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0ca791271c63ff8ae4c7511f0caf5e31
|
Does earning as a non-resident remote worker on an American account make people liable for U.S taxes?
|
[
{
"docid": "8364441010f6737d8fc4c32e0f598d57",
"text": "The United States taxes nonresident aliens on two types of income: First, a nonresident alien who is engaged in a trade or business in the United States is taxed on income that is effectively connected with that trade or business. Second, certain types of U.S.-source payments are subject to income tax withholding. The determination of when a nonresident alien is engaged in a U.S. trade or business is highly fact-specific and complex. However, keeping assets in a U.S. bank account should not be treated as a U.S. trade or business. A nonresident alien's interest income is generally subject to U.S. federal income tax withholding at a rate of 30 percent under Section 1441 of the tax code. Interest on bank deposits, however, benefit from an exception under Section 1441(c)(10), so long as that interest is not effectively connected with a U.S. trade or business. Even though no tax needs to be withheld on interest on a bank deposit, the bank should still report that interest each year to the IRS on Form 1042-S. The IRS can then send that information to the tax authority in Brazil. Please keep in mind that state and local tax rules are all different, and whether interest on the bank deposits is subject to state or local tax will depend on which state the bank is in. Also, the United States does tax nonresident aliens on wages paid from a U.S. company, if those wages are treated as U.S.-source income. Generally, wages are U.S.-source income if the employee provides services while physically present in the United States. There are a few exceptions to this rule, but they depend on the amount of wages and other factors that are specific to the employee's situation. This is an area where you should really consult with a U.S. tax advisor before the employment starts. Maybe your company will pay for it?",
"title": ""
}
] |
[
{
"docid": "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": "f431551f93c52c2a7b9bb42ffb59e679",
"text": "Tax liability in US: You would need to determine if you are a resident alien or non resident alien. Resident alien are taxed normally as per US citizens. For the annual remuneration you have quoted it would be in the range of 25%. Refer http://www.moneychimp.com/features/tax_brackets.htm To determine if you are resident alien or non resident alien, you need to be present for certain period in US. There is also an exemption even if you meet this you can still be treated as non resident alien if your tax home is outside US [India in this case] Refer to the link for details to determine your category, the durations are for number of days in financial year, hence it matters when you are in US and the exact durations. http://www.irs.gov/taxtopics/tc851.html Also note that if you are assessed as resident alien, even the income from India will be taxed in US unless you declare there is no income in India. Tax liability in India: The tax liability in India would be depending on your NRI status. This again is tied to the financial year and the number of days you are in country. While the year you are going out of India you need to be away for atleast 183 days for you be considred are NRI. So if you are treated as Indian resident, you would have to pay tax in India on entire income. In the worst case, depending on the period you travel and the dates you travel, you could get classified as citizen in US as well as India and have to pay tax at both places. India and US do not have a dual tax avoidance treaty for individuals. Its there for certain category like small business and certain professions like teacher, research etc.",
"title": ""
},
{
"docid": "da1ec09d990e5aacc6bcce5c151bb629",
"text": "If you earn money while in the US or from renting your US house - you have to pay taxes to the US on that income. If you become US tax resident - you have to pay US taxes on your worldwide income. Whether or not you're in the US illegally or receiving income while breaking any other law - doesn't matter at all.",
"title": ""
},
{
"docid": "e11cdeaad788b7bd62e45704991b7ad2",
"text": "Plenty of retired people do stay in the US for longer than 60 days and don't pay taxes. In this IRS document 60 days stay appears to be the test for having a 'substantial presence' in the US, which is part of the test for determining residency. However the following is also written: Even if you meet the substantial presence test, you can be treated as a nonresident alien if you are present in the United States for fewer than 183 days during the current calendar year, you maintain a tax home in a foreign country during the year, and you have a closer connection to that country than to the United States. In other words, if your property in the US is not your main one, you pay tax in another country, and you stay there less than half the year, you should be treated as a non-resident (I am not a lawyer and this is not advice). This IRS webpage describes the tax situation of nonresident aliens. As I understand it, if you are not engaged in any kind of business in the US and have no income from US sources then you do not have to file a tax return. You should also look into the subject of double tax agreements. If your home country has one, and you pay taxes there, you probably won't need to pay extra tax to the US. But again, don't take my word for it.",
"title": ""
},
{
"docid": "1821d489190ca4b39fdd9e8a953ad6d1",
"text": "\"What do you mean by \"\"Canadian income\"\"? Was it income paid to you as wages for the job you did in the US? Or rental/interest income in Canada? If the former - then it doesn't go to NEC, it goes to the main part of the return. If the latter - it doesn't appear on your NR return at all. Yes, it is to validate your residency status. It has no other effect on your taxes.\"",
"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": "e0dff6557d816cb0977e9108b3513731",
"text": "Do I need to declare it to IRS? The account? No. You do need to file a form W8-BEN with the bank though and make sure you maintain the correct information on it (it has your address there, so if you move - update it). Your account may be frozen until the form is provided, especially if it has activity on it. The 2-nd and 3-rd scenario would come as a result of some freelancing activity done while I am out of the US (definitely would qualify for Non-Resident Alien status). This you do have to report to the IRS. I'm guessing the payer is in the US, and would not know that you're a foreigner. In this case you're liable for taxes (if the payer knows you're a foreigner - they must withhold the taxes on your behalf). The payer will report payments to the IRS, so you have to submit your own tax return for a match. If there's activity on your account that might be suspicious, it will be reported to money laundering unit in the US Treasury Department, that may come after you through the treaties the US might have with your home country (tax treaty, extradition treaty, etc).",
"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": "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": "da92a0adce54a5e7edecdfd67283f870",
"text": "Canada doesn't tax non-residents on income earned/incurred outside of Canada. So, your sister should start with this page to determine the residency status. If she is indeed determined to be non-resident - she should look here to see her obligations. If all she earns she earns outside of Canada - her obligations will be very little, if at all. This is similar to almost any other country in the world, with the notable exception of the United States of America. US citizens are taxed regardless of their residency status, everywhere in the world on worldwide income (unless tax treaty says otherwise).",
"title": ""
},
{
"docid": "b810befb58360be5aa7896bc91f112ce",
"text": "Transferring money you own from one place to another pretty much never has tax implications. It might have other implications, including requirement to report it. Being a US citizen has tax implications, including the requirement to file US tax forms for the rest of eternity.",
"title": ""
},
{
"docid": "af46f9f222b03afc70c4c684572cf355",
"text": "\"For Non-Resident filers, New York taxes New York-sourced income. That includes: real or tangible personal property located in New York State (including certain gains or losses from the sale or exchange of an interest in an entity that owns real property in New York State); services performed in New York State; a business, trade, profession, or occupation carried on in New York State; and a New York S corporation in which you are a shareholder (including installment income from an IRC 453 transaction). There are some exclusions as well. It is all covered in the instructions to form IT-203. However, keep in mind that \"\"filing\"\" as non-resident doesn't make you non-resident. If you spend 184 days or more in New York State, and you have a place to stay there - you are resident. See definitions here. Even if you don't actually live there and consider yourself a CT resident.\"",
"title": ""
},
{
"docid": "96503ad0863d795ad2f0d81405f41c31",
"text": "75k is short of the 'highly compensated' category. Most US citizens in that pay range would consider paying someone to do their taxes as an unnecessary expense. Tax shelters usually don't come into play for this level of income. However, there are certain things which provide deductions. Some things that make it better to pay someone: Use the free online tax forms to sandbox your returns. If all you're concerned about is ensuring you pay your taxes correctly, this is the most cost efficient route. If you want to minimize your tax burden, consult with a CPA. Be sure to get one who is familiar with resident aliens from your country and the relevant tax treaties. The estimate you're looking at may be the withholding, of which you may be eligible for a refund for some part of that withholding. Tax treaties likely make sure that you get credit on each side for the money paid in the other. For example, as a US citizen, if I go to Europe and work and pay taxes there, I can deduct the taxes paid in Europe from my tax burden in the US. If I've already paid more to the EU than I would have paid on the same amount earned in the US, then my tax burden in the US is zero. By the same token, if I have not paid up to my US burden, then I owe the balance to the US. But this is way better than paying taxes to your home country and to the host country where you earned the money.",
"title": ""
},
{
"docid": "38ce8853a945c37b03874890c7effc66",
"text": "It essentially works the same. Some states don't have any income taxes at all (like Florida or Wyoming), some only tax income derived in the state, and some tax worldwide income (like New York or California), similarly to the Federal income taxes. However, if you're living abroad (i.e.: you're a citizen or resident of a foreign country and you live there), you're not considered resident by most of the states (check with your state for specific definitions) for most, if not all, the time of your residency abroad. In such case - you don't pay state taxes, only Federal. You have to remember that foreign income exclusion doesn't apply to the income from your 401k, so you pay the taxes as if you're in the US. You can not use foreign taxes credit as well (but depending on the tax treaty with the country you're moving to, your 401k income might not be taxable there). In some cases you may end up with double taxation: US will tax your 401k income as you're a US citizen and the income is derived from the US sources, and the foreign country will tax the income based on its own laws. This is not a tax advice, 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": "94c39b345a0eb3878d903cb081e28da2",
"text": "Are you planning to not pay taxes? Any time someone has income in the U.S., it is subject to U.S. taxes. You must file tax returns (and pay taxes if necessary) if you have income above a certain threshold, regardless of whether you're not authorized to work or not. If you plan to intentionally not pay taxes, then that's a whole other matter from working without authorization. Working without authorization is an immigration issue. It probably violates the conditions of your status, which will make you to automatically lose your status. That may or may not affect when you want to want to visit, immigrate to, or get other immigration benefits in the U.S. in the future; and at worst you may be deported. It's a complicated topic, but not really relevant for this site.",
"title": ""
}
] |
fiqa
|
d41dc9d66a317a7dc75e61645a5d53fc
|
How do owners in a partnership earn income?
|
[
{
"docid": "1efec9c5402e5dac2668c94341a54eff",
"text": "The partnership agrees to pay each of you salaries and/or bonuses, typically based on the net profit brought in. You do have a legal document setting out the rules for this partnership, right? If so, the exact answer should be in there. If you don't or it isn't, you need a lawyer yesterday.",
"title": ""
},
{
"docid": "3f088acfd5fcc4198a9c0950ba1711b3",
"text": "\"If you business is incorporated, it's up to the two of you how to do it. Typically, you will have the company write cheques (or make transfers, whatever) to each of the humans: If you want to say that each of you gets a salary of 80% of the revenue you bring in, and then tweak things with bonuses, you can. If one of you is contributing more to marketing and awareness and less to revenue, then you may prefer to pay you each the same even though the revenue you bring are different. It's up to you - it's quite literally your business. When you're not incorporated, then for tax purposes you split the income and the expenses according to your ownership share. If that doesn't seem fair to you, then a partnership is probably not as useful to you as being incorporated. In general, it's better to be incorporated once you're past any initial phase in which the business is losing money for tax purposes (acquiring depreciable assets) and the partners have taxable income from elsewhere (day jobs, or at least income from the earlier part of the year before starting the business.) I would recommend that the \"\"partnership\"\" phase of the business be very short. Get incorporated and get a shareholder agreement.\"",
"title": ""
}
] |
[
{
"docid": "312a0b54124fbd8649a9f9aecd4b5b30",
"text": "I second (or fifth?) the answers of the other users in that this should have been foreseen and discussed prior to entering the partnership. But to offer a potential solution: If the mortgage company allows you to assume the whole mortgage (big if) you could buy the other partner out. To determine what a fair buyout would be, take the current value of the house less the remaining mortgage to get the current equity. Half that is each partner's current gain (or potentially loss), and could be considered a fair buyout. At this point the partner realizes any gains made in the last 5 years, and from now on the whole house (and any future gains or losses) will be yours. Alternatively your partner could remain a full partner (if s/he so desires) until the house sells. You would see the house as a separate business, split the cost as you have, and you would pay fair market rent each month (half of which would come back to you). A third option would be to refinance the house, with you as a sole mortgage holder. To factor in how much your partner should receive out of the transaction, you can take his/her current equity and subtract half of the costs associated with the refi. I would also recommend both of you seek out the help of a real estate lawyer at this point to help you draft an agreement. It sounds like you're still on good terms, so you could see a lawyer together; this would be helpful because they should know all the things you should look out for in a situation like this. Good luck!",
"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": ""
},
{
"docid": "bcb6523e22504bb769d3d28f4eef746a",
"text": "It took me a while to understand the concept, so I'll break it down as best as I can. There are three parts to the accounting equation: Assets = Liabilities + Owner's Equity We'll look at this in two ways 1. As a business owner you invest (say) 10,000 USD into your bank. The entry would be: Debit: Assets: Cash for 10,000 Credit: Owner's Equity: Contributions for 10,000 In this case, you have assets of 10,000 from your deposit, but it is due to owner contributions and not business transactions. Another example (say a sale): Debit: Assets: Cash for 10,000 Credit: Owner's Equity: Sales for 10,000 Debit: Assets: Cash for 10,000 Credit: Liabilities: Deposits for 10,000 Deposits are a banking term to reflect a bank's obligation to return the amount on demand (though the bank has free reign with it, see fractional banking) You will NEVER debit or credit your bank as it is assumed you will be storing your money there, note bank reconciliation. Hope this helps, comment with any more questions.",
"title": ""
},
{
"docid": "c7c01e532e699f91dbf3b441b7b6a50c",
"text": "It may clarify your thinking if you look at this as two transactions: I am an Australian so I cannot comment on US tax laws but this is how the Australian Tax Office would view the transaction. By thinking this way you can allocate the risks correctly, Partnership Tenancy Two things should be clear - you will need a good accountant and a good lawyer. I do not agree that there is a conflict of interest in the lawyer acting for both parties - his role should only be for advice and to document what the two of you agree to. If you end up in dispute, then you need two lawyers.",
"title": ""
},
{
"docid": "094dc968198d3380a7c3aa6a75e77ac5",
"text": "\"A tax return is a document you sign and file with the government to self-report your tax obligations. A tax refund is the payment you receive from the government if your payments into the tax system exceeded your obligations. As others have mentioned, if an extra $2K in income generated $5K in taxes, chances are your return was prepared incorrectly. The selection of an appropriate entity type for your business depends a lot on what you expect to see over the next several years in terms of income and expenses, and the extent to which you want or need to pay for fringe benefits or make pretax retirement contributions from your business income. There are four basic flavors of entity which are available to you: Sole proprietorship. This is the simplest option in terms of tax reporting and paperwork required for ongoing operations. Your net (gross minus expenses) income is added to your wage income and you'll pay tax on the total. If your wage income is less than approximately $100K, you'll also owe self-employment tax of approximately 15% in addition to income tax on your business income. If your business runs at a loss, you can deduct the loss from your other income in calculating your taxable income, though you won't be able to run at a loss indefinitely. You are liable for all of the debts and obligations of the business to the extent of all of your personal assets. Partnership. You will need at least two participants (humans or entities) to form a partnership. Individual items of income and expense are identified on a partnership tax return, and each partner's proportionate share is then reported on the individual partners' tax returns. General partners (who actively participate in the business) also must pay self-employment tax on their earnings below approximately $100K. Each general partner is responsible for all of the debts and obligations of the business to the extent of their personal assets. A general partnership can be created informally or with an oral agreement although that's not a good idea. Corporation. Business entities can be taxed as \"\"S\"\" or \"\"C\"\" corporations. Either way, the corporation is created by filing articles of incorporation with a state government (doesn't have to be the state where you live) and corporations are typically required to file yearly entity statements with the state where they were formed as well as all states where they do business. Shareholders are only liable for the debts and obligations of the corporation to the extent of their investment in the corporation. An \"\"S\"\" corporation files an information-only return similar to a partnership which reports items of income and expense, but those items are actually taken into account on the individual tax returns of the shareholders. If an \"\"S\"\" corporation runs at a loss, the losses are deductible against the shareholders' other income. A \"\"C\"\" corporation files a tax return more similar to an individual's. A C corporation calculates and pays its own tax at the corporate level. Payments from the C corporation to individuals are typically taxable as wages (from a tax point of view, it's the same as having a second job) or as dividends, depending on how and why the payments are made. (If they're in exchange for effort and work, they're probably wages - if they're payments of business profits to the business owners, they're probably dividends.) If a C corporation runs at a loss, the loss is not deductible against the shareholders' other income. Fringe benefits such as health insurance for business owners are not deductible as business expenses on the business returns for S corps, partnerships, or sole proprietorships. C corporations can deduct expenses for providing fringe benefits. LLCs don't have a predefined tax treatment - the members or managers of the LLC choose, when the LLC is formed, if they would like to be taxed as a partnership, an S corporation, or as a C corporation. If an LLC is owned by a single person, it can be considered a \"\"disregarded entity\"\" and treated for tax purposes as a sole proprietorship. This option is not available if the LLC has multiple owners. The asset protection provided by the use of an entity depends quite a bit on the source of the claim. If a creditor/plaintiff has a claim based on a contract signed on behalf of the entity, then they likely will not be able to \"\"pierce the veil\"\" and collect the entity's debts from the individual owners. On the other hand, if a creditor/plaintiff has a claim based on negligence or another tort-like action (such as sexual harassment), then it's very likely that the individual(s) involved will also be sued as individuals, which takes away a lot of the effectiveness of the purported asset protection. The entity-based asset protection is also often unavailable even for contract claims because sophisticated creditors (like banks and landlords) will often insist the the business owners sign a personal guarantee putting their own assets at risk in the event that the business fails to honor its obligations. There's no particular type of entity which will allow you to entirely avoid tax. Most tax planning revolves around characterizing income and expense items in the most favorable ways possible, or around controlling the timing of the appearance of those items on the tax return.\"",
"title": ""
},
{
"docid": "6a031b0e2a2e86e808859aba8e276338",
"text": "\"Since you seem to be the expert.... riddle me this: What is the breakdown of entrepreneurs and how they operate by: LLCs, C-Corp, S-Corp, Sole-proprietor? Is it: 15/35/20/30? You basically need to know what this breakdown is in order to claim that \"\"most entrepreneurs pay hardly any income tax at all.\"\" So... what is it, and please cite your source.\"",
"title": ""
},
{
"docid": "e0d5da798f1bcf302989d8b0d01cc12e",
"text": "\"Private equity firms have a unique structure: The general partners (GP's) of the firm create funds and manage the investments of those funds. Limited partners (LP's) contribute the capital to the funds, pay fees to the GP's, and then make money when the funds' assets grow. I believe the article is saying that ultra high net worth individuals participate in the real estate market by hiring someone to act as a general partner and manage the real estate assets. They and their friends contribute the cash and get shares in the resulting fund. Usually this GP/LP structure is used when the funds purchase or invest in private companies, which is why it is referred to as \"\"private equity structure,\"\" but the same structure can be used to purchase and manage pools of real estate or any other investment asset.\"",
"title": ""
},
{
"docid": "5bd09952da9656e90f8489cbf956102a",
"text": "There is no right and wrong answer to this question. What you and your business partner perceive as Fair is the best way to split the ownership of the new venture. First, regarding the two issues you have raised: Capital Contributions: The fact that you are contributing 90% of initial capital does not necessarily translate to 90% of equity. In my opinion, what is fair is that you transform your contributions into a loan for the company. The securitization of your contribution into a loan will make it easier to calculate your fair contribution and also compensate you for your risk by choosing whatever combination of interest income and equity you see suitable. For example, you might decide to split the company in half and consider your contributions a loan with 20%, 50% or 200% annual interest. Salary: It is common that co-founders of start-ups forgo their wages at the start of the company. I do not recommend that this forgone salary be compensated through equity because it is impossible to determine the suitable amount of equity to be paid. I suggest the translation of forgone wages into loans or preferred stocks in similar fashion to capital contribution Also, consider the following in deciding the best way to allocate equity between both of you and your partner Whose idea was it? Talk with you business partner how both of you value the inventor of the concept. In general, execution is more important but talking about how you both feel about it is good. Full-time vs. part-time: A person who works full time at the new venture should have more equity than the partner who is only a part-time helper. Control: It is important to talk about control and decision making of the company. You can separate the control and decision making of important decisions from ownership. You can also check the following article about this topic at http://www.forbes.com/sites/dailymuse/2012/04/05/what-every-founder-needs-to-know-about-equity/#726842f3668a",
"title": ""
},
{
"docid": "b34732078e878961b77988a504a7cad3",
"text": "I am probably not the most qualified person, but I have taken some managerial finance courses. If company B is still in tact, has its own documentation saying it's a company and all that, the only income company A would need to claim from B is that which B profited and the profits were given to A. I see the above scenario similar to owning an asset, like a bond, which pays you interest. If the companies are merged, most definitely but that probably wasn't your question.",
"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": "3f362f2a26d64930517bf1086d30cb0e",
"text": "\"You will need to set up accounts in your chart of accounts for each of the partners. These are equity accounts where you can track your contributions, share of the profits and losses, and distributions. You're going to have to go back into the beginning years to get this right. I'm not sure what you mean by a \"\"Built-in function\"\". All the accounting software I'm familiar with requires data entry of some kind. You need to post your contributions and distributions to the correct accounts, and close properly at year end. You were indeed legally considered a partnership as soon as you started a for-profit business venture together. It's a bug in the legal system that a written partnership agreement is not necessarily required - you can form a partnership unknowingly. (BTW, a partnership actually is pretty far off from a sole proprietorship, legally and taxwise - the change from one person to two is major. It's the change from two to three or four or more that's incremental ;) I know you said you didn't want to consult a professional, but I have to say that I think it's worth the money to get your books set up by someone who has experience and can show you how to do it. And get a separate bank account for the partnership, if you haven't done so already. And check with your state to see if there are any requirements regarding partnerships. Hope this helps, 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": "35ed04b2dace3b1397574bc03dc60917",
"text": "\"As for the letting the \"\"wise\"\" people only make the decisions, I guess that would be a bit odd in the long run. Especially when you get more experienced or when you don't agree with their decision. What you could do, is make an agreement that always 3/4 (+/-) of the partners must agree with an investment. This promotes your involvement in the investments and it will also make the debate about where to invest more alive, fun and educational). As for the taxes I can't give you any good advice as I don't know how tax / business stuff works in the US. Here in The Netherlands we have several business forms that each have their own tax savings. The savings mostly depend on the amount of money that is involved. Some forms are better for small earnings (80k or less), other forms only get interesting with large amounts of money (100k or more). Apart from the tax savings, there could also be some legal / technical reasons to choose a specific form. Again, I don't know the situation in your country, so maybe some other folks can help. A final tip if your also doing this for fun, try to use this investment company to learn from. This might come in handy later.\"",
"title": ""
},
{
"docid": "9cdaa61a2421adce6c2d2297ddbb8541",
"text": "\"I write software myself and was involved in a couple of start ups. One failed, another was wildly successful, but I did not receive much in compensation. The former I received stock, but since it failed, it was worthless anyway. There should be compensation for your time in addition to equity in a company. Any agreement needs be in writing. In the later situation I was told to expect about a 17%/year bonus, but nothing could be guaranteed. Translation: \"\"It will never happen.\"\" It didn't, but I meet my lovely wife there so I have that for a bonus. Agreements need to address the bad things can happen. What happens if one of you is no longer interested in continuing? What happens if one of you die, or addicted to something? What happens if one of you gets thrown in jail or disabled? Right now you are full of optimism and hope, but bad things happen. Cover those things while you still like each other. It might be enough to have a good salary, and some stock options. You man not be interested in running the day to day business. Most of all good luck, I wish you all the best!\"",
"title": ""
},
{
"docid": "78c952d76aedc67d4db240bed6ffd2c9",
"text": "\"So your goal is to sell out? If I'm understanding correctly. I say that without connotation. Since you want stock and the ability to be bought. Your partner sounds like he wants reinvest back into the company and make it grow. If you want \"\"profit\"\", I'd say find a different partner. Again you personally can be profitable while still maintaining the company with a nonprofit status. Gotta pay employees.\"",
"title": ""
},
{
"docid": "482c834cf825bd1f559658f73a034ad2",
"text": "In a word: budgeting. In order to have money left over at the end of the month, you need to be intentional about how you spend it. That is all a budget is: a plan for spending your money. Few people have the discipline and abundance of income necessary to just wing it and not overspend. By making a plan at home ahead of time, you can decide how much you will spend on food, entertainment, etc, and ensure you have enough money left over for things like rent/mortgage and utility bills, and still have enough for longer-term savings goals like a car purchase or retirement. If you don't have a plan, it's simply not reasonable to expect yourself to know if you have enough money for a Venti cup as you drive past the Starbucks. A good plan will allow you to spend on things that are important to you while ensuring that you have enough to meet your obligations and long-term goals. Another thing a budget will do for you is highlight where your problem is. If your problem is that you are spending too much money on luxuries, the budget will show you that. It might also reveal to you that your rent is too high, or your energy consumption is too great. On the other hand, you might realize after budgeting that your spending is reasonable, but your income is too low. In that case, you should focus on spending more of your time working or looking for a better paying job.",
"title": ""
}
] |
fiqa
|
156a9c7dadea6e9c97f6b3f32322d851
|
How do I determine how much rent I could charge for a property or location?
|
[
{
"docid": "2a2b55a5b15ae9da01086b439d1e60e2",
"text": "This may not be entirely scientific, but as a landlord my usual approach is just to do a search for rental properties on Craigslist for comparable homes in the neighborhood. There are all kinds of formulas professional property managers use, but in the end these listings are the ones you are going to be competing with for tenants. Also, it isn't super accurate, but online services like Zillow.com can give you some numbers for rental houses that include those that aren't currently advertising.",
"title": ""
},
{
"docid": "111f2cea2838b7e7938d9cf6d03b3316",
"text": "Check out the property websites to get an idea of how much, the property in question, could yield as rent. Most give a range and you can get a good idea of it. Just one example from zoopla. Likewise you can refer mouseprice or rightmove and get yourself an idea. Property websites do a lot of data crunching to do an update, but their figure is only a guide.",
"title": ""
},
{
"docid": "890056f8fb9d2dfe4955991a31f346f2",
"text": "Zoopla may not always accurately reflect the market price. Your best bet is to get a quote for local registered) letting agents. That way you know you are close to the real market value. Also, these quotes may come into handy if you have a mortgage on the property. Since most banks will require you to provide proof of rent figures you are projecting by sending in official quotes. Hope this helps..",
"title": ""
},
{
"docid": "5eac825aebabb072caecfe162adb3f10",
"text": "A good way to find the rates of rental prices is to look what other landlords are charging for similar properties in your area. The proper investigation of property rental market should be make by using property listing platforms. The other method is online rent calculator. There are a bunch of them on the Web. Briefly speaking, the rent calculator uses industry data to look at the typical rent you might expect from a property in a post code. Remember that the rent you charge has to be at least equal to the cost of your monthly mortgage bill. When you’re deciding what to charge, don’t forget to factor in an estimate of repair costs, taxes, homeowners association fees and insurance.",
"title": ""
}
] |
[
{
"docid": "94c395ca34857ffc3bbd9d17f8bc8c7d",
"text": "I think you are trying to figure out what will be a break-even rental rate for you, so that then you can decide whether renting at current market rates is worth it for you. This is tricky to determine because future valuations are uncertain. You can make rough estimates though. The most uncertain component is likely to be capital appreciation or depreciation (increase or decrease in the value of your property). This is usually a relatively large number (significant to the calculation). The value is uncertain because it depends on predictions of the housing market. Future interest rates or economic conditions will likely play a major role in dictating the future value of your home. Obviously there are numerous other costs to consider such as maintenance, tax and insurance some of which may be via escrow and included in your mortgage payment. Largest uncertainty in terms of income are the level of rent and occupancy rate. The former is reasonably predictable, the latter less so. Would advise you make a spreadsheet and list them all out with margins of error to get some idea. The absolute amount you are paying on the mortgage is a red herring similar to when car dealers ask you what payment you can afford. That's not what's relevant. What's relevant is the Net Present Value of ALL the payments in relation to what you are getting in return. Note that one issue with assessing your cost of capital is, what's your opportunity cost. ie. if you didn't have the money tied up in real estate, what could you be earning with it elsewhere? This is not really part of the cost of capital, but it's something to consider. Also note that the total monthly payment for the mortgage is not useful to your calculations because a significant chunk of the payment will likely be to pay down principal and as such represents no real cost to you (its really just a transfer - reducing your bank balance but increasing your equity in the home). The interest portion is a real cost to you.",
"title": ""
},
{
"docid": "41dd51abeb0546afc075005553f9f663",
"text": "> The paper, which is yet to be published, found that a 10 percent increase in Airbnb listings can create an average 0.39 percent increase in rents and an average 0.64 percent increase in home prices, the Wall Street Journal reported. In the long term, rents and property value go up at the same rate. So if they're saying that one is almost double the other, the margin of error here could be very large.",
"title": ""
},
{
"docid": "5c0f2b4fc4ce9963d3f9157bd0fd33a4",
"text": "I would suggest the use of a management company to handle a rental property. They will take care of things like collecting rent, coordinating repairs and all the little things that come up when dealing with a renters. They typically charge a percentage of the rent or a flat fee, so make sure you include that in your rent calculation. You take a little bit of a financial hit, but save a lot of head aches - especially if you decide to acquire multiple properties in the future.",
"title": ""
},
{
"docid": "d0255b03e9b26ac7886bc7db1ca7075a",
"text": "\"I agree with Joe Taxpayer that a lot of details are missing to really evaluate it as an investment... for context, I own a few investment properties including a 'small' 10+ unit apartment complex. My answer might be more than you really want/need, (it kind of turned into Real Estate Investing 101), but to be fair you're really asking 3 different questions here: your headline asks \"\"how effective are Condo/Hotel developments as investments?\"\" An answer to that is... sometimes, very. These are a way for you-the investor-to get higher rents per sq. ft. as an owner, and for the hotel to limit its risks and access additional development funding. By your description, it sounds like this particular company is taking a substantial cut of rents. I don't know this property segment specifically, but I can give you my insight for longer-term apartment rentals... the numbers are the same at heart. The other two questions you're implying are \"\"How effective is THIS condo/hotel development?\"\" and \"\"Should you buy into it?\"\" If you have the funds and the financial wherewithal to honestly consider this, then I am sure that you don't need your hand held for the investment pros/cons warnings of the last question. But let me give you some of my insight as far as the way to evaluate an investment property, and a few other questions you might ask yourself before you make the decision to buy or perhaps to invest somewhere else. The finance side of real estate can be simple, or complicated. It sounds like you have a good start evaluating it, but here's what I would do: Start with figuring out how much revenue you will actually 'see': Gross Potential Income: 365 days x Average Rent for the Room = GPI (minus) Vacancy... you'll have to figure this out... you'll actually do the math as (Vacancy Rate %) x GPI (equals) Effective Potential Income = EPI Then find out how much you will actually pocket at the end of the day as operating income: Take EPI (minus) Operating expenses ... Utilities ... Maintenace ... HOA ... Marketing if you do this yourself (minus) Management Expenses ... 40% of EPI ... any other 'fees' they may charge if you manage it yourself. ... Extra tax help? (minus) Debt Service ... Mortgage payment ... include Insurances (property, PMI, etc) == Net Operating Income (NOI) Now NOI (minus) Taxes == Net Income Net Income (add back) Depreciation (add back) sometimes Mortgage Interest == After-tax Cash Flows There are two \"\"quickie\"\" numbers real estate investors can spout off. One is the NOI, the other is the Cap Rate. In order to answer \"\"How effective is THIS development?\"\" you'll have to run the numbers yourself and decide. The NOI will be based on any assumptions you choose to make for vacancy rates, actual revenue from hotel room bookings, etc. But it will show you how much you should bring in before taxes each year. If you divide the NOI by the asking price of your unit (and then multiply by 100), you'll get the \"\"Cap Rate\"\". This is a rough estimate of the rate of return you can expect for your unit... if you buy in. If you come back and say \"\"well I found out it has a XX% cap rate\"\", we won't really be qualified to help you out. Well established mega investment properties (think shopping centers, office buildings, etc.) can be as low as 3-5 cap rates, and as high as 10-12. The more risky the property, the higher your return should be. But if it's something you like, and the chance to make a 6% return feels right, then that's your choice. Or if you have something like a 15% cap rate... that's not necessarily outstanding given the level of risk (uncertain vacancies) involved in a hotel. Some other questions you should ask yourself include: How much competition is there in the area for short-term lodging? This could drive vacancies up or down... and rents up or down as well How 'liquid' will the property (room) be as an asset? If you can just break even on operating expense, then it might still make sense as an investment if you think that it might appreciate in value AND you would be able to sell the unit to someone else. How much experience does this property management company have... (a) in general, (b) running hotels, and (c) running these kinds of condo-hotel combination projects? I would be especially interested in what exactly you're getting in return for paying them 40% of every booking. Seasonality? This will play into Joe Taxpayer's question about Vacancy Rates. Your profile says you're from TX... which hints that you probably aren't looking at a condo on ski slopes or anything, but if you're looking at something that's a spring break-esque destination, then you might still have a great run of high o during March/April/May/June, but be nearly empty during October/November/December. I hope that helps. There is plenty of room to make a more \"\"exact\"\" model of what your cash flows might look like, but that will be based on assumptions and research you're probably not making at this time.\"",
"title": ""
},
{
"docid": "8b35e3d4c7fd82ef6e3ecfe25533e072",
"text": "I am a realtor. For our rental business, we use a service that offers a background check. It costs us about $25, and it is passed along in the form of an application fee. I suggest you contact a local real estate agent who you know does rentals. Have a conversation about what you are doing, and see if they will help process the application for you, for a fee of course. If you are truly concerned about your safety (The text you wrote can either read as true concern or sarcasm. Maybe we are really in a wild country?) It's worth even a couple hundred bucks to screen out a potential bad roommate.",
"title": ""
},
{
"docid": "88d77a3dd754aefdfb72b4a009b8c5e4",
"text": "\"Started to post this as a comment, but I think it's actually a legitimate answer: Running a rental property is neither speculation nor investment, but a business, just as if you were renting cars or tools or anything else. That puts it in an entirely different category. The property may gain or lose value, but you don't know which or how much until you're ready to terminate the business... so, like your own house, it really isn't a liquid asset; it's closer to being inventory. Meanwhile, like inventory, you need to \"\"restock\"\" it on a fairly regular basis by maintaining it, finding tenants, and so on. And how much it returns depends strongly on how much effort you put into it in terms of selecting the right location and product in the first place, and in how you market yourself against all the other businesses offering near-equivalent product, and how you differentiate the product, and so on. I think approaching it from that angle -- deciding whether you really want to be a business owner or keep all your money in more abstract investments, then deciding what businesses are interesting to you and running the numbers to see what they're likely to return as income, THEN making up your mind whether real estate is the winner from that group -- is likely to produce better decisions. Among other things, it helps you remember to focus on ALL the costs of the business. When doing the math, don't forget that income from the business is taxed at income rates, not investment rates. And don't forget that you're making a bet on the future of that neighborhood as well as the future of that house; changes in demographics or housing stock or business climate could all affect what rents you can charge as well as the value of the property, and not necessarily in the same direction. It may absolutely be the right place to put some of your money. It may not. Explore all the possible outcomes before making the bet, and decide whether you're willing to do the work needed to influence which ones are more likely.\"",
"title": ""
},
{
"docid": "812decada0ce722f70af249736022a63",
"text": "If it was me, I would consider selling both properties. Unless of course your renters from the first house are very, very good; and you have a good handy man in the area. Managing real estate from a distance is tricky, and $400 per month is not a lot of wiggle room. You would be taking on a lot of risk with only 40K in the bank, a 200K salary, three mortgages (one likely a jumbo) and a student loan. Yea, if it was me I would sell both.",
"title": ""
},
{
"docid": "06724d4ce9c252533e99ccea2c29973c",
"text": "If I is the initial deposit, P the periodic deposit, r the rent per period, n the number of periods, and F the final value, than we can combine two formulas into one to get the following answer: F = I*(1+r)n + P*[(1+r)n-1]/r In this case, you get V = 1000*(1.05)20 + 100*[(1.05)20-1]/0.05 = 5959.89 USD. Note that the actual final value may be lower because of rounding errors.",
"title": ""
},
{
"docid": "2cccca030cc96b7911b60c0c88ca9027",
"text": "The rent will be determined by: the rent being charged on similar houses near you. Your mortgage and other costs (very unfortunately!) have no bearing, at all, on the price you will get.",
"title": ""
},
{
"docid": "257c70a9f954a96a7657e3761647efee",
"text": "Think carefully about the added expenses. It may still make sense, but it probably won't be as cheap as you are thinking. In addition to the mortgage and property taxes, there is also insurance and building maintenance and repairs. Appliances, carpets, and roofs need to be replaced periodically. Depending on the area of the country there is lawn maintenance and now removal. You need to make sure you can cover the expenses if you are without a tenant for 6 months or longer. When tenants change, there is usually some cleaning and painting that needs to be done. You can deduct the mortgage interest and property taxes on your part of the building. You need to claim any rent as income, but can deduct the other part of the mortgage interest and taxes as an expense. You can also deduct building maintenance and repairs on the rental portion of the building. Some improvements need to be depreciated over time (5-27 years). You also need to depreciate the cost of the rental portion of the building. This basically means that you get a deduction each year, but lower the cost basis of the building so you owe more capital gains taxes when you sell. If you do this, I would get a professional to do your taxes at least the first year. Its not hard once you see it done, but there are a lot of details and complications that you want to get right.",
"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": "ef064ae7e68cf30d539f1a7323d318ef",
"text": "\"In addition to Alex B's excellent overview, I'd like to add a few more bits of advice. First of all, one term you should know is \"\"commercial real estate\"\" - which is precisely what this is. There is a business element, but it is strictly (and almost entirely) intertwined to the underlying real estate, which makes this a special category of business which is generally considered simply \"\"commercial real estate\"\" (just like office buildings, shopping malls, etc). All real estate and businesses value are based on alternatives - what other options are there? In appraisal, these are generally called \"\"comparables\"\". A professional appraiser is generally available for commercial real estate of this type. While a full, official commercial appraisal can run into the thousands, many/most (all?) appraisers are willing to sell you a simplified version of their service, which can be called a \"\"letter of opinion\"\" and can help you get an idea for the market price (what other similar commercial properties are running for). A loan company would strictly require this, but if you are thinking of an all cash or form of seller-financing this would technically be optional. Your best bet is to read about some of what is involved in commercial real estate appraisal and evaluation, and you may even want to speak with commercial loan officers - even if you don't know that you want to get a loan to acquire the property! It's their job to help inform you about what is required and what they look for, so they can be a potential resource beyond your own research as well. With this said, the only way to estimate value (and, conveniently, the best way) is to look at other properties! And by \"\"others\"\", I mean that you should really not consider buying absolutely anything until you've viewed at least 6-10 other options in some depth - and you probably want to double or triple that number if you are looking to make this the last big business transaction of your life. If you don't you'll be relying on little more than dumb luck to carry you through - which in this area of business, you don't want to do because the dollar amounts and liabilities involved can bankrupt you in no time flat. With that general advice out of the way, here's a tiny nutshell version of valuation of commercial real estate. There are a few key parts involved in commercial real estate: land, improvements (buildings, docks, stuff like that), income, and wages. Land: the value of the land is based upon what you could sell it for, as-is. That is to say - who else might want it? This alone has many important factors, such as zoning laws, the neighborhood (including your neighbors), water/utilities, pacts on the land (someone may have insisted the land not be paved into a parking lot, or really anything like that), alternative uses (could you put a golf course on it, or is the land suitable for a big building or farming?), etc. And is this in a growing area, where you might hope the value will increase over the next decade, or decrease, or basically stay flat (and possibly cause losses compared to inflation)? Improvements: anything on the land is both an asset and a liability. It's an asset because it could add to the value of the land, but it might also reduce the land value if it interferes with alternate land uses. It's a liability, both in the legal sense and in that it requires maintenance. If you want to rent them out, especially, that means concern about any foundations involved, termites, roofs, sewage/septic tanks, utilities that are your responsibility (pipes, poles, wires), as well as any sort of ac/heating you may have, docks, and so on. These things are rarely free and absolutely can eat you alive. Income: Ah, the best part, the constant influx of cash! But wait, is it a constant influx? Some businesses are purely seasonal (summer only, winter only), some are year-round but have peak times, and others don't really have a \"\"peak\"\" to speak of. If you are renting, are there issues collecting, or with people over-staying? How about damage, making a mess, getting rowdy and disturbing others? Regardless, there is obviously some income, and this is usually the most dangerous part of the equation. I say \"\"dangerous\"\", because people absolutely lie like dogs on this part, all the time. It's easy to cook the books, assuming they even attempt to keep proper books in the first place! Businesses of this form often have a lot of cash business that's easy to hide (from Uncle Sam, or sometimes even the owners themselves if there are employees involved) - and fake! And some people are just shoddy bookkeepers and the info is just wrong. But, there will clearly be some kind of yearly income involved. What does this matter? Well...how much is there? How much is tied to the owners (personal friends do business and they will leave if the ownership/management changes)? In commercial real estate the income will be calculated for a fiscal year, and then there is something called a \"\"multiple\"\", which is market dependent. Let's say the whole place takes in $100k in rent a year. As part of buying this business, you are buying not just assets, but expected future income. In some commercial areas the multiple is as little as .5 to 2 - which means that the going rate is about 6-24 months worth of income, as part of the purchase price. So with 100k rent a year, that means 50k-200k of the purchase price is attributable to the income of the business. And if business is half of what you thought it would be? That means the net value of the whole enterprise decreases by 25k-100k - on top of the reduced income every year you own it! Income provides cash flow, which should pay all the expenses (cleaning up from wind storms, replacing windows that are broken, hauling off trash, replacing a well that ran dry), and then the extra that remains is positive cash flow. If you take out a loan, then ideally the cash flow would also pay that completely so long as you don't have any big unexpected expenses in the year - and still have some left over for yourself. Wages: Well, that money doesn't collect itself! There's sales, keeping the books, collecting the rent, performing maintenance, customer service, cleaning, paying the bills, keeping the insurance people happy, handling emergencies, and everything else involved with running the business. Someone is going to do it, and the biggest error people make here is not to put any value on their time - and to make it so they can never afford to take a vacation again! Pay yourself, and give yourself the flexibility to pay others when you can't (or don't want) to do it all yourselves. So, what's the point of all this? How do you actually make any money? In two ways: 1) selling the whole thing later, and 2) cash flow. For 1, it's important that you not be in a situation where you are betting that in the future there will be a \"\"person richer, and dumber, than I am now\"\". If the current owner wanted 2 million, then 1 mil, then less, over multiple years...this suggests either he is delusional about the value of his place (and most property owners are), or that its actually hard to find a buyer for such a business. You are going to want to make sure you understand why that is, because most of the value of real estate is...well, in the real estate itself! For 2, you need cash coming in that's considerably more than the cost of running the place. Also, cash flow can strongly change the value of the business for resale (depending on the multiple, this can make a huge difference or prevent you from selling the thing at all). You mentioned you want to put in more cabins, more marketing/sales efforts, etc. That's great, but first, that would mean added investment beyond the purchase price. Is it legally and physically practical to add more cabins, and what is their current utilization rate? If they are only renting 10% of their current capacity, increasing capacity may be premature. This will also vary through the year, so you may find there is a problem with being sold out sometimes...but only for a small percentage of the time. Which means you'll be adding buildings only to have them used for a fraction of the year, which will be very hard to make a profit from. If cash flow is good, ideally even being enough to cover a loan payment to help cover the purchase price (and remember that commercial real estate loans are much smaller loan-to-value ratios than in residential real estate), there is one final barrier to making money: the damn non-regular maintenance! Roofs, wells, and wooden walls all have a sad tendency to cost you nothing right up until the point they cost you $30k+ on a single day. Is there enough cash flow to make these sort of certainties (and if you plan to be there for years, they are a certainty) not put you in the poor house? This was rather long, but I hope this overview helps you appreciate all that you'll need to look into and be cautious of during your future en-devour! Commercial real estate is generally costly and high-risk, but also can be high reward. You'll need to compare many opportunities before you can get a \"\"feel\"\" for what is a good deal and what is a terrible one. You'll need to consider many factors, such as resale value and cash flow/income (which they will have to tell you and you can assume is not true, due to ignorance or malice), as well as maintenance and liabilities, before you can begin to really estimate the value of an enterprise of this sort. There are people who can help you, like appraisers and commercial brokers, but ultimately you'll need to do a lot of research and comparisons yourself to help you make a good decision. Finally, there is no very simple method for evaluating commercial real estate value. You need a variety of information, and you must be skeptical of what you are told because of the very large sums of money involved. It is doable (lots of people do it), but you must take care and do your due diligence so you don't get bankrupted by a single bad purchase.\"",
"title": ""
},
{
"docid": "af327322384aaf1fb4808ed9b4adc50d",
"text": "Another option is to look at the rent difference between where you need to be and where the others would rent, without considering your job. You pay the difference, which is due to your unique requirements, and split the remainder equally.",
"title": ""
},
{
"docid": "954c914af462d734b6ed93d025097d44",
"text": "Something that you omitted in your question is whether this prospective purchase is a single family residence (SFR) or some other type of real property. If this is an investment purchase as you say it is, then the only real way to tell it is worth what you are willing to pay is based on the income it produces. Once you complete an income and expense analysis you can get a CAP rate to compare it to other like properties in the area. This is the best way to value income/investment real estate. If you don't know what a CAP rate is and how to calculate it, then you might be over your head a bit. Another important aspect to consider is the reason to pay all cash for this property. The main reason to invest in real estate is to use the banks money as leverage. Again, you should understand these kinds of basic real estate concepts before you dive into purchasing investment property.",
"title": ""
},
{
"docid": "1018d9e6c1f99370dcffd85bd768bfaf",
"text": "To your secondary question: Appropriately consider all estimated numbers involved with keeping the house compared to your closest estimate of what the home could sell for. Weigh out the pros and cons yourself as a stranger will not be able to 100% appreciate what you value and dislike. Remember to include insurances, taxes, HOA(s), and the actual mortgage payment. Depending on how you also plan to rent out the property, include whichever utilities you intend to cover (if any). There will also be costs for property management and upkeep as things will break overtime and tenants will not hesitate to get you (or your management) to fix them, either way that means you are paying. I would also keep in mind while homes typically appreciate in value there is a higher risk with tenants for the value to depreciate to damages and poor upkeep. There are increased legal risks to renting, so be sure you have properly vetted whichever management you are going with. In extreme circumstances you also could be required to retain an attorney to defend yourself again litigation because whichever management team you hire will most likely defend themselves and not include you in that umbrella. My family lives in the LA area as well and a judge refused to throw out an obvious frivolous suit when my parents attempted to rent out a house. The possible renters after signing the main paperwork never showed to finish a second set of documents for renting. Parents immediately declined to rent to these people as they missed something so important without any explanation and they sued claiming racism, emotional damages, and some other really crazy things despite my parents never having met them (first meeting was between property management and renters only). Personally and professionally, I would only suggest renting our the place and not selling if you can turn a profit after all the above mentioned costs. If renters are only paying to keep the property in the black you have yourself a non-earning asset which WILL be damaged over time and require repairs which will come out of your pocket. Also, while the property is unoccupied you also must remember it is not earning at that time. Much of this may sound obvious, overcautious, etc... I simply wish to provide my family's experience to help you in making your decisions. Best of luck with your endeavor. Edit: Also, you will be required to report all earned rental income on your taxes. They will fall under the Schedule E and possibly K-1 area. I would strongly recommend consulting with an actual accountant about the impacts to you.",
"title": ""
}
] |
fiqa
|
d603d7dde3aa7adbc08c0bfa4224d6ac
|
I'm 13. Can I buy supplies at a pet store without a parent/adult present?
|
[
{
"docid": "8ee780dd1a6ef64417b8857af8fb420c",
"text": "As long as your money is green and you aren't buying something prohibited to youngsters (booze, cigarettes, etc.) I doubt any store is going to refuse your business.",
"title": ""
},
{
"docid": "f511c3683463a075319f88336ebbc10e",
"text": "My 12 year old routinely makes purchases with cash or a gift card (either a store's card or a Visa/Amex card that acts like credit card but is a gift card) and has never had an issue. Clothing, make-up, bath items, etc. I understand in some areas you need to be over 18 to buy certain markers, spraypaint, or other propellant items that can be fatal if inhaled. I see little issue with buying pet supplies, but it wouldn't hurt to have your sibling nearby if you think there will be an issue.",
"title": ""
},
{
"docid": "3e5dfe901f951e979eebb46132d0d825",
"text": "I had a cat growing up--most of the time I was the one who got her supplies. It was never an issue.",
"title": ""
},
{
"docid": "78c3c281bc43a0ee800cf0ed3fa83b0c",
"text": "Perhaps a technicality, but minors do not have the legal capacity to bind a contract. Making a purchase from a store is a contract. I'm not a lawyer and there may be case law to the contrary or that creates exceptions, but my understanding is that purchases made by a minor may be void if later challenged. JohnFx's answer is true from a practical sense. But if you get turned away at a store, understand that they're probably just being careful to avoid headaches later.",
"title": ""
}
] |
[
{
"docid": "f0f03a51195c7a3e05197239cbb59377",
"text": "Buy something from Nordstrom, then return it and ask for cash. They may ask for your ID. Nordstrom's return policies are very lax and they will almost always give cash when asked for, sometimes even if you don't have the receipt.",
"title": ""
},
{
"docid": "b6ae13b427fba3e6897c8e3f4b0c6203",
"text": "We were members at costco, but decided not to renew. Meat was a definite cost savings, and laundry detergent as well. Diapers used to be a huge savings, but loblaws seems to be pricing things better now. We did by a bunch of Kirkland brand diapers and wipes before the membership ended. The problem we had was that you just get too much stuff - you save a bunch on that laundry detergent that you buy once every two years, or the chicken you have in your freezer forever. In Canada, the basic membership is $55 and we could not be certain we made that back, nor that we weren't over consuming as we walked the aisles. I have heard that the more expensive membership ($100) which gives you 2% back on purchases is a good way to gauge your usage and determine if it is worth it. It also costs nothing to give it a try - their policy is a full refund at any time, so in theory you could go in on your 364th day and get a refund.",
"title": ""
},
{
"docid": "5589bc8e25b7c082c1dc2a97a160968e",
"text": "The last thing I bought there was a barbecue for my dad. I needed two accessories that were on display with it as well, but they didn't carry them instore. So I had to go online to order them... from two different places. And one of the part numbers I was given didn't match anything, so I had to call on the phone and spend about 15 minutes with someone figuring it out. It was a less than stellar experience.",
"title": ""
},
{
"docid": "ca9af8ae6ec87a10fb8408774f33346f",
"text": "I don't know if BJ's or Costco is by you, but sharing a membership can make sense. Not just the annual fee, but splitting certain items that are just too big. The 20 pack of batteries, the 30lb sacks of potatoes, etc. Anything you look at and realize you won't use it before it goes bad or have no place to store it. Size is one objection I hear regarding the warehouse stores and a splitting buddy can help. To James' point - Yes, kids are cruel. We live in a nice area, and I pride myself on driving the cheapest car on the street. In the last two years, two neighbors (of 8 of us on this cul-de-sac) have downsized. They needed to take the difference and use it for college tuition. I explained to my daughter, when you see a kid in a big house, you don't know two key things: how big their mortgage is, and how much have they saved for college/retirement.",
"title": ""
},
{
"docid": "f4f12914ef0cf724285d65f57f5c65ee",
"text": "I shop at Sears because of the enormous section of hardware parts. You can find almost any bolt,screw,connector, etc for any DIY project. Nothing online compares to being able to go to the hardware section only with an idea and piecing it together with the parts at hand. Also, I'm 35.",
"title": ""
},
{
"docid": "9d1a7f1944348ed00e9367a5fcb54ad7",
"text": "\"Well, I'd probably need to buy a lot more [Tide](http://nymag.com/news/features/tide-detergent-drugs-2013-1) to hide any purchases I don't want Uncle Sam to know about (not just drugs, either - When's the last time you paid sales tax at a yard sale?). Other than that, I doubt it would matter much. 99.9% of my financial transactions are *already* on plastic, and I regularly keep the same \"\"emergency $20 bill\"\" in my wallet for months at a time.\"",
"title": ""
},
{
"docid": "a7fd9f08c7784ffafdfbec03796c03d1",
"text": "Your parents are troopers (pooper troopers?). Nothing in our area was affordable for those services so we tried the clean-your-own kind - they were really nice and probably would help potty train but seriously a few months of scraping poop into the trash and washing a bucket of smelly diapers got old quiiiiiick! I will say this - the kind you clean yourself is the absolute cheapest option. It was like $300 for a half week supply of cloth diapers so you're doing diaper laundry twice a week and the only other added cost is the special detergent which was pretty cheap and lasted a long time... Then we sold them used on eBay for $200 and bought the next size up when it was time which was like 2 months later (they snap to multiple sizes)... Rinse and repeat - works out pretty well if you're willing to commit to washing poop cloth twice a week. And 3 months of honest diapers is around $300 I think.",
"title": ""
},
{
"docid": "3b77d8502335f3b8b8ed6d68bb3669ea",
"text": "Make sure your handling the legal side of things. At your age, at least in the US usually, your parents are the one responsible for things like contracts and such. You can't legally get into contracts on your own and if your going to go into business, even at your age, a contract of work should be a must.",
"title": ""
},
{
"docid": "b88f011e80981c6d7b69bdd61da050e6",
"text": "\"If you're under 18 there's not much you can do. As a minor, your kinda just stuck. There are routes to go, but not many. If you're over 18, here's what you can do. Now these steps won't help you not anger your mother. They're \"\"what you can do\"\" but it doesn't mean you \"\"should\"\". Keep in mind that it might be better just to have a conversation. In that conversation, if you think you need to say, \"\"I will file a complaint with the FBI, and have you arrested if you don't stop! You're breaking the law and invading my privacy.\"\" Again these are drastic steps to take. More moderate steps may be advisable.\"",
"title": ""
},
{
"docid": "eca1589f556ec5c6b248b677962048d5",
"text": "I can deal with the sometimes human trash that shops there, the screaming and running kids...and even the somewhat messy isles. For me, it comes down to two things: 1. Language barrier. If you are going to have staff on the floor, they need to be able to speak and understand English. This is an uncomfortable criticism, I know, but it is real. 2. Staff lack of knowledge of the products they sell. Reading the description on the tag of two different items does not help me.",
"title": ""
},
{
"docid": "eaab9bd2b0cb3f917a3cf78a945a3545",
"text": "Our Website : http://www.inglewoodarena.com/ The Forum loves children, but asks that you check the age minimum on the event you are attending prior to buying tickets. If children are allowed, those under two attend for free but must remain on a ticket-holders lap. Any strollers must be collapsible and stored beneath seat. Service Pets are happily accepted but must remain in the seating area with their human, harnessed or leashed. The Forum Inglewood strongly encourages Animal Access card photo IDs.",
"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": "51c59aa3d9076346ca2df12daa9c1422",
"text": "Fair enough, do what you want, but the issue is that the physical store is providing you with valuable services that you are taking advantage of (you get to see the shoes before you buy them, try them on, get advice from employees, etc.) without paying for.",
"title": ""
},
{
"docid": "ede77e1d457e70fd95473a2bf510101c",
"text": "Customers also have different needs and the more extreme the need, the more likely they're going to rate you. So even if you completely fulfill a customer's need, unless it was an extreme need or they were in a predefined emotional state, you're not likely to get a review. As an example, we used to actually fix things at our Radio Shack, with solder and such. In store. A FEW people would give us feedback about that. We were also allowed leeway on what we could take for returns (receipt, 30 day limit, etc.). So if the customer came in and started telling me how our products sucked, and they were calling the BBB it's unlikely they would receive the queen bee treatment. They also gave reviews (Yelp wasn't around at the time). In short, despite the fact we gave the vast majority of our customers way above par treatment, the people most likely to give reviews were self-entitled pissants. Despite what people say about turning customers around (from angry to nice), this only happened with maybe 1 out of every 5 pissy customers. Another two would probably be shown to be attempting to scam the store in some manner and a fourth would likely have to be shown the door.",
"title": ""
},
{
"docid": "1f688eb3dbae48ce79d34ffed10bd9a9",
"text": "It's never too early, but age 3 is when we started a piggy bank. Age 4 is when we opened a bank account. When you go shopping with your children, discuss what items cost (such as bread, milk, books, etc.) Start teaching them that everything has a value...then relate it to how much they have saved. Kids need to learn 3 basic things from their parents: how to save/invest, how to spend wisely, how to share/donate",
"title": ""
}
] |
fiqa
|
710039eee009988895644d894f3ef200
|
How can I find out the credit rating of a company
|
[
{
"docid": "179994ff8c7fafc4523b9341609b5004",
"text": "You can view Standard & Poor's credit ratings here: http://www.standardandpoors.com/ratings/en/us/ You have to register with S&P to access the ratings.",
"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": "681f7184bde61e9ceafddbd27414387a",
"text": "You really can't. Credit rating is determined by financial history, and until your kids are old enough to legally sign a contract they have essentially no financial history. Interesting out-of-the-box thought, but not workable.",
"title": ""
},
{
"docid": "6d7927f3cc6a8c9dd272960747f38d05",
"text": "The cold caller is just a different way to contact you compared to the junk mail that they send. The business gets information from the credit rating companies for households that meet a specific set of criteria. It could be town, age, home ownership, low credit utilization...Or the exact opposite depending on what they are selling. Some business do sell your data. Grocery store know who buys certain products: parents buying diapers may want to start saving for college; ones buying acne medicine may want to talk about lower rates for car insurance. When they call via phone they have a different success rate compared to junk mail, but for that business that may be acceptable for their needs.",
"title": ""
},
{
"docid": "c783ef9f0ca268bb0df24e9258cb74e7",
"text": "\"The list of the public companies is available on the regulatory agencies' sites usually (for example, in the US, you can look at SEC filings). Otherwise, you can check the stock exchange listings, which show all the public companies traded on that exchange. The shareholders, on the other hand, are normally not listed and not published. You'll have to ask the company, and it probably won't tell you (and won't even know them all as many shares are held in the \"\"street name\"\" of the broker).\"",
"title": ""
},
{
"docid": "0aeb0bb4b3bbbee25c09f14be0a80f01",
"text": "Even assuming you were reading the balance sheet correctly it means nothing. What banks mostly care about is cash flow. Do they have enough extra money to make the payments on whatever they borrow? I have never had a credit card company ask me about assets--they don't care. They care about income with which to pay the credit card bill. Have a solid record of paying your bills and enough income to pay back what you are trying to borrow and you'll have an excellent credit rating no matter what your net worth. Whether you are one person or a megacorporation makes no difference.",
"title": ""
},
{
"docid": "21bf027dd7d50ab43d1fea90f8798f18",
"text": "\"I used to work for one of the three ratings agencies. Awhile ago. First: There are lots of different ratings. The bulk of ratings are for corporate debt and public finance. So senior debentures (fixed income) and General Obligations e.g. tax-free muni bonds, respectively. Ratings agencies are NOT paid by the investment banks, they are paid by the corporations or city/ state that is issuing debt. The investment banks are the syndicate that pulls the transaction together and brings it to market. For mortgage-backed securities, collateralized debt CDO-CLO's, all of which are fancy structured securitizations, well, that is a different matter! Those transactions are the ones where there is an inappropriately close tie between the investment bankers and ratings agencies. And those were the ratings that blew out and caused problems. Ratings agencies continued to do a decent job with what WAS their traditional business, corporate and municipal bond ratings, as far as I know. What khajja said was 100% correct: S&P's fees were paid by investors, the people who were purchasing the bonds, until about 50 years ago. Around the same time that McGraw-Hill purchased S&P, in 1966, they departed from that model, and started charging the bond issuers for ratings. I don't know if that decision was driven by McGraw-Hill or not, though. One more thing: Not all credit ratings agencies are paid by the issuers. One of the 10 NRSRO's (a designation given by the S.E.C.) is Egan-Jones. Their revenue comes from the investors, bond purchasers, not the companies issuing bonds, unlike the S&P/ Fitch/ Moody's \"\"business model\"\". So there is an alternative, which I consider hopeful and reason not to totally despair. EDIT: What xcrunna19 mentions is also totally accurate. The part about Nouriel Roubini (who is a professor at N.Y.U. or Columbia or such and a sensible though slightly high strung sort) is consistent with my impression. As for whether it would require government action to implement the changes advocated by Roubini, yes, I guess it would, but I don't know if the government would do that. It would be better if the credit ratings agencies would find their own way to a different, less conflicted payment-incentive model. Keep in mind too that many of the provisions of Dodd-Frank have removed the existing regulatory requirements for credit ratings on bonds and other securities. This is the scary part though: There isn't anything to replace the credit ratings agencies, not at the moment, as far as I can tell! Eventually the government is supposed to come up with an alternative, but that hasn't happened yet. Which is better: Not requiring ratings at all, or the past situation of sometimes inflated ratings, which imparted a false sense of confidence? I don't know.\"",
"title": ""
},
{
"docid": "da3bb20b815bd711a1d70bb82fd9fd3f",
"text": "In general you cannot. Once the security is no longer listed on the exchange - it doesn't have to provide information to the exchange and regulators (unless it wants to be re-listed). That's one of the reasons companies go private - to keep their (financial and other) information private. If it was listed in 1999, and is no longer listed now - you can dig through SEC archives for the information. You can try and reach out to the company's investors' relations contact and see if they can help you with the specific information you're looking for.",
"title": ""
},
{
"docid": "2136538e1c183dd41f933085eadd0b7f",
"text": "\"The mathematics site, WolframAlpha, provides such data. Here is a link to historic p/e data for Apple. You can chart other companies simply by typing \"\"p/e code\"\" into the search box. For example, \"\"p/e XOM\"\" will give you historic p/e data for Exxon. A drop-down list box allows you to select a reporting period : 2 years, 5 years, 10 years, all data. Below the chart you can read the minimum, maximum, and average p/e for the reporting period in addition to the dates on which the minimum and maximum were applicable.\"",
"title": ""
},
{
"docid": "47d2401e8c9dcd835a24ea517a73bda6",
"text": "I've seen this tool. I'm just having a hard time finding where I can just get a list of all the companies. For example, you can get up to 100 results at a time, if I just search latest filings for 10-K. This isn't really an efficient way to go about what I want.",
"title": ""
},
{
"docid": "0c9e754e3769d7ad1a16dbc3e6c90ba5",
"text": "It seems like you want to compare the company's values not necessarily the stock price. Why not get the total outstanding shares and the stock price, generate the market cap. Then you could compare changes to market cap rather than just share price.",
"title": ""
},
{
"docid": "30aacc07f38e6b5fa8c9dab25168220f",
"text": "\"is your credit history ruined, or merely dinged? Is the blow recoverable? Any bad credit rating event is recoverable given enough time / money to solve the problem. As far as \"\"Ruined\"\" vs\"\" \"\"Dinged\"\", well, that's a matter of opinion; some people think that one bad item is the end of the world, others not so much. You will have an unpaid debt listed on your report. This will drop your score. The amount it impacts the score will depend on other factors in your report. Can the carrier try to get the money back in court? I assume you'll wind up dealing with a debt collector. Yes they could go to court, but that's unlikely at least in the short term. Far more likely is that the debt ends up sold to a debt collection agency for pennies on the dollar. The debt collection agency will harass you until you pay and they might file in court if they think the debt is more than enough to cover the court costs. Will this affect any other relationships you have? Possibly. A bad rating may make it more difficult to get credit in the future. However that depends on numerous other factors such as your entire history. It could even prevent you from being hired from certain jobs - not many of them, but some. Is it criminal? Read this: http://www.startribune.com/investigators/95692619.html The US does NOT have a debtors prison. However if the company decides to file a court case and you fail to appear or fail to abide by the court ruling then, in some states, you could be committing a crime and may be thrown in jail. At which point you are on the hook not just for the original fee but potentially a plethora of other costs. Never mind the loss of reputation when your friends, family and coworkers find out that you are sitting in jail. At the end of the day, just pay the debt. If you agreed to the plan and the plan has an early cancellation fee then the moral and ethical thing to do is pay it. Trying to see how bad it would be to ignore it isn't the right way to live.\"",
"title": ""
},
{
"docid": "7c7e2492482cabf5a89816370180c36c",
"text": "The only recommendation I have is to try the stock screener from Google Finance : https://www.google.com/finance?ei=oJz9VenXD8OxmAHR263YBg#stockscreener",
"title": ""
},
{
"docid": "4eaf0ece65e124c8ee239f8b0f7821d9",
"text": "I've seen credit cards that provide you your credit score for free, updated once a month and even charted over the last year. Unfortunately the bank I used to have this card with was bought and the purchasing bank discontinued the feature. Perhaps someone out there knows of some cards that still offer a feature like this?",
"title": ""
},
{
"docid": "cfc23c6e3d2e087ba14307e90558851f",
"text": "Credit Sesame monitors your credit score for free. My understanding is that they make their money off of credit card referrals.",
"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": "f9c64c3b2016141277efdf4e834774e1",
"text": "Google Finance gives you this information.",
"title": ""
}
] |
fiqa
|
7db4a3cc86788445c3d7f8b76b6cd414
|
Is This A Scam? Woman added me on LinkedIn first, then e-mailed offering me millions of dollars [duplicate]
|
[
{
"docid": "1d6996c28689896be1cbbb0f340c6a87",
"text": "Yes. If you reply back, they'll confirm that Uncle Alex did indeed leave you $7 million, and you just need to send them a few thousand dollars for taxes and estate fees and then they'll wire you the money. And then there'll be customs fees. And then more taxes. And of course, there will be separate import fees. And so on until you run out of money.",
"title": ""
},
{
"docid": "988c6575e4ce64a92a839e7605009f72",
"text": "It is absolutely a scam. Anyone who tells you they can give you a large amount of money for free is trying to scam you. Additional warning signs include:",
"title": ""
},
{
"docid": "a5f1b4d0114213b9543fd6dd74832667",
"text": "\"This is totally a scam. I didn't read the whole thing. Didn't need to after I read \"\"abandoned sum of 22.5 million\"\" which implied part of it was yours to take after you do something for them.. Logically speaking.. No stranger would disclose this to you.\"",
"title": ""
},
{
"docid": "04e09df8643a9e9bf56221aeef4741af",
"text": "\"In general, if you think something even MIGHT be a scam, the answer is\"\"yes\"\".\"",
"title": ""
}
] |
[
{
"docid": "cf189bbfcf5cd1c6c0ed854c5b9c2ee9",
"text": "\"This is definitely a scam. My husband was inquiring with a \"\"company\"\" that was offering him to be. Representative for them. He got the same job details but the company was called Ceneo. I did due diligence and found that the real Ceneo has no problems receiving money directly from buyers around the world. The fake company mirrored their website, posted jobs on the net,hoping to \"\"employ\"\" unsuspecting people in the U.S. This is their reply to my husband when he asked the job details. DO NOT GET SCAMMED and held accountable for money laundering.\"",
"title": ""
},
{
"docid": "8b568bf322198a4fc02e3bc71ce3e14b",
"text": "\"Thank you for the response, no they didn't ask for anything from anyone, and I certainly didn't give them any information. I was very skeptical but I don't want to be close minded. They claim that they never charge anyone for their mentorship. And the fact they talked so much about pyramid schemes really put me on edge. I guess I just would like to know if anyone else knew about this \"\"$10 billion in revenue private company.\"\" I read the article you posted and I didn't get that impression. The speaker said he was donating time because he felt like that was important for himself and his wife, to give back to the community. Anyways I will give it a chance, cautiously, and worst case scenario it's an opportunity to network. Thanks for the insight!\"",
"title": ""
},
{
"docid": "6656967ba487892e9921b4bb5f12ca72",
"text": "\"I believe no-one who's in a legal line of business would tell you to default voluntarily on your obligations. Once you get an offer that's too good to be true, and for which you have to do something that is either illegal or very damaging to you - it is probably a scam. Also, if someone requires you to send any money without a prior written agreement - its probably a scam as well, especially in such a delicate matter as finances. Your friend now should also be worried about identity theft as he voluntary gave tons of personal information to these people. Bottom line - if it walks like a duck, talks like a duck and looks like a duck, it is probably a duck. Your friend had all the warning signs other than a huge neon light saying \"\"Scam\"\" pointing at these people, and he still went through it. For real debt consolidation companies, research well: online reviews, BBB ratings and reviews, time in business, etc. If you can't find any - don't deal with them. Also, if you get promises for debtors to out of the blue give up on some of their money - its a sign of a scam. Why would debtors reduce the debt by 60%? He's paying, he can pay, he is not on the way to bankruptcy (or is he?)? Why did he do it to begin with?\"",
"title": ""
},
{
"docid": "f30a17be73a412245a9ab918311722d7",
"text": "Yes, it is a scam. There is no doubt about it. Never give your bank password to anyone, especially strangers. You will lose your money if you fall for this.",
"title": ""
},
{
"docid": "c931860195065d9558dc966e8eae2e83",
"text": "\"Short answer: Yes this is a scam. I see three different possibilities how they get you. I will rank them from \"\"best\"\" to worst Scammer A sends 100$ to you. You then follow his instructions and send back 50$ through WU (this is untraceable). He then contacts his bank and tells them he never intended to send that 100$ to you, then bank will then reverse that transaction and give him back his money, leaving you 50$ short. Scammer A hacks or scams innocent person B and either sends B:s money to you or tricks person B to do it. When person B reports this to the police it will look like you were behind the whole thing. The transaction will be reversed leaving you 50$ short and with unwanted police attention (see this article for an extreme example: https://www.wired.com/2015/10/online-dating-made-woman-pawn-global-crime-plot/) The nice person A wants to send money to a criminal syndicate or terrorist organization but don't want to be associated with it. Leaving you 50$ up (hurray) and possibly on a bunch of terrorist watch lists (ouch!). The extra info you provide wouldn't be necessary for any of these scams but I guess it could be nice to have for some regular identity theft. This is by no means an exhaustive list of all that the scammers could do. It's just a short list to show you how dangerous it would be to play along. To state the obvious, don't walk from this person, RUN!\"",
"title": ""
},
{
"docid": "bae6825690a6c31017606cb7d6fd6596",
"text": "Admins can often be the face (or voice) of a firm that leaves the first impression. You're totally right, you can usually tell what kind of place it is by the way they are treated and the way they treat clients and others. Hopefully she lives up to her impression and not her username!",
"title": ""
},
{
"docid": "56bc6d95b268336280b39839bab6321e",
"text": "it's not a scam. it's not even too good to be true. frankly it's the lowest sign up bonus i've ever seen for a credit card. you would be better off signing up for a flagship card from one of the major banks (e.g. chase sapphire, citi double cash, discover it, amex blue). those cards regularly offer sign up bonuses worth between 400$ and 1000$. however, you can't get all the cards at once. noteably chase has a fairly firm limit of 5 new cards per 24 month. the other banks have similar, less publicized limits on who they will approve for a new card. so, by applying for this amazon card you are hurting your chances of getting far more lucrative sign up bonuses. it is however worth noting that those larger bonuses usually come with a minimum spending requirement (e.g. spend 1k$-3k$ in the first 3 months)",
"title": ""
},
{
"docid": "06dcdb3f6eb90ca6d5b0273dfd74d91e",
"text": "What is she actually doing? Is it illegal? She is running some kind of scam and it is illegal. Quite often these are fronts. Generally people get suspicious if they haven't seen anyone. So you social engineer and someone like this girl would boost in her circle. The fact that she is making $6500 a day is unverified claim. I can say I make 1 million a day :) There is no free money. It is wise of you not to share your Bank details. Stay away as far as possible. Note depending on the country and regulation you could be in trouble with authorities for even knowing / suspecting that someone is committing fraud and not informing authorities.",
"title": ""
},
{
"docid": "338231cbc70b8a243b50a393e02af534",
"text": "\"Here we go again! Why, oh why, would someone just open a bank account in your name with that much money for no good reason? Unless there's a very rich relative in your family tree, this can not come to a good ending. Besides, if this was money being left to you by someone as part of an inheritance, you'd hear from attorneys from the estate. Notwithstanding everything @NickR posted about the details of what makes it suspicious, ask yourself why a banker would contact you by email about an account with this much money in it. The bank would, at the very least, send you a registered/certified letter on official stationery. So what happens here is when you give them your banking information, whoever it is that's doing this will clean out your account, and that's for starters. They will ask for enough information to steal your identity too, and if you have good credit, that'll be gone in a heartbeat. The best scams (meaning the most successful ones) always appeal to peoples' greed, using large amounts of money that just miraculously belong to the victim, if only they'd give a little information to \"\"transfer\"\" the money. Worse yet, most of these scams will come up with some kind of \"\"fee\"\", \"\"tax\"\" or other expense that you have to pre-pay in order to make the transfer happen, so this just adds insult to injury when you find out (the hard way!) you've been scammed. DO NOT reply to the email you received or, if you already have, don't send any more responses. If they think they may have you on the hook then they won't stop trying, and it will become very messy very quickly. THIS IS NOT REAL MONEY! It isn't yours, it doesn't really exist, and all it will do is come to no good end if you go any further with it. Stay safe, my friend.\"",
"title": ""
},
{
"docid": "9989b76b4407475d54478507be66a0d5",
"text": "Michael Pryor is 100% correct here. This is almost certainly a scam. If you want confirmation, look at the feedback of the buyers and of folks who buy stuff from them. You'll typically find that they run through a bunch of low value auctions, build up some feedback, then all of the sudden buy and sell lots of laptops or other high-value items. It's a big scam that has been going on for a decade or more. If you are actually trying to sell things like computers overseas, particularly to third world countries, the sign of a legitimate buyer is usually someone who will have you ship to an import-export company who handles the customs stuff and the bureaucratic nonsense required to deal with government on the other side. I had a bunch of Sun equipment in the late 90's that was purchased by folks in Latin America via EBay. They bought from EBay because the local resellers had a monopoly on the products or couldn't get sufficient quantities. All of them used companies, mostly in Miami, which handled the actual export at the customer's expense.",
"title": ""
},
{
"docid": "ec456909c2d1c75c5820e40e811a5ee4",
"text": "\"The answers here are all correct. This is 100% scam, beyond any reasonable doubt. Don't fall for it. However, I felt it valuable to explain what would happen were you to fall for this. It's not all that hard to understand, but it involves understanding some of the time delays that exist in modern banking today. The most important thing to understand is that depositing a check does not actually put dollars in your account, even though it appears to. A check is not legal tender for debts public and private. It's a piece of paper known as a \"\"bill of exchange.\"\" It's an authorization for a payee (you), to request that their bank pay you the amount on the check. A transaction made with a check does not actually draw to a close until your bank and their bank communicate and cause the actual transfer of funds to take place. This process is called \"\"clearing\"\" the check. Despite living in the modern times, this process is slow. It can take 7-10 days to clear a check (especially if it is an international bank). This is not good for the banking business. You can imagine how difficult it would be to tell a poor client, who is living paycheck to paycheck, that he can't have his pay until the check clears a week later. Banks have an interest in hiding this annoying feature of the modern banking system, so they do. When you deposit a check, the bank will typically advance you the money (an interest free loan, in effect) while the check \"\"floats\"\" (i.e. until it clears). This creates the illusion that the money is actually in your account for most intents and purposes. (presumably a bank would distinguish between the floating check and a cleared check if you tried to close out your account, but otherwise it looks and feels like the money is in your hands). Of course, if the check is dishonored (because the payer had insufficient funds, or the account simply did not exist), your bank will not get the money. At this moment, they will cancel any advances you received and notify you that the check bounced. Again, this happens 7-10 days later. The general pattern of this scam is that they will pay you by a method which clears slowly, like a check. They will then ask you to withdraw the money using a faster clearing method (like a wire transfer or withdrawing the cash). Typically they will be encouraging you to move quickly (they are on a timetable... when their check bounces, the game is up!) At this time, it will appear as though the account has a positive balance, but in fact it has a negative balance plus an advance on the check. This looks great until 7-10 days later, when the check bounces. At that time, the bank will cancel the advance, and reality will set in. You will now have an open bank account, legally opened by you in your own name, which is deeply in debt. Meanwhile, the scammer walks away with all the money that you sent them (which cleared quickly). There are many variants which can hide the details. Some can play games with check kiting to try to make your first check clear (then try to rope you in for a more painful hit). Some will change the instruments they use (checks are the easy ones, so they're simply most common). Don't try to think \"\"maybe this one is legit.\"\" These scammers literally make a living off of making shady transactions look legit. Things I would recommend looking out for:\"",
"title": ""
},
{
"docid": "5ce583345d3b1edc1a00356f0e5996be",
"text": "This is a scam. There is no soldier, no money ... This is a story to gain sympathy and make one part with Bank account and other details so that the scammer can make away with your money.",
"title": ""
},
{
"docid": "456c1399b8629f00c658ad7617c2ead5",
"text": "It's got every sign of a scam. Signatures are needed on contracts, so you should only place them on below one. Free money sounds too good to be true. Money evading banks is a typical sign of money laundering; why are they trying to avoid paper trails? The normal way to gift money is to just hand it over or pay it to a bank account. If anything, you sign a tax declaration, but you would send that to the taxman yourself.",
"title": ""
},
{
"docid": "2a0262bed023fcc3be14a38a1572465b",
"text": "I wonder if your rational thinking is getting confused by the prospects of getting some deposit from that person? He needs, amongst other things : •online access username •online access password Ok, so you have 1000 in your account. They deposit 500 and you are happy. Then they take out all 1500 and you're done :) How can you not think it is a scam when you're giving them your login as well. Here is an analogy. Some stranger asks you for keys of your home (while you're away) and tells you he will just go in place a gift inside your door and go away. Would you give him your keys and come home later expecting a gift to be there and nothing taken away? Is it a scam if the person only wants to deposit into my account, not make a withdrawal? Who is to tell? P.S: Sorry, please don't mind the rest of this answer but from it could also be related to a new relationship that you are in. Going ahead with this might cause you a lot of emotional harm as well. You seemingly trust that person when there are obvious signs that you are being defrauded, possibly in the name of love.",
"title": ""
},
{
"docid": "91b5aa73a2814feb10523862666ae38a",
"text": "> Finally, she found notice from PayPal that a new e-mail address had been successfully added to her account! As far as she can tell, nothing was stolen, and she's changed and increased security for all her passwords. What's really weird is that PayPal looked into it, and reported that the request to add the new address came from (or had been well spoofed to look that way) our ISP, and our address. PayPal could say to within a few seconds when it happened, and it was at a time when all the humans here were asleep. The cats disclaim any interest in the computers Any hackers out there? If this was the doings of the insurance company, how would they have done this?",
"title": ""
}
] |
fiqa
|
722457e44afbdd6cc0a4236392812457
|
What forms of payment am I compelled to accept?
|
[
{
"docid": "f92d29b145907a0e067d913ff84eeed4",
"text": "\"The confusion comes from ambiguity in popular belief -- that businesses are required to accept x_y_x as payment. In reality, a business can state the terms of a transaction to their pleasure. On the other hand, debt is different -- no lender can refuse cash or other legal tender for repayment of debt. Sometimes, people try to split hairs and argue \"\"Well, if I eat a steak and I owe the restaurant $100, they should have to accept my $100 as tender for the debt of my meal.\"\" Not true. The restaurant isn't giving you a line of credit, they're billing you after services rendered, and your payment is due on their terms.\"",
"title": ""
},
{
"docid": "8ae5ee4dee30d3f64c7745fc56b20495",
"text": "I think cash, travelers checks (little iffy about this one: they're legal tender cash equivalents), and money orders are the only ones that you'd be a little weird to not accept. You certainly don't have to accept regular checks, credit cards, or barter. In the end though, you don't HAVE to accept anything. Accept only small bills, accept only checks from certain banks, accept only the diners card. Your sale, your rules.",
"title": ""
},
{
"docid": "12b40e074513538ce68402423a6b9317",
"text": "I just listened to a podcast on this topic this week, and Satanicpuppy is pretty much correct. If you are interested, here is a link to the podcast on Legal Lad: Can Businesses Refuse to Accept Cash?",
"title": ""
},
{
"docid": "4ad08fc0ab8ad1ece6c26bf0a5529da4",
"text": "When you're selling something through a provider, like Craig's List or newspapers, the only thing that may limit your choices is the provider. They may refuse your post if it's against their rules or the law. But luckily they usually don't limit or enforce certain payment choices. These private business providers have the right to do so if they want. You don't need to be their customer. They may state their terms for using the service and even refuse service (before any payment is made). The fun part is that you may do so as well. Just remember to state your terms in your post so the prospective buyers are aware of them. I've found it best to put payment and delivery terms in separate lines so that they are easily noticeable, for example: Nice victorian handbasket with gold embroidery, only used once. Signed by the original author. Comes with a certificate of authenticity. No delivery, only cash payments.",
"title": ""
}
] |
[
{
"docid": "6deab0b0a73d54fc96fce6a32d886ccb",
"text": "I'm not a lawyer, and am certainly not familiar with your jurisdiction, but the general guidelines I've seen around this kind of situation are: If all else fails, you could just cancel the card, though I'm not sure what liability you have to honour the contract. I cancelled a card once to stop being charged by a particularly annoying company and had no problems, but I'm not sure if that is a good way to deal with it in general.",
"title": ""
},
{
"docid": "a46e30f4bc33d0e7cd964393fe909451",
"text": "Beg, plead, whimper, and hope they take pity on you. Sorry, but there's no way to force someone to take less than you legitimately owe them except to declare bankrupty, and even that may not do it. If they aren't interested in throwing away $3000, your best bet really is to try to arrange a payment plan, or to get a loan from somewhere and pay that back over time. Of course either of those options is likely to cost you interest, but that's what happens... I wish I could say something else, but there really isn't any good news here.",
"title": ""
},
{
"docid": "efc61f4ca2cbf4747a962aacb18f1111",
"text": "There are two separate cases here that people are not separating. Any card will allow you to pay an amount not exceeding the actually posted charges. Some cards will allow you to pay more than this, some will not. My parents have deliberately overpaid as a means of having a higher credit limit, I've been denied (different card) when trying to do the same thing and the website wouldn't even allow me to pay temporary charges that hadn't yet become real. (A human operator would allow paying those, though.)",
"title": ""
},
{
"docid": "8bb67dbef75bc0e21447b957487b2d92",
"text": "You can split payments, and nobody judges you because most prepaid cards are actually gift cards. They just think you have generous friends. When you use Visa/MC at a vendor, they get dinged around 2-3% plus 35 cents flat-rate. So when you ask them to charge 77 cents to the card, you're essentially asking they give half of it to Visa/MC. Which is unfair. A charity won't turn it down, but it's wasted. So how do you solve this problem? If you see a small merchant using Square or PayPal Here, their merchant agreements charge a flat rate (2.75% and 2.70% respectively) with no flat rate per transaction. If you see they are on PayPal/Square, go for it. Obviously PayPal itself doesn't have that problem, because they have a really, really good deal with Visa and Mastercard. So feel free to buy yourself credit on your PayPal account with these residual values. Amazon probably has a similar deal. You are getting these small amounts because you aim to pay a $22.69 bill with a card that has $25 on it. Reasonable, but it causes this. Flip it around: pay a $22.69 bill with a card that has $20 on it, consume the $20 value, and pay the $2.69 in cash. You may need to tell the cashier exactly the amount to charge (e.g. $20.00) especially if it is a Visa/MC card. It will certainly go faster if you do. The cashier may be able to pull up the balance, but it's an extra procedure, and an inexperienced cashier may struggle with it / have to call the manager etc. - not worth it in my book.",
"title": ""
},
{
"docid": "b1b626a6a93f933925f5e3d6ad2d08dd",
"text": "\"I bought a car a few years ago. The salesman had the order, I knew the car I wanted and we had a price agreed on. When I refused the payment plan/loan, his manager came over and did a hard sell. \"\"99% of buyers take the financing\"\" was the best he could do. I told him I was going to be part of the 1%. With rates so low, his 2 or 3% offer was higher than my own cost of money. He went so far as to say that I could just pay it off the first month. Last, instead of accepting a personal check and letting me pick up the car after it cleared, he insisted on a bank check to start the registration process. (This was an example of one dealer, illustrating the point.) In other cases, for a TV, a big box store (e.g. Best Buy) isn't going to deal for cash, but a small privately owned \"\"mom and pop\"\" shop might. The fees they are charged are pretty fixed, they don't pay a higher fee cause I get 2% cash back, vs your mastercard that might offer less.\"",
"title": ""
},
{
"docid": "0f7cc2ac0ed54ac2c5192299ce554b1a",
"text": "I have a PayPal account that I have linked to my bank account. My PayPal balance is always $0. When I make a purchase with PayPal, PayPal will automatically withdraw the funds from my bank account to make the purchase. PayPal does not ask my permission for each purchase. I probably gave them permission to do this when I linked my bank account. Or perhaps the PayPal purchase process includes this permission. I don't read the text closely. Or I should add, that I probably read it at one point, but since I do it on a regular basis, I don't read it now, and I don't recall what is on the checkout page.",
"title": ""
},
{
"docid": "2254fe416d8e60c86d1f4473f3238fe0",
"text": "Update: it looks like this may no longer be a requirement. I was able to withdraw from TreasuryDirect into another bank account without issue.",
"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": "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": "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": "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": "df04bf973dfc980c682ed0adc5d14843",
"text": "It sounds cold, but the law has to hold people to their agreements. There are exceptions for unconscionable terms, but I don't think this gets close to that level. This is certainly audacious, but not quite shocking to the conscience. Maybe there's an argument to be made regarding whether a reasonably prudent person in the party's position would have known what they were agreeing to under the circumstances (depending upon how the provision was presented), but without a lot more information we can't say whether that angle has a snowball's chance in hell. You should read the terms governing every important agreement you enter into. It sounds like a huge burden, but for any major undertaking you really do need to grit your teeth and trawl through the whole thing. If you don't like what you find, ask for a second look from a lawyer to confirm your suspicions, or just walk away. Bank service agreements, loan/mortgage applications, major venue reservations, and employment contracts (ESPECIALLY employment contracts!) all deserve that much time. Typically the terms you might not like are address circumstances that, as a practical matter, don't really concern you, but you might be surprised at how often you find deal-breakers like this crawling around in the woodwork.",
"title": ""
},
{
"docid": "3eafc311a47898fc86cd2c0adc1a07ff",
"text": "Legal Tender means you have to accept that money as payment for a legal (as in not illegal) debt. If I'm in country X, and we go to court over a dispute of a debt, the law in most places is that the court will insist the debt be paid in the local legal tender at a specific amount. As others already said below - taxes, etc -those are debts. Eating at a restaurant is a debt (you ate it already) Filling up with gas without paying first is a debt. Employees work for you build up debt. But in any private transaction where there is no debt, people are free to do whatever they want (let's ignore discrimination laws and whatnot for this discussion, mmkay?). You can come into my store and I can insist that today I'll only accept euros. Or jelly beans. Or I can choose to simply not do business with you. We are two free people who are under no obligation to do business with each other, and if we choose to, how we choose to remunerate each other for that business is completely up to us. (How I pay the sales tax on that transaction, though, well, thats' between me and the tax authorites, and will be in the local legal tender)",
"title": ""
},
{
"docid": "f3c332fbce2b61f308b02c595062977e",
"text": "Ok so this is the best information I could get! It is a guarantee from a financial institution that payment will be made for items or services once certain requirements are met. Let me know if this helps! I'll try to get more info in the meantime.",
"title": ""
},
{
"docid": "9ad235adbc365a7f267a915eb6b63ab2",
"text": "Per their merchant agreements, Visa and MasterCard say that the signature on the back of the card is the proper way to identify the card holder. If a card is not signed, the merchant is supposed to check your ID and make you sign the card before accepting it for payment. Merchants are not allowed the require an ID for paying with a signed card. Of course, store employees rarely know all these things. Some will gladly accept an unsigned card. Some will try to make you show your ID.",
"title": ""
}
] |
fiqa
|
8475ebe13c509823a70a3162fc5b6ea3
|
What happens if a purchase is $0.02 in Canada?
