to avoid an underpayment penalty. But if this is the first year you have significant self-employment income (or other taxable but unwithheld income like realized capital gains) and your economic/tax situation is otherwise unchanged -- i.e. you have the same (or more) payroll income with the same (or more) withholding -- then there is a 'safe harbor': if your withholding plus estimated payments this year is too low to pay this year's tax but it is enough to pay last year's tax you escape the penalty. (You still need to pay the tax due, of course, so keep the funds available for that.) At the end of the first year when you prepare your return you will see how the numbers work out and can more easily do a good estimate for the following year(s). A single-member LLC or 'S' corp is usually disregarded for tax purposes, although you can elect otherwise, while a (traditional) 'C' corp is more complicated and AIUI out-of-scope for this Stack; see https://www.irs.gov/businesses/small-businesses-self-employed/business-structures for more.",
"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": "8c44c3df83ffe71f83ceaba813b6c91a",
"text": "\"Form W-9 (officially, the \"\"Request for Taxpayer Identification Number and Certification\"\") is used in the United States income tax system by a third party who must file an information return with the Internal Revenue Service (IRS). It requests the name, address, and taxpayer identification information of a taxpayer (in the form of a Social Security Number or Employer Identification Number). A W-9 is typically required when an individual is doing work, as a contractor or as an employee, for a company and will be paid more than $600 in a tax-year. The company is required to file a W-2 or a 1099 and so requests a W-9 to get the information necessary for those forms. I cannot say if it is incompetence on the part of the accounting department or a deliberate ploy to make the refund process more onerous, but do not comply. Politely nsist on a refund without any further information. If the company refuses, request a charge-back from the credit-card company, file a complaint with the consumer-protection department of the state where the company is located, and write a bad review on Yelp or wherever else seems appropriate.\"",
"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": "df1e56fb20ac2062c3ea4d7c85015ded",
"text": "\"If you're single, the only solution I'm aware of, assuming you are truly getting a 1099-misc and not a W-2 (and don't have a W-2 option available, like TAing), is to save in a nondeductible account for now. Then, when you later do have a job, use that nondeductible account (in part) to fund your retirement accounts. Particularly the first few years (if you're a \"\"young\"\" grad student in particular), you'll probably be low enough on the income side that you can fit this in - in particular if you've got a 401k or 403b plan at work; make your from-salary contributions there, and make deductible IRA or Roth IRA contributions from your in-school savings. If you're not single, or even if you are single but have a child, you have a few other options. Spouses who don't have earned income, but have a spouse who does, can set up a Spousal IRA. You can then, combined, save up to your spouse's total earned income (or the usual per-person maximums). So if you are married and your wife/husband works, you can essentially count his/her earned income towards your earned income. Second, if you have a child, consider setting up a 529 plan for them. You're probably going to want to do this anyway, right? You can even do this for a niece or nephew, if you're feeling generous.\"",
"title": ""
},
{
"docid": "afbca4d29419bb73a19199c8112612b3",
"text": "\"If you are in the US, you legally must file taxes on any income whatsoever. How much you will pay in taxes, if any, will depend on your total taxable income. Now, for small transactions, the payments are often not reported to the IRS so some people do not file or pay. The threshold at which they payer is required to send a 1099 to the IRS is $600. Patreon considers each donation a separate transaction and therefore does not send a 1099 to the IRS unless you make more than $20,000 in a calendar year. If they do not report it, the IRS will not know about it unless they audit you or something. However, you are technically and legally responsible to report income whether the IRS knows about it or not. -------- EDIT ------- Note that the payer files a 1099, not the recipient. In order to report your patreon income you will either use schedule C or add it to the amount on 1040 line 21 (\"\"other income\"\") depending on whether you consider this a business or a hobby. If it's a business and it's a lot of money you should consider sending in quarterly payments using a 1040-ES in order to avoid a penalty for too little withholding.\"",
"title": ""
},
{
"docid": "e3ec07a7084d37b0262ffb6813149b45",
"text": "Residents pay tax on all of the income they receive during the calendar year from all sources, so you'll at least need to file and pay New York state income taxes on this money regardless. I can't answer whether you'll need to file and pay Colorado state income tax on this money as well. Generally speaking, you need to file a return for each state in which you live, receive income, or have business interests. If you are required to file a Colorado state income tax return, however, you can claim a credit for taxes paid to another state on your New York state income tax return using form IT-112-R (see the form and instructions).",
"title": ""
},
{
"docid": "dfa301d072f1ede64d7a19321e3d22e0",