|
[
{
"docid": "ed7216d70ae4bad46de9d20e5d88ca18",
"text": "As someone who works for a company that deploys POS systems in Canada, I can tell you that your best bet would be to have a configuration option that lets the client decide what to do. If they have a business practice that would allow for a sale total to be $0.01 or $0.02, they should first evaluate their business practice. If you're building a POS system to deploy in Canada, I'm sure you have access to resources (potential clients) who would already know how they would want to handle this. Ask them.",
"title": ""
},
{
"docid": "8e35e549848daf278c5eebdd3e1c4201",
"text": "The rounding should always follow the same rule. If the value ends in .01 or .02 then you round to .00. Doesn't matter if it's 10.01 rounding to 10.00 or 0.01 to 0.00. The decision on what a company wants to do if an invoice total is $0.01 or $0.02 would be up to the company. The POS system should follow the rule and round to $0.00 if the method of payment is cash, but the company has the right to not give things away for free. They can impose a minimum cash invoice amount of $0.05. But you would do this by requiring the customer to add more items to their purchase. You couldn't just round the invoice up to $0.05 and to charge them $0.05 for a $0.01 item It would be similar to companies having a minimum purchase amount when paying by credit card. If their minimum amount is $10.00 and you want to buy something that's $5.00, you either pay cash or add something to your order. They don't just charge you $10.00 for your $5.00 item. I think this would be a extreme edge case where you have an invoice with a total of $0.01 or $0.02, without any discounts, partial payments, etc. If the customer's total was $10.01 and they paid with a $10.00 gift card, the final amount owing of $0.01 would round down to $0.00 and they wouldn't owe any more. If they had paid cash, the total would have rounded to $10.00 anyway. Similarly, if the customer returned an item and bought a new item, or used coupons, and the total owing was $0.01 or $0.02, then you would round down to $0.00 and they wouldn't pay anything. As BobbyScon said, you can implement some options to allow the company to decide how they want to handle this. You could have an option that doesn't allow a sale to be processed if the total amount is less than $0.03 and the sale doesn't include any discounts, returned items, coupons, etc. The option could be to completely block the sale, require a supervisor override, or just display a warning to the cashier. Best bet is to talk to as many of your current or potential clients as you can to see how they would like this edge case handled. For many, it's probably a mute case since they wouldn't have items that have a unit price less than $0.03. Maybe a place like a hardware store that sells individual nuts, bolts, and washers.",
"title": ""
},
{
"docid": "c9a42e8d6987481747c2211d779c067c",
"text": "I'd imagine in this extreme edge case it would round down to $0. I can't fathom what makes $10.02 or $153.02 any different from $0.02.",
"title": ""
},
{
"docid": "a4370d67184d731bc7e118aca47f90f9",
"text": "I think it should be free. Why? I had a coupon for 35, I bought something for 35.01 including taxes and total to pay was 0.01, rounded to 0.00. I think it's almost the same scenario.",
"title": ""
}
] |
[
{
"docid": "1a404654ead22b2255f0566d521035db",
"text": "\"@sdg's answer is spot-on with the advice to avoid repeated conversions, but I'd like to provide some specifics on the fees involved: Each time you round-trip Canadian dollars (CAD) through a U.S.-dollar (USD) priced security at TD Waterhouse and leave your proceeds in CAD, you're paying a total foreign exchange fee – implied in their rate spread – of about 3%, give or take. That's ~3% per buy & sell combination, or ~1.5% on each end. You can imagine if you trade back & forth frequently, you can quickly lose a lot of money. Do it back and forth ten times in a year and you're out ~30% on the fees alone! The TD U.S. Money Market Fund (TDB166) that TD Waterhouse is referring to has no direct commission to buy or sell, but it does have a Management Expense Ratio (MER) of 0.20% per year – basically a fee which is deducted from the fund's returns (which, today, are also close to zero.) Practically speaking, that's a very slim fee to hold some USD in your Canadian dollar TFSA. While 0.20% is cheap, a point to keep in mind is if you maintain a significant USD balance, you are maintaining currency risk: You can lose money in CAD terms if the CAD appreciates vs. USD. Additional references: Canadian Capitalist describes TD Waterhouse and the use of TDB166 and \"\"wash trades\"\" at How to \"\"Wash\"\" Your Trade? He's referring to RRSPs, but the same applies to TFSAs, which came out after the post was written. Canadian Couch Potato has two relevant articles: Are US-listed ETFs Really Cheaper? and Lowering Your Currency Exchange Fees.\"",
"title": ""
},
{
"docid": "5158f026ede7c9b5abeba327ca1c33c0",
"text": "So in your screenshot, someone or some group of someones is willing to buy 3,000 shares at $3.45, and someone or some group of someones is willing to sell 2,000 shares at 3.88. Without getting in to the specific mechanics, you can place a market buy order for 10 (or whatever number) shares and it will probably transact at $3.88 per share because that's the lowest price for which someone will currently sell their shares. As a small fish, you can generally ignore the volume notations in the bid/ask quotes.",
"title": ""
},
{
"docid": "c12bc3175fa0e13e7583371e1891a8ba",
"text": "In theory, when you obtained ownership of your USD cash as a Canadian resident [*resident for tax purposes, which is generally a quicker timeline than being resident for immigration purposes], it is considered to have been obtained by you for the CAD equivalent on that date. For example if you immigrated on Dec 31, 2016 and carried $10k USD with you, when the rate was ~1.35, then Canada deems you to have arrived with $13.5k CAD. If you converted that CAD to USD when the rate was 1.39, you would have received 13.9k CAD, [a gain of $400 to show as income on your tax return]. Receiving the foreign inheritances is a little more complex; those items when received may or may not have been taxable on that day. However whether or not they were taxable, you would calculate a further gain as above, if the fx rate gave you more CAD when you ultimately converted it. If the rate went the other way and you lost CAD-value, you may or may not be able to claim a loss. If it was a small loss, I wouldn't bother trying to claim it due to hassle. If it's a large loss, I would be very sure to research thoroughly before claiming, because something like that probably has a high chance of being audited.",
"title": ""
},
{
"docid": "b5e4f3d6fb848aeba5ab9dc132673cca",
"text": "\"Occassionaly a trader will make a blatant mistake. A customer calls to buy 100 shares at $10, and the trader by mistake enters \"\"10 shares at $100\"\". You get one very happy seller :-) In the USA, it doesn't happen often for sales, because if the trader offers to sell 10 shares at $100, there will be nobody accepting the other. In Japan, with one dollar equal to 120 Yen, the same mistake would mean that someone wanted to sell 100 shares at 1200 Yen, and the trader enters 1200 shares for 100 Yen, then you will get a happy buyer, and a massive loss.\"",
"title": ""
},
{
"docid": "8c924f196d6c4d0c392a1e94967d8ebd",
"text": "You should start a dispute with the credit card company, and they might be able to recover some/all of the money. Usually, if you act fast enough, credit companies (on the merchant's side) have enough of the deposits not yet disbursed to the merchant, and they'll just reverse the charge. The earlier you start the process - the more chances you have. Otherwise you'll have to sue, I'm not familiar with the Canadian legal system.",
"title": ""
},
{
"docid": "e0a671734512500e733a71357cfd6b3b",
"text": "If you aren't familiar with Norbert's Gambit, it's worth looking at. This is a mechanism using a Canadian brokerage account to simultaneously execute one stock trade in CAD and one in USD. The link I provided claims that it only starts potentially making sense somewhere in the 10,000+ range.",
"title": ""
},
{
"docid": "302477bcb2eda09a78915b86bcdbb8b0",
"text": "Could you not just say that you had bought it when it was pennies on the dollar and made the millions that way? There isn't much of a transaction record, is there? I also just realized that I don't understand how taxes work in that situation. If you have a different currency from the U.S. Dollar, and it increases in value greatly, do you have to pay tax on that increased value relative to the U.S. dollar? They don't when it's minimal increases.",
"title": ""
},
{
"docid": "9c7b4c73d0cfa05f6db8ec14315332e2",
"text": "Suppose you're a European Company, selling say a software product to a US company. As much as you might want the US company to pay you in Euros they might insist (or you'll lose the contract) that you agree pricing in USD. The software is licensed on a yearly recurring amount, say 100K USD per year payable on the 1st January every year. In this example, you know that on the 1st Jan that 100K USD will arrive in your USD bank account. You will want to convert that to Euros and to remove uncertainty from your business you might take out an FX Forward today to remove your currency risk. If in the next 9 months the dollar strengthens against the Euro then notionally you'll have lost out by taking out the forward. Similarly, you've notionally gained if the USD weakens against the EURO. The forward gives you the certainty you need to plan your business.",
"title": ""
},
{
"docid": "26e287a091fd702c5e5f6a22d8b26381",
"text": "If you want to convert more than a few thousand dollars, one somewhat complex method is to have two investment accounts at a discount broker that operations both in Canada and the USA, then buy securities for USD on a US exchange, have your broker move them to the Canadian account, then sell them on a Canadian exchange for CAD. This will, of course, incur trading fees, but they should be lower than most currency conversion fees if you convert more than a few thousand dollars, because trading fees typically have a very small percentage component. Using a currency ETF as the security to buy/sell can eliminate the market risk. In any case, it may take up to a week for the trades and transfer to settle.",
"title": ""
},
{
"docid": "a0a837bb59550e224a7b7b583c1f7dc1",
"text": "You shouldn't be charged interest, unless possibly because your purchases involve a currency conversion. I've made normal purchases that happened to involve changes in currency. The prices were quoted in US$ to me. On the tail end, though, the currency change was treated as a cash advance, which accrues interest immediately.",
"title": ""
},
{
"docid": "9e424bb3b0e7f90e3c589ee4b3890f1e",
"text": "\"When you hold units of the DLR/DLR.U (TSX) ETF, you are indirectly holding U.S. dollars cash or cash equivalents. The ETF can be thought of as a container. The container gives you the convenience of holding USD in, say, CAD-denominated accounts that don't normally provide for USD cash balances. The ETF price ($12.33 and $12.12, in your example) simply reflects the CAD price of those USD, and the change is because the currencies moved with respect to each other. And so, necessarily, given how the ETF is made up, when the value of the U.S. dollar declines vs. the Canadian dollar, it follows that the value of your units of DLR declines as quoted in Canadian dollar terms. Currencies move all the time. Similarly, if you held the same amount of value in U.S. dollars, directly, instead of using the ETF, you would still experience a loss when quoted in Canadian dollar terms. In other words, whether or not your U.S. dollars are tied up either in DLR/DLR.U or else sitting in a U.S. dollar cash balance in your brokerage account, there's not much of a difference: You \"\"lose\"\" Canadian dollar equivalent when the value of USD declines with respect to CAD. Selling, more quickly, your DLR.U units in a USD-denominated account to yield U.S. dollars that you then directly hold does not insulate you from the same currency risk. What it does is reduce your exposure to other cost/risk factors inherent with ETFs: liquidity, spreads, and fees. However, I doubt that any of those played a significant part in the change of value from $12.33 to $12.12 that you described.\"",
"title": ""
},
{
"docid": "3b449602794cc259348a97fddc5cf7f8",
"text": "From a purely financial standpoint, you should invest using whatever dollars get you the best rate. The general rule of thumb that I've come across is that if you are making another person/company change your money into another nation's currency, they will likely charge a higher exchange rate than you could get yourself. However, it really depends on your situation, how easy it is for you to exchange money, what your exchange rate is, and what your broker is charging you to exchange to USD (if on the off chance this is truly nothing, then stick with CAD). Don't worry about the strength of the USD to CAD too much because converting your money before you make purchases doesn't allow you to buy more shares. For the vast majority of people, trying to work with national currency exchange rates makes things unnecessarily complex.",
"title": ""
},
{
"docid": "2daeb39af8f1c38b1ba1698a8be000ea",
"text": "* They have to accept some responsibility for submitting the order multiple times. * If the price had gone up, would UBS be offering to return the shares they didn't mean to purchase? * It hasn't cost them anything yet. Not unless they sell the shares before the prices goes back up (which it likely will eventually).",
"title": ""
},
{
"docid": "c4b740c53cd6ff4f2ff8b29ed3c99642",
"text": "I want to shop in the currency that will be cheapest in CAD at any given time. How do you plan to do this? If you are using a debit or credit card on a CAD account, then you will pay that bank's exchange rate to pay for goods and services that are billed in foreign currency. If you plan on buying goods and services from merchants that offer to bill you in CAD for items that are priced in foreign currency (E.g. buying from Amazon.co.uk GBP priced goods, but having Amazon bill your card with equivalent CAD) then you will be paying that merchant's exchange rate. It is very unlikely that either of these scenarios would result in you paying mid-market rates (what you see on xe.com), which is the average between the current ask and bid prices for any currency pair. Instead, the business handling your transaction will set their own exchange rate, which will usually be less favorable than the mid-market rate and may have additional fees/commission bolted on as a separate charge. For example, if I buy 100 USD worth of goods from a US vendor, but use a CAD credit card to pay, the mid-market rate on xe.com right now indicates an equivalent value of 126.97 CAD. However the credit card company is more likely to charge closer to 130.00 CAD and add a foreign transaction fee of maybe $2-3, or a percentage of the transaction value. Alternatively, if using something like Amazon, they may offer to bill the CAD credit card in CAD for those 100 USD goods. No separate foreign transaction fee in this case, but they are still likely to exchange at the less favorable 130.00 rate instead of the mid-market rates. The only way you can choose to pay in the cheapest equivalent currency is if you already have holdings of all the different currencies. Then just pay using whichever currency gets you the most bang for your buck. Unless you are receiving payments/wages in multiple currencies though, you're still going to have to refill these accounts periodically, thus incurring some foreign transaction fees and being subject to the banker's exchange rates. Where can I lookup accurate current exchange rates for consumers? It depends on who will be handling your transaction. Amazon will tell you at the checkout what exchange rate they will apply if you are having them convert a bill into your local currency for you. For credit/debit card transactions processed in a different currency than the attached account, you need to look at your specific agreement or contact the bank to see which rate they use for daily transactions (and where you can obtain these rates), whether they convert on the day of the transaction vs. the day it posts to your account, and how much they add on ($ and/or %) in fees and commission.",
"title": ""
},
{
"docid": "1b56332284074941947f1f4196a9f43a",
"text": "\"I don't know Canada very well, but can offer some general points when considering where to park your emergency fund. Savings rates are currently low, but then so is inflation. Always bear in mind that inflation decreases the value of your money, so if you're getting 4% interest and inflation is 2%, you're making 2% gross in real terms. If you're getting 2% and inflation is close to zero, you're actually earning a similar amount, it's just the numbers are going up more slowly. Obviously when and how much tax you pay affects the actual return, it's just worth bearing in mind that low interest and low inflation are actually not that bad a savings environment as they first appear. For an emergency fund the key thing is ease of access, consider keeping some portion of your savings in an instant access account for those emergencies that happen when the banks are closed. In the UK there are various tax-free savings options, I'm guessing Canada has a few too, if so you should explore those options. While these may not have attractive headline rates, you don't pay tax on the interest, this can make them much more competitive (4% tax free is the same as 5% gross if you would have to pay tax at 20%). Normally tax free investments have caps so once you've invested a set amount you can't add anymore. This may be a consideration if you regularly dip into your emergency fund as you might not easily be able to build it up again. My approach is to have about 90% of my \"\"rainy day\"\" fund in easily accessible but tax free savings. This discourages me from spending it unless I really need to. I then keep a slush fund sufficient to cover every day disasters (boiler packing up, needing a hire car for a week etc) in instant access accounts .\"",
"title": ""
}
] |
fiqa
|
36bac11dddd675983461c632baabe25a
|
Is there a bank account that allows ACH deposits but not ACH withdrawals?
|
[
{
"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": "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": "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": "7206576eed3dbe62b8516cc60feb0040",
"text": "\"Generally, ACH transfers are not considered direct deposits. However, you can pay for this service to various providers, and they will do the transfer so that it would be marked as a direct deposit. For example, Wells Fargo allows doing it using their \"\"DirectPay\"\" system. I happen to have a WF business account (free with conditions) where this service is available, but there are plenty of providers. It does cost money (for WF - $10 monthly fee + $0.50 for a transfer to non-WF account), but it may be worth it for you if the benefit is large enough.\"",
"title": ""
},
{
"docid": "0ef23be84a2aa2a68bc4af656c4f0f7e",
"text": "Yes, I've done this. Just added the borderless account into Paypal as a new bank account and the money has now showed up in my borderless account. I used the ACH Routing Number for my USD account.",
"title": ""
},
{
"docid": "a4caf6fa7e8a372ad3dc873529deed51",
"text": "Many banks will allow you to open multiple accounts. Create a secondary checking account that has no automatic withdrawals and doesn't allow overdraft. This is the account you'll use for you discretionary spending. Get an account with a debit card and always use it as a debit card (never as a credit card, even if it allows that). Your employer may allow you to split your direct deposit so that a certain amount of money goes into this account each month. When it gets to $0, you have to stop spending. It will automatically refill when you get your paycheck.",
"title": ""
},
{
"docid": "d608f482e2617e674cae8ec514453434",
"text": "\"There is no \"\"reason why this cannot be done\"\", but you can tell your friend that these actions are officially shady in the eyes of the US government. Any bank transactions with a value of $10,000 or more are automatically reported to the government as a way to prevent money laundering, tax evasion, and other criminal shenanigans. \"\"Structuring\"\" bank deposits to avoid this monetary limit is a crime in and of itself. https://en.wikipedia.org/wiki/Currency_transaction_report\"",
"title": ""
},
{
"docid": "c7b257f2709405b41df0a6ea0a3eacf7",
"text": "Yes. it is possible, I have seen many times banks permitting overdrawing and later charging a high courtesy fees. Of course in many countries this is not permitted. In one of my account, I am running negative balance as the bank has charged its commission which is not due.",
"title": ""
},
{
"docid": "c6df5d0b36ed31940c1bf2c5350d5277",
"text": "The RDFI (Receiving Depository Institution) is the place where you keep your money and where the Debit is going to be made. Unfortunately the Debit did not go through for some kind of regulatory reason that I don't understand. You could ask them why people are not allowed to make ACH Debits there or you can try to pay through a different bank.",
"title": ""
},
{
"docid": "443ace8752b2c1eeca66acf51e249ae1",
"text": "You can open an account at Scotiabank and use a Bank of America atm (and vice versa). No ATM or bank imposed foreign transaction fee (outside the 1% network imposed fee)",
"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": "76bc67fb64cb88a385b240a90e7935ac",
"text": "I'd say it's a limitation of your bank. Every bank I've ever used had instant transfers between accounts at the same bank.",
"title": ""
},
{
"docid": "6c61e05a99a1a3457b1290a36881c82d",
"text": "Schwab Bank High Yield Investor Checking Account does not charge for incoming wires (both domestic and international), and has $0 monthly fee and minimum balance (plus they offer ATM fee rebates and no international surcharge). Schwab bank does not allow International wire transfers. Accepts domestic only.",
"title": ""
},
{
"docid": "6c7a46fe492c59213577f579bccc7310",
"text": "Yes it should be a ACH or other electronic transfer. However, it not unusual to have checks sent for large amounts in corporate banking. Large companies don't give large checks to tellers, they have it sent to a lockbox. However, lockboxes are suited for payment of invoices and I never heard of a billion dollar invoice. edit: Also, I believe that some of the bailouts were done in checks, but honestly I'm not 100% on that.",
"title": ""
},
{
"docid": "df27f28c8004c4cc694b2d81cf463b68",
"text": "\"Some banks allow mint.com read-only access via a separate \"\"access code\"\" that a customer can create. This would still allow an attacker to find out how much money you have and transaction details, and may have knowledge of some other information (your account number perhaps, your address, etc). The problem with even this read-only access is that many banks also allow users at other banks to set up a direct debit authorization which allows withdrawals. And to set the direct debit link up, the main hurdle is to be able to correctly identify the dates and amounts of two small test deposit transactions, which could be done with just read-only access. Most banks only support a single full access password per account, and there you have a bigger potential risk of actual fraudulent activity. But if you discover such activity and report it in a timely manner, you should be refunded. Make sure to check your account frequently. Also make sure to change your passwords once in a while.\"",
"title": ""
},
{
"docid": "79adfd0418bdf8de7786170858e74080",
"text": "Call Wells Fargo or go to a branch. Tell them what you're trying to accomplish, not the vehicle you think you should use to get there. Don't tell them you want to ACH DEBIT from YOUR ACCOUNT of YOUR MONEY. Tell them you apparently need a paperless transaction sent to this and that account at this and that bank. See if they offer a solution.",
"title": ""
},
{
"docid": "bd359957c211621d936ff617b49d198a",
"text": "Agree with the comment, 760 is a good score. The average score is less than 700 and average score for your age group is even lower. (Source: https://www.creditkarma.com/trends/age) Just keep paying your credit card bills on time. You could also ask for increases in your credit limits on your existing credit cards, which may increase your score, but could decrease it in the short term depending on how your credit card company looks at your credit history in the process. (Source: http://money.usnews.com/money/blogs/my-money/2014/06/27/3-ways-to-increase-your-credit-card-spending-limit)",
"title": ""
}
] |
fiqa
|
3e85773d159a824b274c61e37ec7fda9
|
Is it financially advantageous and safe to rent out my personal car?
|
[
{
"docid": "78becc0932c47c865cd73ac9b9f78f5b",
"text": "The moment that you start to rent your car to strangers you are talking about using your car as a business. Will it be financially advantageous? If you can convince somebody to rent your vehicle for more than your required monthly payments then it might be. Of course you have to determine what would be the true cost of ownership for you. It could include your auto loan, and insurance, but you would be saving on the garage costs. Of course if you don't have it rented 100% of the time you will still have some costs. Your insurance company will need to know about your plan. They charge based on the risk. If you aren't honest about the situation they won't cover you if something goes wrong. The local government may want to know. They charge different car registration fees for businesses. If there are business taxes they will want that. Taxes. you are running a business so everybody from the federal governemnt to the local government may want a cut. Plus you will have to depreciate the value of the item. Turning the item from a personal use item to a business item can have tax issues. If you don't own it 100% the lender may also have concerns about making sure their collateral survives. Is it safe? and from the comments to the question : Should I do a contract or something that would protect me? Nope. it isn't safe unless you do have a contract. Of course that contract will have to be drawn up by a lawyer to make sure it protects you from theft, negligence, breach of contract.... You will have to be able to not just charge rent, but be able to repossess the car if they don't return it on time. You will have to be able to evaluate if the renter is trustworthy, or you may find your car is in far worse shape if you can even get it back.",
"title": ""
},
{
"docid": "46c6d4b8e8228b07600d4c53b5c3cc8f",
"text": "\"I'm going to address a couple of extra issues over and above mhoran_psprep's great answer. Insurance A lot of the jobs you describe require that you have additional insurance over and above what you currently have, normally insurance that lets you drive for payment. You should insist that anyone you rent to has this insurance. If not, you may find yourself liable and uninsured. Also you should be aware of this story: \"\"Quebec Uber drivers have cars seized, fined up to $7,500\"\".\"",
"title": ""
}
] |
[
{
"docid": "86044438cd8e8eda0053178579e091ae",
"text": "\"My wife and I have been car-free since 2011. We spent about $3500 on car shares and rentals last year (I went through it recently to flag trips that were medical transportation and unreimbursed work related for taxes). This compares favorably with the last year of car ownership. I had reached a point I started needing $200+ repairs every couple of months and the straw that broke the camels back was a (dealer mechanic estimate but still) $3000 estimate to pass emissions inspection. Over 11 years the value went from $24000 to $3600, so it depreciated about 2k per year. I was easily spending $40 per week on gasoline on my last commute. I now use transit with the IRS commuter benefit so I do have a base after tax transportation expense of 1200 per year. We use weekend rentals about 2x per month (and do use a warehouse club) She uses rentals for her job about 12 times per year, and the medical transportation came in an intense burst. Access: Our nearest carshare pod is 0.22 miles (3 blocks); there are two hotels with full service rental car desks about half a mile from our house and every brand at the Amtrak station a mile away. There are concrete benefits to density, take every advantage. Insurance: I always take the rental company SLI daily insurance for $15 per day. Certain no annual fee credit cards automatically include CDW. Every time an insurance agent cold calls me, I ask for a quote for a \"\"named non owner\"\" policy, I'd probably take it if the premium was $300 or less per 6 months. Tips and tricks: a carshare minivan or truck rate is probably higher than a carshare car, but compared to a full service rental, may be much lower . The best value I spend no time in my life looking for a parking spot, and spend \"\"this hour\"\" tapping away on SE on a train instead of driving.\"",
"title": ""
},
{
"docid": "15ba43220578c9b495c2baeeb42ca862",
"text": "\"I would split the savings as you may need some of it quickly for an emergency. At least 1/2 should be very liquid, such as cash or MMA/Checking. From there, look at longer term CDs, from 30 day to 180 day, depending upon your situation. Don't be surprised if by the time you've saved the money up, your desire for the car will have waned. How many years will it take to save up enough? 2? 5? 10? You may want to review your current work position instead, so you'll make more and hopefully save more towards what you do want. Important: Be prepared for the speed bumps of life. My landlord sold the house I was renting out from under me, as I was on a month-to-month contract. I had to have a full second deposit at the ready to put down when renting elsewhere, as well as the moving expenses. Luckily, I had done what my tax attorney had said, which is \"\"Create a cushion of liquid assets which can cover at least three months of your entire outgoing expenses.\"\" The Mormon philosophy is to carry at least one year's worth of supplies (food, water, materials) at all times in your home, for any contingency. Not Mormon, not religious, but willing to listen to others' opinions. As always, YMMV. Your Mileage May Vary.\"",
"title": ""
},
{
"docid": "7ba1aa8230b37c2401e3c92abe036ee2",
"text": "\"Your arrangements with the bank are irrelevant. Whoever is named on the title of the vehicle owns it. If she is the \"\"primary\"\", then I assume her name is on the title, therefore she owns the car. If you drive off with the car and it is titled in her name, she can report it stolen and have you arrested for grand theft auto unless you have a dated and signed permission in writing from her to use the car. Point #2: If a car loan was involved, then you didn't \"\"purchase\"\" the car, the bank did. If you want to gain ownership of the car, then you need to have her name removed from the title and have yours put in its place. Since the bank has possession of the title, this will require the cooperation of both your girlfriend and the bank.\"",
"title": ""
},
{
"docid": "3cfccfed3d82ca55e2aecef11e1b212c",
"text": "Contacting a limo hire company is easy and hiring a car for personal use is also very easy. But it is seen in a majority of cases that those using these vehicles have no idea of what not do while using them. As a result, they fail to get the maximum benefit of the vehicle or the money.",
"title": ""
},
{
"docid": "89a2e6e9f016d926d3d2d8735e6e6d8b",
"text": "These days there are a lot of solutions which allow you to hire a car on the Internet itself. One of the major benefits of booking on the internet rental-car solutions is that you will preserve a fortune and ensure that things are effectively structured, thus saving sufficient time as well. We provide the Car rental services at a cheap price in the whole world. The best way to reduce costs and plan for local transportation when you are on a vacation is to book your car.",
"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": "3eceb7f45d453ce6dae1a02a88cab370",
"text": "\"I worked for a major car rental company (not Hertz, but comparable) for quite a while, taking reservations by phone. I completely agree that the reservation system is terrible, and is only vaguely based on the reality of their vehicles in stock at best. The problem is, from a strictly business perspective, taking more reservations than they have cars is currently considered the most profitable model for them. To play devil's advocate just a little, switching to a \"\"take only one reservation per vehicle, reserve it to 100% lock it in\"\" model is a bit more complicated than it sounds. In order to guarantee a specific car for a customer at a specific time, they either have to leave that car sitting on their lot until you rent it (not making money), or keep renting it out to other people in the interim. If they rent it out to someone else before your rental comes up, that removes the vehicle from their control. Bordering on constantly, renters don't return the vehicle within their promised schedule or return it in a damaged or otherwise unsuitable condition. To be clear I'm not trying to make excuses for the rental car company (there are many reasons I no longer work there), but it's objectively hard for them to get a specific vehicle if, say, all but one of them were in wrecks the previous night, and the person renting the last one drove it across the country without warning the rental office and refuses to come back. Those problems all get solved eventually, but that doesn't help you when you show up and can't get the car you reserved. So, they continue to take excessive reservations, and just give people whatever they happen to have when they show up, if they have any cars at all. There's definitely better ways to do it for the customer, but like many businesses, they'll continue to do it whatever way they determine is best for their profits. Edit: Words.\"",
"title": ""
},
{
"docid": "f2d1c0c043e6c0d127ce9c0d8d2b9b31",
"text": "Any way you look at it, this is a terrible idea. Cars lose value. They are a disposable item that gets used up. The more expensive the car, the more value they lose. If you spend $100,000 on a new car, in four years it will be worth less than $50,000.* That is a lot of money to lose in four years. In addition to the loss of value, you will need to buy insurance, which, for a $100,000 car, is incredible. If your heart is set on this kind of car, you should definitely save up the cash and wait to buy the car. Do not get a loan. Here is why: Your plan has you saving $1,300 a month ($16,000 a year) for 6.5 years before you will be able to buy this car. That is a lot of money for a long range goal. If you faithfully save this money that long, and at the end of the 6.5 years you still want this car, it is your money to spend as you want. You will have had a long time to reconsider your course of action, but you will have sacrificed for a long time, and you will have the money to lose. However, you may find out a year into this process that you are spending too much money saving for this car, and reconsider. If, instead, you take out a loan for this car, then by the time you decide the car was too much of a stretch financially, it will be too late. You will be upside down on the loan, and it will cost you thousands to sell the car. So go ahead and start saving. If you haven't given up before you reach your goal, you may find that in 6.5 years when it is time to write that check, you will look back at the sacrifices you have made and decide that you don't want to simply blow that money on a car. Consider a different goal. If you invest this $1300 a month and achieve 8% growth, you will be a millionaire in 23 years. * You don't need to take my word for it. Look at the car you are interested in, go to kbb.com, select the 2012 version of the car, and look up the private sale value. You'll most likely see a price that is about half of what a new one costs.",
"title": ""
},
{
"docid": "2d1f550144d06e304037346ce25ed698",
"text": "I might be missing something, but I always understood that leasing is about managing cash-flow in a business. You have a fixed monthly out-going as opposed to an up-front payment. My accountant (here in Germany) recommended: pay cash, take a loan (often the manufactures offer good rates) or lease - in that order. The leasing company has to raise the cash from somewhere and they don't want to make a loss on the deal. They will probably know better than I how to manage that and will therefore be calculating in the projected resale value at the end of the leasing period. I can't see how an electric car would make any difference here. These people are probably better informed about the resale value of any type of car than I am. My feeling is to buy using a loan from the manufacturer. The rates are often good and I have also got good deals on insurance as a part of that package. Here in Germany the sales tax (VAT) can be immediately claimed back in full when the loan deal is signed.",
"title": ""
},
{
"docid": "121b78600c056243d50d16e83fcf7327",
"text": "\"Personally, I would: a) consider selling the car and replacing it with a 'cheaper' one. If you only drive it once a month, you are probably not getting much 'value' from owning a nice car. b) move the car (either current or replacement) out to your parent's place. The cost of a plane ticket is about the same as the cost of the garage, and your parents would likely hold on to it for free (assuming they live in the suburbs, and parking is not an issue) option b should lower your insurance costs (very low annual mileage) and at least you'll get some frequent flier miles out of your $350 a month. That being said: this is a \"\"quality of life\"\" issue, which means that there isn't going to be a firm answer. If you are 25, have little debt, which you are paying off on time, have an emergency fund, and you are making regular contributions to your 401k, you are certainly NOT \"\"being seriously irresponsible\"\" by owning a nice car. But you may decide that the $1000 a month could be better spent somewhere else.\"",
"title": ""
},
{
"docid": "4fe05922ce9a0da7256cad78465a37d4",
"text": "If you can generate a higher ROI by renting than by cashing out and investing, then you should rent it out. Please consider your risk tolerance as well. It's always a personal decision whether to assume higher risk for a higher return.",
"title": ""
},
{
"docid": "11692d59ac54be45ba7425bb06463446",
"text": "The only reason to lend the money in this scenario is cashflow. But considering you buy a $15000 car, your lifestyle is not super luxurious, so $15000 spare cash is enough.",
"title": ""
},
{
"docid": "35f7e9bbe9ff41aa6e46cb264ed40e26",
"text": "I understand that, but there are so many mitigating factors now that I don't feel safe. It's more like thinking that airplanes are safe, but if you're walking through the airport and you notice the pilot at the bar and them see him with his shirt untucked as he bumps his head getting into the airplane you might not get onto that airplane. I wouldn't give this advice to someone in their 20s, but we are in our 50s. We have enough to live on comfortably with savings and my husband's pension and social security and passive income from the rental. It's just not worth the risk. As it is I am retired and can travel and eat whatever I want whenever I want. And the rental property is our hedge against inflation. I just see no reason to risk that.",
"title": ""
},
{
"docid": "92f923e3727a7af46c38acb5c46bb1c7",
"text": "You SHOULDN'T lease one if you are going to get an economy car, if you don't drive too much (<15K / year), and you want to hang on to the car for a long time. Otherwise, if you are a regular driver, driving a leased new quality car can be cost effective. Many cars now have bumper-to-bumper warranties that last as long as the lease (say 80K). So there is rarely any extra costs apart from regular maintenance. The sweet spot for most new cars is in the 5th, 6th, or 7th years, after they are paid off. But at that point, you may find you have maintenance bills that are approaching an average of $200 - $300 per month. In which case, a lease starts to look pretty good. I owned a 7 year old Honda Accord that cost only $80 less per month in maintenance than the new leased VW that replaced it. Haven't looked back after that. Into my 3rd car and 9th year of leasing.",
"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": ""
}
] |
fiqa
|
31536700d8e8e02e59f46cfa10931c51
|
Is a website/domain name an asset or a liability?
|
[
{
"docid": "7b8f26b9c664f83164a67fe7323ab686",
"text": "\"This depends on your definitions of assets and liabilities. The word \"\"asset\"\" has a fairly straight forward definition. Generally speaking, an asset in finance is something that you own/control that has economic value. The asset has value because it is generating income for you or because you expect that it will be worth something to someone in the future. \"\"Liability\"\" is tougher to define, and depends on context. In accounting, a liability is a debt or obligation that is owed. It is essentially the opposite of an asset; where an asset represents something of value that you own, increasing your balance sheet, a liability is a value that you owe, decreasing your balance sheet. In that sense, a website or domain name that you own is an asset, not a liability, because it is something you own that has some value. It is not a debt. Many people use the word \"\"liability\"\" informally to refer to a bad asset: something that is losing value or is causing more in expenses than it is generating in income. (See definition #5 on Wiktionary.) With this definition, you might consider a website or a domain name a liability if it is losing money. Alternatively, depending on your business, you might not consider it an asset or a liability, but an expense instead. An expense is a cost of doing business. For example, if your business is selling something, you might need a website to make that happen. The website isn't purchased as an investment, and it might not have any value apart from your business. It is simply a necessary expense for your business.\"",
"title": ""
},
{
"docid": "418d1c8eb7b3bcbfe3ed9d3b91e0f720",
"text": "In an accounting position, a domain name would fall under an intangible asset. Copyrights and patents are intangible, while tangible assets would be buildings or land (also known as property, plant, and equipment). Noting above, you can list it as an expense for personal reasons, but that would be poor classification. Tangible and intangible assets come with expenses such as legal fees and design. In these instances, you would expense the cost, or fee, but add back that value to the tangible or intangible as it would be considered maintenance. Please read here for tax treatment of a domain name. Please read here for what an intangible asset is. Also read here on page 11 for more clarification by IFRS.",
"title": ""
}
] |
[
{
"docid": "f83e907fd4c969acb36a4db865744b4d",
"text": "I've read over these responses like a dozen times. It's really cool hearing from a business owner who has experienced things first-hand. Nobody in my family has ever been or known anything about business/stocks/Anything. I'm learning everything from the internet, friends, and now reddit. I'll certainly seek true legal advice but you have no idea how helpful you and every other person on this thread has been. Thank you! I'm all ears to anything else",
"title": ""
},
{
"docid": "a25b57209b7b65d9120b4099816dbf27",
"text": "Generally, the answer is as follows: If there is a legal obligation to pay cash flow (including the possibility of court determined restructuring), then it is debt. If the asset owner is not guaranteed any cash flow, but instead owns the *residual* cash flow from the operations of the business (I.e. the cash flow left-over), then it is equity.",
"title": ""
},
{
"docid": "84fc8436480e8a494420b0c68ea08c25",
"text": "\"I think you misunderstand the purpose of the liability account. I would suggest you review the standard accounting model, but to give you a brief overview: Income and expenses are money coming into and out of your possession. They are the pipes flowing into and out of your \"\"box\"\". Inside your box, you have assets (bank, savings, cash, etc) and liabilities (credit cards, unpaid debts, etc). Money can flow into and out of either asset or liability accounts, for example: deposit a payment (income to asset), buy office supplies with cash (asset to expense), pay a bill with credit card (liability to expense), customer pays one of your debts directly (income to liability). Paying off a debt with an asset does not affect your overall net worth, so paying a check to your credit card bill (asset to liability) doesn't decrease your total balance, it merely moves the value from one bucket to another. Now to your question: Mandatory payments, such as taxes or insurance (or for that matter, utilities, rent, food- all things that \"\"must\"\" be bought occasionally) are not liabilities, instead they are all expenses. They might be paid FROM a liability account, if they are paid on credit for example, but the money still flows from liability to expense. In my own records I have Expense:Taxes and Expense:Insurance, with sub-accounts in each. Where the money comes from depends entirely on how I pay my bills, whether from cash or banks (asset) or whether it's a charge (liability). Sometimes you receive payments back from an insurance company. I find that rather than treating insurance premiums as a positive balance in a liability (with eventual payments as debits to the liability account), it is better to treat any payment from the insurance as income. Hope that helps!\"",
"title": ""
},
{
"docid": "771ef6ae92da14c94bcd4eba78e1270b",
"text": "\"Technical people on Reddit who have dealt with Oracle or similar web sites & systems (myself included) seem to believe that Oregon's claims come down to whether it was Oracle or the state government who was worse at planning the creation and maintenance of Oregon's healthcare web site. I tend to think that government entities are often worse at managing & planning things, and therefore believe that Oracle would be less likely to blame, but this doesn't necessarily mean that all of the more than dozen claims for damages will all be thrown out either. One key claim is that Oracle asserted that ~95% of the web site's functionality would work \"\"out of the box\"\", thus leaving only 5% of the web site's functionality requiring third party (potentially custom) integration. The burden is on Oregon to prove that the failures of the web site were the result of more than that 5%, and that Oracle was contractually obligated to fix issues with the \"\">5%\"\" at no additional charge. Failure to prove that would result in Oracle being justified in asking for more $ to fix the web site, such that the alleged racketeering and much of the fraud did not actually take place.\"",
"title": ""
},
{
"docid": "558f752b8e4d53038da7f1fad1c7b577",
"text": "One company owns majority of popular freelancing websites (elance included) Aside from the race to the bottom pricing happening for projects; customer is always right. Lots of stories of even a pip from a client freezing accounts -- not even just a project, your whole account with any ongoing projects. Everything gone. Thousands lost. Not worth it. No recourse.",
"title": ""
},
{
"docid": "3e89abafad08bda7125659f6655dfd39",
"text": "Assets with zero value, perhaps. Unless you can prove that they have resale value. Good luck with that. In other words, not worth spending time on.",
"title": ""
},
{
"docid": "ebebc5c60545ce9fcf8ba4c35d204b25",
"text": "Fellow dirty jerz resident here. I would highly recommend going the llc route. If, god forbid, anything ever happened and you were sued, the llc will contain all losses and your personal assets will not be at risk. I'm not sure about the timing of clients. Better to ask a lawyer - cheap to use online services like rocketlawyer (sp?)",
"title": ""
},
{
"docid": "8378244dc29df4226efa9ea00b22aaf4",
"text": "Yes, you do. Unless you actually donate it, the loan will be repaid and as such - is an asset for you. On your taxes you report the interest you got paid for the loan. You can claim the interest as a charitable deduction, if you don't effectively charge any (IRS dictates minimum statutory interests for arm-length loan transactions).",
"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": "f89ed67b5f0774d7905ab336c87cbb9a",
"text": "REITs can be classified as equity, mortgage, or hybrid. A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. Trades like equity but the underlying is a property ot mortgage. So you are investing in real estate but without directly dealing with it. So you wouldn't classify it as real estate. CD looks more like a bond.If you look at the terms and conditions they have many conditions as a bond i.e. callable, that is a very precious option for both the buyer and seller. Self occupied house - Yes an asset because it comes with liabilities. When you need to sell it you have to move out. You have to perform repairs to keep it in good condition. Foreign stock mutual fund - Classify it as Foreign stocks, for your own good. Investments in a foreign country aren't the same as in your own country. The foreign economy can go bust, the company may go bust and you would have limited options of recovering your money sitting at home and so on and so forth.",
"title": ""
},
{
"docid": "90064678db84cc09897194a1ff7108ba",
"text": "\"Maybe not the official solution satisfying int'l convention / legislation, but at least has some logic to it (though I myself am not 100% convinced as yet): Liabilities ! ... but is it really a liability? Rationale: And simultaneously ups my liabilities: since what difference does it make if I borrow some money (to use it or not use it, repay later) or if someone just wants to \"\"store\"\" some money with me: w.r.t. balance sheet I'd say: zero... ... with the one caveat that it might make a difference w.r.t. taxation ?\"",
"title": ""
},
{
"docid": "4ea38d521dc9ddf679ca1260bc44b9d4",
"text": "You mean sites like prosper.com? I see that they are growing but is this really substainable when the novely wears off? Also I find the low volatility claim interesting since I thought low vol portfolios would be a hard sell. How have you experienced this?",
"title": ""
},
{
"docid": "13ab27f6adec8293954d5fffd3caaefc",
"text": "Quite a bit as in, $100K+? If you're a sole operator, not sure what constitutes a real likelihood that a risk of liability will materialize, and in need of a lot of up front financing, I am genuinely concerned that you're going to a lay a giant egg on this one. What is it your business is going to be doing? I don't really want to give a free consultation, but I'm worried you're either misunderstanding something or about to make a mistake, and I don't want to see that happen.",
"title": ""
},
{
"docid": "37e2d6eedafa33632362dc3b7976108c",
"text": "The difference is downside risk. Your CD, assuming you are in the US and the CD is purchased from a deposit bank, will be FDIC insured, your $10,000 is definitely coming back to you. Your stock portfolio has no such guarantee and can lose money. Your potential upside is theoretically correlated to the risk that some or all of your money may not be returned to you.",
"title": ""
},
{
"docid": "8d72a2287e6187ab29b5c58818cd1e8f",
"text": "\"Alternatively you could exercise 12000 shares for $36000 and immediately sell 7200 shares to recover your exercise price. Then you use the remaining 4800 share to pay the exercise price of the remaining 8000 options. Both scenarios are equivalent but may have different fees associated, so it's worth checking the fine print. Tax wise: The above example is \"\"cash neutral before taxes\"\". The taxes associated with these transaction are substantial, so it's highly recommended to talk with a tax adviser. \"\"cash neutral after taxes\"\" depends highly on your specific tax situation.\"",
"title": ""
}
] |
fiqa
|
b1e05b50bac11f3a1ac72d094900bfa2
|
Legitimate unclaimed property that doesn't appear in any state directory?
|
[
{
"docid": "929316683fa35e9a0e9f86e94cf91880",
"text": "\"Most states have a \"\"cap\"\" on the amount a \"\"heir finder\"\" can charge for retrieving the property. It is generally around 10%. Even if the state does not have a particular statute you can usually negotiate the rate with the company. Thirty-percent is extortion, if they won't do it for less, someone else will.\"",
"title": ""
},
{
"docid": "39537f525254e9cde5d5705482fd42e4",
"text": "It's true that most states have limits on what finders can charge if the listing is in state possession. If it is in the pre-escheat phase (that period of time before it goes to the state) then even if the money will eventually go to the state, the limits don't apply. Keane does a lot of work with transfer agents that handle the administrative work of stocks. Other options that have a time limit include I have a friend that was contacted by Keane. It turned out to be stock that her mother had when she worked for AMEX. She got busy with other things and got another letter from Keane. The stock increased in value and they wanted more money to help her even though they had already done the work of finding her. The money eventually went to the state and she was able to claim the full amount for FREE. If the suggestions I gave you don't get results, contact me through my web site and I'll try to help. Good luck!",
"title": ""
},
{
"docid": "b87ccde0ee05b8f9e1675a19631d39a1",
"text": "@ Chris: Companies like Keane, ours, and others know where to look for these funds and where to ask at the correct agencies that are holding this money that is not part of the public links that you have access to. This is how we find this information. Our types of companies spend significant time, money and resources in finding out about the money, then finding who it actually belongs to (because it does not always belong to who is mentioned on the list) and then finding the correct individual. @ jdsweet: I apologize if you think this is a marketing ploy. It is not. Our company doesn't even take phone calls from people that want us to find them money. Only if we contact someone, because at that time we're confident that the person we touch base with is due the funds. Again, I am not plugging our company, but trying to let Neil know that in some cases he is right, you don't need a third party to claim funds for you - if you can find them. In this case, he has looked and cannot find them. Keane is charging a fair amount to retrieve funds he cannot find and doesn't know about and is not charging him anything to do all the work. Again, as mentioned above, the direct answer is that we know how to access information and lists that have this money hidden from the public because the agency holding the funds doesn't want you to know about it so that they can escheat the funds. Escheating is the state's legal way to confiscate your money. See, if you don't put in a claim for the money (depending on what type it is and where it is located) the agency and state holding the funds has certain time frames for you to get the money. If you don't, again, they get to keep it and that is what they want despite what they say. That is why there is approximately $33 Billion that is known to the public and really $1 Trillion that's out there. I apologize if you think that this is a plug for my company, it's not because we're not looking for calls, we make them. I'm also not asking Neil for his business. From all accounts on my side, this seems like a fair deal.",
"title": ""
},
{
"docid": "34f60003b4847e6b7e946a91d4217856",
"text": "So while these companies are not a scam, 30% feels pretty darn high. How about you negotiate a much lower rate? 10% or 15%? Here is why: You will spend time and effort (which technically isn't free) to find the money. I bet you can find it if you look hard enough. But you could also just collect it and give this company a cut for their expertise. However if 30% bugs you (and it would bug me) then consider their reality. They spent money to find the funds and contact you. HOWEVER, that is a sunk cost. It is already spent. You can find it on your own and they get zip. Or you negotiate a lower percentage, they get enough to cover their costs and make some profit and you save a ton of time. Since they took the time to explain themselves here, they are either scammers trying to bully you into compliance, or they are legit. It is field that people might look down on, but it isn't criminal. I would look for the money if it were me, but I feel I have enough free time that it would be worth it.",
"title": ""
},
{
"docid": "9f44d65ee06d29c9eac9b258e0d6b1ef",
"text": "for full disclosure I'm an Independent Contractor and work with Jeff Richman. @ Neil: Question 1: How legitimate is this? If you were never contacted by the company you would never know about the money. Period, end of story. Not trying to be rude but that is the bottom line truth. Look up asset recovery businesses. They are in every city almost. They work for individuals, governments and businesses. Very legitimate business. Question 2: Since this doesn't seem to be the case, how does this company know that I potentially have unclaimed assets to claim? I understand your concern and the best analogy I can think of to explain this is: A company's copier breaks down. A copy machine repair man is called. He shows up and opens the copier and studies it intensely and closes it back up. He takes a hammer out of his bag and hits the copier on the side in two different places, twice. The copier starts working. He charges the company owner a $1000.00. The company owner is glad to pay it because without the knowledge of the repair man, his business is not making money. This is the same: The professionals at Keane have specific knowledge about how to, where to and who to ask for these lists. Granted, it's not your business we're talking about here but without them, you get nothing. 2 professionals have advised you to move forward; your brother's accountant and lawyer. Take the money. It costs you nothing. If they want money from you up front or want you to pay for stuff, run.",
"title": ""
},
{
"docid": "c64d2cab3ef5806372194f09705c5e30",
"text": "You can't blame companies like 'Legal Claimant Services' for making a profit by providing this service. That is capitalism and it is the way of the world. It is just like any other business you can do yourself - from making dinner to cutting your own grass. If you choose to do it yourself, you save money but you also do the work. When I got my letter telling me about a claim, I automatically went online to do some research. That's how I found this site and information that led me to validate the claim. I then chose to follow a few simple instructions and keep all of the claim instead of giving away 30%.",
"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": "b06c4c5629a4c4f0af1e5c054ff97484",
"text": "Actually banks aren't required to (and don't) report on 8300 because they already report $10k+ cash transactions to FinCEN as a Currency Transaction Report (CTR), which is substantively similar; see the first item under Exceptions in the second column of page 3 of the actual form. Yes, 8300 is for businesses, that's why the form title is '... Received In A Trade Or Business'. You did not receive the money as part of a trade or business, and it's not taxable income to you, so you aren't required to report receiving it. Your tenses are unclear, but assuming you haven't deposited yet, when you do the bank will confirm your identity and file their CTR. It is extremely unlikely the government will investigate you for a single transaction close to $10k -- they're after whales and killer sharks, not minnows (metaphorically) -- but if they do, when they do, you simply explain where the money came from. The IRS abuses were with respect to people (mostly small businesses) that made numerous cash deposits slightly under $10k, which can be (but in the abuse cases actually was not) an attempt to avoid reporting, which is called 'structuring'. As long as you cooperate with the bank's required reporting and don't avoid it, you are fine.",
"title": ""
},
{
"docid": "cc7a6be9b8252d019482eb7a6c261482",
"text": "Look up escheatment. Companies that have unclaimed property are supposed to send it to your State government. They should have a unclaimed property department of some sort. In short, the company is going to have to pay either you, or your State (In Your Name) so they have to pay it either way. It would be easier for them to just give you new check. Expect them to give you some grief in verifying it has not been cashed and such... but if you have the original, in hand, it shouldn't be too bad. A 'Lost' check may be harder to get replaced. Not a lawyer, don't want to be.",
"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": "de5aca707980d49571f86a463301d315",
"text": "The bank doesn't have to do anything. It is your responsibility to provide the proof of insurance. It is the agent's job, which you through your HOA dues paid for, to provide that proof to you. You shouldn't be registering with icerts. They say so in the first sentence on the registration page: Unit Owners, Do Not Register Here! If you own an existing property, and have received a letter from your lender requiring an annual renewal/updated certificate for an association that has recently expired, please forward that letter to [email protected] to receive instructions to place your order. If your request is a new loan of any kind, please contact your lender and request that they either contact us to place this order, or register below. So you can try that route (sending an email to [email protected]), and see if it works. It does cost money, in the range of $20-$100 (I used a different similar service at the time and they charged $75 for this). If it doesn't, you can try and work with the insurance agent. There are some ways to persuade them: California has very strong traditions of consumer protections. In this case, I suggest checking out this site. Let the insurance agent know that as the HOA member - they're working for you, and that in the next HOA meeting you will raise a request to change the insurance agency. Also, remind the agent that the CA Insurance Commission will knock on their doors to ask why they don't provide you with the proof you need. If the HOA management company doesn't help you, you can remind them that they too can be fired. This can be done, and isn't even all that hard. There's a lot of competition in the HOA management market, and it wouldn't be too hard to find a new management company. The HOA management company should have provided you the proof of coverage when they renewed the policy.",
"title": ""
},
{
"docid": "6b9621b60430f617188f8e6a7a7ba8da",
"text": "You should include the checks you received from the company, invoices you sent, bank statements showing the deposits, and your receipts, if any, you issued to the company. You'd be surprised to know that this is a fairly common tax fraud. You can also try and sue the company or its successor for the missing amounts, but if it has been dissolved it may be difficult. As with any non-trivial tax issue - I suggest you get a professional advice from a EA/CPA licensed in your State. You may need representation before the IRS - only EA, CPA or an Attorney may represent you in IRS proceedings (including audit and correspondence).",
"title": ""
},
{
"docid": "37cc8bdd08df6c1a1e8065e0b6807bbe",
"text": "It all boils down to this: If you don't have a record of what you own before a fire happens, you can't get it after the fire happens. The more records you have, the better. Proof of sales price. Proof of authenticity. Condition. Quantity. If you have to prove value, you'll be glad you have the records. It makes sense also to see what kind of things are not covered. Is art covered? How about coins or jewelry? A stamp collection? Antiques? If replacing these kinds of things is important to you, then make sure you (a) have insurance for it, and (b) can demonstrate its value with your records (purchase receipt, appraisal, etc.)",
"title": ""
},
{
"docid": "5585aaa5c498c78f143339441300c8fa",
"text": "Why not just leave it as is and register as foreign entity in New Mexico? You won't avoid the gross receipts tax, but other than that - everything stays as is. Unless Illinois has some taxes that you would otherwise not pay - just leave it there.",
"title": ""
},
{
"docid": "179865a30346970704317a51f27e3820",
"text": "Do you have any ties to your old address? In particular are you the LANDLORD? This could have been a precursor application to test identity evidence and setup a mortgage. The perps may even have legally changed their name to yours and even be living in, or close to the house if it is a share house to intercept this kind of mail. Otherwise someone's database may have been breached, so it is important you try to work out where this information used in the application came from. If they are an illegal you may be racking up Council Tax somewhere or end up paying income tax on their earnings. In any case your character has probably now been damaged. So do follow it up right smartly.",
"title": ""
},
{
"docid": "28d9aa347dd6586e63001086f0a889da",
"text": "California is very aggressive when it comes to determining residency. While you have a legitimate defense, I suggest talking with a California-licensed CPA or EA practicing in California, which are experienced in dealing with the FTB residency audits.",
"title": ""
},
{
"docid": "23d1fd7eb4061a4e562aef4f5efda6af",
"text": "Such funds are handed over to the state. In NE, like in many states, there is a government website where you can search by your name, find them, and claim them (with proof of your identity, etc.): https://treasurer.nebraska.gov/up/ For sure, the bank cannot just take the money. It is sitting somewhere, the bank just closed the account, meaning they are technically not managing your money anymore.",
"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": "23e4a87d43219cca0d6b24be9ba1747d",
"text": "If this happened, first you would be breaking the law for driving without insurance. Second, my uninsured motorists insurance would cover it. Third, your personal net worth is not zero. You are the owner of all those corporations which happen to own those assets. I could sue you and you would have to liquidate your stakes in those corporations. Your example is just saying someone doesn't have any assets if all their cash is tied up in stocks (equity ownership of corporations). If you're argument held true in court, no one could sue anyone successfully, because everyone would just put all their money in equities before a lawsuit.",
"title": ""
},
{
"docid": "1f5e0eafbf4a4f511c5b3cc702ad1061",
"text": "\"Most likely the bank will keep it on file for a few years then turn it over to the state as \"\"unclaimed property\"\". I can't speak for all states though.\"",
"title": ""
},
{
"docid": "7e62680cb5119476d36137287a51679e",
"text": "This seems very suspicious, as if it were fraud, and not a legitimate collector. Garnishing wages takes a court order. A court would require a bit more proof than a name. Names can easily be common, I know sets of first cousins named after the common grandparent, 4 pairs in my extended family, along with 2 triples. The court would certainly look for a social security number match. Your own credit history will show no activity in that state. A legitimate debt collector would handle this very differently.",
"title": ""
}
] |
fiqa
|
c90a610ca490a15bcf44c0ffa6959715
|
Uncashed paycheck 13 years old
|
[
{
"docid": "bbf0bca0b4f5691d503ffa0bcb7eaca7",
"text": "Under US law, a bank is not obligated to honor a check that is more than six months old. § 4-404. BANK NOT OBLIGED TO PAY CHECK MORE THAN SIX MONTHS OLD. A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is presented more than six months after its date, but it may charge its customer's account for a payment made thereafter in good faith. Note the law says the bank is not OBLIGATED to honor the check, but they are not forbidden from doing so. I don't have a survey on this, but I think most banks won't honor a check after more than 6 months to a year. I've had a few occasions where early in the year someone accidentally wrote the previous year on a check, like on January 10, 2017 they dated the check January 10, 2016, and the bank has given me a hard time about cashing it. The statute of limitations to challenge payment or non-payment of a check is 6 years: § 3-118. STATUTE OF LIMITATIONS. (b) Except as provided in subsection (d) or (e), if demand for payment is made to the maker of a note payable on demand, an action to enforce the obligation of a party to pay the note must be commenced within six years after the demand. I understand your frustration about being denied money that you presumably worked for and earned. But look at it from the other side. Suppose you wrote a check to someone, and years later they still had not cashed it. At some point you'd want to be able to clear this off your bank account. What if you want to close the account? What happens when you die? Would your heirs have to keep this account open for years ... decades ... centuries ... on the possibility that someday someone will cash this check? Realistically, there has to be SOME time limit. 6 months should be plenty of time for someone to make it to the bank with a check. If the company still exists then you could argue they have a MORAL obligation to pay you. If they have records that show that they did indeed give you this check and you never cashed it there'd be no question that you were trying to cheat them. But a moral obligation and a legal obligation are two different things. Legally, they paid you, and it's your problem that you failed to cash the check. You could talk to a lawyer, but if you live in the US, I think you are out of luck. (Of course other countries have different laws.)",
"title": ""
},
{
"docid": "a10fe96aca42c4058c474f1aea797326",
"text": "Even going to small claims court the burden would be on you to prove that they never paid you. The 13 year gap would be the core of the argument by the company that they have no obligation to keep records from 13 years ago. That is far longer than they need to keep them for tax purposes. Even if they sent you a replacement check the next year, that happened to me once, the record of that transaction would have been 12 years ago. The bank will not cash it because of the date being 13 years ago. As we move forward with more and more of the checks being deposited via phone/scanner the banks will be even less likely to handle stale checks because the fact you have the check in your hand doesn't mean it wasn't cashed.",
"title": ""
},
{
"docid": "5ea513054d54b867e7794c67e2ed4338",
"text": "\"If this is in the United States, there are laws governing business behavior when they have recorded expenses (checks, bills, etc) which are never withdrawn or deposited. A business is required to turn over these funds after a certain time frame to the state government as a part of their business tax cycle. (One caveat- these laws vary in age by state, and 13 years is a long time. You might still be out of luck for an amount so old..) There are even businesses which have cropped up to search for \"\"lost money\"\" (for a fee, of course) that your great uncle might have left behind and which now sits in a government holding account somewhere. It's not necessary to go through the third parties though, because the United States posts this information for the world to see. A good starting place is: USA.gov Unclaimed Money Tool Do as much legwork there as you can. You could even attempt to contact the former employer (you said the business accounts still exist) and in a very friendly, non-confrontational manner ask them what their procedures are and would have happened to your paycheck funds. As others have stated, they are under no legal obligation whatsoever to fix your problem for you, but who knows, you could get lucky and they might voluntarily help you out! You're looking for information not cash, so politeness, patience and understanding are your tools. If all else fails, you could try one of these 3rd party services. Here you run into diminishing returns as paying fees to search for money which might not exist just puts you further in the red.\"",
"title": ""
}
] |
[
{
"docid": "a3cfcbf32f2dfe015d7fbd95f4506a79",
"text": "I wish I could up vote your comment more. I think that a lot of people do not understand that kids held minimum wage jobs that paid minimum wages, but adults received more money. At some point kids stopped working as much and adults kept or took over what was traditionally a kids first job. Those first jobs like working at McDonald's were never meant to be the only job a person had.",
"title": ""
},
{
"docid": "ede5ee05e12555948d4b99b7e4d4e0c8",
"text": "\"Well, primarily because that's fraud and fraud prevents a debtor from receiving a discharge in bankruptcy court. Fraud would be pretty easy to prove if you didn't have an income change and you have several lines of credit opened on and around the same day with almost no payments made toward them. Additionally, thanks to the reforms of the bankruptcy code, if your income exceeds the median income of your state you'll be forced in to a Chapter 13 and committed to a repayment plan that allocates all of your \"\"disposable income\"\" to your creditors. Now if whoever posted that will attempt to simply not pay then negotiate repayment plans with their creditors the process will last far longer than 7 years. It takes a long time to be in default for enough time that a consumer creditor will negotiate the debt and this is assuming the creditor doesn't sue you and get a judgement which could apply liens to any property you may own. The judgment(s) will likely cause you to pursue bankruptcy anyway; only now you're at least a few years beyond the point at which you ruined your credit.\"",
"title": ""
},
{
"docid": "e56cdc6054207dc13936e466cdbf7d33",
"text": "\"Bankruptcy should be your last option, and you will find that BK will not resolve most of your problems, and create many more problems. There are two kinds of BK that are available to the average person, Ch13 debt repayment and Ch7 liquidation. Both have severe repercussions and lasting effects on your credit (7-10 years, after discharge). And the calculations required under the 2005 BAPCPA are complex and may require help to understand. Ch7 liquidation is the more severe course, and the trustee would liquidate assets that exceed exemptions (vary by state) to pay your creditors. Ch13 debt repayment is hard, and only 20-25% of those who pursue that route complete the debt repayment plan. Your credit score for either course would suffer greatly (200-250 points) and would remain reduced for years, especially since you would have to rebuild credit. And the law is flawed both in design and execution as there is no reward for successful debt repayment, few finish their repayment plan (20-25%), the mean recovery for unsecured creditors in repayment is zero (thus does not help creditors), and leaves the debtor with damaged credit for years (not a fresh start). Although you may have made some decisions that have placed you in a difficult position, you can find solutions to resolve these problems. You may find that simply learning to make better choices will improve your situation. Take a financial education course (such as the Dave Ramsey course), and learn how to budget, and make better choices. The LearnVest website offers a simple way to budget by dividing budgeting into only three (3) categories with suggested percentages for each, essentials (<50%), financial priorities (>20%), and lifestyle (<30%). The damage to your credit from the derogatory effects of BK would linger for years, but the damage from poor payment history declines much quicker, and loses most of the effect after 2 years (and should you keep the accounts open, leaves you with good history and longer account history), thus the effects decline to minimal after as little as 2 years of good behavior/payment history. Make a plan that prioritizes the debts, and how you will resolve the problem, and work the plan. Based upon the income and debts you mention, the situation you have may not be as bad as it appears. You may be getting bad advice, especially from a debt settlement company that might be more interested in their fees than in your problem. Since you \"\"want to play fair and continue with payments, but when people start to get greedy like this I am ready to just stop caring\"\", you really need two things, a plan, and a friend, someone who you can talk to honestly and openly, and who can support you as you work through the plan you make. Since you \"\"would prefer the option that will give me the most peace of mind and allow me to start saving money as soon as possible\"\", you need to find an approach that fits your goals. Your statement that you \"\"don't plan on ever using credit again\"\", fits with the Dave Ramsey philosophy and resonates with many of us who have learned that those who grant credit are often harsh masters. Now that you have provided more information, the advice below expands upon the above reflecting upon your specific situation. Since you make $62K/year, you may be close to the median income, and the BAPCPA (Bankruptcy Abuse Prevention and Consumer Protection Act of 2005) has a presumption of abuse for filing Ch7 when you have above median income (for your state, check the law). As you may be pushed into Ch13 debt repayment anyway, examine what you could do to repay the debt (over 5 years, 60 months, as that would be a Ch13 repayment duration). Since you have $8K of revolving (unsecured?) debt, that would be repaid in Ch13 over 60 months at about $133/month (no interest), but you would also be paying 10% to the trustee. There might be some portion of your auto debt which is unsecured, and also be repaid unsecured, suppose that is $3000. That would add another $50/month to the plan. The car could be repaid over 60 months (including interest), so you might be repaying $300/month for the car (estimate), although the payment could be higher or lower depending upon how much of the value of the car is unsecured. The trustee might object that the car is too expensive (depends upon the value, and the trustee), and require be liquidated. Since BK excludes relief for student loans, you might find yourself paying the student loans at the same payment. Your $62K income suggests that you have about $4200/month (guess, after taxes). The mortgage payment is higher than 25% ($1050-1100 would be ideal for your income). But after your mortgage payment you should still have about $3900. Even with $300 for credit card debt, $500 for car, and $400 for student loans (guessing), that leaves $2700 for essentials (utilities, food), lifestyle (cellphone, entertainment), and savings. You might find a friend who is good at budgeting who would be willing to help you craft a budget and be your \"\"responsibility partner\"\" to help you stick to the budget. Here is a sample plan (your mileage may vary), Essentials (50%, $2100): $2180 Financial (30%, 1230): $1250 Lifestyle (20%, 840): $500 (pick up slack here, as you have high debt load)\"",
"title": ""
},
{
"docid": "b56c8472893ae0327d62a950e9e7ea4f",
"text": "When I was 18 in 1983, someone making $3.35 minimum wage full-time also could not afford a 2-bedroom apartment in any state. This is why most young people making minimum wage get roommates or live in some sort of communal housing or just live at home with their parents. If you are in your 40s and still making minimum wage, then there are other problems at play.",
"title": ""
},
{
"docid": "bc445ca3f7b768e3442f89ed633a5da6",
"text": "Why don't you get a better serving job? If you have all those years of experience why not bartend at a local or try for PF changs or Cheesecake Factory or something? I'm not trying to be snarky, I've got 13 years in the trenches myself. I just wouldn't work at a tgichilibees at my age or with my experience unless I was on some real hard times.",
"title": ""
},
{
"docid": "3956c2c86f057f543b46d9dd0818fbc8",
"text": "The solution is clear: You need to find a second job and work on the weekends and use that to pay off your debt. You're only 25, you need to scrimp every ounce of your extra energy and pay off your debts by age 30. You can do it by working a second job, and by working harder at your current job and getting promotions and raises.",
"title": ""
},
{
"docid": "eb01e3bf3c9f21fe05fb12e9e05fe780",
"text": "The two do not imply that they are connected. The statement above states that there are plenty of people who graduated and are around 21-25. Then the next statement explains that people who graduated make 100k+ - it doesnt mean they are 21-25.....it just means they achieved two objectives at separate times.",
"title": ""
},
{
"docid": "9247ac42cea1b677ef3ad6d03ff47937",
"text": "A fourteen-year-old can invest a few thousand into commuting to a part-time job or an education. If you can wait five years for a couple hundred you can wait two to four years for a car (or gas money) or a class (or some textbooks.)",
"title": ""
},
{
"docid": "f4896f11a944f6d57641a6383c67637c",
"text": "This is not your problem and you should not try to fix it. If your employer paid money into someone else's account instead of yours they should ask their bank to reverse it and should pay you your wages while they are waiting for this to be done. No bank will let you do anything about money paid by someone else into an account that is not yours, or give you details of someone else's account.",
"title": ""
},
{
"docid": "c3ab9966a76b7e5083e98d3517707b29",
"text": "I wouldn't be too concerned, yet. You're young. Many young people are living longer in the family home. See this Guardian article: Young adults delay leaving family home. You're in good company. Yet, there will come a time when you ought to get your own place, either for your own sanity or your parents' sanity. You should be preparing for that and building up your savings. Since you've got an income, you should – if you're not already – put away some of that money regularly. Every time you get paid, make a point of depositing a portion of your income into a savings or investment account. Look up the popular strategy called Pay Yourself First. Since you still live at home, it's possible you're a little more loose with spending money than you should be – at least, I've found that to be the case with some friends who lived at home as young adults. So, perhaps pretend you're on your own. What would your rent be if you had to find a place of your own? If, say, £600 instead of the £200 you're currently paying, then you should reduce your spending to the point where you can save at least £400 per month. Follow a budget. With respect to your car, it's great you recognize your mistake. We're human and we can learn from our mistakes. Plan to make it your one and only car mistake. I made one too. With respect to your credit card debt, it's not an insurmountable amount. Focus on getting rid of that debt soon and then focus on staying out of debt. The effective way to use credit cards is to never carry a balance – i.e. pay it off in full each month. If you can't do that, you're likely overspending. Also, look at what pensions your employer might offer. If they offer matching contributions, contribute at least as much to maximize the tax free extra pay this equates to. If you have access to a defined benefit plan, join it as soon as you are eligible. Last, I think it's important to recognize that at age 23 you're just starting out. Much of your career income earning potential is ahead of you. Strive to be the best at what you do, get promotions, and increase your income. Meanwhile, continue to save a good portion of what you earn. With discipline, you'll get where you want to be.",
"title": ""
},
{
"docid": "4092581e5dfc9f3941908358653b8cde",
"text": "With a credit card debt at 17%, you should basically not eat in order to pay the balance off. This should be gone within the month. That being said, I would have a hard time reducing my contributions below the 4%, but would certainly do it to the 4%. However, I would also deliver pizzas on nights and weekends and work all available overtime. Coincidentally the pizza place by my home is hiring delivery drivers however, they did not disclose how much they typically make. Only that they make min wage plus tips. Make sure you stop borrowing first, then try to have this knocked out in 4 weeks or less.",
"title": ""
},
{
"docid": "7be13fa59cf116fba48f6e48a8d156b8",
"text": "\"First off learn from this: Never cosign again. There are plenty of other \"\"tales of woe\"\" outlined on this site that started and ended similarly. Secondly do what you can to get off of the loan. First I'd go back to her dad and offer him $1000 to take you off the loan and sign over the car. Maybe go up to $3000 if you have that much cash. If that doesn't work go to the bank and offer them half of the loan balance to take you off. You can sign a personal loan for that amount (maybe). Whatever it takes to get off the loan. If she has a new BF offer him the same deal as the dad. Why do you have to do this? Because you owned an asset that was once valued at 13K and is valued at (probably) less than 4K. Given that you have a loan on it the leverage works against you causing you to lose more money. The goal now is to cut your losses and learn from your mistakes. I feel like the goal of your post was to make your ex-gf look bad. It's more important to do some self examination. If she was such a bad person why did you date her? Why did you enter a business transaction with her? I'd recommend seeking counseling on why you make such poor choices and to help you avoid them in the future. Along these lines I'd also examine your goals in life. If your desire is to be a wealthy person, then why would you borrow money to buy a car? Seek to imitate rich people to become rich. Picking the right friends and mates is an important part of this. If you do not have a desire to be a wealthy person what does it matter? Losing 13K over seven months is a small step in the \"\"right\"\" direction.\"",
"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": "df4a0faa381737651673d571cb03dcf9",
"text": "\"My education on this topic at this age range was a little more free-form. We were given a weeklong project in the 6th grade, which I remember pretty clearly: Fast forward 6 years (we were 12). You are about to be kicked out of your parents' house with the clothes on your back, $1,000 cash in your pocket, your high school diploma, and a \"\"best of luck\"\" from your parents. That's it. Your mission is to not be homeless, starving and still wearing only the clothes on your back in 3 months. To do this, you will find an apartment, a job (you must meet the qualifications fresh out of high school with only your diploma; no college, no experience), and a means of transportation. Then, you'll build a budget that includes your rent, estimated utilities, gasoline (calculated based on today's prices, best-guess fuel mileage of the car, and 250% of the best-guess one-way distance between home and job), food (complete nutrition is not a must, but 2000cal/day is), toiletries, clothing, and anything else you want or need to spend your paycheck or nest egg on. Remember that the laundromat isn't free, and neither is buying the washer/dryer yourself. Remember most apartments aren't furnished but do have kitchen appliances, and you can't say you found anything on the side of the road. The end product of your work will be a narrative report of the first month of your new life, a budget for the full 3 months, plus a \"\"continuing\"\" budget for a typical month thereafter to prove you're not just lasting out the 3 months, and all supporting evidence for your numbers, from newspaper clippings to in-store mailers (the Internet and e-commerce were just catching on at the time, Craigslist and eBay didn't exist yet, and not everyone had home Internet to begin with). Extra Credit: Make your budget work with all applicable income and sales taxes. Extra Extra Credit: Have more than your original $1000 in the bank at the end of the 3 months, after the taxes in the Extra Credit. This is a pretty serious project for a 12-year-old. Not only were we looking through the classified ads and deciphering all the common abbreviations, we were were taking trips to the grocery store with shopping lists, the local Wal-Mart or Target, the mall, even Goodwill. Some students had photos of their local gas station's prices, to which someone pointed out that their new apartment would be on the other side of town where gas was more expensive (smart kid). Some students just couldn't make it work (usually the mistakes were to be expected of middle-class middle-schoolers, like finding a job babysitting and stretching that out full-time, only working one job, buying everything new from clothes to furniture, thinking you absolutely need convenience items you can do without, and/or trying to buy the same upscale car your dad takes to work), though most students were able to provide at least a plausible before-tax budget. A few made the extra credit work, which was a lot of extra credit, because not only were you filling out a 1040EZ for your estimated income taxes, you were also figuring FICA and Social Security taxes which even some adults don't know the rates for, and remember, no Internet. Given that the extra-extra credit required you to come out ahead after taxes (good luck), I can't remember that anyone got that far. The meta-lesson that we all learned? Life without a college education is rough.\"",
"title": ""
},
{
"docid": "7d0f62e24e4ac2cecb3d95ed1baf9dba",
"text": "\"If you earn $160 a week for 26 weeks, are unable to claim yourself, have no other income at all, you will earn $4,160, which falls under the standard deduction, in your case a bit over $4,500; per publication 17, it is $350 above your earned income, to a maximum of $6300 as of 2016. (H/t Hart CO for the reminder.) In that case, if you paid no taxes (at all) last year (either did not file or filed and had 0 tax paid, so got a 100% refund), you could legitimately claim \"\"exempt\"\" by writing that on line 7. However, you would be very close to owing taxes, so if you have any unearned income (interest from bank accounts, dividends from your non-sheltered college fund, etc.), you would possibly owe taxes. You're also going to owe taxes if you have another ~$2150 of earned income from any other source (including things like mowing lawns, tutoring, etc.). Keep all of that in mind if you have any other sources of income other than the above.\"",
"title": ""
}
] |
fiqa
|
a5a5f1728a598a38569c4114fb3df8f0
|
Is there a correlation between self-employment and wealth?