"text": "You are not required to file a tax return in Canada if you have no taxable income. If you do not file a return you may be requested to by Canada Revenue Agency, and then you'll need to file one. There are hundreds of thousands of Canadian residents who do not file tax returns. The Minister who overlooks the CRA may assess any amount of taxes on any resident whether they file a return or not. There are penalties for failing to file a return or filing late. The penalties are based on a percentage of the taxes owed. If you owe no taxes, then the penalties are meaningless.",
"title": ""
},
{
"docid": "28526f65abdc2985664cffeb477ba4eb",
"text": "\"IRS Pub 554 states (click to read full IRS doc): \"\"Do not file a federal income tax return if you do not meet the filing requirements and are not due a refund. ... If you are a U.S. citizen or resident alien, you must file a return if your gross income for the year was at least the amount shown on the appropriate line in Table 1-1 below. \"\" You may not have wage income, but you will probably have interest, dividend, capital gains, or proceeds from sale of a house (and there is a special note that you must file in this case, even if you enjoy the exclusion for primary residence)\"",
"title": ""
},
{
"docid": "4645e910fa7f0f30aa582dcc00e85207",
"text": "In many cases, you are required to file your taxes by law even if you won't owe. If it's anything like in the US, it's quite possible your employer is not taking the right amount and you may owe more or may even be in line for a return. http://www.usatax.ca/Pages/filing_requirement_taxes_canada.html",
"title": ""
},
{
"docid": "fb32224abbecd0111b8671b4ed22d88a",
"text": "In Singapore, this is sufficiently common that the Singapore IRS has a page on their website dedicated to informing employers of how to properly pay this under Responsibilites of an Employer. Specifically, tax paid by employer is taxable income for the employee (as it's really the employee's responsibility), so they must pay tax for that tax. A tax-on-tax is computed for the tax paid, which also would be owed by the employer if they were paying the full tax rate for the employee. As a clarification, this is not the employer being truly responsible for the employee's income; this is the employer compensating the employee further to offset their taxable income. This is effectively a fringe benefit, although it may be particularly useful in countries where either tax evasion is common (and thus an employer must compete with employers willing to pay under the table) or where employers are competing with others in nearby countries with lower tax rates. It is not the same thing as the employer making your income nontaxable, though, and has implications for your tax filing. Significantly, it is likely that if you have additional income beyond income from that employer, it is likely to be taxed at your highest tax rate, as the employer will likely calculate the tax due based on their income being the only income you have in that year. *Edit based on emphasis in question: I'm not from Singapore nor am I a lawyer, but based on my reading of the IRAS website, it looks like you do not have to file if you have no other source of income, because they have a No-Filing Service which takes income information from your employer automatically and generates a tax bill, which presumably would be fully paid in your case. This only aplies if you have no other sources of income, however; you still have to file if you have other sources of income since your employer would not know about them. If you are eligible for this service, you should get a letter informing you as such. They also have a tool to check your filing status on their website.",
"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": "12a6603099f34cd972e1f9f95e9ab8b4",
"text": "I am not a lawyer or a tax accountant, but from the description provided it sounds to me like you have created two partnerships: one in which you share 50% of Bob's revenue, and another in which you share 50% of the revenue from the first partnership. If this is the case, then each partnership would need to file form K-1 and issue a copy to the partners of that partnership. I think, but I'm not sure, that each partnership would need an Employer Identification Number (EIN; you can apply for and receive these online with the IRS). You would only pay tax on the portion of profits that are assigned to you on the K-1. (If you've accidentally created a partnership without thinking through all the ramifications, you probably want to straighten this out. You can be held liable for the actions of your partners.) On the other hand, if your contract with Bob explicitly makes you a contractor and not a partner, then Bob should probably be issuing a 1099 to you. Similarly for you and Joe -- if your contract with Joe makes him a subcontractor, then you may need to get an EIN and issue him a 1099 at the end of the year. The money you pay to Joe is a business expense, and would be deducted from the profits you show on your Schedule C. In my opinion, it would be worth the $200 fee paid to a good CPA to make sure you get this right.",
"title": ""
},
{
"docid": "b80f37a9693776121b787c7f4caa04d8",
"text": "No, you probably do not need to file a tax return if you received no income, and if you meet a number of other criteria. The below is copied and pasted, slightly edited, from the CRA: You must file a return for 2014 if any of the following situations apply: You have to pay tax for 2014. We sent you a request to file a return. You and your spouse or common-law partner elected to split pension income for 2014. See lines 115, 116, 129, and 210. You received working income tax benefit (WITB) advance payments in 2014. You disposed of capital property in 2014 (for example, if you sold real estate or shares) or you realized a taxable capital gain (for example, if a mutual fund or trust attributed amounts to you, or you are reporting a capital gains reserve you claimed on your 2013 return). You have to repay any of your old age security or employment insurance benefits. See line 235. You have not repaid all amounts withdrawn from your registered retirement savings plan (RRSP) under the Home Buyers’ Plan or the Lifelong Learning Plan. For more information, go to Home Buyers' Plan (HBP) or see Guide RC4112, Lifelong Learning Plan (LLP) or You have to contribute to the Canada Pension Plan (CPP). This can apply if, for 2014, the total of your net self-employment income and pensionable employment income is more than $3,500. See line 222. You are paying employment insurance premiums on self-employment and other eligible earnings. See lines 317 and 430. In general, you will want to file a tax return even if none of the above applies. You could, for example, claim a GST/HST credit even with no income. Now, if you receive any income at all, you are going to have to pay taxes, which means you are obligated to file a tax return. If sufficient taxes were deducted from your paycheque, you are still obligated to file a tax return. However, you will not have to pay penalties if you file late, even if you file very late, at least not until the CRA sends you a request to file. But be aware, you won't likely be able to tell if you owe the CRA money until you do your taxes, and if you do end up owing, there are substantial penalties for filing late. In general, I'd strongly advise filing your tax return in almost all circumstances.",
"title": ""
}
] |
fiqa
|
e08068d215aed8e383996b23eed87f1c
|
US taxes and refunding/returning payment
|
[
{
"docid": "a99219ec5f173dad91f95b2103fdc1f1",
"text": "Get the worker put it in writing, and deduct it in December under constructive receipt rules. The fact that you're getting the actual cash in January isn't significant as long as you've secured the payment. Verify this with a tax adviser, but that's what I would do.",
"title": ""
}
] |
[
{
"docid": "c4f1e4c220a509fa2efa7fcb2010e100",
"text": "If you get 1099-G for state tax refund, you need to declare it as income only if you took deduction on state taxes in the prior year. I.e.: if you took standard deductions - you don't need to declare the refund as income. If you did itemize, you have to declare the refund as income, and deduct the taxes paid last year on your schedule A. If this year you're not itemizing - you lost the tax benefit. If it was not clear from my answer - the taxes paid and the refund received are unrelated. The fact that you paid tax and received refund in the same year doesn't make them in any way related, even if both refer to the same taxable year.",
"title": ""
},
{
"docid": "ccbc20034b475506fd64d7f07b3989cf",
"text": "There are a few methods you can use to estimate your taxes. On the results screen, the app will show you your estimated tax burden, your estimated withholding for the year, and your estimated overpayment/refund or shortfall/tax due. It may also have recommendations for you on how to adjust your W-4 (although, this late in the year, I think it only tells you to come back next year to reevaluate). Your state might also have income tax, and if you are curious about that, you can find the state tax form and estimate your state income tax as well. My guess is that you will be getting a refund this year, as you have only worked half of the year. But that is only a guess.",
"title": ""
},
{
"docid": "2a31ba428664731ef088f2af47e4f0f2",
"text": "\"For 60 days I got $2,958. What you have is how much it would cost you over a 3 month period ASSUMING that ALL of your receivables were paid at 30 days rather than 60. But I'm confused by \"\"our return is 3.6%\"\", is that the interest you're charging the customer for paying late? Would the invoice be 3.6/30 n-60? I'm not sure\"",
"title": ""
},
{
"docid": "cbd973278d0d79e5ae0189919e011c82",
"text": "Assuming you're talking about your United States Federal Income Tax payment or refund, the IRS has a website for checking the status of your refund. You can check that site to see where your refund is. If it doesn't show up on that site (assuming you provide all the information correctly), then you may want to check TurboTax to verify it was correctly submitted. I believe that site also works for payments. If not, Turbotax's page is not refund-specific (though I suspect it is just an API call to the same tool).",
"title": ""
},
{
"docid": "1577e21bf4ad3391c4631197ed104014",
"text": "I would say when starting with Gnucash to start with the level of granularity you are comfortable with while sticking to the double entry bookkeeping practices. So going through each one: Refund for Parking Pass. Assuming you treat the Parking Pass as a sunk cost, i.e. an Expense account, its just a negative entry in the Expense account which turns into a positive one in your Bank account. Yes it may look weird, and if you don't like it you can always 'pay from Equity' the prior month, or your Bank Account if you're backfilling old statements. Selling physical items. If you sold it on eBay and the value is high enough you'll get tax forms indicating you've earned x. Even if its small or not done via eBay, treat it the same way and create a 'Personal Items/Goods' Income account to track all of it. So the money you get in your Bank account would have come from there. Found jacket money would be an Equity entry, either Opening Balances into Cash or Bank account. Remember you are treating Equity / Opening Balances as the state before you started recording every transaction so both the value going into Assets (Banks,Stock,Mutual Funds) and Liabilities (Mortgage, Student Debt, Credit Card Debt) originate from there.",
"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": "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": "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": ""
},
{
"docid": "213bfb9c6674440fc32a5733bc2f5010",