|
[
{
"docid": "adc6e15089c8a3f5d3ae3a5805a15a08",
"text": "In a well-managed company, employees bring more dollars to their employers than the employers pay the employees (salary and benefits). Employees trade potential reward for security (a regular paycheck). Employers take on the risk of needing to meet payroll and profit from the company's income, minus expenses. The potential rewards are much higher as an employer (self or otherwise), so the ones that do make it do quite well. But this is also consistent with your other statement that the reverse is not true; the risk of self-employment is high, and many self-employed people don't become millionaires.",
"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": "d8a17e9673fda9e7ad31cebd8b86c853",
"text": "The key to becoming wealthy as a self-employed person is the drive to be successful. A driven person, who starts their own company (or companies, should they fail), will find success. Assuming that you define success as the accumulation of wealth, then yes, self-employment is correlated with wealth. But as matt mentions in the comments, there is no casual (in the statistical sense) relationship between self-employment and wealth. While I can't say for sure, I would argue that drive is more important that the employment situation.",
"title": ""
},
{
"docid": "a742e8ab8551b0afa3c10b4f7640e5e1",
"text": "Many studies show that the wealthiest households are self employed and small business owners. But there is significant risk associated, and so the wealth cannot really be enjoyed.",
"title": ""
}
] |
[
{
"docid": "e2ce692daf1875916c41f817ea8fb73f",
"text": "\"The fundamental flaw here is conflating net worth with utility, at least failing to recognize that there's a nonlinear relationship between the two. In the extreme example imagine taking a bet that will either make you twice as rich or completely broke. Your expected return is zero, but it would be pretty dumb to take it since being flat broke could ruin your life while being twice as rich may only improve it marginally. In more realistic cases most of your income is tied up in fixed costs, which magnifies relatively small perturbations to your net worth. Losing something essential (like your house or car), even if it's only 20% of your net worth, renders you effectively broke until you scrape together enough cash to get another one. That situation robs you of much more utility than you'd gain from a 20% increase in net worth. In either case, avoiding the risk is completely rational as long as you believe in nonlinear utility as a function of net worth, it's not just an issue of humans being \"\"risk averse\"\".\"",
"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": "9e614453ac44bc8533066e00f59ad5f1",
"text": "\"that's one way to look at it. The point is that the \"\"wealth gap\"\" is a LOT less interesting to me than the \"\"income gap\"\". https://www.glassdoor.com/research/ceo-pay-ratio/ I've got all kinds of respect for people who save their pennies, make wise investments, and derive benefit from those actions. I've got MUCH less respect for a guy/gal who HONESTLY thinks they deserve to make ~$78k / hr.\"",
"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": "b46bf67eed3590fec7a165af77e84c4a",
"text": "\"Well, as they state \"\"the decreases in median net worth appear to have been driven most strongly by a broad collapse in house prices\"\". When you're caught holding an overvalued asset, was your previous worth really a true estimate? A better headline might be \"\"median family wealth corrected to true value after previous accounting errors found.\"\"\"",
"title": ""
},
{
"docid": "0d4cdd04f8a72d8845bcb0ccb5f675ec",
"text": "\"You got some answers that essentially inform you that CEOs that have £200k written on their paysheet may in fact get much more. I'll take the opposite point of view and talk about people who (according to whatever definition) have a £200k/year income. How can they afford it Guess no 1: not all of them can (in the sense that it is quite possible to end up with negative net worth at £200k/year income - particularly if you immediately want to show off with brand new luxury cars, luxury holidays and a large house in a very representative region). Guess no 2: not all of the £200k/year CEOs are equally visible. There is a trade-off between going for wealth, large house, and luxury car. I deliberately ordered the three points according to increased display of \"\"wealth\"\". However, display of wealth usually comes at a cost (in a very monetary sense). And there are ways to get much display without having much wealth (see below: lease the car, also the mortgage on the house usually isn't displayed on the outside). You also need to take into account how long they are already building up wealth. I guess the typical CEO with £200k/year you're asking about did not just finish school and enter his work life in this position. It would be very interesting to see how income, accumulating wealth (and possibly \"\"displayed wealth\"\") correlate. My guess is that the correlation between income and accumulated wealth isn't that high, and the correlation between displayed and actual wealth is probably even lower. they possess luxury cars, large house and huge savings Are you sure these are the same managers? E.g. the ones with the huge savings are and the ones with the luxury cars? I'm asking particularly about the luxury cars, because such cars loose value very quickly and/or are often not owned by the driver but rather by the bank or leasing company. Which on the other hand offers the more savings-oriented CEO who is not that much interested in having a brand new luxury car the possibility to go for a one-year-old and save the rest. Knowing that, your CEO should be able to buy a one-year-old Mercedes SL 350 / year. Or a new one every 1 1/2 years (without building up savings or buying a house). However, building up wealth will be much faster with the CEO going for the one-year-old as the brand-new car option amounts to loosing ca. £20 - 30k within a year. An even-more-savings-oriented CEO who keeps his existing Mercedes 300 TD for another few years, thinking that this conservative choice of car will be trust-inspiring to the customers. Or goes for the SLK thinking that most people anyways don't know that the K between SL and SLK halves the price... However, if you just want to be seen with the car: after an initial payment of say £8-10k, you can get a decent SLK 350 (not the base model, either) at a monthly rate of ca. 600£/month or less than £7k/year. Note however, that this money does not count towards any kind of wealth, it's just renting a nice car. In other words: If driving the SLK 350 is your absolute goal, you could in theory have that with a net salary of £25k/year (according to your tax calculation, that should be somewhere around £35k / year gross), if you have the savings for the initial payment (being able to make the initial payment may also help convincin the leasing company that you're serious about it and able to pay your rates). There are also huge differences in value between large houses, compare e.g. these 2: And, last but not least, there is a decided one-way component in the timing of priorities here: it is much easier to go and get a luxury car when you have savings than first going for the luxury car and then trying to make up with the savings... I forgot to answer the question in the caption of your question: How do I build wealth By going on to live as if your income were only £50k (as far as that is compatible with your job) - I gather the median gross income in the UK is about £30k, so aiming at £50k leaves you a very comfortable budget for luxury spending. If you want to build up wealth faster, adjust that. In general, if you can manage to withhold much of any income increase from spending, that will help (trivial but powerful truth). From the leasing calculation you can conclude that you basically have no chance to show off your wealth by luxury cars. That is, you'd need to go for luxury cars that are completely incompatible with with building if you want to show your built up wealth by the car: there are too many people who even destroy their existing wealth in order to display luxury. At least if anyone is around who has either a correct idea what luxury cars cost (or don't cost) or will look that up in the internet. Also, people who know such things may also have the idea that the probability that such a car was downright paid (wealth) is small compared to the probability of meeting a leased or (mortgaged) car. Which means, the plan to show off doesn't work out that well with the people you'd want to impress. As for the other people: just a bit of display you can get far cheaper: If you really want to drive the SLK, rent it for an occasion (weekend) rather than for years. I met a sales manager who told me which rental cars they get when important customers from far east are visiting. The rest of the year they drive normal business cars. You may want to choose a rental company that doesn't write their name on the license plate. Apply the same ideas to the decision of buying a house. Think about what you want for yourself, and then look where you can get how much of that for how much money. Oh, and by the way: if I understand correctly, the average UK CEO wage is £120k, not £200k.\"",
"title": ""
},
{
"docid": "b59b8bcec3ce603a925a99d968e6ff9f",
"text": "The Chinese corporate sector doesn't really have a crazy amount of debt compared to developed countries. And households even less. What people are concerned about is how quickly it is rising, not the actual amount. And also the structure of the debt. (And how much of it isn't captured and reported.) But to answer your question, the two factors you mention are positively correlated, not negatively as you postulate. The more assets you have, the higher the odds you are able to repay and the more debt lenders are willing to give you. But debt tends to be measured relative to income not wealth and this is another reason Chinese household wealth may be overstated.",
"title": ""
},
{
"docid": "f54dcd1c8d8f89bebab265d18693b6a1",
"text": "I mean, that self made stat has been disproven enough times to count it as laughable when people like you still tout it all about. That self made aspect doesn't mean what youd like to imply it means when you dive into the data. Bill Gates is a perfect example of this. So is Bezos",
"title": ""
},
{
"docid": "0ebdfe4ade818d0840a54870502ca32a",
"text": "More likely I miswrote. Yes, we're talking about capital gains. But who, outside of the moneyed elite, have enough capital gains to incur substantial taxes? Many don't and never will despite how hard they work or how productive they are. Also, doesn't taxing income more than capital gains discourage production? I always hear how high capital gains tax discourages investment and growth.",
"title": ""
},
{
"docid": "06a64bb266aaeb2e9eb528cf6d423bd0",
"text": "\"See comment on how \"\"self made\"\" bill gates is, and he's probably legitimately one of the more self made people to make that list. \"\"Self\"\" made people come from very wealthy families. If I give you a loan of a million bucks to make a company and financially support you for two years while you wait for the business to make money you're still \"\"self made\"\". Just view how they calculate it. It's horse shit\"",
"title": ""
},
{
"docid": "6abc80a58b79b8439f96e75f78cb81e8",
"text": "Yes. It is luck that person will have no debilitating accidents or illness to give them crippling medical debt. It is luck that provides us with our family. It is skill that lets us choose trustworthy and resourceful people in our lives, but it is luck that they remain so. It is luck that those investments provide a healthy return, that the companies hire prudent management and do look to cheat their investors. Personal responsibility is all about choices, right? Those choices are only as good as the information and resources available. Access to resources and information is quite clearly not equal, and therefore the choices we make are built on foundations of chance. Too many people in America have a nasty habit asking people to tie their own shoes with one hand tied behind their back (or cut off), and blaming them when they trip.",
"title": ""
},
{
"docid": "8bb6f2fa37a7dadb2eecc6d87c3f65f2",
"text": "\"In theory, the idea is that diversified assets will perform differently in different circumstances, spreading your risk around. Whether that still functions in practice is a decent question, as the \"\"truth\"\" of most probability based arguments for diversification rely on the different assets being at least somewhat uncorrelated. This article suggests that might not be true. Specifically: The correlations we note among industry sectors are profoundly and dysfunctionally high. and Gold and silver traders have gotten too used to the negative correlation trade with stocks. This is, in fact, an unusual relationship for precious metals tostocks. The correlation should actually be zero.\"",
"title": ""
},
{
"docid": "aca61a80dd93ea592d394c954c87c63b",
"text": "While I agree that luck has something to do with it, most of the successful business owners also put in crazy long hours and submitted themselves to huge financial risk in order to get their businesses started. I do not say this to mean there is no luck; there is always an element of luck. But you cannot get lucky if you aren't at the right place at the right time, and sometimes arriving at that place and trying to get lucky takes much more than people realize. Edit: some people are interpreting this to say that only successful business owners work hard. This is not what I am saying.",
"title": ""
},
{
"docid": "ab0c1e82e1e9f0cc6156e8c9f7686003",
"text": "Well, yes. Lewis (and anybody) is presuming that you accept take advantage of good fortune. In his own example, though, he wasn't in any way prepared to go into finance. Having gotten there, and established himself even, he pitched it in favor of writing a book. Neither of those examples supports everyone calling luck the result of work plus brains.",
"title": ""
},
{
"docid": "3ad8021feefe60621434a1ed3c5d1ddf",
"text": "Is this really a net effect of concentration of wealth? When so few people hold all the money, you need more money to keep the system running. Imagine we need 10 trillion to keep the economy running. If 1000 people hold 50%, you effectively need 5 trillion just to keep the economy running. It is somewhat ironic that the last time we had full employment was basically the real estate bubble where tons of money was dumped into the system by liar loans with no credit check. Not saying we want to go back there, but perhaps we need that level of money in the system to get full employment. If we want to get there safely, we need to buy back our debt, invest more in our infrastructure and provide more services. This is the only way we are going to get full employment",
"title": ""
}
] |
fiqa
|
515878210bfb9735281b3cd2bcbb7be1
|
Tax benefits of recycling
|
[
{
"docid": "6d7a39e18fe7359a500344b8b5016f82",
"text": "If they charge a fee to accept an item, it's reasonable to assume the item has insignificant value, so the only tax-deductible bit would be the money you donated to their charity. What you describe sounds like a fee for service, not a charitable donation. The organization should provide a fee breakdown to show what percentage (if any) of the fee is a deductible contribution. There could be some additional PA-only tax benefit, but I didn't come across anything in my brief search.",
"title": ""
},
{
"docid": "e61c8109a1e48bc8a6820e7f65ba1659",
"text": "They are certainly only suggesting that the money you pay to recycle the bulbs is tax deductible as a donation, assuming that they are indeed a 501(c)(3) non-profit. Donations of goods are only deductible at fair market value. Light bulbs that no longer light up have no market value, so only the payment could possibly be deductible.",
"title": ""
},
{
"docid": "d56026a893ddab464ed4c737bcc2dcdd",
"text": "If a business incurs expenses in the process of its trading, generally those expenses are deductible. Disposing of waste is generally held to be a deductible expense.",
"title": ""
}
] |
[
{
"docid": "2b56498bf511fe7fa1d202fb2eff296a",
"text": "This will always be the case unless the tax relief is more than the expenditure, which it never is. There are some ways in which this can become worth it: if the thing you are spending the money on would actually be useful, of it you might be able to sell it for more than four dollars later - or if you can claim a government grant or similar for more than four dollars. And at the level of corporate finance it can get more complicated. But otherwise, No.",
"title": ""
},
{
"docid": "a5280605812e2385284b2802e8d5a509",
"text": "Do Alice and Bob have to figure out the fair market value of their services and report that as income or something? Yes, exactly that. See Topic 420. Note that if the computer program is for Bob's business, Bob might be able to deduct it on his taxes. Similarly, if the remodeling is on Alice's business property, she might be able to deduct it. There might also be other tax advantages in certain circumstances.",
"title": ""
},
{
"docid": "690a6d2d2c6751e41efe65b56e1a5876",
"text": "Most items used in business have to be depreciated; you get to deduct a small fraction of the cost each year depending on the lifetime of the item as per IRS rules. That is, you cannot assume a one-year life for an electronic item even if it will be obsolete in three months. Some items can be expensed; you get to deduct the entire cost in the first year but then if you don't stay in business, e.g. you get a job paying wages and are no longer self-employed, you have to recapture this and pay taxes on the amount recaptured in the later year. With respect to consumer-type electronics such as an iPad or laptop, it helps to have a separate item for personal use that you can show in case of an audit.",
"title": ""
},
{
"docid": "cfcbc865e377e9eed35445892b998966",
"text": "You're last paragraph sums up what I mean exactly. Businesses will continue to make investments that try think make sense. Taxes have an pact on what makes sense. This combo is what we should be discussing. Thanks for adding to the conversation.",
"title": ""
},
{
"docid": "1c7beebb3549c75c9dd76f80232f5e9c",
"text": "What you are looking for is a 1031 exchange. https://www.irs.gov/uac/like-kind-exchanges-under-irc-code-section-1031 Whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free. You may also sell your house for bitcoin and record the sales price on the deed with an equal or lesser amount that you bought it for.",
"title": ""
},
{
"docid": "9dadcaf1b7aff5c3555a19c51de29974",
"text": "The CPA's mention of $2,500 is probably referring to the recently increased de minimis safe harbor under the final tangible property regulations (used to be $500) without an applicable financial statement. The IRS will not challenge your choice of expense or capitalization on amounts on or below $2500 if you elect the de minimis safe harbor election on your return. However, you must follow whatever you're doing for your books. (So if you are capitalizing your laptops for book purposes, you would also need to capitalize for tax purposes). Section 179 allows you to expense property that you would have otherwise have had to capitalize and depreciate. Section 179 can be annoying, especially if your LLC is treated as a passthrough, because there are recapture provisions when you dispose of the asset too early. For the tax return preparer, it makes the return preparation much more simple if there are no fixed assets to account for in the first place, which is quite possible if you are expensive all items/invoices less than $2,500.",
"title": ""
},
{
"docid": "dfa6cd1c8ac900289f0601b56e554dc8",
"text": "They do give tax breaks for efficient furnaces, tankless water heaters, even LED lights. Homeowners can use their interest deduction to buy such items. There have been huge tax breaks for electric cars too. Are you serious right now?",
"title": ""
},
{
"docid": "6108ef904d7a74b2cc7775255c47bb06",
"text": "I ran a plastic recycling plant with my dad about 10 years ago and the techniques or operations are still the same. The beauty of the plastic industry is that the market is extremely under served. The market is so under served that many of the big processors across the country will lease the machinery to you to process the material they send to you and let you pay for the machinery by processing some of their inventory for them. Recycling is a lucrative industry. I still have my old business plan if you are interested. You have a major player there in Northern Cali. Let's talk [email protected]",
"title": ""
},
{
"docid": "1e4586a0d2adf51d94c2a45d74c1ad2d",
"text": "My dad owned a steel Drum / barrel recycling company where we would get barrel from food companies and recondition them. Sometimes we would get drums from one company for free and they would call us to buy drums, many times we would sell them the same drums that we got from them for FREE. That's the beauty of recycling. After some time we started doing plastic drums and we had to find a way to salvage the plastic drums that we were not able to refurbish. So we started contacting plastic companies and started talking to a company in Middle Tennessee. He was a huge plastic processor that was shipping hundreds of thousands tons of plastic regrind every week. He was from India and had a huge plant about 70 miles from Memphis were I was living. He would process the plastic rods or shanks here in the U.S. and ship them too be made into products in India. I was in the process of securing a processing machine from him, one from a company in Northern California, and one from a company in Florida. All three where going to place a processing machine in my dads plant in Memphis and create a coast to coast pipeline with Memphis as the center point. They where going to let us pay for the machinery by paying us to process a percentage of their plastic since much of it was coming through Memphis. That way all they had to do was ship the material once it arrived from our plant. Since Memphis is the gateway to the west and a main truck route it was perfect. This type of arrangement is easy to make if you can convince the major players that you can deliver their product as promised. I also made arrangements with the processor close to me to relocate 2 of his employees to Memphis to manage the equipment until we got failure with the equipment and act as liaison for him. He was agreeing to everything I asked because it would have relieve production pressure off his employees and help him with his bottom line. Make sure you investigate the type of machines you need to process the many types of plastics your processor needs or wants. There are different types of plastics and different ways of processing it. #1 – PET (Polyethylene Terephthalate) ... #2 – HDPE (High-Density Polyethylene) ... #3 – PVC (Polyvinyl Chloride) ... #4 – LDPE (Low-Density Polyethylene) ... #5 – PP (Polypropylene) ... #6 – PS (Polystyrene) I also know that California has a lot of air quality laws. What I would do is get to know your local EPA reps and run your plans by them, they will be able to tell you all you can and can't do. Also you processor is going to want to see your Feasibility Study and business plan before he does this type of arrangement. Once you let me know if this is something that you are still interested in doing I will send you my old business plan. Here is a video to really get an idea of what's involved https://youtu.be/vAr4BZM_Tzk",
"title": ""
},
{
"docid": "598447d7fc5f43f2a053c5c29cf3c2a4",
"text": "It's called bartering and the IRS has a page titled Four Things to Know About Bartering. The summary is - The bottom line is this is taxable.",
"title": ""
},
{
"docid": "76b55af2775772c8110da4c1f45acab8",
"text": "Yeah, the VAT adds more fairness between who gets the taxes, but is only offset by it being more complicated and needing more bureaucracy. I think it's an interesting idea. If I were a policy analyst I'd like to see what costs are vs. benefit.",
"title": ""
},
{
"docid": "145d8cf762769c52f00716bde4c9129a",
"text": "There is a positive not being mentioned above: the depreciation vs your regular earned income. Disclaimer: I am not a tax attorney or an accountant, nor do I play one on the internet. I am however a landlord. With that important caveat out of the way: Rental properties (and improvements to them) depreciate in value on a well-defined schedule. You can claim that depreciation as a phantom loss to lower the amount of your taxable regular income. If you make a substantial amount of the latter, it can be a huge boon in the first few years you own the property. You can claim the depreciation as if the property were new. So take the advice of a random stranger on the internet to your accountant/attorney and see how much it helps you.",
"title": ""
},
{
"docid": "c736826887aa913f0544388ca51db098",
"text": "If the building has no income, it also probably has minimal expenses. The heat, water and electricity costs are nearly zero. They are letting the value depreciate, and taking it off the taxes. I also suspect the condition of the building is poor, so any effort to make the building productive would be very costly. Many cities combat this by setting the tax on empty buildings or empty lots at a much higher rate. Or they set the value of the property at a high valuation based on what it could generate. Sometimes this is only targeted at some sections of the city to encourage development. They also offer tax breaks when the owner of a house has the house as their principal residence.",
"title": ""
},
{
"docid": "460d9b7f54847c2d1d61cf029e7a866c",
"text": "\"If this is an issue of opportunity cost then there is a benefit. Mortgage interest rates are extremely low, low enough that they can effectively be used to indirectly fund investments. If one stores equity in a house, ie \"\"pays it off\"\", then that wealth returns only the rate of growth of the house less expenditures. If one borrows against the house to fund investments, then the above stated returns which on average exceed the mortgage interest rate can be augmented by the investments, yielding a greater return. The tax benefit is more of a cherry on top. If one is using this as a justification to spend then it is frivolity.\"",
"title": ""
},
{
"docid": "69979e52c592f1b1dfeb64442c298034",
"text": "I wrote a detailed article on Tax Loss Harvesting to show the impact on returns. For my example, I showed a person in the 15% bracket. In years with no loss, they trade to capture gains at 0% long term rate, thus bumping their basis up. In years with losses, they tax harvest for a 15% effective 'rebate' on that loss. I showed how for the lost decade 2000-2009, a buy and hold would have returned -1% CAGR, but the tax loss harvester would have gained 1% (just 1% for the decade, not CAGR), ending the decade with no loss. As one's portfolio grows, the math changes. You can only take $3000 capital loss against ordinary income, and my example relies on the difference between taking a gain for free but using a loss to offset income. Note, the higher earner would take gains at 15%, but losses at 25%, but only for the relatively small portfolio. The benefit for them is to use loss harvesting to offset gains, less so for ordinary income. As the other answer state, Wealthfront can aid you to do this with no math on your part.",
"title": ""
}
] |
fiqa
|
698931f544874749580906da536ad56e
|
What is the lifespan of a series of currency?
|
[
{
"docid": "1954c05331040b02cb1ab7f1ada311a5",
"text": "In general, currency has no expiration date. Specifically, in Canada, the Bank of Canada has been issuing banknotes since 1935, and these are still considered legal tender, even though they don't look much like the modern banknotes. Before that, Canadian chartered banks issued currency, and these also still have value. However, there are a few things to note. First of all, with currency of that age, it often has more value as a collector's item than the face value. So spending it at a store would be foolish. Second, store clerks are not experts in old currency, and will not accept a bill that they do not recognize. If you want the face value of your old currency, you may need to exchange it for modern currency at a bank. Having said all that, there are certainly cases where currency does expire. Generally this happens when a country changes currency. For example, when the Euro was introduced, the old currencies were discontinued. After a window of exchange, the old currency in many cases lost its value. So if you have some old French Franc notes, for example, they can no longer be exchanged for Euros. These types of events cannot be predicted in the future, of course, so it is impossible to say when, if ever, the Canadian currency you have today will lose its spending value in Canada.",
"title": ""
},
{
"docid": "b7640319b1c12b9083eb1af33680b292",
"text": "US currency doesn't expire, it is always legal tender. I can see some trouble if you tried to spend a $10,000 bill (you'd be foolish to do so, since they are worth considerably more). Maybe some stores raise eyebrows at old-style $100's (many stores don't take $100 bills at all), but you could swap them for new style at a bank if having trouble with a particular store. Old-series currency can be an issue when trying to exchange US bills in other countries, just because it doesn't expire here, doesn't mean you can't run into issues elsewhere. Other countries have different policies, for example, over the last year the UK phased in a new five pound note, and as of last month (5/5/2017) the old fiver is no longer considered legal tender (can still swap out old fivers at the bank for now at least). Edit: I mistook which currency you took where, and focused on US currency instead of Canadian, but it looks like it's the same story there.",
"title": ""
},
{
"docid": "03791a37f88fb667d6c14705ea1d4c3f",
"text": "\"Currency lives no more then 50 years. US currency did not expire in last 100 years, but it was reinstated few times, last one was 2009. Note that currency is not just what you hold in your hand. Currency is system of relations of money supply (currency is not money but we forced to use standard terminology), banking rules and government policy. Currency exists as long as government wants it to. In 2009 for example, US government decided it needs new currency and just printed whole new money supply. So US dollar is now counting as \"\"partially fresh new currency\"\". It was reinstated. Not expired. But today's dollar is totally different from 90s and 00s. Will it be accepted after 200 years? Yes (probably). But most likely at that time there will be totally new US dollars. And new Euros, new Pounds and so on. Currency is method of transfer. You can have that physical coins you have, but as economic agent it will die very quickly. It is not only related to inflation, in fact, inflation is the least of your worries. If you count all currencies in the world which ever existed, most of them 99.99% are completely dead by now (with governments which supported it). Not even single one currency which lived more then 100 years. US dollar was reinstated in 1860, 1907, 1930, 1973, 1987, 2009 and in fact it is not single currency but dozen which were allowed to be used \"\"for compatibility reasons\"\".\"",
"title": ""
}
] |
[
{
"docid": "031daa43ef28ab8f0178cc542cea1d56",
"text": "\"Since you want to know exactly what \"\"yield\"\" means, let's get all the details of the security down first. Treasury Bills are 0-1 year and do not pay interest/coupons. The yield comes from buying the T-Bill at a discount. For example, you buy a T-Bill for $99 and it pays $100 when it matures, and the yield over that holding period is 1/99. When people talk about \"\"yield\"\" they are generally talking about annualized yield unless stated otherwise. Treasury Notes are 2-10 years. They pay interest semi-annually. Treasury Bonds are 20-30 years and they also pay interest semi-annually. Again, \"\"yield\"\" is typically the annualized yield, or the two semi-annual interest payments added together (without compounding). These have interest payments so they are typically sold at par. They may trade a premium/discount afterwards. TIPS pay a constant coupon rate, but the principal is adjusted up and down with inflation.\"",
"title": ""
},
{
"docid": "332c7311f705acec1dd28a25e372bdce",
"text": "I'd have anything you would need for maybe 3-6 months stored up: food, fuel, toiletries, other incidentals. What might replace the currency after the Euro collapses will be the least of your concerns when it does collapse.",
"title": ""
},
{
"docid": "1b8b1ccf5da9d12db5f771d27f4f5d92",
"text": "Echoing JohnF, and assuming you mean the physical, rather than abstract meaning of money? The abstract concept obviously isn't replaced (unless the currency is discredited, or like the creation of the Euro which saw local currencies abandoned). The actual bits of paper are regularly collected, shredded (into itty-bitty-bits) and destroyed. Coinage tends to last a lot longer, but it also collected and melted down eventually. Depends on the country, though. No doubt, many people who took a gap year to go travelling in points diverse came across countries where the money is a sort of brown-grey smudge you hold with care in thick wadges. The more modern economies replace paper money on a dedicated cycle (around three years according to Wikipedia, anyway).",
"title": ""
},
{
"docid": "ba960eb7f7436e5f3824be9fad756a02",
"text": "If you're willing to use OFX or QIF files, most Canadian banks can spit output more data than 90 days. The files are typically used to import into Quicken-like local programs, but can be easily parsed for your webapp, I imagine.",
"title": ""
},
{
"docid": "76f805fba133d2272947714245b4c446",
"text": "As the value of a currency declines, commodities, priced in that currency, will rise. The two best commodities to see a change in would be oil and gold.",
"title": ""
},
{
"docid": "de76dd8be879644dd6aff119fe53a486",
"text": "Money itself has no value. A gold bar is worth (fuzzy rushed math, could be totally wrong on this example figure) $423,768.67. So, a 1000 dollars, while worthless paper, are a token saying that you own %.2 of a gold bar in the federal reserve. If a billion dollars are printed, but no new gold is added to the treasury, then your dollar will devalue, and youll only have %.1 percent of that gold bar (again, made up math to describe a hypothetical). When dollars are introduced into the economy, but gold has not been introduced to back it up, things like the government just printing dollars or banks inventing money out of debt (see the housing bubble), then the dollar tokens devalue further. TL;DR: Inflation is the ratio of actual wealth in the Treasury to the amount of currency tokens the treasury has printed.",
"title": ""
},
{
"docid": "a6e67df494d70bb86bbc203462decd2a",
"text": "Coins have the minimum value of the metal they are made from. Bank notes (paper money) would only be valuable when it becomes rare. And there isn't a good way to predict how quickly something like Zimbabwe dollars will become rare (that I know of at least).",
"title": ""
},
{
"docid": "6057489b63d4a6078034e2f58b3fe5f7",
"text": "I'm not sure, but I think the monetary system of Second Life or World of Warcraft would correspond to what you are looking for. I don't think they are independent of the dollar though, since acquiring liquidity in those games can be done through exchange for real dollars. But there can be more closed systems, maybe Sim type games where this is not the case. I hope this helps.",
"title": ""
},
{
"docid": "c5c814615f9c906e4ab3664358d56153",
"text": "Currencies today are mostly just paper with perceived value. Gold and silver aren’t the same as modern monies because there is an actual finite amount in the world. Paper money is technically infinite and can be used to control the value of it to that end such as quantitative easing. The question is is Bitcoin like paper currency? In which case things that affect paper money would effect it with some exceptions. Or is it like gold and silver in that there is a finite amount? That’s for people who know more about it than me but I have heard terms like mining bitcoin and stuff... I was thinking about investing in bitcoins too.",
"title": ""
},
{
"docid": "b45f748a0c31dd76eb6f670978f51320",
"text": "Fist money does not have legal tender. And technically there are thousands of people willing to fight for bitcoin, who can be seen as an army so in that logic bitcoin has some intrinsic value. But both don't have intrinsic value. Most sources on the internet I can find agree with that. Wikipedia, investopedia and many others. Not that money needs intrinsic value. If the market value is 1000 times above the intrinsic value then the intrinsic value is not even relevant. But 1000 * 0 = 0 and the intrinsic value of the dollar itself (not coins) will always be 0. Same for the EUR and then YUAN.",
"title": ""
},
{
"docid": "7e087c06ec9a617707d80075a5f8175b",
"text": "It depends on what actions the European Central Bank (ECB) takes. If it prints Euros to bail out the country then your Euros will decline in value. Same thing with a US state going bankrupt. If the FED prints dollars to bailout a state it will set a precedent that other states can spend carelessly and the FED will be there to bail them out by printing money. If you own bonds issued by the bankrupting state then you could lose some of your money if the country is not bailed out.",
"title": ""
},
{
"docid": "d8d1a7ed650bccb30e84e1f254b57628",
"text": "\"Currencies that are pegged or fixed require that foreign currencies are held by the central issuer at a proportional amount. This is analogous to having a portfolio of currencies that the central bank issues shares from - in the form of its own currency. We will continue with this analogy, if the central bank says these \"\"shares\"\" are worth $1, but the underlying components of the portfolio are worth $0.80 and decreasing, then it is expensive for the central bank to maintain its peg, and eventually they will have to disregard the peg as people start questioning the central bank's solvency. (People will know the $1 they hold is not really worth what the central bank says it is, because of the price changes people experience in buying goods and services, especially when it comes to imports. Shadow economies will also trade using a currency more reflective of labor, which happens no matter what the government's punishments are for doing so). Swiss National Bank (central bank) did this in early 2015, as it experienced volatility in the Euro which it had previously been trying to keep it's currency pegged to. It became too expensive for it to keep this peg on its own. The central bank can devalue its currency by adjusting the proportions of the reserve, such as selling a lot of foreign currency X, buying more of currency Y. They can and do take losses doing this. (Swiss National Bank is maintaining a large loss) They can also flood their economy with more of their currency, diluting the value of each individual 1 dollar equivalent. This is done by issuing bonds or monetizing goods and services from the private sector in exchange for bonds. People colloquially call this \"\"printing money\"\" but it is a misnomer in this day and age where printers are not relevant tools. The good and service goes onto the central bank's balance book, and the company/entity that provided the service now has a bond on its book which can be immediately sold to someone else for cash (another reading is that the bond is as good as cash). The bond didn't previously exist until the central bank said it did, and central banks can infinitely exchange goods and services for bonds. Bond monetization (also called Quantitative Easing) is practiced by the Federal Reserve in the United States, Bank of Japan, European Central Bank and now the Central Bank of the Republic of China\"",
"title": ""
},
{
"docid": "b5cb9014490f54e93bdd3c759e17a493",
"text": "Granted, currencies don't have intrinsic value. Cryptocurrency is worse than government currencies in a few ways: - it costs real resources to produce - no institution keeps values stable - values are volatile in practice In those respects, crypto is more similar to a precious metal than a currency. Except it's worse than precious metals too, as metals have some intrinsic value. Crypto won't be able to overcome these disadvantages to compete with government-issued currencies in the long term. It might compete with gold long term. There are a lot of nuts and gold bugs in the world, and crypto might live on in that fringe space.",
"title": ""
},
{
"docid": "dc23dc0b3a9f674b1d90cdb84f98052a",
"text": "This was such a wonderful and clear explanation. It has helped me to understand (at 28) a concept that I have always been a bit murky on. I would feel safe making the bet that you are a teacher of some sort. I would find it extremely interesting to hear you thoughts on why we don't use the gold standard anymore. Do you work in finance?",
"title": ""
},
{
"docid": "7be13fa59cf116fba48f6e48a8d156b8",
"text": "\"First off learn from this: Never cosign again. There are plenty of other \"\"tales of woe\"\" outlined on this site that started and ended similarly. Secondly do what you can to get off of the loan. First I'd go back to her dad and offer him $1000 to take you off the loan and sign over the car. Maybe go up to $3000 if you have that much cash. If that doesn't work go to the bank and offer them half of the loan balance to take you off. You can sign a personal loan for that amount (maybe). Whatever it takes to get off the loan. If she has a new BF offer him the same deal as the dad. Why do you have to do this? Because you owned an asset that was once valued at 13K and is valued at (probably) less than 4K. Given that you have a loan on it the leverage works against you causing you to lose more money. The goal now is to cut your losses and learn from your mistakes. I feel like the goal of your post was to make your ex-gf look bad. It's more important to do some self examination. If she was such a bad person why did you date her? Why did you enter a business transaction with her? I'd recommend seeking counseling on why you make such poor choices and to help you avoid them in the future. Along these lines I'd also examine your goals in life. If your desire is to be a wealthy person, then why would you borrow money to buy a car? Seek to imitate rich people to become rich. Picking the right friends and mates is an important part of this. If you do not have a desire to be a wealthy person what does it matter? Losing 13K over seven months is a small step in the \"\"right\"\" direction.\"",
"title": ""
}
] |
fiqa
|
1b511cce58cb85b8ea2a5fac15649edd
|
Is there a financial benefit for buyers from using community currencies?
|
[
{
"docid": "7ffc83534ed9f045e2e4f6a6b3b400b1",
"text": "Short answer: NO, there is no financial benefits for you to expect in a local currency even if some might give tiny discounts on local sales. Local currencies are attractive for small business or communities, they are perfectly legal and starting to be popular in a lot of places. Local currencies encourage individuals and businesses to exchange goods and services locally. Using them is like investing in your community. It could give you the feeling of doing something good for your community. Check this article for a discussion on the subject. They should not be considered investments. Local currencies do not offer the same financial security and some could be like monopoly money, but that would be another subject or question to debate. So, to summarize: no money to be made for your personal use, but some real social and financial benefits for your community. Would'nt that be a kind of personal benefit for you ?",
"title": ""
}
] |
[
{
"docid": "15404acf93f7162857cc0bc696e09b11",
"text": "\"There are firms that let you do this. I believe that Saxo Bank is one such firm (note that I'm not endorsing the company at all, and have no experience with it) Keep in mind that the reason that these currencies are \"\"exotic\"\" is because the markets for trading are small. Small markets are generally really bad for retail/non-professional investors. (Also note: I'm not trying to insult Brazil or Thailand, which are major economies. In this context, I'm specifically concerned with currency trading volume.)\"",
"title": ""
},
{
"docid": "29891229a6cd740290149c10ec1cbff3",
"text": "\"Perhaps it's the terminology \"\"fee\"\" that makes it a little confusing. I'm not sure whether it's due legislation or if it's tradition but banks and money changers in my country don't charge \"\"fees\"\". Instead they advertise separate prices for buying and selling money. For example they'd normally advertise: USD, we buy: 4.50, we sell: 4.65. It's a business. Just like selling cars or lemonade selling money only makes sense if you sell it at a higher price than what you bought it for. Regardless of what you call it it's the profit margin for the seller.\"",
"title": ""
},
{
"docid": "4e30ca5efd5d21101a2e6d781d8bcf48",
"text": "Some personal finance packages can track basis cost of individual purchase lots or fractions thereof. I believe Quicken does, for example. And the mutual funds I'm invested in tell me this when I redeem shares. I can't vouch for who/what would make this visible at times other than sale; I've never had that need. For that matter I'm not sure what value the info would have unless you're going to try to explicitly sell specific lots rather than doing FIFO or Average accounting.",
"title": ""
},
{
"docid": "38a479e3fac8a4d4deb5d8caa993d72a",
"text": "\"Having savings only in your home currency is relatively 'low risk' compared with other types of 'low diversification'. This is because, in a simple case, your future cash outflows will be in your home currency, so if the GBP fluctuates in value, it will (theoretically) still buy you the same goods at home. In this way, keeping your savings in the same currency as your future expenditures creates a natural hedge against currency fluctuation. This gets complicated for goods imported from other countries, where base price fluctuates based on a foreign currency, or for situations where you expect to incur significant foreign currency expenditures (retirement elsewhere, etc.). In such cases, you no longer have certainty that your future expenditures will be based on the GBP, and saving money in other currencies may make more sense. In many circumstances, 'diversification' of the currency of your savings may actually increase your risk, not decrease it. Be sure you are doing this for a specific reason, with a specific strategy, and not just to generally 'spread your money around'. Even in case of a Brexit, consider: what would you do with a bank account full of USD? If the answer is \"\"Convert it back to GBP when needed (in 6 months, 5 years, 30, etc.), to buy British goods\"\", then I wouldn't call this a way to reduce your risk. Instead, I would call it a type of investment, with its own set of risks associated.\"",
"title": ""
},
{
"docid": "61613f9d8b9dd2efa33ee36ade8f02a6",
"text": "\"To speak to this a little more broadly: apart from groups like hedge funds and other investors investing for purely speculative purposes, one of the major purposes of forwards (and, for that matter, futures) for companies in the \"\"real economy\"\" is to \"\"lock in\"\" a particular price in advance (or to reduce the risk of some kind of investment or transaction). Investopedia defines a currency forward as follows (with a few key points emphasized): [A currency forward is] a binding contract in the foreign exchange market that locks in the exchange rate for the purchase or sale of a currency on a future date. A currency forward is essentially a hedging tool that does not involve any upfront payment. The other major benefit of a currency forward is that it can be tailored to a particular amount and delivery period, unlike standardized currency futures. This can be a major advantage for planning and risk management purposes. For example, if I know I'm going to have to pay $1 million USD in the future and most of my revenue is in Euros, the actual amount I'll have to pay will vary based on the exchange rate between Euros and dollars. Thus, it's very worthwhile for me to be able to \"\"lock in\"\" a particular exchange rate so that I know exactly how much I'm going to pay relative to my projected revenue. The goal isn't necessarily to make money off the transaction (maybe they do, maybe they don't) as much as to reduce risk and improve planning ability. The fact that it doesn't involve an up-front payment is also a major advantage. It's usually a bad practice to \"\"sit on\"\" cash for a year if you can avoid it. Another key point: savings accounts pay less interest than inflation. If inflation is 3% and your savings account pays 1%, that looks remarkably like a guaranteed 2% loss to me.\"",
"title": ""
},
{
"docid": "a784e06e0738e08af5368a14b5afae86",
"text": "There's another dimension here as currency conversion isn't necessarily the final answer. As stated by others, converting money between the three should theoretically end up with the exact same value, less transactional costs. However the kink is that the price of most products are not updated as the currencies change. In many cases the price difference is such that even accounting for shipping and exchange fees, purchasing a product from a distributor in a foreign country can be cheaper than just picking it up at the local store. You might even be able to take advantage of this when purchasing at a single store. If that store is set up to accept multiple currencies then it's a matter of looking at the conversion rates the moment you are buying and deciding which one is the cheapest route for you. Of course, this generally will not work for smaller purchases like a cup of coffee or a meal. Primarily because the fee for the exchange might eclipse any savings.",
"title": ""
},
{
"docid": "7c5e4cc3f975021d306cac2f5730af64",
"text": "It's very simple. Use USDSGD. Here's why: Presenting profits/losses in other currencies or denominations can be useful if you want to sketch out the profit/loss you made due to foreign currency exposure but depending on the audience of your app this may sometimes confuse people (like yourself).",
"title": ""
},
{
"docid": "e61919cc2567f96df4868a9c4de17281",
"text": "At any instant, three currencies will have exchange rates so if I know the rate between A and B, and B to C, the A to C rate is easily calculated. You need X pounds, so at that moment, you are subject to the exchange rate right then. It's not a deal or bargain, although it may look better in hindsight if the currencies move after some time has passed. But if a currency is going to depreciate, and you have the foresight to know such things, you'd already be wealthy and not visiting here.",
"title": ""
},
{
"docid": "b350243d1a7fea34bb88edd7d11f0aa0",
"text": "All institutions, financial or otherwise, seek to maximize profits. In a free market, each bank would price its services to be competitive with the current state of the market. Since the currency conversion fee is generally a small part of the decision as to which bank to choose, banks can be non-competitive in this area. If this is an important consideration for you then you would need to find a bank with a lower conversion fee, but be prepared to have higher fees in other areas. TL;DR: The market bears it.",
"title": ""
},
{
"docid": "a854b7f1fb9a4c4cbd73fad4b1fced68",
"text": "Essentially imported goods from the country (in this case the US) that is improving against your local currency will become more expensive. For the most part, that is the only practical effect on you on an individual financial level.",
"title": ""
},
{
"docid": "614f000308e628a7beaebe5b18c56020",
"text": "Thanks for your reply! I presume then if I don't convert back (say I spend everything) then it's much the same. So my main consideration should be whether I think the currency will increase or decrease in my time away if I'm converting back",
"title": ""
},
{
"docid": "bffafb1c110a47aebd15ce939c82941e",
"text": "This is more of an economics question than personal finance. That said, I already started writing an answer before I noticed, so here are a few points. I'll leave it open for others to expand the list. Advantages Disadvantages Advantages Disadvantages The flip-side to the argument that more users means more stability is that the impact of a strong economy (on the value of the currency) is diluted somewhat by all the other users. Indeed, if adopted by another country with similar or greater GDP, that economy could end up becoming the primary driver of the currency's value. It may be harder to control counterfeiting. Perhaps not in the issuing country itself, but in foreign countries that do not adopt new bills as quickly.",
"title": ""
},
{
"docid": "27b7f7ddd7fa9a188b864065a49e34de",
"text": "I don't follow Bitcoin but that seems like a really good service to offer to businesses. It protects their money and it nets out a commission (presumably) on each transaction. Plus, it helps create more acceptance of Bitcoin as a currency which leads to more transactions. Brilliant really.",
"title": ""
},
{
"docid": "d51b9616110f5402fe4bb70de5b97b68",
"text": "\"In my experience working at a currency exchange money service business in the US: Flat fees are the \"\"because we can\"\" fee on average. These can be waived on certain dollar values at some banks or MSBs, and sometimes can even be haggled. If you Google EURUSD, as an example, you also get something like $1.19 at 4pm, 9/18/2017. If you look at the actual conversion that you got, you may find your bank hit you with $1.30 or something close to convert from USD to Euro (in other words, you payed 10% more USD per Euro). And, if you sell your Euro directly back, you might find you only make $1.07. This spread is the real \"\"fee\"\" and covers a number of things including risk or liquidity. You'll see that currencies with more volatility or less liquidity have a much wider spread. Some businesses even go as far as to artificially widen the spread for speculators (see IQD, VND, INR, etc.). Typically if you see a 3% surcharge on international ATM or POS transactions, that's the carrier such as Visa or Mastercard taking their cut for processing. Interestingly enough, you also typically get the carrier-set exchange rate overseas when using your card. In other words, your bank has a cash EURUSD of $1.30 but the conversion you get at the ATM is Visa's rate, hence the Visa fee (but it's typically a nicer spread, or it's sometimes the international spot rate depending on the circumstances, due to the overhead of electronic transactions). You also have to consider the ATM charging you a separate fee for it's own operation. In essence, the fees exist to pad every player involved except you. Some cards do you a solid by advertising $0 foreign exchange fees. Unfortunately these cards only insulate you from the processing/flat fees and you may still fall prey to the fee \"\"hidden\"\" in the spread. In the grander scheme of things, currency exchange is a retail operation. They try to make money on every step that requires them to expend a resource. If you pay 10% on a money transaction, this differs actually very little from the mark-up you pay on your groceries, which varies from 3-5% on dry food, to 20% on alcohol such as wine.\"",
"title": ""
},
{
"docid": "f223389ac294be1c02dff830429e81dd",
"text": "First question: Any, probably all, of the above. Second question: The risk is that the currency will become worth less, or even worthless. Most will resort to the printing press (inflation) which will tank the currency's purchasing power. A different currency will have the same problem, but possibly less so than yours. Real estate is a good deal. So are eggs, if you were to ask a Weimar Germany farmer. People will always need food and shelter.",
"title": ""
}
] |
fiqa
|
99a586d1db037e95b31b269f976bdf3d
|
What is the difference between the asset management division in an investment bank and an investment company?
|
[
{
"docid": "47511a8da9d1996e2c74fb9a799faffd",
"text": "I would say that there is no real difference. Asset management companies that is part of large banking groups usually seat in separate entities and operate independently from the rest of the bank. Assuming proper procedures (and regulators usually check that) are in place they will not share information with the rest of the bank and their assets are clearly segregated from the rest of the bank. They have the same fiduciary duties as an independent AM and are probably using the broker/dealer services of other banks as well as their parent. Reputation is a key issue for banks and conflict of interests are usually managed properly. Independence also comes and goes. The corporate history of Neuberger Berman is a good example. Neuberger Berman was once an independent asset manager. In 2003, it merged with Lehman Brothers, thus loosing its independence. When Lehman went bankrupt in 2008, NB did not join its parent company in bankruptcy and did not lose the assets of its clients. The company continued to operate until it was acquired by the management. Finally it is mostly a question of marketing and positioning.",
"title": ""
}
] |
[
{
"docid": "e784c91a357f8a6f43b6cecad1872133",
"text": "My uncle successfully manages a portfolio for an investment firm in New York. I believe he works with somewhere around 2.5 billion dollars, mostly endowments from schools and other funds like that. I know that he had to work very hard to get where he is today but he's been rewarded with excellent compensation and a lot of freedom to do his job how he sees fit.",
"title": ""
},
{
"docid": "7f7ed281d9e2247fd4711722f1855ffd",
"text": "Private Equity is simply some type of an investment company, which is owned in a way not accessible to the public. ie: Warren Buffet runs Berkshire Hatheway, which is an investment company which itself is traded on the New York Stock Exchange. This means that anyone can buy shares in the company, and own a small fraction of it. If Warren Buffet owned all the shares of Berkshire Hatheway, it would be a Private Equity company. Note that 'Equity' refers to the ownership of the company itself; a private investment company may simply buy Bonds (which are a form of Debt), in which case, they would not be technically considered a 'Private Equity' company. A Hedge Fund is a very broad term which I don't believe has significant meaning. Technically, it means something along the lines of an investment fund (either public or private) which attempts to hedge the risks of its portfolio, by carefully considering what type of investments it purchased. This refers back to the meaning of 'hedge', ie: 'hedging your bets'. In my opinion, 'Hedge Fund' is not meaningfully different from 'investment fund' or other similar terms. It is just the most popular way to refer to this type of industry at the present time. You can see the trend of using the term 'investment fund' vs 'hedge fund' using this link: https://trends.google.com/trends/explore?date=all&q=hedge%20fund,investment%20fund Note that the high-point of the use of 'hedge fund' occurred on October 2008, right at the peak of the global financial crisis. The term evokes a certain image of 'high finance' / 'wall-street types' that may exploit various situations (such as tax legislation, or 'secret information') for their own gain. Without a clear definition, however, it is a term without much meaning. If you do a similar comparison between 'hedge fund' and 'private equity', you can see that the two correlate very closely; I believe the term 'private equity' is similarly misused to generally refer to 'investment bankers'. However in that case, 'private equity' has a more clear definition on its own merits.",
"title": ""
},
{
"docid": "81fd34136db8af0881a1428438fb5726",
"text": "\"Index funds may invest either in index components directly or in other instruments (like ETFs, index options, futures, etc.) which are highly correlated with the index. The specific fund prospectus or description on any decent financial site should contain these details. Index funds are not actively managed, but that does not mean they aren't managed at all - if index changes and the fund includes specific stock, they would adjust the fund content. Of course, the downside of it is that selling off large amounts of certain stock (on its low point, since it's being excluded presumably because of its decline) and buying large amount of different stock (on its raising point) may have certain costs, which would cause the fund lag behind the index. Usually the difference is not overly large, but it exists. Investing in the index contents directly involves more transactions - which the fund distributes between members, so it doesn't usually buy individually for each member but manages the portfolio in big chunks, which saves costs. Of course, the downside is that it can lag behind the index if it's volatile. Also, in order to buy specific shares, you will have to shell out for a number of whole share prices - which for a big index may be a substantial sum and won't allow you much flexibility (like \"\"I want to withdraw half of my investment in S&P 500\"\") since you can't usually own 1/10 of a share. With index funds, the entry price is usually quite low and increments in which you can add or withdraw funds are low too.\"",
"title": ""
},
{
"docid": "4cec3ef51a22422e79fd6f350848ec70",
"text": "Reading the descriptions on Amazon.com it appears Investments is a graduate text and Elements of Investments is the undergraduate version of the text.",
"title": ""
},
{
"docid": "c7a0db3a6ebee00e142ce84292f72158",
"text": "There are two basic issues here. First, there is the difference between accounting terms and their dictionary definitions. Second, once you dig into it there are dichotomies similar to put vs call options, long sales vs short sales, bond yield vs interest rate. (That is, while they are relatively simple ideas and opposite sides of the same coin, it will probably take some effort to get comfortable with them.) The salient points from the Wikipedia article on debits and credits: In double-entry bookkeeping debit is used for increases in asset and expense transactions and credit is used for increases in a liability, income (gain) or equity transaction. For bank transactions, money deposited in a checking account is treated as a credit transaction (increase) and money paid out is treated as a debit transaction, because checking account balances are bank liabilities. If cash is deposited, the cash becomes a bank asset and is treated as a debit transaction (increase) to a bank asset account. Thus a cash deposit becomes two equal increases: a debit to cash on hand and a credit to a customer's checking account. Your bank account is an asset to you, but a liability to your bank. That makes for a third issue, namely perspective.",
"title": ""
},
{
"docid": "2bc6f8bc8f09c67ea95d522896ed8f58",
"text": "Put simply: Financial Services provides or facilitates access to capital in some capacity, and are companies unto themselves (TD Ameritrade, Goldman Sachs, Bank of America, etc), this also includes accounting companies which provide financial information, and insurance companies that deal with risk. Corporate Finance is part of all businesses in any industry (So for example Starbucks has a finance department, and those employees are doing corporate finance), and plans how to use capital to fund a company's projects and make sure there is sufficient cash on hand as it's needed for daily operations. Corporate Finance interacts with Financial Services to access the capital needed to fund the business's activities.",
"title": ""
},
{
"docid": "503261d5bff005c524a8682b785a5b54",
"text": "International equity are considered shares of companies, which are headquartered outside the United States, for instance Research in Motion (Canada), BMW (Germany), UBS (Switzerland). Some investors argue that adding international equities to a portfolio can reduce its risk due to regional diversification.",
"title": ""
},
{
"docid": "d9363e182020d78bdc5050c5969a94da",
"text": "\"The balance sheet for a bank is the list of assets and liabilities that the bank directly is responsible for. This would be things like loans the bank issues and accounts with the bank. Banks can make both \"\"balance sheet\"\" loans, meaning a loan that says on the balance sheet - one the bank gains the profits from but holds the risks for also. They can also make \"\"off balance sheet\"\" loans, meaning they securitize the loan (sell it off, such as the mortgage backed securities). Most major banks, i.e. Chase, Citibank, etc., could be called \"\"balance sheet\"\" banks because at least some portion of their lending comes from their balance sheet. Not 100% by any means, they participate in the security swaps extensively just like everyone does, but they do at least some normal, boring lending just as you would explain a bank to a five year old. Bank takes in deposits from account holders, loans that money out to people who want to buy homes or start businesses. However, some (particularly smaller) firms don't work this way - they don't take responsibility for the money or the loans. They instead \"\"manage assets\"\" or some similar term. I think of it like the difference between Wal-Mart and a consignment store. Wal-Mart buys things from its distributors, and sells them, taking the risk (of the item not selling) and the reward (of the profit from selling) to itself. On the other hand, a consignment store takes on neither: it takes a flat fee to host your items in its store, but takes no risk (you own the items) nor the majority of the profit. In this case, Mischler Financial Group is not a bank per se - they don't have accounts; they manage funds, instead. Note the following statement on their Services page for example: Mischler Financial Group holds no risk positions and no unwanted inventory of securities, which preserves the integrity of our capital and assures our clients that we will be able to obtain bids and offers for them regardless of adverse market conditions. They're not taking your money and then making their own investments; they're advising you how to invest your money, or they're helping do it for you, but it's your money going out and your risk (and reward).\"",
"title": ""
},
{
"docid": "34480337053b524ffb7b54a83e1dde6b",
"text": "\"A fund is a portfolio, in that it is a collection, so the term is interchangeable for the most part. Funds are made up of a combination of equities positions (i.e., stocks, bonds, etc.) plus some amount of un-invested cash. Most of the time, when people are talking about a \"\"fund\"\", they are describing what is really an investment strategy. In other words, an example would be a \"\"Far East Agressive\"\" fund (just a made up name for illustration here), which focuses on investment opportunities in the Far East that have a higher level of risk than most other investments, thus they provide better returns for the investors. The \"\"portfolio\"\" part of that is what the stocks are that the fund has purchased and is holding on behalf of its investors. Other funds focus on municipal bonds or government bonds, and the list goes on. I hope this helps. Good luck!\"",
"title": ""
},
{
"docid": "30d8cfeb8bae5fd75350f26e5852946c",
"text": "the difference is whose money is being invested. when you deposit money in a bank, it is FDIC insured and capital requirements are set to ensure the preservation of your deposits. if the bank wants to make huge derivative bets, with leverage inherent in the instrument or provided by another bank, deposits are involved in the equation.",
"title": ""
},
{
"docid": "d68b02b590f00b6b9e569a4648f50fa8",
"text": "\"For US stocks it's a bit of a gamble. Many actively managed funds underperform the market indexes, but some of them outperform in many years. With an index you will get average results. With an active manager you \"\"might\"\" do better than average. So you can view active management as a higher risk, potentially higher reward investment approach. On the other hand, if you want to diversify some of your investments into international stocks, bonds, junk bonds, and real estate (REITs) active management is highly likely to be better than indexing. For these specialized areas specialized knowledge and research is needed.\"",
"title": ""
},
{
"docid": "e1712afdad5c21cbba461f9e26c7cb02",
"text": "The main difference between a mutual fund and an ETF are how they are bought and sold (from the investors perspective). An ETF is transacted on the open market. This means you normally can't buy partial shares with your initial investment. Having to transact on the open market also means you pay a market price. The market price is always a little bit different from the Net Asset Value (NAV) of the fund. During market hours, the ETF will trade at a premium/discount to the NAV calculated on the previous day. Morningstar's fund analysis will show a graph of the premium/discount to NAV for an ETF. With a mutual fund on the other hand, your investment goes to a fund company, which then grants you shares while under the hood buying the underlying investments. You pay the NAV price and are allowed to buy partial shares. Usually an ETF has a lower expense ratio, but if that's equal and any initial fees/commissions are equal, I would prefer the mutual fund in order to buy partial shares (so your initial investment will be fully invested) and so you don't have to worry about paying premium to NAV",
"title": ""
},
{
"docid": "8627b383cbdb6db68614a5784acb1870",
"text": "In view of business, we have to book the entries. Business view, owner and business are different. When capital is invested in business by owner, in future business has to repay it. That's why, capital always credit. When we come about bank (business prospective) - cash, bank, fd are like assets which can help in the business. Bank is current asset (Real account) - Debit (what comes into the business) Credit (what goes out of the business) Hence credit and debit differs from what type of account is it.... credit - when business liables debit - what business has and receivables",
"title": ""
},
{
"docid": "f3439297b29f6ed71eb08afad392cfde",
"text": "I used to work for blackrock, although not in the finance side of the house. Which coast are you on? There's still a big difference in culture - west coast used to be BGI and was acquired in 2009, doubling the size of the company.",
"title": ""
},
{
"docid": "5b611488d1d23e35fd8b1e3ed248e14f",
"text": "\"Asset management typically refers to the \"\"product\"\" group e.g. Mutual fund, etf, etc., like invesco offering qqq or some emerging market mutual fund. Capital management is more vague and can refer to a wide range of financial products and services including asset management and stuff like ptfl planning, wealth advisory etc. That said they are both used interchangeably and not like anyone would correct you if you used one vs the other...\"",
"title": ""
}
] |
fiqa
|
5c6547866b53ffdebad3de0077a7fed8
|
Can I depreciate a car given to me?
|
[
{
"docid": "6215fdd9bea0719ad1c30f5dc8684f14",
"text": "That seems to indicate that you can in fact depreciate a vehicle given to you? Section 1015 discusses the calculation of basis for gifted property, it says nothing about depreciation. Personal property cannot be depreciated for tax purposes unless it is used for business purposes. So unless you drive your car as part of your sole-proprietor business, you cannot depreciate it, be it a gift or a car you purchased yourself. If you can depreciate the car, then sec. 1015 is used to calculate the basis for the depreciation.",
"title": ""
},
{
"docid": "116d04b82e742b0ca8785f85fceddc5f",
"text": "Yes, you can depreciate gifts to your business subject to the special rules in § 1011 and Regulation § 1.1011–1 and 1.167(g)–1. It is dual basis property so when you sell the item your gain/loss basis will be different. Adjusted basis of the donor for gain, FMV on the date received for the loss. Minus any depreciation you add, of course, in both cases.",
"title": ""
}
] |
[
{
"docid": "85003e0414cf9df7ca49bf330b63a9ab",
"text": "\"Short answer: Absolutely not, unless you're comfortable with putting years of your labor into a depreciating asset that will incur hefty maintenance costs over its remaining life. i.e. consider your 10K gone forever once you buy the car, and then some. Some comments on your reasons: \"\"Keeping up with spoiled brats\"\" is a losing proposition, and is a mindset counterproductive to financial independence. I'd encourage you to find a way to not care about how the spoiled brats live their lives. It won't be easier when you're older and you see your peers driving fancy cars and living fantasy lifestyles that you are tempted to emulate. Break the impulse to \"\"keep up\"\" and you'll be in a much better place. A used BMW may not be a piece of junk at first, but once you hit 100K miles, everything will suddenly fall apart and need repair. Been there myself. Still have the car after 7 years, only because very few people want to buy a high-mileage German sport sedan with recurring maintenance issues. See #2. It will be a good drive for a while, then it will own you. This is not so bad when you have a decent amount of savings, but when you have nothing, it's very hard to truly enjoy the car while knowing that any problems not covered by warranty will be financially devastating. Are you prepared to ride the bus for 4 weeks while saving enough income from work to replace a bad clutch? I had to do this, and it's not something I brag about.\"",
"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": "1cf24b5d8cfb72fb8f040d7974afa9d5",
"text": "I have sold cars before to individuals and always just received cash. I would think as long as the amount is less than $10,000.00 and the buyer is serious they will get there with the cash. Of course there is no possible way to guarantee the cash will not be counterfeit.",
"title": ""
},
{
"docid": "a6c4ae5dec040649e1cfeea63f1c9ee3",
"text": "Obviously, the best thing financially would be to continue using your present car, unless it impacts you financially on a regular basis. For example, maintenance or breakdowns impacting your ability to work. An unreliable car also impacts your freedom, for example preventing you from taking road-trips you might want to take or taking up free time with maintenance. Give thought to what it is about your present car that you dislike, both to determine the value you gain from a new car and what's most important to you. Anytime you buy a car, you generally lose thousands of dollars simply driving it off the lot. This is the profit which goes to dealers, salespeople, etc... and not part of the actual value of the car. Cars also depreciate over time, with most of the depreciation happening in the first few years of operation. Many of the newer model cars have additional expenses. (For example, replacement $200 keys or electronic systems that can only be repaired at special facilities.) In addition, if you have insurance (other than the minimum third-party required by law), consider the rate increases and add up the long-term impact of that. Imagine you had invested that money instead at 8% interest over the lifetime of the car. If you don't have insurance, consider what you would do in the unfortunate situation where you were at fault in a collision. Could you afford to lose your investment? Even with safe responsible driving, there is always the potential for road/weather conditions or mechanical failures. If you determine there is sufficient value to be gained from changing vehicles, I would recommend that you buy a vehicle with history from someone privately, doing appropriate background checks and consulting friends or family who know about vehicles and can provide feedback. Do research into the models which interest you ahead of time, read online reviews. Every vehicle generally has known advantages and disadvantages which can take years to discover, so buying an older vehicle gives you the advantage of knowing what to expect. I would say there is probably a reasonable middle ground between using a 1991 vehicle you don't like (that's as old as you are) and getting a relatively new model. Look at what you value in the vehicle, consider all the costs, and find the balance that works best for you. Vehicles from 2000-2005 years are quite affordable and still 10-15 years newer than your car.",
"title": ""
},
{
"docid": "7be13fa59cf116fba48f6e48a8d156b8",
"text": "\"First off learn from this: Never cosign again. There are plenty of other \"\"tales of woe\"\" outlined on this site that started and ended similarly. Secondly do what you can to get off of the loan. First I'd go back to her dad and offer him $1000 to take you off the loan and sign over the car. Maybe go up to $3000 if you have that much cash. If that doesn't work go to the bank and offer them half of the loan balance to take you off. You can sign a personal loan for that amount (maybe). Whatever it takes to get off the loan. If she has a new BF offer him the same deal as the dad. Why do you have to do this? Because you owned an asset that was once valued at 13K and is valued at (probably) less than 4K. Given that you have a loan on it the leverage works against you causing you to lose more money. The goal now is to cut your losses and learn from your mistakes. I feel like the goal of your post was to make your ex-gf look bad. It's more important to do some self examination. If she was such a bad person why did you date her? Why did you enter a business transaction with her? I'd recommend seeking counseling on why you make such poor choices and to help you avoid them in the future. Along these lines I'd also examine your goals in life. If your desire is to be a wealthy person, then why would you borrow money to buy a car? Seek to imitate rich people to become rich. Picking the right friends and mates is an important part of this. If you do not have a desire to be a wealthy person what does it matter? Losing 13K over seven months is a small step in the \"\"right\"\" direction.\"",
"title": ""
},
{
"docid": "38ec38eaad11c8b8a112cf547e69262e",
"text": "I think you're dancing with the line here, this question is hard to back up without opinions and could really be three different questions. I'm going to push aside the part about quality and reliability, that could be an emotional subject. So from a price standpoint, there's virtually no disagrement that it makes financial sense to buy a used car instead of a new car. The majority of new cars lose the majority of their resale value within the first year or two. If you purchase said car after someone else has used it for the first two years, you just avoided all of that depreciation yourself, and you're still going to be purchasing a perfectly reliable car as long as you are diligent in the buying process.",
"title": ""
},
{
"docid": "c4454d8ffce998d225e20eb9e5771fb5",
"text": "It isn't common to lose that much value in 3 years, but it is possible. If you don't take care of small dents, scratches, etc., you can quickly reduce the value far beyond what you might expect looking at graphs. Another big factor is the trim level of the car that you purchase. If you spend $30,000 for the highest trim level of a car, instead of $22,000 for the lowest trim level, the higher trim car could lose 50% of it's value while the lower trim car loses only 35%. There's no way to know why the OP of your linked question had such a large loss, but again, that's not the usual experience. It is definitely a good idea to consider used though.",
"title": ""
},
{
"docid": "c9fbcff82a0a01ff954a2c75351c5c23",
"text": "I'm guessing Toronto? Sell the car! Use public transit. Save a ton of money. You can always rent a car for the day or weekend (or use a service like Uber) when necessary at a fraction of the cost of car ownership, and feel good about it!",
"title": ""
},
{
"docid": "c8662bc7a394e496f275a26d98462aee",
"text": "Of course you do. You can sell it, wreck it, do whatever you want with it. Of course, some things may void warranty, or whatever, but since you do in fact own the vehicle, it is technically yours to do with as you please. Did you know that you can bore the engine of a car to increase performance? Not saying you should, there are lots of pros and cons there, and it requires an individual with specialized knowledge to do it, who you will have to pay for his service, but it is doable. Should you be upset that this wasn't already done by the manufacturer? Did you know that lots of vehicles are equipped with gps functionality? If your car can display a compass, there is a decent chance that you already have the basics of what you need to set up gps in the vehicle. Should you be upset that your vehicle doesn't have gps? But you can't boil it down that far. Well, I suppose you can, but it makes everything cost more for everyone. When you buy a Tesla, you aren't just buying a car. You are buying into the company. They make updates, fix programming issues, etc. and this requires access. They chose to market their vehicles differently, and so they sell them differently. Alternatively, they could have 2 separate assembly lines, one for the 60 (discontinued) and one for the 75. Now this will equate to both cars costing significantly more than they currently do, but hey, at least you have the right battery, right?",
"title": ""
},
{
"docid": "c3bc0e3ea7c70a92c9fe0bad50a0ad3a",
"text": "\"The transfer is easy. Usually you just sign over the title to the new owner, and you're set. Blue book price is a fantasy designed to get you in a car dealership to trade in your car. You won't get \"\"blue book\"\" pricing. I would use NADA \"\"Yellow Book\"\" or Edmunds TMV pricing as a guide. A dealer won't pay you a good price, but will take the car off your hands quickly. Selling a car privately can be a real pain if you don't have the personality for it. You'll get more money and more hassle. Figure out where people do private party sales in your area. In my area, there's an autotrader magazine that dominates the market. Craigslist is going to attract the types of people who frequent craiglist, which is not always a good thing.\"",
"title": ""
},
{
"docid": "ee60151939fc8a15f134d44755e021c1",
"text": "$27,000 for a car?! Please, don't do that to yourself! That sounds like a new-car price. If it is, you can kiss $4k-$5k of that price goodbye the moment you drive it off the lot. You'll pay the worst part of the depreciation on that vehicle. You can get a 4-5 year old Corolla (or similar import) for less than half that price, and if you take care of it, you can get easily another 100k miles out of it. Check out Dave Ramsey's video. (It's funny that the car payment he chooses as his example is the same one as yours: $475! ;) ) I don't buy his take on the 12% return on the stock market (which is fantasy in my book) but buying cars outright instead of borrowing or (gasp) leasing, and working your way up the food chain a bit with the bells/whistles/newness of your cars, is the way to go.",
"title": ""
},
{
"docid": "46f295dd712175146f902bb3afbad09b",
"text": "\"You are still paying a heavy price for the 'instant gratification' of driving (renting) a brand-new car that you will not own at the end of the terms. It is not a good idea in your case, since this luxury expense sounds like a large amount of money for you. Edited to better answer question The most cost effective solution: Purchase a $2000 car now. Place the $300/mo payment aside for 3 years. Then, go buy a similar car that is 3 years old. You will have almost $10k in cash and probably will need minimal, if any, financing. Same as this answer from Pete: https://money.stackexchange.com/a/63079/40014 Does this plan seem like a reasonable way to proceed, or a big mistake? \"\"Reasonable\"\" is what you must decide. As the first paragraph states, you are paying a large expense to operate the vehicle. Whether you lease or buy, you are still paying this expense, especially from the depreciation on a new vehicle. It does not seem reasonable to pay for this luxury if the cost is significant to you. That said, it will probably not be a 'big mistake' that will destroy your finances, just not the best way to set yourself up for long-term success.\"",
"title": ""
},
{
"docid": "715380f95aaedb38a91ca6a8d595aded",
"text": "\"I do not think you are missing much. One thing you have right is low cost cars depreciate almost nothing. One thing you are missing is your satisfaction index. Driving a 200K car for 4 years requires a bit of motivation when your friends are driving new cars. Typically you need a larger goal to keep you focused. That might be saving money, getting out of debt, or obtaining an education. Buying a car from a private party, Craigslist is only one source, can save both parties money as the \"\"middle man\"\" is cut out. If you have the ability to do so, one can save a lot of money by doing your own brakes. The info is up on youtube, and I typically \"\"earn\"\" between 100-300/hour doing this work myself. Most of the time warranties do not pay off. At the core, they are insurance and insurance companies are in the business to make money. If your car is likely to need repairs a policy may be unattainable or very high in price.\"",
"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": "aded402bd51de6c5e624d61882af5c79",
"text": "I'm not a lawyer and someone more knowledgeable than I will probably respond to this inquiry. I worked with nonprofits for years however. My suggestion would be that the Board would have a resolution allowing the Director to approve any contract below a certain dollar amount.",
"title": ""
}
] |
fiqa
|
0ab7e47342fdc148de6636475dada4d7
|
New Pooled Registered Pension Plan details?
|
[
{
"docid": "2e5228f376c81b614558f5d162247f48",
"text": "The general idea of the PRPP is so that small business who cannot afford to offer a plan alone will be able to pool resources with others along with self-employed to create voluntary, defined-contribution pension plans that would be managed by private sector financial institutions. The PRPP concept would offer more options to individuals as well as small and medium-sized businesses - Tax Rules for Pooled Registered Pension Plans You can also find an overview here THE NEW PRPP – A Pension for the Pension-Less",
"title": ""
}
] |
[
{
"docid": "c2985abf51365c0748e889c837755967",
"text": "I question the reliability of the information you received. Of course, it's possible the former 401(k) provider happened to charge lower expense ratios on its index funds than other available funds and lower the new provider's fees. There are many many many financial institutions and fees are not fixed between them. I think the information you received is simply an assumptive justification for the difference in fees.",
"title": ""
},
{
"docid": "028df917647481b5d4e19cbb323afd32",
"text": "\"I would want a clause that says you can't endanger my portfolio, but that would never happen I guess. I've just started what I hope to be a long and successful career and I'm considering opting out of the company pension and managing it myself. Some economics people want to make this an \"\"every man for himself\"\" situation. Right now I pay $400 per month into a pension, and at any point it may not exist. I don't think I'm alone in the idea that I can manage my own portfolio at least as well as that, and my own pension will stay with me no matter what, no matter how many companies I work for.\"",
"title": ""
},
{
"docid": "02bc3370105404e706e80c2703d57fb1",
"text": "Are these PFIC rules new? No, PFIC rules are not new, they've been around for a very long time. what would that mean if a person owned a non-US company stock, like a company in Europe that makes chocolate? Is that considered assets that produces passive income? No. But if a person owned a non-US company stock like a company that holds a company that makes chocolate - that would be passive income. this is non-US mutual funds that hold foreign shares, like a mutual fund in India, not a US fund which owns Indian stocks? Non-US fund. For those of you who are tax advisors, is the time length (30 hours) true for filing form 8621? I would suggest not to fill this form on your own. Find a tax adviser specializing on providing services to expats, and have her do this. 30 hours for a person who has never dealt with taxes on this level before is probably not enough to learn all about PFIC, the real number is closer to 300 hours. While ZeroHedge article may be a sales pitch, PFIC rules should frighten you if they apply to your investments. Do not take them lightly, as penalties are steep and if you don't plan ahead you may end up paying way too much taxes than you could have.",
"title": ""
},
{
"docid": "715a11027b9155f44bab80231c88d933",
"text": "Pensions in the UK are a real free-for-all. A few years ago, the government introduced stakeholder pensions to try and simplify things, but if anything it's just made things more complex. To give you an idea, everyone has access to a Basic state retirement pension, but there's also SERPS (state earnings related pension scheme) and the State second pension provided by the government. Then in the private sector there are the aforementioned Stakeholder pensions, Self Invested Personal Pensions, Final salary occupational pension schemes and Money purchase occupational pension schemes. For a good summary, take a look at this excellent Times article and for more details, have a look at the Pensions in the United Kingdom Wikipedia page or browse around the Which? retirement section or the moneysavingsexpert pensions pages. The main things to look out for are whether your company offers a defined benefits scheme, or a money purchase scheme where they offer pay additional contributions or offer to match your additional contributions. Either of these are likely to be better than just buying a money purchase scheme pension privately.",
"title": ""
},
{
"docid": "a7c209e1b5df83af93c35d1c0a9e196c",
"text": "I'm no expert in this, so this is a legit question. Are 401Ks and pension plans considered HFT or buy & hold? If HFT, would exception rates be beneficial? Or would we want to encourage those groups to reduce frequency as well?",
"title": ""
},
{
"docid": "be08d0c6a4da19a79000124e82331b20",
"text": "\"Let's not trade insults. I understand defined benefit plans better than you think. Of course offering a lump-sum payout NOW is better for the company. If you think of the lifetime value of the pension, then yeah, it's \"\"worse\"\" for the recipient... but exactly like lottery winners, this is just a question of my personal discount rate. Maybe I want/need that money now, and value it more now than I would in 10/20/30 years. So it's a question for each individual to decide.\"",
"title": ""
},
{
"docid": "66c2e069c3503182b76c10aac73e22e5",
"text": "Thanks to the other answers, I now know what to google for. Frankfurt Stock Exchange: http://en.boerse-frankfurt.de/equities/newissues London Stock Exchange: http://www.londonstockexchange.com/statistics/new-issues-further-issues/new-issues-further-issues.htm",
"title": ""
},
{
"docid": "7d96ffa27caec8d874570b6eff6a9c68",
"text": "\"The portfolio described in that post has a blend of small slices of Vanguard sector funds, such as Vanguard Pacific Stock Index (VPACX). And the theory is that rebalancing across them will give you a good risk-return tradeoff. (Caveat: I haven't read the book, only the post you link to.) Similar ETFs are available from Vanguard, iShares, and State Street. If you want to replicate the GFP exactly, pick from them. (If you have questions about how to match specific funds in Australia, just ask another question.) So I think you could match it fairly exactly if you wanted to. However, I think trying to exactly replicate the Gone Fishin Portfolio in Australia would not be a good move for most people, for a few reasons: Brokerage and management fees are generally higher in Australia (smaller market), so dividing your investment across ten different securities, and rebalancing, is going to be somewhat more expensive. If you have a \"\"middle-class-sized\"\" portfolio of somewhere in the tens of thousands to low millions of dollars, you're cutting it into fairly small slices to manually allocate 5% to various sectors. To keep brokerage costs low you probably want to buy each ETF only once every one-two years or so. You also need to keep track of the tax consequences of each of them. If you are earning and spending Australian dollars, and looking at the portfolio in Australian dollars, a lot of those assets are going to move together as the Australian dollar moves, regardless of changes in the underlying assets. So there is effectively less diversification than you would have in the US. The post doesn't mention the GFP's approach to tax. I expect they do consider it, but it's not going to be directly applicable to Australia. If you are more interested in implementing the general approach of GFP rather than the specific details, what I would recommend is: The Vanguard and superannuation diversified funds have a very similar internal split to the GFP with a mix of local, first-world and emerging market shares, bonds, and property trusts. This is pretty much fire-and-forget: contribute every month and they will take care of rebalancing, spreading across asset classes, and tax calculations. By my calculations the cost is very similar, the diversification is very similar, and it's much easier. The only thing they don't generally cover is a precious metals allocation, and if you want that, just put 5% of your money into the ASX:GOLD ETF, or something similar.\"",
"title": ""
},
{
"docid": "18b251aede171ca1805ed860e33c3c99",
"text": "I decided to open it with funds b/c the checking account I have is used as a savings, and has been stagnant. Doesn't make any noticeable interest, and I'm not tapping into it for now. Figured why not get some of it moving. Especially since I'm not working right now and am not contributing to retirement otherwise. The old 401(k)s have been sitting still for many years, and aren't that full. Really miss my old deferred compensation fund, that does well even when I'm not contributing!",
"title": ""
},
{
"docid": "9c69713d90bd91bd6142580bd765e223",
"text": "I would point this out to the committee or other entity in charge of handling this at work. They do have a fiduciary responsibility for the participant's money and should take anything reasonable seriously. The flip side to this is 95% of participants -- especially participants under 35 or so -- really pay next to no attention to this stuff. We consider it a victory to get people to pony up the matching contributions. Active participation in investment would blow our minds.",
"title": ""
},
{
"docid": "1bed398557ab5aed028262e5a1c0a590",
"text": "\"I assume you get your information from somewhere where they don't report the truth. I'm sorry if mentioning Fox News offended you, it was not my intention. But the way the question is phrased suggests that you know nothing about what \"\"pension\"\" means. So let me explain. 403(b) is not a pension account. Pension account is generally a \"\"defined benefit\"\" account, whereas 403(b)/401(k) and similar - are \"\"defined contribution\"\" accounts. The difference is significant: for pensions, the employer committed on certain amount to be paid out at retirement (the defined benefit) regardless of how much the employee/employer contributed or how well the account performed. This makes such an arrangement a liability. An obligation to pay. In other words - debt. Defined contribution on the other hand doesn't create such a liability, since the employer is only committed for the match, which is paid currently. What happens to your account after the employer deposited the defined contribution (the match) - is your problem. You manage it to the best of your abilities and whatever you have there when you retire - is yours, the employer doesn't owe you anything. Here's the problem with pensions: many employers promised the defined benefit, but didn't do anything about actually having money to pay. As mentioned, such a pension is essentially a debt, and the retiree is a debt holder. What happens when employer cannot pay its debts? Employer goes bankrupt. And when bankrupt - debtors are paid only part of what they were owed, and that includes the retirees. There's no-one raiding pensions. No-one goes to the bank with a gun and demands \"\"give me the pension money\"\". What happened was that the employers just didn't fund the pensions. They promised to pay - but didn't set aside any money, or set aside not enough. Instead, they spent it on something else, and when the time came that the retirees wanted their money - they didn't have any. That's what happened in Detroit, and in many other places. 403(b) is in fact the solution to this problem. Instead of defined benefit - the employers commit on defined contribution, and after that - it's your problem, not theirs, to have enough when you're retired.\"",
"title": ""
},
{
"docid": "5a860f3f8edddf97f00daf44f42cd1d3",
"text": "\"Note - this is a complicated topic. I've read the rules multiple times and I'm still not sure I understand them perfectly. So please take this with a pinch of salt and read the rules for yourself. The time(s) at which a test is done against the LTA are known as a \"\"Benefit Crystallization Event\"\" (BCE). There are 13 of these (!) - they're numbered 1-9 with the addition of some extras numbered 5A-D. However, the most important ones for those with defined contribution pensions are: Broadly, the idea is that a BCE occurs when you start taking money out of your pension, and when you reach age 75. Each time one happens, the amount you are taking out (\"\"crystallizing\"\") gets compared against the LTA and a certain percentage of your LTA gets designated as being used. Crystallising doesn't necessarily mean you actually receive the money immediately, just that some of your money is switched into a mode where you can start receiving it in different ways. The rules are designed to avoid double counting, so broadly anything that was taken off your LTA won't be taken off a second time. The cumulative use of your LTA is tracked as a percentage rather than an absolute amount, to take account of any changes in the LTA between the different times you crystallise money. For example if you crystallise £100K when the LTA is £1mn, that's 10% of your LTA gone. If later on the LTA has risen to £1.1mn and you take out £110K, that's another 10%. Once you hit 100%, you start paying a LTA charge on any excess. The really simple path here is if you just get an annuity with your entire pot, before hitting age 75 (and you don't make any further pension contributions after). Then only BCE 4 applies: your pension pot, all of which is being used to buy the annuity, is compared with the LTA. After this point your entire pension pot is considered to be crystallized, so no more BCEs will apply - the tests at age 75 only apply if you still have money that you haven't taken out or used to buy an annuity. The annuity payments themselves will be subject to income tax at your normal rate at the time you receive them, i.e. 0%, 20%, 40% or 45% depending on how much other income you have. In reality most people would want to take 25% of their pot as a lump sum at the same time as buying an annuity, given that it's tax-free if you're under the LTA. At this point BCE 6 applies in addition to BCE 4, but again the overall effect of the test is pretty simple, look at the total pension pot (lump sum + cost of annuity), and if it's under the LTA you're fine. Again, at this point no more BCEs will apply as all the money is considered to have been fully distributed. If you only use part of the money for an annuity/lump sum, then only that part of the money is compared against the LTA, and the rest stays in your pension and will be compared later. The 25% limit for a tax-free lump sum applies to the total you are taking out at that point: if you have £200K and are taking out £100K, you can take out £25K as a tax-free lump sum and use £75K for the annuity. The other £100K stays in your pension. Many people see annuity rates as very low and will want to take on more risk (and reward) by using \"\"Drawdown\"\" for at least part of their pension. Essentially, you can designate part of your pension for drawdown, and at that point BCE 1 applies to the money you designate. Once designated, you can start drawing the money out as income, which will be taxed at your normal income tax rate at the time you receive it. Again, you can take 25% as a lump sum at this point which will be subject to BCE 6. There's also an alternative route where you put everything into \"\"flexi-access drawdown\"\" without taking any lump sum immediately, and then as you actually withdraw income, 25% is tax-free and the rest is taxed as income. The overall effect is the same, but it gives you more control over when you get the tax-free bit. However, because with drawdown you can actually leave the money in your pension and growing tax-free, there's a further test against the LTA at age 75 under BCE 5A. To avoid double-counting (\"\"prevention of overlap\"\"), the amount left in the drawdown fund at that point is reduced by whatever was previously tested against BCE 1. So if you put £150K into drawdown initially, and it's grown to £200K by age 75, then another £50K will crystallise under BCE 5A. I think that if you put £150K into drawdown initially and it grows by £50K, but you take that out as income so that only £150K (or less) remains at age 75, then the amount crystallising under BCE 5A is nil. Also, when money is in drawdown, you can choose to use it to buy an annuity. BCE 4 is applied at this point (if before age 75), but as with BCE 5A, this is reduced by anything that was previously crystallised under BCE 1. If you only use some of it to buy an annuity, the reduction is pro-rataed, e.g. if you started out with £150K moved into drawdown, and later it has grown to £200K and you use £100K to buy an annuity, then the reduction is £75K so £25K is considered to have crystallised under BCE 4. Once you reach age 75, as well as any money that's still in drawdown, anything you haven't yet crystallised at all gets tested against the LTA under BCE 5B. Broadly, once you go over the LTA, the charges are simple: There's never any explanation given for these two rates, but I think it's all based on trying to at least cancel out the benefit you got from using your pension, on the assumption that: So with the 25% charge + 20% income tax, if you take out £100, you'll end up with £75 gross income, so £60 net income - just the same as if you'd originally paid 40% tax. (This ignores the effect of investment growth, but if you would have saved the £60 in an ISA, the end result is the same: if you had growth of say 50% over the time the money was in your pension, it'll be the same effect if you had £100 growing to £150 and now received 60% of it, or if you had £60 growing to £90 untaxed in an ISA.) The 55% lump sum charge is in case you are paying 40% tax when you take it out, to make sure that it's not a more attractive option than the 25%+income tax: if you have £100, either you get £45 tax free via a lump sum, or you get £75 gross and hence £45 net. I haven't covered lots of cases here: defined benefit pensions. Roughly, when you start receiving the pension, 20x the initial income from the pension is deemed to crystallise under BCE 2 and any lump sum you receive crystallises under BCE 6. In the former case, you could end up having to pay the LTA charge with money you haven't actually got yet, and you can ask the pension administrator to instead reduce your pension to pay it. However, there are lots of special cases for defined benefit pensions, mostly for historical reasons, so you should make sure you check with your pension administrator about this. if you die before age 75, at which point the LTA test is applied via either BCE 5C/5D, or BCE 7. After paying the LTA charge if any, your dependents or whoever else you leave it to gets the remainder tax-free. transferring overseas (BCE 8). \"\"scheme pensions\"\" under BCE 2 and BCE 3 (I think these are relatively uncommon) some corner cases covered by regulations (BCE 9)\"",
"title": ""
},
{
"docid": "22a58bb6f1803e7765a19450e6a9a536",
"text": "\"Well the People's Trust's IPO prospectus is now (2017-09-08) available for all to read (or there's a smaller \"\"information leaflet\"\"). (May need some disclaimers to be clicked to get access). Both have a \"\"highlights\"\" bullet-point list: Coverage here has a comment thread with some responses by the founder attempting to answer the obvious objection that there's other multi-manager trusts on a discount (e.g Alliance Trust on ~ -5.5%), so why would you buy this one on a (very small) premium? (Update: There's also another recent analysis here.) Personally, I'm thinking the answer to the original question \"\"How is The People's Trust not just another Investment Trust?\"\" is pretty much: \"\"it's just another Investment Trust\"\" (albeit one with its own particular quirks and goals). But good luck to them.\"",
"title": ""
},
{
"docid": "32c2716abf18c9873139c68bc1960ebb",
"text": "Looks like the result got decided recently, with a little uncertainty about exactly how much is the total allowed claims: http://www.wilmingtontrust.com/gmbondholders/plan_disclosure.html http://www.wilmingtontrust.com/gmbondholders/pdf/GUC_Trust_Agreement.pdf They give the following example: Accordingly, pursuant to Section 5.3 of the GUC Trust Agreement, a holder of a Disputed Claim in the Amount of $2,000,000 that was Allowed in the amount of $1,000,000 (A) as of the end of the first calendar quarter would receive: Corresponding to the Distribution to the Holders of Initial Allowed Claims: Corresponding to the First Quarter Distribution to Holders of Units: Total:",
"title": ""
},
{
"docid": "189074bc66e38dfa800eb176139e72b2",
"text": "\"I've been down the consolidation route too (of a handful of DC pensions; the DB ones I've not touched, and you would indeed need advice to move those around). What you should be comparing against is: what's the cheapest possible thing you could be doing? Monevators' online platform list will give you an idea of SIPP costs (if your pot is big enough and you're a buy-and-hold person, ATS' flat-fee model means costs can become arbitrarily close to zero percent), and if you're happy to be invested in something like Vanguard Lifestrategy, Target Retirement or vanilla index trackers then charges on those will be something like 0.1%-0.4%. Savings of 0.5-1.0% per year add up over pension saving timescales, but only you can decide whether whatever extra the adviser is offering vs. a more DIY approach is worth it for you. Are you absolutely sure that 0.75% pa fee isn't on top of whatever charges are built into the funds he'll invest you in? For the £1000 fee, advisers claim to have high costs per customer because of \"\"regulatory burdens\"\"; this is why there's talk of an \"\"advice gap\"\" these days: if you only have a small sum to invest, the fixed costs of advice become intolerable. IMHO, nutmeg are still quite expensive for what they offer too (although still probably cheaper than any \"\"advised\"\" route).\"",
"title": ""
}
] |
fiqa
|
167fe1e614f07ad9b20c082f950fd8c0
|
Dormant company, never paid taxes, never traded in UK - should I have notified the HMRC?
|
[
{
"docid": "d294dd6438dfaa3a54557e2c33f1d5ae",
"text": "You don't have to register for corporation tax until you start doing business: After you’ve registered your company with Companies House, you’ll need to register it for Corporation Tax. You’ll need to do this within 3 months of starting to do business. Since you haven't needed to do that yet, there also shouldn't be any need to tell HMRC you've stopped trading. So it should just be a question of telling Companies House - I guess it's possible they'll first want you to provide the missing accounts.",
"title": ""
}
] |
[
{
"docid": "8400613fe1604536e0f9484699465382",
"text": "You should check this with a tax accountant or tax preparation expert, but I encountered a similar situation in Canada. Your ISA income does count as income in a foreign country, and it is not tax exempt (the tax exemption is only because the British government specifically says so). You would need to declare the income to the foreign government who would almost certainly charge you tax on it. There are a couple of reasons why you should probably keep the funds in the ISA, especially if you are looking to return. First contribution limits are per year, so if you took the money out now you would have to use future contribution room to put it back. Second almost all UK savings accounts deduct tax at source, and its frankly a pain to get it back. Leaving the money in an ISA saves you that hassle, or the equal hassle of transferring it to an offshore account.",
"title": ""
},
{
"docid": "285656fee715b39a89d1eaadd137f3b2",
"text": "The LLC (not you) is probably in debt to the California FTB. Any LLC registered in California must pay at least $800 a year, until it is officially dissolved (i.e.: notice of cancellation/dissolution properly filed with the California Secretary of State). The FTB may come after members (including you) personally, if it can prove that the failure to pay was due to your negligence. Talk to a CA-licensed EA/CPA about how to resolve this. Otherwise, at least from what you've described, there were no other taxable events. LLC is a disregarded entity, so the IRS doesn't care about it much anyway (unless someone was stupid enough to elect it to be taxed as a corporation, that is). Keep in mind that when in doubt - you are always better off with a professional (a CPA/EA licensed in your State) advice.",
"title": ""
},
{
"docid": "b9dca32b8177f2bddd8208506c0d1b84",
"text": "You proceed with a proper legal advice. You should not ignore IRS letters. You should have taken your chances in trying to reach a compromise with them, but that ship has likely sailed already. You might want to consider bankruptcy. Ask your parents for a couple of hundreds of dollars to pay for a legal consultation with a lawyer and a CPA and proceed from there.",
"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": "e30c1a9481ded4a26c6feb5502718faa",
"text": "My understanding is you can create a company 0 value. Then you need to either loan the company the money to buy the building (it will still have 0 value as it will have a debt equal to it's assets) or sell share to investors at any price you like to raise the money to buy the building. Once shares have value (as valued by a chartered accountant - not anyone can do this) then anyone recieving shares will have to pay income tax. This is why keeping the shares as no value for as long as possible can be preferable. Also a benefit of using share options. talk to your investors, see what they require.",
"title": ""
},
{
"docid": "358ca6cdfe9780ec08e4a2d93d91605b",
"text": "My understanding (I am not a lawyer or tax expert) is that you are not allowed to work for free, but you can pay yourself minimum wage for the hours worked. There are probably National Insurance implications as well but I don't know. The main thing is, though, that if HMRC think that you've set up this system as a tax avoidance scheme then they're allowed to tax you as though all the income had been yours in the first place. If you are considering such a setup I would strongly advise you to hire a qualified small business accountant who will be familiar with the rules and will be able to advise you on what is and is not possible / sensible. Falling outside the rules (even inadvertently) leaves you liable to a lot of hassle and potentially fines etc.",
"title": ""
},
{
"docid": "0405c80b946e2a2c2c2ceae2b78ccae7",
"text": "In a simple case as the sole UK resident director/shareholder of a company, with that company as your only income, you are usually best paying yourself a salary of the maximum tax free amount allowed under your tax code (~£11k for most people at present). On this you will have to pay some employer and employee National Insurance (NI) contributions (totalling around £1000). Your salary/employer NI counts as an expense, so that is taken off the company profits. You then pay corporation tax on the remainder (20%). The first £5k you take as dividends is tax free, the remainder at a lower tax rate than the equivalent combined income tax/NI (starting at 7.5% instead of 20% tax plus employee plus employer NI), giving a significant saving compared to salaried income even after corporation tax. To declare and pay the tax, you would need to complete a self-assessment tax return. Your company will also need to file a return. The Contractor UK website, although aimed at IT contractors, has some very useful information on operating Ltd companies. That said, finances are rarely that simple so I would concur with the recommendation you engage an accountant, which is a tax-deductible expense.",
"title": ""
},
{
"docid": "25c3c0fedb487bda03a9b386cba5a700",
"text": "As 'anonymous' already mentioned, I think the correct answer is to go see an accountant. That said, if you are already have to fill in a tax return anyway (ie, you're already a high rate taxpayer) then I don't see why it should be an issue if you just told HMRC of your additional profit via your tax return. I never was in the situation of being employed with a side business in the UK, only either/or, but my understanding is that registering as self employed is probably more suitable for someone who doesn't PAYE already. I might be wrong on this as I haven't lived in the UK for a couple of years but an accountant would know the answer. Of course in either case, make sure that you keep each an every scrap of paper to do with your side business.",
"title": ""
},
{
"docid": "8c9b48ed7f140ddf25940da79b0bba86",
"text": "The VAT number should be equivalent from the point of view of your client. The fact that you are a sole trader and not a limited liability doesn't matter when it comes down to pay VAT. They should pay the VAT to you and you will pay it to the government. I'll guess that their issue is with tax breaks, it is a bit more tricky to receive a tax break on paid taxes if you buy something abroad (at least it is here in Finland). If they won't pay you because of that, you could open a LTD or contract the services of a 'management company' which will do the job of invoicing, receiving the money and passing it back to you, for a fee.",
"title": ""
},
{
"docid": "21d0c3dcd64ed588f9aa8af50c2612a9",
"text": "An ISA is a much simpler thing than I suspect you think it is. It is a wrapper or envelope, and the point of it is that HMRC does not care what happens inside the envelope, or even about extractions of funds from the envelope; they only care about insertions of funds into the envelope. It is these insertions that are limited to £15k in a tax year; what happens to the funds once they're inside the envelope is your own business. Some diagrams: Initial investment of £10k. This is an insertion into the envelope and so counts against your £15k/tax year limit. +---------ISA-------+ ----- £10k ---------> | +-------------------+ So now you have this: +---------ISA-------+ | £10k of cash | +-------------------+ Buy fund: +---------ISA-------+ | £10k of ABC | +-------------------+ Fund appreciates. This happens inside the envelope; HMRC don't care: +---------ISA-------+ | £12k of ABC | +-------------------+ Sell fund. This happens inside the envelope; HMRC don't care: +---------ISA-------+ | £12k of cash | +-------------------+ Buy another fund. This happens inside the envelope; HMRC don't care: +---------ISA-----------------+ | £10k of JKL & £2k of cash | +-----------------------------+ Fund appreciates. This happens inside the envelope; HMRC don't care: +---------ISA-----------------+ | £11k of JKL & £2k of cash | +-----------------------------+ Sell fund. This happens inside the envelope; HMRC don't care: +---------ISA-------+ | £13k of cash | +-------------------+ Withdraw funds. This is an extraction from the envelope; HMRC don't care. +---------ISA-------+ <---- £13k --------- | +-------------------+ No capital gains liability, you don't even have to put this on your tax return (if applicable) - your £10k became £13k inside an ISA envelope, so HMRC don't care. Note however that for the rest of that tax year, the most you can insert into an ISA would now be £5k: +---------ISA-------+ ----- £5k ---------> | +-------------------+ even though the ISA is empty. This is because the limit is to the total inserted during the year.",
"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": "abd138c01e6d5a971c99c8f92350dfec",
"text": "\"That's a tricky question and you should consult a tax professional that specializes on taxation of non-resident aliens and foreign expats. You should also consider the provisions of the tax treaty, if your country has one with the US. I would suggest you not to seek a \"\"free advice\"\" on internet forums, as the costs of making a mistake may be hefty. Generally, sales of stocks is not considered trade or business effectively connected to the US if that's your only activity. However, being this ESPP stock may make it connected to providing personal services, which makes it effectively connected. I'm assuming that since you're filing 1040NR, taxes were withheld by the broker, which means the broker considered this effectively connected income.\"",
"title": ""
},
{
"docid": "305d0bb481877f331240bc5ec2e0572e",
"text": "I love the flat rate VAT scheme. It's where you pay a percentage based on your industry. An example might be Computer repair services, where you'll pay 10.5% of your total revenue to the HMRC. But you'll be invoicing for VAT at 20% still. Would definitely recommend registering for it since you're expecting to cross the threshold anyway. And like DumbCoder said, you also get a first year discount of 1%, so in the example above, you'd end up paying 9.5% VAT on your turnover. I personally found it a pain to invoice without VAT (my clients expected it), so registering made sense regardless of the fact I was over threshold. The tricky bit is keeping under the £150k turnover so you stay eligible for the flat rate. It does get more complex otherwise.",
"title": ""
},
{
"docid": "85e8f159933518a5a1796e99a84b2ce8",
"text": "Ugh. Really? I thought this subreddit was smarter than this. 1) You pay taxes on net income, not sales. Expenses are tax deductible. 2) This took place in the UK, which operates on a different set of tax rules than many of us are familiar with. 3) The company still pays other taxes even if they don't pay income tax. In the US, examples would be payroll taxes including the employer portion of things like SS and Medicare, but I'm sure the UK has similar programs funded in a similar manner. To the extent that they own their buildings, they also pay property taxes. They globally source their supplies, which means they also pay import taxes. There are a ton of other taxes that a company pays. 4) Tax laws are complex because business is complex. Inflammatory headlines like this serve no purpose whatsoever.",
"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": ""
}
] |
fiqa
|
460c4ce11db1568cba081022f1e31d83
|
What happens when PayPal overdrafts a checking account (with an ample backup funding source available)?
|
[
{
"docid": "31748a9d3c9acbd7ecd84088aa552479",
"text": "You should check directly with the seller. I suspect you will find they have not recieved any money. Paypal tend to hang on to money as long as possible in all transactions, and will do anything to avoid giving out cash before it has come in.",
"title": ""
},
{
"docid": "eb9b830ba43c5a42c6f41b9e1714634b",
"text": "PayPal will be contacting you shortly, I'm sure. You'll see the reversal on their site in a few days as well as a fee from their end I bet.",
"title": ""
},
{
"docid": "4f37161273d28eaa14946bf84ac9c41c",
"text": "\"I made this mistake and tried calling Paypal...the first time I have ever been unhappy with their service. The girl gave me some number but didn't make it clear whether it was an order reference number or a reference phone number for the company I ordered from. I called within 10 minutes of placing my order and they were unable to cancel or change the payment method. I did find however, that even though you can't pay paypal with your credit card, some banks will let you. I went into my account and \"\"paid\"\" my account the amount needed using my credit card from the same bank that I had intended to use in the first place...hopefully it went through quickly enough to not get a service fee from Paypal\"",
"title": ""
}
] |
[
{
"docid": "048a197e1f19c8e5bbb16b6dc3812080",
"text": "I never understood why anyone would overdraft their checking account, until a conversation with a bank teller recently who told me that most young folks these days don't bother to balance their checkbooks anymore or to even bother with a checkbook at all -- they just check their available balance to see how much is in their checking account (totally ignoring any checks or other charges that may have been made against their account but have not yet been debited). It's hard to believe that young people can be that stupid, but apparently some are.",
"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": "41b1dc88dca2576c9ddf6131b6f7343f",
"text": "\"As the other answers stated: Yes PayPal will transfer money from your bankaccount automatically if your PayPal balance isn't sufficient. Let's add some proof to the story: (Note, I am in the EU, specifically the Netherlands, situation might be different in other parts of the world) If I login to PayPal and go to my wallet, I have a section that looks like this: If I click on it, I am presented with a screen with details about the connection. Note the \"\"Direct debit instruction\"\". If I click on the \"\"view\"\" link I am presented with the following text (emphasis mine): [snip some arbitrary personal details] This authorisation allows (A) PayPal to send instructions to your bank account and (B) your bank to debit your account in accordance with the instructions from PayPal. As part of your rights, you are entitled to a refund from your bank under the Terms and Conditions of your agreement with your bank. A refund must be claimed within 8 weeks starting from the date on which your account was debited. Your rights are explained in a statement that you can obtain from your bank. Below this text is a button to delete the authorization.\"",
"title": ""
},
{
"docid": "46275c177deeb601b7d56a1afda66b34",
"text": "\"This is based on my experience with Chase and may not be applicable to other banks. As you mentioned Chase as one of the banks you do business with hopefully this will be helpful to you. The money does come out of your account immediately. If the check isn't cashed in a certain amount of time, the check expires and you get the money credited back to your account. Once you have made a bill payment online you can check on the status of your check by looking at your payment activity, finding the payment in question, and following the \"\"proof of payment\"\" link. There is will provide you with information on your payment which you can submit to your payee to prove when you submitted the payment, and which they can use to verify with the bank that you really did send the payment as you claimed. Once the check is cashed, this page will also contain images of the front and back of the cashed check, so you can prove that the recipient really did cash it. You can see from this info that the check is being funded from a different account number than your own, which is good for security purposes since (per Knuth, 2008) giving someone else your bank routing number and account number as found on your personal checks basically provides them with all they need to (fraudulently, of course) clean out your account.\"",
"title": ""
},
{
"docid": "95f2f611920c54d8dff0a27016ba995b",
"text": "Can a third party deposit to my account? (Say I'm selling something and I ask him/her to just deposit the payment to my account? No, but PayPal.",
"title": ""
},
{
"docid": "cdc0cbcd30799904fff3857fb4579d78",
"text": "\"Insufficient funds will cause a check to bounce. If there is evidence that you \"\"kited\"\" the check deliberately, that's a potential fraud charge. If the vendor accepts that you were just stupid/careless, you'll probably just have to pay a penalty processing fee in addition to making good the payment. It is your responsibility to track your account balance and not write bad checks. If the timing could be bad, don't write the check yet. If you insist on paying with money you may not have, talk to your bank about setting up overdrafts to draw from another account, or automatic overdraft loans... or use a credit card rather than paying by check.\"",
"title": ""
},
{
"docid": "6b722f7ab18aa74ea0ca2f4cbd589dfb",
"text": "Of course its possible. Under what terms and with what fees depends on your bank/country regulations, but generally speaking - loaning is the major source of income for banks, especially short-term account overdrafts (which is essentially a loan, usually at a high rate). In the US you can (now, since the new regulations kicked in) instruct the bank not to pay checks/decline debit card purchases if you don't have sufficient funds on the account. Otherwise you can instruct them to pay (at their discretion) to avoid bouncing checks, and accept NSF fees (usually pretty high). Some banks provide overdraft lines of credit (then you won't have NSF fees, and will just pay interest when tapping into that line), others provide option to automatically withdraw the missing amount from a linked account (checking or credit card).",
"title": ""
},
{
"docid": "e6062d1d56fd7a847048feadf670efed",
"text": "I think part of the reason people overdraft is because the online banking app/website doesn't show a true indication of your account balance. I've had mine (at Bank of America) adjust to $30 less than it told me I had when I checked due to processing payments being altered.",
"title": ""
},
{
"docid": "ade9e9453e39272b378323c795f6e9a8",
"text": "The initial story sounds normal. Happens every day. Checksums cannot prevent this, since it is a typo by the sender. The sender typed in a wrong account number. That account number happened to exist (so the sender wouldn't get any immediate error message), your account. But, that innocent story can also be used as part of a money laundering plan. Namely, to give the money a legitimate source. Also can be used in a scheme to frame you for something. The question of how the person got your phone number raises suspicion. The bluffs to avoid the normal paperwork, and then disappearing, make it incriminating. No doubt. Take this to the police. The question arises: even if the plan (whatever it was) failed, why didn't he do the paperwork and get the money back? The answer is that that would leave a trail to possibly be picked up in a future investigation.",
"title": ""
},
{
"docid": "e09675eb1b11e2d356c5e98f69dfd519",
"text": "\"Your broker will charge you commissions and debit interest on your \"\"overdraft\"\" of $30,000. However it is very likely that your contract with the broker also contains a rehypothecation clause which allows your broker to use your assets. Typically, with a debt of $30,000, they would probably be entitled to use $45-60,000 of your stocks. In short, that means that they would be allowed to \"\"borrow\"\" the stocks you just bought from your account and either lend them to other clients or pledge them as collateral with a bank and receive interest. In both cases they will make money with your stocks. See for example clause #14 of this typical broker's client agreement. Applied to your example: In other words they will make $60 + $450 + $1,800 = $2,310 the first year. If the stock is expensive to borrow and they manage to lend it, they will make a lot more. There are by the way a few important consequences:\"",
"title": ""
},
{
"docid": "2c8994eda8bc5560355d5e4bd03d5914",
"text": "\"The whole concept of \"\"spending a fraudulent check\"\" is misleading. Both in practice and legally there are two separate transactions - you (not) receiving funds by depositing a fraudulent check, and you sending a cash transfer further on. Regarding the fraudulent check, generally your bank is 'responsible' in the sense that it's their responsibility to recover the money from you - it will not receive any money from the bank that supposedly issued the fake check, and if they give it to you, you spend all that money and are unable to pay it back, that's their problem and not of the other institutions. Regarding the cash transfer, from the bank point of view it's solely your responsibility - it was really you who made that payment, you explicitly authorised/instructed the banks to deliver money to the recipient, and none of those banks have the duty to return it. You have been defrauded by the recipient of this payment, and may attempt to recover the money from the fraudster - but that's not particularly likely to happen even in the case of a successful arrest and conviction. Very fast reaction with involvement of police may block the \"\"vendor's\"\" account before they are able to withdraw the money. If that is the case, you might be able to recover your money or part of it.\"",
"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": "ee00fcd08011a8bc19f48b4fee0f010c",
"text": "\"My sister, who is in her mid twenties and not the most financially responsible kept telling me that the bank was doing \"\"weird shit\"\". I looked at her statements and noticed something else wells fargo does. She has a checking account that has a ten or fifteen dollar monthly fee. If her account ever got near that number or in the negative that is when that fee would be charged. So basically instead of charging that fee at the same time every month they would wait till that charge would cause an overdraft which would spark a $35 dollar fee. Yes I also proved that they are still reordering. I told her to save all her receipts for one month. Her account was at $50. She made a five dollar food purchase, and several other small purchases and then had to pay a small bill that took her over. Via the receipts it was easy to see that all the other small purchases were done two to three days ahead of the one that actually over drafted her. Which cost her almost $200 in overdraft fees. She is actually not that bad with money, she works 40 hours a week but she just does not make enough to live on and this kind of practice puts her in a hole over and over again.\"",
"title": ""
},
{
"docid": "759d03a7648458750b610f6759244394",
"text": "\"BoA used to do this too (probably still do). I opened an account at BoA and got low one month, and then a friend of mine cashed a $50 check that I'd given him months prior (that he said he would never cash because \"\"your money is no good here\"\"). That freaking $50 check cost me hundreds of dollars. They charged me the overdraft fee, a bounced check fee, and then ran the fucking thing through again to see if it would cash when they knew it wouldn't, so I ended up with all the fees doubled! I closed my account after that, and 2 months later, I got a notice that my account had a negative balance of more than $100 because they had charged me the monthly fee for the checking account after I closed it, and since the account was empty... buttfuckbybankapalooza.\"",
"title": ""
},
{
"docid": "dc730f98db6f12a5b86cfb47010b49ff",
"text": "\"Lol, wtf kind of question is this? First off, there is no single \"\"derivatives market\"\". There's listed derivatives (ETD's) and OTC. Then you can break each of those broad markets down into forwards, futures, options (includes all exotics such as binaries, single barriers, double barriers, one touches, double no touches, knock ins, knock outs, reverse knock ins, reverse knock outs, window barriers, etc), and swaps (including swaptions). All of these are product specific (FX, FI, Credit, Equities, Commodities, etc).... so its more appropriate to look at derivatives with respect to the market they are in rather than all derivatives across all markets. Now to your question... your question makes absolutely no sense. Are you wondering what the daily volume is? Notional outstanding? Total exposure?\"",
"title": ""
}
] |
fiqa
|
80592674a995d60d29c5b6a9625cdec5
|
Moonlighting as a software developer: employee or independent contractor w/ LLC?
|
[
{
"docid": "ef325af95e1dfafaa8396f9a31045429",
"text": "\"I've been in a similar situation before. While contracting, sometimes the recruiting agency would allow me to choose between being a W2 employee or invoicing them via Corp-2-Corp. I already had a company set up (S-Corp) but the considerations are similar. Typically the C2C rate was higher than the W2 rate, to account for the extra 7.65% FICA taxes and insurance. But there were a few times where the rate offered was identical, and I still choose C2C because it enabled me to deduct many of my business expenses that I wouldn't have otherwise been able to deduct. In my case the deductions turned out to be greater than the FICA savings. Your case is slightly different than mine though in that I already had the company set up so my company related costs were \"\"sunk\"\" as far as my decision was concerned. For you though, the yearly costs associated with running the business must be factored in. For example, suppose the following: Due to these expenses you need to make up $3413 in tax deductions due to the LLC. If your effective tax rate on the extra income is 30%, then your break even point is approximately $8K in deductions (.3*(x+3413)=3413 => x = $7963) So with those made up numbers, if you have at least $8K in legitimate additional business expenses then it would make sense to form an LLC. Otherwise you'd be better off as a W2. Other considerations:\"",
"title": ""
}
] |
[
{
"docid": "d5a2c50b5203029f48d9b4038438591b",
"text": "Yes. I have personally signed such contracts (fixed budget software development) and lost money every single time. And yes, it is quite possible for you to get paid under minimum wage if you take too long. Scope creep is the primary culprit for these kinds of contracts, so make sure you put together iron-clad explanations of what is and is not covered by the contract (and pad the asking price for good measure).",
"title": ""
},
{
"docid": "8e99da3dcb69407b14e31d57a876e9de",
"text": "\"Yea. Almost every form I fill out wants to know \"\"Employer Name\"\". They don't even bother checking \"\"Are you Self Employed\"\". Of course, I end up writing \"\"Self Employed\"\" in employer name field anyway. In the United States, it is even harder because EVERY state has their own labor and employment laws. You are a freelancer but what if you need to travel to a client site in a different state. Bam, you gotta file taxes for that state as well even if you made like a few hundred bucks. Too much red tape and it is really hard to change.\"",
"title": ""
},
{
"docid": "6944f9c0b50e5048b10f8ec9bfc045df",
"text": "Software Contractors are not employees of the company that is procuring the software. Software Contractors necessarily work for another legal business entity. There is a business to business relationship between the procurer of the software and the entity producing the software. Therefore, the company procuring the software is not required to pay a minimum wage, or adhere to any other employment law. When any individual or company orders a software product and agrees to pay for it, that is a fixed priced contract. This happens millions of times a day. The amount of time taken to produce the software has no direct bearing on price. For instance, there is no minimum price for Microsoft Word based on the number of hours taken to produce it. Generally a Software Contractor will be a director and shareholder of a limited liability corporation. Directors are exempt from the standard protection offered under employment law. If the company producing the software was employing non-directors to produce the software, rather than sub-contracting to another business then employment law would apply.",
"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": "9af7bc5f7852658ba815630c125902db",
"text": "\"I made a throwaway for this... I work in IT for the government. I was tasked with finding a vendor that provided a particular kind of software. My bosses expected it would take me 4-6 months to source out companies, go through all the paperwork and process to work with them, try to get them to understand what we need, and them aid them in implementing their software on our stack. Well, that seemed like an enormous waste of time (and ridiculously boring), so instead I wrote the software on my own time over the course of 4 months, built a subscription model around it, and incorporated a company. I've since sold the subscription based model to a number of other government bodies and clients. The government body I work for has around 250 employees, and I recently sold a subscription to a peer government body with over 1500 employees. I built a free subscription tier that my current company uses so that i'm not taking any payment from them, to avoid any conflicts of interest, and built the entire project on my own time and resources. The funny thing is, the software product I built easily beat out all the competitors in blind tests, and no one that I work for could ever imagine that I am capable of even being employed by such a company, forget building the whole stack and founding the company. In fact, all of upper management has been impressed with the software I \"\"found\"\", and how well it has worked... there has been a ton of positive feedback on it since it was launched. I'm basically just sitting on this project (that is mostly self sustaining), until I can just cash out - which should be quite soon. **Edit** to the people warning me what i'm doing is illegal, a few key points - 1) The public sector can't legally profit from anything, my job is to limit cost, not make a profit... which leads to... - 2) I'm not charging the government body I work for, it's a free implementation devoid of contract. I also ensured I do all the work on my own time, not company time. I live somewhere where most government employees work multiple jobs, so this isn't uncommon. In fact, my government body actually does often hire contractors who are also employed. So not only did I create the service on my own time, I gave it to my employer for free (other companies pay, of course) - 3) I don't live in the US, things are different where I am. It is certainly not illegal, and I would even argue that (given this is the public sector) it is even somewhat ethical. My work saved my employer (the tax payer) a significant amount of money, which is a net positive. The service is of high quality, and I did not break any employment agreements or laws in the process. - 4) I hired a lawyer to double check everything. - 5) I absolutely am not in any way using any proprietary information for profit. I'm not even using my contacts through work as leverage for sales - everything so far has been cold calls and positive references from other clients. This was a key part of the project.\"",
"title": ""
},
{
"docid": "3e00c1083e5d0f95b58bbdb1a5f44a75",
"text": "\"An unmarried person with a total U.S.-sourced earned income under $ 37,000 during the year 2016 is likely to owe: If the original poster is not an \"\"independent contractor\"\", and is not \"\"billing corp-to-corp\"\" then: In summary: References:\"",
"title": ""
},
{
"docid": "f039b8bf09ec32891f0466248f7bbe50",
"text": "The reality is that for labor is cheap for software startups. A couple of founders can usually take a prototype to the point where they can get the seed capital to hire labor at market rates, so why would they give up significant equity to employees? Plus, if they need cheap employees, there are always contractors and naive new grads who will gladly take below-market salary for 0.1% of the company. (in options, vested over four years, of course)",
"title": ""
},
{
"docid": "7beb296a45b2f6718fda648042db802f",
"text": "\"Your comment to James is telling and can help us lead you in the right direction: My work and lifestyle will be the same either way, as I said. This is all about how it goes \"\"on the books.\"\" [emphasis mine] As an independent consultant myself, when I hear something like \"\"the work will be the same either way\"\", I think: \"\"Here thar be dragons!\"\". Let me explain: If you go the independent contractor route, then you better act like one. The IRS (and the CRA, for Canadians) doesn't take lightly to people claiming to be independent contractors when they operate in fact like employees. Since you're not going to be behaving any different whether you are an employee or a contractor, (and assuming you'll be acting more like an employee, i.e. exclusive, etc.), then the IRS may later make a determination that you are in fact an employee, even if you choose to go \"\"on the books\"\" as an independent contractor. If that happens, then you may find yourself retroactively denied many tax benefits you'd have claimed; and owe penalties and interest too. Furthermore, your employer may be liable for additional withholding taxes, benefits, etc. after such a finding. So for those reasons, you should consider being an employee. You will avoid the potential headache I outlined above, as well as the additional paperwork etc. of being a contractor. If on the other hand you had said you wanted to maintain some flexibility to moonlight with other clients, build your own product on the side, choose what projects you work on (or don't), maybe hire subcontractors, etc. then I'd have supported the independent contractor idea. But, just on the basis of the tax characteristics only I'd say forget about it. On the financial side, I can tell you that I wouldn't have become a consultant if not for the ability to make more money in gross terms (i.e. before tax and expenses.) That is: your top line revenues ought to be higher in order to be able to offset many of the additional expenses you'd incur as an independent. IMHO, the tax benefits alone wouldn't make up for the difference. One final thing to look at is Form SS-8 mentioned at the IRS link below. If you're not sure what status to choose, the IRS can actually help you. But be prepared to wait... and wait... :-/ Additional Resources:\"",
"title": ""
},
{
"docid": "ceefd9186fbe63a649c1b841cd61d71d",
"text": "It makes no difference for tax purposes. If you are 1099, you will pay the same amount of taxes as if you formed a corporation and then paid yourself (essentially you are doing this as a 1099 contractor, just not formally). Legally, I don't know the answer. I would assume you have some legal protections by forming an LLC but practically I think this won't make any difference if you get sued.",
"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": "fd1b696673c652e6a1cf4604b7cb0acb",
"text": "I had an internship and they hired me afterwards. Honestly sounded like a good way to break in. I also learned a whole new language for the internship and wanted to continue using it instead of any of the languages taught in school. Not sure if the company would be considered good or bad. I ended up being solo for a long time but also building three applications ground up. I felt like I was improving a lot, especially on projects they gave me lots of leeway on because they were low priority (they just wanted features, no emergency bug tickets, etc). But no peers for most of my work and all the software was privately made and privately licensed/sold. I also had difficulties leaving because I'm an idiot. With no backup me leaving basically meant they would be fucked, and they were my only reference. I was fine taking that salary because I had zero experience (no job. Ever. Not even volunteering. My mother wouldn't let me because of snobbiness), however once I was more valuable to this company and they even praised me for it in the assessments -- they gave out 2% raises. Later my bonuses decreased as my hours and responsibilities increased, too. I asked to be taken off the stressful project, thinking I could salvage this, and they hired a replacement for me to train 3 months later. I got the high leeway project again for 6 months and my job satisfaction was phenomenal by comparison so i stayed. However, then my replacement was fired... So they asked me as a favour to work on the stressful project again and said they would replace me in a month and a half. They didn't. I worked on it for 8 months, I kept asking about it too. Their job posting was also terrible and they roped me in on it at the end and I gained the responsibility of recruiting and vetting (yay for that one actually...). We hired another replacement for me, I trained them too, and left immediately. Actually I regret staying there as long as I did. They gaslit me and I shouldn't have tried to make up for their incompetence. They actually made me a contractor at the end so I was getting paid half of what I originally was. Before I left I asked for a competitive raise and the company owner basically lied about details and tried to tell me what a fuss I was trying to talk about my happiness and what I want once a year... It was surreal but they agreed to bump my pay in the end. However, I was furious by their treatment and reply (which BTW came after I 'suddenly did not show up' despite bolding and clearly stating I would cease work with them and informing the people I worked with on the last day that I heard nothing back from the owner about a new/extended contract), so I said no. I don't know how to negotiate. I am too humble. Selling oneself or seeing someone sell themselves makes me physically uncomfortable. It is completely unnatural, and sets off my bullshit alarms. Actually I seem to have some PTSD from that job, now, too...",
"title": ""
},
{
"docid": "559b05e48a817e0e9841d2cc181a9a71",
"text": "\"You are confusing entirely unrelated things. First the \"\"profit distribution\"\" issue with Bob's S-Corp which is in fact tax evasion and will probably trigger a very nasty audit. Generally, if you're the sole employee of your own S-Corp, and the whole S-Corp income is from your own personal services, as defined by the IRS - there's no profit there. All the net income from such a S-Corp is subject to SE tax, either through payroll or through your K-1. Claiming anything else would be lying and IRS is notorious for going after people doing that. Second - the reclassification issue. The reason employers classify employees as contractors is to avoid payroll taxes (which the IRS gets through Bob's S-Corp, so it doesn't care) and providing benefits (that is Bob's problem, not the IRS). So in the scenario above, the IRS wouldn't care whose employee Bob is since Bob's S-Corp would have to pay all the same payroll taxes. The reclassification is an issue when employees are abused. See examples of Fedex drivers, where they're classified as contractors and are not getting any benefits, spend their own money on the truck and maintenance, etc. The employees are the ones who sued for reclassification, but in this case the IRS would be interested as well since a huge chunk of payroll taxes was not paid (driver's net is after car maintenance and payments, not before as it would be if he was salaried). So in your scenario reclassification is not as much a concern to Bob as his tax evasion scheme claiming earnings from performing personal services as \"\"profits from S-Corp\"\". A precedent to look at, as I mentioned elsewhere, would be the Watson v Commissioner case.\"",
"title": ""
},
{
"docid": "ce7f4a7b972e08489a6a8c630a90ded1",
"text": "\"Am I on crack, or do the perceived tax savings via S-Corp distributions really not matter at a certain level of business income? You're not on crack. Generally, if all the income is generated by your own personal services - this is the outcome. The benefit of S-Corp is when you have employees who generate your income, and you distribute to yourself profits that come out of other's personal services. In this case your distributions are exempt from FICA since it is not in fact a self-employment income. You'd still have to pay yourself a reasonable salary for your position (as a manager/officer), but it wouldn't have to cover all of the available profits. So if the IRS takes a position against you it would be that your salary should be to include the whole profits, since it is the compensation to you for the personal services that produced the income to the corporation (you). In many cases they might agree that a salary at the SS maximum limit would be reasonable - but that's only a speculation of mine. In that case you might gain some portion of the medicare tax (with the recent law changes at the levels you're talking about you'll pay some medicare anyway). There are a lot of accountants who take more aggressive position saying that not all of the distributions are liable for SE taxes, even if you're the sole employee of the corporation. These cases often end up in the Tax Court, and whatever the outcome, your legal fees become higher than the FICA savings. What is probably missing in your picture is the SS limit of (currently $112K) above which you don't pay social security tax, so whether you get it as a salary or as a distribution - that limit is the same. That is why you don't see a significant difference. I know there are a lot of accountants who'd disagree, but I would argue that for a sole employee of your company, S-Corp doesn't provide significant benefits over the disregarded LLC taxation, but has some additional overhead that adds to your expenses. Here's a link to a lawyer's blog where he suggests (and says many accountants follow) 60/40 division between salary and distributions. I.e.: his take, similarly to mine, is that most of the earnings have to be treated as salary. In your case, when the total is about 300K - you indeed will not get any FICA savings with such a division other than some of the medicare. Unusually low wages when compared to distributions can draw unwanted IRS scrutiny and an audit. An unfavorable audit will likely result in some portion of the distributions being reclassified as earned income for federal income tax purposes, which results in a deficiency assessment (i.e., a tax bill), interest on those unpaid taxes, and IRS penalties. The article also talks about the Watson case (one of the Tax Court cases I referred to), which can be used as the guidelines for determining the \"\"reasonable\"\" compensation. Talk to your tax adviser. I'm neither a tax adviser nor a tax professional. For a tax advice contact a CPA/EA licensed in your state. This is not a tax advice, just my personal opinion.\"",
"title": ""
},
{
"docid": "0d5db709426ecd7f9d7fbe0d9e7ed547",
"text": "They believe that it reduces the risk that Revenue Canada will deem you to be an employee and make them pay a whole pile of tax, EI, CPP and so on that should have been paid if you had been hired as an employee. It's my recollection that the employer gets dinged for both the employee and employer share of those withholdings (and generally the employer's share is larger than yours) so they really want to prevent it. There's a Revenue Canada publication about whether you're an employee or not. There's nothing on it about being incorporated, but still employers feel more protected when their contracts are incorporated. We did work as a sole proprietorship at the very beginning, so that we could deduct our losses against employment income earned earlier in the year, before we started the business. You can find clients who will take you on. We incorporated once the losses were over with (basically we had bought the equipment and office supplies we needed to get started.) It's a simple and relatively inexpensive thing to do, and gives clients a sense of protection. It won't protect you from your own poor decisions since you'll be a director of the firm.",
"title": ""
},
{
"docid": "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": ""
}
] |
fiqa
|
ec349e7fbd854389ecaf7037bb1d239a
|
My tenant wants to pay rent through their company: Should this raise a red flag?
|
[
{
"docid": "5d256f69d73c1c1546971bffb32a663d",
"text": "\"I disagree with the other respondents. If your tenant is an individual, renting in their individual capacity, there is no reason they need your SSN. They will not be sending a 1099 to you. If your tenant is a business, then your property is not a residential property. It is at least a \"\"corporate housing\"\", and you would have noticed that the contract was signed by a company representative in the capacity of being a company representative, not an individual person. In that case, that representative would also ask you to fill a form W9, on which your tax ID should be reported. I would suggest let the tenant figure out their tax avoidance issues without you being involved.\"",
"title": ""
},
{
"docid": "cf4a17e7e53a23ab14726c1951d8ddf1",
"text": "The company that's apparently going to pay this rent wants to treat it as a business expense. They are asking for your SSN because they expect to issue a 1099-MISC. (They probably gave you a Form W-9? It's not mandatory but it's common to request a taxpayer ID on this form.) There are a couple of issues at play here:",
"title": ""
},
{
"docid": "7c4fb00e6b3071eec30e978b68f7d54e",
"text": "Maybe you should consider setting up a Taxpayer Identification Number (TIN) for your business dealings as a landlord and consider providing that instead of your SSN for this type of thing. I am assuming (if this is legitimate) they want it so they can send you a 1099 as they might be obligated to do if they are claiming the rent as a business expense. Also, I'd suggest having the tenant tell their employer to contact you directly. There is no need for the tenant in this situation to also get your SSN/TIN.",
"title": ""
}
] |
[
{
"docid": "cfd81576bb7bf35d9fa0c764680262f3",
"text": "\"No. The full text of the Landlord-Tenant Act (specifically, section 554.614 of Act 348 of the year 1972) makes no mention of this. Searching the law for \"\"interest\"\" doesn't yield anything of interest (pardon the pun). Specifically, section 554.604 of the same law states that: (1) The security deposit shall be deposited in a regulated financial institution. A landlord may use the moneys so deposited for any purposes he desires if he deposits with the secretary of state a cash bond or surety bond written by a surety company licensed to do business in this state and acceptable to the attorney general to secure the entire deposits up to $50,000.00 and 25% of any amount exceeding $50,000.00. The attorney general may find a bond unacceptable based only upon reasonable criteria relating to the sufficiency of the bond, and shall notify the landlord in writing of his reasons for the unacceptability of the bond. (2) The bond shall be for the benefit of persons making security deposits with the landlord. A person for whose benefit the bond is written or his legal representative may bring an action in the district, common pleas or municipal court where the landlord resides or does business for collection on the bond. While it does sound like the landlord is required to deposit the money in a bank or other secured form, e.g. the Secretary of State, he/she isn't required to place it in an account that will earn interest.\"",
"title": ""
},
{
"docid": "5143aeb0b0a00bf3eeba177754bca3aa",
"text": "\"Without the specifics of the contract, as well as the specifics of the country/state/city you're moving to, it's hard to say what's legal. But this also isn't law.se, so I'll answer this from the point of view of personal finance, and what you can/should do as next steps. Whenever paying an application fee or a deposit, you need to ensure that you have in writing exactly what you're applying for or putting a deposit in for. Whether this is an apartment, a car, or a loan, before any money changes hands, you need to get in writing exactly what you're putting that money to. So for a car, you'd want to have the complete specifications - make, model, year, color, extra packages, and any relevant loan information if applicable. You wouldn't just hand a dealer $2000 for \"\"a Toyota Camry\"\", you'd make sure it was specified which one, in writing, as well as the total you're expecting to pay. Same for an apartment: you should have, in writing (email is fine) the specific unit you are putting a deposit for, and the specific rate you'll be paying, and the length of time the lease is for. This is to avoid a common tactic: bait and switch, which is what it looks like you've run into. A company puts forth a \"\"nice\"\" model, everything looks good, you get far enough in that it seems like you're locked in - and then it turns out you're really getting a less nice model that's not as ideal as whatever you signed up for. Now if you want to get what you originally signed up for you need to pay extra - presumably \"\"something was wrong in the original ad\"\", or something like that. And all you can hear in the background is Darth Vader... \"\"I am altering the deal. Pray I don't alter it any further.\"\" So; what do you do when you've been bait-and-switched? The best thing to do is typically to walk away. Try to get your application fee back; you may or may not be able to, but it's worth a shot, and even if you cannot, walk away anyway. Someone who is going to bait-and-switch on you is probably not going to be a good landlord; my guess is that rent is going to keep going up beyond the level of the market, and you probably can kiss your security deposit goodbye. Second, if walking away isn't practical for whatever reason, you can find out what the local laws are. Some locations (though very few, sadly) require advertised prices to be accurate; particularly the fact that they re-advertised the unit again for the same rate suggests they are falling afoul of that. You can ask around, search the internet, or best yet talk to a lawyer who specializes in this sort of thing; some of them will be willing to at least answer a few questions for free (hoping to score your business for an easy, profitable lawsuit). Be aware that it's not exactly a good situation to be in, to be suing your landlord; second only to suing your employer, in my opinion, in terms of bad things to do while hoping to continue the relationship. Find an alternative as soon as you can if you go this route. In the future, pay a lot of attention to detail when making application fees. Often the application fee is needed before you get into too much detail - but pick a location that has reasonable application fees, and no extras. For example, in my area, it's typical to pay a $25 application fee, nonrefundable, to do the credit check and background check, and a refundable $100-$200 deposit to hold the unit while doing that; a place that asks for a non-refundable deposit is somewhere I'd simply not apply at all.\"",
"title": ""
},
{
"docid": "9b5ad6c50ddd6f92617ff2bf39a2fb69",
"text": "That may become complicated depending on the State laws. In some States (California for example), LLCs are taxed on gross receipts, so you'll be paying taxes on paying money to yourself. In other States this would be a no-op since the LLC is disregarded. So you need to check your State law. I assume the LLC is not taxed as a corporation since that would be really stupid of course, but if it is then it adds the complexity of the Federal taxes on top as well (corporate entity will pay taxes on your rent, and you'll pay taxes on your dividends to get the money back). The best option would be to take that property out of the LLC (since there's no point in it anyway, if you're the tenant).",
"title": ""
},
{
"docid": "1569f93563ab208396b84015c60d687d",
"text": "* Absolutely agree with /u/IsAnAlpaca * You /must/ not agree to this without seeing his balance sheet. * That means assets and liabilities, but also ask for the last 12 months' cash flow * Inability or unwillingness to provide any of those things is a HUGE no-go red flag.",
"title": ""
},
{
"docid": "fab868581152d6464183e52963bacff7",
"text": "\"To the best of my knowledge, in California there's no such thing as registering a place as a business. There's zoning (residential/commercial/mixed/etc), and there's \"\"a business registered at a place\"\". But there's no \"\"place registered as a business\"\". So you better clarify what it is that you think your landlord did. It may be that the place is used for short term rentals, in which case the landlord may have to have registered a business of short term rentals there, depending on the local municipal or county rules. Specifically regarding the deposit, however, there's a very clear treatment in the California law. The landlord must provide itemized receipt for the amounts out of the deposit that were used, and the prices should be reasonable and based on the actual charges by the actual vendors. If you didn't get such a receipt, or the amounts are bogus and unsubstantiated - you have protection under the CA law.\"",
"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": "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": "7b73465541b505fd29eecafb445ece16",
"text": "The money your tenants spent on repairs and maintenance that is otherwise your responsibility is considered rent paid to you (and deductible to the extent you can deduct maintenance expenses, provided you have documentation etc etc). The money your tenants spent on utilities, which is their responsibility anyway, is not considered rent paid to you. Since in your question you seem to be mixing both together, it is hard to accept a claim that the additional $300 spent on utilities and maintenance is enough to bring the rent to the FMV level. Especially since the transaction is between related persons, it may bring additional scrutiny of the IRS.",
"title": ""
},
{
"docid": "b5adc69cca3d027f18083e62afca7523",
"text": "From the apartment owners perspective what was the purpose of $300? They promised they wouldn't rent it to somebody before you had a chance to see it. But lets say you did see it, and decided you didn't like the view. Would they have to give the money back? if so, why would they promise not to rent it if somebody showed up first? I would have made it clear, as the owner, what the money was for. It was a $300 fee to delay rental. You would have essentially bought x number of days of delay. You could view it as a mini-short-term rental. Of course there should have been paperwork involved. There should have been been a receipt that at least mentioned the amount of money involved. You may need to pay the amount owed, and may need to determine if you want to sue in small claims court. Of course your agent may have some liability based on your contract with them and any paperwork they signed when the money was sent to the owner. The fact that the bank sided with you doesn't mean the courts will.",
"title": ""
},
{
"docid": "669e68311bbc565174483b8e4fc5519f",
"text": "\"I'd say your tenant is out $750, not you. How you handle it is totally personal preference. If you want to be the super-nice landlord and eat the loss this one time, then you might gain some karma and hopefully they'll be awesome tenants for the remainder of their stay. Are they the kind of tenants you want to be nice to because they deserve it? You (and she) have no way to prove she ever actually tried to pay you. Sound like she is learning a $750 lesson. \"\"Don't leave cash in a mailbox, and always get a receipt for rent paid.\"\" Your insurance company would likely not pay out as it'd be below a typical deductible and you can't really prove the money ever existed. You'd be better off just taking the loss. Think about it this way: How would you expect a bank or utility company to respond to this situation? \"\"Yeah, I left my mortgage as a cash-filled envelope on your doorstep. You didn't get it? I told you I'd do it!\"\" Guess who's paying double mortgage and a late fee? You're not stuck with option 1, you're choosing to do it. She could refuse and fight you on it, which might not be worth the headache and potential small-claims court. But you're entitled to receive the rent and she is obligated to pay it. And \"\"paying it\"\" means making sure you actually receive it.\"",
"title": ""
},
{
"docid": "dcfb94807ecbf6a57b0435b1d135e4c6",
"text": "\"Assuming the renter was properly vetted, the only question worth asking is \"\"what has changed in your life?\"\" Perhaps one of the earners has lost a job, or has moved out because a couple has broken up. If nothing has changed but they just don't feel like paying you, start the eviction process. If something has changed and you assess that it's temporary (I lent my brother money and he didn't pay me back - I'll be behind for a few months but I will catch up; my employer went out of business and didn't pay me for the last two weeks - I have a new job already and am waiting for my first paycheque) then perhaps you are willing to wait. If something has changed and it seems pretty permanent then you might reluctantly start the process. Depending on how long it takes where you live, the renter might get things under control before you finish.\"",
"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": "d7c29e9c4ebb6e172ec8547493df051c",
"text": "\"If you pay her rent, how do you differ from a tenant in the eyes of the law? I ask this to show that you are in a business relationship first and foremost. If you don't want to file jointly, there is nothing compelling about your situation to force it. (Grant you, in most countries, there is a benefit to filing jointly) but here, I would argue it would be difficult to make the case. There are, to the best of my knowledge, no laws barring opposite sex landlord-tenant rental situations. Furthermore, there are no laws barring romantic relationships amongst landlords and tenants. Indeed, you would need to prove your relationship in some fashion for it to even be considered. In establishing a date of separation from my soon-to-be-ex-wife, for example, I merely needed to prove that we were not \"\"presenting ourselves as husband and wife.\"\" Once I showed that we didn't sit together at church and that she was attending parties I wasn't, that was sufficient. Proving you are in a relationship is actually a lot harder than proving you're not.\"",
"title": ""
},
{
"docid": "2d3841fc3f6ff1124683964bd1c14213",
"text": "Because you're not married, its a partnership agreement, and unless there's a written contract, either the two of you agree on how to handle the home, or it's off to court you go. If you were both supposed to pay for the home, and he failed to for a a while, that would put him in breach of contract which I would think gives you a good position in court. On the other hand, if you are at all concerned about your safety from this louse, remember, he knows exactly where the house is.",
"title": ""
},
{
"docid": "a2b34353f037de897b420fd6ac257afe",
"text": "\"Should you negotiate? Yes, what harm can it possibly do? The landlord is unlikely to come back and say \"\"Because you tried to negotiate, I'm putting the rent up by 10% instead.\"\", or to evict a paying tenant merely because they tried to negotiate. Is the proposed rent increase \"\"normal\"\"? Yes. Landlords will generally try to get as high a rent as they can.\"",
"title": ""
}
] |
fiqa
|
b079ca5fde42796315e34c9b43893703
|
Tools for comparing costs between different healthcare providers?
|
[
{
"docid": "10dad58de53089d15cf755545b887fc9",
"text": "\"There really isn't any good ways that I'm aware of. (The exception is in New York or California, where hospitals must post prices.) The law sets price floors on many procedures by setting Medicare and Medicaid reimbursement rates. As a result, the \"\"list price\"\" for a given procedure is dramatically inflated, and various health insurers negotiate rates somewhere in the middle. I'd recommend talking to the business offices or financial counselors at medical groups that you do business with. Ask about \"\"self pay discounts\"\" or other programs appropriate for folks in your position.\"",
"title": ""
},
{
"docid": "f185953aed490ec9c110be633b433b9c",
"text": "When I had a high-deductible healthcare plan, I used http://www.ehealthinsurance.com/ to do comparisons among the plans. As far as comparing the costs of specific procedures across providers, I'm not aware of any good ways either.",
"title": ""
}
] |
[
{
"docid": "263ebfef8a5f308be4a90c24ac0a5afd",
"text": "A competent Indian VA cost about 4-6 an hour. Realistically speaking, with that budget, nobody is going to be on the phone 8 hours a day 5 days a week. But small tasks and data entry could work. Western VAs are a much pricer but they you can find some for 200 a month. I have a biz that offers similar services, but the price you are looking for is a bit low, but I can work something out if your interested. Otherwise, it would be best to search for NYC based VA companies that have a team of indians working. But what you get is a luck of the draw.",
"title": ""
},
{
"docid": "318d1517ba7429f4cad193d5cae9c59d",
"text": "If you are disputing the size of the charge for specific services, like you think that they overcharged for lab work, you can try disputing it with the business office staff at the doctor's office. If, on the other hand, you just think that the overall bill is too expensive then you really only have one option. You can ask if they will reduce the bill for you. Most hospitals and clinics I've dealt with have programs set up for this, but you usually access them by filling out paperwork demonstrating financial hardship (along with supporting documents). It never hurts to ask. But with the services already rendered the only person with an interest in reducing the bill is you. The reduction, if any, will probably depend on what the clinic thinks your ability to pay is compared with the cost to them of pursuing you for payment, as well as the amount of funding they have for bill reduction. When I worked in the financial services office of a hospital a $400 bill would not even have been reviewed for discounting-- the balance would be too low to devote staff time to reviewing. It's frustrating, and even asking in advance might not have given you accurate (or any!) information on what the cost of the visit would be, so your ability to shop around is limited. Unfortunately, that doesn't give you any additional options in this case.",
"title": ""
},
{
"docid": "9b677bf9fd32eb6bc39174c40ce70a5b",
"text": "If the hospital is run like hospitals in the US it can take a long time just to determine the bill. The hospital, Emergency room, ER doctors, surgeons, anesthesiologists, X-Ray department, pharmacy and laboratory are considered separate billing centers. It can take a while to determine the charges for each section. Is there an insurance company involved? When there is one involved it can take weeks or months before the hospital determines what the individual owes. The co-pays, coverages, and limits can be very confusing. In my experience it can take a few months before the final amount is known. You may want to call the hospital to determine the status of the bills.",
"title": ""
},
{
"docid": "ccde069c7755ed62ee56a93b5a2fb5fd",
"text": "I would suggest that you try ClearCheckbook. It is kind of like Mint, but you can add and remove things (graphs, features, modules) to make it as simple or diverse as you need it to be. It should be a workable solution for simply tracking both income and expenses, yet it will also provide extra features as needed. There is a free option as well as a paid option with added features. I have not used ClearCheckbook before, but according to their features page it looks like you may have to upgrade to the paid option if you want to have complete tagging/custom field flexibility.",
"title": ""
},
{
"docid": "2e73af8ed93d1669a723747bf0477a5f",
"text": "\"Yes, you've successfully proved that I think NPV and marginal utility are the same thing. Let me state this explicitly. You didn't hesitate to throw out tools that don't agree with your prescriptions. You invoked the false premise that indivuduals manually and exhaustively calculate NPV of possible decisions. Instead of refuting the points of the argument you resorted to personal attacks. That's fine, I've already lowered my expectations after reading your first comment. If NPV should be thrown out because you claim noone explictly uses it to guide their decisions what does that say about marginal utility? Why should 1 tool be thrown out but the other kept? Essentially you are saying we should keep all of the tools that confirm your absurd assertions and throw out the tools that may cast doubt on them. But hey, maybe I should \"\"stop acting like I know what I'm talking about\"\"\"",
"title": ""
},
{
"docid": "57e1115d5f30efd13813bb51c89ac504",
"text": "Hey, I was thinking back to that X-Ray you got done at the hospital, that you said was cheaper than 90% of the population. I am wondering if maybe that hospital wasn't one of the many that qualify for DSH reimbursement payments. What could have happened is that they saw that you are uninsured, and made a decision that they would only charge you for the portion that they didn't think Medicare / Medicaid would reimburse. If that happened, it wouldn't even show up on your credit report, as the hospital is the one that would file a credit claim. Likely, if they have to go through this a lot, they wouldn't even waste time filing a credit claim, they would just go after a reimbursement through Medicare / Medicaid. And thus, to you, it would just look like a very small bill, but in reality it would only represent a smaller portion of the true bill. I would also wonder, if they do a lot of these, if they aren't also one of the hospitals that article I linked to showed was super-inflating the prices of uninsured in the hopes of getting a larger portion reimbursed.",
"title": ""
},
{
"docid": "7539b9988f0a814c141ac2ad49451470",
"text": "Keep in mind there are some examples of combination medications that have improved outcomes. I'm thinking specifically of HIV meds, HEP C medications, and other combo meds for infectious disease. Truvada for example. It's one pill. Emtricitibine and tenofovir. Taken alone emtricitibine and tenofovir have complex and tedious pill regimens (like most other HIV meds regimens) but for patients to be able to take one pill, once a day has made their compliance with the med regimen much better. Lower viral load, higher cd4 counts, and improved management of their HIV. I'm not saying the absurd price hikes of these other meds are warranted. They're not. But when dealing with public health issues, and infectious disease in a population that has a difficult time being compliant with their meds, combo meds are worth the cost.",
"title": ""
},
{
"docid": "f0ead864c41156712a3fe4d3e8335176",
"text": "Determining the value of a service is an art, not a science. It depends on what others are charging, the quality and complexity and annoyance factor of the work, availability of people with the skill to do the work, etc. This topic can and does fill books, plural, and can't be answered fully here. As a customer, the answer is to get multiple quotes, understand how they differ, and pick the one you are most comfortable with. Last job I priced, I got three quotes, discarded the lowball who didn't know PT from cedar, discarded the one with the luxury price, and went with the guy in the middle who did adequate (not great) work for a tolerable fee. For a different kind of job I might have decided otherwise, or chucked all three and looked for more quotes from respected firms.",
"title": ""
},
{
"docid": "2b0e332ffa8a284d5b2e0173613b0944",
"text": "CrimsonX did a great job highlighting the primary pros and cons of HSAs, so I won't go into detail there. However, I did want to point out another pro - HSAs are (or can be) easy to manage. You said: Is this a better way to approach health care costs instead of itemizing health care expenses on yearly federal taxes? I'm not sure which company you are looking at establishing your HSA with, but with mine I have a debit card that I use when paying for medical care and then at the end of the year I get a 1099-SA that provides the amount of money spent on qualified purchases that calendar year. Yes, there are a few extra boxes I need to fill in for my 1040 come tax time, but I don't need to itemize my healthcare costs over the year. It really is pretty simple and straightforward. Also, one con that is worth noting is that you become much more sensitive to healthcare costs due to the high deductible healthcare plan an HSA requires. For example, in all the years we've had an HSA we've not yet met our deductible, which means we pay out of pocket for any non-routine doctor visits. (The health insurer pays 100% of routine visits, like my wife's annual, well-baby check ups for the little one, and so on.) So, when you're feeling really sick and think a doctor's visit would be warranted, you have to make a decision: After being faced with this decision a time or two you will start to envy those who have just a $20 copay! Of course, that's just an emotional con. Each year I run the numbers on how much we spent per year on out of pocket plus premiums and compare it to what it would cost in premiums for an HMO-type plan, and the HSA plan always comes ahead. (In part because we are a pretty healthy family and I work for myself so do not get to enjoy group discount rates.) But I thought it worth mentioning because there are certainly times when I know I need to see a doctor or specialist and I cringe because I know I am going to be slapped with a big bill in the not too distant future!",
"title": ""
},
{
"docid": "f5bec49fc704181aa03613c3ead464a2",
"text": "\"Lets put glib non-answers into perspective. - There is not a single number: how many wounds. Then, dividing the total per this value, you'd know a bit more. - They are generous in a lot of other percentages which, of course, mean crap without this. 5.8% of what? Is that 5 people shot, or 50000? - The % of people without insurance is interesting, but a far more interesting value would be: X of the value is uninsured, in Y of the wounds. Then you'd know whether uninsured wounds are costlier on average. - There is a 20 to 1 differential in 5000 to 100 000. Doesn't really tell us either average or median. - What cost is accounted? Cost first billed? Values actually paid? Accounting cost of the actual care? Same price measure for the ones insured, and the ones uninsured? A standardized cost per types of wounds? If an hospital charges 100000 for the same another asks 20000 for, its meaningless. Societal cost is one thing, the billing fantasies of the american health system another. If you fail to understand what is contained in what you read, and then again fail to understand when it is pointed out, then you do waste a lot of resources. For those that CAN read, you can see how a full article can be read and published that contains no real information or original thought or research about a problem, being useless to define it. Its a \"\"feel this\"\" piece, knowledge is optional.\"",
"title": ""
},
{
"docid": "99e521f85fb70eeed53177745a07f388",
"text": "I'm not disputing that. I just said in answer to the guy pointing out that indonesian people earn less that this price might be higher than what the locals pay. Often hospitals will have higher prices for foreigners with insurance etc. So I was actually strengthening your point.",
"title": ""
},
{
"docid": "24a78ce01e579101c6b2cf6529438d5b",
"text": "It is meant to be a Valuation Model. So the data I have collected are for the Addressable Markets in potential countries( i.e. population currently affected by the disease and potential growth of the disease in the future). Possible competition for the drug. And most importantly the expenses of the drug (how much it cost to create the drug and clinical trails etc.) I need to create a Revenue chart and the Pricing for the drug as well. What I am looking for is someone who is familiar with creating a valuation model or has a template and can give me advice on how to structure this. thanks.",
"title": ""
},
{
"docid": "64c4ccde4ee50cfa5b1328ff7781c804",
"text": "\"I had a similar issue take place at a hospital when the repeatedly billed the \"\"wrong me\"\" -- a stale insurance record left behind from when I was a dependent on my parent's insurance a decade earlier. They ended up billing me for anesthesia when I had a major surgery (everything else was billed to the correct insurance.) The outsourced billing people were pretty unhelpful (not usually the case with hospitals), so I became the squeaky wheel. I sent certified letters, had my priest rattle the cage (it was a Catholic hospital) and eventually talked myself into a meeting with the VP of Finance, who started paying attention when the incompetence of his folks became apparent. Total cost: $0 + my time.\"",
"title": ""
},
{
"docid": "6d8b5d2d18ca80beb458fb984738ce57",
"text": "\"Whoa whoa whoa, let's not twist that data and make an assertion that it doesn't support. Yes, medical inflation has outpaced the CPI for ages, *but* when you disaggregate spending into Medicare (US single-payer) and private insurers, [Medicare is able to better contain costs](http://content.healthaffairs.org/content/22/2/230.full) (my hypothesis: likely due to its ability to leverage its scale and keep costs low, while private insurers are fragmented against strong provider networks). But wait! you're thinking: shouldn't market forces keep insurance outlays low? It's Econ 101, right? Theoretically they should, but this ignores the industrial structure of healthcare providers and assumes perfect competition that doesn't exist. Typically, providers (doctors groups, hospitals, etc) are [highly localized and able to exercise significant market power in a community](http://content.healthaffairs.org/content/23/2/8.full) relative to several insurance plans who are competing to contract that provider \"\"in-network.\"\" For example, when Aetna, Cigna, and BCBS go up against, hypothetically, Cedars-Sinai to negotiate payment rates, Cedars has the ability to obtain high reimbursement rates because the three insurers have to have that provider in-network to remain competitive. Ironically, the less competition on the insurer side in that market, the better reimbursement rates would be observed since the sole insurer would capture a large fraction of patients in the geographic area served and could use that volume to negotiate better rates. Finally, there's the overhead issue. Medicare has lower overhead expenses than private insurers do (again, my guess: greater economies of scale and lower advertising and marketing costs, coupled with no profit motive). [Even health insureres themselves agree (.pdf warning)](http://www.cahi.org/cahi_contents/resources/pdf/CAHI_Medicare_Admin_Final_Publication.pdf) that Medicare has lower overhead costs, and that includes some questionable addition of what the authors claim are hidden Medicare expenses. I'm inclined to believe that a single-payer is probably more efficient and cheaper than a fragmented private insurance market. That said, I also find some sympathy to the argument that maintaining a robust private insurance market may spur innovation on payor innovation (e.g., increased participation in wellness programs for enrollees, or increasing the likelihood that patients be more sensitive to costs and benefits when seeking care). After all, countries like Germany and Switzerland are able to maintain a private insurance market while ensuring nearly universal coverage. Either way, though, arguing that health inflation alone makes single payer systems \"\"mathematicaly unsustainable\"\" isn't a strong argument, since private insurers are currently doing **worse** on cost containment.\"",
"title": ""
},
{
"docid": "3986b8ad3cefc7cfe6ef7d44ea9dd44b",
"text": "On topic of Healthcare needs, I think it depend on individual. For example, my employer's dental plan offer PPO $34 per month and DMO $12 per month. I have my favor dentist that I have been going for years. He only accept PPO. I already had most of my dental works done so I only use him for teeth clean. He charge $100 without insurance and free with insurance. I can only use my insurance for teeth clean twice a year so $34x12 = $408 vs $200. If I go with DMO, I won't get to see my doctor and since I get my teeth once a year why not just save that money and go to my favor doctor instead the DMO doctors and if I need major dental works done which isn't immediate. I can go to Taiwan for dental works that is way cheaper than U.S. I think if you're a healthy young man/women. You should put more money toward your retirement and only keep insurance for emergency. You can do a medical tourism mentioned in 60 minutes that can be more cost effective and those doctors are U.S. trained. For older folks, a full Health care insurance is more needed than retirement. Just my two cents.",
"title": ""
}
] |
fiqa
|
b64683f2e01788d90f6dd6137c938f5e
|
How are investment funding valued when invested in a company before it goes public?
|
[
{
"docid": "87b5c999ab6c956258894265f2a2b654",
"text": "This is a question of how does someone value a business. Typically, it is some function of how much the company owns, how much the company owes, how risky is the company's business, and how much the company makes in profit. For example if a company (or investment) make $100/year, every year no matter what, how much would you pay for that? If you pay $1,000 you'll make 10% each year on your investment. Is that a good enough return? If you think the risk of the company requires a 20% payoff, you shouldn't pay more than $500 for the company.",
"title": ""
}
] |
[
{
"docid": "b77ce1eda52bbf046d67670793dc2e8d",
"text": "You have a lot of different questions in your post - I am only responding to the request for how to value the ESPP. When valuing an ESPP, don't think about what you might sell the shares for in the future, think about what the market would charge you for that option today. In general, an option is worth much less than the underlying share itself. For the simplest example, assume you work at a public company, and your exercise price for your options is $.30, and you can only exercise those options until the end of today, and the cost of the shares on the public stock exchange is also $.30. You have the same 'strike price' as everyone else in the market, making your option worth nothing. In truth, holding that right to a specific strike price into the future does give you value, because it means you can realize the upside in share price gains, without risking any money on share losses. So, how do you value the options? If it's a public company with an active options market, you can easily compare your $.30 strike price with the value of call options in the market that have a $.30 strike price. That becomes the value to you of the option (caveat: it is unlikely you can find an exact match for the terms of your vesting period, but you should be able to find a good starting point). If it's a public company without an active options market, you will have to do a bit of estimation. If a current share is worth $.25 (so, close to your strike price), then your option is worth a little bit, but not much. Compare other shares in your industry / company size to get examples of the relative value between an option and a share. If the current share price is worth $.35, then your option is worth about $.05 [the $.05 profit you could get by immediately exercising and selling, plus a bit more for an option on a share that you can't buy in the open market]. If it's a private company, then you need to be very clear on how shares are to be valued, and what methods you have available to sell back to the company / other individuals. You can then consider as per above, how to value the option for a share, vs the share itself. Without a clear way to sell your shares of a private company [ideally through a sale directly back to the company that you are able to force them to agree on; ie: the company will buyback shares at 5x Net income for the previous year, or something like that], then the value of a small number of shares is very nebulous. There is an extremely limited market for shares of private companies, if you don't own enough to exert control. In your case, because the valuation appears to be $2/share [be sure that these are the same share classes you have the option to buy], your option would be worth a little more than $1.70, if you didn't have to wait 4 years to exercise it. This would be total compensation of about $10k, if you were able to exercise today. Many people don't end up working for an early job in their career for 4 years, so you need to consider whether how much that will reduce the value of the ESPP for you personally. Compared with salary of 90k, 10k worth of stock in 4 years may not be a heavy motivating compensation consideration. Note also that because the company is not public, the valuation of $2/share should be taken with a grain of salt.",
"title": ""
},
{
"docid": "5467dcadbea676578ee66dca23e951b4",
"text": "\"I think it's easiest to illustrate it with an example... if you've already read any of the definitions out there, then you know what it means, but just don't understand what it means. So, we have an ice cream shop. We started it as partners, and now you and I each own 50% of the company. It's doing so well that we decide to take it public. That means that we will be giving up some of our ownership in return for a chance to own a smaller portion of a bigger thing. With the money that we raise from selling stocks, we're going to open up two more stores. So, without getting into too much of the nitty gritty accounting that would turn this into a valuation question, let's say we are going to put 30% of the company up for sale with these stocks, leaving you and me with 35% each. We file with the SEC saying we're splitting up the company ownership with 100,000 shares, and so you and I each have 35,000 shares and we sell 30,000 to investors. Then, and this depends on the state in the US where you're registering your publicly traded corporation, those shares must be assigned a par value that a shareholder can redeem the shares at. Many corporations will use $1 or 10 cents or something nominal. And we go and find investors who will actually pay us $5 per share for our ice cream shop business. We receive $150,000 in new capital. But when we record that in our accounting, $5 in total capital per share was contributed by investors to the business and is recorded as shareholder's equity. $1 per share (totalling $30,000) goes towards actual shares outstanding, and $4 per share (totalling $120,000) goes towards capital surplus. These amounts will not change unless we issue new stocks. The share prices on the open market can fluctuate, but we rarely would adjust these. Edit: I couldn't see the table before. DumbCoder has already pointed out the equation Capital Surplus = [(Stock Par Value) + (Premium Per Share)] * (Number of Shares) Based on my example, it's easy to deduce what happened in the case you've given in the table. In 2009 your company XYZ had outstanding Common Stock issued for $4,652. That's probably (a) in thousands, and (b) at a par value of $1 per share. On those assumptions we can say that the company has 4,652,000 shares outstanding for Year End 2009. Then, if we guess that's the outstanding shares, we can also calculate the implicit average premium per share: 90,946,000 ÷ 4,652,000 == $19.52. Note that this is the average premium per share, because we don't know when the different stocks were issued at, and it may be that the premiums that investors paid were different. Frankly, we don't care. So clearly since \"\"Common Stock\"\" in 2010 is up to $9,303 it means that the company released more stock. Someone else can chime in on whether that means it was specifically a stock split or some other mechanism... it doesn't matter. For understanding this you just need to know that the company put more stock into the marketplace... 9,303 - 4,652 == 4,651(,000) more shares to be exact. With the mechanics of rounding to the thousands, I would guess this was a stock split. Now. What you can also see is that the Capital Surplus also increased. 232,801 - 90,946 == 141,855. The 4,651,000 shares were issued into the market at an average premium of 141,855 ÷ 4,651 == $30.50. So investors probably paid (or were given by the company) an average of $31.50 at this split. Then, in 2011 the company had another small adjustment to its shares outstanding. (The Common Stock went up). And there was a corresponding increase in its Capital Surplus. Without details around the actual stock volumes, it's hard to get more exact. You're also only giving us a portion of the Balance Sheet for your company, so it's hard to go into too much more detail. Hopefully this answers your question though.\"",
"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": "821e3eecf2857fc1405d1f4b33e8d359",
"text": "The value of a company is, simplified, the sum of the value of the equity and the value of the debt. There are some other things to add/subtract to that, but just think about those for now. You could also say the value of a company is the value of its assets, or more precisely the value of the net cash flows those assets will generate in the future. So let's say you want to start a company, so you want to buy some assets. Maybe you want to buy a $200 asset. Well, you only have $100, so you take out a loan (debt) for $100 for the remainder. You buy the asset and start generating income. Let's say after a month you get bored and decide to sell the company. Let's assume the value of the assets hasn't changed. Your equity is worth $100, and you find a buyer who is willing to pay $100 for your company. Great! Right? Well there's still the $100 loan you owe, so you have to pay that back. And suddenly you now have $0. So in fact, you should have negotiated $200 with the buyer, because that's what the assets are actually worth. Then you can pay back the loan and still have the $100 in equity you deserve. (Alternatively, you could have negotiated the buyer to assume responsibility for the loan; same outcome for you.) Did that help?",
"title": ""
},
{
"docid": "c4bef758a078cff5aded80dbc6fc24be",
"text": "\"Matt explains the study numbers in his answer, but those are the valuation of the brand, not the value of the company or how \"\"rich\"\" the company is. Presuming that you're asking the value of the company, the usual way for a publicly traded company to be valued is by the market capitalization (1). Market capitalization is a fairly simple measure, basically the total value of all the shares of stock in that company. You can find the market cap for any publicly traded company on any of the usual finance sites like Google Finance or Yahoo Finance. If by rich you mean the total value of assets (assets being all property, including cash, real property, equipment, and licenses) a company owns, that information is included in a publicly traded company's quarterly SEC filing and investor releases, but isn't usually listed on the popular finance sites. An example can be seen at Duke Energy's Investor Relation Site (the same information can be found for all companies on EDGAR, the SEC's search tool). If you open the most recent 8-K (quarterly filing), and go to page 8, you can see that they have $33B+ in assets, and a high level breakdown of those. Note that the numbers are given in millions of dollars For a privately held company this information may or may not be available and you'd have to track it down if it is available. I picked Duke Energy because it's the first thing that popped into my mind. I have no affiliation with Duke, and I don't directly own any of their stock.\"",
"title": ""
},
{
"docid": "c214d560ed54ea4495c8526b2894adf6",
"text": "The worth of a share of stocks may be defined as the present cash value of all future dividends and liquidations associated therewith. Without a crystal ball, such worth may generally only be determined retrospectively, but even though it's generally not possible to know the precise worth of a stock in time for such information to be useful, it has a level of worth which is absolute and not--unlikely market price--is generally unaffected by people buying and selling the stock (except insofar as activities in company stock affect a company's ability to do business). If a particular share of stock is worth $10 by the above measure, but Joe sells it to Larry for $8, that means Joe gives Larry $2. If Larry sells it to Fred $12, Fred gives Larry $2. The only way Fred can come out ahead is if he finds someone else to give him $2 or more. If Fred can sell it to Adam for $13, then Adam will give Fred $3, leaving Fred $1 better off than he would be if he hadn't bought the stock, but Adam will be $3 worse off. The key point is that if you sell something for less than it's worth, or buy something for more that it's worth, you give money away. You might be able to convince other people to give you money in the same way you gave someone else money, but fundamentally the money has been given away, and it's not coming back.",
"title": ""
},
{
"docid": "34bbcb90aefee6b1b90f85ab10a1b6d5",
"text": "While there are many very good and detailed answers to this question, there is one key term from finance that none of them used and that is Net Present Value. While this is a term generally associate with debt and assets, it also can be applied to the valuation models of a company's share price. The price of the share of a stock in a company represents the Net Present Value of all future cash flows of that company divided by the total number of shares outstanding. This is also the reason behind why the payment of dividends will cause the share price valuation to be less than its valuation if the company did not pay a dividend. That/those future outflows are factored into the NPV calculation, actually performed or implied, and results in a current valuation that is less than it would have been had that capital been retained. Unlike with a fixed income security, or even a variable rate debenture, it is difficult to predict what the future cashflows of a company will be, and how investors chose to value things as intangible as brand recognition, market penetration, and executive competence are often far more subjective that using 10 year libor rates to plug into a present value calculation for a floating rate bond of similar tenor. Opinion enters into the calculus and this is why you end up having a greater degree of price variance than you see in the fixed income markets. You have had situations where companies such as Amazon.com, Google, and Facebook had highly valued shares before they they ever posted a profit. That is because the analysis of the value of their intellectual properties or business models would, overtime provide a future value that was equivalent to their stock price at that time.",
"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": "e656547f1bc1d937b6442ccc45a63ab2",
"text": "When a stock is going to become public there's a level of analysis required to figure out the range of IPO price that makes sense. For a company that's somewhat mature, and has a sector to compare it to, you can come up with a range that would be pretty close. For the recent linkedin, it's tougher to price a somewhat unique company, running at a loss, in a market rich with cash looking for the next great deal. If one gives this any thought, an opening price that's so far above the IPO price represents a failure of the underwriters to price it correctly. It means the original owners just sold theirvshares for far less than the market thought they were worth on day one. The day of IPO the stock opens similar to how any stock would open at 9:30, there are bids and asks and a price at which supply (the ask) and demand (bid) balance. For this IPO, it would appear that there were enough buyers to push the price to twice the anticipated open and it's maintained that level since. It's possible to have a different system in which a Dutch auction is used to make the shares public, in theory this can work, it's just not used commonly.",
"title": ""
},
{
"docid": "718c94c2f02d2b07d82175dba8776ff6",
"text": "\"The company gets the proceeds from the sales of shares on the open market. If a company is selling 1,000,000 shares at $12/share then they will receive $12,000,000 from the underwriter minus some fees that the underwriter will collect. The part that ties into valuation is to consider what percentage is the company selling of itself that is coming from its own holdings. If the company is putting out 10% of its shares in the IPO from treasury holdings on a $10B valuation then it will get $1B minus the fees I'd suspect. Where I worked in late 1990s/early 2000s had an IPO where the underwriter did a bridge loan and the IPO so that the company didn't get all the money raised but did get enough to run operations for a while before ending operations. Public Offering notes that after an IPO other offerings would be called \"\"seasoned equity offering\"\" that may or may not be dilutive as they could come from new or existing shares.\"",
"title": ""
},
{
"docid": "145a5decacc13be14030121db03b4578",
"text": "The (assets - liabilities)/#shares of a company is its book value, and that number is included in their reports. It's easy for a fund to release the net asset value on a daily basis because all of its assets (stocks, bonds, and cash) are given values every day by the market. It's also necessary to have a real time value for a fund as it will be bought and sold every day. A company can't really do the same thing as it will have much more diverse assets - real estate, cars, inventory, goodwill, etc. The real time value of those assets doesn't have the same meaning as a fund; those assets are used to earn cash, while a fund's business is only to maximize its net asset value.",
"title": ""
},
{
"docid": "1343c7ed17d2c9d9ea47022e828c951c",
"text": "Not sure of the question here if by IPO(initial public offering) you mean private company then: A company can invest its excess money into other companies, to earn returns. Also a company that is private can attract private investment if the sector is doing well on publicly traded markets. Finally a company can diversify away risk, by holding shares of a company that would benefit in the event of a disruption in their own industry.",
"title": ""
},
{
"docid": "e30c1a9481ded4a26c6feb5502718faa",
"text": "My understanding is you can create a company 0 value. Then you need to either loan the company the money to buy the building (it will still have 0 value as it will have a debt equal to it's assets) or sell share to investors at any price you like to raise the money to buy the building. Once shares have value (as valued by a chartered accountant - not anyone can do this) then anyone recieving shares will have to pay income tax. This is why keeping the shares as no value for as long as possible can be preferable. Also a benefit of using share options. talk to your investors, see what they require.",
"title": ""
},
{
"docid": "a3f2365912ad92fdb6806f5009bb20a8",
"text": "As far as I know, the AMT implications are the same for a privately held company as for one that is publicly traded. When I was given my ISO package, it came with a big package of articles on AMT to encourage me to exercise as close to the strike price as possible. Remember that the further the actual price at the time of purchase is from the strike price, the more the likely liability for AMT. That is an argument for buying early. Your company should have a common metric for determining the price of the stock that is vetted by outside sources and stable from year to year that is used in a similar way to the publicly traded value when determining AMT liability. During acquisitions stock options often, from what I know of my industry, at least, become options in the new company's stock. This won't always happen, but its possible that your options will simply translate. This can be valuable, because the price of stock during acquisition may triple or quadruple (unless the acquisition is helping out a very troubled company). As long as you are confident that the company will one day be acquired rather than fold and you are able to hold the stock until that one day comes, or you'll be able to sell it back at a likely gain, other than tying up the money I don't see much of a downside to investing now.",
"title": ""
},
{
"docid": "59c4d3ea50aad7d39d3a7495aa8e3924",
"text": "Book value = sell all assets and liquidate company . Then it's the value of company on book. Price = the value at which it's share gets bought or sold between investors. If price to book value is less than one, it shows that an 100$ book value company is being traded at 99$ or below. At cheaper than actually theoretical price. Now say a company has a production plant . Situated at the most costliest real estate . Yet the company's valuation is based upon what it produces, how much orders it has etc while real estate value upon which plant is built stays in book while real investors don't take that into account (to an extend). A construction company might own a huge real estate inventory. However it might not be having enough cash flow to sustain monthly expense. In this scenario , for survival,i the company might have to sell its real estate at discount. And market investors are fox who could smell trouble and bring price way below the book value Hope it helps",
"title": ""
}
] |
fiqa
|
39c87d91d52668d6dafc4f59ae9dadf1
|
How to manage 20 residential apartments
|
[
{
"docid": "4947e3208e0f0fd6a510771e77a0b9e3",
"text": "If he can't manage, best is he sells it off. Its easier to manage cash. Not sure what tax you are talking about. He should have already paid tax on fair market value of the 20 flats. If the intention of Mr X is to gift to son by way of death, then yes the tax will be less. Else whenever Mr X sells there will be tax. how to manage these 20 apartments? Hire a broker. He may front run quite a few things like showing the place etc. There is a risk if he is given a free hand, he may not get good quality tenant. There are quite a few shark brokers [its unregulated] who may arm twist seeing the opportunity of an old man with 20 flats. See if you can do long term lease with companies looking for guest house etc, or certain companies who run guest house. They would like the scale, generally 3-5 years contracts are done. The rent is good and overall less hassle. The risk is most would ask to invest more in furnishing and contracts can be terminated in months notice. If the property is in large metro [Delhi/Bangalore/Chennai/etc] These places have good property management companies. Ensure that you have independent lawyer; there are certain aspects of law that may need to be studied.",
"title": ""
},
{
"docid": "c5a6e5ffd6b132189f7b39f5213d9725",
"text": "I have no idea about India, but in many countries there are companies that specialize in property management. This means they will take on the business of maintaining the properties, finding tenants, doing paperwork and background checks, collecting rents and evicting tenants if necessary. Obviously for this they require a fee, but essentially the owner gets to sit back and do nothing except collect a cheque every month. In my country some real estate agents are in this business as well, though for 20 apartments I would be looking for a specialized firm.",
"title": ""
},
{
"docid": "8daccb4c7d1963417fafccde3f1149a4",
"text": "There are many property management companies are available in India. You can easily find trusted companies just searching on the google. They manage all these things legally. You just try this",
"title": ""
}
] |
[
{
"docid": "4ac2c64ce70259bde39978411a151518",
"text": "\"with 150K € to invest to \"\"become a landlord\"\" you have several options: Pay for 100% of one property, and you then will make a significant percentage of the monthly rent as profit each month. That profit can be used to invest in other things, or to save to buy additional properties. At the end of the 21 years in your example, you can sell the flat for return of principal minus selling expenses, or even better make a profit because the property went up in value. Pay 20% down on 5 flats, and then make a much a smaller profit per flat each month due to the mortgage payment for each one. At the end of the 21 years sell the flats. Assuming that a significant portion of the mortgage is paid off each flat will sell for more than the mortgage balance. Thus you will have 5 nice large profits when you sell. something in between 1 and 5 flats. Each has different risks and expenses. With 5 rental properties you are more likely to use a management company, which will add to your monthly cost.\"",
"title": ""
},
{
"docid": "32f65fc97fd635d2e2758c4e3e51da9d",
"text": "I owned and managed a few residential properties. At one time the net cash flow was on the order of $1000 per month. But it was work. Lots of work. I was managing about 7 units. This does not count the gains in capital appreciation which were significant. Using a management company would have put the cash flow at 0 or in the negative and would have lowered the quality of management IMO. Nothing comes for free...",
"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": "d0255b03e9b26ac7886bc7db1ca7075a",
"text": "\"I agree with Joe Taxpayer that a lot of details are missing to really evaluate it as an investment... for context, I own a few investment properties including a 'small' 10+ unit apartment complex. My answer might be more than you really want/need, (it kind of turned into Real Estate Investing 101), but to be fair you're really asking 3 different questions here: your headline asks \"\"how effective are Condo/Hotel developments as investments?\"\" An answer to that is... sometimes, very. These are a way for you-the investor-to get higher rents per sq. ft. as an owner, and for the hotel to limit its risks and access additional development funding. By your description, it sounds like this particular company is taking a substantial cut of rents. I don't know this property segment specifically, but I can give you my insight for longer-term apartment rentals... the numbers are the same at heart. The other two questions you're implying are \"\"How effective is THIS condo/hotel development?\"\" and \"\"Should you buy into it?\"\" If you have the funds and the financial wherewithal to honestly consider this, then I am sure that you don't need your hand held for the investment pros/cons warnings of the last question. But let me give you some of my insight as far as the way to evaluate an investment property, and a few other questions you might ask yourself before you make the decision to buy or perhaps to invest somewhere else. The finance side of real estate can be simple, or complicated. It sounds like you have a good start evaluating it, but here's what I would do: Start with figuring out how much revenue you will actually 'see': Gross Potential Income: 365 days x Average Rent for the Room = GPI (minus) Vacancy... you'll have to figure this out... you'll actually do the math as (Vacancy Rate %) x GPI (equals) Effective Potential Income = EPI Then find out how much you will actually pocket at the end of the day as operating income: Take EPI (minus) Operating expenses ... Utilities ... Maintenace ... HOA ... Marketing if you do this yourself (minus) Management Expenses ... 40% of EPI ... any other 'fees' they may charge if you manage it yourself. ... Extra tax help? (minus) Debt Service ... Mortgage payment ... include Insurances (property, PMI, etc) == Net Operating Income (NOI) Now NOI (minus) Taxes == Net Income Net Income (add back) Depreciation (add back) sometimes Mortgage Interest == After-tax Cash Flows There are two \"\"quickie\"\" numbers real estate investors can spout off. One is the NOI, the other is the Cap Rate. In order to answer \"\"How effective is THIS development?\"\" you'll have to run the numbers yourself and decide. The NOI will be based on any assumptions you choose to make for vacancy rates, actual revenue from hotel room bookings, etc. But it will show you how much you should bring in before taxes each year. If you divide the NOI by the asking price of your unit (and then multiply by 100), you'll get the \"\"Cap Rate\"\". This is a rough estimate of the rate of return you can expect for your unit... if you buy in. If you come back and say \"\"well I found out it has a XX% cap rate\"\", we won't really be qualified to help you out. Well established mega investment properties (think shopping centers, office buildings, etc.) can be as low as 3-5 cap rates, and as high as 10-12. The more risky the property, the higher your return should be. But if it's something you like, and the chance to make a 6% return feels right, then that's your choice. Or if you have something like a 15% cap rate... that's not necessarily outstanding given the level of risk (uncertain vacancies) involved in a hotel. Some other questions you should ask yourself include: How much competition is there in the area for short-term lodging? This could drive vacancies up or down... and rents up or down as well How 'liquid' will the property (room) be as an asset? If you can just break even on operating expense, then it might still make sense as an investment if you think that it might appreciate in value AND you would be able to sell the unit to someone else. How much experience does this property management company have... (a) in general, (b) running hotels, and (c) running these kinds of condo-hotel combination projects? I would be especially interested in what exactly you're getting in return for paying them 40% of every booking. Seasonality? This will play into Joe Taxpayer's question about Vacancy Rates. Your profile says you're from TX... which hints that you probably aren't looking at a condo on ski slopes or anything, but if you're looking at something that's a spring break-esque destination, then you might still have a great run of high o during March/April/May/June, but be nearly empty during October/November/December. I hope that helps. There is plenty of room to make a more \"\"exact\"\" model of what your cash flows might look like, but that will be based on assumptions and research you're probably not making at this time.\"",
"title": ""
},
{
"docid": "9f47d532ee2ff1cd4da42aa86e7f3042",
"text": "Carnegie Mellon University (CMU) and the University of Pittsburgh (Pitt) have different end of term dates but by less than a month. Both have summer sessions, but most students do not stay over the summer. You can rent over the summer, but prices fall by a lot. Thirty to forty thousand students leave over the summer between the two. Only ten to twenty thousand remain throughout the year and not all of those are in Oakland (the neighborhood in Pittsburgh where the universities are located). So many of the landlords in Oakland have the same problem. Your competitors will cut their rates to try to get some rent for the summer months. This also means that you have to handle eight, nine, and three month leases rather than year long and certainly not multiyear leases. You're right that you don't have to buy the latest appliances or the best finishes, but you still have to replace broken windows and doors. Also, the appliances and plumbing need to mostly work. The furnace needs to produce heat and distribute it. If there is mold or mildew, you will have to take care of it. You can't rely on the students doing so. So you have to thoroughly clean the premises between tenants. Students may leave over winter break. If there are problems, the pipes may freeze and burst, etc. Since they're not there, they won't let you know when things break. Students drop out during the term and move out. You probably won't be able to replace them when that happens. If you have three people in two bedrooms, two of them may be in a romantic relationship. Romantic relationships among twenty-year olds end frequently. Your three people drops back to two. Your recourse in that case is to evict the remaining tenants and sue for breach of contract. But if you do that, you may not replace the tenants until a new term starts. Better might be to sue the one who left and accept the lower rent from the other two. But you likely won't get the entire rent amount for the remainder of the lease. Suing an impoverished student is not the road to riches. Pittsburgh is expected to have a 6.1% increase in house prices which almost all of it is going to be pure profit. I don't know specifically about Pittsburgh, but in the national market, housing prices are about where they were in 2004. Prices were flat to increasing from 2004 to 2007 and then fell sharply from 2007 to 2009, were flat to decreasing from 2009 to 2012, and have increased the last few years. Price to rent ratios are as high now as in 2003 and higher than they were the twenty years before that. Maybe prices do increase. Or maybe we hit a new 20% decrease. I would not rely on this for profit. It's great if you get it, but unreliable. I wouldn't rely on estimates for middle class homes to apply to what are essentially slum apartments. A 6% average may be a 15% increase in one place and a 3% decrease in another. The nice homes with the new appliances and the fancy finishes may get the 15% increase. The rundown houses in a block where students party past 2 AM may get no increase. Both the city of Pittsburgh and the county of Allegheny charge property taxes. Schools and libraries charge separate taxes. The city provides a worksheet that estimates $2860 in taxes on a $125,000 property. It doesn't sound like you would be eligible for homestead or senior tax relief. Realtors should be able to tell you the current assessment and taxes on the properties that they are selling you. You should be able to call a local insurance agent to find out what kinds of insurance are available to landlords. There is also renter's insurance which is paid by the tenant. Some landlords require that tenants show proof of insurance before renting. Not sure how common that is in student housing.",
"title": ""
},
{
"docid": "de2f8020f2afe5a02fa537ebb9f85250",
"text": "\"To be completely honest, I think that a target of 10-15% is very high and if there were an easy way to attain it, everyone would do it. If you want to have such a high return, you'll always have the risk of losing the same amount of money. Option 1 I personally think that you can make the highest return if you invest in real estate, and actively manage your property(s). If you do this well with short term rental and/or Airbnb I think you can make healthy returns BUT it will cost a lot of time and effort which may diminish its appeal. Think about talking to your estate agent to find renters, or always ensuring your AirBnB place is in good nick so you get a high rating and keep getting good customers. If you're looking for \"\"passive\"\" income, I don't think this is a good choice. Also make sure you take note of karancan's point of costs. No matter what you plan for, your costs will always be higher than you think. Think about water damage, a tenant that breaks things/doesn't take care of stuff etc. Option 2 I think taking a loan is unnecessarily risky if you're in good financial shape (as it seems), unless you're gonna buy a house with a mortgage and live in it. Option 3 I think your best option is to buy bonds and shares. You can follow karancan's 100 minus your age rule, which seems very reasonable (personally I invest all my money in shares because that's how my father brought me up, but it's really a matter of taste. Both can be risky though bonds are usually safer). I think I should note that you cannot expect a return of 10% or more because, as everyone always says, if there were a way to guarantee it, everyone would do it. You say you don't have any idea how this works so I'd go to my bank and ask them. You probably have access to private banking so that should mean someone will be able to sit you down and talk you through. Also look at other banks that have better rates and/or pretend you're leaving your bank to negotiate a better deal. If I were you I'd invest in blue chips (big international companies listed on the main indeces (DAX, FTSE 100, Dow Jones)), or (passively managed) mutual funds/ETFs that track these indeces. Just remember to diversify by country and industry a bit. Note: i would not buy the vehicles/plans that my bank (no matter what they promise, and they promise a lot) suggest because if you do that then the bank always takes a cut off your money. TlDr, dont expect to make 10-15% on a passive investment and do what a lot of others do: shares and bonds. Also make sure you get a lot of peoples opinions :)\"",
"title": ""
},
{
"docid": "a66f38ae2cba550a0b1745a99f4782ac",
"text": "Approach property management companies. I work for one with hundreds of properties and we need plumbers all the time. On the business side it simplifies your marketing and repeat business. We get potted flowers and candy from vendors all the time. Or they bring in pizza for lunch once a quarter to keep the relationship up.",
"title": ""
},
{
"docid": "8ad92aef2db18e00c11a34e335a8493c",
"text": "Well for starters you want to rent it for more than the apartment costs you. Aside from mortgage you have insurance, and maintenance costs. If you are going to have a long term rental property you need to make a profit, or at a bare minimum break even. Personally I would not like the break even option because there are unexpected costs that turn break even into a severe loss. Basically the way I would calculate the minimum rent for an apartment I owned would be: (Payment + (taxes/12) + (other costs you provide) + (Expected annual maintenance costs)) * 100% + % of profit I want to make. This is a business arrangement. Unless you are recouping some of your losses in another manner then it is bad business to maintain a business relationship that is costing you money. The only thing that may be worth considering is what comparable rentals go for in your area. You may be forced to take a loss if the rental market in your area is depressed. But I suspect that right now your condo is renting at a steal of a rate. I would also suspect that the number you get from the above formula falls pretty close to what the going rate in your area is.",
"title": ""
},
{
"docid": "1e912dbff135225ac31d53bff72a6ff8",
"text": "\"I am surprised at the amount of work this contract wants done. I'd question if it's even legal given the high costs. I suspect it's only there to remind abusive tenants of responsibilities they already have in law for extraordinary abuse beyond ordinary wear-and-tear: they are already on the hook to repaint if they trash the paint (think: child writing on walls, happens a lot), and already need to fumigate (and a lot more) if they are a filth-type hoarder who brings in a serious infestation (happens a lot). The landlord can already go after these people for additional money beyond the deposit. But that's not you. So don't freak out about those clauses, until you talk to the landlord and see what he's really after. Almost certainly, he really wants a \"\"fit and ready to rent\"\" unit upon your departure, so he doesn't have to take the unit off the market for months fixing it. As long as that's done, there's no reasonable reason for further work -- a decent landlord wouldn't require that. Nor would a court, IMO. The trouble with living in a place for awhile is you become blind to its deficiencies. What's more, it's rather difficult to \"\"size up\"\" a unit as ready when it's still occupied by your stuff. A unit will look rather different when reduced to a bare room, without furniture and whatnot distracting you. Add to it a dose of vanity and it becomes hard to convince yourself of defects others will easily see. So, tread carefully here. If push comes to shove, first stop is whether it's even legal. Cities and states with heavy tenant populations tend to have much more detailed laws, and as a rule, they favor the tenant. Right off the bat, in most states the tenant is not responsible for ordinary wear-and-tear. In my opinion, 6 years of ordinary, exempt wear would justify a repaint, so that shouldn't be on the tenant at all. As for the fumigation, I'm not in Florida so I don't know the deal, maybe there's some special environmental issue there which somehow makes that reasonable, it sure wouldn't fly in CA. Again that assumes you're a reasonable prudent tenant, not a slob or hoarder. As for the pro carpet cleaning, that's par for the course in any of the tough rent control areas I've seen, so that's gotten a pass from the legislators. Though $600 seems awfully high. Other than that, you can argue the terms are \"\"unconscionable\"\" -- too much of a raw deal to even be fair. However, this will depend on the opinion of a judge. Hit or miss. I'm hoping your landlord will be happy to negotiate based on the good condition of the unit (which he may not know; landlords rarely visit tenant units unless they really need to.) You certainly should make the case that you make here; that the work is not really needed and it's prohibitive. Your best defense against unconscionable deals is don't sign them. Remember, you didn't know the guy when you initially signed... the now-objectionable language should have been a big red flag back then, saying this guy is epic evil, run screaming. (even if that turned out not to be true, you should't have hung around to find out.) You may have gotten lucky this time, but don't make that mistake again. Unless one of the above pans out, though... a deal is a deal. You gave your word. The powerful act here is to keep your word. Forgive me for getting ontological, but successful people say it creates success for them. And here's the thing. You have to read your contracts because you can't keep your word if you don't know what word you gave. It's a common mistake: thinking good business is trust, hope, faith, submission or giving your all. No. In business, you take the time to hammer out mutually beneficial (win-win) agreements, and you set them on paper to eliminate confusion, argument and stress in the future as memories fade and conditions change. That conflict resolution is how business partners remain friends, or at least professional colleagues.\"",
"title": ""
},
{
"docid": "4d2dca01d9cfa77aa73046505321e972",
"text": "\"I see two important things missing from your ongoing costs: maintenance and equipment. I also don't see the one-time costs of buying and moving. Maintenance involves doing some boring math like \"\"roofs go every 20 years or so and a new roof would cost $20k, so I need $1000 a year in the roof fund. Furnaces go every 20 years and cost $5k, so I need $250 a year in the furnace fund.\"\" etc etc. Use your own local numbers for both how long things last and how much they cost to replace. One rule of thumb is a percentage of the house (not house and land) price each year keeping in mind that while roof, furnace, carpet, stove, toilets etc all need to get replaced eventually, not everything does - the walls for example cost a lot to build but don't wear out - and not all at a 20 year pace. Some is more often, some is less often. I've heard 5% but think that's too high. Try 3% maybe? So if you paid $200,000 for a $100,000 house sitting on $100,000 of land, you put $3000 a year or about $250 a month into a repair fund. Then ignore it until something needs to be repaired. When that happens, fund the repair from the savings. If you're lucky, there will always be enough in there. If the house is kind of old and on its last legs, you might need to start with a 10 or 20k infusion into that repair fund. Equipment means a lawnmower and trimmer, a snow shovel, tools for fixing things (screwdriver, hammer, glue, pliers, that sort of thing.) Maybe tools for gardening or other hobbies that house-owners are likely to have. You might need to prune back some trees or bushes if nothing else. Eventually you get tools for your tools such as a doo-dad for sharpening your lawnmower. Well, lots of doo-dads for sharpening lots of things. One time expenses include moving, new curtains, appliances if they don't come with the house, possibly new furniture if you would otherwise have a lot of empty rooms, paint and painting equipment, and your housewarming party. There are also closing costs associated with buying a house, and you might need to give deposits for some of your utilities, or pay to have something (eg internet) installed. Be sure to research these since you have to pay them right when you have the least money, as you move in.\"",
"title": ""
},
{
"docid": "2f433e95de68c23d93cf4fae5295ecc2",
"text": "You will need to look at the 27.5 year depreciation table from the IRS. It tells you how you will be able to write off the first year. It depends on which month you had the unit ready to rent. Note that that it might be a different month from when you moved, or when the first tenant moved in. Your list is pretty good. You can also claim some travel expenses or mileage related to the unit. Also keep track of any other expenses such as switching the water bill to the new renter, or postage. If you use Turbo tax, not the least expensive version, it can be a big help to get started and to remember how much to depreciate each year.",
"title": ""
},
{
"docid": "5a1293a666b8079d199978def4663f03",
"text": "Getting the first year right for any rental property is key. It is even more complex when you rent a room, or rent via a service like AirBnB. Get professional tax advice. For you the IRS rules are covered in Tax Topic 415 Renting Residential and Vacation Property and IRS pub 527 Residential Rental Property There is a special rule if you use a dwelling unit as a personal residence and rent it for fewer than 15 days. In this case, do not report any of the rental income and do not deduct any expenses as rental expenses. If you reach that reporting threshold the IRS will now expect you to to have to report the income, and address the items such as depreciation. When you go to sell the house you will again have to address depreciation. All of this adds complexity to your tax situation. The best advice is to make sure that in a tax year you don't cross that threshold. When you have a house that is part personal residence, and part rental property some parts of the tax code become complex. You will have to divide all the expenses (mortgage, property tax, insurance) and split it between the two uses. You will also have to take that rental portion of the property and depreciation it. You will need to determine the value of the property before the split and then determine the value of the rental portion at the time of the split. From then on, you will follow the IRS regulations for depreciation of the rental portion until you either convert it back to non-rental or sell the property. When the property is sold the portion of the sales price will be associated with the rental property, and you will need to determine if the rental property is sold for a profit or a loss. You will also have to recapture the depreciation. It is possible that one portion of the property could show a loss, and the other part of the property a gain depending on house prices over the decades. You can expect that AirBnB will collect tax info and send it to the IRS As a US company, we’re required by US law to collect taxpayer information from hosts who appear to have US-sourced income. Virginia will piggyback onto the IRS rules. Local law must be researched because they may limit what type of rentals are allowed. Local law could be state, or county/city/town. Even zoning regulations could apply. Also check any documents from your Home Owners Association, they may address running a business or renting a property. You may need to adjust your insurance policy regarding having tenants. You may also want to look at insurance to protect you if a renter is injured.",
"title": ""
},
{
"docid": "2b3f26a15ae57922ab21582901c89a67",
"text": "You may have to ask each tenant to provide copies of bank statements or copied of deposited checks indicating what was paid, to whom and when. Using a spreadsheet is a good idea. It doesn't have to be complicated. If everyone co-operates then this exercise might not be too much of a hassle. But if anyone is combative or unwilling to produce these records, I would recommend reminding them that their other choice is to take each other to court where these records would be required anyway - or face eviction if the landlord doesn't get paid.",
"title": ""
},
{
"docid": "1e78a7689dc55077eb13c694a60c5654",
"text": "\"When you say \"\"apartment\"\" I take it you mean \"\"condo\"\", as you're talking about buying. Right or no? A condo is generally cheaper to buy than a house of equal size and coondition, but they you have to pay condo fees forever. So you're paying less up front but you have an ongoing expense. With a condo, the condo association normally does exterior maintenance, so it's not your problem. Find out exactly what's your responsibility and what's theirs, but you typically don't have to worry about maintaining the parking areas, you have less if any grass to mow, you don't have to deal with roof or outside walls, etc. Of course you're paying for all this through your condo fees. There are two advantages to getting a shorter term loan: Because you owe the money for less time, each percentage point of interest is less total cash. 1% time 15 years versus 1% times 30 years or whatever. Also, you can usually get a lower rate on a shorter term loan because there's less risk to the bank: they only have to worry about where interest rates might go for 15 years instead of 30 years. So even if you know that you will sell the house and pay off the loan in 10 years, you'll usually pay less with a 15 year loan than a 30 year loan because of the lower rate. The catch to a shorter-term loan is that the monthly payments are higher. If you can't afford the monthly payment, then any advantages are just hypothetical. Typically if you have less than a 20% down payment, you have to pay mortgage insurance. So if you can manage 20% down, do it, it saves you a bundle. Every extra dollar of down payment is that much less that you're paying in interest. You want to keep an emergency fund so I wouldn't put every spare dime I had into a down payment if I could avoid it, but you want the biggest down payment you can manage. (Well, one can debate whether its better to use spare cash to invest in the stock market or some other investment rather than paying down the mortgage. Whole different question.) \"\"I dont think its a good idea to make any principal payments as I would probably loose them when I would want to sell the house and pay off the mortgage\"\" I'm not sure what you're thinking there. Any extra principle payments that you make, you'll get back when you sell the house. I mean, suppose you buy a house for $100,000, over the time you own it you pay $30,000 in principle (between regular payments and any extra payments), and then you sell it for $120,000. So out of that $120,000 you'll have to pay off the $70,000 balance remaining on the loan, leaving $50,000 to pay other expenses and whatever is left goes in your pocket. Scenario 2, you buy the house for $100,000, pay $40,000 in principle, and sell for $120,000. So now you subtract $60,000 from the $120,000 leaving $60,000. You put in an extra $10,000, but you get it back when you sell. Whether you make or lose money on the house, whatever extra principle you put in, you'll get back at sale time in terms of less money that will have to go to pay the remaining principle on the mortgage.\"",
"title": ""
},
{
"docid": "4ca1b59e45e7dd98ad3c7f6ba8724c30",
"text": "They call you because that is their business rules. They want their money, so their system calls you starting on the 5th. Now you have to decide what you should do to stop this. The most obvious is to move the payment date to before the 5th. Yes that does put you at risk if the tenant is late. But since it is only one of the 4 properties you own, it shouldn't be that big of a risk.",
"title": ""
}
] |
fiqa
|
408261340dbd7bb14145fd4b69dccf5b
|
What types of careers consistently make the most money entering with no background or social skills?