"text": "\"It's not usually apparent to the average consumer, but there's actually two stages to collecting a payment, and two ways to undo it. The particular combination that occurs may lead to long refund times, on top of any human delays (like Ben Miller's answer addresses). When you pay with a credit card, it is typically only authorized - the issuing bank says \"\"I'm setting this money aside for this transaction\"\", but no money actually changes hands. You'll typically see this on your statement as a \"\"pending\"\" charge. Only later, in a process called \"\"settlement\"\", does your bank actually send money to the merchant's bank. Typically, this process starts the same day that the authorization happens (at close of business), but it may take a few days to complete. In the case of an ecommerce transaction, the merchant may not be allowed to start it until they ship whatever you ordered. On the flip side, a given transaction can be voided off or money can be sent back to your card. In the first case, the transaction will just disappear altogether; in the second, it may disappear or you may see both the payment and the refund on your statement. Voids can be as fast as an authorization, but once a transaction has started settlement, it can't be voided any more. Sending money back (a \"\"refund\"\") goes through the same settlement process as above, and can take just as long. So, to specifically apply that to your question: You get the SMS when the transaction is authorized, even though no money has yet moved. The refund money won't show up until several days after someone indicates that it should happen, and there's no \"\"reverse authorize\"\" operation to let you or your bank know that it's coming.\"",
"title": ""
},
{
"docid": "ced010cfdc8221b082ad29aab4e22266",
"text": "When you initiate a chargeback, the merchant has the right to dispute the chargeback. If they can provide proof that the purchase actually took place, the chargeback will fail. We don't know all the details of your situation, of course, but it appears from what you have said that the tax chain probably has documents that you signed agreeing to the charges. They prepared your return (even if they did a poor job), and so from their perspective, they have decided that they deserve to be paid. Whether or not they did a good job is a matter of opinion, of course; their position might be that they did it correctly, and the second business did it poorly. The chargeback is a powerful tool, but it is not a magic button that makes a charge disappear. If the merchant can show that a sale did indeed take place and show that the proper amount was charged, the chargeback will fail. For a service, it isn't enough usually to simply state that you were unsatisfied; if you received the service at the agreed-upon price, the charge is valid. A chargeback is sort of a nuclear option when it comes to getting a refund. There are negative ramifications and expenses every time a merchant gets a chargeback (even if they ultimately win), and so often they will be willing to work something out to avoid a chargeback. You should go to the merchant first, if you can, and ask for a refund before considering the chargeback option. If you file a chargeback without even giving them the opportunity to work it out with you, the merchant will usually want to fight back.",
"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": "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": "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": "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": "b7d128909830fd51e9b2d000fcd9108e",
"text": "\"This is a legal issue, or possibly an ethical issue, and not really a finance issue. And I am not a lawyer. But for what it's worth: Did you sign a written contract with H&R Block? If so, then the terms of that contract would govern. If you signed a contract saying that you agree to file your taxes through them if they meet such-and-such conditions, and they met these conditions, then you are legally obligated. If there was no written contract, then I think any court would take the conversation between you and H&R Block as an oral contract. If H&R Block said, basically, \"\"Okay, we'll calculate what we think your taxes are, and if we come up with something better than what you had before, then you agree to file your taxes through us\"\", and you said \"\"Oh, okay\"\", then that's an oral contract. You agreed to their conditions. Legally, oral contracts are just as binding as written contracts. The only difference is that it is difficult to prove exactly what was said. If you really did agree to these conditions, I suppose you could lie and say you didn't and then try to convince a court that they are the ones lying. Obvious ethical problems there. There are also implied contracts. If HRB's advertising or paperwork says that you're agreeing to file through them if they meet the conditions, I thing that a court would likely rule that you implicitly agreed to their terms by doing the review. In any case, when you go to some place like HRB mostly what you are paying for is their knowledge and expertise. So if they give you the benefit of their expertise -- they tell you how to reduce your taxes -- and then you don't pay them, that seems rather unethical to me. The situation is muddied by the fact that you paid $100 for the review. Is that paying for the basic information, the \"\"tax tip\"\", and paying for them to file is then a contract for additional work? Under some circumstances I'd say yes, that's additional work and thus an additional contract, so in the absence of a contract obligating me, I don't have to do that. The catch in this case is that at that point they must have already pretty much taken all your information and filled out all the forms. All that's left is to press the \"\"send\"\" button and submit the return, right?\"",
"title": ""
}
] |
fiqa
|
22e8d75e8f09e49a043377b5d85d4bb5
|
Are there any issues with registering an LLC in a foreign state?