|
[
{
"docid": "de739c66d71c43b7ed7b810b9d702bc1",
"text": "\"You may think it sucks to have learned a crap ton of category theory, which is seemingly useless outside of academia, but have you considered picking up a \"\"functional\"\" programming language, e.g. Haskell? How about Java or, more recently, Scala? I would bet that you would love Haskell. And then you can make a fortune working at Jane Street Capital, which uses OCaml, another functional programming language. Time to get your hands dirty with some programming experience. Minimal social skills required, as you had wished for, plus maximal compensation, plus you get to keep using math that was sort of close to your research area. Good luck.\"",
"title": ""
},
{
"docid": "bce48e2907397d3a7870a47c5e64fbfa",
"text": "\"It sounds like you're massively under-selling yourself. You presumably have a degree to get into the PhD program, and you now have work experience as well. But you're applying for jobs in fast food restaurants. You may struggle to get a job because they will expect you to only be there a few weeks until you find a \"\"proper\"\" job.\"",
"title": ""
}
] |
[
{
"docid": "d8215c6954706a094273f3a834a35d61",
"text": "I went through a very self damaging phase in my teens and wound up having to get a GED. I eventually followed it up with a punt for college and got a 2yr Assoc in Business. When I finally got my head out of my ass around my 30s, I realized how much I was stuck in the ~$25-30k bracket. I got an entry level job doing computer repair and started hitting the books & web. Soon, I was taking on web design and basic server admin duties. I got downsized and wound up looking again. Wound up in an entry level again doing first level support & inventory for a local ISP. I took an interest in networking and self studied for and got my Net+ and Sec+. I was acting as their local level network engineer but they weren't willing to change my pay or title so I began looking. I wound up getting picked up by a recruiter who helped me land a job that over doubled my pay and got me into a position where I'd get a lot of experience with high demand technologies and they'd sponsor my security clearance. I'm now closing in on the magical 6 digits but it's all about self motivation on constant education and learning. It should also be said that patience must be remembered. I knew I had dug a hole for myself and it wouldn't be overnight... I'm now in my early 40s so it's been a full decade of effort and just getting by.",
"title": ""
},
{
"docid": "706fc4c602a14d6d7a58d167df266569",
"text": "Florida. Piece work. Gutters. Oh and the industry is in such demand you can company hop all day all over the country. It's not much just climbing a ladder all day in the sun in 110 heat index 100% humidity hardly able to move after work. Oh that's also if you don't mind basically working minimum wage for the first year until you get good. Yeah no medical but no one seems to care if you're a junkie or alcoholic. Or call out every day. Or show up late because you can't be fired because there is no one to replace you.",
"title": ""
},
{
"docid": "66dd66bcab65f67540b450c111ddba7b",
"text": "Everything in life is a combination of luck and skill. Startups are no different. The risks are higher and most sensible people know and understand that. You know why we worship the successes? Because against all odds, those startups stood up to your salaried buddies who work for faceless large corporations and have tons of people and kicked their asses. At some point, they deserve it. You see startups as gambling, others see it as betting on yourself. Especially founding or joining an early stage startup. It's also taking on huge responsibility. In a mega-corp your failures and shortcomings will be covered and almost certainly won't tank the company. Your creativity probably won't flourish and their is an incentive to do just well enough. Why should you work your ass off for a company that you're not invested in other than a paycheck? Startups aren't for everyone. Hell, startups probably aren't for most people. But there are some people, those select few, who simply can't imagine not working for themselves, creating things, tinkering, trying to change the world. It's not even gambling to them, it's a way of life.",
"title": ""
},
{
"docid": "b8b8662496d3ff734aa0b957108abe71",
"text": "\"This quote has it almost backwards. Thomas J. Stanley's recent book (he's one of the duo who researched and wrote about The Millionaire Next Door) claims that the top occupation of millionaires is \"\"business owner / self-employed\"\" (28%). \"\"Real estate investor\"\" is lumped in with \"\"other\"\" (9%), and if the ordering is correct in the list, it's no more than 2% of the total. (source)\"",
"title": ""
},
{
"docid": "d5afca16ee485c9157d01ff29ff09333",
"text": "Hey OP, Don't listen to the negative comments, they don't know what they're talking about. I just got hired as an associate i-banker at the top investment bank in my country , which is roughly at the level of American bulge bracket banks. I'm an introvert. Yes, I like to drink and socialize, and part of the interview process involved cocktails and dinner with other candidates and several ibankers at all levels . But I-bankers are just geeks in suits. As long as you are comfortable in social settings , you don't need to be an alpha male or frat jock. I recommend meeting as many ibankers as possible. Have coffee chats and learn about the people that work in the industry. Good luck.",
"title": ""
},
{
"docid": "31cc1b414ce9879753cb345ab95d2af5",
"text": "\"Even the Wall Street jobs require skill, knowing how the stock market work, knowing how people work, etc. Even saying \"\"that luck is the main factor in the majority of cases of great wealth\"\" is still wrong. Really the only time luck is the real reason is non skill based gambling games (lottery, slots, etc), inheritance, and finding a wallet on the side of the road/street\"",
"title": ""
},
{
"docid": "f16eb5e1d56ec6965130ccdeaf8313ae",
"text": "70 isn't all that bad. And being a fund manager at a top fund is not the highest paying job per se. What's critical is to be a partner, or found your own fund, or have some ownership stake. There are sales people and lawyers who make more than PMs because they own/run the firm. And I would say it's impossible to do anything in finance anymore without a degree.",
"title": ""
},
{
"docid": "b80363c7a594c079da8718c39651df41",
"text": "It's all really personal preference and dependent on how your lifestyle/hobbies are. I have a friend who majored in Marketing and is now making 80k/yr out of college as he is also into web design. However, in my opinion, Finance would be the most exhilarating and Accounting would be the most stable.",
"title": ""
},
{
"docid": "d92328b094a5df3c5d586bf8a4e5f54f",
"text": "\"In finance What kind of amorphous bullshit is that? There are literally hundreds of different things that can varyingly be termed \"\"in finance\"\". If you want the traditional big bank job working as a spreadsheet monkey, very fucking difficult right now. Masters in finance doubling down on a BS: if it's from Princeton, great, if it's from Blue Mountain State, whatever. A CFA is getting common but it might help - it probably won't hurt at least. If you mean \"\"as a big shot trader for a hedge fund\"\" the answer is precisely impossible with only that on your resume. If you mean entry corporate finance, it's certainly possible (although you should not listen to anything I say in this regard as I've successfully avoided learning much about the subject thus far and have no intention of changing that, thus am as roughly as reliable on that as a wet paper towel).\"",
"title": ""
},
{
"docid": "a8b3c91cd485070546d4ccdae881febf",
"text": "Yes it is! You don't need the candidate waving a university diploma to find out in 5 minutes if they can read, write or understand. As someone who work with many interns, some of them from ivy league universities, I can confirm that many of them, 30%, have terrible attitudes, immaturity, spoiled, disorganized, and it all goes together with being not so smart, despite the degree. In the past, to be a teller in a bank, you did not have to finish high school. Just needed to be good with basic math.",
"title": ""
},
{
"docid": "9f3cd600693eeed79ee84d83fd546f80",
"text": "I work in marketing. Finance is probably the safest route with regards to opportunity and stability. Marketing can be expendable. Finance usually can't. That being said, it really depends on your personality type. Marketing people and Finance people are two different breeds. If you're the type that likes a very linear, matter-of-fact field, stick to finance where numbers don't lie. If your more of an extrovert who likes to think creatively in a field of a lot of unknowns, marketing may be the way to go.",
"title": ""
},
{
"docid": "370abae7f82206dca7db05458d1152bf",
"text": "Yeah, I've heard of actual people, like Jim-down-the-hall, making 1M due to those beautiful, god damned, golden handcuffs known as RSUs. This was at a valley tech giant though, so common, no. But in the realm of possibility without autism level natural abilities, yes.",
"title": ""
},
{
"docid": "cbfd1c4095aaa7fb7d8ce00026bad72a",
"text": "One overarching thing to keep in mind is that wherever you go with Finance if you work hard enough and climb the ladder, you can make decent money. I know CIO's, Market Stragesits and even CFO's, Portfolio Managers and CPA's that all live extremely comfortably, and all of them work outside of the IB industry, basically, IB isn't the end-all for making large sums of money. The main reason why it pays so much upfront is that of the hours you have to work if you look at their salary at an hourly rate, it's around 10-12 bucks an hour. Definitely think about the Double major thing though, or potentially just doing a minor. It would definitely look good on a resume, especially if it's something you also enjoy, but you've gotta keep that GPA high, and getting a 4.0 in CS is quite a challenge, to begin with. Pretty much any of the Series certifications can help you depending on where you want to go career-wise, obviously for some positions have certain series certifications won't be useful at all. It's also worth looking into the CFA program if you plan on doing Financial Analysis, but you'll need a sponsor for this, just like the Series certifications. Happy to help man, if you've got any other questions feel free to reach out. I'm in the same boat just trying to figure out what I want to do with my life to make decent money so I can take care of my friends and family, and live life to the fullest.",
"title": ""
},
{
"docid": "3074a94094ff46b32f84a6d94a0651eb",
"text": "Another way to do this is go to work for that company. Companies in this situation normally offer low pay, long hours, and stock options. Given a sufficient grant, it could be all very lucrative or worthless. Even if you have no electronics background you might be able to work in a different capacity. There were secretaries at various companies that became wealthy off of their stock options.",
"title": ""
},
{
"docid": "bab1f2c4e07d0694af1c5867122fa73b",
"text": "\"I used to run a telecommunications construction company and left to go back to school so that I could find a job in a \"\"white collar\"\" industry. Trade work is great when the money flows, but it's so cyclical that the downturns can rip your company/bank account apart. My sister that stayed in it is making 85k a year and I'm about to start a 45k a year job out of college. I guess I'll know in 5 years if I made the right choice, but I at least have a lot more job mobility than she does.\"",
"title": ""
}
] |
fiqa
|
d058c73c3bca6b02bf0c0609b88648f9
|
In Canada, can a limited corporation be used as an income tax shelter?
|
[
{
"docid": "c76a49480c763077c8874d844213b235",
"text": "\"(Disclaimer: I am not an accountant nor a tax pro, etc., etc.) Yes, a Canadian corporation can function as a partial income tax shelter. This is possible since a corporation can retain earnings (profits) indefinitely, and corporate income tax rates are generally less than personal income tax rates. Details: If you own and run your business through a corporation, you can choose to take income from your corporation in one of two ways: as salary, or as dividends. Salary constitutes an expense of the corporation, i.e. it gets deducted from revenue in calculating corporate taxable income. No corporate income tax is due on money paid out as salary. However, personal income taxes and other deductions (e.g. CPP) would apply to salary at regular rates, the same as for a regular employee. Dividends are paid by the corporation to shareholders out of after-tax profits. i.e. the corporation first pays income tax on taxable income for the fiscal year, and resulting net income could be used to pay dividends (or not). At the personal level, dividends are taxed less than salary to account for tax the corporation paid. The net effect of corporate + personal tax is about the same as for salary (leaving out deductions like CPP.) The key point: Dividends don't have to be paid out in the year the money was earned. The corporation can carry profits forward (retained earnings) as long as it wants and choose to issue dividends (or not) in later years. Given that, here's how would the partial income tax shelter works: At some point, for you to personally realize income from the corporation, you can have the corporation declare a dividend. You'll then have to pay personal income taxes on the income, at the dividend rates. But for as long as the money was invested inside the corporation, it was subject only to lesser corporate tax rates, not higher personal income tax rates. Hence the \"\"partial\"\" aspect of this kind of tax shelter. Or, if you're lucky enough to find a buyer for your corporation, you could qualify for the Lifetime Capital Gains Exemption on proceeds up to $750,000 when you sell a qualified small business corporation. This is the best exit strategy; unfortunately, not an easy one where the business has no valuable assets (e.g. a client base, or intellectual property.) * The major sticking-point: You need to have real business revenue! A regular employee (of another company) can't funnel his personally-earned employment income into a corporation just to take advantage of this mechanism. Sorry. :-/\"",
"title": ""
},
{
"docid": "a7f7384d35c387d2c34d790377bb93df",
"text": "\"This scheme doesn't work, because the combination of corporation tax, even the lower CCPC tax, plus the personal income tax doesn't give you a tax advantage, not on any realistic income I've ever worked it out on anyway. Prior to the 2014 tax year on lower incomes you could scrape a bit of an advantage but the 2013 budget changed the calculation for the tax credit on non-eligible dividends so there shouldn't be an advantage anymore. Moreover if you were to do it this way, by paying corporation tax instead of CPP you aren't eligible for CPP. If you sit with a calculator for long enough you may figure out a way of saving $200 or something small but it's a lot of paperwork for little if any benefit and you wouldn't get CPP. I understand the money multiplier effect described above, but the tax system is designed in a way that it makes more sense to take it as salary and put it in a tax deferred saving account, i.e. an RRSP - so there's no limit on the multiplier effect. Like I said, sit with a calculator - if you're earning a really large amount and are still under the small business limit it may make more sense to use a CCPC, but that is the case regardless of using it as a tax shelter because if you're earning a lot you're probably running a business of some size. The main benefit I think is that if you use a CCPC you can carry forward your losses, but you have to be aware of the definition of an \"\"allowable business investment loss\"\".\"",
"title": ""
},
{
"docid": "348ecf0fe173c503a0275e31aa820056",
"text": "Revenue Canada allows for some amount of tax deferral via several methods. The point is that none of them allow you to avoid tax, but by deferring from years when you have high income to years when you have lower income allows you to realize less total tax paid due to the marginal rate for personal income tax. The corporate dividend approach (as explained in another answer) is one way. TFSAs are another way, but as you point out, they have limits. Since you brought TFSAs into your question: About the best and easiest tax deferral option available in Canada is the RRSP. If you don't have a company pension, you can contribute something like 18% of your income. If you have a pension plan, you may still be able to contribute to an RRSP as well, but the maximum contribution amount will be lower. The contribution lowers your taxable income which can save you tax. Interest earned on the equity in your RRSP isn't taxed. Tax is only paid on money drawn from the plan because it is deemed income in that year. They are intended for retirement, but you're allowed to withdraw at any time, so if you have little or no income in a year, you can draw money from your RRSP. Tax is withheld, which you may or may not get back depending on your taxable income for that year. You can think of it as a way to level your income and lower your legitimate tax burden",
"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": "cdfa745942f12fffa09d6b579f5b9403",
"text": "That's the foundation of Limited Liability. There is a corporate veil that protects your personal assets from that of your business. The corporate veil can be pierced if you do certain stuff and thus your personal assets will get effected. This allows people to start companies and innovate more and take more risks knowing that they could not be personally liable if the business folds.",
"title": ""
},
{
"docid": "e8edffa2e7f767881481e995bd8dca08",
"text": "\"My late answer is: Be aware of the difference of being a contractor and being an employee. I am not sure of the laws in Canada, but in the United States lots of small companies like to hire people as \"\"contractors\"\" but make them work under rules that fall into employee. The business is trying to avoid paying payroll taxes, which is fine, but make sure you know your rights and responsibilities as a contractor vs employee. You can check with your state's Bureau of Labor and Industry in the US, but I am sure wherever you are from there is a government agency to do the same thing.\"",
"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": "7fd6d379a23acdd8369d63e87fb51d0e",
"text": "You're not physically present in the US, you're not a US citizen, you're not a green card holder, and you don't have a business that is registered in the US - US laws do not apply to you. You're not in any way under the US jurisdiction. Effectively connected income is income effectively connected to your business in the US. You're not in the US, so there's nothing to effectively connect your income to. Quote from the link: You usually are considered to be engaged in a U.S. trade or business when you perform personal services in the United States. You ask: If I form an LLC or C corp am I liable for this withholding tax? If you form a legal entity in a US jurisdiction - then that entity becomes subjected to that jurisdiction. If you're physically present in the US - then ECI may become an issue, and you also may become a resident based on the length of your stay.",
"title": ""
},
{
"docid": "b2c740c35ddf20f575c2c47f14a14738",
"text": "The only way you can save taxes is by starting a limited company, not paying yourself any salary, so you pay 20% corporation taxes, you can take I think £5000 a year dividends tax free, and leave the rest in the company account, and don't touch it until you make less money.",
"title": ""
},
{
"docid": "7455173c32b84deeccb016729e52c76d",
"text": "You don't have to wait. If you sell your shares now, your gain can be considered a capital gain for income tax purposes. Unlike in the United States, Canada does not distinguish between short-term vs. long-term gains where you'd pay different rates on each type of gain. Whether you buy and sell a stock within minutes or buy and sell over years, any gain you make on a stock can generally be considered a capital gain. I said generally because there is an exception: If you are deemed by CRA to be trading professionally -- that is, if you make a living buying and selling stocks frequently -- then you could be considered doing day trading as a business and have your gains instead taxed as regular income (but you'd also be able to claim additional deductions.) Anyway, as long as your primary source of income isn't from trading, this isn't likely to be a problem. Here are some good articles on these subjects:",
"title": ""
},
{
"docid": "ce251ce6d31823ac7124eae816392f7c",
"text": "Do you have any insight on average *effective* rates paid by SE owners? As a counterpoint to your (very valid) links, filing as S-corp allows for taxes on distributions to be exempt from payroll tax and taxed at much lower rates. Also, being SE allows for various deductions not possible for wage earners. There's probably other examples not immediately coming to mind. Also, SE taxes equal taxes otherwise paid by employer + employee. It's just that those employer taxes don't appear on the employee's paystub so not everyone realizes this.",
"title": ""
},
{
"docid": "e48543d05d46d98fd78d2a185a230f59",
"text": "The only possibility that I've seen in the past is if some of the income is for deferred services which are to be delivered in the following tax year, a portion of the income can be deferred. Also, agree that you should be an S-corp and talk to another CPA if yours hasn't told you that yet.",
"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": "ae5066c9a5bc07ef196332219cdba89b",
"text": "\"I'm no lawyer and no expert, so take my remarks as entertainment only. Also see this question. If you have a U.S. SSN which is eligible for work, they may be able to pay you on 1099 basis with your SSN as a sole proprietor, unless they have some personal reason for avoiding that. So perhaps try asking about that specifically. HR policies can be weird and tricky, maybe a nudge in the right direction will help. Not What You Asked: regardless, I might recommend you register as an LLC and get an EIN (sort of SSN for companies) for a variety of reasons. It's called a \"\"limited liability\"\" company for a reason. You may also have an easier time reaping various business-related rewards, like writing off expenses. If you do so, consider a state with no income tax like Wyoming. (Or, for convenience sake, WA if you live in BC, or maybe NH if you live in Ontario.. etc.)\"",
"title": ""
},
{
"docid": "bc5e4cb4631274d24c6ed6886da7d9c4",
"text": "\"There are countries out there that are known as tax havens, where they offer companies low or no taxes on earned revenue. I haven't looked into this in over a decade, but recall that countries like the Cayman Islands, Switzerland, Ireland, and Nauru, to name a few fit that tag. But like bstpierre stated, there's a reason why the IBM's of the world can pull that off easier then us mere mortals. They have the financial clout to make sure they have accountants that dot every i, cross every t, and close every loophole that would give an \"\"in\"\" to the folks at the IRS, CRA, Inland Revenue, or who have you.\"",
"title": ""
},
{
"docid": "8c53d1b2149e29a06ade529876aca990",
"text": "An LLC is a very flexible company when it comes to taxation. You have three basic tax options: There are other good reasons to create an LLC (mainly to protect your personal assets) so even if you decide that you don't want to deal with the complications of an S-Corp LLC, you should still consider creating a sole proprietorship LLC.",
"title": ""
},
{
"docid": "103006facd061e7a355e43dcd43e9eaf",
"text": "You would report the overall income on your T1 general income tax return, and use form T2125 to report income and expenses for your business. Form T2125 is like a mini income-statement where you report your gross revenue and subtract off expenses. Being able to claim legitimate expenses as a deduction is an important tax benefit for businesses big and small. In terms of your second question, you generally need to register for a business number at least once you cross the threshold for GST / HST. If you earn $30,000/year (or spread over four consecutive quarters) then charging GST / HST is mandatory; see GST/HST Mandatory registration. There are other conditions as well, but the threshold is the principal one. You can also register voluntarily for GST / HST even if you're below that threshold; see GST/HST Voluntary registration. The advantage of registering voluntarily is that you can claim input tax credits (ITC) on any GST that your business pays, and remit only the difference. That saves your business money, especially if you have a lot of expenses early on. Finally, in terms of Ontario specifically (saw that on your profile), you might want to check out Ontario Sole Proprietorship. There are specific cases in which you need to register a business: e.g. specific types of businesses, or if you plan on doing business under a name other than your own. Finally, you may want to consider whether incorporating might be better for you. Here's an interesting article that compares Sole Proprietorship Versus Incorporation. Here's another article, Choosing a business structure, from the feds.",
"title": ""
},
{
"docid": "af84ae777b49e1156576a487ed32528f",
"text": "Taxing citizens on global income caused by tax inversion, not the cause of tax inversion. If yourwebsite.com makes $1mil, and you pay yourwebsite.ca $1m for rights to the name, that's inversion. Your company, and you, as the owner, have $1m income in Canada. All of which came from US revenue. I'm not saying the tax system is great or anything. There just seems to be a miss understanding.",
"title": ""
}
] |
fiqa
|
603e9bded7c73db3c690c70edd611968
|
When does a pricing error become false advertising?
|
[
{
"docid": "6f74e06785dd589d7d2e3505795b36bf",
"text": "\"It's definitely annoying, but it's not necessarily false advertising. There is no rule or law that says they have to fix a pricing error at all, let alone within a certain period of time. Unfortunately they have no obligation to do business with you unless they take (and keep) your money. If they canceled the order and returned your money you have no binding agreement with them. On top of that, in the US... 'misleading advertising' usually refers to \"\"Any advertising or promotion that misrepresents the nature, characteristics, qualities or geographic origin of goods, services or commercial activities\"\" (Lanham Act, 15 U.S.C.A. § 1125(a)). The main criteria that they evaluate before taking legal action is whether or not someone has suffered harm or loss due to the reliance on the bad information. But you're in Europe. The EU ideas behind misleading advertising tend to focus a lot more on comparing one product to someone else's and making subjective claims or false promises. Pricing does come up, but still, you need to have an ability to prove that you suffered harm or a loss from the business' actions. Even if you were able to prove that, to force the business to change its price catalog, you would need to go through legal proceedings, demonstrate the harm that you've sustained, and then have a judge decide in your favor and order the supplier to comply. My guess is that it's just not worth it for you, but you haven't specified if this is just an annoying shoe-shopping experience or if you are regularly experiencing bait-and-switch tactics from a supplier that is a crucial part of a business operation. If it's the former, just like a physical shop reserves the right to kick you out if you're not behaving, (but usually doesn't because they'd like to keep you as a customer), an online shop can update its prices whenever they like. They can change their prices too, and cancel orders. If it's the latter, then start putting together some documentation on how many times this has happened and how it has damaged your business. But before you get on the warpath I would recommend you look for another place to buy whatever you have in mind, or else try a pound of sugar in your approach to this supplier... My own business experience has shown that can go a lot way in figuring out a mutually beneficial resolution. If you want to see a bit more... Here is the EU Justice Commission's website on false advertising, Here is a PDF leaflet from the UK Office of Fair Trading that spells out what is explicitly not allowed from a business by way of advertising & business practices.\"",
"title": ""
}
] |
[
{
"docid": "ed704cf268161edfe870f77e2aa24052",
"text": ">I don’t really like when apps show me ads pasted all over their interface, so this option was instantly crossed out. I did a double-take when the author said the above. It's an article about using empirical evidence to set price and he discards an option based on personal preference.",
"title": ""
},
{
"docid": "e513a42cc62175045e50d61a634a5d83",
"text": "If an offered price is below what people are willing to sell for, it is simply ignored. (What happens if I offer to buy lots of cars as long as I only have to pay $2 each? Same thing.)",
"title": ""
},
{
"docid": "817577b7bcd07bbd91bb72275efb94be",
"text": "Dispute the charge. Receiving the wrong product is grounds for dispute.",
"title": ""
},
{
"docid": "24f8ef68a02f2c845e9305c18857f6f0",
"text": "There are a few scenarios I see possible: 1. Risk parameters in the algo were set very conservatively. Putting quotes out and canceling them is very common. 2. It was looking to exploit situations where someone rips through the book with a market order. 3. It was reacting too slowly to signals, and chasing opportunities that had already passed. Other comments: What do you believe front running is? Your version differs from the textbook definition. Quote taxes are more effective than minimum order durations. I wrote about how that works in a previous post in this thread.",
"title": ""
},
{
"docid": "1c7c83c86016cc0041271214675e9c13",
"text": "We actually have [a thread](http://www.reddit.com/r/GroceryStores/comments/10sldg/im_so_tired_of_this_grocery_shrinkray_bullshit/) about that going on right now in r/grocerystores. It is a fine line to walk. No one wants to visibly raise prices. But they are still showing price per pound/ounce on the tag (right? Every store I have been in shows that). The consumer is partly to blame for allowing those shenanigans.",
"title": ""
},
{
"docid": "26064c80f92e50da1d5c5af2ca98d9d9",
"text": "When I ran a gas station, our price was largely set by our neighbors-- the other gas stations in the area. We couldn't go below the current cost of replacement gas, but other than that we wanted to be at .05 over the average. (We got away with charging more because we were the last station on a major road.) Everybody else did the same thing. Also, we only set prices once a day, early in the morning before the commuter rush. Changing prices while somebody is pumping gas Was Not Done, for fairly obvious reasons. So, you'd get these ripples of price-changing, as one station changed its price, and then all its neighbors would react to that the next day, and then THEIR neighbors would change the day after that, and so on.",
"title": ""
},
{
"docid": "f48a4f2f79c6876582055e16e3166128",
"text": "\"Ah to be clear, \"\"bad customer\"\" here means someone that ends up costing the company more money than they are worth to you. The article explictly says that a lot of the problems that Bob had were nothing to do with their product.\"",
"title": ""
},
{
"docid": "c30bf41ef74f9c650df65cedcfa60092",
"text": "As I understand it, the correct price is any point between the minimum the seller is willing to accept and the maximum the buyer is willing to pay. These values are influenced by a number of factors, including market conditions, cost of production and immediate need. There's also a sense of fairness and expectation that influences these numbers. People don't want to pay a much higher price or accept a much lower price than they think the other party *should* agree to. For example, in the event of a sudden actual or anticipated shortage in some commodity consumer good, say... gasoline, it would make sense for sellers to raise the price significantly. In the short term, consumers of gasoline are very price-insensitive and most will pay more than double the usual price to obtain it. This behavior is commonly seen as unfair on the part of the seller - to the point that certain variations of it are illegal in some jurisdictions. Economists would describe it as rational. Oddly, people don't seem to be as upset about buyers offering low prices in the event of a sudden increase in highly motivated sellers. When people do tend to get upset is if the buyers have a profit motive; they know the price decrease is temporary and are willing to buy and hold the asset to make a profit later. Even so, it seems to me that it's much rarer for such behavior to be illegal. The underlying objection, as far as I can tell is to what is perceived as greed.",
"title": ""
},
{
"docid": "9deab02a93f8610d92c4ad9185f964b0",
"text": "You are confusing manufacturing cost and listed price. They are being sold for less than listed price. There is no way they are being sold for 1/3rd of manufacturing cost. They could be sold for less than manufacturing cost but future support will be factored into that sale so they would still be a loss leader.",
"title": ""
},
{
"docid": "137a3e87be092013b7b45a65eb330fc6",
"text": "The sales manager and/or finance manager applied a rebate that did not apply. It's their fault. They have internal accounts to handle these situations as they do come up from time to time. The deal is done. They have no legal ground.",
"title": ""
},
{
"docid": "6232478af3a94f2588dfd3e1e8f816da",
"text": "This has happened to me several times while trying to travel. See a flight listed for one price, go through the process and it ends up being 50-100 more. Not sure which airlines just in general. I dont see how 2 seperate sites can have the same price problem. and what changes in the 5-10 minutes it takes someone to enter their info? do gas and costs go up that much in 10 minutes? Just like extra ticket fees and everything....i just wish companies would start putting the FULL price up front. extra fees and all.",
"title": ""
},
{
"docid": "02bb688428d59b63300e88a3256cc5c7",
"text": "Just the opposite, if you can, offer all prices! Make a premium product, and regular one, a lite version, and so on. Capture all price points. The premium version's price gives you anchoring so your less expensive product will appear cheap even if it isn't. This also gives users an upgrade path so the way to full price is baby steps.",
"title": ""
},
{
"docid": "a31a26bc40d98a655b0e3bc57f2a9c89",
"text": "\"However, it also anti-correlates: advertising these features of their product lets them charge more, and the higher price means they can afford better inputs. And customers who are willing to spend extra money on \"\"natural\"\" are also more willing to spend extra money on taste.\"",
"title": ""
},
{
"docid": "db3816bf403891ee9fd6cf579b261951",
"text": "What you found is that when your were on website X on day y when you clicked on the link they told you to buy 7 stocks and you performed an experiment, but the values went down. Somebody else on website A on day B saw a lightly different list, they may have been flat. But if you were on website W on day D that list hit the jackpot. Which of the three decided that the people running the ad knew what they were talking about? They could have tailored the list based on the nature of the website. Sports and recreation ones on ESPN, high tech on a computer focus site. They could have varied the size of the lit, they could have varied the way they described their analysis. They could have even varied the name of the expert to make it sound familiar or authoritative. What you found was a marketing plan. It may have been a scam, or it may have been just a way to try and convince you they know what they were doing. If you clicked on the wrong list, they probably lost you as a potential customer, unless you can convince yourself that they were close, and deserve a second look....",
"title": ""
},
{
"docid": "99a1c389d5216cd5cdf955b049a2fac6",
"text": "A lower Price/Book Value means company is undervalued. It could also mean something horribly wrong. While it may look like a good deal, remember;",
"title": ""
}
] |
fiqa
|
1b093e5da6e3ba9540866d230eae6347
|
Where can I find a Third Party Administrator for a self-directed solo 401K?
|
[
{
"docid": "c86927a383eb005d90ee36730dcda654",
"text": "You setup a self-directed solo 401k by paying a one time fee for a company to setup a trust, name you the sole trustee, and file it with the IRS. None of these companies offer TPA because it opens them up to profit leaching liability. After you have your trust setup, you can open a brokerage account or several with any of the big names you want (Vanguard, Fidelity, Ameritrade, etc), or just use the money to flip houses, do P2P lending, whatever, the world is your investment oyster. If the company has recurring fees you need to ask what is going on because if they aren't offering TPA services, then what the heck could they be charging you for? I did see one company, I think it was IRA Financial Group, that had the option of having a CPA do TPA for you for a recurring fee, but I would pass on that. The IRS administration requirements are typically just the 5500-EZ that you have to file as a hard copy by July 31 if your investments are worth more than $250k, on December 31. Yes, you have to get the actual form from the IRS, write on it with a pen and mail it to them every year, barbaric. You can either have your accountant do it or do it yourself. If you're below $250k just google solo 401k rule change two or three times a year and don't try to launder money. If anything, the rules will loosen with time, I don't imagine the Republican Congress cracking down on small business owners any time soon.",
"title": ""
},
{
"docid": "e0f8c5f28061ad8e75404c5fcc51dbaf",
"text": "Fidelity Investments offers Solo 401(k) plans without any management fees. The plan administrator is typically the employer itself (so, your business, or you as the principal manager). You (as the individual employee) are the participant.",
"title": ""
}
] |
[
{
"docid": "27190f396673fa1761500386491ffe9a",
"text": "My former accountant, used to provide this service as part of him doing my taxes. During the off season, he would provide a planning session and he would review strategies that I might look into. Since he did not make any money off of providing investments, he was about as unbiased as one could be. However, something like that might not be enough for you guys. You could go with someone online, Scottrade is going into the business of providing advice, as well as Charles Schwab or Fidelity, but you might need someone more personal. In that case, I would use my network. Talk to people, ask who they use, like, and respect. I would say it is very easy to find mediocre investment advisers, the good ones are hard. I would look for one that teaches. It is very easy to tell someone what to do, much harder to teach them what is the right thing. One thing that is easy about your situation: Planning to buy a home. Put money for a down payment in a high interest savings account. What I mean by high interest, is they still pay almost nothing. You can't really make a mistake. If you find one with .5% instead of .85%, what is the real difference after 5 years? About $180?",
"title": ""
},
{
"docid": "1a179f846cd675420143bd596b5d26a9",
"text": "Can't tell you where to go for a good policy, but I can tell you that most brokers make a hefty commission out of your payments for at least a year before you even start funding the tax sheltered investment account that you're trying to buy under the umbrella of life insurance. You'll have to do a lot of homework to hunt down a reputable discount broker or a direct policy purchase from the insurance company. Life insurance requires insurable need. The description is vague enough, that you can probably still get the account despite being a single male with no apparent heirs to benefit, but it raises the question of why you are buying the insurance. Whole life policies require you to maintain a certain ratio of investment to premium payment and you will likely never be able access all of the money in the account for your own personal usage. Compare several policies from several brokers and companies. Read all the critical sources you can about the pitfalls and dangers of commissions, fees and taxes eating the benefits of your account. Verify that the insurance company you buy the policy from is financially stable after the market crash. You are paying a commission to pool your money into their investment fund, and if your insurer goes under, you'll have to get a portion of your money (possibly only the principle) back from the state insurance commissioner. Some companies sold pretty generous policies during the bubble and have cut their offerings way down without fixing their marketing literature and rosy promises. Finally, let us know what you find. It never hurts to see hard numbers and to run multiple eyes over the legalese in these contracts.",
"title": ""
},
{
"docid": "fb7429f700bf206a2c989ac07d7b563b",
"text": "From the employer side there are A LOT of legal duties attached to sponsoring a 401(k). If you are asking this question I would not suggest attempting to meet all of the regulations related to handling employee money internally. There are certain annual filings, periodic notices, accounting etc related to these kinds of plans, and the fines for non-compliance are extraordinary. You would be far better off seeking a separate vendor, in my opinion.",
"title": ""
},
{
"docid": "8eabb4ee0cac8a619ce1562d3648991d",
"text": "\"Your 401K (and IRA) is a legally distinct entity from yourself. In fact, it is a \"\"trust,\"\" and your Administrator is a \"\"trustee,\"\" while you are both creator and benefactor. This fact, and the 10% early withdrawal penalty, makes it immune from most judgments. The IRS can \"\"levy\"\" your 401K or IRA for back taxes, but must waive the 10% penalty (under the 1997 Tax Reform law). That gives them the power to do what most others can't. A \"\"tricky\"\" banker may persuade you to take money out of your 401K to pay the bank. If you do, s/he has won. But s/he can't go after your 401k.\"",
"title": ""
},
{
"docid": "4217f4b58b17bf01e6deb8e2a43bf894",
"text": "The Employee Benefits Security Administration within the US Department of Labor is tasked with keeping track of pension and 401K programs. The even have a website to search for abandoned plans: it helps participants and others find out whether a particular plan is in the process of being, or has been, terminated and the name of the Qualified Termination Administrator (QTA) responsible for the termination. The Employee Benefits Security Administration discuss all types of details regarding retirement programs. This document What You Should Know About Your Retirement Plan has a lot of details including this: If your former employer has gone out of business, arrangements should have been made so a plan official remains responsible for the payment of benefits and other plan business. If you are entitled to benefits and are unable to contact the plan administrator, contact EBSA electronically at askebsa.dol.gov or by calling toll free at 1-866-444-3272. There are also EBSA offices spread thought the United States",
"title": ""
},
{
"docid": "7656ef45cba6e4625dec01393a52132b",
"text": "My employer matches 1 to 1 up to 6% of pay. They also toss in 3, 4 or 5 percent of your annual salary depending on your age and years of service. The self-directed brokerage account option costs $20 per quarter. That account only allows buying and selling of stock, no short sales and no options. The commissions are $12.99 per trade, plus $0.01 per share over 1000 shares. I feel that's a little high for what I'm getting. I'm considering 401k loans to invest more profitably outside of the 401k, specifically using options. Contrary to what others have said, I feel that limited options trading (the sale cash secured puts and spreads) can be much safer than buying and selling of stock. I have inquired about options trading in this account, since the trustee's system shows options right on the menus, but they are all disabled. I was told that the employer decided against enabling options trading due to the perceived risks.",
"title": ""
},
{
"docid": "07c75adfe6ef2da84f3e05878e67e85f",
"text": "My employer matches 6% of my salary, dollar for dollar. So you have a great benefit. The self-directed side has no fees but $10 trades. No option trading. Yours basically allows you to invest your own funds, but not the match. It's a restriction, agreed, but a good plan.",
"title": ""
},
{
"docid": "447c3f654c405b11900b5814b150328a",
"text": "Alright, team! I found answers to part 1) and part 2) that I've quote below, but still need help with 3). The facts in the article below seem to point to the ability for the LLC to contribute profit sharing of up to 25% of the wages it paid SE tax on. What part of the SE tax is that? I assume the spirit of the law is to only allow the 25% on the taxable portion of the income, but given that I would have crossed the SS portion of SE tax, I am not 100%. (From http://www.sensefinancial.com/services/solo401k/solo-401k-contribution/) Sole Proprietorship Employee Deferral The owner of a sole proprietorship who is under the age of 50 may make employee deferral contributions of as much as $17,500 to a Solo 401(k) plan for 2013 (Those 50 and older can tack on a $5,500 annual catch-up contribution, bringing their annual deferral contribution to as much as $23,000). Solo 401k contribution deadline rules dictate that plan participant must formally elect to make an employee deferral contribution by Dec. 31. However, the actual contribution can be made up until the tax-filing deadline. Pretax and/or after-tax (Roth) funds can be used to make employee deferral contributions. Profit Sharing Contribution A sole proprietorship may make annual profit-sharing contributions to a Solo 401(k) plan on behalf of the business owner and spouse. Internal Revenue Code Section 401(a)(3) states that employer contributions are limited to 25 percent of the business entity’s income subject to self-employment tax. Schedule C sole-proprietors must base their maximum contribution on earned income, an additional calculation that lowers their maximum contribution to 20 percent of earned income. IRS Publication 560 contains a step-by-step worksheet for this calculation. In general, compensation can be defined as your net earnings from self-employment activity. This definition takes into account the following eligible tax deductions: (1) the deduction for half of self-employment tax and (2) the deduction for contributions on your behalf to the Solo 401(k) plan. A business entity’s Solo 401(k) contributions for profit sharing component must be made by its tax-filing deadline. Single Member LLC Employee Deferral The owner of a single member LLC who is under the age of 50 may make employee deferral contributions of as much as $17,500 to a Solo 401(k) plan for 2013 (Those 50 and older can tack on a $5,500 annual catch-up contribution, bringing their annual deferral contribution to as much as $23,000). Solo 401k contribution deadline rules dictate that plan participant must formally elect to make an employee deferral contribution by Dec. 31. However, the actual contribution can be made up until the tax-filing deadline. Pretax and/or after-tax (Roth) funds can be used to make employee deferral contributions. Profit Sharing Contribution A single member LLC business may make annual profit-sharing contributions to a Solo 401(k) plan on behalf of the business owner and spouse. Internal Revenue Code Section 401(a)(3) states that employer contributions are limited to 25 percent of the business entity’s income subject to self-employment tax. Schedule C sole-proprietors must base their maximum contribution on earned income, an additional calculation that lowers their maximum contribution to 20 percent of earned income. IRS Publication 560 contains a step-by-step worksheet for this calculation. In general, compensation can be defined as your net earnings from self-employment activity. This definition takes into account the following eligible tax deductions: (i) the deduction for half of self-employment tax and (ii) the deduction for contributions on your behalf to the Solo 401(k). A single member LLC’s Solo 401(k) contributions for profit sharing component must be made by its tax-filing deadline.",
"title": ""
},
{
"docid": "8e33d3966285f67dd5f2d0f6ae221bcf",
"text": "401(k) plans, 403(b) plans, IRAs etc all require more paperwork than a non-tax-advantaged investment. As a result, most such plans (with Vanguard as well as with other management companies) offer only a small set of investment options, and so it costs the plan sponsor (you wearing your Employer hat) money if you want to add more investment options for your Solo 401(k) plan). Note that with employer-sponsored retirement plans, investments in each mutual fund might be coming in small amounts from various employees, much less than the usual minimum investment in each fund, and possibly less than the minimum per-investment transaction requirement (often $50) of the fund group. Taking care of all that is expensive, and it is reasonable that Vanguard wants to charge you (the Employer) a fee for the extra work it is doing for you. When I was young and IRAs had just been invented (and the annual contribution limit was $2000 for IRAs), I remember being charged a $20 annual fee per Vanguard fund that I wanted to invest in within my IRA but this fee was waived once my total IRA assets with Vanguard had increased above $10K.",
"title": ""
},
{
"docid": "0eb36cb23e54bb663852701290267fcd",
"text": "My two-cents, read your plan document or Summary Plan Description. The availability of in-service withdrawals will vary by document. Moreover, many plans, especially those compliant with 404(c) of ERISA will allow for individual brokerage accounts. This is common for smaller plans. If so, you can request to direct your own investments in your own account. You will likely have to pay any associated fees. Resources: work as actuary at a TPA firm",
"title": ""
},
{
"docid": "f36ca2639d4852d8262d20e589d6ad31",
"text": "You can open a self-employed 401k, here's an example. You can deposit up to 50K (including the personal cap and the profit sharing/matching portion).",
"title": ""
},
{
"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": "b36177c86a000963a421bfef2ab82829",
"text": "I use the self-directed option for the 457b plan at my job, which basically allows me to invest in any mutual fund or ETF. We get Schwab as a broker, so the commissions are reasonable. Personally, I think it's great, because some of the funds offered by the core plan are limited. Generally, the trustees of your plan are going to limit your investment options, as participants generally make poor investment choices (even within the limited options available in a 401k) and may sue the employer after losing their savings. If I was a decision-maker in this area, there is no way I would ever sign off to allowing employees to mess around with options.",
"title": ""
},
{
"docid": "1fa75ab8a23b7d77ea05b2bba4111506",
"text": "\"You want a fee-only advisor. He charges like an architect or plumber: by the hour or some other \"\"flat fee\"\". That is his only compensation. He is not paid on commission at all. He is not affiliated with any financial services company of any kind. His office is Starbucks. He does not have a well lit office like the commission broker down the street. He does not want you to hand him your money - it stays in the brokerage account of your choice (within reason - some brokerage accounts are terrible and he'll tell you to get out of those). He never asks for the password to your brokerage account. Edit: The UK recently outlawed commission brokers. These guys were competitive \"\"sales types\"\" who thrive on commissions, and probably went into other sales jobs. So right now, everyone is clamoring for the few proper financial advisors available. High demand is making them expensive. It may not be cost-effective to hire an advisor; you may need to learn it yourself. It's not that hard. Ever hear of a plumber who works totally for free, and makes his money selling you wildly overpriced pipe? That's what regular \"\"financial advisors\"\" are. They sell products that are deliberately made unnecessarily complex. The purpose is first, to conceal sales commissions and high internal fees; and second to confuse you, so the financial world feels so daunting that you feel like you need their help just to navigate it. They're trying to fry your brain so you'l just give up and trust them. Products like whole life and variable annuities are only the poster children for how awful all of their financial products are. These products exist to fleece the consumer without quite breaking the law. Of course, everyone goes to see them because they have well lit offices in every town, and they're free and easy to deal with. Don't feel like you need to know everything about finance to invest. You don't need to understand every complex financial product that the brokerage houses bave dreamed up: they are designed to conceal and confuse, as I discuss above, and you don't want them. The core of it is fairly simple, and that's all you really need to know. Look at any smaller university and how they manage their endowments. If whole life, annuities and those complex financial \"\"products\"\" actually worked, university endowments would be full of them. But they're not! Endowments are generally made of investments you can understand. Partly because university boards are made of investment bankers who invented those products, and know what a ripoff they are. Some people refuse to learn anything. They are done with college and refuse to learn anything more. I hope that's not you. Because you should learn the workings of everything you're investing in. If you don't understand it, don't buy itl And a fee-only financial advisor won't ask you to. 1000 well-heeled, well-advised university endowments seek the most successful products on the market... And end up choosing products you can understand. That's good news for you.\"",
"title": ""
},
{
"docid": "bb7e57438c6ed8ba47bd2bd2a7ae324a",
"text": "I use healthequity. It's just the one I was given, but they actually have really good fund options. There's a .396% yearly administration fee to access their low-cost funds, but the fund fees are really low (.02% for VIIIX, .03% for VBMPX)",
"title": ""
}
] |
fiqa
|
5d1289ef7cd288cda5c8031eda11c67c
|
Do Americans really use checks that often?
|
[
{
"docid": "ef31f1e5df5e9daf7d1a3ba4e3c6ab4a",
"text": "When you start at a new job here in the U.S., the default means of payment is usually a paper check. Most folks will quickly set up direct deposit so that their employer deposits their paycheck directly into their personal bank account - the incentive to do so is that you receive your funds faster than if you deposit a paper check. Even if you set up direct deposit on your first day on the job, you may still receive your first paycheck as a paper check simply because the wheels of payroll processing turn slowly at some (large) companies. A counter example is a self-employed contractor - perhaps a carpenter or house painter. These folks are paid by their customers, homeowners and such. Many larger, well established contracters now accept credit card payments from customers, but smaller independents may be reluctant to set up a credit card merchant account to accept payment by card because of all the fees that are associated with accepting credit card payments. 3% transaction fees and monthly service fees can be scary to any businessman who already has very thin profit margins. In such cases, these contractors prefer to be paid by check or in cash for the simple reason that there are no fees deducted from cash payments. There are a few folks here who don't trust direct deposit, or more specifically, don't trust their employer to perform the deposit correctly and on time. Some feel uncomfortable giving their bank info to their employer, fearing someone at the company could steal money from their account. In my experience, the folks who prefer a paper paycheck are often the same folks who rush to the bank on payday to redeem their paychecks for cash. They may have a bank account (helps with check cashing) but they prefer to carry cash. I operate in a manner similar to you - I use a debit card or credit card (I only have one of each) for nearly all transactions in daily life, I use electronic payments through my bank to pay my regular bills and mortgage, and I receive my paycheck by direct deposit. There have been periods where I haven't written or received paper checks for so long that I have to hunt for where I put my checkbook! Even though I use a debit card for most store purchases, the bank account behind that debit card is actually a checking account according to the bank. Again, the system defaults to paper checks and you have the option of going electronic as well. Before we judge anyone who doesn't use direct deposit or who prefers to be paid in cold hard cash, consider that direct deposit is a luxury of stability. Steady job, home, etc. Direct deposit doesn't make sense for a contractor or day laborer who expect to work for a different person each day or week. I don't think this is all that unique to the US. There are people in every city and country who don't have long-term employment with a single employer and therefore prefer cash or paper check over electronic payments. I'd be willing to bet that this applies to the majority of people on the planet, actually.",
"title": ""
},
{
"docid": "8fda556ad6cb96a5357c78be226dbea8",
"text": "In my business (estate planning law practice), probably 60-70% of my income is in the form of checks, with the balance as credit/debit cards. I prefer to get paid by check so I don't have to pay the approx 2.5% merchant fee, but I don't push clients to choose one method over the other. I offer direct deposit to my employees but most of them choose to be paid by check. Also, check processing is becoming more and more electronic - when I get paid by check, I scan the checks in a dedicated desktop scanner, and upload the check images to the bank at the end of the day, and the checks are processed very quickly. I also make deposits to my personal credit union account by scanning checks and uploading the images. So, yes, there's technically a paper check, but I (as the merchant/recipient/depositor) keep the check for a few months to make sure there's no problem with the deposit/payment, then shred them. The bank never sees the actual paper check.",
"title": ""
},
{
"docid": "1612c66234ab9b4f19b31a9a740465c8",
"text": "\"A very interesting topic, as I am moving to the US in a month. I realise this thread is old but its been helpful to me. My observations from my home country \"\"Before we judge anyone who doesn't use direct deposit or who prefers to be paid in cold hard cash, consider that direct deposit is a luxury of stability. Steady job, home, etc. Direct deposit doesn't make sense for a contractor or day labourer who expect to work for a different person each day or week\"\" --- well here a contractor would still be paid by a direct deposit, even if he was working for many different people. On the invoice the contractor provides Bank account details, and customer logs onto their internet banking and pays electronically. It is a a very simple process and is the preferred method of payment by most businesses even small contractors. Many accounting software programs are linked to bank accounts and can quickly reconcile accounts for small business. Many businesses will not accept a cheque in Australia anymore as they are considered to be a higher risk. I started work in 1994 and have never received any payment except via direct deposit.\"",
"title": ""
},
{
"docid": "c1e1220560ce3d4ece5ce7f64ee937e5",
"text": "I still use checks to pay rent and occasionally some bills/liabilities. That said, I did notice an (elderly) lady paying by check at the supermarket a while ago. So is it really common to get a paycheck in the sense that you get a piece of paper? Yes and no. There are some people that opt for the physical paycheck. Even if they do not, there is a pay stub which serves as a record of it. My last employer went to online pay stubs and a bunch of us opted out, sticking with the good old paper in an envelope. We sure were glad of that when there were technical issues and security concerns with the online service.",
"title": ""
},
{
"docid": "e01aba077b19ab21e245ef66e69f8aa5",
"text": "Sorry for this late reply. I currently live in Iceland (I am a United Statesian). People here told me they thought checks were just something that were in movies. I was amazed by this. So here are some reasons that I see to being why it works still in the usa. 1. Social Security system. Most Euro, Nordic countries have their lives, bank accounts, ect tied to their 'Social Security' number and that number is not top secret like it is in the USA. In fact here in Iceland you throw your number around to anyone who wants it because they cant do anything with it but pay you money really. 2. Banks. In the USA there are millions, MILLIONS of small town banks. That means that doing direct deposits or transfers is much much harder to achieve. Example: Iceland has two banks. The most common way of loaning a friend money or paying for that hotel room if you forgot to bring cash or your card is to say 'Give me your SSN and I will transfer to you'. It takes about 30 seconds to do a funds transfer. In the USA you can't do that. They would think you are lying or not want to give they bank info or because of the fees from small town banks it would be pointless. Also a lot of these small banks will not accept direct deposit (I had a bank growing up that still does not) These are some of the main reasons that I think cause the flow of checks in the usa.",
"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": "c7f899827d3aae4754d6c612163051a6",
"text": "Typically your paychecks are direct deposited into your bank account and you receive a paycheck stub telling you how much of your money went where (taxes, insurance, 401k, etc.). Most people use debit or credit cards for purchases. I personally only use checks to transfer money to another person (family, friend, etc.) than a business. And even then, there's PayPal.",
"title": ""
},
{
"docid": "45d5bbbb109433ec4decc5f783d5ee72",
"text": "There are some people that still get an old-fashioned paycheck but for the most part if you are an employee at a company you get a paystub while the money is direct deposited into your accounts. Paying for stuff at a store with a check is not very common. Most people use credit cards for that purpose. A significant percentage of the population still use checks for paying there regular bills through the mail. Although the more internet savvy people will most likely use online bill pay from their bank so they don't have to mail checks. Personally I have only written about 15 checks in 5 years. Mostly to people and not to businesses setup for receiving bill payments electronically.",
"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": "dce2e7d55d8aed2b088a1fd27ce27f39",
"text": "\"People who rent an apartment will typically pay by check. Probably 90% of the checks I have written are for rent. To some extent this falls under the previously mentioned \"\"payments to another person\"\" rule.\"",
"title": ""
},
{
"docid": "e726704aa3a047d7e8672b6868a8e179",
"text": "Ever since my apartment complex started accepting rent payments online, I've almost never written a check. I use my debit card for everything. And I get paid by direct deposit.",
"title": ""
},
{
"docid": "67a6bbba7f13b2a6635133848ebf9e54",
"text": "I receive checks from my tenant. Also, from our medical reimbursement account. I'm sure there's an option somewhere to get that direct deposited, just haven't yet. My wife will write checks for school functions. Funny, they haven't cashed one since february, and this is the one item to look for every time I reconcile her account. A few select others don't take credit or debit cards. Our tailor (losing weight, needed pants pulled in), among others. The number of checks is surely down an order of magnitude over the years, but still not zero.",
"title": ""
},
{
"docid": "14db4aaccba207332c28e3d8235ba523",
"text": "From a Canadian point of view, I think we are generally very similar to how you describe Austria. The only thing I use cash for, is to pay for my coffee at a local micro-roaster who only accepts cash. Cheques, I only use to pay friends. Everything else is debit or credit card. Very few businesses around here will even accept cheques anymore.",
"title": ""
},
{
"docid": "005e07c2a709929f6b8fb66f86f38363",
"text": "It is possible to not use checks in the US. I personally use a credit card for almost everything and often have no cash in my wallet at all. I never carry checks with me. If we wanted to, we could pay all of our monthly bills without checks as well, and many people do this. 30 years ago, grocery stores didn't generally accept credit cards, so it was cash or check, though most other kinds of stores and restaurants did. Now, the only stores that I have encountered in years that do not accept credit cards are a local chicken restaurant, and the warehouse-shopping store Costco. (Costco accepts its own credit card, but not Mastercard or Visa.) Still, we do pay the majority of our monthly bills via check, and it would not be shocking to see someone paying for groceries with a check. I can't name the last time I saw someone write a check at a store exactly, but I've never seen any cashier or other patrons wonder what a check-writer was trying to do. Large transactions, like buying a car or house, would still use checks -- probably cashier's or certified checks and not personal checks, though.",
"title": ""
}
] |
[
{
"docid": "90f4a09fd47702b34fd698aa96b6fdb0",
"text": "\"You can spend the money quite quickly. The problem is that if there is something wrong with the check, the bank will ask you for the money back. If the check is from a trusted source (a trusted friend, a business with good reputation etc.) that's fine. If the money is from an untrusted source, make sure that having to pay back the money doesn't get you into trouble. Since most people are honest, this is fine for a small amount, but if it's more than you can afford to pay back, don't spend it. A simple scam is that people send you checks, \"\"by mistake\"\" the check is for the wrong amount, say $910 instead of $190, and they ask you to send the difference back. So you put $910 into your account, send them $720, and six weeks later your bank asks for their $910 back. If someone pays you too much on a check and asks you to pay them the difference, you know it is a scam.\"",
"title": ""
},
{
"docid": "cdc5937ee4679065bb4a2878b10d27dc",
"text": "Check use is declining here too, but it still has some practical advantages over electronic means:",
"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": "4e906b74b083c9b0c9370ece62cffc5b",
"text": "Not just America, and I assume not ALL companies, but heaps in Australia are doing the same thing. I work for one that does, I mean all of the Visa workers in here are wonderful people so it's not a big deal to me. I can definitely relate to people being annoyed about this though, especially as many foreigners send a lot of their money overseas instead of spending it here.",
"title": ""
},
{
"docid": "0ff97fdc7a3510f25ff7d3820da6ec25",
"text": "A lot of Americans have used Swiss bank accounts to avoid paying taxes. However recently several large Swiss banks have started disclosing the details on some of their customers to the IRS. There isn't much security in Swiss banking at this point in time.",
"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": "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": "ee98cdc37024de3dac00fdb75f6e1d98",
"text": "Believe it or not, this is done as a service to you. The reason for this has to do with a fundamental difference between a credit card account and a checking account. With a credit card account, there is no money in the account; every charge is borrowed money. When you get to your credit limit, your credit transactions will start getting declined, but if the bank does for some reason let one get approved, it's not a big deal for anyone; it just means that you owe a little more than your credit limit. Note that (almost) every credit card transaction today is an electronic transaction. A checking account, however, has real money in it. When it is gone, it is gone. When a balance inquiry is done, the bank has no way of knowing how many checks you've written that have not been cashed yet. It is a customer's responsibility to know exactly how much money is available to spend. If you write more checks than you have money for in your account, technically you have committed a crime. Unfortunately, there are too many people now that are not taking the responsibility of calculating their own checking account balance seriously, and bad checks are written all the time. When a bank allows these transactions to be paid even though you don't have enough money in your account, they are preventing a crime from being committed by you. The fee is a finance charge for loaning you the money, but it is also there to encourage you not to spend more than you have. Even if you use a debit card, it is still tied to a checking account, and the bank doesn't know if you have written enough checks to overdraw your account or not. It is still your responsibility to keep track of your own available balance. Every time this happens to you, thank the bank as you pay this fee, and then commit to keeping your own running balance and always knowing how much you have left in your account.",
"title": ""
},
{
"docid": "23641425a136902b14a888a56d82c9b1",
"text": "Because of the way checks are processed, you can't write a check for $100 million or more: http://www.bankingquestions.com/checksyoureceived/q_limitfunds.html The field used for 'amount' has 10 digits, so anything at/above 10^10 cents (which would require 11 digits) can't be processed, at least not by normal means.",
"title": ""
},
{
"docid": "2d797e0c5aeb688f536cd46d2b3308dd",
"text": "\"Here's a hack for getting the \"\"free\"\" checking that requires direct deposit. Some effort to set up, but once everything is in place, it's all autopilot. (If your transfer into savings is higher than your transfer out of savings, you'll build up a nice little stash over time.) I don't know if there are deposit amounts or frequencies that you must have to qualify for the free account, if these are public or secret, or if this works everywhere. If anyone else has experience using this kind of hack, please leave a comment.\"",
"title": ""
},
{
"docid": "dc9beba134af860f63df40315c9b5caa",
"text": "\"Two typical responses to articles/surveys making such claims: **1. People use other forms of asset for emergency savings because interest rates are low - clearly false.** **2. People use other forms of saving than a saving account therefore such surveys as the X% can't handle a $500 emergency are wrong on their face - this is false the vast majority use a savings account.** I've chosen a topic that absolutely annoys the shit out of me every time it comes up, how people save their money. Every time this topic comes up about X% of americans can't come up with $Y dollars in an emergency or have less than $Z in savings someone inevitably chimes in with the linked response. I have *never* seen anyone attempt to source their hand waving response beyond their own anecdote, which is usually a thinly veiled brag about how financially savvy they are with their wealth. Perhaps people who have no assets, or crippling debt don't go out of their way to brag about it... I could link multiple reddit posts making a similar response, which I address with my own stock response about once every 1-2 months. Instead I've decided to expand with data from several other sources. This is the prototypical good/bad research problem. If you're asserting something, but qualify your statement with, \"\"I\"\"m sure we'd find...if we looked into...\"\" then you're doing it wrong. A good researcher or journalist doesn't put bullshit like that in their work because it's their job to actually look for sources of data; data which should exist with multiple government and independent groups. So let's get started (all data as recent as I could find, oldest source is for 2010): * [Most americans don't invest in the stock market](https://www.federalreserve.gov/pubs/bulletin/2014/pdf/scf14.pdf) About 48.8% of americans owned publicly traded stock directly or indirectly, with a much smaller percent (13.8%) owning stock directly - pages 18 and 16 respectively. It's important to note the predominance of indirect ownership which suggests this is mostly retirement accounts. It's entirely possible people are irresponsible with their emergency savings, but I think it safe to say we should not expect people to *dip into their retirement accounts* for relatively minor emergency expenses. The reason is obvious, even if it covers the expense they now have to make up the shortfall for their retirement savings. This is further supported by the same source: >\"\"The value of assets held within IRAs and DC plans are among the most significant compo-nents of many families’ balance sheets and are a significant determinant of their future retirement security.\"\" Ibid (page 20, PDF page 20 of 41) There is also a break down of holdings by asset type on page 16, PDF page 16 of 41. * [This data is skewed by the top 10% who keep more of their wealth in different asset types.](http://www2.ucsc.edu/whorulesamerica/power/wealth.html) For a breakdown between the 1st, 10th, and 90th percentiles see **table 3.** So far it seems pretty hard to maintain a large percent of americans have their wealth stored outside of savings accounts, mattresses aside. * [Here's my original reply as to the breakdown of americans assets by type and percent holding.](https://imgur.com/a/DsLxB) Note this assumes people *have* assets. [Source for images/data.](https://www.census.gov/people/wealth/data/dtables.html) Most people use savings accounts, with runner up falling to checking accounts. This will segue into our next topic which is the problem of unbanked/underbanked households. * [A large number of individuals have no assets; breaking down by asset types assumes people *have* assets in the first place.](https://www.fdic.gov/householdsurvey/) To quote the FDIC: >*\"\"Estimates from the 2015 survey indicate that 7.0 percent of households in the United States were unbanked in 2015. This proportion represents approximately 9.0 million households. An additional 19.9 percent of U.S. households (24.5 million) were underbanked, meaning that the household had a checking or savings account but also obtained financial products and services outside of the banking system.\"\"* That's right there are millions of households *so finance savvy* they don't even have banks accounts! Obviously it's because of low interest rates. Also, most people have a checking account as well as savings account, the percent with \"\"checking and savings\"\" was 75.8% while those with \"\"checking only\"\" were 22.2% (page 25, PDF page 31 of 88). It's possible in some surveys people keep all their money in checking, but given other data sources, and the original claim this fails to hold up. If the concern was interest rates it makes no sense to keep money in checking which seldom pays interest. This survey also directly addresses the issue of \"\"emergency savings\"\": > *\"\"Overall, 56.3 percent of households saved for unexpected expenses or emergencies in the past 12 months.\"\"* (page 37, PDF page 43 of 88) Furthermore: >*\"\"Figure 7.2 shows that among all households that saved for unexpected expenses or emergencies, savings accounts were the most used savings method followed by checking accounts:* **more than four in five (84.9 percent) kept savings in one of these accounts.** *About one in ten (10.5 percent) households that saved maintained savings in the home, or with family or friends.\"\"* Emphasis added. * [Why don't people have wealth in different asset classes? Well they don't save money.](http://cdn.financialsamurai.com/wp-content/uploads/2014/06/savings-rates-by-wealth-class.png) This is further supported by the OECD data: * [Americans \"\"currency and deposits\"\" are 13% vs 5.8% for \"\"securities and other shares\"\" as % of total financial assets.](https://data.oecd.org/hha/household-financial-assets.htm) Additionally: * [Interest earning checking accounts: 44.6% of american households (second image)](https://imgur.com/a/DsLxB) * [\"\"Among all households that saved for unexpected expenses or emergencies, savings accounts were the most used savings method followed by checking accounts...\"\" (page 7, PDF page 13 of 88)](https://www.fdic.gov/householdsurvey/2015/2015report.pdf) * ~70% saved for an emergency with a savings account vs ~24% who used checking. *Ibid.* In fairness the FDIC link does state *banked* americans were more likely to hold checking accounts than savings accounts (98% vs ~77% respectively) but that doesn't mean they're earning interest in their checking account. It's also worth noting median transaction account value was for 2013 (this is the federal reserve data) $4100.\"",
"title": ""
},
{
"docid": "1e3057c1fc6c4cd285ff605bf4f2e8ef",
"text": "Yes. I've spoken to mortgage officers from various banks who will do conventional loans with anything as low as 3.5% down, however there are many more restrictions (e.g., normally you can borrow funds from a parent or relative for a down payment, in this case that was prohibited). If you are already pre-approved, then your approval letter should state the specifics you need to adhere to. If you would like to modify that (e.g. put a smaller amount down), then you could still get the loan, but your pre-approval won't be valid. I would recommend speaking with your lender (and perhaps with a few others as well) about the new home you are looking at.",
"title": ""
},
{
"docid": "bcb9eaeafb6185e76ad564d565950eaf",
"text": "Sorry to hear about your spouse's health issues. May he have a speedy and, as far as possible, full recovery. The Patient Protectection and Affordable Care Act (PPACA, aka Obamacare) is now the law of the land. Among its many provisions are that insurers may no longer deny coverage for pre-existing conditions, they may not put lifetime caps on benefits, and they may not charge different premiums based on any criteria except age cohort and geographic area (i.e. rates may be higher for 50 year olds than 30 year olds, but sick and healthy 50 year olds living in the same area pay the same). If he gets government health coverage because he's on disability, this may not matter. On the other hand, you might find it better to put him on your employer's policy, because you like the coverage better, the employer covers part of the dependent premium, or some other reason. In any case, they can't discriminate against him or you based on his condition. ETA: Rates may vary by geography as well as age.",
"title": ""
}
] |
fiqa
|
bc0a76fa376429866712501cf3caacb5
|
Is income from crypto-currencies taxed?
|
[
{
"docid": "4f64ef46bb0260c8b78aaf58038bcb06",
"text": "Mining is income at the value at time of earning, I would use an index like XBX to determine price. Asset appreciation is capital gains. These aspects of crypto-assets are not a gray area in the US financial sector, and have been addressed for almost half a decade now.",
"title": ""
},
{
"docid": "229d3ecda58289b259fc5368abefe568",
"text": "In Canada, it is similarly taxed as CQM states. Mining is considered business income and you need to file a T1 form. Capital appreciation is no different than treating gains from stock.",
"title": ""
}
] |
[
{
"docid": "1c7beebb3549c75c9dd76f80232f5e9c",
"text": "What you are looking for is a 1031 exchange. https://www.irs.gov/uac/like-kind-exchanges-under-irc-code-section-1031 Whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free. You may also sell your house for bitcoin and record the sales price on the deed with an equal or lesser amount that you bought it for.",
"title": ""
},
{
"docid": "0dcde7237c2f07188a3d6d58976f32e7",
"text": "Crypto will make us all rich when it becomes the new standard highly volatile currency. As we all know how attractive a highly volatile currency is. Who doesn't want to save on 1% banking fees for cross border transactions when you could use crypto and potentially make or lose 20%. /s",
"title": ""
},
{
"docid": "a87688fb747cdc8f66ebfc69393bdf18",
"text": "This is taxed as ordinary income. See the IRC Sec 988(a)(1). The exclusion you're talking about (the $200) is in the IRC Sec 988(e)(2), but you'll have to read the Treasury Regulations on this section to see if and how it can apply to you. Since you do this regularly and for profit (i.e.: not a personal transaction), I'd argue that it doesn't apply.",
"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": "ef1aa2e4d657518b6e67bb4c8e7ff483",
"text": "Under what section do I declare my profits when I pay tax? You have to declare this as income from other source and pay tax as per tax brackets. I'm from India and have been trading in binary options for a while now Trading in India on binary options is illegal. If you are using Forex from India for trading, this is not allowed as per Foreign Exchange Management Act.",
"title": ""
},
{
"docid": "d50c7fdfce08325fca77e8f189c16e91",
"text": "It's important to note that the US is also the country that taxes its expats when they live abroad, and forces foreign banks to disclose assets of US citizens. Americans are literally the property of their government. America is a tax farm and its citizens can't leave the farm. Wherever you go, you are owned. And that now appears to be true of your Bitcoin as well. Even if you spend 50 years outside the USA, your masters want a piece of what you earn. Land of the Free.",
"title": ""
},
{
"docid": "67363603df95dbf02c5c4c322d2c4a61",
"text": "It should be very obvious that getting X Euro cash in your hand is better than deducting them from taxable income. You would need to have a tax rate of over 100% to do better otherwise.",
"title": ""
},
{
"docid": "f047a86a26ffe9decad612ab2b5ed4e0",
"text": "Note the above is only for shares. There are different rules for other assets like House, Jewellery, Mutual Funds, Debt Funds. Refer to the Income Tax guide for more details.",
"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": "b86d06b83930b46c910d7c04b1b8f98e",
"text": "It should be reported as Miscellaneous Income. Congratulations for wanting to report this income.",
"title": ""
},
{
"docid": "b66aecaca3cfc6d1bf0b48153f487a92",
"text": "Yes, at that stage income is income regardless of source. Assuming you're talking about overall profit, not just the individual wins when gambling.",
"title": ""
},
{
"docid": "d0924928f7f5f7194bd15333e140dbae",
"text": "\"In 2014 the IRS announced that it published guidance in Notice 2014-21. In that notice, the answer to the first question describes the general tax treatment of virtual currency: For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency. As it's property like any other, capital gains if and when you sell are taxed. As with any capital gains, you're taxed on the \"\"profit\"\" you made, that is the \"\"proceeds\"\" (how much you got when you sold) minus your \"\"basis\"\" (how much you paid to get the property that you sold). Until you sell, it's just an asset (like a house, or a share of stock, or a rare collectible card) that doesn't require any reporting. If your initial cryptocurrency acquisition was through mining, then this section of that Notice applies: Q-8: Does a taxpayer who “mines” virtual currency (for example, uses computer resources to validate Bitcoin transactions and maintain the public Bitcoin transaction ledger) realize gross income upon receipt of the virtual currency resulting from those activities? A-8: Yes, when a taxpayer successfully “mines” virtual currency, the fair market value of the virtual currency as of the date of receipt is includible in gross income. See Publication 525, Taxable and Nontaxable Income, for more information on taxable income. That is to say, when it was mined the market value of the amount generated should have been included in income (probably on either Line 21 Other Income, or on Schedule C if it's from your own business). At that point, the market value would also qualify as your basis. Though I doubt there'd be a whole lot of enforcement action for not amending your 2011 return to include $0.75. (Technically if you find a dollar bill on the street it should be included in income, but usually the government cares about bigger fish than that.) It sounds like your basis is close enough to zero that it's not worth trying to calculate a more accurate value. Since your basis couldn't be less than zero, there's no way that using zero as your basis would cause you to pay less tax than you ought, so the government won't have any objections to it. One thing to be careful of is to document that your holdings qualify for long-term capital gains treatment (held longer than a year) if applicable. Also, as you're trading in multiple cryptocurrencies, each transaction may count as a \"\"sale\"\" of one kind followed by a \"\"purchase\"\" of the other kind, much like if you traded your Apple stock for Google stock. It's possible that \"\"1031 like kind exchange\"\" rules apply, and in June 2016 the American Institute of CPAs sent a letter asking about it (among other things), but as far as I know there's been no official IRS guidance on the matter. There are also some related questions here; see \"\"Do altcoin trades count as like-kind exchanges?\"\" and \"\"Assuming 1031 Doesn't Apply To Cryptocurrency Trading\"\". But if in fact those exchange rules do not apply and it is just considered a sale followed by a purchase, then you would need to report each exchange as a sale with that asset's basis (probably $0 for the initial one), and proceeds of the fair market value at the time, and then that same value would be the basis of the new asset you're purchasing. Using a $0 basis is how I treat my bitcoin sales, though I haven't dealt with other cryptocurrencies. As long as all the USD income is being reported when you get USD, I find it unlikely you'll run into a lot of trouble, even if you technically were supposed to report the individual transactions when they happened. Though, I'm not in charge of IRS enforcement, and I'm not aware of any high-profile cases, so it's hard to know anything for sure. Obviously, if there's a lot of money involved, you may want to involve a professional rather than random strangers on the Internet. You could also try contacting the IRS directly, as believe-it-or-not, their job is in fact helping you to comply with the tax laws correctly. Also, there are phone numbers at the end of Notice 2014-21 of people which might be able to provide further guidance, including this statement: The principal author of this notice is Keith A. Aqui of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information about income tax issues addressed in this notice, please contact Mr. Aqui at (202) 317-4718\"",
"title": ""
},
{
"docid": "7167ec18e71daaffb58292000094dc2c",
"text": "Would I have to pay some kind of capital gains tax? And if so, when? Converting Tax paid USD into CAD is not a taxable event. A taxable even will occur if you convert back the CAD into USD. If you receive interest on the CAD then the interest is also a taxable event. Also, is there any reason this is a terrible idea? That will only be known in future. Its like predicting that in future this will turn out to be advantageous, however it may turn out the other way.",
"title": ""
},
{
"docid": "fe4d51ea49dc69c61e96c23aedb34e51",
"text": "Normally, yes, you would have to pay. If you are in the US, or a citizen of the US, then IRC Sec. 61 would levy tax on all income. Even if you find money on the ground, that will generally be taxable income (the treasure trove doctrine). If you are paying foreign income taxes, the US may allow credit.",
"title": ""
},
{
"docid": "85e79ba38e7a9b761ad1d0665011ddf6",
"text": "It has properties of both. Tax authorities will eventually give their opinion on this. Through its properties of finite quantity, fungibility, and resistance to forgery/duplication, it acts as a commodity. It can be sent directly between any two parties anywhere on Earth, without regard for the quantity transacted or physical distance, to act as a currency. By the way, establishing trust in a trust-free environment through cryptographic proof-of-work is a remarkable invention. Sending economic value, cheaply and securely, around the world in minutes, not days/weeks, is a remarkable invention. This is where the value comes from.",
"title": ""
}
] |
fiqa
|
a0924aeaa3a313090bcde3e09ba44f71
|
Double entry for mortgage
|
[
{
"docid": "e31d8c3f836d3ec8d604107df90b5081",
"text": "For the purpose of personal finance, treating $500 as Interest Expense is sufficient. For business accounting, it involves making the $500 a contra-liability and amortizing it as interest expense over the course of life of the loan.",
"title": ""
},
{
"docid": "0bcbb94c232d3c08232b50344bfc12be",
"text": "The £500 are an expense associated with the loan, just like interest. You should have an expense account where you can put such financing expenses (or should create a new one). Again, treat it the same way you'll treat interest charges in future statements.",
"title": ""
}
] |
[
{
"docid": "409ac925651cc4ebb63b381c55fee2a8",
"text": "Sounds fishy - taking out more debt to pay the main mortgage down faster? There are a couple of issues I can see: I would think that a much more sensible strategy with a lot less risk is to save up extra cash and send your lender a check every quarter or six months.",
"title": ""
},
{
"docid": "9480629b3fcd1e52c37b21d24bc2587a",
"text": "\"I took a second mortgage when I moved house because I had a long-term fixed rate mortgage that would have incurred punitive fees if I had cancelled it. Rather than doing that I took a second mortgage over the same term for the difference. As my second mortgage was with the same lender, they still had \"\"First Charge\"\" on the property (This means that in the event of default they have first call on the property to recoup their losses), so the interest rate was not higher (actually it was slightly less than my first mortgage). My case is not that usual, normally a 'second mortgage' is with a separate provider that takes a \"\"Second Charge\"\" on the property. The interest rates are normally higher as a result as there is more chance that the lender will not recoup their money in case of a default as the first charge has priority. The second mortgage may still be cheaper than an unsecured loan, as the second charge provides some collateral, this might make it attractive if a sudden expense needs to be covered.\"",
"title": ""
},
{
"docid": "bfa0272d5b3a2671dfda9ee449eee319",
"text": "\"littleadv's first comment - check the note - is really the answer. But your issue is twofold - Every mortgage I've had (over 10 in my lifetime) allows early principal payments. The extra principal can only be applied at the same time as the regular payment. Think of it this way - only at that moment is there no interest owed. If a week later you try to pay toward only principal, the system will not handle it. Pretty simple - extra principal with the payment due. In fact, any mortgage I've had that offered a monthly bill or coupon book will have that very line \"\"extra principal.\"\" By coincidence, I just did this for a mortgage on my rental. I make these payments through my bank's billpay service. I noted the extra principal in the 'notes' section of the virtual check. But again, the note will explicitly state if there's an issue with prepayments of principal. The larger issue is that your friend wishes to treat the mortgage like a bi-weekly. The bank expects the full amount as a payment and likely, has no obligation to accept anything less than the full amount. Given my first comment above here is the plan for your friend to do 99% of what she wishes: Tell her, there's nothing magic about bi-weekly, it's a budget-clever way to send the money, but over a year, it's simply paying 108% of the normal payment. If she wants to burn the mortgage faster, tell her to add what she wishes every month, even $10, it all adds up. Final note - There are two schools of thought to either extreme, (a) pay the mortgage off as fast as you can, no debt is the goal and (b) the mortgage is the lowest rate you'll ever have on borrowed money, pay it as slow as you can, and invest any extra money. I accept and respect both views. For your friend, and first group, I'm compelled to add - Be sure to deposit to your retirement account's matched funds to gain the entire match. $1 can pay toward your 6% mortgage or be doubled on deposit to $2 in your 401(k), if available. And pay off all high interest debt first. This should stand to reason, but I've seen people keep their 18% card debt while prepaying their mortgage.\"",
"title": ""
},
{
"docid": "aa1f9c1214d7c33fb2a1e73c46fcb482",
"text": "\"You don't. No one uses vanilla double entry accounting software for \"\"Held-For-Trading Security\"\". Your broker or trading software is responsible for providing month-end statement of changes. You use \"\"Mark To Market\"\" valuation at the end of each month. For example, if your cash position is -$5000 and stock position is +$10000, all you do is write-up/down the account value to $5000. There should be no sub-accounts for your \"\"Investment\"\" account in GNUCash. So at the end of the month, there would be the following entries:\"",
"title": ""
},
{
"docid": "48868ffe482149e6978a8f1257960eff",
"text": "The calculations you suggest have some issues, but I think they are not necessary to answer the question: It sounds like you are buying the house either way. So the question really is simply whether to pay toward your house first or your loan first. In that case, the answer is simple: pay whichever has the highest interest rate first. Make the minimum payment on the other until the first is paid off. Remember this and make it your mantra for the rest of your life. If you have any debts (such as credit cards) that charge a rate higher than the two options you have presented, do them first. Now, be careful as you compute the interest rates. Most likely you can deduct interest on your mortgage, so its effective interest rate is lower [it is (1-T)*R instead of R, where T is your marginal tax rate]. For a while, the cost of mortgage insurance will make your effective mortgage rate artificially high, but it sounds like you intend to get to that 20% hurdle pretty fast, so my guess is that this is not a big factor. Congratulations on your bonus and good luck with your new home.",
"title": ""
},
{
"docid": "f31499789d7290c5909610351f06461a",
"text": "I can't give you a specific answer because I'm not a tax accountant, so you should seek advice from a tax professional with experience relevant to your situation. This could be a complicated situation. That being said, one place you could start is the Canada Revenue Agency's statement on investment income, which contains this paragraph: Interest, foreign interest and dividend income, foreign income, foreign non-business income, and certain other income are all amounts you report on your return. They are usually shown on the following slips: T5, T3, T5013, T5013A To avoid double taxation, Canada and the US almost certainly have a foreign tax treaty that ensures you are only taxed in your country of residence. I'm assuming you're a resident of Canada. Also, this page states that: If you received foreign interest or dividend income, you have to report it in Canadian dollars. Use the Bank of Canada exchange rate that was in effect on the day you received the income. If you received the income at different times during the year, use the average annual exchange rate. You should consult a tax professional. I'm not a tax professional, let alone one who specializes in the Canadian tax system. A professional is the only one you should trust to answer your question with 100% accuracy.",
"title": ""
},
{
"docid": "3afb0883ae38ba9c71dcea12eef9398c",
"text": "I have been following some of these threads. Some of them are really old. I have read used recording to equity accounts to resolve the imbalance USD issue. The thing I noticed is that all my imbalances occur when paying bills. I took all the bills and set them up as vendor accounts, entered the bills in the new bills, and used the process payment when paying bills. The imbalance issue stopped. It makes sense. The system is a double entry. That's it will credit and debit. Assets accounts are increased with a debit and decreased with a credit. Equity accounts are increased with a credit and decreased with a debit. ie; Say you have an monthly insurance bill for $100. You enter it into the new vendor bill. This credits Accounts Payable. When paying the bill it credits checking, debits account payable, credits vendor account, debits the expense insurance. In short for each credit there has to be a debit for the books to balance. When there is no account for it to record to it will record in Imbalance USD to balance the books.",
"title": ""
},
{
"docid": "7da7f4bfd86810b55a4c938eb892ef0a",
"text": "As pointed out in a comment, it would be more natural to get a regular mortgage on the second house, which is essentially using the second house as collateral for its own loan. If you are to use the first house, either mortgage it or get a home equity line of credit on it and use that money to buy the second house. The relative merits of the options may depend in part on where you live, whether or not you live in the homes, and the relative cost of the two properties. For example, in the US, first and second homes get preferred tax treatment in addition to rates that are typically better than commercial loans (including mortgages for investment properties). If you're going to get a better rate and pay less taxes on one option and not on the others, that's definitely something to weigh.",
"title": ""
},
{
"docid": "1c2347a4ed4cd25bf7adcbdf7126f9d7",
"text": "The rules of thumb are there for a reason. In this case, they reflect good banking and common sense by the buyer. When we bought our house 15 years ago it cost 2.5 times our salary and we put 20% down, putting the mortgage at exactly 2X our income. My wife thought we were stretching ourselves, getting too big a house compared to our income. You are proposing buying a house valued at 7X your income. Granted, rates have dropped in these 15 years, so pushing 3X may be okay, the 26% rule still needs to be followed. You are proposing to put nearly 75% of your income to the mortgage? Right? The regular payment plus the 25K/yr saved to pay that interest free loan? Wow. You are over reaching by double, unless the rental market is so tight that you can actually rent two rooms out to cover over half the mortgage. Consider talking to a friendly local banker, he (or she) will likely give you the same advice we are. These ratios don't change too much by country, interest rate and mortgages aren't that different. I wish you well, welcome to SE.",
"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": "3902ff75b95b17d3da9bb9b7e00e3bdb",
"text": "\"If you have enough earned income to cover this amount you should be all set. If I understand you correctly you proposed two transactions. The first, a withdrawal from the beneficiary IRA. Some of which is an RMD the rest is an extra withdrawal of funds. Next, you propose to make a deposit to a combination of your IRA and your wife's IRA. As long as there's earned income to cover this deposit, your plan is fine. To be clear, you can't \"\"take a bene IRA and deposit the RMD to an IRA.\"\" But, money is fungible, the dollars you deposit aren't traceable, only need to be justified by enough earned income. A bene IRA is a great way to get the money to increase your own IRA or 401(k) deposits. Further details - The 2016 contribution limit is $5,500 per person, so I did make the assumption you knew the $9000 deposit need to be split between the 2 IRAs, with no more than $5500 going into either one.\"",
"title": ""
},
{
"docid": "042b242265023ff11bf09c68b010334d",
"text": "If you can qualify for two mortgages, this is certainly possible. For this you can talk to a banker. However, most people do not qualify for two mortgages so they go a different route. They make offers on a new home with a contingency to sell the existing home. A good Realtor will walk you through this and any possible side effects. Keep in mind that the more contingencies in an offer the less attractive that offer is to sellers. This is how cash buyers can get a better deal (no contingencies and a very fast close). Given the hotness of your market a seller might reject your offer as opposed to first time home buyer that does not need to sell an old home. On the other hand, they may see your contingency as low risk as the market is so hot. This is why you probably need a really good agent. They can frame the contingency in a very positive light.",
"title": ""
},
{
"docid": "5118f344d1af3a18c3adfa1c3264fd1f",
"text": "If your mortgage is an interest only one then the full amount of the payment you make should be to an expense account perhaps called mortgage interest. If the mortgage is a repayment mortgage you need to split the amount of the payment between such an expense account called mortgage interest and between a liability account which is the amount of the loan. In practice I have not found it very easy to do all this as the actual amounts vary depending on number of days in the month and then there are occasional charges etc made by the mortgage company so some approximations seem to be needed unless one is to spend hours trying to get it exactly correct...... Steve",
"title": ""
},
{
"docid": "252746493a0e4309e5f8a4c89e7e6467",
"text": "I'll preface this with saying that I'm not a finance or real estate professional, this is just how I understand the situation and what I'm doing: We just got a 30year/FHA mortgage, there's no prepayment penalty, and no fees associated with paying it biweekly. In fact (Wells Fargo), while the payments get withdrawn biweekly, they don't actually post to the mortgage until there's enough for a full payment. So essentially here are the benefits I'm realizing:",
"title": ""
},
{
"docid": "8f92ce53db50ec532e8395af9da6f0bb",
"text": "I think you are running into multiple problems here: All these together look like a high risk to a bank, especially right now with companies being reluctant to hire full-time employees. Looking at it from their perspective, the last thing they need right now is another potential foreclosure on their books. BTW, if it is a consolation, I had to prove 2 years of continuous employment (used to be a freelancer) before the local credit union would consider giving me a mortgage. We missed out on a couple of good deals because of that, too.",
"title": ""
}
] |
fiqa
|
061c0dc2a613e931658f0fd7d66b3abe
|
Is Bitcoin a commodity or a currency [duplicate]
|
[
{
"docid": "85e79ba38e7a9b761ad1d0665011ddf6",
"text": "It has properties of both. Tax authorities will eventually give their opinion on this. Through its properties of finite quantity, fungibility, and resistance to forgery/duplication, it acts as a commodity. It can be sent directly between any two parties anywhere on Earth, without regard for the quantity transacted or physical distance, to act as a currency. By the way, establishing trust in a trust-free environment through cryptographic proof-of-work is a remarkable invention. Sending economic value, cheaply and securely, around the world in minutes, not days/weeks, is a remarkable invention. This is where the value comes from.",
"title": ""
},
{
"docid": "79add24a8545fda941b3158fea0c6d65",
"text": "\"Its neither. Its a scam. there's no value underlying it, and it has proven to be the most speculative and untrustworthy investment there is. The scam works like a pyramid scam, so the more people come later on the more people who came in earlier on gain, so that is why you see so much hype around it encouraged and fueled by those early adopters who'll cash out at your expense. Imagine people who jumped on the bandwagon when each coin was worth a mere fraction of a dollar - they want you to \"\"invest\"\" at the current price of hundreds of dollars per unit so that they could cash out. You'd be better off with tulips, really. (And don't be discouraged by the downvotes on this answer, of course those scamers will try to shut me down. That will just prove the point.)\"",
"title": ""
},
{
"docid": "5e6d821a8993439b77890a01220e2930",
"text": "I would classify Bitcoin as a hybrid. Currency : It is accepted by e-businesses as a form of payment Commodity : Chart illustrating the volatility and speculative nature of Bitcoin",
"title": ""
}
] |
[
{
"docid": "4f64ef46bb0260c8b78aaf58038bcb06",
"text": "Mining is income at the value at time of earning, I would use an index like XBX to determine price. Asset appreciation is capital gains. These aspects of crypto-assets are not a gray area in the US financial sector, and have been addressed for almost half a decade now.",
"title": ""
},
{
"docid": "1b6e0840c6ca3acfeab6d19c999c5c21",
"text": "\"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. \"\" Guess I had to come out of the woodwork here. Sounds like you just described bitcoin. :) Plus it is nice because it is much cheaper and easier to digitally transfer than heavy metal. Since bitcoin has a very finite supply, and probably upsets Keynesian economics, I could see an alt-coin that would have an automatic calculation built in to create more money based on inflation.\"",
"title": ""
},
{
"docid": "41d1adf0e83406848f9a4b39a7f698c4",
"text": ">$1,000 worth of electricity to generate The cost of Bitcoin always tracks the price of Bitcoin. There is a fixed amount of Bitcoin available to be mined every day. The cost to mine bitcoin rises because of competition (they increase the difficulty of the problems to maintain a fixed supply of Bitcoin). The electricity cost to mine Bitcoin is directly related to the amount of miners, which is directly related to the current cost of Bitcoin. More people want to mine when the price is high. If you really think about it, what you are really saying is that the intrinsic value of bitcoin is the value of Bitcoin. Its a completely circular mirage.",
"title": ""
},
{
"docid": "95849db2b91d8a1f2973c952c3b7651a",
"text": "Part of the value of bitcoin is indeed in speculation about its future. Will it be a store of value, like gold is? Will it be *the* medium of exchange for online and offline transactions? Will it be a representation and insurance for services (to be) rendered? It currently most resembles the first, but don't forget that bitcoin is still in its infancy. There's a lot of room for it to grow, and the technology behind it *can* grow.",
"title": ""
},
{
"docid": "bb9d15f23da11e1c1e89effd602bfcec",
"text": "Can someone please explain how this is not the definition of a Ponzi scheme? Bitcoin has a $100B market cap. This is a financial instrument with very little real value to either consumers or businesses. However, Bitcoin has experienced a meteoric rise in value as more and more people buy in. Is the bottom not going to fall out here?",
"title": ""
},
{
"docid": "9320140934a24403d41e217d806ab81a",
"text": "I know I'm late to the party, but a couple of rebuttals as a recent bitcoin advocate. I may be out of place in this subreddit as I come from a primarily technological background, not a financial one. > Bittcoin is not a currency, it's a store of value, because it is not widely accepted as tender by most people. Bitcoin is not a currency *yet*, but because it does not have widespread adoption *yet*. Like other revolutionary technologies, there is an [inflection point](https://medium.com/@mcasey0827/speculative-bitcoin-adoption-price-theory-2eed48ecf7da) where adoption goes from hardly anyone to almost everyone very quickly. [Example chart](https://cdn-images-1.medium.com/max/1600/0*E4eb7wxHinGNdYQq.) >Even as a store of value, it's not very good. It's volatile and the fact that there is a limited supply of bitcoin is not a good thing. Sure, in the short run it results in speculation that drives up the price of a coin and makes it all the rage among gamblers but I don't think anyone can explain how, if used on a larger scale, wouldn't lead to deflation in the price of goods. To me, this is basic supply and demand, and it would in theory become less volatile and more stable following mass adoption. Bitcoin has virtually no inflation, and I agree that this could lead to the deflation of goods, but only insofar as that valuation is determined in bitcoin. For example, milk is still $2, but as the value of bitcoin fluctuates, I may pay .001 BTC or .0005 BTC for that milk. It's important to remember we're dealing with a digital asset in an increasingly more digitized world, a point-of-sale device like we use for credit cards could certainly tackle that conversion in the future. >Also, at the end of the day, fiat currencies are based on trust and accountability of the government. How does Bitcoin or any other online currency solve that problem? There's no accountability, and it effectively acts as as an anti-currency, fueled by mistrust in the establishment. This is the best part of bitcoin, understanding the incentives. If you follow that supply and demand logic, then it is in the best interest of *everyone who uses bitcoin* that the bitcoin software and the system itself be reliable and secure. The software is open source so anyone can see how it works and where its flaws and weaknesses are - and it is still standing strong after 8 years. The biggest weakness so far has been in software updates and changes to the core protocol. Without any central structure (i.e. accountability) it can be slow to reach a democratic consensus is such a way that doesn't split the blockchain or fracture the network. This has led to some of the recent extreme volatility. Bitcoin (and some other cryptocurrencies) have tremendous potential to disrupt existing financial institutions. The private blockchains peddled by banks are at this point [just databases](https://www.youtube.com/watch?v=SMEOKDVXlUo&index=2&list=LL7mI3EyFeE83Ac-VtxNUhxA). At some point, these institutions will realize that they can't create their own Facebook, they need to find ways to become part of the new Facebook market.",
"title": ""
},
{
"docid": "f39d6047af5c4f9ebfafb0c99c198907",
"text": "\"Bittcoin is not a currency, it's a store of value, because it is not widely accepted as tender by most people. Even as a store of value, it's not very good. It's volatile and the fact that there is a limited supply of bitcoin is not a good thing. Sure, in the short run it results in speculation that drives up the price of a coin and makes it all the rage among gamblers but I don't think anyone can explain how, if used on a larger scale, wouldn't lead to deflation in the price of goods. Also, at the end of the day, fiat currencies are based on trust and accountability of the government. How does Bitcoin or any other online currency solve that problem? There's no accountability, and it effectively acts as as an anti-currency, fueled by mistrust in the establishment. What do you mean, \"\"cryptocurrencies are growing hundreds of times faster than the market as a whole\"\"?\"",
"title": ""
},
{
"docid": "a9a36dad5328565bc5ddca2e2b3bcdb6",
"text": "\"The relative value of Gold (or any other commodity) as measured against any given currency (such as the USD), is not a constant function either. If you have inflationary pressure, the \"\"value\"\" of an ounce of gold (or barrel of oil, etc) may \"\"double\"\", but it's really because the underlying comparator has lost \"\"half\"\" its value.\"",
"title": ""
},
{
"docid": "b5e06ae5797a21d78982d8329f0a8175",
"text": "\"A good reference to what encompasses \"\"securities\"\" are detailed in the Securities Act of 1933, which was enacted by the United States federal government. One main exception, which I would still consider securities for your purposes, would be \"\"commercial paper\"\". These are exempt from the securities act because they mature in 270 days of less, but they function much like bonds or promissory notes Therefore though, it would not encompass currencies and commodities. It really comes down to the structure of the agreement for transferring or holding the particular kind of underlying asset.\"",
"title": ""
},
{
"docid": "ab8e2c4f62e90b429e52348b090e65d3",
"text": "\"First of all, metals are commodities. So if you're phrasing that as metals and/or commodities, then that's poorly worded. If you're phrasing that as \"\"metal commodity reports\"\" then say as such. Second, and more importantly: what commodities? Power is very different than coffee. Different places specialize in different things, all banks are good in some and weak in others. There's no generic \"\"commodity\"\" market but rather a huge range of specifically different products traded in the future.You learn more than a small fraction of this universe so pick one or two specific products from the macro buckets (i.e. energy, grains, metals) and focus on those.\"",
"title": ""
},
{
"docid": "0020f28be04149c2e9ad46da4ab8aaa7",
"text": "This isn't an article discussing the business aspects of bitcoin. It's a comment on the price movement of bitcoin. Do we regularly comment about the gyrations of commodities and currencies on this thread? I tend to find talk of those things on subs like /r/finance and /r/investing.",
"title": ""
},
{
"docid": "379efa836cc7a4c7502ea05e87ecfafc",
"text": "Currencies don't have intrinsic value. Just because you have to pay taxes in USD does not mean it has intrinsic value. The government could theoretically switch currency every second, not that that will ever happen. But yes the USD is supported by the US government and that's like a safety net for the value of the USD. Bitcoin doesn't have a government accepting bitcoin in taxes (except maybe liberland or something) so BTC doesn't have that safenet. But with such a liquid market and millions of buyorders bitcoin doesn't really need a safenet. There will always be demand. I prefer a scarce currency with growing demand than an inflationary currency backed by a corrupt government that loses value over time.",
"title": ""
},
{
"docid": "d2cac70eed45ceaa9d24925004cef85f",
"text": "\"This is the best tl;dr I could make, [original](http://www.cnbc.com/2017/07/07/strategist-tom-lee-weighs-sees-bitcoin-going-as-high-as-55000.html) reduced by 80%. (I'm a bot) ***** > The strategist&#039;s case for bitcoin is a basic supply-and-demand story, similar to the argument other proponents of bitcoin use when playing up its future as &quot;Digital gold.\"\" > While the lack of regulation is what has attracted many buyers, many consider bitcoin the &quot;Wild West.&quot; Three years ago, Mt. Gox, the largest bitcoin exchange then, filed for bankruptcy and said it lost 750,000 of its users bitcoins and 100,000 of the exchange&#039;s own. > Lee acknowledged bitcoin&#039;s volatility in his report, noting that annualized bitcoin volatility is 75 percent, &quot;Substantially higher than gold&#039;s 10%. But as noted, gold&#039;s volatility approached 90% from 1971 to 1980 as the U.S. abandoned the gold standard - hence, we expect this to improve over time.\"\" ***** [**Extended Summary**](http://np.reddit.com/r/autotldr/comments/6lved5/first_major_wall_street_strategist_weighs_in_on/) | [FAQ](http://np.reddit.com/r/autotldr/comments/31b9fm/faq_autotldr_bot/ \"\"Version 1.65, ~161687 tl;drs so far.\"\") | [Feedback](http://np.reddit.com/message/compose?to=%23autotldr \"\"PM's and comments are monitored, constructive feedback is welcome.\"\") | *Top* *keywords*: **bitcoin**^#1 **Lee**^#2 **currency**^#3 **digital**^#4 **gold**^#5\"",
"title": ""
},
{
"docid": "51a6ca6a32a72b6063be3ac0e7c42d47",
"text": "\"Alright, so this is all out of the way. As a further note, I have a degree in computer science so I'm not oblivious to the technical aspects of bitcoin. I reject the idea that banning bitcoin is akin to banning the internet - in fact, I reject the notion that bitcoin is anywhere as revolutionary as \"\"the internet\"\" was (which itself, as a construct, is far older than most people let on). I've always acknowledged that there are many innovative technical aspects to bitcoin which are likely to find their way into our current system of money and transactions. The reality, however, goes back to my original contentions - that bitcoin is difficult (if not nearly impossible) to track, and thus serves as a black-market vehicle for those who wish to transact outside the power of the government. Whether or not you see this as \"\"good\"\" or \"\"bad\"\" doesn't matter; \"\"the government\"\" within any defined national border is the plenary power - period - and thus (for lack of a better phrase) \"\"resistance is mostly futile.\"\"\"",
"title": ""
},
{
"docid": "98327dbb386c1a738abe97f050ef7ca7",
"text": "There are forums online (Wall Street Oasis, Poets and Quants) that cover what you need to know for a Wall Street interview. That's the most efficient way. But it's also important to research the company that you're interviewing for. Do they invest in equity or debt? Are they in a specialized industry (e.g., real estate, oil & gas)? A model for a equity research firm is going to have different priorities from a LBO model for a private equity firm or a cash flow model for a bank/lending company.",
"title": ""
}
] |
fiqa
|
4172f2bea545dd229dcc9a69866d0abf
|
S-Corp and distributions
|
[
{
"docid": "49b16b6e3edc3ebf47f9e78c863c098a",
"text": "Does the corporation need the money for its ongoing business? If so, don't transfer it. If not, feel free. This decision has nothing to do with whether the corporation made money in any particular year.",
"title": ""
}
] |
[
{
"docid": "2948cd0e63af02de801485656a7996bc",
"text": "\"Tax US corporate \"\"persons (citizens)\"\" under the same regime as US human persons/citizens, i.e., file/pay taxes on all income earned annually with deductions for foreign taxes paid. Problem solved for both shareholders and governments. [US Citizens and Resident Aliens Abroad - Filing Requirements](https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad-filing-requirements) >If you are a U.S. citizen or resident alien living or traveling outside the United States, **you generally are required to file income tax returns, estate tax returns, and gift tax returns and pay estimated tax in the same way as those residing in the United States.** Thing is, we know solving this isn't the point. It is to misdirect and talk about everything, but the actual issues, i.e., the discrepancy between tax regimes applied to persons and the massive inequality it creates in tax responsibility. Because that would lead to the simple solutions that the populace need/crave. My guess is most US human persons would LOVE to pay taxes only on what was left AFTER they covered their expenses.\"",
"title": ""
},
{
"docid": "b8fded8029447d6371ae0dc5bccd7432",
"text": "Withdrawals from a traditional 401(k) plan are always treated as cash income and the taxable portion is taxed at ordinary income tax rates, even if the money was held in stocks within the 401(k) plan and the amount withdrawn is equal to whatever capital gains you made by selling the stock within the 401(k) plan. If your plan permits you to take the distribution as stock shares (transferred to your taxable brokerage account), then, for tax purposes, it is treated as if you took a distribution of cash equal to the market price of the shares as of the day of the distribution and promptly bought the same number of shares in your brokerage account. And yes, if the 401(k) plan assets in your ex-employer's plan consists solely of pretax contributions and the earnings thereon, then the entire distribution is ordinary taxable income regardless of whether you sold the stock within the 401(k) plan or took a distribution of stock from the plan and promptly (or after a few days) sold it. The capital gains or losses (if any) from such a sale are, of course, outside the 401(k) plan and taxable accordingly. Finally, the 10% penalty for premature withdrawal from a traditional 401(k) will also apply if you are not 59.5 years of age or older (or maybe 55 since you are separated from service), and it will be computed on the entire distribution.",
"title": ""
},
{
"docid": "f4303dc4fdce909f8af8b9e3d983cc1f",
"text": "Because the distribution date was APR 21, 2011, THAT should be the correct date for ascertainng the stock prices of the GM stock and warrants. The subsequent distributions after April should also be allocated in accordance with their distribution dates, with tax basis being reduced from the original APR 21st date's allocations, and reallocated to those subsequent distributions, taking into account any interim sales you might have made.",
"title": ""
},
{
"docid": "57390fc75c7c0b3a47269f7ea8e90c07",
"text": "\"If you have an S-Corp with several shareholders - you probably also have a tax adviser who suggested using S-Corp to begin with. You're probably best off asking that adviser about this issue. If you decided to use S-Corp for multiple shareholders without a professional guiding you, you should probably start looking for such a professional, or you may get yourself into trouble. That said, and reminding you that: 1. Free advice on the Internet is worth exactly what you paid for it, and 2. I'm not a tax professional or tax adviser, you should talk to a EA/CPA licensed in your state, here's this: Generally S-Corps are disregarded entities for tax purposes and their income flows to their shareholders individual tax returns through K-1 forms distributed by the S-Corp yearly. The shareholders don't have to actually withdraw the profits, but if not withdrawing - they're added to their cost bases in the shares. I'm guessing your corp doesn't distribute the net income, but keeps it on the corporate account, only distributing enough to cover the shareholders' taxes on their respective income portion. In this case - the amount not distributed is added to their basis, the amount distributed has already been taxed through K-1. If the corporation distributes more than the shareholder's portion of net income, then there can be several different choices, depending on the circumstances: The extra distribution will be treated as salary to the shareholder and a deduction to the corporation (i.e.: increasing the net income for the rest of the shareholders). The extra distribution will be treated as return of investment, reducing that shareholder's basis in the shares, but not affecting the other shareholders. If the basis is 0 then it is treated as income to the shareholder and taxed at ordinary rates. The extra distribution will be treated as \"\"buy-back\"\" - reducing that shareholder's ownership stake in the company and reallocating the \"\"bought-back\"\" portion among the rest of the shareholders. In this case it is treated as a sale of stock, and the gain is calculated as with any other stock sale, including short-term vs. long-term taxation (there's also Sec. 1244 that can come in handy here). The extra distribution will be treated as dividend. This is very rare for S-Corp, but can happen if it was a C-Corp before. In that case it will be taxed as dividends. Note that options #2, #3 and #4 subject the shareholder to the NIIT, while option #1 subjects the shareholder to FICA/Self Employment tax (and subjects the company to payroll taxes). There might be other options. Your licensed tax adviser will go with you through all the facts and circumstances and will suggest the best way to proceed.\"",
"title": ""
},
{
"docid": "71d5097054e25bcf177dfa43b19c737c",
"text": "Ok, so here's the strategy I decided to go with in the meantime: Allocate E1 to A_corp and E3 to A_ira. Here are my considerations which I assume at this stage to be right:",
"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": "789c6ee5519a98310ca80232d15d7573",
"text": "\"S-Corp is a corporation. I.e.: you add a \"\"Inc.\"\" or \"\"Corp.\"\" to the name or something of that kind. \"\"S\"\" denotes a specific tax treatment which may change during the lifetime of the corporation. It doesn't refer to a legal status.\"",
"title": ""
},
{
"docid": "da9ecf6147e0082b20047381cdb41141",
"text": "\"There are no dividends from S-Corp. There are distributions. Big difference. S-Corps fill form 1120S and schedule K-1 per shareholder. In the schedule all the income of your S-Corp will be assigned to various categories that you will later copy to your personal tax return as your personal income. It is not dividend income. The reason people prefer to take distributions from their S-Corps instead of salary is because you don't pay SE taxes on the distributions. That is also the reason why the IRS forces you to pay yourself a reasonable salary. But the tax rate on the income, all of it, is your regular income tax rate, unless the S-Corp income is categorized in a preferred category. The fact that its an S-Corp income doesn't, by itself, allow any preferential treatment. If you're learning the stuff as you go - you should probably get in touch with a tax professional to advise you. All the S-Corp income must be distributed. Its not a matter of \"\"avoiding paying the tax\"\", its the matter of \"\"you must do it\"\". Not a choice. My 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 (circ 230 disclaimer).\"",
"title": ""
},
{
"docid": "88ec8414da1e0a42a4da03f9edf304eb",
"text": "\"For MCD, the 47¢ is a regular dividend on preferred stock (see SEC filing here). Common stock holders are not eligible for this amount, so you need to exclude this amount. For KMB, there was a spin-off of Halyard Health. From their IR page on the spin-off: Kimberly-Clark will distribute one share of Halyard common stock for every eight shares of Kimberly-Clark common stock you own as of the close of business on the record date. The deal closed on 2014-11-03. At the time HYH was worth $37.97 per share, so with a 1:8 ratio this is worth about $4.75. Assuming you were able to sell your HYH shares at this price, the \"\"dividend\"\" in the data is something you want to keep. With all the different types of corporate actions, this data is extremely hard to keep clean. It looks like the Quandl source is lacking here, so you may need to consider looking at other vendors.\"",
"title": ""
},
{
"docid": "e23eda4b8b64a62749c8eb12447ab724",
"text": "\"Generally if you're a sole S-Corp employee - it is hard to explain how the S-Corp earned more money than your work is worth. So it is reasonable that all the S-Corp profits would be pouring into your salary. Especially when the amounts are below the FICA SS limits when separating salary and distributions are a clear sign of FICA tax evasion. So while it is hard to say if you're going to be subject to audit, my bet is that if you are - the IRS will claim that you underpaid yourself. One of the more recent cases dealing with this issue is Watson v Commissioner. In this case, Watson (through his S-Corp which he solely owned) received distributions from a company in the amounts of ~400K. He drew 24K as salary, and the rest as distributions. The IRS forced re-characterizing distributions into salary up to 93K (the then-SS portion of the FICA limit), and the courts affirmed. Worth noting, that Watson didn't do all the work himself, and that was the reason that some of the income was allowed to be considered distribution. That wouldn't hold in a case where the sole shareholder was the only revenue producer, and that is exactly my point. I feel that it is important to add another paragraph about Nolo, newspaper articles, and charlatans on the Internet. YOU CANNOT RELY ON THEM. You cannot defend your position against IRS by saying \"\"But the article on Nolo said I can not pay SE taxes on my earnings!\"\", you cannot say \"\"Some guy called littleadv lost an argument with some other guy called Ben Miller because Ben Miller was saying what everyone wants to hear\"\", and you can definitely not say \"\"But I don't want to pay taxes!\"\". There's law, there are legal precedents. When some guy on the Internet tells you exactly what you want to hear - beware. Many times when it is too good to be true - it is in fact not true. Many these articles are written by people who are interested in clients/business. By the time you get to them - you're already in deep trouble and will pay them to fix it. They don't care that their own \"\"advice\"\" got you into that trouble, because it is always written in generic enough terms that they can say \"\"Oh, but it doesn't apply to your specific situation\"\". That's the main problem with these free advice - they are worth exactly what you paid for them. When you actually pay your CPA/Attorney - they'll have to take responsibility over their advice. Then suddenly they become cautious. Suddenly they start mentioning precedents and rulings telling you to not do things. Or not, and try and play the audit roulette, but these types are long gone when you get caught.\"",
"title": ""
},
{
"docid": "5ee5f967f040a013fe5a5188ca5f7d40",
"text": "Capital gain distribution is not capital gain on sale of stock. If you have stock sales (Schedule D) you should be filing 1040, not 1040A. Capital gain distributions are distributions from mutual funds/ETFs that are attributed to capital gains of the funds (you may not have actually received the distribution, but you still may have gain attributed to you). It is reported on 1099-DIV, and if it is 0 - then you don't have any. If you sold a stock, your broker should have given you 1099-B (which is not the same as 1099-DIV, but may be consolidated by your broker into one large PDF and not provided separately). On 1099-B the sales proceeds are recorded, and if you purchased the stock after 2011 - the cost basis is also recorded. The difference between the proceeds and the cost basis is your gain (or loss, if it is negative). Fees are added to cost basis.",
"title": ""
},
{
"docid": "4bf9c168d813c28cba490998fef20d5e",
"text": "\"Be careful of the other answers here. Many are wrong or partially wrong. The question implies that you knew this, but for everyone else's benefit, you can keep you LLC organization and still elect to be treated as a S-Corp by the IRS just for tax purposes. You do this by filing Form 2553 with the IRS. (You can also, by the way, elect to be taxed as a \"\"regular\"\" C-Corp if you want, although that's probably not advantageous. See Form 8832.) The advantage of electing to be treated as an S-Corp is that income beyond what constitutes a \"\"reasonable salary\"\" are not subject to social security and medicare taxes as they would when paid was wages or counted as self-employment income on Schedule C. Depending on what you need to pay yourself to meet the \"\"reasonable salary\"\" test, your overall income, and other factors about your business, this could result in tax savings. Contrary to other answers here, making this election will not force you to create a board of directors. You are still an LLC for all purposes except taxes, so whatever requirements you had in organization and governance at the state level will not change. You will have to file a \"\"corporate\"\" tax return on Form 1120S (and likely some corresponding state tax form), so that is additional paperwork, but this \"\"corporate\"\" return does not mean the S-Corp pays taxes itself. With a couple of exceptions, the S-Corp pays no taxes directly (and therefore does not pay at the corporate tax rate). Instead the S-Corp apportions its income, expenses, and deductions to the owner(s) on Schedule K. The owners get their portion reported from the S-Corp on Schedule K1 and then include that on their personal Form 1040 to pay tax at their personal rate. In addition to filing Form 1120S, you will have to handle payroll taxes, which will create some additional administrative work and/or cost. Using a payroll service for this will likely be your best option and not terribly expensive. You've also got the issue of determining your reasonable salary within the rules, which is the subject of other questions on this site and other IRS guidance.\"",
"title": ""
},
{
"docid": "4b673df4129fb2dab004b655c4a601aa",
"text": "No. As a rule, the dividends you see in the distribution table are what you'll receive before paying any taxes. Tax rates differ between qualified and unqualified/ordinary dividends, so the distribution can't include taxes because tax rates may differ between investors. In my case I hold it in an Israeli account but the tax treaty between our countries still specifies 25% withheld tax This is another example of why tax rates differ between investors. If I hold SPY too, my tax rate will be very different because I don't hold it in an account like yours, so the listed dividend couldn't include taxes.",
"title": ""
},
{
"docid": "fe9092bd89d9397b81899948937ce3bc",
"text": "Shareholder's Equity consists of two main things: The initial capitalization of the company (when the shares were first sold, plus extra share issues) and retained earnings, which is the amount of money the company has made over and above capitalization, which has not been re-distributed back to shareholders. So yes, it is the firm's total equity financing-- the initial capitalization is the equity that was put into the company when it was founded plus subsequent increases in equity due to share issues, and retained earnings is the increase in equity that has occurred since then which has not yet been re-distributed to shareholders (though it belongs to them, as the residual claimants). Both accounts are credited when they increase, because they represent an increase in cash, that is debited, so in order to make credits = debits they must be credits. (It doesn't mean that the company has that much cash on hand, as the cash will likely be re-invested). Shareholder's Equity is neither an asset nor a liability: it is used to purchase assets and to reduce liabilities, and is simply a measure of assets minus liabilities that is necessary to make the accounting equation balance: Since the book value of stocks doesn't change that often (because it represents the price the company sold it for, not the current value on the stock market, and would therefore only change when there were new share issues), almost all changes in total assets or in total liabilities are reflected in Retained Earnings.",
"title": ""
},
{
"docid": "8d1b6d0e815236cc2d30689a315ddbe6",
"text": "You report what you contributed (sum of monthly investments that you made) to the bond fund. Distributions are the earnings in the account that stay in the account and have no tax consequences (in particular, you don't report them as income on your tax returns) until you withdraw the money later.",
"title": ""
}
] |
fiqa
|
5b4a7108996e36619a5074cd47c2842e
|
In what cases can states tax non-residents?
|
[
{
"docid": "9e54f8026b89f25711e7092dcbbaf3e1",
"text": "From the Massachusetts Department of Revenue: 1st - Massachusetts Source Income That is Excluded Massachusetts gross income excludes certain items of income derived from sources within Massachusetts: non-business related interest, dividends and gains from the sale or exchange of intangibles, and qualified pension income. 2nd - Massachusetts Source Income That is Included: Massachusetts gross income includes items of income derived from sources within Massachusetts. This includes income: 3rd - Trade or business, Including Employment Carried on in Massachusetts: A nonresident has a trade or business, including any employment carried on in Massachusetts if: A nonresident generally is not engaged in a trade or business, including any employment carried on in Massachusetts if the nonresident's presence for business in Massachusetts is casual, isolated and inconsequential. A nonresident's presence for business in Massachusetts will ordinarily be considered casual, isolated and inconsequential if it meets the requirements of the Ancillary Activity Test (AAT) and Examples. When nonresidents earn or derive income from sources both within Massachusetts and elsewhere, and no exact determination can be made of the amount of Massachusetts source income, an apportionment of income must be made to determine that amount considered Massachusetts gross income. 4th - Apportionment of Income: Apportionment Methods: The three most common apportionment methods used to determine Massachusetts source income are as follows: Gross income is multiplied by a: So if you go to Massachusetts to work, you have to pay the tax. If you collect a share of the profit or revenue from Massachusetts, you have to pay tax on that. If you work from Oregon and are paid for that work, then you don't pay Massachusetts tax on that. If anything, your company might have to pay Oregon taxes on revenue you generate (you are their agent or employee in Oregon). Does the answer change depending on whether the income is reported at 1099 or W-2? This shouldn't matter legally. It's possible that it would be easier to see that the work was done in Oregon in one or the other. I.e. it doesn't make any legal difference but may make a practical difference. All this assumes that you are purely an employee or contractor and not an owner. If you are an owner, you have to pay taxes on any income from your Massachusetts business. Note that this applies to things like copyrights and real estate as well as the business. This also assumes that you are doing your work in Oregon. If you live in Oregon and travel to Massachusetts to work, you pay taxes on your Massachusetts income in Massachusetts.",
"title": ""
}
] |
[
{
"docid": "43cc8bc27d099e616f7caa21a347e45a",
"text": "No state taxes, but Italy also has a favorable treaty with the US Federal Government. Look into to lowering your federal taxes to 5% ;) its a thick read, http://www.irs.gov/businesses/international/article/0,,id=169601,00.html and also try to determine if the Foreign Earned Income Exclusion applies to you, reducing your Federal tax to ZERO on the first $95,100 earned abroad. http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html but then you may be subject to a 20%+ italy tax. so maybe you should just try for the tax treaty",
"title": ""
},
{
"docid": "4a89404183a0ad268890174c0623c23d",
"text": "This question came up again (Living in Florida working remotely - NY employer withholds NYS taxes - Correct or Incorrect?) and the poster on the new version didn't find the existing answers to be adequate, so I'm adding a new answer. NYS will tax this income if the arrangement is for the convenience of the employee. If the arrangement is necessary to complete the work, then you should have no NYS tax. New York state taxes all New York-source salary and wage income of nonresident employees when the arrangement is for convenience rather than by necessity (Laws of New York, § 601(e), 20 NYCRR 132.18). Source: http://www.journalofaccountancy.com/issues/2009/jun/20091371.html Similar text can also be found here: http://www.koscpa.com/newsletter-article/state-tax-consequences-telecommuting/ The NYS tax document governing this situation seems to be TSB-M-06(5)I. I looked at this page from NYS that was mentioned in the answer by @littleadv. That language does at first glance seem to lead to a different answer, but the ruling in the tax memo seems to say that if you're out of state only for your convenience then the services were performed in NYS for NYS tax purpose. From the memo: However, any allowance claimed for days worked outside New York State must be based upon the performance of services which of necessity, as distinguished from convenience, obligate the employee to out-of- state duties in the service of his employer.",
"title": ""
},
{
"docid": "4f54cb2a890547946bb92bb2091023b4",
"text": "\"ECI is relevant to non-resident aliens who are engaged in trade or business in the US. For that, you have to be present in the US, to begin with, or to own a business or property in the US. So the people to whom it is relevant are non-resident aliens in the US or business/property owners, not foreign contractors. From the IRS: The following categories of income are usually considered to be connected with a trade or business in the United States. You are considered to be engaged in a trade or business in the United States if you are temporarily present in the United States as a nonimmigrant on an \"\"F,\"\" \"\"J,\"\" \"\"M,\"\" or \"\"Q\"\" visa. The taxable part of any U.S. source scholarship or fellowship grant received by a nonimmigrant in \"\"F,\"\" \"\"J,\"\" \"\"M,\"\" or \"\"Q\"\" status is treated as effectively connected with a trade or business in the United States. If you are a member of a partnership that at any time during the tax year is engaged in a trade or business in the United States, you are considered to be engaged in a trade or business in the United States. You usually are engaged in a U.S. trade or business when you perform personal services in the United States. If you own and operate a business in the United States selling services, products, or merchandise, you are, with certain exceptions, engaged in a trade or business in the United States. For example, profit from the sale in the United States of inventory property purchased either in this country or in a foreign country is effectively connected trade or business income. Gains and losses from the sale or exchange of U.S. real property interests (whether or not they are capital assets) are taxed as if you are engaged in a trade or business in the United States. You must treat the gain or loss as effectively connected with that trade or business. Income from the rental of real property may be treated as ECI if the taxpayer elects to do so.\"",
"title": ""
},
{
"docid": "7b6283d1a0db1485ca2d42467220e43e",
"text": "Prachi - While most non-resident aliens are not allowed to claim the standard deduction here are some exceptions: IRS Law under Article 21: ARTICLE 21 Payments Received by Students and Apprentices This falls under the U.S.A.-India Tax Treaty. Sources: I hope this helps. So, yes, I do believe you would be able to claim the standard deduction, although it's always good to check with a tax adviser.",
"title": ""
},
{
"docid": "b06cf61d9da1756b77f18ecfb634e214",
"text": "You do not need to report gifts from US residents (US citizens/green card holders/tax residents due to length of stay) since filing gift tax return is their responsibility. In case of foreigners you need to report gifts in excess of $100K. In any case, transfers between spouses are exempt from gift tax.",
"title": ""
},
{
"docid": "505e9b5d00c1c37a1fa0fc01c0688472",
"text": "No, if you are a nonresident alien, you cannot deduct sales tax. You can only deduct state income tax. 1040NR Schedule A (which is page 3 of 1040NR) does not contain an option for sales tax, like 1040 Schedule A does. If you are a resident alien, then you can deduct sales tax.",
"title": ""
},
{
"docid": "93fc4ef00f459bf1627f5af390b72a44",
"text": "Completely different. Canadians can be deemed non-residents by severing their residential ties with Canada and emigrating to another country, and no longer required to file unless they have certain sources of Canadian income. *See* http://travel.gc.ca/travelling/living-abroad/taxation No such classifications exist with US citizenship. You file a return no matter what, even if you haven't stepped foot in the US in decades.",
"title": ""
},
{
"docid": "dd4828eae5fcc94632df84f5418fc8fd",
"text": "\"Depends. If you can choose where to relocate to, then I second the \"\"no income tax\"\" states. But even of these chose wisely, some have no income taxes at all, others have taxes on some kinds of income. Some don't have neither individual nor corporate taxes, some tax businesses in some ways. Some compensate with higher property taxes, others compensate with higher sales taxes. On the other hand, you might prefer states with income taxes but no sales taxes. It can happen if your current income is going to be low, but you'll be spending your savings. If you don't have a choice (for example, your employer wants you to move closer to their office), then you're more limited. Still, you can use the tax break on moving expenses (read the fine print, there are certain employment requirements), and play with the state taxes (if you're moving to a state with less/no taxes - move earlier, if its the other way - move later). Check out for cities that have income taxes. In some states it cannot happen by law (for example, in California only the state is allowed to collect income taxes), in others it is very common (Ohio comes to mind). Many things to consider in New York. New York City has its own income tax (as well as Yonkers, as far as I remember these are the only ones in the State of New York). So if you want to save on taxes in NYS but live close to the city, consider White Plains etc. If you work in NYC its moot, you're going to pay city taxes anyway. That is also true if you live in NJ but work in the city, so tax-wise it may be more efficient not to live across state lines from your place of work.\"",
"title": ""
},
{
"docid": "da160fffe8072dca28be2c03e430316a",
"text": "There's virtually no way for a person to completely avoid taxation at some point in their lives. Between payroll, sales, excise, and the like, you've been taxed at some point. And whether or not the individual paid is irrelevant to the ownership claim being invalid.",
"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": "ed944c03c1e7096cb07630e758530dac",
"text": "Both states will want to tax you. Your tax home is where you maintain a domicile, are registered to vote, etc. and you will probably want to keep this as MA since you state that MA is your permanent residence and you are staying in a rented place in PA. But be careful about voter registration; that is one of the items that can be used to determine your state of residence. OK, so if you and your spouse are MA residents, you should file jointly as residents in MA and as nonresidents in PA. Do the calculations on the nonresident return first, and then the calculations on the resident return. Typically, on a nonresident tax return, the calculations are effectively the following: Report all your income (usually AGI from the Federal return). Call this $X. Compute the PA state tax due on $X. Note that you follow the rules for nonresidents in doing this, not the calculations used by PA residents. Call the amount of tax you computed as $Y. What part of the total income $X is attributable to PA sources? If this amount is $Z, then you owe PA $Y times (Z/X). On the resident return in MA, you will likely get some credit for the taxes paid to PA, and this will reduce your MA tax burden. Usually the maximum credit is limited to the lesser of actual tax paid to PA and what you would have had to pay MA for the same income. As far as withholding is concerned, your employer in PA will withhold PA taxes as if you are a PA resident, but you can adjust the amount via the PA equivalent of IRS Form W4 so as to account for any additional tax that might be due because you will be filing as a nonresident. Else you can pay estimated taxes via the PA equivalent of IRS Form 1040ES. Similarly, your wife can adjust her withholding to account for the MA taxes that you will owe on the joint income, or you can pay estimated taxes to MA too. Note that it is unlikely that your employer in Pennsylvania will withhold Massachusetts taxes (and send them to Massachusetts) for you, e.g. if it is a ma-and-pa store, but there may be special deals available if your employer does business in both states, i.e. is a MA-and-PA store.",
"title": ""
},
{
"docid": "6f99de8c7958c0d3021748790f921142",
"text": "Yes. Here's the answer to this question from oregon.gov: 3. I am moving into Oregon. What income will be taxed by Oregon? As an Oregon resident, you are taxed on ALL income regardless of the source of the income. This includes, but is not limited to: You may need to pay estimated taxes if you don't have Oregon withholding on your income.",
"title": ""
},
{
"docid": "de65a195799a90cbf017660532c71024",
"text": "Multistate Impact of the American Taxpayer Relief Act of 2012 In general, states with rolling conformity will follow this change. States with specific date conformity will continue to follow the date of conformity currently in effect and will not follow the change. A few states may have their own QSBS rules and will not conform to or be impacted by this provision of the Act. The chart that follows summarizes these principles as applied to the enumerated states: STATE: QSBS Exclusion Conformity: California statutes refer to the IRC QSBS provisions but modify and limit their applicability, and would not be impacted by this provision of the Act. However, California’s provisions were ruled unconstitutional in recent litigation and the California Franchise Tax Board has recently taken the position that gain exclusions and deferrals will be denied for all open tax years. Florida Florida does not impose an income tax on individuals and therefore this provision of the Act is inapplicable and will have no impact. Illinois Due to its rolling conformity, Illinois follows this provision of the Act. Because New York effectively provides for rolling conformity to the IRC, through reference to federal adjusted gross income as the state starting point, New York effectively follows this provision of the Act. Texas does not impose an income tax on individuals",
"title": ""
},
{
"docid": "5e749065a0f4b7021263d95af5976c0d",
"text": "I agree that double taxation makes no sense regardless of individual or corporation. Having said that, it's my understanding that Murca offers corporations tax credits on foreign taxes paid to avoid double taxation. I'm pretty sure that a similar vehicle exists for individuals as well. My issue is entirely with corporations paying off legislators to avoid taxes that they have an obligation to pay in the country that they operate.",
"title": ""
},
{
"docid": "23b0dfdbfbf5dd51940969b729167d69",
"text": "non-resident aliens to the US do not pay capital gains on US products. You pay tax in your home country if you have done a taxable event in your country. http://www.investopedia.com/ask/answers/06/nonusresidenttax.asp#axzz1mQDut9Ru but if you hold dividends, you are subject to US dividend tax. The UK-US treaty should touch on that though.",
"title": ""
}
] |
fiqa
|
f5a93c1bafe0831a70b23d6c123b5339
|
Is it possible to borrow money to invest in a foreign country?
|
[
{
"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": "a7b97f8d1e7cef7a371db32488ca1d52",
"text": "Yes it is possible. It would depend on Banks policies whether they would lend. Quite a few large corporations borrow money in one country for business needs in other country",
"title": ""
}
] |
[
{
"docid": "10ac79d2ac6be5c20574e7d20547be22",
"text": "\"You have a few correlated questions here: Yes you can. There are only a few investment strategies that require a minimum contribution and those aren't ones that would get a blanket recommendation anyway. Investing in bonds or stocks is perfectly possible with limited funds. You're never too young to start. The power of interest means that the more time you give your money to grow, the larger your eventual gains will be (provided your investment is beating inflation). If your financial situation allows it, it makes sense to invest money you don't need immediately, which brings us to: This is the one you have to look at most. You're young but have a nice chunk of cash in a savings account. That money won't grow much and you could be losing purchasing power to inflation but on the other hand that money also isn't at risk. While there are dozens of investment options1 the two main ones to look at are: bonds: these are fixed income, which means they're fairly safe, but the downside is that you need to lock up your money for a long time to get a better interest rate than a savings account index funds that track the market: these are basically another form of stock where each share represents fractions of shares of other companies that are tracked on an index such as the S&P 500 or Nasdaq. These are much riskier and more volatile, which is why you should look at this as a long-term investment as well because given enough time these are expected to trend upwards. Look into index funds further to understand why. But this isn't so much about what you should invest in, but more about the fact that an investment, almost by definition, means putting money away for a long period of time. So the real question remains: how much can you afford to put away? For that you need to look at your individual situation and your plans for the future. Do you need that money to pay for expenses in the coming years? Do you want to save it up for college? Do you want to invest and leave it untouched to inspire you to keep saving? Do you want to save for retirement? (I'm not sure if you can start saving via IRAs and the like at your age but it's worth looking into.) Or do you want to spend it on a dream holiday or a car? There are arguments to be made for every one of those. Most people will tell you to keep such a \"\"low\"\" sum in a savings account as an emergency fund but that also depends on whether you have a safety net (i.e. parents) and how reliable they are. Most people will also tell you that your long-term money should be in the stock market in the form of a balanced portfolio of index funds. But I won't tell you what to do since you need to look at your own options and decide for yourself what makes sense for you. You're off to a great start if you're thinking about this at your age and I'd encourage you to take that interest further and look into educating yourself on the investments options and funds that are available to you and decide on a financial plan. Involving your parents in that is sensible, not in the least because your post-high school plans will be the most important variable in said plan. To recap my first point and answer your main question, if you've decided that you want to invest and you've established a specific budget, the size of that investment budget should not factor into what you invest it in. 1 - For the record: penny stocks are not an investment. They're an expensive form of gambling.\"",
"title": ""
},
{
"docid": "638947ae1029dd877c240c92506276e6",
"text": "Are there banks where you can open a bank account without being a citizen of that country without having to visit the bank in person? I've done it the other way around, opened a bank account in the UK so I have a way to store GBP. Given that Britain is still in the EU you can basically open an account anywhere. German online banks for instance allow you to administrate anything online, should there be cards issued you would need an address in the country. And for opening an account a passport is sufficient, you can identify yourself in a video chat. Now what's the downside? French banks' online services are in French, German banks' services are in German. If that doesn't put you off, I would name such banks in the comments if asked. Are there any online services for investing money that aren't tied to any particular country? Can you clarify that? You should at least be able to buy into any European or American stock through your broker. That should give you an ease of mind being FCA-regulated. However, those are usually GDRs (global depository receipts) and denominated in GBp (pence) so you'd be visually exposed to currency rates, by which I mean that if the stock goes up 1% but the GBP goes up 1% in the same period then your GDR would show a 0% profit on that day; also, and more annoyingly, dividends are distributed in the foreign currency, then exchanged by the issuer of the GDR on that day and booked into your account, so if you want to be in full control of the cashflows you should get a trading account denominated in the currency (and maybe situated in the country) you're planning to invest in. If you're really serious about it, some brokers/banks offer multi-currency trading accounts (again I will name them if asked) where you can trade a wide range of instruments natively (i.e. on the primary exchanges) and you get to manage everything in one interface. Those accounts typically include access to the foreign exchange markets so you can move cash between your accounts freely (well for a surcharge). Also, typically each subaccount is issued its own IBAN.",
"title": ""
},
{
"docid": "0f61c2688a2b82bdbad6909bab943faf",
"text": "\"Yes, definitely. Many municipalities and local governments issue bonds to fund various projects (schools, hospitals, infrastructure, etc). You can buy these bonds and in that way invest in these things. In the US these kinds of bonds are tax-free, i.e.: the income they provide is not taxed (by the US government, may be taxed by your State, check local tax laws). There are also dedicated mutual funds that that is all they invest in, if you don't want to deal with picking individual bonds. As to mom-and-pop stores - that would not be as easy, as mom-and-pop stores are by definition family owned and you can invest in them only if you are personally acquainted with them. Instead, you can invest in small regional/local chains, that while not being mom-and-pop, still small enough to be considered \"\"local\"\", but are publicly traded so that you can easily invest in them. You'll have to look for these. You can also use social lending platforms, like Lending Club, which I reviewed on my blog, or others, where you can participate in a lending pool to other people. You can invest in a credit union by opening an account there. Credit unions are owned by their account holders.\"",
"title": ""
},
{
"docid": "d98a1a97eb6179caef1f1e5c9c6958c7",
"text": "\"Not at all impossible. What you need is Fundamental Analysis and Relationship with your investment. If you are just buying shares - not sure you can have those. I will provide examples from my personal experience: My mother has barely high school education. When she saw house and land prices in Bulgaria, she thought it's impossibly cheap. We lived on rent in Israel, our horrible apartment was worth $1M and it was horrible. We could never imagine buying it because we were middle class at best. My mother insisted that we all sell whatever we have and buy land and houses in Bulgaria. One house, for example, went from $20k to EUR150k between 2001 and 2007. But we knew Bulgaria, we knew how to buy, we knew lawyers, we knew builders. The company I currently work for. When I joined, share prices were around 240 (2006). They are now (2015) at 1500. I didn't buy because I was repaying mortgage (at 5%). I am very sorry I didn't. Everybody knew 240 is not a real share price for our company - an established (+30 years) software company with piles of cash. We were not a hot startup, outsiders didn't invest. Many developers and finance people WHO WORK IN THE COMPANY made a fortune. Again: relationship, knowledge! I bought a house in the UK in 2012 - everyone knew house prices were about to go up. I was lucky I had a friend who was a surveyor, he told me: \"\"buy now or lose money\"\". I bought a little house for 200k, it is now worth 260k. Not double, but pretty good money! My point is: take your investment personally. Don't just dump money into something. Once you are an insider, your risk will be almost mitigated and you could buy where you see an opportunity and sell when you feel you are near the maximal real worth of your investment. It's not hard to analyse, it's hard to make a commitment.\"",
"title": ""
},
{
"docid": "6470741c89540d9d5adea1af37740f9b",
"text": "\"I don't follow the numbers in your example, but the fundamental question you're asking is, \"\"If I can borrow money for a low cost, and if I think I can invest it and receive returns greater than that cost, should I do it?\"\" It doesn't matter where that money comes from, a mortgage that's bigger than it needs to be, a credit card teaser rate, or a margin line from your stock broker. The answer is \"\"maybe\"\" - depending on the certainty you have about the returns you'd receive on your investments and your tolerance for risk. Only you can answer that question for yourself. If you make less than your mortgage rates on the investments, you'll wish you hadn't! As an aside, I don't know anything about Belgian tax law, but in US tax law, your deductions can be limited to the actual value of the home. Your law may be similar and thus increase the effective mortgage interest rate.\"",
"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": "478cdde040cedfb6e01af7f6e8296744",
"text": "I looked into the investopedia one (all their videos are mazing), but that detail just was not clear to me, it also makes be wonder, if a country issues bonds to finance itself, what happens at maturity when literally millions of them need to be paid? The income needs to have grown to that level or it defaults? Wouldn't all the countries default if that was the case, or are bonds being issued to being able to pay maturity of older bonds already? (I'm freaking myself out by realizing this)",
"title": ""
},
{
"docid": "7526af225add390d4ab164b8fd1d35e2",
"text": "The best would be to find someone in that country to make a payment on behalf of you. Other option is to use remittance services like Western union. It allows transfers to bank Account in Poland. You can fund by debiting your Card or Bank Account in US. If you debit your Card, there may be some fees as it would be treated as Cash Advance.",
"title": ""
},
{
"docid": "74b29da71765c7cbe5d01f3f964e4834",
"text": "That's a broad question, but I can throw some thoughts at you from personal experience. I'm actually an Australian who has worked in a couple of companies but across multiple countries and I've found out first hand that you have a wealth of opportunities that other people don't have, but you also have a lot of problems that other people won't have. First up, asset classes. Real estate is a popular asset class, but unless you plan on being in each of these countries for a minimum of one to two years, it would be seriously risky to invest in rental residential or commercial real estate. This is because it takes a long time to figure out each country's particular set of laws around real estate, plus it will take a long time to get credit from the local bank institutions and to understand the local markets well enough to select a good location. This leaves you with the classics of stocks and bonds. You can buy stocks and bonds in any country typically. So you could have some stocks in a German company, a bond fund in France and maybe a mutual fund in Japan. This makes for interesting diversification, so if one country tanks, you can potentially be hedged in another. You also get to both benefit and be punished by foreign exchange movements. You might have made a killing on that stock you bought in Tokyo, but it turns out the Yen just fell by 15%. Doh. And to top this off, you are almost certainly going to end up filling out tax returns in each country you have made money in. This can get horribly complicated, very quickly. As a person who has been dealing with the US tax system, I can tell you that this is painful and the US in particular tries to get a cut of your worldwide income. That said, keep in mind each country has different tax rates, so you could potentially benefit from that as well. My advice? Choose one country you suspect you'll spend most of your life in and keep most of your assets there. Make a few purchases in other places, but minimize it. Ultimately most ex-pats move back to their country of origin as friends, family and shared culture bring them home.",
"title": ""
},
{
"docid": "e21d4c1386c08c5618e49b4a77c233f2",
"text": "\"Hmm... Maybe I somewhat misunderstood your question then. Yes, trade deficits/surpluses are really the core of the country-level \"\"investment\"\". But yes, it maters what they *do* with it, which is **why** so many countries put any excesses into US treasuries. Going back to \"\"personal\"\" finance, if they pay down higher interest debt with their trade surplus, *great*; if they have no debt and can issue local currency (in PF land, \"\"take out a loan\"\") for under 2%, *great*; If not... **Not** so great. \"\"Saving\"\" money that costs over 2% isn't an investment, it's nothing but a loan disguised as one.\"",
"title": ""
},
{
"docid": "3e3d6a2ce2c219ca85fe488f106792ae",
"text": "\"While you have asked for general principles, I am going to seize onto a specific example you gave in order to illustrate the difficulties here: Argentina. Argentina's bonds are probably not safer than US treasuries. Argentina is presently in the business of seizing foreign oil businesses (Repsol YPF) while championing leftist causes. At the very least this indicates an elevated level of political risk: S&P, which affirmed Argentina's ratings five notches into junk territory at B, said policies such as those enacted since the country's October presidential election could also weaken Argentina's macroeconomic framework and external liquidity... \"\"Actions of this type continue to shorten the economic planning horizon in the country and contribute to Argentina's deteriorating economic and political links with the international community.\"\" -- \"\"S&P Lowers Argentina Outlook To Negative\"\". The Wall Street Journal, 23 April 2012 You're not going to be able to capture that sort of a risk with raw budget numbers. It's hard enough to figure out creditworthiness for a business; for an entire nation it's even harder. That's why credit-rating firms, as faulty as they may be, employ dozens of people to try and figure this sort of thing out. Additionally, there is a currency risk associated with buying bonds denominated in foreign currencies. It doesn't matter much if $nation repays all its bonds if they have so much inflation that the repayment is worth half of what it used to be (nor is it much help if your own nation's currency rises in value while your investment's value is stable elsewhere). Ultimately the value of a bond is \"\"how much money am I actually going to get back?\"\" and while operating a budget surplus isn't a bad sign in and of itself, it's hardly the complete picture. A fair accounting of the relative creditworthiness of any two nations needs to unite two massive fields of study: Macroeconomics and Politics. It is possible that the right sort of degree in economics, risk management, or a similar field of study could prepare you to know exactly what sort of research is necessary to make a meaningful analysis. :) Now, if you just want some commentary on which bonds are safe to buy, ask a credit-rating agency -- for example, read Standard and Poor's sovereign ratings - or find a mutual fund which may invest in international bonds at its own discretion and have someone else make the decisions.\"",
"title": ""
},
{
"docid": "6fa8022f1a94860b18f850167f8bedd5",
"text": "\"Average return on the S&P500 over the last 10 years has been 1.6 %; so if you'd invested in that with money borrowed at 3 % you would have lost (so far). Investing with borrowed money implies you think you can beat the market: that you're a cleverer investor than whoever decided to lend you the money. Whoever decided to lend you the money decided that you are the best (return/risk ratio) investment for their money. It might make sense to invest borrowed money if you don't need to pay it back if things go wrong: if you're an investment professional whose bonus depends on the profit you make, but who won't need to repay any loss. It might also makes sense to borrow money if you're going to 'add value', e.g. sweat equity: for example if you use it to renovate a house or (if you're a business) to hire more staff. But the question was \"\"What guidelines do you use\"\" and the answer is, \"\"I don't make passive investments with borrowed money.\"\" My Dad did it, i.e. didn't repay his mortgage as soon as he could have: but that was because (back in the '70s) he had a long-term (government-sponsored) mortgage for about 1.5 % (designed to help first-time buyers or something like that), at a time when banks were paying higher interest rates on (ultra-safe) deposits.\"",
"title": ""
},
{
"docid": "8a1eeb8bc084a1d378814a548ab4109a",
"text": "Usually, you can buy ETFs through brokerages. I looked at London to see if there's any familiar brokerage names, and it appears that the address below is to Fidelity Investments Worldwide and their site indicates that you can buy securities. Any brokerage, in theory, should allow you to invest in securities. You could always call and ask if they allow you to invest in ETFs. Some brokerages may also allow you to purchase securities in other countries; for instance, some of the firms in the U.S. allow investors to invest in the ETF HK:2801, which is not a U.S. ETF. Many countries have ETF securities available to local and foreign investors. This site appears to help point people to brokers in London. Also, see this answer on this site (a UK investor who's invested in the U.S. through Barclays).",
"title": ""
},
{
"docid": "752e054a65d930d5a2efae595a2d3d62",
"text": "Are there any laws against doing this? so long as you are truthful in your application for the loan, none that I know of - technically you could use the loan to pay for school and the cash that you would have used instead to invest. Are there other reasons why this is a very bad idea? I think you've already identified the biggest one, but here are my reasons: Will you go broke or go to jail? Likely not, but there is significant risk in investing with borrowed money. You might come out ahead, but you might also lose a bundle. If you're willing to take that risk, that's your right, but I would not call it a good idea under any circumstances.",
"title": ""
},
{
"docid": "b1622d00b8e5930ff7cf8b02cd26ee96",
"text": "the best thing to do is file bankrupt. your credit will be shot for 7 to 10 years. however usually 3 years after the bankrupt people will give you small lines of credit. then you rebuild on the small credit lines. and never get into a bad loan again you learn from mistakes. there is no shame in a mistake if you learned from it. I rebuilt my credit by using fingerhut. small credit limit on a cap 1 credit card 300 dollars unsecured card. personal loan of 1500 dollars to buy a old clunk for a car as I did not want to have five years of car payments. you can also get a secured credit card. and build credit with that. the bank will explain how to build credit using your own money. also you should know a lot of banks like your bankrupt stat. because they no you cant file for several more years. meaning if you don't pay your loan they can garnish you and you cant file bankrupt. you can get a new car loan with good interest rate. by taking 5000 dollars of your 15000 dollars savings down on the new loan. making your new car loan have better payments cheaper and better interest. and get a secured credit card of 2000 to build towards a unsecured credit card. keep all your new credit tabs small and pay on time.i would not use all your nest egg savings. that is not smart. get a lawyer and file. stay in school you will have a fresh start and you learned about upside down loans. don't listen to people trying to tell you bankruptsy is bad. it in a lot of ways gives you the upper hand in a no win debt or debts.",
"title": ""
}
] |
fiqa
|
9eec5400b563f70a346ce2d94208848a
|
What are the tax guidelines for a Canadian freelancer working for a US company?
|
[
{
"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": "a30c7eb9e87bc88e5f6f9fef0e1ae22b",
"text": "\"I would suggest you pay quarterly. Or, if you prefer, do the extra withholding. Don't wait until the end of the year. My experience is that of having a day job with freelance work on the side. I've spent a few years just freelancing, and I paid quarterly as requested to avoid the penalties. Now that I have a good day job again, my freelancing is just a small part of my income, and so I end up with a net return and no longer have to pay quarterly. You shouldn't wait until the end of the year to pay. This is assuming your wife is bringing in a decent income. The only scenario where you would want to wait is if her income is only a small amount (such as my wife's plans for an Etsy store). To the IRS, it doesn't really make a difference whether you withhold extra or pay quarterly. Of those two choices, my preference is to pay quarterly - it's easy to set up calendar reminders on the quarterly payment dates, which are always the same. I did the same as bstpierre when estimating my payments: just take last year's tax (for the business) and divide by 4 (adjusting for any obvious situational differences). That's usually close enough. Paying quarterly instead of via withholding means you get to hold on to your money (on average) for 6 weeks longer. Granted, that doesn't mean much with today's interest rates, but it's something. You may prefer the simpler accounting for withholding, though - you can \"\"set and forget\"\".\"",
"title": ""
},
{
"docid": "a16a073fbef02fb2422c039375c8413b",
"text": "\"What would be the best strategy to avoid paying income taxes on the sale after I move to another US state? Leaving the US and terminating your US residency before the sale closes. Otherwise consider checking your home country's tax treaty with the US. In any case, for proper tax planning you should employ a licensed tax adviser - an EA, CPA or an attorney licensed in your State (the one you'd be when the sale closes). No-one else is legally allowed to provide you tax advice on the matter. Because the company abroad is befriended, I have control over when (and e.g. in how many chunks) the earnings of the sale flow into my LLC. So I can plan where I live when that money hits my US account. I'm not familiar with the term \"\"befriended\"\" in this context, but form what I understand your description - its a shell corporation under your own control. This means that the transfer of money between the corporation and your LLC is of no consequence, you constructively received the money when the corporation got it, not the LLC. Your fundamental misunderstanding is that there's importance to when the money hits your US bank account. This is irrelevant. The US taxes your worldwide income, so it is taxed when you earn it, not when you transfer it into the country (as opposed to some other countries, for example India or the UK). As such, in your current scheme, it seems to me that you're breaking the US tax law. This is my personal impression, of course, get a professional advice from a licensed tax professional as I defined earlier.\"",
"title": ""
},
{
"docid": "ca9561fce46ca68de2a189227d7c91b2",
"text": "\"ITR-4 is for incorporated business. For freelancing, You can fill ITR 2 and declare the freelancing income as \"\"income from other source\"\". Refer to the Income Tax website for more details\"",
"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": "b0c55747bc1f3a76ac6eb4c80269b2d5",
"text": "\"The other answer has mentioned \"\"factual resident\"\", and you have raised the existence of a U.S./Canada tax treaty in your comment, and provided a link to a page about determining residency. I'd like to highlight part of the first link: You are a factual resident of Canada for tax purposes if you keep significant residential ties in Canada while living or travelling outside the country. The term factual resident means that, although you left Canada, you are still considered to be a resident of Canada for income tax purposes. Notes If you have established ties in a country that Canada has a tax treaty with and you are considered to be a resident of that country, but you are otherwise a factual resident of Canada, meaning you maintain significant residential ties with Canada, you may be considered a deemed non-resident of Canada for tax purposes. [...] I'll emphasize that \"\"considered to be a resident of Canada for income tax purposes\"\" means you do need to file Canadian income tax returns. The Notes section does indicate the potential treaty exemption that you mentioned, but it is only a potential exemption. Note the emphasis (theirs, not mine) on the word \"\"may\"\" in the last paragraph above. Please don't assume \"\"may\"\" is necessarily favorable with respect to your situation. The other side of the \"\"may\"\" coin is \"\"may not\"\". The Determining your residency status page you mentioned in your comment says this: If you want the Canada Revenue Agency's opinion on your residency status, complete either Form NR74, Determination of Residency Status (Entering Canada) or Form NR73, Determination of Residency Status (Leaving Canada), whichever applies, and send it to the International and Ottawa Tax Services Office. To get the most accurate opinion, provide as many details as possible on your form. So, given your ties to Canada, I would suggest that until and unless you have obtained an opinion from the Canada Revenue Agency on your tax status, you would be making a potentially unsafe assumption if you yourself elect not to file your Canadian income tax returns based on your own determination. You could end up liable for penalties and interest if you don't file while you are outside of Canada. Tax residency in Canada is not a simple topic. For instances, let's have a look at S5-F1-C1, Determining an Individual’s Residence Status. It's a long page, but here's one interesting piece: 1.44 The Courts have stated that holders of a United States Permanent Residence Card (otherwise referred to as a Green Card) are considered to be resident in the United States for purposes of paragraph 1 of the Residence article of the Canada-U.S. Tax Convention. For further information, see the Federal Court of Appeal's comments in Allchin v R, 2004 FCA 206, 2004 DTC 6468. [...] ... whereas you are in the U.S. on a TN visa, intended to be temporary. So you wouldn't be exempt just on the basis of your visa and the existence of the treaty. The CRA would look at other circumstances. Consider the \"\"Centre of vital interests test\"\": Centre of vital interests test [...] “If the individual has a permanent home in both Contracting States, it is necessary to look at the facts in order to ascertain with which of the two States his personal and economic relations are closer. Thus, regard will be had to his family and social relations, his occupations, his political, cultural or other activities, his place of business, the place from which he administers his property, etc. The circumstances must be examined as a whole, but it is nevertheless obvious that considerations based on the personal acts of the individual must receive special attention. If a person who has a home in one State sets up a second in the other State while retaining the first, the fact that he retains the first in the environment where he has always lived, where he has worked, and where he has his family and possessions, can, together with other elements, go to demonstrate that he has retained his centre of vital interests in the first State.” [emphasis on last sentence is mine] Anyway, I'm acquainted with somebody who left Canada for a few years to work abroad. They assumed that living in the other country for that length of time (>2 years) meant they were non-resident here and so did not have to file. Unfortunately, upon returning to Canada, the CRA deemed them to have been resident all that time based on significant ties maintained, and they subsequently owed many thousands of dollars in back taxes, penalties, and interest. If it were me in a similar situation, I would err on the side of caution and continue to file Canadian income taxes until I got a determination I could count on from the people that make the rules.\"",
"title": ""
},
{
"docid": "d96a217cfd999cfcfdccb979a8068a15",
"text": "\"Q) Will I have to submit the accounts for the Swiss Business even though Im not on the payroll - and the business makes hardly any profit each year. I can of course get our accounts each year - BUT - they will be in Swiss German! You will have to submit on your income from the business. The term \"\"partnership\"\" refers to a specific business entity type in the U.S. I'm not sure if you're using it the same way. In a partnership in the U.S. you pay income tax on your share of the partnership's income whether or not you actually receive income in your personal account. There's not enough information here to know if that applies in your case. (In the U.S., the partnership itself does not pay income tax - It is a \"\"disregarded entity\"\" for tax purposes, with the tax liability passed through to the partners as individuals.) Q) Will I need to have this translated!? Is there any format/procedure to this!? Will it have to be translated by my Swiss accountants? - and if so - which parts of the documentation need to be translated!? As regards language, you will file a tax return on a U.S. form presumably in English. You will not have to submit your account information on any other form, so the fact that your documentation is in German does not matter. The only exception that comes to mind is that you could potentially get audited (just like anyone else filing taxes in the U.S.) in which case you might need to produce your documentation. That situation is rare enough that I wouldn't worry about it though. I'm not sure if they'd take it in German or force you to get a translation. I was told that if I sell the business (and property) after I aquire a greencard - that I will be liable to 15% tax of the profit I'd made. I also understand that any tax paid (on selling) in Switzerland will be deducted from the 15%!? Q) Is this correct!? The long-term capital gains rate is 15% for most people. (At very high incomes it is 20%.) It sounds like you would qualify for long-term (held for greater than 1 year) capital gains in this case, although the details might matter. There is a foreign tax credit, but I'm not completely sure if it would apply in this case. (If forced to guess, I would say that it does.) If you search for \"\"foreign tax credit\"\" and \"\"IRS\"\" you should get to the information that you need pretty quickly. I will effectively have ALL the paperwork for this - as we'll need to do the same in Switzerland. But again, it will be in Swiss German. Q) Would this be a problem if its presented in Swiss German!? Even in this case you will not need to submit any of your paperwork to the IRS, unless you get audited. See earlier comments.\"",
"title": ""
},
{
"docid": "aa6ac06db3552d08eda4e4d6ff3339b3",
"text": "Your freelance income will not qualify you for the work-from-home deductions, for that you would need a T2200 form signed by your employer. But, you are allowed to be self employed as a sole-proprietorship while still being an employee of another company. If you take that route, you'll be able to write-off even more expenses than those you linked to. Things like a portion of your internet bill can be claimed, for example. But note that these deductions would only apply to offset the self-employment income, so if you're not earning very much from the freelance work, it might not be worth all the hassle. Filing taxes when self-employed is definitely more complicated, and many people will get professional tax preparation help - at least for the first time.",
"title": ""
},
{
"docid": "e66da98d366e13d9534abe2af2536c82",
"text": "$60-$100 US is typical for US 1099 contract IT work, but it varies quite a bit by location and industry. Contract agencies can charge more (sometimes significantly more), but you probably don't have the clout to ask for rates that are on par with those. $85 per hour might be a good starting point. Here are some factors to consider: I am not qualified to comment on the Canadian vs US legal and tax aspects fo your situation. Good luck",
"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": "8fe6f7a9cad2f4520ed898b0c39b47ba",
"text": "\"I assume your employer does standard withholding? Then what you need to do is figure what bracket that puts you in after you've done all your normal deductions. Let's say it's 25%. Then multiply your freelance income after business expenses, and that's your estimated tax, approximately. (Unless the income causes you to jump a bracket.) To that you have to add approximately 12-13% Social Security/Medicare for income between the $90K and $118,500. Filling out Form 1040SSE will give you a better estimate. But there is a \"\"safe harbor\"\" provision, in that if what you pay in estimated tax (and withholding) this year is at least as much as you owed last year, there's no penalty. I've always done mine this way, dividing last year's tax by 4, since my income is quite variable, and I've never been able to make sense of the worksheets on the 1040-ES.\"",
"title": ""
},
{
"docid": "0493d4f827147a296d9f105fe8748726",
"text": "They might be concerned with having to charge sales tax in California if they have a single employee in California, creating a nexus situation with CA. If that's the case, or even if there is some other issue, you might be able to switch from being a W2 employee to being a 1099 independent contractor. There's a host of additional issues this could cause, but it alleviate the nexus problem (if THAT is the problem). Here's a terrible solution you can bring up, but shouldn't do under any circumstances: offer to set up a mailing address in an allowed State, and give your company plausible deniability with regards to your legal residence. Obviously, this is a terrible idea, but exploring that option with your employer would help you suss out what the actual objection is. Ultimately, anything said here about the reason is just conjecture. You need to talk to the decision maker(s) about the real reason behind the denial. Then you can talk through solutions. Also - don't forget that you can get another job. If you are serious about a future with your girlfriend, you should put that relationship ahead of your current employment comfort and security. If you are willing to walk away from your position, you are in a much better situation to negotiate.",
"title": ""
},
{
"docid": "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": "107749335103a8ad581ed32e3ba6bdcf",
"text": "To answer my own question, at least to the extent of my understanding. Here the IRS says that all income for a foreign person from a US-based company is taxable with 30%. Here the IRS says that this tax should be withhold at source by whomever pays you. In case there is a tax treaty with the country, the tax can even be waived in the US. Of course, if you don't declare it in your home country, the US bank could probably give information requested by the home country authorities. For the other two cases (when there's no US party involved) I can't find anything on the IRS website, which kind of make sense. If I am using an account in the US just to receive and send money shouldn't imply any tax. Thanks to @litteadv for pointing me into the right direction.",
"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": "1b9ab1f95c481e326cd7c4f61ba760ec",
"text": "I'm not familiar with Canadian taxes, but had your question been written about the United States, I'd advise you to at least consult for a couple of hours with an accountant. Taxes are complex, and the cost of making a mistake generally exceeds the cost of getting professional advice.",
"title": ""
}
] |
fiqa
|
c3257ecf73330c240a4ee469a5196d3f
|
How do margins on tracker mortgages (variable rate mortages) vary over time?