|
[
{
"docid": "21f92446dfd048a11ba3713e97294bf3",
"text": "\"No, there are no issues. When you form the corp in DE, you pick a business there to serve as your \"\"agent\"\" (essentially someone who knows to get in contact with you). The \"\"agent\"\" will notify you about taxes and any mail you get, but besides the fee they charge you for being the agent, you should file all the taxes directly with DE (franchise tax is easy to file on the web) instead of going through the agent and paying a surcharge. When your LLC files taxes, you'll do so in DE and then the LLC will issue you a federal and state K1. You'll file taxes where you reside and use the federal K1, but I think you might have to file DE state taxes (unsure about this part, feel free to edit or comment and I'll correct).\"",
"title": ""
},
{
"docid": "d1248d34c35232a822321595a0794fa0",
"text": "This is an older question but I thought I'd give the correct response for anyone else that might look. Yes there definitely could be issues. You can form in friendly states such as Delaware and Nevada without having a physical location in the state but you can't run a business from another state without having to 'qualify' to do business in that State. To give a bit more clarification. Lets say you open a Delaware LLC. But you answer the phone when it rings on your New York phone and money comes into your New York bank account and your suppliers and vendors all use your New York address to send invoices and correspondence. Well you can pretty much count that you fall into the definition of doing business in New York and expected to pay New York taxes and qualify to do business in the state. The solution would be to set up your business to truly 'operate' from the state you would rather be in.",
"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": "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": "3ea78da0a95244e4bea035ad458a8bed",
"text": "\"If you \"\"do business\"\" in a state, then you need to register your business in that state. I suspect that you have a misconception of what it means to \"\"do business\"\" in a state. If you are a 1-man shop, then you very likely are not doing business in any state except the one state where you work. Examples of when you are doing business in a state include having an office in the state or having employees in the state. Merely selling something to a client in that state is NOT enough to be doing business in the state. Each state is different, but unless you are doing something that is, in some sense, close to having an office or an employee in a state, then you have nothing to worry about. For example, if you regularly travel to a state to do work for a client then it is possible that you could be doing business in that state (I have no idea if that would be sufficient in any state). But if you are just working out of your basement running a website, then you are only doing business in your own state.\"",
"title": ""
},
{
"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": "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": "cdc978733ecef9524e88934a89493d01",
"text": "No state pay assess for Delaware partnerships that work out of express No business permit required for Delaware enterprises not working in Delaware, No legacy impose on stock held by non-occupants of Delaware llc, No state deals charge on elusive individual property, Shares of stock possessed by non-inhabitant outsiders are not subject to Delaware charges. The condition of Delaware llc offers various decisions for speed of documenting, contingent upon your necessities and spending plan. There is no extra charge for standard services, in spite of the fact that it might destroy your understanding sitting tight for them to process it.",
"title": ""
},
{
"docid": "85c6ec404d0a5d71afa21f1097d00d83",
"text": "You need to file foreign qualification in any State you have physical presence in (warehouses, offices, etc). Including the State from which you personally operate (if it is not Nevada). You don't need to register in States to which you ship products.",
"title": ""
},
{
"docid": "8d1c8ee4f91e90e058ada70f661e8d5a",
"text": "\"In Europe you can get a huge problem with the financial authorities if you do deals with a daughter company which are not done \"\"at arm's length\"\", e.g. by inflated fees or costs. (This can be classified as fraud, tax evasion or worse. Obviously, usually details are so complex that almost all investigations end with a deal, but in principle you can get into a lot of trouble.) This is apparently not a problem in the US, though.\"",
"title": ""
},
{
"docid": "2973a018811353f6171f1d53d9ea2499",
"text": "If it was me I would want to go with the state I am moving too. I'm not familiar with business law too much as I'm only a law student right now but I would guess it's a safer bet. There might be local state laws that could apply. If there are not any local regulations then they should still know all of the national regulations just the same.",
"title": ""
},
{
"docid": "c63354cffacbd0dd596f593b412164d3",
"text": "\"There are very few circumstances where forming an out of state entity is beneficial, but a website is within these circumstances in certain instances. Businesses with no physical operations do not need to care what jurisdiction they are registered in: your home state, a better united state or non-united state. The \"\"limited liability\"\" does it's job. If you are storing inventory or purchasing offices to compliment your online business, you need to register in the state those are located in. An online business is an example of a business with no physical presence. All states want you to register your LLC in the state that you live in, but this is where you need to read that state's laws. What are the consequences of not registering? There might be none, there might be many. In New York, for example, there are no consequences for not registering (and registering in new york - especially the city - is likely the most expensive in the USA). If your LLC needs to represent itself in court, New York provides retroactive foreign