|
[
{
"docid": "c7b5e49eac72c5c8079a6d70519277a2",
"text": "how do these margins vary over time Depends on a lot of factors. The bank's financial health, bank's ongoing business activities, profits generated from it's other businesses. If it is new to mortgages, it mightn't take a bigger margin to grow its business. If it is in the business for long, it might not be ready to tweak it down. If the housing market is down, they might lower their margin's to make lending attractive. If their competitors are lowering their margins, the bank in question might also. Do they rise when the base rate rises, or fall, or are they uncorrelated? When rates rise(money is being sucked out to curb spending), large amount of spending decreases. So you can imagine margins will need to decrease to keep the mortgage lending at previous levels. Would economic growth drive them up or down? Economic growth might make them go up. Like in case 1, base rates are low -> people are spending(chances are inflation will be high) -> margins will be higher(but real value of money will be dependent on inflation) Is there any kind of empirical or theoretical basis to guess at their movement? Get a basic text book on macroeconomics, the rates and inflation portion will be there. How the rates influence the money supply and all. It will much more sense. But the answer will encompass a mixture of all conditions and not a single one in isolation. So there isn't a definitive answer. This might give you an idea of how it works. It is for variable mortgage but should be more or less near to what you desire.",
"title": ""
}
] |
[
{
"docid": "6657c05898ceb7473983e062b054aa66",
"text": "\"Thanks! Do you know how to calculate the coefficients from this part?: \"\"The difference between the one-year rate and the spread coefficients represents the response to a change in the one-year rate. As a result, the coefficient on the one-year rate and the difference in the coefficients on the one-year rate and spread should be positive if community banks, on average, are asset sensitive and negative if they are liability sensitive. The coefficient on the spread should be positive because an increase in long-term rates should increase net interest income for both asset-sensitive and liability-sensitive banks.\"\" The one-year treasury yield is 1.38% and the ten-year rate is 2.30%. I would greatly appreciate it if you have the time!\"",
"title": ""
},
{
"docid": "2aaca1bc531b6eef0e29db9a819bcf72",
"text": "Bonds can increase in price, if the demand is high and offer solid yield if the demand is low. For instance, Russian bond prices a year ago contracted big in price (ie: fell), but were paying 18% and made a solid buy. Now that the demand has risen, the price is up with the yield for those early investors the same, though newer investors are receiving less yield (about 9ish percent) and paying higher prices. I've rarely seen banks pay more variable interest than short term treasuries and the same holds true for long term CDs and long term treasuries. This isn't to say it's impossible, just rare. Also variable is different than a set term; if you buy a 10 year treasury at 18%, that means you get 18% for 10 years, even if interest rates fall four years later. Think about the people buying 30 year US treasuries during 1980-1985. Yowza. So if you have a very large amount of money you will store it in bonds as its much less likely that the US treasury will go bankrupt than your bank. Less likely? I don't know about your bank, but my bank doesn't owe $19 trillion.",
"title": ""
},
{
"docid": "7a7a97238901b51b69c23d0c538c7d28",
"text": "Mortgages with a prepayment penalty usually do not charge points as a condition of issue. The points, usually in the range 1%-3% of the amount borrowed, are paid from the buyer's funds at the settlement, and are effectively the prepayment penalty. Once upon a time (e.g. 30 years ago), in some areas, buyers had a choice of This last option usually had a higher interest rate than the first two. It was advantageous for a buyer to accept this option if the buyer was sure that the mortgage would indeed be paid off in a short time, e.g. because a windfall of some kind (huge bonus, big inheritance, a killing in the stock market, a successful IPO) was anticipated, where the higher interest charged for only a few years did not make much of a difference. Taking this third option and hanging on to the mortgage over the full 15 or 20 or 25 or 30 year term would have been a very poor choice. I do not know if all three options are still available in the current mortgage market. The IRS treats points for original morttgages and points for re-financed mortgages differently for the purposes of Schedule A deductions. Points paid on an original mortgage are deductible as mortgage interest in the year paid, whereas points paid on a refinance must be amortized over the life of the loan so that the mortgage interest deduction is the sum of the interest paid in the monthly payments plus a fraction of the points paid for the refinance. The undeducted part of the points get deducted in the year that the mortgage is paid off early (or refinanced again). Prepayment penalties are, of course, deductible as mortgage interest in the year of the prepayment.",
"title": ""
},
{
"docid": "98863528ca9a2014fa3bc34c6c060f5a",
"text": "yes, i am incorporating monte carlo return scenarios for both equity and real estate. yeah there is a lot to consider in the case of the property being a condo where you have to account for property taxes as well as condo fees. the two projects have entirely different considerations and it's not like the money that is injected to one is similar to the other (very different) which is why i figured there should be differing discount rates. in any case, thanks for the discussion and suggestions.",
"title": ""
},
{
"docid": "35ec6ed1d2beb27b9ab3d584c9de8470",
"text": "Dividend yield is a tough thing to track because it's a moving target. Dividends are paid periodically the yield is calculated based on the stock price when the dividend is declared (usually, though some services may update this more frequently). I like to calculate my own dividend by annualizing the dividend payment divided by my cost basis per share. As an example, say you have shares in X, Co. X issues a quarterly dividend of $1 per share and the share price is $100; coincidentally this is the price at which you purchased your shares. But a few years goes by and now X issues it's quarterly dividend of $1.50 per share, and the share price is $160. However your shares only cost you $100. Your annual yield on X is 6%, not the published 3.75%. All of this is to say that looking back on dividend yields is somewhat similar to nailing jello to the wall. Do you look at actual dividends paid through the year divided by share price? Do you look at the annualized dividend at the time of issue then average those? The stock price will fluctuate, that will change the yield; depending on where you bought your stock, your actual yield will vary from the published amount as well.",
"title": ""
},
{
"docid": "d74ce0acb761e346e6dfe3323d9ea77c",
"text": "The article John cites says no correlation, but this chart from the article says otherwise; One sees the rate drop from 14% to 4% and housing rise from an index of 50 to near 190. (reaching over to my TI BA-35 calculator) I see that at 14%, $1000/mo will buy $84,400 worth of mortgage, but at 4%, it will buy $209,500. 2-1/2 times the borrowing power for the same payment. But wait, my friends at West Egg tell me that inflation means I can't compare $1000 in 1980 to the same $1000 in 2010. The $1,000 inflates to $2611 (i.e. an income rising only with inflation, no more) and that can fund a mortgage for $546,900. This is 6.5 times the original borrowing power, yet the housing index 'only' rose 3.8X. See that crazy chart? Housing actually got cheaper from 1980 to the peak. Statistics can say whatever you wish. Interest rate change drove all the change in housing prices, but not quite as much as it should have. To answer your question - I expect that when rates rise (and they will) housing prices will take a hit. In today's dollars, a current $1000 borrows (at 4%) nearly $210K, but at 6%, just $167K. If rates took a jump from these record lows, that's the nature of the risk you'd take.",
"title": ""
},
{
"docid": "c091e3281e221f90416b841dccd337be",
"text": "Ok maybe I should have went into further detail but I'm not interested in a single point estimate to compare the different options. I want to look at the comparable NPVs for the two different options for a range of exit points (sell property / exit lease and sell equity shares). I want to graph the present values of each (y-axis being the PVs and x-axis being the exit date) and look at the 'cross-over' point where one option becomes better than the other (i'm taking into account all of the up front costs of the real estate purchase which will be a bit different in the first years). i'm also looking to do the same for multiple real estate and equity scenarios, in all likelihood generate a distribution of cross-over points. this is all theoretical, i'm not really going to take the results to heart. merely an exercise and i'm tangling with the discount rates at the moment.",
"title": ""
},
{
"docid": "65cf9a90015e47167757486425ce4587",
"text": "\"Oftentimes, the lender (the owner of the security) is not explicitly involved in the lending transaction. Let's say the broker is holding a long-term position of 1MM shares from Client A. It is common for Client A's agreement with Broker A to include a clause that allows the broker to lend out the 1MM shares for its own profit (\"\"rehypothecation\"\"). Client A may be compensated for this in some form (e.g. baked into their financing rates), but they do not receive any compensation that is directly tied to lending activities. You also have securities lending agents that lend securities for an explicit fee. For example, the borrower's broker may not have sufficient inventory, in which case they would need to find a third-party lending agent. This happens both on-demand as well as for a fixed-terms (typically a large basket of securities). SLB (securities lending and borrowing) is a business in its own right. I'm not sure I follow your follow-up question but oftentimes there is no restriction that prevents the broker from lending out shares \"\"for a very short time\"\". Unless there is a transaction-based fee though, the number of times you lend shares does not affect \"\"pocketing the interest\"\" since interest accrues as a function of time.\"",
"title": ""
},
{
"docid": "2278504170f25f5ade3ffef9c2df34fb",
"text": "The value does change from 12.61% to 13.48%. The difference between re-investing cashflows at 14% vs 12% is not big enough to change the rounded value. Edit: The initial cashflow is discounted at t0, meaning it's already equal to its present value and the finance rate doesn't have an effect. It does impact future outgoing cashflows, as you've noted.",
"title": ""
},
{
"docid": "a18c18f6b6591c375d4587f16548dc7a",
"text": "In a strictly mathematical sense, no. Or rather, it depends what 'long run' means. Say today the home average is $200K, and payment is $900/mo. The $900 today happens to be about 20% of the median US monthly income (which is approximately $54,000/yr). Housing rises 4%/yr, income 3%/yr. In 100 years (long enough?) the house costs $10M but incomes are 'only' $1.03M/yr, and the mortgage, even at the same rate is $45K/month, or, to be clear, it rose to 52% of monthly income. My observation is that, long term, the median home costs what 25% of median income will support, in terms of the mortgage after downpayment. Long term. That means that if you graph this, you'll see trends above and below the long term line. You'll see a 25 year bubble form starting in the late 80's as rates dropped from near 18% to the Sub-4% in the early 00s. But once you normalize it to percent of income to pay the loan, much of the bubble is flattened out. At 18%, $1500/mo bought you a $100K mortgage, but at 3.5%, it bought $335K. This is in absolute dollars, wages also rose during that time. I am just clarifying how rates distort the long term trends and create the short term anomalies.",
"title": ""
},
{
"docid": "8eb15fd9cad42cbd62a7309b9306c4e1",
"text": "But the notes are always called at par, no? So you have a fixed yield which depends on the coupon and price you bought it at. I still don't see how the company doing better than expected changes the yield on your investment.",
"title": ""
},
{
"docid": "59c81481b8726cfc411fafbc7b7c61d3",
"text": "Does the price only start the day based on the previous day's rebalancing? No, the tracker will open at the price according to the stock it is tracking. So for example, if the ETF closed at $10 but the tracked stock continued trading and was priced $15 when the ETF reopened the ETF will open at $15. (Example is for a non-leveraged ETF.)",
"title": ""
},
{
"docid": "bad7733c71b5c618301ebf612cd85e05",
"text": "Usually that is the case that when fixed rates are lower than the variable rates, it is an indication that the banks feel the next movement in rates could be down. You also need to look at the fixed rates for different periods, for example 1 year fixed compared to 3 year fixed and 5 year fixed rates. If you find the 3 and 5 year fixed rates are higher than the 1 year fixed rates this could be an indication that the banks feel rates will fall in the short term but the falls won't last long and will continue to rise after a year or so. If the 3 year fixed rates are also low in comparison, then the banks may feel that the economy is heading for a longer term down trend. The banks won't want to lose out, so will change their fixed rates on their perception of where they feel the economy is headed. Since your post in May 2011, the standard variable rate has since dropped twice (in November and December) to be at 7.30%. You will also find that fixed rates have also been dropped further by the banks, indicating additional future cuts in the variable rates. Regards, Victor",
"title": ""
},
{
"docid": "799a9ee5e202bf0686256b32b8c4a361",
"text": "\"As Michael McGowan says, just because gold has gone up lots recently does not mean it will continue to go up by the same amount. This plot: shows that if your father had bought $20,000 in gold 30 years ago, then 10 years ago he would have slightly less than $20,000 to show for it. Compare that with the bubble in real estate in the US: Update: I was curious about JoeTaxpayer's question: how do US house prices track against US taxpayer's ability to borrow? To try to answer this, I used the house price data from here, the 30 year fixed mortgages here and the US salary information from here. To calculate the \"\"ability to borrow\"\" I took the US hourly salary information, multiplied by 2000/12 to get a monthly salary. I (completely arbitrarily) assumed that 25 per cent of the monthly salary would be used on mortgage payments. I then used Excel's \"\"PV\"\" (Present Value) function to calculate the present value of the thirty year fixed rate mortgage. The resulting graph is below. The correlation coefficient between the two plots is 0.93. There are so many caveats on what I've done in ~15 minutes, I don't want to list them... but it certainly \"\"gives one furiously to think\"\" !! Update 2: OK, so even just salary information correlates very well with the house price increases. And looking at the differences, we can see that perhaps there was a spike or bubble in house prices over and above what might be expected from salary-only or ability-to-borrow.\"",
"title": ""
},
{
"docid": "a67a9aa56c7f5ce0cb27dd013d0dc2a8",
"text": "Mortgage rates tend to track the yield on the 10-year Treasury note. The CBOE Interest Rate 10-Year T-Note, TNX, is a security directly related to this rate. Divide the CBOE price of TNX by 10 to get the yield. One can also track the 10Y T-Note yield at yahoo finance using ticker symbol (^TNX). One can also track the 10Y T-Note yield at yahoo finance using ticker symbol (^TNX).",
"title": ""
}
] |
fiqa
|
30b0514aa2c0fe255a8c8b57fae8a029
|
1099 Misc for taking care of foreign exchange students
|
[
{
"docid": "8e67f5d319cbe5f6e7fc12d9ff5115ee",
"text": "\"In general, you are allowed to deduct up to $50/month per student (see page 4), but only if you aren't reimbursed. In your case, since you are receiving a stipend, the full $2000 will be treated as taxable income. But the question of \"\"is it worth it\"\" really depends on how much you will actually spend (and also what you'll get from the experience). Suppose you actually spend $1000/month to host them, and if your combined tax rate is 35%, you'll pay $700 in additional taxes each month, but you'll still profit $300 each month. If your primary motivation for hosting students is to make a profit, you could consider creating a business out of it. If you do that you will be able to deduct all of your legitimate business expenses which, in the above example, would be $1000/month. Keeping with that example, you would now pay taxes on $1000 instead of $2000, which would be $350, meaning your profit would now be $650/month. (Increasing your profit by $350/month.) You will only need to keep spending records if you plan to go the business route. My advice: assume you won't be going the business route, and then figure out what your break even point is based on your tax rate (Fed+state+FICA). The formula is: Max you can spend per month without losing money = 2000 - (2000 * T) e.g. if T = 35%, the break even point is $1300. Side note: My family hosted 5 students in 5 years and it was always a fantastic experience. But it is also a very big commitment. Teenagers eat a lot, and they drive cars, and go on dates, and play sports, and need help with their homework (especially English papers), and they don't seem to like bed times or curfews. IMHO it's totally worth it, even without the stipend...\"",
"title": ""
},
{
"docid": "9f813a03faadc324bd6aa1f40bb8fc31",
"text": "According to Intuit, you cannot claim the $50 charitable contribution, so the entire $2000 / month will be taxable instead of $1900. That's only an extra $35 if your combined tax rate is 35%. As TTT mentioned, do this for the experience, not for the money. My wife and I have been hosting international students for 10 years now. https://ttlc.intuit.com/questions/3152069-i-received-a-1099-misc-employee-compensation-for-hosting-a-foreign-exchange-student-can-i-complete-a-schedule-c-for-the-expenses",
"title": ""
}
] |
[
{
"docid": "d34cb5f443878184b7f7c24914d6b8db",
"text": "Since you were a nonresident alien student on F-1 visa then you will be considered engaged in a trade or business in the USA. You must file Form 1040NR. Here is the detailed instruction by IRS - http://www.irs.gov/Individuals/International-Taxpayers/Taxation-of-Nonresident-Aliens",
"title": ""
},
{
"docid": "68a64f99ce3e7b39eb632a8f6aefc86a",
"text": "You are expected to file 1099 for each person you pay $600 a year. I.e.: not a one time payment, but the total over the course of the year. Since we don't know how much and what else you paid - we cannot answer this question. The real question you're asking is that if you're treating the enterprise as a hobby, whether you're supposed to file 1099s at all. The answer to that question is yes. You should talk to your tax adviser (a EA/CPA licensed in your state) about this, and whether it is the right thing for you to do treating this as a hobby at all.",
"title": ""
},
{
"docid": "29f435b2c18dc8dbc198bb80a1cabc83",
"text": "If treaties are involved for something other than exempting student wages on campus, you shouldn't do it yourself but talk to a licensed US tax adviser (EA/CPA licensed in your state) who's well-versed in the specific treaty. Double taxation provisions generally mean that you can credit the foreign tax paid to your US tax liability, but in the US you can do that regardless of treaties (some countries don't allow that). Also, if you're a US tax resident (or even worse - a US citizen), the royalties related treaty provision might not even apply to you at all (see the savings clause). FICA taxes are generally not part of the income tax treaties but totalization agreements (social security-related taxes, not income taxes). Most countries who have income tax treaties with the US - don't have social security totalization agreements. Bottom line - talk to a licensed professional.",
"title": ""
},
{
"docid": "0980ca2d1a7e51b55220dd25da641b4f",
"text": "question #2 - yes, 25% of your 1099 income. Good idea. It adds up quickly and is a good way to reduce taxable income.",
"title": ""
},
{
"docid": "c4da0f6689c697989f3e85d5e528ac56",
"text": "\"It says that you are exempt \"\"as long as such interest income is not effectively connected with a United States trade or business\"\". So the interest is from money earned from doing business with/through AirBnb, a US company. So you will have to report it. Even if your bank doesn't send you a 1099-INT, you have to report it, unless it is under $0.49 because the IRS allows rounding.\"",
"title": ""
},
{
"docid": "a6d8246a6d2c372099e8140b3683674e",
"text": "Business Apprentice is internship. That is not what is applicable for you. You're a visiting professor/researcher, which falls under Article 22, so you don't get the standard deduction.",
"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": "fb0647f840b95233af703f5eabf08a32",
"text": "\"1. What forms do I need to file to receive money from Europe None. Your client can pay you via wire transfer. They need to know your name, address, account number, and the name of your bank, its SWIFT number and its associated address. The addresses and names are required to make sure there are no typos in the numbers. 2. What forms do I need to file to pay people in Latin America (or any country outside the US) None. 1099s only need to be filled out when the contractor has a US tax ID. Make sure they are contractors. If they work for you for more than 2 years, that can create a problem unless they incorporate because they might look like \"\"employees\"\" to the IRS in which case you need to be reporting their identitites to the IRS via a W-8BEN form. Generally speaking any foreign contractor you have for more than 2 years should incorporate in their own country and you bill that corporation to prevent employee status from occurring. 3. Can I deduct payments I made to contractors from other countries as company expense Of course.\"",
"title": ""
},
{
"docid": "9336d26dd5877928c86ed75d766ddbc7",
"text": "\"In general, scholarship income that you receive that is not used for tuition or books must be included in your gross income and reported as such on your tax return. Scholarship income you receive that is used for those kinds of expenses may be excludable from your gross income. See this IRS information and this related question. I believe that as represented on the 1098-T, this generally means that if Box 5 (Scholarships and Grants) is greater than Box 1 or 2 (only one of which will be used on your 1098-T), you received taxable scholarship income. If Box 5 is less than or equal to Box 1/2, you did not receive taxable scholarship income. This TaxSlayer page draws the same conclusion. However, you should realize that the 1098-T is not what makes you have to pay or not pay taxes. You incur the taxes by receiving scholarship money, and you may reduce your tax liability by paying tuition. The 1098-T is simply a record of payments that have already been made. For instance, if you received $10,000 in scholarship money --- that is, actually received checks for that amount or had that amount deposited into your bank account --- then your income went up by $10,000. If you yourself paid tuition, it is likely that you can exclude the amount of the tuition from your taxable income, reducing the tax you owe (see the IRS page linked above). However, if you received $10,000 in actual money and in addition your tuition was paid by the scholarship (with money you never actually had in your own bank account), then the entire $10,000 would be taxable. You do not give enough information in your question to be sure which of these situations is closer to your own. However, you should be able to decide by looking at your bank account: look at how much money you received and how much you spent on tuition. If you received more scholarship money than the tuition you paid out of pocket, you owe taxes on the remainder. (I emphasize that this is just a general rule of thumb and should not be taken as tax advice; you should review the IRS information and/or consult a tax professional to determine what part of your scholarship income is taxable.) In addition, as this (now rather old) article from the New York Society of CPAs notes, \"\"many colleges and universities prepare 1098-Ts incorrectly and report tuition and related expenses inconsistently\"\". This means you should be careful to reconcile the 1098-T with your own financial records of what money you actually received and paid. When I was in grad school there was a good deal of hand-wringing and hair-pulling each year among the students as we tried to determine what relationship (if any) the 1098-T bore to the financial facts.\"",
"title": ""
},
{
"docid": "e20a9c8c36738492aa0363c1113b6ca9",
"text": "\"I'm working on similar problem space. There seems to be some working ambiguity in this space - most focus seems to be on more complex cases of income like Dividends and Capital Gains. The US seems to take a position of \"\"where the work was performed\"\" not \"\"where the work was paid\"\" for purposes of the FEIE. See this link. The Foreign Tax Credit(FTC) is applied (regardless of FEIE) based on taxes paid in the other Country. In the event you take the FEIE, you need to exclude that from the income possible to claim on the FTC. i.e. (TOTAL WAGES(X) - Excluded Income) There is a weird caveat on TOTAL WAGES(X) that says you can only apply the FTC to foreign-sourced income which means that potentially we are liable for the on-US-soil income at crazy rates. See this link.. Upon which... there is probably not a good answer short of writing your congressperson.\"",
"title": ""
},
{
"docid": "27b9e5f5f85fe3439903cc3d99d16902",
"text": "Students at college employed by the college are exempt from the FICA taxes (Social Security and Medicare). You are not exempt from federal and state income taxes, but if you are a part time employee making a small amount of money, you probably aren't projected to be paid enough between now and the end of the year to trigger the withholding. If you are concerned that your tax burden for the year will require you to send in money at tax time next year, you can estimate what your taxes will be, and if you determine that you will owe too much, you can fill out a new W-4 form with your HR department and request that additional tax be withheld.",
"title": ""
},
{
"docid": "85794d485be3d23157e21a9378a3e00f",
"text": "To start with, I should mention that many tax preparation companies will give you any number of free consultations on tax issues — they will only charge you if you use their services to file a tax form, such as an amended return. I know that H&R Block has international tax specialists who are familiar with the issues facing F-1 students, so they might be the right people to talk about your specific situation. According to TurboTax support, you should prepare a completely new 1040NR, then submit that with a 1040X. GWU’s tax department says you can submit late 8843, so you should probably do that if you need to claim non-resident status for tax purposes.",
"title": ""
},
{
"docid": "7eac2e73f8d413f7e41d518f1fd205ce",
"text": "\"You may be considered a resident for tax purposes. To meet the substantial presence test, you must have been physically present in the United States on at least: 31 days during the current year, and 183 days during the 3 year period that includes the current year and the 2 years immediately before. To satisfy the 183 days requirement, count: All of the days you were present in the current year, and One-third of the days you were present in the first year before the current year, and One-sixth of the days you were present in the second year before the current year. If you are exempt, I'd check that ending your residence in Germany doesn't violate terms of the visa, in which case you'd lose your exempt status. If you are certain that you can maintain your exempt status, then the income would definitively not be taxed by the US as it is not effectively connected income: You are considered to be engaged in a trade or business in the United States if you are temporarily present in the United States as a nonimmigrant on an \"\"F,\"\" \"\"J,\"\" \"\"M,\"\" or \"\"Q\"\" visa. The taxable part of any U.S. source scholarship or fellowship grant received by a nonimmigrant in \"\"F,\"\" \"\"J,\"\" \"\"M,\"\" or \"\"Q\"\" status is treated as effectively connected with a trade or business in the United States. and your scholarship is sourced from outside the US: Generally, the source of scholarships, fellowship grants, grants, prizes, and awards is the residence of the payer regardless of who actually disburses the funds. I would look into this from a German perspective. If they have a rule similiar to the US for scholarships, then you will still be counted as a resident there.\"",
"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": ""
},
{
"docid": "0eb36cb23e54bb663852701290267fcd",
"text": "My two-cents, read your plan document or Summary Plan Description. The availability of in-service withdrawals will vary by document. Moreover, many plans, especially those compliant with 404(c) of ERISA will allow for individual brokerage accounts. This is common for smaller plans. If so, you can request to direct your own investments in your own account. You will likely have to pay any associated fees. Resources: work as actuary at a TPA firm",
"title": ""
}
] |
fiqa
|
b493b330baa676b50da2d4f4c0025081
|
Why are there so many stock exchanges in the world?
|
[
{
"docid": "9afa9a63cbedc37a3769f61c1b6654ad",
"text": "\"Nearly every country has its own exchange because so many countries have their own currency, and currency permeates every part of an exchange's business. Generally, an exchange will support transaction and settlement only in local currency. Securities (except those that explicitly enable FX trading) are denominated and will trade in a single currency-- you can only buy a share of IBM in U.S. dollars. Securities trading always seeks to be a clean, frictionless, scalable process, and adding cross-currency translation to the mix would just complicate things. So it's one exchange, one currency. In most countries, citizens and even businesses are largely restricted to having bank accounts in local currency. There are various political reasons for this, but there it is: it is difficult or impossible to open a domestic bank account in a foreign-denominated currency. A public company headquartered in a given country will be required to publish financial statements in local currency, will be more likely to do business with the local citizenry and businesses in that currency, and so will likely look for investors from that same pool-- which generally means listing in local currency, which means on an exchange in that country. There are exceptions, of course. Big multinationals do business all over the world, and many seek investors all over the world as well. Mechanisms have been created to permit this (American Depositary Receipts or ADRs, for example). But once again, cross-currency translation makes things more complicated, so ADRs and their like are only practical for very big international players. As to why there may be many exchanges in a single country, IMO Nick R has it right. Read \"\"Flash Boys\"\"; many market makers profit from trading between exchanges, and so have an interest in there being many of them. And in the U.S., regulators have expressed an interest in \"\"innovation\"\" in the exchange space, and so permit them. There is also an argument to be made against having a single \"\"Too Big To Fail\"\" exchange just like the argument for banks, but I wouldn't call that a \"\"reason\"\" for the current state of affairs.\"",
"title": ""
},
{
"docid": "19b8fefc80b1480b222601567516f7e6",
"text": "Stock exchanges have been undergoing a period of consolidation for the past hundred years for the exact reasons you mentioned. The existence of digital trading, harmonized laws and regulations, and fewer relevant currencies have made it more practical for mergers and acquisitions between exchanges. Stock exchanges are most often times private companies that compete with other exchanges, so that also promotes the existence of many exchanges.",
"title": ""
},
{
"docid": "e2df1f883c931101ae884951adcb3ebc",
"text": "\"Why are there so many stock exchanges in the world? The simple answer is that there is a lot of money to be made by charging fees to facilitate the trading of securities, but there are other factors at play here relating to new technologies. Trading volumes have increased rapidly in recent years. According to this ITG data, in 1997, 6.5 billion shares were traded on US exchanges. By 2015 this number had increased to 40.8 billion shares. There are a number of reasons for this rapid increase in volumes. Most significant would be the introduction of new technologies that allow for high volume, high frequency trading. This increase in activity has be accompanied by an increase in the number of stock exchanges. As CQM points out in his answer, there has been considerable consolidation in the ownership of \"\"legacy\"\" exchanges. For example, the NYSE merged with EuroNext in 2007, and the combined group is now owned by the Intercontinental Exchange, which also owns numerous smaller stock exchanges as well as a number of derivative/commodities exchanges. However, this consolidation in ownership has been more than matched by the creation of many \"\"virtual\"\" exchanges. In North America these virtual exchanges are called \"\"Alternative Trading Systems\"\". In Europe, they are called \"\"Multilateral Trading Facilities\"\". These new virtual exchanges, sometimes referred to as \"\"dark pools\"\", have begun to significantly eat away at the volumes of the legacy exchanges. If you look at the ITG data (linked above), you will see that the total volume of shares traded on legacy exchanges actually peaked in 2008, and has since then has decreased. This coincides roughly with the appearance of the virtual exchanges and the new high frequency trading methods. According to this paper from the SEC site, dated 2013, Alternative Trading Systems accounted for 11.3% of total volumes in 2012. This will have increased rapidly in the years since 2012. It is this loss of business that has prompted the consolidation in the ownership of the legacy exchanges. These new exchange are \"\"conceptually the same\"\" as the legacy exchanges and must play by the same regulatory rules.\"",
"title": ""
}
] |
[
{
"docid": "4048f622462175257b20a025cffe2227",
"text": "The total value of the stock market more or less tracks the total value of the companies listed in the stock market, which is more or less the total value of the US economy (since very few industries are nationalized or dominated by privately held companies). The US economy has consistently grown over time, thanks to the wonders of industrialization, the discovery of new markets, new natural resources, etc. Thus, the stock market has continued to grow as well. Will it forever? No. The United States will not exist for ever. But there's no obvious reason it won't continue to grow, at least for a while, though of course if I could accurately predict that I would be far richer than I am. Why do other countries not have the same result? China is its own ball of wax since it's a sort-of-market-sort-of-command economy. Japan has major issues economically right now and doesn't really have the natural or people resources; it also had a huge market bubble a while back that it's never recovered from. And many European countries are doing fine. German's DAX30 index was at around 2500 in 2004 and is now at nearly 13000. That's pretty fast growth. If you go back further (there was a crash ending in around 2004), you can see around the fall of the Berlin wall it was still around 2000; even going that far back, that's about an 8% annual bump. The FTSE was also around 2000 back then, around 8000 now, which is around 5% annual growth. Many of these indexes were more seriously hurt than the US markets in the two major crashes of this millenium; while the US markets fell a lot in 2008, they didn't fall nearly as much as many smaller markets in 2002, so had less to recover from. Both DAX and FTSE suffered similar falls in 2002 to 2008, and so even though during good periods they've grown quite quickly, they haven't overall done as well as they could have given the crashes.",
"title": ""
},
{
"docid": "b032ce2063c3d7d8952a3ba8ebc1121a",
"text": "You don't have to go through an exchange. That wasn't the problem. It was that the people trading on them wouldn't be willing to take your offer. An exchange can't just list a company. They need that company's consent and the company need's the exchange's consent. I don't know if you're aware of this but that was also an entirely new disaster during Facebook's IPO. Computer glitches didn't help. What you're talking about is a called a secondary market, kind of. Stock exchanges offer those too, especially for options. That's the typical stock footage you see of guys on wall street yelling and screaming while throwing paper up in the air.",
"title": ""
},
{
"docid": "d8b1c36e5d1791682dd0255c1fe4c7d4",
"text": "I don't know why stocks in some industries tend to have lower prices per share than others. It doesn't really matter much. Whether a company has 1,000,0000 shares selling for $100 each, or 10,000,000 shares selling for $10 each, either way the total value is the same. Companies generally like to keep the share price relatively low so that if someone wants to buy a small amount, they can. Like if the price was $10,000 per share, than an investor with less than $10,000 to put in that one stock would be priced out of the market. If it's $10, then if someone wants $10 they can buy one share, and if someone wants $10,000 they can buy 1000 shares. As to why energy stocks are volatile, I can think of several reasons. One, in our current world, energy is highly susceptible to politics. A lot of the world's energy comes from the Middle East, which is a notoriously unstable region. Any time there's conflict there, energy supplies from the region become uncertain. Oil-producing countries may embargo countries that they don't like. A war will, at the very least, interfere with transportation and shipping, and may result in oil wells being destroyed. Etc. Two, energy is consumed when you use it, and most consumers have very limited ability to stockpile. So you're constantly buying the energy you need as you need it. So if demand goes down, it is reflected immediately. Compare this to, say, clothing. Most people expect to keep the same clothes for years, wearing them repeatedly. (Hopefully washing them now and then!) So if for some reason you decided today that you only need three red shirts instead of four, this might not have any immediate impact on your buying. It could be months before you would have bought a new red shirt anyway. There is a tendency for the market to react rather slowly to changes in demand for shirts. But with energy, if you decide you only need to burn 3 gallons of gas per week instead of 4, your consumption goes down immediately, within days. Three, really adding to number two, energy is highly perishable, especially some forms of energy. If a solar power station is capable of producing 10 megawatts but today there is only demand for 9 megawatts, you can't save the unused megawatt for some future time when demand is higher. It's gone. (You can charge a battery with it, but that's pretty limited.) You can pile up coal or store natural gas in a tank until you need it, but you can't save the output of a power plant. Note numbers two and three also apply to food, which is why food production is also very volatile.",
"title": ""
},
{
"docid": "68091295b7fb6720774adf3dda051fda",
"text": "It might be easiest to think of stock exchanges like brokers. If you buy a home, and your broker goes bankrupt, you still own your home, but you could not sell it without the aid of another broker. Same with stocks, you own the stocks you buy, but you would be unable to either purchase new stocks or sell your stock holdings without an exchange.",
"title": ""
},
{
"docid": "27c4e69d2f392f68687ad026b2b9ae91",
"text": "The stock market's principal justification is matching investors with investment opportunities. That's only reasonably feasible with long-term investments. High frequency traders are not interested in investments, they are interested in buying cheap and selling expensive. Holding reasonably robust shares for longer binds their capital which is one reason the faster-paced business of dealing with options is popular instead. So their main manner of operation is leeching off actually occuring investments by letting the investors pay more than the recipients of the investments receive. By now, the majority of stock market business is indirect and tries guessing where the money goes rather than where the business goes. For one thing, this leads to the stock market's evaluations being largely inflated over the actual underlying committed deals happening. And as the commitment to an investment becomes rare, the market becomes more volatile and instable: it's money running in circles. Fast trading is about running in front of where the money goes, anticipating the market. But if there is no actual market to anticipate, only people running before the imagination of other people running before money, the net payout converges to zero as the ratio of serious actual investments in tangible targets declines. By and large, high frequency trading converges to a Ponzi scheme, and you try being among the winners of such a scheme. But there are a whole lot of people competing here, and essentially the net payoff is close to zero due to the large volumes in circulation as opposed to what ends up in actual tangible investments. It's a completely different game with different rules riding on the original idea of a stock market. So you have to figure out what your money should be doing according to your plans.",
"title": ""
},
{
"docid": "81e3c658b4c1ad494a06e67bc0a6de25",
"text": "Non-electronic stock exchanges still exist because they used to exist. There are a lot of people in trading firms who grew up with floor trading and don't want to give it up, either because they feel more comfortable with it or because they might lose their job if they went away from it.",
"title": ""
},
{
"docid": "f59f4442413d1763b8006e17302d92bb",
"text": "The reason a company creates more stock is to generate more capital so that this can be utilized and more returns can be generated. It is commonly done as a follow on public offer. Typically the funds are used to retire high cost debts and fund future expansion. What stops the company from doing it? Are Small investors cheated? It's like you have joined a car pool with 4 people and you are beliving that you own 1/4th of the total seats ... so when most of them decide that we would be better of using Minivan with 4 more persons, you cannot complain that you now only own 1/8 of the total seats. Even before you were having just one seat, and even after you just have one seat ... overall it maybe better as the ride would be good ... :)",
"title": ""
},
{
"docid": "992515091016e92c23ab724308d91cbb",
"text": "\"There are people (well, companies) who make money doing roughly what you describe, but not exactly. They're called \"\"market makers\"\". Their value for X% is somewhere on the scale of 1% (that is to say: a scale at which almost everything is \"\"volatile\"\"), but they use leverage, shorting and hedging to complicate things to the point where it's nothing like a simple as making a 1% profit every time they trade. Their actions tend to reduce volatility and increase liquidity. The reason you can't do this is that you don't have enough capital to do what market makers do, and you don't receive any advantages that the exchange might offer to official market makers in return for them contracting to always make both buy bids and sell offers (at different prices, hence the \"\"bid-offer spread\"\"). They have to be able to cover large short-term losses on individual stocks, but when the stock doesn't move too much they do make profits from the spread. The reason you can't just buy a lot of volatile stocks \"\"assuming I don't make too many poor choices\"\", is that the reason the stocks are volatile is that nobody knows which ones are the good choices and which ones are the poor choices. So if you buy volatile stocks then you will buy a bunch of losers, so what's your strategy for ensuring there aren't \"\"too many\"\"? Supposing that you're going to hold 10 stocks, with 10% of your money in each, what do you do the first time all 10 of them fall the day after you bought them? Or maybe not all 10, but suppose 75% of your holdings give no impression that they're going to hit your target any time soon. Do you just sit tight and stop trading until one of them hits your X% target (in which case you start to look a little bit more like a long-term investor after all), or are you tempted to change your strategy as the months and years roll by? If you will eventually sell things at a loss to make cash available for new trades, then you cannot assess your strategy \"\"as if\"\" you always make an X% gain, since that isn't true. If you don't ever sell at a loss, then you'll inevitably sometimes have no cash to trade with through picking losers. The big practical question then is when that state of affairs persists, for how long, and whether it's in force when you want to spend the money on something other than investing. So sure, if you used a short-term time machine to know in advance which volatile stocks are the good ones today, then it would be more profitable to day-trade those than it would be to invest for the long term. Investing on the assumption that you'll only pick short-term winners is basically the same as assuming you have that time machine ;-) There are various strategies for analysing the market and trying to find ways to more modestly do what market makers do, which is to take profit from the inherent volatility of the market. The simple strategy you describe isn't complete and cannot be assessed since you don't say how to decide what to buy, but the selling strategy \"\"sell as soon as I've made X% but not otherwise\"\" can certainly be improved. If you're keen you can test a give strategy for yourself using historical share price data (or current share price data: run an imaginary account and see how you're doing in 12 months). When using historical data you have to be realistic about how you'd choose what stocks to buy each day, or else you're just cheating at solitaire. When using current data you have to beware that there might not be a major market slump in the next 12 months, in which case you won't know how your strategy performs under conditions that it inevitably will meet eventually if you run it for real. You also have to be sure in either case to factor in the transaction costs you'd be paying, and the fact that you're buying at the offer price and selling at the bid price, you can't trade at the headline mid-market price. Finally, you have to consider that to do pure technical analysis as an individual, you are in effect competing against a bank that's camped on top of the exchange to get fastest possible access to trade, it has a supercomputer and a team of whizz-kids, and it's trying to find and extract the same opportunities you are. This is not to say the plucky underdog can't do well, but there are systematic reasons not to just assume you will. So folks investing for their retirement generally prefer a low-risk strategy that plays the averages and settles for taking long-term trends.\"",
"title": ""
},
{
"docid": "bb40365ea193ef944818cd92378da144",
"text": "He said he's using MSCI World as a benchmark. MSCI World is not an exchange. The point is the same security listed in different places has different prices, so how do you describe the equity beta of the company to MSCI World if you have multiple and different return streams? This is a real problem to consider and you just dismiss it entirely.",
"title": ""
},
{
"docid": "f59842b4cc87ff6f7e622e7c1b8a5f5e",
"text": "\"Pay to play? You mean they pay for beefier data feeds that other firms don't need, sure they do. But everyone can trade on the US exchanges now (NYSE, NASDAQ, BATS, etc) which was not true 20 years ago when NYSE had the specialist monopoly, so yes the markets are more democratic than they've ever been. Side note, the exchanges do directly profit from increased trading volume because they take a small % of every trade, so I'm not sure what you mean they don't directly profit from it. Also I get the feeling you don't understand the scope of HFT activity, HFT peak profits were on the order of 7 billion during the highest volume time of the last decade (2005-2010). They are now around 1B. Compared to the trillions of dollars that change hands in the exchange per year, this is chump change, hardly a \"\"free money faucet\"\". Also Katsayuma opened yet another dark pool that caters to high volume clients (your goldmans and merrils). The only difference in IEX is it got a free marketing campaign to entice clients. Seriously, IEX is nothing more than the existing fixed cross dark pools, which btw screws over retail investors more than the lit exchanges like NASDAQ. Katsayuma got steamrolled in his executions because he couldn't keep up with the time and then hit the lottery jackpot by getting Michael Lewis to paint him as a \"\"hero\"\", honestly I'm confounded at how lucky that dude got. BTW broker dealers get preferential treatment in IEX, meaning they get to cut in front of the line in front of retail investors. Why are you so opinionated about this, did you make a few bad trades on eTrade and need a scapegoat?\"",
"title": ""
},
{
"docid": "4c6b17bfa485445555a5611682e477de",
"text": "The suffix represents the stock exchange the stock is traded on. N represents the New York Stock Exchange and O represents the Nasdaq. Sometimes a stock can be listed on more than one exchange so the suffix will give you an indication of which exchange the stock is on. For example the Australian company BHP Billiton Ltd is listed on multiple exchanges so is given a different suffix for the different exchanges (especially when the code is the same for each exchange). Below are a few examples of BHP:",
"title": ""
},
{
"docid": "2827cf778c230ac62baa016936a44c42",
"text": "Serious answer: If 7 banks owned the vast majority of houses for sale -- that is, on their balance sheet, at the peak of the housing bubble -- there would be. These 7 LCD companies produced the majority of LCDs globally. Real estate is far more decentralized, and in many times the bank merely provided financing for a third-party sale (from the builder, from any one of a hundred or so real estate companies, etc). (But I am assuming you probably weren't looking for a factual answer, anyway.)",
"title": ""
},
{
"docid": "5d354ffcba653ace3f0d5f2d49614d2d",
"text": "First and foremost you need to be aware of what you are comparing. In this case, HSBC as traded on the NYSE exchange is not common shares, but an ADR (American Depository Receipt) with a 5:1 ratio from the actual shares. So for most intents and purposes owning one ADR is like owning five common shares. But for special events like dividends, there may be other considerations, such as the depository bank (the institution that created the ADR) may take a percentage. Further, given that some people, accounts or institutions may be required to invest in a given country or not, there may be some permanent price dislocation between the shares and the ADR, which can further lead to discrepancies which are then highlighted by the seeming difference in dividends.",
"title": ""
},
{
"docid": "14117e82a174430358141e8f5bc52d22",
"text": "You must understand that: So, if you -- the prospective buyer -- are in Waukegan, do you take the train all the way to New York City just to buy 100 shares of stock? No. That would be absurdly expensive. So, you hire an agent in NYC who will broker a deal for you in the exchange. Fast forward 100 years, to the time when instant communications is available. Why do we now still need brokerages, when the Exchanges could set up web sites and let you do the trading? The answer is that the Exchanges don't want to have to develop the accounting systems to manage the transactions of hundreds of thousands of small traders, when existing brokerage firms already have those computerized processes in place and are opening their own web sites. Thus, in 2017 we have brokerage firms because of history.",
"title": ""
},
{
"docid": "4d9775c0ff085d4d7023a275e8706142",
"text": "\"A huge amount of money in all financial markets is from institutional investors, such as mutual funds, government pension plans, sovereign wealth funds, etc. For various reasons these funds do all of their trading at the end of the day. They care primarily that their end-of-day balances are in line with their targets and are easy to audit and far less about \"\"timing the market\"\" for the best possible trades. So, if you're looking at a stock that is owned by many institutional investors -- such as a stock (like AAPL) that makes up a significant portion of an index that many funds track -- there will be a huge amount of activity at this time relative to stocks that are less popular among institutions. Even just in its introduction this paper (PDF) gives a fair overview of other reasons why there's a lot of trading at end-of-day in general. (In fact, because of all this closing activity and the reliance on end-of-day prices as signposts for financial calculations, the end-of-day has for decades been the single most fraud-ridden time of the trading day. Electronic trading has done away with a lot of the straight-up thievery that floor traders and brokers used to get away with at the expense of the public, but it still exists. See, for example, any explanation of the term banging the close, or the penalties against 6 banks just last month for manipulating the FX market at the close.)\"",
"title": ""
}
] |
fiqa
|
505dc55df0bc389cd7212fd73df59e34
|
When is it necessary to apply taxes for web freelancing services in Quebec, Canada?
|
[
{
"docid": "076e0d5e64e17e91c7161a310b3c440e",
"text": "\"AFAIK, there are two kinds of taxes your web freelancing income may be subject to in Quebec: On the income taxes: The net income you realize from your web freelancing activities would be considered taxable income. Assuming you are not operating as an incorporated business, you would need to declare the freelancing income on both your federal and provincial tax returns. You should be able to deduct certain costs related to your business – for instance, if you paid for software, hosting, domain name registration, etc. That is, only the profit from your business would be subject to income tax. With income and expenses arising from self-employment, you may want to use a professional to file your taxes. On the sales taxes: You may also need to charge federal GST and provincial QST (Quebec Sales Tax) on your services: You must enroll and charge GST and QST once you exceed the \"\"small supplier\"\" revenue threshold of $30,000 measured over four consecutive quarters. (You can still choose to enroll for GST/QST before you reach that amount, but over that amount enrollment becomes mandatory. Some businesses enroll before the threshold is reached so they can claim input tax credits for tax paid on expenses, but then there's more paperwork – one reason to perhaps avoid enrolling until necessary.) In Quebec, the Ministère du Revenu du Québec administers both GST (on behalf of the federal government) as well as provincial QST. Be sure to also check out their informative booklet, Should I Register with Revenu Quebec? (PDF). See also General Information Concerning the QST and the GST/HST (PDF).\"",
"title": ""
}
] |
[
{
"docid": "05443a44fc8d39a49dbe9480afdcbdce",
"text": "Assuming that you don't own the business, it would seem to apply. The CRA says: If you were a resident of Quebec on December 31, 2016, and you did not have a business with a permanent establishment outside Quebec, your refundable Quebec abatement is 16.5% of the basic federal tax on line 55 of Schedule 1. If you had income from a business (including income you received as a limited or non-active partner) and the business has a permanent establishment outside Quebec, or you were not a resident of Quebec on December 31, 2016, and the business has a permanent establishment in Quebec, use Form T2203, Provincial and Territorial Taxes for 2016 - Multiple Jurisdictions, to calculate your abatement. For people whose income isn't coming from businesses they own, this seems quite clear.",
"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": "cfda73ae0f9dbf89a67f975f4f6047b6",
"text": "There is no requirement to open a company. You can work as freelancer. You need to report income and file returns. If your income is more than exempt limit, pay taxes. Apply for a PAN number if you don't have one yet.",
"title": ""
},
{
"docid": "616eeb050776c24607530a993d6be9d5",
"text": "\"New York will want to you to pay taxes on income from \"\"New York sources\"\". I'm not sure what this means to a freelance web developer. If your wife is doing freelance web development under the same business entity as she did in New York (ie. a New York sole proprietor, corporation, etc), you probably do need to file. From nonresident tax form manual: http://tax.ny.gov/pdf/2011/inc/it203i_2011.pdf If you were a nonresident of New York State, you are subject to New York State tax on income you received from New York State sources in 2011. If you were a resident of New York State for only part of 2011, you are subject to New York State tax on all income you received while you were a resident of the state and on income you received from New York State sources while you were a nonresident. To compute the amount of tax due, use Form IT-203, Nonresident and Part-Year Resident Income Tax Return. You will compute a base tax as if you were a full-year resident, then determine the percentage of your income that is subject to New York State tax and the amount of tax apportioned to New York State.\"",
"title": ""
},
{
"docid": "0d5db709426ecd7f9d7fbe0d9e7ed547",
"text": "They believe that it reduces the risk that Revenue Canada will deem you to be an employee and make them pay a whole pile of tax, EI, CPP and so on that should have been paid if you had been hired as an employee. It's my recollection that the employer gets dinged for both the employee and employer share of those withholdings (and generally the employer's share is larger than yours) so they really want to prevent it. There's a Revenue Canada publication about whether you're an employee or not. There's nothing on it about being incorporated, but still employers feel more protected when their contracts are incorporated. We did work as a sole proprietorship at the very beginning, so that we could deduct our losses against employment income earned earlier in the year, before we started the business. You can find clients who will take you on. We incorporated once the losses were over with (basically we had bought the equipment and office supplies we needed to get started.) It's a simple and relatively inexpensive thing to do, and gives clients a sense of protection. It won't protect you from your own poor decisions since you'll be a director of the firm.",
"title": ""
},
{
"docid": "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": "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": "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": "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": "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": "2ef4e47b64b903efa22be3cfe708549a",
"text": "There are no clear guidelines. If you are selling as individual, then what ever profit you make gets added to your overall income as you pay tax accordingly. This is true for sole proprietor or partnership kind of firms. If you are registered as a Company, the profits are taxed as business income. There may be VAT and other taxes. Please consult a CA who can guide you in specifics as for eCommerce, there is no defined law and one has to interpret various other tax laws.",
"title": ""
},
{
"docid": "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": "730bf896fd9945161b247899375340c3",
"text": "I'm a freelance programmer, reverse-engineer, and network engineer. I do quarterly 1099 filings using a cheap local accounting firm. I did them on my own at first; not that hard.. You deduct from sum the percentage for that earning-tier issued by the IRS.. $500.00 for writing algorithms on a timer? Yikes.. I did topcoder once but it didn't pay much then it was only good for portfolio.. No way I would race to do algorithms for third-world-rate capital..",
"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": "dc55d2f06ed16eb2a0e502d86f342e03",
"text": "\"So the main reason that you aren't getting answers is that the question is not really answerable on this site without putting a lot of details about the expenses of your company online. Even then you will need someone who specializes in Canadian taxes to go through those details to be sure. Most of those people feel like they should be paid a decent amount per hour to go through the details. That being said, I dealt with a similar question for my contract work company by just taking a couple weekends and calculating the taxes myself on estimated numbers. It was time consuming but not really that hard. I thought I might have to buy software, but all I needed was a small calculator. Along the way I learned a few details that helped me lower my overall tax exposure. I found that Neil was generally correct that you are \"\"taxed on profits\"\" but it is worth doing the taxes yourself because the details can really matter.\"",
"title": ""
}
] |
fiqa
|
0fbb54f6922862402090a05b2deb274f
|
What are the basics of apartment rental finances?
|
[
{
"docid": "8ad92aef2db18e00c11a34e335a8493c",
"text": "Well for starters you want to rent it for more than the apartment costs you. Aside from mortgage you have insurance, and maintenance costs. If you are going to have a long term rental property you need to make a profit, or at a bare minimum break even. Personally I would not like the break even option because there are unexpected costs that turn break even into a severe loss. Basically the way I would calculate the minimum rent for an apartment I owned would be: (Payment + (taxes/12) + (other costs you provide) + (Expected annual maintenance costs)) * 100% + % of profit I want to make. This is a business arrangement. Unless you are recouping some of your losses in another manner then it is bad business to maintain a business relationship that is costing you money. The only thing that may be worth considering is what comparable rentals go for in your area. You may be forced to take a loss if the rental market in your area is depressed. But I suspect that right now your condo is renting at a steal of a rate. I would also suspect that the number you get from the above formula falls pretty close to what the going rate in your area is.",
"title": ""
}
] |
[
{
"docid": "554772f1fd22785cb52c3fab4b5a1063",
"text": "In Massachusetts, we have a similar law. Each tenant fills out a W9 and the account is in their name. You need to find a bank willing to do this at no cost, else fees can be problematic. With today's rates, any fee at all will exceed interest earned.",
"title": ""
},
{
"docid": "b170129c88dde8aa46a26d51aa91d284",
"text": "\"In Britain it's standard practice to use an electronic bank transfer, otherwise known as a \"\"standing order\"\" for the monthly rent payment. Many letting agents insist on it here in Britain. It's rare to hear of fraud. It is possible to setup a Direct Debit with the account numbers, as happened in a famous case where Jeremy Clarkson claimed losing account numbers wasn't a problem. If a direct debit is taken from your account, then you are protected by the the Direct Debit guarantee which means that you get a full and immediate refund if there is any fraud or unexpected payments spotted. Some landlords, particularly of bedsits accept plain old cash, however that's not recommended as there is no trace of it being paid, which could lead to legal disputes.\"",
"title": ""
},
{
"docid": "75afbb044a044305e7c497e1093aa9a4",
"text": "In order to arrive at a decision you need the numbers: I suggest a spreadsheet. List the monthly and annual costs (see other responses). Then determine what the market rate for rental. Once you have the numbers it will be clear from a numbers standpoint. One has consider the hassle of owning property from a distance, which is not factored into the spreadsheet",
"title": ""
},
{
"docid": "c5418a183ba63cd8d28a292d6aae000b",
"text": "In such cases, it has a EIN, like any business would. Even absent the rent you suggest, the condo should have reserve funds, similar to an individual's emergency account, only more codified as to level and flows. These funds should be earning interest.",
"title": ""
},
{
"docid": "cf60d6c3f98bdfe60fe02e3a4d9ce7e3",
"text": "\"Apologize - replied without actually looking at the financials. After reviewing -- Starbuck's financial statements use the line item \"\"Cost of sales including occupancy costs.\"\" This is very different than \"\"hiding\"\" rent in COGS, as they plainly describe what it represents. Anyone who wants to derive true cost of goods sold without occupancy costs can look in the footnotes of the financials to find the lease expense for the year and subtract it. This line item is used by multiple public companies (Whole Foods is one that comes to mind), and regardless of their true motives, they have convinced the SEC that they think it gives the consumer the most accurate view of their business operations. As with all financial statements, the footnotes play a crucial role in understanding how a business works. If you want to find opportunities for future value or an Achilles heel, look in the notes.\"",
"title": ""
},
{
"docid": "9c70ada0fb9fa73631df94b4b4ed6a3f",
"text": "\"You are doing Great! But you might want to read a couple of books and do some studying on budgeting and personal finance - education yourself now and you will avoid pain in the future. I learned a lot from reading Dave Ramsey's Total Money Makeover, and I have found some great advice from the simple budgeting guidelines on LearnVest. Budget in these three categories with these percentages, You may find that your \"\"essentials\"\" lower than 50%, because you are sharing room and utilities. You want to put as much into \"\"financial\"\" as you can for the first 1-2 years, to reduce (or eliminate) your student loan debt. Many folks will recommend you save six months (salary/expenses) for emergencies and unexpected situations. But understand that you are in debt now, and you have a unique opportunity to pay off your debt before your living expenses creep up (as they so often do). Since you are a contractor, put aside 2 months expenses (twice what I would normally advise), and then attack paying off your debts with passion. Since you have a mix of student loans, focus on paying them off by picking one at a time, paying the minimum against the others while you pay off the one you picked, then proceed to the next. Dave Ramsey advises a Debt Snowball, paying the smallest one first (psychological advantage, early wins), while others advise paying the highest interest off first. Since you have over $2400/month available to pay down debt, you could plan on reducing your student loan debt substantially in a year. But avoid accumulating other debt along the way. Save for larger purchases. Your bedroom purchase may have been premature, but you needed some basics. But check your contract. Since many 0% furniture loan deals retroactively charge interest if you don't pay them off in full - you might want to make regular payments, and pay the debt off a month early (avoid any 'gotcha's). You might want to open a retirement account - many folks recommend a Roth account for folks your age - it is after tax, but you don't pay tax when you withdraw money. Roth is better when you have lots of deductions (think mortgage, kids). But some retirement account would be great to get started. Open a credit union account (if you can), that will make getting a credit card or personal loan (installment) easier. You want to build a credit file, but you don't want credit card debt (seems contradictory), so opening 2 credit cards over the next year will help your credit. You want a good credit mix (student loans, revolving, installment, and mortgage - wait on that one).\"",
"title": ""
},
{
"docid": "6a811ba05b575681ba2d20adffe6a2fc",
"text": "This is something you are going to have to work out with the leasing company because your goal is to get them to make an exception to their normal rules. I'm a little surprised they wouldn't take 6 months pre-payment, plus documentation of your savings. One option might be to cash in the bonds (since you said they are mature), deposit them in a savings account, and show them your account balance. That documentation of enough to pay for the year, plus an offer to pay 6 months in advance would be pretty compelling. Ask the property manage if that's sufficient. And if the lease is for one year and you're willing to pay the entire year in advance, I can't see how they would possibly object. If your employment prospects are good (show them your resume and explain why you are moving and what jobs you are seeking) a smart property manager would realize you'll be an excellent, low-risk tenant and will make an effort to convince the parent company that you should live there.",
"title": ""
},
{
"docid": "fe638c47505fa844419fd4a4523d8fb8",
"text": "\"A person can finance housing expenses in one of two ways. You can pay rent to a landlord. Or you can buy a house with a mortgage. In essence, you become your own landlord. That is, insta the \"\"renter\"\" pays an amount equal to the mortgage to insta the \"\"landlord,\"\" who pays it to the bank to reduce the mortgage. Ideally, your monthly debt servicing payments (minus tax saving on interest) should approximate the rent on the house. If they are a \"\"lot\"\" more, you may have overpaid for the house and mortgage. The advantage is that your \"\"rent\"\" is applied to building up equity (by reducing the mortgage) in your house. (And mortgage payments are tax deductible to the extent of interest expense.) At the end of 30 years, or whatever the mortgage term, you have \"\"portable equity\"\" in the form a fully paid house, that you can sell to move another house in Florida, or wherever you want to retire. Sometimes, you will \"\"get lucky\"\" if the value of the house skyrockets in a short time. Then you can borrow against your appreciation. But be careful, because \"\"sky rockets\"\" (in housing and elsewhere) often fall to earth. But this does represent another way to build up equity by owning a house.\"",
"title": ""
},
{
"docid": "ce75620806f026d3c49c678265b60c92",
"text": "I use a spreadsheet for that. I provide house value, land value, closing/fix-up costs, mortgage rate and years, tax bracket, city tax rate, insurance cost, and rental income. Sections of the spreadsheet compute (in obvious ways) the values used for the following tables: First I look at monthly cash flow (earnings/costs) and here are the columns: Next section looks at changes in taxable reported income caused by the house, And this too is monthly, even though it'll be x12 when you write your 1040. The third table is shows the monthly cash flow, forgetting about maintenance and assuming you adjust your quarterlies or paycheck exemptions to come out even: Maintenance is so much of a wildcard that I don't attempt to include it. My last table looks at paper (non-cash) equity gains: I was asked how I compute some of those intermediate values. My user inputs (adjusted for each property) are: My intermediate values are:",
"title": ""
},
{
"docid": "18cb1c1a05f67853bb594568740c7fa2",
"text": "\"No magic answers here. Housing is a market, and the conditions in each local market vary. I think impact on cash flow is the best way to evaluate housing prices. In general, I consider a \"\"cheap\"\" home to cost 20% or less of your income, \"\"affordable\"\" between 20-30% and \"\"not affordable\"\" over 30%. When you start comparing rent vs. buy, there are other factors that you need to think about: Renting is an easy transaction. You're comparing prices in a market that is usually pretty stable, and your risk and liability is low. The \"\"cost\"\" of the low risk is that you have virtually no prospects of recouping any value out of the cash that you are laying out for your home. Buying is more complex. You're buying a house, building equity and probably making money due to appreciation. You need to be vigilant about expenses and circumstances that affect the value of your home as an investment. If you live in a high-tax state like New York, an extra $1,200 in property taxes saps over $16,000 of buying (borrowing) power from a future purchaser of your home. If your HOA or condo association is run by a pack of idiots, you're going to end up paying through the nose for their mistakes. Another consideration is your tastes. If you tend to live above your means, you're not going to be able to afford necessary maintenance on the house that you paid too much for.\"",
"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": "b5adc69cca3d027f18083e62afca7523",
"text": "From the apartment owners perspective what was the purpose of $300? They promised they wouldn't rent it to somebody before you had a chance to see it. But lets say you did see it, and decided you didn't like the view. Would they have to give the money back? if so, why would they promise not to rent it if somebody showed up first? I would have made it clear, as the owner, what the money was for. It was a $300 fee to delay rental. You would have essentially bought x number of days of delay. You could view it as a mini-short-term rental. Of course there should have been paperwork involved. There should have been been a receipt that at least mentioned the amount of money involved. You may need to pay the amount owed, and may need to determine if you want to sue in small claims court. Of course your agent may have some liability based on your contract with them and any paperwork they signed when the money was sent to the owner. The fact that the bank sided with you doesn't mean the courts will.",
"title": ""
},
{
"docid": "2d20c592fe9b767d533c4d7ac614c12e",
"text": "The bare minimum should be 6-months of expenses. Ideally, it should be at least 1 year. My personal preference is 2+ years, but one thing at a time. Figure out your necessary expenses: food, shelter, transportation and necessary extras. An example of a necessity, beyond the basics, for me is a decent internet connection. Telephone costs is another good example. (Meanwhile, electricity and such bills should be included in the figure for shelter.) You may want to include some allowance for clothing as well; especially for the 2+ year plan.",
"title": ""
},
{
"docid": "ff94a74f6bff825a00d09b2a42624887",
"text": "\"Have her chip in for the regular expenses, utilities, food, etc., and a bit for \"\"rent.\"\" Then tell her to be sure to deposit to her retirement account, preferably a matched 401(k). It's admirable to want her to build 'equity' but it's pretty convoluted. You can't actually give her ownership, and in the event you break up (I know you won't, but this is to help other readers) you'll have to pay her back a lump sum when she moves out. That might not be so easy.\"",
"title": ""
},
{
"docid": "2569fe4820d2f35649876d2d8d5144e1",
"text": "Exactly, if you can afford the rent on a $1500-2K a month apartment in SO-CA-TOA and were able to pass the credit check for it, no question you can afford a 30 year on a $250K house. Trouble is that $250K houses are now closer to $400-500K in the cities that pay enough for millennials to afford a $2K a month apartment.",
"title": ""
}
] |
fiqa
|
d579a54e44b8b5f105a22b2154463765
|
Online tutorials for calculating DCF (Discounted Cash Flow)?
|
[
{
"docid": "75a0733bd9cb8aa9b7ca1bc98780f9f2",
"text": "\"Here's a link to an online calculator employing the Discounted Cash Flow method: Discounted Cash Flows Calculator. Description: This calculator finds the fair value of a stock investment the theoretically correct way, as the present value of future earnings. You can find company earnings via the box below. [...] They also provide a link to the following relevant article: Investment Valuation: A Little Theory. Excerpt: A company is valuable to stockholders for the same reason that a bond is valuable to bondholders: both are expected to generate cash for years into the future. Company profits are more volatile than bond coupons, but as an investor your task is the same in both cases: make a reasonable prediction about future earnings, and then \"\"discount\"\" them by calculating how much they are worth today. (And then you don't buy unless you can get a purchase price that's less than the sum of these present values, to make sure ownership will be worth the headache.) [...]\"",
"title": ""
},
{
"docid": "081512f0aaafbef6ec324b5e271c4821",
"text": "\"Check out Professor Damodaran's website: http://pages.stern.nyu.edu/~adamodar/ . Tons of good stuff there to get you started. If you want more depth, he's written what is widely considered the bible on the subject of valuation: \"\"Investment Valuation\"\". DCF is very well suited to stock analysis. One doesn't need to know, or forecast the future stock price to use it. In fact, it's the opposite. Business fundamentals are forecasted to estimate the sum total of future cash flows from the company, discounted back to the present. Divide that by shares outstanding, and you have the value of the stock. The key is to remember that DCF calculations are very sensitive to inputs. Be conservative in your estimates of future revenue growth, earnings margins, and capital investment. I usually develop three forecasts: pessimistic, neutral, optimistic. This delivers a range of value instead of a false-precision single number. This may seem odd: I find the DCF invaluable, but for the process, not so much the result. The input sensitivity requires careful work, and while a range of value is useful, the real benefit comes from being required to answer the questions to build the forecast. It provides a framework to analyze a business. You're just trying to properly fill in the boxes, estimate the unguessable. To do so, you pore through the financials. Skimming, reading with a purpose. In the end you come away with a fairly deep understanding of the business, how they make money, why they'll continue to make money, etc.\"",
"title": ""
},
{
"docid": "d0c4460f43692954b0a086c354365cad",
"text": "what do you mean exactly? Do you have a future target price and projected future dividend payments and you want the present value (time discounted price) of those? Edit: The DCF formula is difficult to use for stocks because the future price is unknown. It is more applicable to fixed-income instruments like coupon bonds. You could use it but you need to predict / speculate a future price for the stock. You are better off using the standard stock analysis stuff: Learn Stock Basics - How To Read A Stock Table/Quote The P/E ratio and the Dividend yield are the two most important. The good P/E ratio for a mature company would be around 20. For smaller and growing companies, a higher P/E ratio is acceptable. The dividend yield is important because it tells you how much your shares grow even if the stock price stays unchanged for the year. HTH",
"title": ""
}
] |
[
{
"docid": "c0e0b365c44284f072a16b31557e837f",
"text": "I thought it was such a useful suggestion that I went ahead and created them. I'm sure you're not the only one who could derive some benefit from them, I know I will. http://www.investy.com/tools When I have some additional time, I will add the option for grace-periods, but for now I wanted to get them up so you could use the calculations as-is from the article. Enjoy. (Disclosure: I'm the founder of the site they are hosted on and I wrote the code for the calculators)",
"title": ""
},
{
"docid": "6ced8bdf8dd9ea79f75c2faf73ca36f9",
"text": "Happy to help. I always recommend you try and solve these types of problems by hand over financial calculators so that you can get a feel for how terms in the equation relate to one another. That's important while you're studying/learning. But for work--by all means you should use the fastest method, which is probably excel.",
"title": ""
},
{
"docid": "89d0451472da336c5b36dca90f59adb4",
"text": "Many good sources on YouTube that you can find easily once you know what to look for. Start following the stock market, present value / future value, annuities & perpetuities, bonds, financial ratios, balance sheets and P&L statements, ROI, ROA, ROE, cash flows, net present value and IRR, forecasting, Monte Carlo simulation (heavy on stats but useful in finance), the list goes on. If you can find a cheap textbook, it'll help with the concepts. Investopedia is sometimes useful in learning concepts but not really on application. Khan Academy is a good YouTube channel. The Intelligent Investor is a good foundational book for investing. There are several good case studies on Harvard Business Review to practice with. I've found that case studies are most helpful in learning how to apply concept and think outside the box. Discover how you can apply it to aspects of your everyday life. Finance is a great profession to pursue. Good luck on your studies!",
"title": ""
},
{
"docid": "1ebc364846535cd64021290e9b7af494",
"text": "You could create your own spreadsheet of Cash Flows and use the XIRR function in Excel: The formula is:",
"title": ""
},
{
"docid": "e7973c465d42af9e800720223b3f970c",
"text": "Stop with all the stupid big words. You sound really pretentious. Just learn your 3 statements from accounting coach and learn statement analysis from streetofwalls. If you're interested into valuation, streetofwalls is a good primer for DCF/public comps/M&A comps/scenario analysis (LBO), but if you want to literally build out the model, Joshua Rosenbaum's investment banking valuation book is great. Everyone in banking I know used it to learn valuation",
"title": ""
},
{
"docid": "70591461ef9fce7e7b32b7b259bf14f6",
"text": "The quant aspect '''''. This is the kind of math I was wondering if it existed, but now it sounds like it is much more complex in reality then optimizing by evaluating different cost of capital. Thank you for sharing",
"title": ""
},
{
"docid": "9d77881dc3d8a425eeea4703c169e0b3",
"text": "\"First, don't use Yahoo's mangling of the XBRL data to do financial analysis. Get it from the horse's mouth: http://www.sec.gov/edgar/searchedgar/companysearch.html Search for Facebook, select the latest 10-Q, and look at the income statement on pg. 6 (helpfully linked in the table of contents). This is what humans do. When you do this, you see that Yahoo omitted FB's (admittedly trivial) interest expense. I've seen much worse errors. If you're trying to scrape Yahoo... well do what you must. You'll do better getting the XBRL data straight from EDGAR and mangling it yourself, but there's a learning curve, and if you're trying to compare lots of companies there's a problem of mapping everybody to a common chart of accounts. Second, assuming you're not using FCF as a valuation metric (which has got some problems)... you don't want to exclude interest expense from the calculation of free cash flow. This becomes significant for heavily indebted firms. You might as well just start from net income and adjust from there... which, as it happens, is exactly the approach taken by the normal \"\"indirect\"\" form of the statement of cash flows. That's what this statement is for. Essentially you want to take cash flow from operations and subtract capital expenditures (from the cash flow from investments section). It's not an encouraging sign that Yahoo's lines on the cash flow statement don't sum to the totals. As far as definitions go... working capital is not assets - liabilities, it is current assets - current liabilities. Furthermore, you want to calculate changes in working capital, i.e. the difference in net current assets from the previous quarter. What you're doing here is subtracting the company's accumulated equity capital from a single quarter's operating results, which is why you're getting an insane result that in no way resembles what appears in the statement of cash flows. Also you seem to be using the numbers for the wrong quarter - 2014q4 instead of 2015q3. I can't figure out where you're getting your depreciation number from, but the statement of cash flows shows they booked $486M in depreciation for 2015q3; your number is high. FB doesn't have negative FCF.\"",
"title": ""
},
{
"docid": "11bf7e54ddc4e7c2844243fea04bbcb9",
"text": "I feel like IRR is the tool you want to use for this, then you can look at your output and determine if it's higher than what your discount rate is likely to be. Similarly, you can just do a traditional NPV analysis and then examine the sensitivity by changing the discount rate. If you're safely in profitable territory then you're probably fine despite not knowing the discount rate.",
"title": ""
},
{
"docid": "ba7bf795e580e31b8c830138b431da26",
"text": "The IRR is the Discount Rate r* that makes Net Present Value NPV(r*)==0. What this boils down to is two ways of making the same kind of profitability calculation. You can choose a project with NPV(10%)>0, or you can choose based on IRR>10%, and the idea is you get to the same set of projects. That's if everything is well behaved mathematically. But that's not the end of this story of finance, math, and alphabet soup. For investments that have multiple positive and negative cash flows, finding that r* becomes solving for the roots of a polynomial in r*, so that there can be multiple roots. Usually people use the lowest positive root but really it only makes sense for projects where NPV(r)>0 for r<r* and NPV(r)<0 for r>r*. To try to help with your understanding, you can evaluate a real estate project with r=10%, find the sum future discounted cash flows, which is the NPV, and do the project if NPV>0. Or, you can take the future cash flows of a project, find the NPV as a function of the rate r, and find r* where NPV(r*)==0. That r* is the IRR. If IRR=r*>10% and the NPV function is well behaved as above, you can also do the project. When we don't have to worry about multiple roots, the preceding two paragraphs will select the same identical sets of projects as meeting the 10% return requirement.",
"title": ""
},
{
"docid": "d0f013cb3f6e5e8f6175286a974da69f",
"text": "\"By the sounds of things, you're not asking for a single formula but how to do the analysis... And for the record you're focusing on the wrong thing. You should be focusing on how much it costs to own your car during that time period, not your total equity. Formulas: I'm not sure how well you understand the nuts and bolts of the finance behind your question, (you may just be a pro and really want a consolidated equation to do this in one go.) So at the risk of over-specifying, I'll err on the side of starting at the very beginning. Any financial loan analysis is built on 5 items: (1) # of periods, (2) Present Value, (3) Future Value, (4) Payments, and (5) interest rate. These are usually referred to in spreadsheet software as NPER, PV, FV, PMT, and Rate. Each one has its own Excel/google docs function where you can calculate one as a function of the other 4. I'll use those going forward and spare you the 'real math' equations. Layout: If I were trying to solve your problem I would start by setting up the spreadsheet up with column A as \"\"Period\"\". I would put this label in cell A2 and then starting from cell A3 as \"\"0\"\" and going to \"\"N\"\". 5 year loans will give you the highest purchase value w lowest payments, so n=60 months... but you also said 48 months so do whatever you want. Then I would set up two tables side-by-side with 7 columns each. (Yes, seven.) Starting in C2, label the cells/columns as: \"\"Rate\"\", \"\"Car Value\"\", \"\"Loan Balance\"\", \"\"Payment\"\", \"\"Paid to Interest\"\", \"\"Principal\"\", and \"\"Accumulated Equity\"\". Then select and copy cells C2:I2 as the next set of column headers beginning in K2. (I usually skip a column to leave space because I'm OCD like that :) ) Numbers: Now you need to set up your initial set of numbers for each table. We'll do the older car in the left hand table and the newer one on the right. Let's say your rate is 5% APR. Put that in cell C1 (not C3). Then in cell C3 type =C$1/12. Car Value $12,000 in Cell D3. Then type \"\"Down Payment\"\" in cell E1 and put 10% in cell D1. And last, in cell E3 put the formula =D3*(1-D$1). This should leave you with a value for the first month in the Rate, Car Value, and Loan Balance columns. Now select C1:E3 and paste those to the right hand table. The only thing you will need to change is the \"\"Car Value\"\" to $20,000. As a check, you should have .0042 / 12,000 / 10,800 on the left and then .0042 / 20,000 / 18,000 on the right. Formulas again: This is where spreadsheets become amazing. If we set up the right formulas, you can copy and paste them and do this very complicated analysis very quickly. Payment The excel formula for Payment is =PMT(Rate, NPER, PV, FV). FV is usually zero. So in cell F3, type the formula =PMT(C3, 60, E3, 0). Obviously if you're really doing a 48 month (4 year) loan then you'll need to change the 60 to 48. You should be able to copy the result from cell F3 to N3 and the formula will update itself. For the 60 months, I'm showing the 12K car/10.8K loan has a pmt of $203.81. The 20K/18K loan has a pmt of 339.68. Interest The easiest way to calculate the interest is as =E3*C3. That's (Outstanding Loan Balance) x (Periodic Interest Rate). Put this in cell G4, since you don't actually owe any interest at Period 0. Principal If you pay PMT each month and X goes to interest, then the amount to principal is \"\"PMT - X\"\". So in H4 type =-F3 - G3. The 'minus' in front of F3 is because excel's PMT function returns a negative amount. If you want to, feel free to type \"\"=-PMT(...)\"\" for the formula that's actually in F3. It's your call. I get 159 for the amount to principal in period 1. Accumulated Equity As I mentioned in the comment, your \"\"Equity\"\" comes from your initial Loan-to-Value and the accumulated principal payments. So the formula in this cell should reflect that. There are a variety of ways to do this... the easiest is just to compare your car's expected value to your loan balance every time. In cell I3, type =(D3-E3). That's your initial equity in the car before making any payments. Copy that cell and paste it to I4. You'll see it updates to =(D4-E3) automatically. (Right now that is zero... those cells are empty, but we're getting there) The important thing is that as JB King pointed out, your equity is a function of accumulated principal AND equity, which depreciates. This approach handles those both. Finishing up the copy-and-paste formulas I know this is long, but we're almost done. Rate // Period 1 In cell C4 type =C3. Payment // Period 1 In cell F4 type =F3. Loan Balance // Period 1 In cell E4 type =E3-H4. Your loan balance at the end of period is reduced by the principal you paid. I get 10,641. Car Value // Period 1 This will vary depending on how you want to handle depreciation. If you ignore it, you're making a major error and it's not worth doing this entire analysis... just buy the prettiest car and move on with life. But you also don't have to get it scientifically accurate. Go to someplace like edmunds.com and look up a ballpark. I'm using 4% depreciation per year for the old (12K) car and 7% for the newer car. However, I pulled those out of my ass so figure out what's a better ballpark. In G1 type \"\"Depreciation\"\" and then put 4% in H1. In O1 type \"\"Depreciation\"\" and then 7% in P1. Now, in cell D4, put the formula =D3 * (1-(H$1/12)). Paste formulas to flesh out table As a check, your row 4 should read 1 / .0042 / 11,960 / 10,641 / 203.81 / 45 / 159 / 1,319. If so, you're great. Copy cells C4:I4 and paste them into K4:Q4. These will update to be .0042 / 19,883 / 17,735 / 339.68 / 75 / 265 / 2,148. If you've got that, then copy C4:Q4 and paste it to C5:C63. You've built a full amortization table for your two hypothetical loans. Congratulations. Making your decision I'm not going to tell you what to decide, but I'll give you a better idea of what to look at. I would personally make the decision based on total cost to own during that time period, plus a bit of \"\"x-factor\"\" for which car I really liked. Look at Period 24, in columns I and Q. These are your 'equities' in each car. If you built the sheet using my made-up numbers, then you get \"\"Old Car Equity\"\" as 4,276. \"\"New Car Equity\"\" is 6,046. If you're only looking at most equity, you might make a poor financial decision. The real value you should consider is the cost to own the car (not necessarily operate it) during that time... Total Cost = (Ending Equity) - (Payment x 24) - (Upfront Cash). For your 'old' car, that's (4,276) - (203.81 * 24) - (1,200) = -1,815.75 For the 'new' car, that's (6,046) - (339.68 * 24) - (2,000) = -4,106.07. Is one good or bad? Up to you to decide. There are excel formulas like \"\"CUMPRINC\"\" that can consolidate some of the table mechanics, but I assumed that if you're here asking you would have gotten stuck running some of those. Here's the spreadsheet: https://docs.google.com/spreadsheet/ccc?key=0Ah0weE0QX65vdHpCNVpwUzlfYjlTY2VrNllXOS1CWUE#gid=1\"",
"title": ""
},
{
"docid": "fdb0d925b58ea2b1b9af8fe85c545a4c",
"text": "E&P can be valid throug Net Present Value methods, on a field-by-field basis. As no field is ever-lasting, and there Are not an unlimited number of fields, perpetuity-formulaes Are shitty. FCFF on a per-field basis with WC and Capex, with a definite lifetime. Thank you for the compliment.",
"title": ""
},
{
"docid": "760403fc809bf4c0a7b1bf52e3218fba",
"text": "Does it teach anything else other than the DCF approach? I've already learned that in on of my financing courses. I'm more interested in the more exotic valuation techniques, and how to use and weigh multiple techniques for valuation.",
"title": ""
},
{
"docid": "d304ada0eec7878085696ff363929bd9",
"text": "\"To calculate the balance (not just principal) remaining, type into your favorite spreadsheet program: It is important that the periods for \"\"Periods\"\" and \"\"Rate\"\" match up. If you use your annual rate with quarterly periods, you will get a horribly wrong answer. So, if you invest $1000 today, expect 6% interest per year (0.5% interest per month), withdraw $10 at the end of each month, and want to know what your investment balance will be 2 years (24 months) from now, you would type: And you would get a result of $872.84. Or, to compute it manually, use the formula found here by poster uart: This is often taught in high-school here as a application of geomentric series. The derivation goes like this. Using the notation : r = 1 + interest_rate_per_term_as_decimal p = present value a = payment per term eot1 denotes the FV at end of term 1 etc. eot1: rp + a eot2: r(rp + a) + a = r^2p + ra + a eot3: r(r^2p + ra + a) + a = r^3p + r^2a + ra + a ... eotn: r^np + (r^(n-1) + r^(n-2) + ... 1)a = p r^n + a (r^n - 1)/(r-1) That is, FV = p r^n + a (r^n - 1)/(r-1). This is precisely what exel [sic] computes for the case of payments made at the end of each term (payment type = 0). It's easy enough to repeat the calculations as above for the case of payments made at the beginning of each term. This won't work for changing interest rates or changing withdrawal amounts. For something like that, it would be better for you (if you don't want online calculators) to set up a table in a spreadsheet so you can adjust different periods manually.\"",
"title": ""
},
{
"docid": "f04fb092a2a8b06046799dcc5521819c",
"text": "\"Both models understand that the value of a company is the sum total of all cashflows in the future, discounted back to the present. They vary in their definition of \"\"cash\"\". The Gordon Growth model uses dividends as a proxy for cashflow, under the assumption that this is the only true cash received by shareholders. (In theory, counting cash is meaningless if there's no eventual end-game where the accumulated cash is divvied up amongst the owners.) The Gordon model is best used to value companies that have an established, reliable dividend. The company should be stable, and the payout ratio high. GG will underestimate the value of firms that consistently maintain a low payout ratio, and instead accumulate cash. There are multiple DCF models. A firm valuation measures all cash available to both equity and debt holders. A traditional equity valuation measures all cash that can be claimed by shareholders. While the latter seems most intuitive and pertinent to a shareholder, the former is very good at showing what a company can do regardless of their choice of capital structure. A small add-on to a firm valuation is the concept of EVA, or economic value add, where the return on capital (all capital -- both debt and equity) is compared to the blended cost of capital. The DCF model is more flexible (optimistic?) than the Gordon in its approach to cash. The approach can be applied to many types of companies, at every stage in their maturity, even if they don't pay a dividend. A simplistic, or single-stage DCF is similar to the Gordon. The assumption is that the company is fully mature, growing at a rate perhaps just slightly above inflation, forever. For younger companies a multi-stage DCF can be employed, where you forecast fairly confident numbers for the next 3-5 years, then 3-5 years beyond that the forecast is less certain, but assumed to be slowing growth, and a generally maturing, stabilizing company. And then the steady-state stage is tacked on to the end. You'll want to check out Professor Aswath Damodaran's website: http://pages.stern.nyu.edu/~adamodar/ . He addresses all this and so much more, and has a big pile of spreadsheets freely downloadable to get you started. I also highly recommend his book \"\"Investment Valuation\"\". It's the bible on the topic.\"",
"title": ""
},
{
"docid": "d96196ef83d94bf00b3b41436799afda",
"text": "**Using your Time Value of Money functions on your calculator** N = 3x2 = 6 PV = -914 PMT = (.16 x 1000)/2 = 80 FV = 1000 Compute I/Y Or **Step by step calculations** 1) Compute the PV of **(FV of Bond)**1000 in **(3x2)**6 periods at **(16%/2)**8% with no payments 2) Compute the PV of an Annuity of **(.16/2x1000)**$80 payments over **(3x2)**6 periods with an interest rate of **(16%/2)**8% and 0 Future Value 3) Combine the values from Steps 1 and 2",
"title": ""
}
] |
fiqa
|
30bdb0a25e6ed8589cf83decfaec8d3c
|
If accepting more than $10K in cash for a used boat, should I worry about counterfeiting?
|
[
{
"docid": "91ed2d056035a79ad74f3396e1a59ddc",
"text": "When you operate outside of the law, you bear the risks of that decision. When you operate within the law, you have a number of avenues, such as the courts and police to mediate disputes or other problems.",
"title": ""
},
{
"docid": "39a4cb00a0a621b7836cb43948f36ad5",
"text": "If you get counterfeit money, then you're dealing with the criminal who is going to be punished by the law for doing that. The portion of the total sum that was paid with the counterfeit currency is considered unpaid and you can claim the money from the criminal and sue him, while he's in jail. He'll work hard on those license plates to pay you off. However, making false statements and assisting in a tax evasion scheme compromises your ability to go to the law enforcement in case of any wrongdoing, and then you should worry about the counterfeit money, because the law won't be on your side to help you. And you don't even get anything out of it... Why on earth are you willing to take this risk? Just so you know, it may also be money laundering, which may get you in trouble even more with the law.",
"title": ""
},
{
"docid": "61c84c0c060ff124671df330fe85ec54",
"text": "I'd not do business under these terms. A bill of sale needs a signature, right? Your signature is your word, and your word is your bond. I wouldn't participate in such a fraud, nor would I accept this sum of cash, who knows its origins?",
"title": ""
},
{
"docid": "6a6835a11954cc0f37afcd219db475c0",
"text": "I'd worry more about falsifying documents of sale. No good reason at all to do that. Detecting counterfeit bills is easy if they're all new bills. Hold them up to the light and look for the watermark and the numbered tape in the bill. Refuse any bad ones.",
"title": ""
},
{
"docid": "a267f88078a1e0814649c590faee225f",
"text": "I'd be a bit concerned about someone who wanted to transact that large of a transaction in cash. Also consider what you are going to do with the funds, if you deposit it, you will need to tell the bank where it comes from. Why does the bank want to know, because most legal businesses don't transact business with large sums of currency.. What does that tell you about the likelihood the person you are about to do business with is a criminal or involved in criminal affairs? The lower bill of sale price might be more than just to dodge taxes, it could be part of money laundering.. If they can turn right around and 'sell' the boat for $10K, or trade it in on a bigger boat for the same amount, and have a bill than says $4K, then they have just come up with a legal explanation for how they made 6 grand. and you could potentially be considered an accomplice if someone is checking up on their finances. Really, is it worth the risk.",
"title": ""
},
{
"docid": "f4c9effc9b9bc9ac895d359b72a771fd",
"text": "\"Paying tax is a Good Thing. However, warren has made good point and I would like you to consider this other thing: Go into your payees bank with the payee, get the money withdrawn from the teller and take it with you. Unless I am missing something, or the teller handed your payee fake notes, you are \"\"safe\"\"\"",
"title": ""
},
{
"docid": "f66e25bacedbdcc71660c7a8b122bb2e",
"text": "The only issue I can see is that the stranger is looking to undervalue their purchase to save money on taxes/registration (if applicable in your state). Buying items with cash such as cars, boats, etc in the used market isn't all that uncommon* - I've done it several times (though not at the 10k mark, more along about half of that). As to the counterfeit issue, there are a couple avenues you can pursue to verify the money is real: *it's the preferred means of payment advocated by some prominent personal financial folks, including Dave Ramsey",
"title": ""
},
{
"docid": "e9fcbd976aafe88126a61f50631e4a8e",
"text": "I would not do a bill of sale for less, but a legal and safe way to reduce the taxes is to write separate bills for the boat, motor and trailer. The taxes are paid at different rates and will represent to full sale price.",
"title": ""
}
] |
[
{
"docid": "d4acc1a9edb2c7a9f30e843af3b6bbcf",
"text": "I wouldn't say this is a lie. Person 2 just made themselves the offer of 38k. If it sells then they were outbid. If it doesn't sell then they're stuck with the asset as if they had bid themselves. They're paying themselves, or they're representing a party that is paying themselves. That balances out to a $0 profit/loss + ownership of the asset. I think something like this would be unethical: Person 1: I'll buy your car for 30k Person 2: Okay Person 3:That's my car!",
"title": ""
},
{
"docid": "bb31aa53139708b7c3827e7e98a67dc2",
"text": "\"As others have noted, US law says that if you have over half the bill, it's worth the full value, under half is worth nothing. I presume if it is very close to half, if even careful measurements show that you have 50.5%, you'll have difficulty cashing it in, precisely because the government and the banking system aren't going to allow themselves to be easily fooled by someone cutting bills in half and then trying to redeem both halves. I've seen several comments on here about how you'd explain to the bank how so many bills were cut in half. What if you just told them the truth? Not the part about killing someone, of course, but tell them that you made a deal, neither of you wanted to bother with complex contracts and having to go to court if the other side didn't pay up, so your buddy cut all the bills in half, etc. As you now have both halves and they clearly have the same serial number, this no real evidence of fraud. Okay, this is technically illegal -- 18 US Code Section 333, \"\"Whoever mutilates, CUTS, defaces, disfigures, or perforates, or unites or cements together, or does any other thing to any bank bill, draft, note, or other evidence of debt issued by any national banking association, or Federal Reserve bank, or the Federal Reserve System, with intent to render such bank bill, draft, note, or other evidence of debt unfit to be reissued, shall be fined under this title or imprisoned not more than six months, or both.\"\" But you didn't do it, the other guy did. I presume the point of this law is to say that you can't get a hold of currency belonging to someone else and mutilate it so as to make it worthless. As he's now given you both halves, I doubt anyone would bother to track him down and prosecute him. Just BTW, while checking up on the details of the law, I stumbled across 18 USC 336, which says that it's illegal to write a check for less than $1, with penalties of 6 months in prison. I just got a check from AT&T for 15 cents for one of those class action suits where the lawyers get $100 million and the victims get 15 cents each. Apparently that was illegal.\"",
"title": ""
},
{
"docid": "5b9b2e9c08ae7722a8693d06c547ed4d",
"text": "\"The US Customs and Border Protection website states that there is no limit to the amount of currency that can be brought into or taken out of the US. There is no limit on the amount of money that can be taken out of or brought into the United States. However, if a person or persons traveling together and filing a joint declaration (CBP Form 6059-B) have $10,000 or more in currency or negotiable monetary instruments, they must fill out a \"\"Report of International Transportation of Currency and Monetary Instruments\"\" FinCEN 105 (former CF 4790). The CBP site also notes that failure to declare currency and monetary instruments in excess of $10,000 may result in its seizure. Further, the site states that the requirement to report currency on a FinCEN 105 does not apply to imports of gold bullion. However, the legal website The Law Dictionary includes details of how money laundering laws may come into play here : As part of the War on Terror and the War on Drugs, U.S. law enforcement agencies have significantly increased their vigilance over money laundering. To this effect, travelers who carry large amounts of cash without supporting documentation of its legitimate source may be subject to secondary inspections and seizure of funds. In some cases, law enforcement may confiscate cash in excess of $10,000 until supporting documents are produced. So far, I have described the \"\"official\"\" position. However, reading between the lines, I think it is fair to say that in the current climate if you show up at an entry point with a suitcase full of a large amount of cash you would face considerable scrutiny, regardless of any supporting documentation you may present. If you fail to present supporting documentation, then I think your cash would certainly be seized. If you are a US resident, then you would be given the opportunity to obtain satisfactory documentation. If you did present documentation, then I think your cash would be held for as long as it would take to verify the validity of the documentation. Failure to present valid documentation would result in money laundering charges being brought against you and the matter would rest before the courts. If you are not a US resident, then failing to produce supporting documentation would mean your cash being seized and entry into the US would almost certainly be denied. You would then have to deal with the situation from outside of the US. If you did produce supporting documentation, then again I suspect the cash would be held for as long as it takes to verify the validity of the documentation. Whether or not you were allowed to enter the US would depend on what other documentation you possess.\"",
"title": ""
},
{
"docid": "fe070ea6ae198fc4f3e308f45d363088",
"text": "If you sell counterfeit goods by claiming that they are real, you're no better than people that just straight up steal money without the pretense of 'business' If you sell counterfeit goods and acknowledge that they are counterfeit, you're in ethically better territory... but you're still taking an enormous legal risk that can't possibly be worth your middling profits.",
"title": ""
},
{
"docid": "289a45ffb14c8b0c60c33176908a22e0",
"text": "The reason this sort of question gets asked over and over again is because it's initially difficult to comprehend how you can possibly be scammed if you have no money in your bank account. Perhaps this would make it easier to understand: Someone approaches you in the parking lot of a mall and says, Excuse me, complete stranger, please take this $100 bill and go buy me a pair of $50 shoes at the shoe store. Then go buy whatever you'd like with the rest of the money. Sounds like a good deal, right? The $100 bill is counterfeit. If it were not, the person would buy the shoes themselves. It doesn't get any simpler than that.",
"title": ""
},
{
"docid": "b271a049ae22fd6bdb2c111d0e1dc938",
"text": "\"Here's what's going to happen: At the last minute, he's going to \"\"discover\"\" that for some reason first you must send him $10,000. He'll tell you not to worry, as he's still going to send you $40,000... now $50,000. In fact, he's going to tell you that he'll send you $60,000 and tell you to keep the $10,000 as a \"\"finders fee\"\". Then you will send him, $10,000 and he will walk away with your $10,000. You'll never hear from him again. This is a very common scam. The best way to avoid it is not to tell him you won't do it for IRS reasons. The best thing to do is to stop accepting email from him and (optionally) report him to law enforcement.\"",
"title": ""
},
{
"docid": "456c1399b8629f00c658ad7617c2ead5",
"text": "It's got every sign of a scam. Signatures are needed on contracts, so you should only place them on below one. Free money sounds too good to be true. Money evading banks is a typical sign of money laundering; why are they trying to avoid paper trails? The normal way to gift money is to just hand it over or pay it to a bank account. If anything, you sign a tax declaration, but you would send that to the taxman yourself.",
"title": ""
},
{
"docid": "4611b10dcda9bdcf2a448ddfd061e57b",
"text": "http://www.consumerismcommentary.com/buying-house-with-cash/ It looks like you can, but it's a bad idea because you lack protection of a receipt, there's no record of you actually giving the money over, and the money would need to be counted - bill by bill - which increases time and likelihood of error. In general, paying large amounts in cash won't bring up any scrutiny because there's no record. How can the IRS scrutinize something that it can't know about? Of course, if you withdraw 200k from your bank account, or deposit 200k into it then the government would know and it would certainly be flagged as suspicious.",
"title": ""
},
{
"docid": "45ffc7734227178f09bd70790a4af370",
"text": "Probably more if the interest rate is above 0%. If it's too much, just pay span the payments longer, or get a cheaper car. Nice thing, assuming you keep it bone stock (or even tastefully modded, or even fully modded), you'll have no problem selling to some rich teenager. They hold their value.",
"title": ""
},
{
"docid": "1db55aaa59f167ad133ccc4f13460d5f",
"text": "According to this study put out this year by Judson and Porter, the face value of counterfeit currency relative to the total amount in circulation is about 0.01%: We conclude that the total value of counterfeits in circulation at any moment is on the order of $60 to $80 million, or less than $1 for every $10,000 outstanding, and is highly unlikely to exceed $220 million, or less than $3 for every $10,000 in circulation. Further, we conclude that the incidence of counterfeits is roughly the same inside and outside the United States ... Actual numbers from five years ago suggest about the same: Out of the approximately $759 billion in U.S. dollars held in U.S. currency in the form of banknotes (paper currency) in circulation outside the U.S. Treasury and the Federal Reserve at the end of 2005, the Secret Service reported that about $61 million in counterfeit currency was passed on the public worldwide. Of the counterfeit currency passed, the majority, $56.2 million, was passed in the United States, with the remainder passed abroad. As to why they're checking: Would you want to receive a counterfeit bill? Costco checks my cash when I check out. The guy I got a buggy ride from up in upstate New York checked my bill. It's easy to check certain things on the bill. Why not?",
"title": ""
},
{
"docid": "9cecaef577bdf6b7e09a8f6da5ee2d11",
"text": "The $10,000 mark is not a ceiling in importing cash, but rather a point where an additional declaration needs to be made (Customs Form 4790). At 1 million, I suspect you might be in for a bit of an interview and delay. Here's an explanation of what happens when the declaration isn't made: https://www.cbp.gov/newsroom/local-media-release/failure-declare-results-seizure-24000-arrest-two",
"title": ""
},
{
"docid": "6cec0fbc02f791ad8baf221e975ecc00",
"text": "Bank-to-Bank wire transfer would be the best option. Dollar is going up nowadays, so if he brought the money not so long ago he might even earn the cost of the transfers back through the difference of the exchange rates. Re the IRS - they don't care. Same goes to the Israeli Tax Authority. What you and your friend need to show, if asked, is the paper trail. I.e.: if he brought you the $10K in cash - that may be an issue unless he kept all the receipts for getting it. But for such a low amount you can always resort to claiming it is a gift from you, in this case.",
"title": ""
},
{
"docid": "b8e66b2d15e7441db3f126594aa65b42",
"text": "In the US, the bank is legally required to report any cash transactions over 10k$ to the government. This normally has no consequences, and you will never hear about it. No need to worry about it. If the amount is very high, or you do it repeatedly, or the government has other (pre-existing) reasons to look at your finances sharply, they might ask you where the money came from and what you did with it, but your explanation is perfectly fine (assuming it is true). The idea is to catch money-launderers that try to get large illegal cash incomes into the banking system. Classic example is the drug lord who makes a million a month in cash from selling drugs, and needs to get this million into the banks (as you can't buy houses or luxury cars or yachts with cash without getting FBI attention right away).",
"title": ""
},
{
"docid": "b3ccba376cef3f12a8bad4fc3558abc8",
"text": "This may sound a little crazy but I would take $5K of that money and buy whiskey with it (Jack Daniel's would be my preference). My guess is that in 5 years that whiskey will be worth more than the $10K you put in the bank. I just can't see how the dollar survives the next 5 years without a major downward adjustment. If I'm wrong then you have a nice party and give whiskey for Christmas gifts. If I'm right at least you will have some savings instead of $15K of useless dollars. Here is my justification for converting your US dollars into tangible assets. Do you really think the money printing will ever stop?",
"title": ""
},
{
"docid": "ccad5df003233c9e6cdffdce3837c9a4",
"text": "\"Speculation is when someone else makes an investment you don't like. The above is tongue in cheek, but is a serious answer. There are several attempts at separating the two, but they turn into moral judgements on the value of a pure \"\"buy and hold\"\" versus any other investment strategy (which is itself doubtful: is shorting an oil stock more \"\"speculation\"\" than buying and holding an alternative energy stock?). Some economists take the other route and just argue that we should remove the moral judgement and celebrate speculation as we celebrate investment.\"",
"title": ""
}
] |
fiqa
|
5b4afb2cb2f4d15a90920c5cbf38bfc3
|
How to pick a state to form an LLC in?