registrations and business licenses. So basically, despite saying that you need to pay over $1000 to form your LLC \"\"or else\"\", the reality is that you get the local limited liability protection in courts whenever you actually need it. Check your local state laws, but more times than not it is analogous to asking a barber if you need a haircut, the representative is always going to say \"\"yes, you do\"\" while the law, and associated case law, reveals that you don't. The federal government doesn't care what state your form an LLC or partnership in. Banks don't care what state you form an LLC or partnership in. The United States post office doesn't care. Making an app? The Apple iTunes store doesn't care. So that covers all the applicable authorities you need to consider. Now just go with the cheapest. In the US alone there are 50 states and several territories, all with their own fee structures, so you just have to do your research. Despite conflicting with another answer, Wyoming is still relevant, because it is cheap and has a mature system and laws around business entity formation. http://www.incorp.com has agents in every state, but there are registered agents everywhere, you can even call the Secretary of State in each state for a list of registered agents. Get an employer ID number yourself after the business entity is formed, it takes less than 5 minutes. All of this is also contingent on how your LLC or partnership distributes funds. If your LLC is not acting like a pass through entity to you and your partner,but instead holding its own profits like a corporation, then again none of this matters. You need to form it within the state you live and do foreign registrations in states where it has any physical presence, as it has becomes its own tax person in those states. This is relevant because you said you were trying to do something with a friend.\"",
"title": ""
},
{
"docid": "5d49be8bdd30cd9265b968cbead2e2d6",
"text": "\"Yes, you can use a post office box as a business address but not as an address for your registered agent. Using your home address as the address of the business does not, to my knowledge, create a legal issue if you are sued. Your home is a personal asset, not one that belongs to the LLC, so it would not be subject to seizure or forfeiture as part of any lawsuit against the business itself. Every state requires an LLC or corporation to have a \"\"registered agent\"\" which, according to Wikipedia is: In United States business law, a registered agent, also known as a resident agent or statutory agent, is a business or individual designated to receive service of process (SOP) when a business entity is a party in a legal action such as a lawsuit or summons. You can be your own registered agent if you like. Companies that provide incorporation services will usually offer to act as a registered agent for your new business for a fee, but it's really no big deal. I would recommend that you go to the NoLo.com web site section about forming an LLC and take a look at their resources to help you through this. You need to do it right, so understand what you need to do for the state you live in, and take your time. If you rush it and screw it up then you might regret it later. I hope this helps Good luck!\"",
"title": ""
},
{
"docid": "f1d749c90d303dc35e09b27a73a39ee8",
"text": "There's no reason to keep the California LLC if you don't intend to do business in California. If you'll have sales in California then you'll need to keep it and file taxes accordingly for those sales. You can just as easily form a new LLC in Washington state and even keep the same name (if it's available in Washington, that is). Keeping the California LLC just creates paperwork for whatever regulatory filings California will require for no purpose at all. As for your question about it looking suspicious that you just set up an LLC and then are shutting it down, nobody's going to care, to be honest. As with your situation, plans change, so it isn't really all that unusual. If you're concerned the government will say something, don't.",
"title": ""
},
{
"docid": "f32db279288b5726c22159492891b6d4",
"text": "\"Since as you say, an LLC is a pass-through entity, you will be making income in the U.S. when you sell to U.S. customers. And so you will need to file the appropriate personal tax forms in the US. As well as potentially in one or more States. The US government does not register LLCs. The various States do. So you'll be dealing with Oregon, Wisconsin, Wyoming, one of those for the LLC registration. You will also need to have a registered agent in the State. That is a big deal since the entire point of forming an LLC is to add a liability shield. You would lose the liability shield by not maintaining the business formalities. Generally nations aim to tax income made in their nation, and many decline to tax income that you've already paid taxes on in another nation. A key exception: If money is taxed by the U.S. it may also be taxed by one of the States. Two States won't tax the same dollar. Registering an LLC in one State does not mean you'll pay state taxes there. Generally States tax income made in their State. It's common to have a Wyoming LLC that never pays a penny of tax in Wyoming. Officially, an LLC doing business in a State it did not form in, must register in that State as a \"\"foreign LLC\"\" even though it's still in the USA. The fee is usually the same as for a domestic LLC. \"\"Doing business\"\" means something more than incidental sales, it means having a presence specifically in the State somehow. It gets complicated quick. If you are thinking of working in someone's app ecosystem like the Apple Store, Google Play, Steam etc. Obviously they want their developers coding, not wrestling with legalities, so some of them make a priority out of clearing and simplifying legal nuisances for you. Find out what they do for you.\"",
"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": "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": ""
}
] |
fiqa
|
af61b1410a5ae63d4b31bb8cdd437738
|
Do I need to pay taxes in India?
|
[
{
"docid": "ce5a9711abf6e3faffd048d87194ae7e",
"text": "\"Do I need to pay taxes in India in this scenario? For India tax purposes, you would still qualify as \"\"Resident Indian\"\". As a resident Indian you have to pay taxes on Global income. It is not relevant whether you transfer the money back to India to keep in US. The income is generated and taxable. Depending on your contract, presumably you are working as a free lance; certain expenses are allowed to be deducted from your income, for example if you purchase equipment to help carry out the work, stay / entertainment costs, etc. Consult a professional CA who should be able to guide you on what is eligible and what is not. The balance along with your other income will be taxed as per tax brackets. There is exemption for certain category of workers, mostly in entertainment industry where such income is not taxable. This does not apply to your case.\"",
"title": ""
}
] |
[
{
"docid": "fa74f9772e688a7311fdd7a91a3b9504",
"text": "Are there any IRS regulations I should be aware of when sending money to India? None. As long as you are following the standard banking channels. You are also declaring all the accounts held outside US in your tax returns. FBAR. Is it legal to do so? Yes it is legal. do I have to declare how much I am investing and pay extra taxes? As part of FBAR. Income earned [including interest, capital gains, etc] needs to be paid in India [there are some exemptions for example interest on NRE accounts] as well as in the US [relief can be claimed under DTAA Indian version here and US here]. So if you already have paid taxes on salary and say transfer USD 10K to India; there is no tax on this 10K. If this 10K generates an income of say 2K; this 2K is taxable as per normal classification and rules.",
"title": ""
},
{
"docid": "b2fe749117d26a925f975f93acdcd93a",
"text": "\"For the financial year 1 April 2014 to 31 March 2015, as you have [or will be] spent more than 182 days outside India, you would be treated as \"\"Non-Resident\"\" [NRI] for tax purposes. If you are NRI Show my Kuwaiti Income in my Income Tax Return? Pay any tax on the money that I am sending to savings bank accounts in India You need not Pay Tax on your income outside India. i.e. there is no tax obligation created. It cannot be declared in Tax Returns. However any interest you earn on the money deposited in India would be subject to taxes. Will my wife have to show the income and/or pay the income tax on the money that I am sending to her savings bank accounts? There is no Income to you wife [Income is something you earn] and hence its out of scope from Income Tax act. It would fall under gift tax rules. As per Gift Tax one can transfer unlimited funds between close relatives. Hence there is No tax. It would be better if you open an NRO/NRE account and transfer funds into that account\"",
"title": ""
},
{
"docid": "810d4842bdc077402c3b1d10247a8e7f",
"text": "If your gross income is only $3000, then you don't need to file: https://www.irs.gov/pub/irs-pdf/p501.pdf That said, pay careful attention to: https://www.irs.gov/individuals/international-taxpayers/taxpayers-living-abroad You should be reporting ALL income, without regard to WHERE you earned it, on your US taxes. Not doing so could indeed get you in trouble if you are audited. Your level of worry depends on how much of the tax law you are willing to dodge, and how lucky you feel.",
"title": ""
},
{
"docid": "c7a7211d3254b4fafbb25b85d82701e5",
"text": "Your federal taxes in US include the tax which Indian government wants back from you under the treaty with US government. Some countries have treaty with US where all the money person earns in US can be reclaimed at the end of the financial year i.e no money goes to the country of citizenship. However, Indian citizens working in US are not liable for 100% reclaim on their federal tax.",
"title": ""
},
{
"docid": "a1c681097b242be2638848c973e56188",
"text": "\"Yes, it will be taxable in the US. You will report your worldwide income, and will be able to take credit for any Indian tax paid. However, the portions that are tax-free in India will be fully taxable for you in the US. Keep in mind, in addition to the taxes, the FBAR requirements and the FATCA forms you may need to be filing as well. Failure to file (regardless of if any tax is actually owed) will trigger a $10K penalty. I suggest you have a US-licensed EA/CPA (tax adviser) to help you with your US tax return. Keep in mind that a \"\"regular\"\" American tax preparer knows very little of the specific requirements for foreigners and may land you in trouble. Similarly, the \"\"off-the-shelf\"\" tax software or tax preparation outlets (like H&R Block) are ill-suited for foreigners in the US. It would be best to talk to a EA/CPA who is also familiar with Indian financial terms and Indo-US tax treaty.\"",
"title": ""
},
{
"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": "b257a8eb2e106d7e598a1f6efa62a3ca",
"text": "AFAIU, you don't need pay any taxes for you amount in NRE account since this amount is already taxed. I also think, you do not need to pay taxes on the interest earned on NRE account. However, you need to disclose the amount in your Indian Bank(s), if at any point of time, exceed $10K (When converted from INR to $). This is FBAR. Sending money to non-NRE account would come under Indian Tax scanner. For instance, if your parents use that money to pay EMIs or any huge purchase, then that might cause an issue. Most of the times, these type of purchases go unnoticed. However, the party who is taking money, may ask for source, especially if its a financial institution or Govt bodies. Also, for non-NRE accounts, you need to pay taxes and on interest earned. Hope this helps!",
"title": ""
},
{
"docid": "f9e79e98b9e15e397c3b4d83efcfb487",
"text": "Since you have already paid tax to the Government of Uk, no tax will be levied on the money earned outside India. As per the Income tax act, any income received in India in all cases is taxable irrespective of the tax payer's residential status. A NRI after receiving income from outside India cannot be taxed as income because of remittance of such income to India.",
"title": ""
},
{
"docid": "cde13f0b12dc6f641de0bca6c94269cf",
"text": "If the 'gratuity' is a payment from your previous Indian company made when you left them, then the US tax system will treat it exactly the same as wages paid by your previous company. Whether or not you need to pay taxes on your wages and gratuity will depend on whether your are considered resident in the US for tax purposes for this financial year. It is likely that you will be. Assuming you are, then the US requires that you pay tax on all income, wherever it is earned in the world. You will need to fill in a tax return and declare both your gratuity and your wages in India for that year. India and the US have a 'double tax agreement', which means essentially that you won't be taxed twice if you have already paid tax on the gratuity and wages in India. But you do have to declare them.",
"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": "bc721c0bcdd095c130ae3e926407beb0",
"text": "Companies in the US will take care of paying a portion of your required income tax on your behalf based on some paperwork you fill out when starting work. However, it is up to you as an individual to submit an income tax return. This is used to ensure that you did not end up under or overpaying based on what your company did on your behalf and any other circumstances that may impact your actual tax owed. In my experience, the process is similar in Europe. I think anyone who has a family, a house or investments in Europe would need to file an income tax return as that is when things start to get complex.",
"title": ""
},
{
"docid": "24dc4877cb805249a4eae606cff85213",
"text": "\"Yes. You do have to pay taxes in the UK as well but it depends on how much you have already been taxed in the US. http://taxaid.org.uk/situations/migrant-workernew-to-the-uk/income-from-abroad-arising-basis-vs-remittance-basis Say, you have to pay 20% tax in the UK for your earnings here. You ARE required to pay the same percentage on your foreign income as well. Now, if your \"\"home\"\" country already taxed you at 10% (for the sake of example), then you only need to pay the \"\"remaining\"\" 10% in the UK. However, the tax law in the UK does allow you to choose between \"\"arising\"\" basis and \"\"remittance\"\" basis on your income from the country you are domiciled in. What I have explained above is based on when income \"\"arises.\"\" But the laws are complicated, and you are almost always better off by paying it on \"\"arising\"\" basis.\"",
"title": ""
},
{
"docid": "53df92d1e3b246173ac053efc87fa9d4",
"text": "Yes, you have to file a tax return in Canada. Non residents that have earned employment income in Canada are required to file a Canadian personal income tax return. Usually, your employer will have deducted sufficient taxes from your pay-cheques, resulting in a tax refund upon filing your Canadian tax return. You will also receive a tax credit on your US tax return for taxes paid in Canada.",
"title": ""
},
{
"docid": "8675e5ed784b05da168b42c094e4005b",
"text": "I believe I have to pay taxes in US since it is a US broker. No, not at all. The fact that the broker is a US broker has nothing to do with your tax liabilities. You should update the banks and the broker with your change of status submitting form W8-BEN to them. Consult a tax professional proficient with Indo-US tax treaty as to what you should put in part II. The broker might withhold some of your income and remit it as taxes to the IRS based on what you put in W8-BEN and the type of income, but you can have it refunded (if it exceeds your liability) by submitting a tax return (form 1040-NR). You do have to pay tax in India, based on the Indian tax law, for your profits in the US. Consult with an Indian tax accountant on that. If I'm not mistaken, there are also currency transfer restrictions in India that you should be aware of.",
"title": ""
},
{
"docid": "6341471c7098f5436215875b698036b3",
"text": "For the financial year 1 April 2014 to 31 March 2015 as you have / will be spending more than 182 days outside of India, you are Non-Resident from tax point of view. For the period 1 April 2014 to Aug 2014, any salary / income you have earned in India is taxable and tax need to be paid. For the period Aug 2014 to 31 March 2015 the income you have earned in Saudi is not taxable in India. You can transfer money to India or keep in Saudi, it has no effect on the taxes. Any interest income you earn, or rental income you earn, or any other source of income in India is taxable. You would need to file returns accordingly. An NRE Accounts allows you to transfer funds out of India without any questions. So if you intend at some point in time in future to move funds out of India [say settling down in Saudi or UK or US etc] it is advisable to have NRE account. If you are sure you don't want to transfer funds out of India, you should open an NRO account.",
"title": ""
}
] |
fiqa
|
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