|
[
{
"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": "420bdfb40a54706409ebf250ca7da92c",
"text": "\"Generally, you pick the State which you're located at, because you'll have to register your LLC there in any case. In your case that would be either Colorado or Oklahoma - register as domestic in one, as foreign in the other. If your concern is anything other than mere convenience/costs - then you need to talk to a lawyer, however most State LLC laws are fairly alike (and modeled after the \"\"Uniform Limited Liability Company Act\"\". Keep in mind that most of the sites talking about \"\"forming LLC out of state\"\" are either sales sites or targeted to foreigners attempting to form a US company. All the cr@p you hear about forming in Delaware/Nevada/Wyoming - is useless and worthless for someone who's a resident of any of the US States. If you're a US resident - you will always have to register in the State you're located at and do the work at, so if you register elsewhere - you just need to register again in your home State. In your case you already span across States, so you'll have to register in two States as it is - why add the costs of registering in a third one?\"",
"title": ""
}
] |
[
{
"docid": "63978fd23fe40497cf25247eafd5fd6c",
"text": "Many enterprise owners inside the United States select to form their enterprise as a Delaware LLC because of the felony advantages from the state’s predictable enterprise friendly legal guidelines. Delaware LLC formation is easy, too — there's no need to visit the kingdom and minimal data is needed to form your LLC in Delaware. The method may be accomplished online; IncNow can assist shape a Delaware LLC in your enterprise in just five mins. You can form an LLC in Delaware without visiting, opening an office, or maintaining a bank account in Delaware.",
"title": ""
},
{
"docid": "0c91abc4aaaca3434d8bb14a201d03a7",
"text": "Making a game is hard enough, focus on that. If/when you start getting close to having something to sell, then if you're serious and want the company to grow into a full time venture, briefly consult with a lawyer and possibly accountant to set this up. It will save you a lot of time researching what you have to do and a lot of headache from potentially doing things wrong. If you want to try to do it on your own, I'd recommend getting a book on starting a business because there is more to know than a single post can cover. You'll probably have to file for a DBA (doing business as) at your city hall in order to be allowed to refer to yourself as the name of your company (otherwise you have to use your personal name). Initiating that will likely initiate annual business taxes in your town in addition to the cheap filing fee. You also want to consider how you will handle trademark (of your business and game) and copyright (of your game). If this is going to grow, you'll have to have contracts written for either employees or for freelancers who might produce assets for you. You may also need to consider writing an EULA for your game, privacy policies, etc. Additionally, you'll likely have to file with your state to collect and send sales tax. You'll also want to meticulously track costs and revenue related to your business. Formally starting a business will likely open you up to property, sales and income tax. For example, where I am, was even taxed on the equipment the business uses (e.g. computers). This is why it makes sense to wait until you're closer to having a product before you try to formally start a business and to consult with professionals on the best way. The type of business you should form will depend on the scope you plan for the company and the amount of time/money you're willing to put in. A sole proprietorship (what you are by default) means there is no difference legally/financially between you as an individual and you as a company. This may be suitable if this is just a hobby, but not if you intend it to grow because that means any lawsuit directed at your company and its money is also directed at you and your money. The differences between an LLC and corporation are more nuanced and involve differences in legal and tax treatment, however, they both shield you from the previously mentioned problem. If you want this to be more than a hobby you should form either an LLC or a corporation. Do some research on the differences and how they might apply to you and in your state.",
"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": "363e48c2324326a292452607abe56965",
"text": "Short Answer: Go to the bank and ask them about your options for opening a business account. Talk to an attorney about the paperwork and company structure and taxes. Long Answer: You and your buddies jointly own an unincorporated business. This is called a partnership. Yes, there is paperwork involved in doing it properly and the fact that you guys are minors might complicate that paperwork a little bit. In terms of what type of account to open: A business account! Running a business through a personal account (joint or otherwise) is a sure way to get that account shut down. Your bank will want to know the structure of the business, and will require documentation to support that. For a partnership, they will probably want a copy of the partnership agreement. For an LLC, they'll probably want a copy of the filing with Ohio Secretary of State as well as the operating agreement etc. That said, pop into a local bank and ask a business banker directly what you should do. They deal with new businesses all the time, and would probably be best qualified to help you figure out the bank account aspect of it. Regarding business structure... this really impacts a lot more than just the type of bank account to open and how you file your taxes. It is something you guys should really discuss with an attorney. What happens if down the road one of you quits? What happens if you want to bring in a new partner later? What if there is a disagreement about something? These are all things that the attorney can help you address ahead of time - which is a heck of a lot easier (and cheaper) than trying to figure it out later. You're brining in enough that you should certainly be able to buy a couple hours of a lawyer's time. Getting the formation stuff right could save all of you a lot of money and heartache later.",
"title": ""
},
{
"docid": "6f1a08ddaabab1b83ced76dfa1bbe930",
"text": "Get another LLC. Not that hard and well worth it. I have one business endeavor but have 3 different LLC's to handle the three different aspects of it. That way, should something go wrong with one of the three (and it has in the past), I can kill it without hurting the entire operation. Then start another LLC to take over the aspect of the operation that was killed.",
"title": ""
},
{
"docid": "eb2a95119679e24f2467dcdd08ca9b5b",
"text": "Your question mixes up different things. Your LLC business type is determined by how you organize your business at the state level. Separately, you can also elect to be treated in one of several different status for federal taxation. (Often this automatically changes your tax status at the state level too, but you need to check that with your state tax authority.) It is true that once you have an EIN, you can apply to be taxed as a C Corp or S Corp. Whether or not that will result in tax savings will depend on the details of your business. We won't be able to answer that for you. You should get a professional advisor if you need help making that determination.",
"title": ""
},
{
"docid": "fc6c419b68f051b61e59669a64f83b2c",
"text": "I'd have a good look at how much anonymity an LLC offers in your state - as far as I'm aware this varies from state to state. Out here in NV an LLC owner's privacy is supposedly fairly well protected, but in other states, not quite as much. Also keep in mind that while the LLC offers some protection (and I'm a big advocate of this sort of structure if you're taking larger risks that might have a big impact on your overall personal finances), this might not apply to financing. A lot of banks tend to require an LLC's owner to guarantee loans to an LLC once they go over a certain amount or even in general. Do some research in this area because the LLC would be worth less as a protective shield to you if you're on the hook for the full amount of the loans anyway.",
"title": ""
},
{
"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": "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": "8c53d1b2149e29a06ade529876aca990",
"text": "An LLC is a very flexible company when it comes to taxation. You have three basic tax options: There are other good reasons to create an LLC (mainly to protect your personal assets) so even if you decide that you don't want to deal with the complications of an S-Corp LLC, you should still consider creating a sole proprietorship LLC.",
"title": ""
},
{
"docid": "58d5bec72003ce53ec409a690cb7298b",
"text": "\"If the single active member lives in California and works at home, then you likely need to register in CA and pay the annual $800 franchise tax. California is quite aggressive about enforcing registration of LLCs. A foreign LLC needs to register if it is \"\"doing business\"\" in California. Here is a blog post that covers it in some detail. It looks like you meet at least one of the criteria for doing business in California, such as:\"",
"title": ""
},
{
"docid": "28d9aa347dd6586e63001086f0a889da",
"text": "California is very aggressive when it comes to determining residency. While you have a legitimate defense, I suggest talking with a California-licensed CPA or EA practicing in California, which are experienced in dealing with the FTB residency audits.",
"title": ""
},
{
"docid": "362888dad7a489b2fecb115aab213605",
"text": "In this case not only that you must register in California (either as domestic, or as foreign if you decided to form elsewhere), you'll also be on the hook for back-taxes if you didn't do it from the start. FTB is notorious for going after out-of-state LLCs that Californians open in other States trying to avoid the $800 fee.",
"title": ""
},
{
"docid": "8c4898f903f252efd310e0f149accf0c",
"text": "If you have a new company and you want to attract investors, such as venture capitalists and private equity, incorporating in Delaware LLC probably makes sense. There are actually many investors who will only invest in a Delaware Online incorporation, so starting off by creating a Delaware corporation from the beginning may save a lot of money and stress down the road. You can also choose to form an LLC in Delaware, to begin with, then convert it to a C corporation later.",
"title": ""
},
{
"docid": "c04235b74285a44bf3c488e03b1adb7e",
"text": "\"Wyoming is a good state for this. It is inexpensive and annual compliance is minimal. Although Delaware has the best advertising campaign, so people know about it, the reality is that there are over 50 states/jurisdictions in the United States with their own competitive incorporation laws to attract investment (as well as their own legislative bodies that change those laws), so you just have to read the laws to find a state that is favorable for you. What I mean is that whatever Delaware does to get in the news about its easy business laws, has been mimicked and done even better by other states by this point in time. And regarding Delaware's Chancery Court, all other states in the union can also lean on Delaware case law, so this perk is not unique to Delaware. Wyoming is cheaper than Delaware for nominal presence in the United States, requires less information then Delaware, and is also tax free. A \"\"registered agent\"\" can get you set up and you can find one to help you with the address dilemma. This should only cost $99 - $200 over the state fees. An LLC does not need to have an address in the United States, but many registered agents will let you use their address, just ask. Many kinds of businesses still require a bank account for domestic and global trade. Many don't require any financial intermediary any more to receive payments. But if you do need this, then opening a bank account in the United States will be more difficult. Again, the registered agent or lawyer can get a Tax Identification Number for you from the IRS, and this will be necessary to open a US bank account. But it is more likely that you will need an employee or nominee director in the United States to go in person to a bank and open an account. This person needs to be mentioned in the Operating Agreement or other official form on the incorporation documents. They will simply walk into a bank with your articles of incorporation and operating agreement showing that they are authorized to act on behalf of the entity and open a bank account. They then resign, and this is a private document between the LLC and the employee. But you will be able to receive and accept payments and access the global financial system now. A lot of multinational entities set up subsidiaries in a number of countries this way.\"",
"title": ""
}
] |
fiqa
|
8d234ede99498abb0fb8eeb4d962147c
|
If a bank has a transfer limit, what happens if another bank pushes/pulls more than that?
|
[
{
"docid": "7b138186eaa370f17d473b616b4c8885",
"text": "If bank B has a transfer limit set, you bet that there is a nice reason for that. Either risk of fraud, liability, client preferences, profiling, credit scoring, etc, etc. For a bank, the cost of denying something [1] is way lower than the potential damages and liabilities of allowing something to go through. Regarding your concerns for the ACH, here is the summarized transaction walkthrough source: An Originator– whether that’s an individual, a corporation or another entity– initiates either a Direct Deposit or Direct Payment transaction using the ACH Network. ACH transactions can be either debit or credit payments and commonly include Direct Deposit of payroll, government and Social Security benefits, mortgage and bill payments, online banking payments, person-to-person (P2P) and business-to-business (B2B) payments, to name a few. Instead of using paper checks, ACH entries are entered and transmitted electronically, making transactions quicker, safer and easier. The Originating Depository Financial institution (ODFI) enters the ACH entry at the request of the Originator. The ODFI aggregates payments from customers and transmits them in batches at regular, predetermined intervals to an ACH Operator. ACH Operators (two central clearing facilities: The Federal Reserve or The Clearing House) receive batches of ACH entries from the ODFI. The ACH transactions are sorted and made available by the ACH Operator to the Receiving Depository Financial Institution (RDFI). The Receiver’s account is debited or credited by the RDFI, according to the type of ACH entry. Individuals, businesses and other entities can all be Receivers. Each ACH credit transaction settles in one to two business days, and each debit transaction settles in just one business day, as per the Rules. Take heed of this like: The Originator initiates a direct deposit/payment transaction. In your scenario, the originator would be B. But since the transaction amount is higher than the limit, B would not even initiate the ACH transaction. The request would be denied. So the transaction would look like this: [1] Usually this cost comes down to just the processing costs of the denied transaction (and it is rather fail-fast like). For the other parties involved it may have additional costs (missed deadlines, penalties for not fulfilling an obligation, fines, etc), but for the bank that is irrelevant.",
"title": ""
},
{
"docid": "b23ff02a9ae239a450ff9a158fb4b4b4",
"text": "Or at least I saw it do so with Bank of America.",
"title": ""
}
] |
[
{
"docid": "76bc67fb64cb88a385b240a90e7935ac",
"text": "I'd say it's a limitation of your bank. Every bank I've ever used had instant transfers between accounts at the same bank.",
"title": ""
},
{
"docid": "f1c3f6fb7361b508b4af80dc2e022a07",
"text": "\"After this happened the second time, I wonder if there could be a \"\"catch\"\" on this. No I mean, what is my bank's real motivation for allowing me to spend more money. Credit card companies make money in a few ways. By giving you a higher limit the credit card company hopes you will spend more on the card. This immediately gets them more merchant fees and if they are lucky means you will have to carry the balance for a while earning them interest. If they get really lucky you will miss a payment or two earning them some fees. Of course if they let you borrow too much you might never pay it back. So the credit limit is a balancing act. Letting you borrow more money gives them the potential to make more money but also the potential to lose more money. As you build up a history of paying as agreed they feel comfortable lending you more money.\"",
"title": ""
},
{
"docid": "411a0d4eb5c817cf575e82c2ed0d5c25",
"text": "It seems possible if the Euro is partially/entirely unwound that policies could be enacted to prohibit exactly this behavior, otherwise what will stop outflow to the stronger countries on a massive scale? (Thus amplifying the resulting decade-long clusterfuck) We've never had this situation in Europe before, and already for Greece and Spain there are suggestions to instigate withdrawal controls. It doesn't seem far fetched to imagine retroactive controls placed on private deposits in newly-foreign-currency banks. If I were concerned about the Euro's collapse I'd be more inclined to move assets out of the eurozone entirely",
"title": ""
},
{
"docid": "25acfc12627b8bc956a648b3eb673eb5",
"text": "So this method makes sense and is reasonable and possible. The money multiplier effect ends up capped by the fact that the bank can only lend a percent of its 'cash'. My issue understanding this is I've been told that banks actually don't hold 10% of the cash and lend the other 90% but instead hold the full 100% in cash and lend 900%. Is this accurate? The issue I see with it is that it becomes exponential growth that is uncapped. If the bank lends 900%, it has created this money from nothing, which by itself isn't different that the bank loaning 90% and keeping 10%. The issue comes because the next bank who gets that money deposited will treat that amount as cash as well, so they loan 900% of the 900%. And so on and so forth. How does the system prevent this from happening?",
"title": ""
},
{
"docid": "df4f61b877d8a4b2a47ea5f22cfe2168",
"text": "\"Let's divide all bank accounts into savings and checking. The main difference is that checking is easy to get money from; savings is hard to get money from. Because of this, the federal Reserve requires that banks keep more money on hand to cover transactions in checking accounts. Here is a related question from a banking customer regarding a recent notice on their bank statement: Deposit Reclassification. It seems that the bank was moving the customer's money between hidden sub accounts to make it look like the checking account was really a savings account and thus \"\"reduce the amount of funds we are required to keep on deposit at the Federal Reserve Bank.\"\" If they didn't have to transfer the money many times the bank could keep less cash on hand. But once they did 5 hidden transactions the rest of the money in the hidden savings account would be moved by the bank. The 6 transaction limit is done to not allow you to treat savings like checking. Here is a relevant quote from the Federal Reserve Savings Deposits Savings deposits generally have no specified maturity period. They may be interest-bearing, with interest computed or paid daily, weekly, quarterly, or on any other basis. The two most significant features of savings deposits are the ‘‘reservation of right’’ requirement and the restrictions on the number of ‘‘convenient’’ transfers or withdrawals that may be made per month (or per statement cycle of at least four weeks) from the account. In order to classify an account as a ‘‘savings deposit,’’ the institution must in its account agreement with the customer reserve the right at any time to require seven days’ advance written notice of an intended withdrawal. In practice, this right is never exercised, but the institution must nevertheless reserve that right in the account agreement. In addition, for an account to be classified as a ‘‘savings deposit,’’ the depositor may make no more than six ‘‘convenient’’ transfers or withdrawals per month from the account. ‘‘Convenient’’ transfers and withdrawals, for purposes of this limit, include preauthorized, automatic transfers (including but not limited to transfers from the savings deposit for overdraft protection or for direct bill payments) and transfers and withdrawals initiated by telephone, facsimile, or computer, and transfers made by check, debit card, or other similar order made by the depositor and payable to third parties. Other, less-convenient types of transfers, such as withdrawals or transfers made in person at the bank, by mail, or by using an ATM, do not count toward the six-per-month limit and do not affect the account’s status as a savings account. Also, a withdrawal request initiated by telephone does not count toward the transfer limit when the withdrawal is disbursed via check mailed to the depositor. Examiners should be particularly wary of a bank’s practices for handling telephone transfers. As noted, an unlimited number of telephone-initiated withdrawals are allowed so long as a check for the withdrawn funds is mailed to the depositor. Otherwise, the limit is six telephone transfers per month. The limit applies to telephonic transfers to move savings deposit funds to another type of deposit account and to make payments to third parties.\"",
"title": ""
},
{
"docid": "a2e0b3360d9040b962450b64262b6f04",
"text": "You may still get an exception hold on the transfer if all of the named account holders on the checking and savings do not match. In my time in banking such an internal hold was exceedingly rare but did occur if other red flags were present. Usually a hold is not an issue when transferring to savings. Further, regardless of the factors above, your institution may require you to complete the transfer with a teller rather than digitally, but that's the institution's choice. Side note about large transfers: When you're doing an internal transfer of $100,000.00 or more, even if named account holders match, some banks' back-end systems will only process this amount in one day as a wire. If so, they will likely waive the wire fee.",
"title": ""
},
{
"docid": "651f98220897b2a34830fade5ce229dc",
"text": "\"Probably the most significant difference is the Damocles Sword hanging over your head, the Margin Call. In a nutshell, the lender (your broker) is going to require you to have a certain amount of assets in your account relative to your outstanding loan balance. The minimum ratio of liquid funds in the account to the loan is regulated in the US at 50% for the initial margin and 25% for maintenance margins. So here's where it gets sticky. If this ratio gets on the wrong side of the limits, the broker will force you to either add more assets/cash to your account t or immediately liquidate some of your holdings to remedy the situation. Assuming you don't have any/enough cash to fix the problem it can effectively force you to sell while your investments are in the tank and lock in a big loss. In fact, most margin agreements give the brokerage the right to sell your investments without your express consent in these situations. In this situation you might not even have the chance to pick which stock they sell. Source: Investopedia article, \"\"The Dreaded Margin Call\"\" Here's an example from the article: Let's say you purchase $20,000 worth of securities by borrowing $10,000 from your brokerage and paying $10,000 yourself. If the market value of the securities drops to $15,000, the equity in your account falls to $5,000 ($15,000 - $10,000 = $5,000). Assuming a maintenance requirement of 25%, you must have $3,750 in equity in your account (25% of $15,000 = $3,750). Thus, you're fine in this situation as the $5,000 worth of equity in your account is greater than the maintenance margin of $3,750. But let's assume the maintenance requirement of your brokerage is 40% instead of 25%. In this case, your equity of $5,000 is less than the maintenance margin of $6,000 (40% of $15,000 = $6,000). As a result, the brokerage may issue you a margin call. Read more: http://www.investopedia.com/university/margin/margin2.asp#ixzz1RUitwcYg\"",
"title": ""
},
{
"docid": "246426eb7dd8792a0944eef30d1d2258",
"text": "There is nothing to worry about. There is absolutely nothing unusual about moving money between your own accounts, even if they are in separate financial institutions. I moved $200,000 when I was getting ready to by my house; I have moved similar sized chunks for other purposes. A large transfer may get some attention to make sure you aren't doing anything illegal with the money and aren't being scammed... but if the transaction is legitimate, that attention is harmless.",
"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": "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": "1e27e77f9b48e65c7e51b05e7102406c",
"text": "Here's a point in favor of central banks: With a central bank in the middle making sure payments clear, transactions can happen with near perfect trust. When a bank has a daylight overdraft, the Fed covers it. When a bank needs overnight funding, the Fed provides it. If a bank needs vault cash, a truck shows up from the Fed. Without this, no one could ever be entirely confident the other party was money-good. With a volume of transactions that can amount to annual GDP in as little as six days, this level of trust is critical to a smoothly functioning system of payments.",
"title": ""
},
{
"docid": "f0b948d3ba6bb0db71fe1c892cbab69d",
"text": "There are restrictions on transferring money OUT OF Egypt (although less tight than previously: http://www.aawsat.net/2014/01/article55326839 ) but there aren't any such restrictions on sending money INTO Egypt. If you go to HSBC's retail UK banking pages and locate the page for International Money Transfers, http://www.hsbc.co.uk/1/2/international-money-transfer you can see that you can transfer up to £50,000 per day into Egypt via online banking, £10,000 via telephone banking, or unlimited by visiting the branch. I'm not sure exactly what question you asked them or exactly what they said to you in response, but it sounds like there was some misunderstanding along the way.",
"title": ""
},
{
"docid": "9f62569be9b7c332637d6eeed835ddb2",
"text": "It depends on the bank and network. Banks are to provide outgoing data at the certain time for the processing by the central clearing house (the Federal Reserve system, for ACH), which then distributes incoming data back to the banks. All this has to be done between the closing of the business day and the opening of the next one. If the transaction hasn't completed the full path during that time - it will wait at the position it was stuck at until the next cycle - next night. That's why sometimes ACH transactions take more than 1 day to complete (if, for example, multiple Fed banks have to be involved).",
"title": ""
},
{
"docid": "a84abc29f80cea29cc9d9ff10b3d315d",
"text": "\"Like the old American Express commercial: \"\"no preset spending limit\"\". It is really up to the bank(s) in question how big a cheque they are willing to honour. A larger amount would likely be held longer by a receiving institution to ensure that it cleared properly, but nothing written in law (in Canada, that I am aware of).\"",
"title": ""
},
{
"docid": "945e21f1afc1b42537ad6cdeec998eb5",
"text": "The direct debit is an authority to withdraw money from your account. Depending on how it was set up it may limit how much may be withdrawn, how often and for how long. I haven't seen a direct debit agreement that limits the total that may be withdrawn, but they may exist. A reputable creditor will stop taking your money when they're supposed to, which would be when the loan is paid off.",
"title": ""
}
] |
fiqa
|
ac3cc74e16e4efabeb987b5944829966
|
What would be the appropriate account for written off loans to friends and family?
|
[
{
"docid": "16ad3228aaa40f39a992b2fcb32a4d4f",
"text": "\"A simple way to account debt forgiveness of your receivables is to utilize a \"\"Bad Debt\"\" expense account. Take the following two examples: If you are only forgiving a portion of the principle, another popular term used is Principle Reduction as the expense account.\"",
"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": "f8d5c327ce6e719e6a82fda9724475de",
"text": "While I agree with the existing bulk of comments and answers that you can't tell the lender the $7k is a gift, I do think you might have luck finding a mortgage broker who can help you get a loan as a group. (You might consider as an LLC or other form of corporation if no one will take you otherwise.) That is, each of you will be an owner of the house and appear on the mortgage. IIRC, as long as the downpayment only comes from the collective group, and the income-to-debt ratio of the group as a whole is acceptable, and the strongest credit rating of the group is good, you should be able to find a loan. (You may need a formal ownership agreement to get this accepted by the lender.) That said, I don't know if your income will trump your brother's situation (presumably high debt ratio or lower than 100% multiplier on his income dues to its source), but it will certainly help. As to how to structure the deal for fairness, I think whatever the two of you agree to and put down in writing is fine. If you each think you're helping the other, than a 50/50 split on profits at the sale of the property seems reasonable to me. I'd recommend that you actually include in your write up a defined maximum period for ownership (e.g. 5yr, or 10yr, etc,) and explain how things will be resolved if one side doesn't want to sell at that point but the other side does. Just remember that whatever percentages you agree to as ownership won't effect the lender's view of payment requirements. The lender will consider each member of the group fully and independently responsible for the loan. That is, if something happens to your brother, or he just flakes out on you, you will be on the hook for 100% of the loan. And vice-versa. Your write up ought to document what happens if one of you flakes out on paying agreed upon amounts, but still expects there ownership share at the time of sale. That said, if you're trying to be mathematically fair about apportioning ownership, you could do something like the below to try and factor in the various issues into the money flow: The above has the benefit that you can start with a different ownership split (34/66, 25/75, etc.) if one of you wants to own more of the property.",
"title": ""
},
{
"docid": "a83a30574625b35fba23c608b1b6053c",
"text": "I concur with the other answers about not mixing family and money: the one whose loans are paid off second will be taking the credit risk of the other not paying/being able to pay. There may also be tax implications. That said, if you do still want to do this, I think there's a fairly straightforward way to account for the payments. With your scenario, your brother should make you a personal loan at some interest rate inbetween 5% and 10%. That loan would be tracked independently of the actual student loans. Any money that your brother transfers to you to pay off your loans, add to that personal loan, and later on once your loans are paid off you start repaying the loan to him and he uses the proceeds for his own loans. The interest rate will determine how the benefit of paying off the 10% loans is shared: if the rate is set at 10% then your brother will get all the benefit, if 5% you will get all the benefit, and 7.5% would roughly share it out. This means that you can still manage your own student loans separately. Your brother can choose how little or much to commit to the snowball rather than his own loans (of course he should first make the minimum payments on his own loans). Anything he does loan you benefits you both if we ignore the credit and tax issues - he gets more than the 5% interest on his own loans, and you pay less than the 10% interest on your loans. You'll need to track the payments each way on this personal loan and apply interest to it every so often, I'd suggest monthly (beware that the monthly equivalent of 5% annual interest is not 5%/12, because of compounding).",
"title": ""
},
{
"docid": "8125e139939bdcfbcaeb83f843bb2452",
"text": "employed under the table and doesn't have a bank account If I could make that size 10,000,000 font I would. Your friend likely also isn't paying taxes. The student loan penalties will be nothing compared to what the IRS does to you. Avoid taking financial advice from that person.",
"title": ""
},
{
"docid": "bbc786f8d44f69979b0e357f265a9b51",
"text": "Personal needs? No bank is going to give you that kind of cash without a real reason, usually with some equity backing it. From your post you say you are a student, so I doubt you even have the income to pay it back. If banks just gave out cash like that people would disappear with it all the time.",
"title": ""
},
{
"docid": "bb9ea76eef68b7af44e872e2f37d6569",
"text": "Sorry, but I think you really do need an attorney here. This is the kind of minefield where knowing all the precedents and edge cases can make a huge difference in what you can or can't do, and a misplaced comma can make or break your case. Note that AT BEST you could sell your own interest in the house -- owning the note does not mean owning the property, it only means that they issued the note on the strength of your share of the property. And a half-interest in a single family house has little value outside the family, except to sell it to whoever owns the other half. Which is probably the best answer: Sell your half to your Aunt, if she can afford to buy it. She then gets sole control of the house, and you get the money you seem to need right now, and everyone in the family is much less stressed.",
"title": ""
},
{
"docid": "bfd9f28b5355e5f533b22d0f211b3e57",
"text": "Is it inevitably taxed by the government? Which government? Tax treatment of familial loans varies greatly be jurisdiction. What is proper documentation procedure? If you want to get paid back, definitely a lawyer ... each. Is it better to ask several family members to help contribute so each person loans less? Or is it taxed the same? If this is only a tax issue then see above. If it is a means of spreading risk then sure.",
"title": ""
},
{
"docid": "839709aa6287a3c0bdadf5e399de228d",
"text": "I would recommend against loans from family members. But if you decide to go down that path take care of the basics: This is a business decision so treat it like one. I would add that the situation you describe sounds extremely generous to your family member. I'd look at standard loan agreements (ie. in the marketplace) and model your situation more on them - if you do this, even with you paying a premium, you'd never come up with something as generous as what you have described.",
"title": ""
},
{
"docid": "37ab19113c26928885755f04ab154a8c",
"text": "You will have to write it off as an offset of capital gains or as bad debt against personal income, limited to $3k/ yr. Write off 3k this year, 2k next. Here's the tax code, you'll need to file a form 8949, link below. https://www.irs.gov/taxtopics/tc450/tc453 So, this requires that it is a loan, acknowledged by both you and the borrower, with terms of repayment and stated interest, as well as wording for late payments and time for delinquency. The loan document doesn't have to be fancy, but it must show a reasonable intention of repayment to distinguish it from a gift. Then send out a 1099c for cancellation of debt. This is a starting point, it's a good idea to run everything by your tax processional to make sure you're meeting the requirements for bad debt with your contact and payment communication.",
"title": ""
},
{
"docid": "32cef36b284aa6cef14527c27cb8bca0",
"text": "\"The standard double-entry approach would just be to create a Liability account for the loan, and then make a transfer from that account to your Asset (Savings) account when the loan proceeds are distributed to you. After that point, the loan doesn't \"\"belong\"\" to your Savings account in any way. Each account and transaction is tracked separately. So, you might for instance pay that loan back with a transfer from your Checking account, even though the initial disbursement arrived into your Savings account. In order to see how much of a loan you have remaining, you need to look at the loan's Liability account to see what transactions occurred in it and what its remaining balance is. It sounds like what you're really trying to accomplish is the idea of \"\"earmarking\"\" or \"\"putting into an envelope\"\" certain assets for certain purposes. This kind of budgeting isn't really something that Gnucash excels at. It does have some budget features, but there's more about being able to see how actual expenses are to expected expenses for a reporting period, not about being able to ask \"\"How much 'discretionary' assets do I have left before I start hitting my 'emergency fund'\"\". The closest you get is splitting up your asset accounts into subaccounts as you suggest, in which case you can \"\"allocate\"\" funds for your specific purposes and make transfers between them as needed. That can work well enough depending on your exact goals, though it can sometimes make it a little trickier to reconcile with your actual bank statements. But there's not really an accounting reason to associate the \"\"emergency fund\"\" portion of your assets with the remaining balance of your loan; though there's nothing stopping you from doing so if that's what you're trying to do. Accounting answers questions like \"\"How much have I spent on X in the past?\"\" and \"\"How much do I own right now?\"\". If you want to ask \"\"How much am I allowed to spend on X right now?\"\" or \"\"Am I likely to run out of money soon?\"\", you may want a budgeting tool rather than an accounting tool.\"",
"title": ""
},
{
"docid": "11c9b3d0363b550de540aa34f698e3b1",
"text": "You haven't mentioned the country. As a general premise, you own them money and the fact that the account was closed has no bearing on the fact that you own them money. My suggestion would be pay them off.",
"title": ""
},
{
"docid": "7a44496c2bd1e2232797a0e4fd167338",
"text": "\"Definitely consult a lawyer. Mortgages are highly regulated now, and regardless of how familiar borrower & lender are, the standard contract will be extremely long. (at least in the US) There are no \"\"friends and/or family\"\" exceptions. If the contract does not conform to regulations, it may be invalid, and all the money you lent could simply evaporate since it was the borrower who actually bought the house, and it's the loan contract that's rendered null & void; in that case, it may be better to simply donate the money.\"",
"title": ""
},
{
"docid": "41f0b1acb57b7544bd49bad2965c8fb9",
"text": "\"Should is a very \"\"strong\"\" word. You do what makes most sense to you. Should I be making a single account for Person and crediting / debiting that account? You can do that. Should I be creating a loan for Person? And if so, would I make a new loan each month or would I keep all of the loans in one account? You can create a loan account (your asset), you don't need to create a new account every time - just change the balance of the existing one. That's essentially the implementation of the first way (\"\"making a single account for a Person\"\"). How do I show the money moving from my checking account to Company and then to Person's loan? You make the payment to Company from your Checking, and you adjust the loan amount to Person from Equity for the same amount. When the Person pays - you clear the loan balance and adjust the Checking balance accordingly. This keeps your balance intact for the whole time (i.e.: your total balance sheet doesn't change, money moves from line to line internally but the totals remain the same). This is the proper trail you're looking for. How do I (or should I even) show the money being reimbursed from the expense? You shouldn't. Company is your expense. Payment by the Person is your income. They net out to zero (unless you charge interest). Do I debit the expense at any point? Of course. Company is your expense account. Should I not concern myself with the source of a loan / repayment and instead just increase the size of the loan? Yes. See above.\"",
"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": "a5a8f00d13d6121c63e2703247e507dc",
"text": "\"Bookkeeping and double-entry accounting is really designed for tracking the finances of a single entity. It sounds like you're trying to use it to keep multiple entities' information, which may somewhat work but isn't really going to be the easiest to understand. Here's a few approaches: In this approach, the books are entirely from your perspective. So, if you're holding onto money that \"\"really\"\" belongs to your kids, then what you've done is you're taking a loan from them. This means that you should record it as a liability on your books. If you received $300, of which $100 was actually yours, $100 belongs to Kid #1 (and thus is a loan from him), and $100 belongs to Kid #2 (and thus is a loan from her), you'd record it just that way. Note that you only received $100 of income, since that's the only money that's \"\"yours\"\", and the other $200 you're only holding on behalf of your kids. When you give the money to your kids or spend it on their behalf, then you debit the liability accordingly and credit the Petty Cash or other account you spent it from. If you wanted to do this in excruciating detail, then your kids could each have their own set of books, in which they would see a transfer from their own Income:Garage Sale account into their Assets:Held by Parents account. For this, you just apportion each of your asset accounts into subaccounts tracking how much money each of you has in it. This lets you treat the whole family as one single entity, sharing in the income, expenses, etc. It lets you see the whole pool of money as being the family's, but also lets you track internally some value of assets for each person. Whenever you spend money you need to record which subaccount it came from, and it could be more challenging if you actually need to record income or expenses separately per person (for some sort of tax reasons, say) unless you also break up each Income and Expense account per person as well. (In which case, it may be easier just to have each person keep their entirely separate set of books.) I don't see a whole lot of advantages, but I'll mention it because you suggested using equity accounts. Equity is designed for tracking how much \"\"capital\"\" each \"\"investor\"\" contributes to the entity, and for tracking a household it can be hard for that to make a lot of sense, though I suppose it can be done. From a math perspective, Equity is treated exactly like Liabilities in the accounting equation, so you could end up using it a lot like in my Approach #1, where Equity represents how much you owe each of the kids. But in that case, I'd find it simpler to just go ahead and treat them as Liabilities. But if it makes you feel better to just use the word Equity rather than Liability, to represent that the kids are \"\"investing\"\" in the household or the like, go right ahead. If you're going to look at the books from your perspective and the kids as investing in it, the transaction would look like this: And it's really all handled in the same way an Approach #1. If on the other hand, you really want the books to represent \"\"the family\"\", then you'd need to have the family's books really look more like a partnership. This is getting a bit out of my league, but I'd imagine it'd be something like this: That is to say, the family make the sale, and has the money, and the \"\"shareholders\"\" could see it as such, but don't have any obvious direct claim to the money since there hasn't been a distribution to them yet. Any assets would just be assumed to be split three ways, if it's an equal partnership. Then, when being spent, the entity would have an Expense transaction of \"\"Dividend\"\" or the like, where it distributes the money to the shareholders so that they could do something with it. Alternatively, you'd just have the capital be contributed, And then any \"\"income\"\" would have to be handled on the individual books of the \"\"investors\"\" involved, as it would represent that they make the money, and then contributed it to the \"\"family books\"\". This approach seems much more complicated than I'd want to do myself, though.\"",
"title": ""
}
] |
fiqa
|
327bc52eba90b85eb94099d8e41b832f
|
Should I buy a house with a friend?
|
[
{
"docid": "1837fcec79a87c1cec6e790d17ca2387",
"text": "No. This amount of money is not appropriate for friends to go in on. Although you could consider buying a house with a business partner, have the contracts drawn up, see an attorney, read up on the penalties if one of the partners doesn't hold up their end from the law's point of view. Also, since this is a business arrangement, write and sign all sorts of details regarding the penalties amongst the partners (not just the law) when one person doesn't hold up. It isn't that you don't have good intentions, or that you couldn't do it just fine if no problems ever happen. The issue is that over the course of a mortgage, which is at least several years, something is very likely to come up. If you and your friend aren't prepared to think about all those issues and how to handle them, you will lose a friend, probably a house and your good credit. I wouldn't go into business with my best friend because I want him to stay my best friend.",
"title": ""
},
{
"docid": "68922f8b7da11e444b92f686b6ced412",
"text": "Unlike others who have answered the question - I have done this. Here is my experience - your mileage and friendship may vary: I bought a condo years ago with a longtime childhood friend. We did it for all the reasons you mentioned - sick of renting and not building equity, were both young, single professionals who had the money. The market crashed we have both since married and moved on to own other properties with our spouses. Now we rent out the condo as selling in the current market is not doable.. It's not an ideal situation but that is because of the real estate market - not who I bought with. You need to discuss very openly all of the following scenarios, as well as others I can't think of right now I am sure: If you aren't both 100% in sync with these questions then do not do it. I never understand why some people would buy with a girlfriend/boyfriend but not a good personal friend. You're more likely to have a falling out with your significant other then a long time close friend. My advice, have honest, open conversations, about all possible scenarios. If you feel necessary put somethings down into some sort of legal agreement - with us it was not, and still isn't necessary.",
"title": ""
},
{
"docid": "068924eb9246321883828a7b0dcc2acc",
"text": "\"I'll chime in here with the \"\"don't do it crowd.\"\" I think it's fraught with ugly possibilities. However, you may, for various reasons, decide to say, \"\"to hell with it, we'll make it work.\"\" If that is the case, treat it like a business transaction and not an emotional transaction. Work up a binding contract with your attorney for how the two of you will handle issues such as: Of absolutely critical importance is the bail-out clause: how will you handle it when one person says, \"\"Sayonara.\"\" None of this ensures a smooth road - god knows I wouldn't do it - but it could help protect your sanity and some of your investment down the road. Good luck.\"",
"title": ""
},
{
"docid": "53290873dfd856411598430966f918f6",
"text": "I did this about 8 years ago with a buddy in Chicago for the reasons specified in the original post. As other posters have suggested, we discussed a lot of the same questions listed above, figured out the possible scenarios, and then had a lawyer draw up a contract. We bought a 3 bedroom house, and rented out the 3rd bedroom. Overall, it was a great experience. We both built equity while having a renter pay a third of the mortgage. Plus the property tax and interest on the loan were tax deductible. Compared with renting an apartment, it made us a lot more money. In the end, we sold the house, and split the profits. Assuming you have the personalities to make it work, I say go for it.",
"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": ""
},
{
"docid": "2681455c470c3c82c7109f331a923077",
"text": "I'd be curious to compare current rent with what your overhead would be with a house. Most single people would view your current arrangement as ideal. When those about to graduate college ask for money advice, I offer that they should start by living as though they are still in college, share a house or multibedroomed apartment and sack away the difference. If you really want to buy, and I'd assume for this answer that you feel the housing market in your area has passes its bottom, I'd suggest you run the numbers and see if you can buy the house, 100% yours, but then rent out one or two rooms. You don't share your mortgage details, just charge a fair price. When the stars line up just right, these deals cost you the down payment, but the roommates pay the mortgage. I discourage the buying by two or more for the reasons MrChrister listed.",
"title": ""
},
{
"docid": "fb87706cd903e858598cdcafc585d6f1",
"text": "Sure, form an LLC with an attorney's advice. You need a buyout clause, operating agreement, etc. If you're not married, never buy a home for personal use with someone else.",
"title": ""
},
{
"docid": "93f5ad59c8cf28ccf4ee874538c5d7cb",
"text": "There are lots of good reasons not to do this. HOWEVER if you do decide to, there are four things you need to consider:",
"title": ""
}
] |
[
{
"docid": "bb90855308bded6bdcea451a5624a0fe",
"text": "\"There are a number of reasons I'm in agreement with \"\"A house that is worth $300,000, or $50,000 of equity in a house and $225,000 in the bank.\"\" So, the update to the first comment should be \"\"A paid off house worth $300K, or a house with $150K equity and $275K in the retirement account.\"\" Edit - On reflection, an interesting question, but I wonder how many actually have this choice. When a family budgets for housing, and uses a 25% target, this number isn't much different for rent vs for the mortgage cost. So how, exactly do the numbers work out for a couple trying to save the next 80% of the home cost? A normal qualifying ration allows a house that costs about 3X one's income. A pay-in-full couple might agree to be conservative and drop to 2X. Are they on an austerity plan, saving 20% of their income in addition to paying the rent? Since the money must be invested conservatively, is it keeping up with house prices? After 10 years, inflation would be pushing the house cost up 30% or so, so is this a 12-15 year plan? I'm happy to ignore the tax considerations. But I question the math of the whole process. It would seem there's a point where the mortgage (plus expenses) add up to less than the rent. And I'd suggest that's the point to buy the house.\"",
"title": ""
},
{
"docid": "f87fe8e98e124dc629edf77abcd2f338",
"text": "Considering your question, I have been in the market for a house to buy. There is a house that I like and I wanted to know if I could afford it. You state your Assets: Awesome! Current Income: Great job putting $1000/month into your 401k! That is $12,000/year saved for retirement. Excellent! Current expenses: Why do you want to buy a house for more than 4x your gross income, and 3x median house price (U.S.)? Are you planning on living in the house for at least 5-7 years? There is a risk that interest rates will rise, and that will affect your ability to sell the house. Expected expenses: Adding your other essentials, You are considering increasing your expenses by $1000-1200/month. Looking at the amounts you quoted for direct housing expenses, you will have committed $2600/month to a mortgage payment. Adding your other estimated essentials, you will spend over $3700/month (leaving $2200/month for everything else). You may have higher utilities for a house than an apartment, you are doing well with your food budget, and your cellphone is lower than many. You anticipate $650/month ($7800/year) tax savings (be careful, congress is looking for ways to increase tax revenue). You want to keep your essential expenses under 50% (much more than 50% is difficult, and I am trying to get to 40%). You may live in an area where housing costs are an out-sized expense. But an option would be to save more, and a larger down payment could lower the monthly expenses below that 50% mark.",
"title": ""
},
{
"docid": "ff1b45edc4eca37b570b308f78dab670",
"text": "\"The house that sells for $200,000 might rent for a range of monthly numbers. 3% would be $6000/yr or $500/mo. This is absurdly low, and favors renting, not buying. 9% is $1500/mo in which case buying the house to live in or rent out (as a landlord) is the better choice. At this level \"\"paying rent\"\" should be avoided. I'm simply explaining the author's view, not advocating it. A quote from the article - annual rent / purchase price = 3% means do not buy, prices are too high annual rent / purchase price = 6% means borderline annual rent / purchase price = 9% means ok to buy, prices are reasonable Edit to respond to Chuck's comment - Mortgage rates for qualified applicants are pretty tight from low to high, the 30 year is about 4.4% and the 15, 3.45%. Of course, a number of factors might mean paying more, but this is the average rate. And it changes over time. But the rent and purchase price in a given area will be different. Very different based on location. See what you'd pay for 2000 sq feet in Manhattan vs a nice town in the Mid-West. One can imagine a 'heat' map, when an area might show an $800 rent on a house selling for $40,000 as a \"\"4.16\"\" (The home price divided by annual rent) and another area as a \"\"20\"\", where the $200K house might rent for $1667/mo. It's not homogeneous through the US. As I said, I'm not taking a position, just discussing how the author formulated his approach. The author makes some assertions that can be debatable, e.g. that low rates are a bad time to buy because they already pushed the price too high. In my opinion, the US has had the crash, but the rates are still low. Buying is a personal decision, and the own/rent ratios are only one tool to be added to a list of factors in making the decision. Of course the article, as written, does the math based on the rates at time of publication (4%/30years). And the ratio of income to mortgage one can afford is tied to the current rate. The $60K couple, at 4%, can afford just over a $260K mortgage, but at 6%, $208K, and 8%, $170K. The struggle isn't with the payment, but the downpayment. The analysis isn't too different for a purchase to invest. If the rent exceeds 1% of the home price, an investor should be able to turn a profit after expenses.\"",
"title": ""
},
{
"docid": "f9ad0656b5ebff9bb89342abd2b89beb",
"text": "Wrong way round. Transitional arrangements are non-binding guidelines that the lenders can observe if they choose to. The borrower - like your friend - doesn't get to choose whether to use them or not. Your friend obviously can't afford the property, so if you do this, all I can say is congratulations on buying your new house, and I hope you got a deal on the mortgage.",
"title": ""
},
{
"docid": "e4afa45e3f9c7762c55cd7b3460f6b61",
"text": "In the situation you describe, I would strongly consider purchasing. Before purchasing, I would do the following: Think about your goals. Work with good people. Set a budget. Be able to handle surprises. If buying a home makes sense, you can do the following after buying:",
"title": ""
},
{
"docid": "9dcde1f44c58e9694cf6dd845c37d03b",
"text": "Having someone else paying you rent is always going to be the better deal financially. The question is, what does $450k buy in the neighborhood in which you want to live, vs $800k? I'm going to assume you can afford either option (buying a $450k home and not selling, or an $800k home and selling your current one) whether someone's paying you rent or not. Let's make up some numbers here; a $450k home, financed 80/20 (360k principal) at 4% for 30 years will cost you about $1720 in P&I payments per year (plus escrows such as RE taxes, PMI, and homeowners insurance where applicable). An $800k home financed 80/20 (640k principal) at 4% for 30yr will give you payments of about $3,055/mo before taxes and insurance. So, the worst case overall is that you buy a 450k home in the new neighborhood and are not, at any given time, collecting rent on the old property. That would (assuming the mortgage terms on both home loans were comparable) cost you $3440/mo and you'd be living in a $450k home in a neighborhood where 450k may not buy a home as nice as the one you moved out of. The question as I stated above is this; assuming you had a reliable tenant in your home for the entire remaining life of the loan on your current home, which is more acceptable to you: buying $450k of home (which might be a downgrade in sqft or amenities) and paying $2020 in P&I, or paying about a grand more ($3055/mo) for a much nicer home in the new location? Strictly from a money perspective, the renter is going to be the best option, IF you get reliable tenancy for the entire life of the mortgage on that house; you'll be paying $2020/mo for 30 years, which is $727,200, to end up with $950k of total home value (plus adjustments for actual home value appreciation/depreciation). That's the only way you'll come out ahead on any mortgage; have someone else pay most of it for you. If you don't rent, the $800k home will cost you $1,099,800, while two $450k homes will cost you $1,454,400. The percentage of home value over total payments for the 800k home would be 72% (you will have paid 137% of the value of the home), while you will have paid 153% of the value of two 450k homes.",
"title": ""
},
{
"docid": "69cf9c7daa08918e2890331a8d1b7f07",
"text": "Adding to what others have said, if the mortgage for the new house is backed by the federal government (e.g., through FHA or is to be sold to Fannie Mae/Freddie Mac) you would be violating 18 USC § 1001, which makes making intentionally false statements to any agent or branch of the federal government a crime punishable by up to 5 years' imprisonment. The gift letter you are required to sign will warn you of as much. Don't do it, it's not worth the risk of prison time.",
"title": ""
},
{
"docid": "8235e95dbdf4a3ee49fa95b34de43948",
"text": "The main point to consider is that your payments toward your own home replace your rent. Any house or apartment you buy will have changes in value; the value is generally going slowly up, but there is a lot of noise, and you may be in a low phase at any time, and for a long time. So seeing it as an investment is not any better than buying share or funds, and it has a much worse liquidity (= you cannot as easily make it to cash when you want to), and not in parts either. However, if you buy for example a one-room apartment for 80000 with a 2% mortgage, and pay 2% interest = 1600 plus 1% principal = 800, for a total of 2400 per year = 200 per month, you are paying less than your current rent, plus you own it after 30 years. Even if it would be worth nothing after 30 years, you made a lot of money by paying half only every month, and it probably is not worthless. You need to be careful not to compare apples with oranges - if you buy a house for 200000 instead, your payments would be higher than your rent was, but you would be living in your house, not in a room. For most people, that is worth a lot. You need to put your own value to that; if you don't care to have a lot more space and freedom, the extra value is zero; if you like it, put a price to it. With current interest rates, it is probably a good idea for most people to buy a house that they can easily afford instead of paying rent. The usual rules should be considered - don't overstretch yourself, leave some security, etc. Generally, it is rather difficult to buy an affordable house instead of renting today and not saving a lot of money in the process, so I would say go for it.",
"title": ""
},
{
"docid": "933d4d77ab71aaf0bdb5e1d198ab6f1b",
"text": "When I bought my own place, mortgage lenders worked on 3 x salary basis. Admittedly that was joint salary - eg you and spouse could sum your salaries. Relaxing this ratio is one of the reasons we are in the mess we are now. You are shrewd (my view) to realise that buying is better than renting. But you also should consider the short term likely movement in house prices. I think this could be down. If prices continue to fall, buying gets easier the longer you wait. When house prices do hit rock bottom, and you are sure they have, then you can afford to take a gamble. Lets face it, if prices are moving up, even if you lose your job and cannot pay, you can sell and you have potentially gained the increase in the period when it went up. Also remember that getting the mortgage is the easy bit. Paying in the longer term is the really hard part of the deal.",
"title": ""
},
{
"docid": "116bc8e0713546aaf5c0be5a63134aae",
"text": "between two people purchasing a house together, one with good and one with bad credit, will having both persons on the loan raise the interest rates. If the house deed is on both names, generally the Bank would insist the loan should also be on both of your names. This to ensure that Bank has enough leverage to recover the house in case of default. If one of you has bad credit, bank would raise the interest rate, assumption that bad credit would drag the good credit and force him to some activities / actions that could stretch the finance of one with good credit. If timely payments are not made, it would make your good credit to bad. If the house deed is on only on your name and you can get the loan on your own, this would be a better position. If the house deed is on only on your name and you would like to loan to be on both names, then the positive side is credit score of the person with bad credit would start showing improvement over period, provided both of you make timely payments. As pointed out by keshlam, there are enough question where people have entered into agreement without deciding what would happen if they separate. There is no right / wrong answer. It would be best you decide how it would be with respect to the ownership in the house and with respect to payments and if in worst case you part ways, how the settlement should look like.",
"title": ""
},
{
"docid": "58027dd226e3ccd44f3b4b10ae0a40ad",
"text": "You may want to start a company for a few reasons, the main one would be liability, you don't want your friend to drop a weight on a foot and sue you for millions taking your house away. You'd need to pay taxes on the income, that's after you pay all your expenses, bills, mortgage interest, insurance premiums (!), equipment depreciation. So it's going to be a lot less than you collect from your friends. Whether you incorporate or not you have to pay taxes on your income. If it's $200/year IRS may not notice that, if it's $20K a month it would be very hard to hide. If you pay your friends more than some amount (check the laws) you'd need to tell IRS about it (issue 1099-misc), then your friends must pay taxes on that income.",
"title": ""
},
{
"docid": "a2fdf74a17ba25e4650efadf59e8b366",
"text": "The first and most important thing to consider is that this is a BUSINESS TRANSACTION, and needs to be treated as such. Nail down Absolutely All The Details, specifically including what happens if either of you decides it's time to move and wants to sell off your share of the property. Get at least one lawyer involved in drawing up that contract, perhaps two so there's no risk of conflict of interest. What's your recourse, or his, if the other stops making their share of the payments? Who's responsible for repairs and upkeep? If you make renovations, how does that affect the ownership percentage, and what kind of approval do you need from him first, and how do you get it, and how quickly does he have to respond? If he wants to do something to maintain his investment, such as reroofing, how does he negotiate that with you -- especially if it's something that requires access to the inside of the house? Who is the insurance paid by, or will each of you be insuring it separately? What are the tax implications? Consider EVERY possible outcome; the fact that you're friends now doesn't matter, and in fact arguments over money are one of the classic things that kill friendships. I'd be careful making this deal with a relative (though in fact I did loan my brother a sizable chunk of change to help him bridge between his old house and new house, and that's registered as a mortgage to formalize it). I'd insist on formalizing who owns what even with a spouse, since marriages don't always last. With someone who's just a co-worker and casual friend, it's business and only business, and needs to be both evaluated and contracted as such to protect both of you. If you can't make an agreement that you'd be reasonably comfortable signing with a stranger, think long and hard about whether you want to sign it at all. I'll also point out that nobody is completely safe from long-term unemployment. The odds may be low, but people do get blindsided. The wave of foreclosures during and after the recent depression is direct evidence of that.",
"title": ""
},
{
"docid": "7319e7d344e18f21491dba0ebe7e93f6",
"text": "All of RonJohn's reasons to say no are extremely valid. There are also two more. First, the cost of a mortgage is not the only cost of owning a house. You have to pay taxes, utilities, repairs, maintenence, insurance. Those are almost always hundreds of dollars a month, and an unlucky break like a leaking roof can land you with a bill for many thousands of dollars. Second owning a house is a long term thing. If you find you have to sell in a year or two, the cost of making the sale can be many thousands of dollars, and wipe out all the 'savings' you made from owning rather than renting. I would suggest a different approach, although it depends very much on your circumstances and doesn't apply to everybody. If there is someone you know who has money to spare and is concerned for your welfare (your mention of a family that doesn't want you to work for 'academic reason' leads me to believe that might be the case) see if they are prepared to buy a house and rent it to you. I've known families do that when their children became students. This isn't necessarily charity. If rents are high compared to house prices, owning a house and renting it out can be very profitable, and half the battle with renting a house is finding a tenant who will pay rent and not damage the house. Presumably you would qualify. You could also find fellow-students who you know to share the rent cost.",
"title": ""
},
{
"docid": "6e1bb7601dea531b298bd690f611f754",
"text": "A professional home inspection will clue you in on any problems you might be buying, so it's important in any real estate transaction. If the seller finances the loan, you need a lawyer. It might be a nice opportunity - being in the right place at the right time. You just have to investigate all angles.",
"title": ""
},
{
"docid": "62e4e23c542eb03876d301f4dbd2584b",
"text": "I've done this, both as one of the renters and (in a different house) as the landlord. I had roommates I had not lived with before though. It's definitely doable, but can get awkward. Some advice in no particular order Make sure you can afford the house on your own. This avoids the awkward situation of making you financially dependent on your friends. Also, it shouldn't be a problem for a 110k house on a 70k salary. Set the rent below market rates. The arrangement should be financially beneficial to everyone, not just yourself. Expect your roommates to leave eventually. These days people will go where job opportunities take them.",
"title": ""
}
] |
fiqa
|
7e138753d16cec568a2e061fb87db8af
|
Online transaction - Money taken out late
|
[
{
"docid": "7be1da953541e9ce40e4598da9a824e4",
"text": "\"Debit Cards have a certain processing delay, \"\"lag time\"\", before the transaction from the vendor completes with your bank. In the US it's typically 3 business days but I have seen even a 15 day lag from Panera Bread. I guess in the UK, payment processors have similar processing delays. A business is not obliged to run its payment processing in realtime, as that's very expensive. Whatever be the lag time, your bank is supposed to cover the payment you promised through your card. Now if you don't have agreements in place (for example, overdraft) with your bank, they will likely have to turn down payments that exceed your available balance. Here is the raw deal: In the end, the responsibility to ensure that your available balance is enough is upon you (and whether you have agreements in place to handle such situations) So what happened is very much legal, a business is not obliged to run its payment processing in realtime and no ethics are at stake. To ensure such things do not happen to me, I used to use a sub-account from which my debit card used to get paid. I have since moved to credit cards as the hassle of not overdrawing was too much (and overdraft fees from banks in the US are disastrous, especially for people who actually need such a facility)\"",
"title": ""
},
{
"docid": "69eacef6ab630c1a74ab135faf233369",
"text": "\"When processing credit/debit cards there is a choice made by the company on how they want to go about doing it. The options are Authorization/Capture and Sale. For online transactions that require the delivery of goods, companies are supposed to start by initially Authorizing the transaction. This signals your bank to mark the funds but it does not actually transfer them. Once the company is actually shipping the goods, they will send a Capture command that tells the bank to go ahead and transfer the funds. There can be a time delay between the two actions. 3 days is fairly common, but longer can certainly be seen. It normally takes a week for a gas station local to me to clear their transactions. The second one, a Sale is normally used for online transactions in which a service is immediately delivered or a Point of Sale transaction (buying something in person at a store). This action wraps up both an Authorization and Capture into a single step. Now, not all systems have the same requirements. It is actually fairly common for people who play online games to \"\"accidentally\"\" authorize funds to be transferred from their bank. Processing those refunds can be fairly expensive. However, if the company simply performs an Authorization and never issues a capture then it's as if the transaction never occurred and the costs involved to the company are much smaller (close to zero) I'd suspect they have a high degree of parents claiming their kids were never authorized to perform transactions or that fraud was involved. If this is the case then it would be in the company's interest to authorize the transaction, apply the credits to your account then wait a few days before actually capturing the funds from the bank. Depending upon the amount of time for the wait your bank might have silently rolled back the authorization. When it came time for the company to capture, then they'd just reissue it as a sale. I hope that makes sense. The point is, this is actually fairly common. Not just for games but for a whole host of areas in which fraud might exist (like getting gas).\"",
"title": ""
}
] |
[
{
"docid": "dcd4c837882562e73c64f9b4552eb5af",
"text": "Honestly, if you're going to restrict the online payment on your card over this, you may as well just restrict it permanently. Because this is definitely not the only time anyone has had an opportunity to retrieve the information on your card. There isn't really that much information on there - anyone taking more than a cursory look could in theory remember it and use it. We're talking waiters and checkout chicks, anytime you've given your card to anyone really. Banks know this. Credit card numbers are not really secure. They factor this in. And they have software for fraud detection - looking at large or unusual transactions and transactions in foreign countries etc. Of course it's not fool proof, but the best thing you can do isn't to cripple your card, but just be a little bit more diligent about checking your statements, making sure the transactions make sense. Some banks also allow you to set up an alert system so anytime any transactions occur you are notified immediately.",
"title": ""
},
{
"docid": "4f775c51a4bfb6b037a1b0f2153c5a9d",
"text": "\"Your bank uses ClearXchange, not you. It is not a website where you open an account, like many others, but an inter-bank transfer system based on email addresses, kind of like free wire transfers between everyone. You don't have to set anything up, just accept the payment, and the money appears in your account (assuming the client used the email address your bank has on file for you). However, if you still don't want it, you can just ignore it. There is a timeout when his transaction gets auto-cancelled, and he gets his money back. Here is an example text from the 'fine print' (my highlighting): \"\"[...]We will continue our attempts by sending a second notice of a transfer to the recipient, and providing the recipient a period of nine (9) succeeding Business Days to register in the Service, or the person-to-person payment service of clearXchange, Zelle or a Network Bank. At the end of this period, if the recipient still has not registered, the transfer request will be Cancelled. The sender may cancel the transfer at any time during this ten (10) day period if the recipient is not registered at the time of cancellation.[...]\"\" (https://chaseonline.chase.com/Public/Misc/LAContent.aspx?agreementKey=chasenet_la)\"",
"title": ""
},
{
"docid": "254b29225b915be822ea4a883a43a442",
"text": "\"There are, in fact, two balances kept for your account by most banks that have to comply with common convenience banking laws. The first is your actual balance; it is simply the sum total of all deposits and withdrawals that have cleared the account; that is, both your bank and the bank from which the deposit came or to which the payment will go have exchanged necessary proof of authorization from the payor, and have confirmed with each other that the money has actually been debited from the account of the payor, transferred between the banks and credited to the account of the payee. The second balance is the \"\"available balance\"\". This is the actual balance, plus any amount that the bank is \"\"floating\"\" you while a deposit clears, minus any amount that the bank has received notice of that you may have just authorized, but for which either full proof of authorization or the definite amount (or both) have not been confirmed. This is what's happening here. Your bank received notice that you intended to pay the train company $X. They put an \"\"authorization hold\"\" on that $X, deducting it from your available balance but not your actual balance. The bank then, for whatever reason, declined to process the actual transaction (insufficient funds, suspicion of theft/fraud), but kept the hold in place in case the transaction was re-attempted. Holds for debit purchases usually expire between 1 and 5 days after being placed if the hold is not subsequently \"\"settled\"\" by the merchant providing definite proof of amount and authorization before that time. The expiration time mainly depends on the policy of the bank holding your account. Holds can remain in place as long as thirty days for certain accounts or types of payment, again depending on bank policy. In certain circumstances, the bank can remove a hold on request. But it is the bank, and not the merchant, that you must contact to remove a hold or even inquire about one.\"",
"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": "4fd0d70975a9e25e6f4df9b653ffceee",
"text": "\"I cannot answer the original question, but since there is a good deal of discussion about whether it's credible at all, here's an answer that I got from Bank of America. Note the fine difference between \"\"your account\"\" and \"\"our account\"\", which does not seem to be a typo: The payment method is determined automatically by our system. One of the main factors is the method by which pay to recipients prefer to receive payments. If a payment can be issued electronically, we attempt to do so because it is the most efficient method. Payment methods include: *Electronic: Payment is sent electronically prior to the \"\"Deliver By\"\" date. The funds for the payment are deducted from your account on the \"\"Deliver By\"\" date. *Corporate Check: This is a check drawn on our account and is mailed to the pay to recipient a few days before the \"\"Deliver By\"\" date. The funds to cover the payment are deducted from your account on the \"\"Deliver By\"\" date. *Laser Draft Check: This is a check drawn on your account and mailed to the pay to recipient a few days before the \"\"Deliver By\"\" date. The funds for the payment are deducted from your account when the pay to recipient cashes the check, just as if you wrote the check yourself. To determine how your payment was sent, click the \"\"Payments\"\" button in your Bill Pay service. Select the \"\"view payment\"\" link next to the payment. Payment information is then displayed. \"\"Transmitted electronically\"\" means the payment was sent electronically. \"\"Payment transaction number\"\" means the payment was sent via a check drawn from our account. \"\"Check number\"\" means the payment was sent as a laser draft check. Each payment request is evaluated individually and may change each time a payment processes. A payment may switch from one payment method to another for a number of reasons. The merchant may have temporarily switched the payment method to paper, while they update processing information. Recent changes or re-issuance of your payee account number could alter the payment method. In my case, the web site reads a little different: Payment check # 12345678 (8 digits) was sent to Company on 10/27/2015 and delivered on 10/30/2015. Funds were withdrawn from your (named) account on 10/30/2015. for one due on 10/30/2015; this must be the \"\"corporate check\"\". And for another, earlier one, due on 10/01/2015, this must be the laser draft check: Check # 1234 (4 digits) from your (named) account was mailed to Company on 09/28/2015. Funds for this payment are withdrawn from your account when the Pay To account cashes the check. Both payments were made based on the same recurring bill pay payment that I set up manually (knowing little more of the company than its address).\"",
"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": "59ffc40b4113b4fcee9b4be04039d9c9",
"text": "As a general premise: In most of the online transactions in case of dispute the benefit of doubt is given to the customer. IE if the customer refuses to pay and claims that its not his transaction, the card company reverses the charges and does not pay the merchant (or recovers if its already paid). There are many types of online vendors who use a variety of methods to ensure that they are not at loss. Some of these are:",
"title": ""
},
{
"docid": "3fdb07dc08015b2b1f9f1c3c89777d96",
"text": "\"The simplest answer to why you can't see it in your online statement is a design/business decision that was made, most probably originally to make online statements differ as little as possible from old fashioned monthly printed statements; the old printed statements never showed holds either. Some banks and card services actually do show these transactions online, but in my experience these are the rare exceptions - though with business/commercial accounts I saw this more, but it was still rare. This is also partly due to banks fearing lots of annoying phone calls from customers and problems with merchants, as people react to \"\"hey, renting that car didn't cost $500!\"\" and don't realize that the hold is often higher than the transaction amount and will be justified in a few days (or weeks...), etc - so please don't dispute the charges just yet. Behind the scenes, I've had bankers explain it to me thusly (the practice has bitten me before and it bothered me a lot, so I've talked to quite a few bankers about this): There are two kinds of holds: \"\"soft holds\"\" and \"\"hard holds\"\". In a soft hold, a merchant basically asks the bank, \"\"Hey, is there at least $75 in this account?\"\" The bank responds, and then has it's own individually set policy per account type as to how to treat that hold. Sometimes they reserve no money whatsoever - you are free to spend that money right out and rack up NSF fees to your heart's content. Yet some policies are to treat this identically to a hard hold and keep the money locked down until released. The hard hold is treated very much like an actual expenditure transaction, in that the money is locked and shown as no longer available to you. This varies by bank - some banks use an \"\"Account Balance\"\" and an \"\"Available Balance\"\", and some have done away with these dual terms and leave it up to you to determine what your balance is and what's \"\"available\"\" (or you have to call them). The key difference in the hard hold and a real expenditure is, technically, the money is still in your bank account; your bank has merely \"\"reserved\"\" it, earmarking it for a specific purchase (and gently promising the merchant they can have their money later), but the biggest difference is there is a time-limit. If a merchant does not process a completion to the transaction to claim the money, your bank will lift the hold after a period of time (I've seen 7-30 days as typical in the US, again varying by institution) returning your money to your balance that is available for purchasing and withdrawal. In every case, any vaguely decent banking institution allows you to call them, speak to some bank employee, and they can look up your account and inform you about the different sort of holds that are on your account that are not pending/completed purchase transactions. From a strictly cynical (perhaps rightly jaded) point of view, yes this is also used as a method to extort absurdly high fees especially from customers who keep a low balance in their account. I have had more than one bank charge NSF fees based on available balances that were due to holds made by gas pumps, for instance, even though my actual \"\"money in my account\"\" never went below $0 (the holds were for amounts larger than the actual transaction). And yes, the banks usually would waive those fees if you bothered to get someone on the phone or in person and made yourself a nuisance to the right person for long enough, but they made you work for it. But I digress.... The reality is that there are lots of back and forth and middle-men in transactions like this, and most banks try to hide as much of this from you the client as possible, partly because its a huge confusing hassle and its part of why you are paying a bank to handle this nonsense for you to start with. And, as with all institutions, rules and policies become easily adjusted to maximize revenues, and if you don't keep sizable liquid minimum balances (100% of the time, all year long) they target you for fees. To avoid this without having fat wads of extra cash in those accounts, is use an entirely disconnected credit card for reservations ONLY - especially when you are traveling and will be making rentals and booking hotels. Just tell them you wish to pay with a different card when you are done, and most merchants can do this without hassle. Since it's a credit card with monthly billing you can often end up with no balance, no waiting around for a month for payments to clear, and no bank fees! It isn't 100%, but now I never - if I can possibly avoid it - use my debit/bank card to \"\"reserve\"\" or \"\"rent\"\" anything, ever.\"",
"title": ""
},
{
"docid": "18b7559a6edda684caf66c1f0c3a4e40",
"text": "\"Your bank will undoubtedly charge you a fee for the \"\"chargeback\"\" and so while you will get your money back faster, you will likely end up with less than you would if you were not so impatient and just waited a few days for the refund to show up. I suppose it depends on whether you consider this a downside or not.\"",
"title": ""
},
{
"docid": "460dca0b3e5b5f08a08830116926fea6",
"text": "The fact that your credit card has seen the payment is strong evidence that the transaction did in fact take place. But it's not unusual for there to be a delay of one or two business days before transactions show up in your online banking records. Saturday and Sunday are not business days. I bet you will see it on Monday. If it's not there by Tuesday, you could call the bank.",
"title": ""
},
{
"docid": "362f05a523b3b1facc4c35235924f422",
"text": "That's how my power company does it. You authorize them to direct debit recurring monthly. If they screw up and withdraw $1000, you're out until it gets fixed. But it varies from company to company. Not everyone's situation is like your online banking.",
"title": ""
},
{
"docid": "7e10f9fb1ebe25140c06de0de01657db",
"text": "He has my bank account info, and I just want to know where I stand legally. Legally you can't keep the money. It would either go back to the originator or to Government unclaimed department. I got a bunch of missed calls from an unknown number and a really unprofessional email from a guy who supposedly worked for UNICEF saying I had 4 hours until I am suppose to be visited by police and that there was nowhere I could run to. These are common tactics employed to ensure you take some action and transfer the real money somewhere. Do not succumb to such tactics. The money is still in my account I have not touched it. Advise your Bank immediately that there is this deposit into your account that is not your's. Let the bank take appropriate action. Do not authorize Bank to debit your account. The max you can do is authorize the bank to reverse this transaction. The best is stick to statement that said transaction is not yours and Bank is free to do what is right. There is a small difference and very important. If you authorize bank to debit, you have initiated a payment. So if the original payment were revered by originator bank, you are left short of money. However if your instructions are very clear, that this specific transaction can be reversed, you cannot be additionally debited if this transaction is reversed. He has my bank account info, Depending on how easy / difficult, my suggestion would be monitor this account closely, best is if you can close it out and open a new one.",
"title": ""
},
{
"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": "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": "0fe8ad531b8303ea06ea6b21256025fe",
"text": "I don't believe Saturday is a business day either. When I deposit a check at a bank's drive-in after 4pm Friday, the receipt tells me it will credit as if I deposited on Monday. If a business' computer doesn't adjust their billing to have a weekday due date, they are supposed to accept the payment on the next business day, else, as you discovered, a Sunday due date is really the prior Friday. In which case they may be running afoul of the rules that require X number of days from the time they mail a bill to the time it's due. The flip side to all of this, is to pick and choose your battles in life. Just pay the bill 2 days early. The interest on a few hundred dollars is a few cents per week. You save that by not using a stamp, just charge it on their site on the Friday. Keep in mind, you can be right, but their computer still dings you. So you call and spend your valuable time when ever the due date is over a weekend, getting an agent to reverse the late fee. The cost of 'right' is wasting ten minutes, which is worth far more than just avoiding the issue altogether. But - if you are in the US (you didn't give your country), we have regulations for everything. HR 627, aka The CARD act of 2009, offers - ‘‘(2) WEEKEND OR HOLIDAY DUE DATES.—If the payment due date for a credit card account under an open end consumer credit plan is a day on which the creditor does not receive or accept payments by mail (including weekends and holidays), the creditor may not treat a payment received on the next business day as late for any purpose.’’. So, if you really want to pursue this, you have the power of our illustrious congress on your side.",
"title": ""
}
] |
fiqa
|
ec8c1e67e5b7b3de724e608af68bc636
|
Does a growing economy mean the economy is becoming less efficient?
|
[
{
"docid": "c3ee2200952b082f62092d65b776999e",
"text": "It's a kook movie made by folks who combine conspiracy quackery with repackaged socialism. If you're into socialist theory, read Marx or some other intellectual socialist. That said, growth and efficiency are not the same thing. If I'm running a lemonade stand, I can grow by hiring more people at $X/hr or increase efficiency by purchasing an electric juicer and hiring fewer people.",
"title": ""
},
{
"docid": "5da547d40bc58ce938dde6001001f3f8",
"text": "Growth and efficiency can occur independently of each other. For instance, if an economy consists of one inefficient business and then a second more efficient business opens to compete agains the first the overall efficiency increases while the economy grows. New industries tend to be inefficient at the beginning (since initiation is more important than optimisation) and then become more efficient over time. Agriculture is an amazingly efficient business if you consider how many people now produce the amount of food we consume in comparison to only 100 years ago. Plus, efficiency is not only about producing extra widgets. You could produce the same number of widgets for lower cost. Outsourcing to China (taking advantage of their lower cost of production) increases the efficiency of the US economy, but also increases the efficiency of the Chinese economy (since extra work is created producing more things). Lower costs in the US lead to increased investment in other production. Increased production in China leads to the rising wages there. Growth can be achieved in both places for very different reasons. So, no, growth doesn't have to come about through less efficiency.",
"title": ""
},
{
"docid": "460d85a7c8ff70a578985dbad0479ede",
"text": "A growing economy should become more efficient because of increased opportunity for division of labor: specialization. External regulation or monetary policy external to the free market can cause parts of the economy to grow in response to said regulations. This creates inefficiencies that are wrung out of the economy after the policies reverse. A couple of examples: Tinkering with the economy causes the inefficiencies.",
"title": ""
}
] |
[
{
"docid": "ec7ef0fd83a1c0b24e84f61e5576178f",
"text": "I don't understand your question. What the article is talking about is a bit more than circulating money indiscriminately. It is saying that by circulating more of it to rich and less to the poor will result in less growth overall, which I think we can all agree is a bad thing.",
"title": ""
},
{
"docid": "636c82034cad8c30b43c9f13cad4e238",
"text": "\"The U.S. economy has grown at just under 3% a year after inflation over the past 50 years. (Some of this occurred to \"\"private\"\" companies that are not listed on the stock market, or before they were listed.) The stock market returns averaged 7.14% a year, \"\"gross,\"\" but when you subtract the 4.67% inflation, the \"\"net\"\" number is 2.47% a year. That gain corresponds closely to the \"\"just under 3% a year\"\" GDP growth during that time.\"",
"title": ""
},
{
"docid": "ae970d86fb613a52eccde066988c16a8",
"text": "that was not the argument posited, and it would be superfluous if it were. it does nothing to challenge hanauers argument, as hanauer acknowledges this tenet which further informs his broader view that this phenomenon results in the absence of economic growth.",
"title": ""
},
{
"docid": "17361070131059b6ba867cba09f1d51b",
"text": "The President, Democrat or Republican, has very little effect on the growth or performance of an economy. The Federal Reserve has the largest impact, followed by Congress. Interestingly, if US government spending was not frozen in 2010, the US would have grown closer to the historical average of 3%. Government spending, which is controlled by Congress, brought down GDP growth.",
"title": ""
},
{
"docid": "612503d4c8d6c15915c1625fbdbd65ce",
"text": "OMG. A recession is coming. Wait...hasn't that been a true statement since forever? No shit a recession is coming. That's like saying a thunderstorm is coming. This is a natural part of economics. Recessions are a necessary part of growth, almost like growing pains. Now the real question is 'when will the recession happen.' However nobody truly knows that, so it's better to spend your efforts making sure you're prepared for when a recession occurs as opposed to worrying about when that will happen.",
"title": ""
},
{
"docid": "2e0a3ac799b763902f5b4ec1ae24189f",
"text": "we have massive numbers of people out of work and our infrastructure is crumbling. We put people to work just like we did in the 30's; our infrastructure gets fixed and so does our economy. I totally agree that for an economy to grow we have to make more stuff. We're not making the stuff now because people cannot afford to purchase it. If given funds, people would purchase stuff, and stuff would get made. This got us out of them great depression and has kept Scandinavia strong, and even got Iceland out of it's terrible brush with Libertarianism. Brazil is becoming a first world powerhouse by this sort of redistribution. Redistributing money down the ladder has the benefit of working. Austerity leads to Greece. And Spain. And Portugal. And Ireland. But not Germany, because they deficit-spent their way out of their recession.",
"title": ""
},
{
"docid": "801125f5adf1109ba87736274e2082da",
"text": "\"Wealth is not distributed equally in any economy. And, even if it were, differentiation between people would lead to different interests being expressed in different ways. As people either attempt to earn more (to improve their situation) or different people express those interests in different ways (saving money to go on a skiing holiday, or to put a downpayment on a house) people invite new products and services to be created to satisfy those demands. In addition, there is the problem of uncertainty. People save money today to cope with uncertainty tomorrow (healthcare, pensions, education, etc.). Those savings don't remain idle, but are lent to others who believe that they can make a return through investing in new businesses or ideas. The point being that any dynamic economy will experience change in the amount of goods available to the people within that economy. From an economic perspective \"\"growth\"\" is just another permutation. From a political perspective, \"\"growth\"\" implies that people are getting wealthier. If that growth is asymmetrically distributed (e.g. the poor don't experience it and the middle classes don't feel they get enough of it) then that is a problem for politicians. The emerging markets of the world are trying to raise millions of people out of poverty. Growth is a way of measuring how quickly they are achieving that end. Growth, in and of itself, is meaningless. There are some people who believe that \"\"we\"\" (as some proxy of society) have enough stuff and growth is unnecessary but that implies that everyone is satisfied. For as long as some people wish to have more wealth/stuff, and have the means to achieve this, there will be growth. And for as long as there is uncertainty growth will vary.\"",
"title": ""
},
{
"docid": "dc669c07c7a6d3fd0cfcb328b92be3ba",
"text": "\"I'm not defending Faber, but from an statistical point your logic is terrible. It's a lot easier to go from 2 to 4 than it is from 200 to 400 - so any undeveloped third-world country should be growing a **lot** faster than places with existing stable economies. And to put \"\"fastest growing\"\" into context, it's 8.5%, which isn't even as big as I was expecting considering the US is growing at 3% and has a much larger base value.\"",
"title": ""
},
{
"docid": "a15e4181d6f3346f1a74af9ceb01fd59",
"text": "No, it doesn't. That would be true if somehow incomes were conserved, but they aren't. What's much more likely is that income growth becomes muted in the first world with the vast majority of income growth happening in developing economies. So, it doesn't require losing income, but it will mean constrained income growth in developed countries.",
"title": ""
},
{
"docid": "9cf796c92ec075db88a0620253a15499",
"text": "\"The answer to your question depends on what you mean when you say \"\"growth\"\". If you mean a literal increase in the aggregate market capitalization of companies, across the entire market, then, no, this sort of growth is not possible without concomitant economic growth. The reason why is that the market capitalization of each company is proportional to its gross revenue, and the sum of all revenue from selling \"\"final goods\"\" (i.e., things purchased and used by consumers) is, apart from a few technicalities, the definition of GDP. The exact multiplier might fluctuate up or down depending on investors' expectations about how sales will grow or decline going forward, but in a zero-growth economy this multiplier should be stable over the long run. It might, however, still fluctuate over the short term, but more about that in a minute. Note that all of this applies to aggregate growth across all firms. Individual firms can still grow, of course, but as they must do this by gaining market share from other companies such growth would be balanced by a decline for some other firm. Also, I've assumed zero net exports (that's one of the \"\"technicalities\"\" I mentioned above) because obviously you could have export-driven growth even if the domestic economy were stationary. However, often when people talk about \"\"growth\"\" in the market, what they really mean is \"\"return\"\". That is, how much does your investment earn for you. This isn't really the same thing as growth, but people often think of it that way, particularly in the saving phase of their investing career, when they are reinvesting their returns, and therefore their account balances are growing. It is possible to have a positive return, averaged across the market, even in a stationary economy. The reason why is that there are really only two things a firm can do with its net profits. One possibility is that it could invest it in growing the business. However, there is not much point in doing that in a stationary economy because by assumption no increase in aggregate consumption (and therefore, in the long run, aggregate production) are possible. Therefore, firms are left with only the second option, which is to pay them out to investors as dividends. Those dividends provide a return that is independent of economic growth. Would the stock market still be a good investment in such an economy? Yes. Well, sort of. The rate of return from firms' dividend payouts will depend on investors' demand (in aggregate) for returns on their investments. Stock prices will rise or fall, causing returns to respectively fall or rise, to find that level. If your personal desire for returns is lower than the average across the investing public, then the stock market would look like a good investment. If your desired return is higher than the average, then it will look like a poor investment. The marginal investor will, of course be indifferent. The practical upshot of this is that the people who invest in the stock market in this scenario will be precisely the ones for whom the stock market is a good investment, given their personal propensity to save and desire for returns, and so forth. Finally, you mentioned that in your scenario the GDP stagnation is due to declining population. I am less certain what this means for investment, but my first thought is that you would have a large retired population selling its investments to fund late-life consumption, and you would have a comparatively small (relative to history) working population buying those assets. This would lead to low asset prices, and therefore high rates of return. However, that's assuming that retirees need to sell assets to fund their retirement consumption. If the absolute returns on retirees' assets are large enough to fund their retirement consumption then you would wind up with relatively few sellers, resulting in high prices and therefore relatively low rates of return. It's not obvious to me which effect would dominate, and so it's hard to say whether or not the resulting returns would look attractive to the working-age population.\"",
"title": ""
},
{
"docid": "4eea1266177b47feac63c58f7fe87a70",
"text": "Today’s up and coming tech companies are taking value from the existing companies so I believe there can be a net loss. Also, efficiency gains are going to a smaller portion of the population, and if they don’t increase their spending to make up for the decrease in the spending of those who are falling behind, then that might cause a decrease in economic activity. Of course, there are a lot more up and coming people in the word too, so they could very well outnumber those in the US/Western Europe regions.",
"title": ""
},
{
"docid": "c453261c2cf0ac5964870d3679062958",
"text": "Some innovations increase productivity quite a bit. So in the long run, innovations is a main driver or economical growth. And innovation is fueled by, indeed, debt. The straight curve in the video, the economical growth, should not be a straight line, but a upwardly curved one. It cannot go down because innovations in productivity are not lost (I challenge you for an example contradicting this. Normally, every upward cycle should create an extra increase in productivity. The government also plays a role in stimulating innovation. I loved this video btw.",
"title": ""
},
{
"docid": "edc8f5acc6acb7c172f0f6631a96b3aa",
"text": "You do know that since the shale gas boom started the cost of energy declined significantly, don't you? Your theory is a bit simplistic and had more than a few holes. GDP growth is not that contingent on energy prices. How do you factor in increasing fuel efficiency in your theory?",
"title": ""
},
{
"docid": "55f5cae08ad8656a8f742e86aee56cf7",
"text": "While there could be other factors, the chart at the top made me not want to read the article... it's a gain of less than 0.1% in a year in a growing economy. Keep this up and they'll be screwed by 2040.",
"title": ""
},
{
"docid": "362077d02a7056589fbe1c25e18915f3",
"text": "\"Check out Irwin Schiff's \"\"How an Economy Grows and Why it Doesn't\"\". It explains how economy's work using a comic format, explaining investment, savings, banking, gov't, taxation,etc, although you may need to be at least 10 to understand some of the concepts. :)\"",
"title": ""
}
] |
fiqa
|
f612eb51ee229c7d190a5c583f9e2616
|
How does a Non US citizen gain SEC Accredited Investor Status?
|
[
{
"docid": "8730be753a1406fab4444dcbb40296f3",
"text": "Here are the SEC requirements: The federal securities laws define the term accredited investor in Rule 501 of Regulation D as: a bank, insurance company, registered investment company, business development company, or small business investment company; an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million; a charitable organization, corporation, or partnership with assets exceeding $5 million; a director, executive officer, or general partner of the company selling the securities; a business in which all the equity owners are accredited investors; a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person; a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes. No citizenship/residency requirements.",
"title": ""
}
] |
[
{
"docid": "6e9ebc57e4df203c6ab584cc9e5ec0ed",
"text": "\"First of all, the annual returns are an average, there are probably some years where their return was several thousand percent, this can make a decade of 2% a year become an average of 20% . Second of all, accredited investors are allowed to do many things that the majority of the population cannot do. Although this is mostly tied to net worth, less than 3% of the US population is registered as accredited investors. Accredited Investors are allowed to participate in private offerings of securities that do not have to be registered with the SEC, although theoretically riskier, these can have greater returns. Indeed a lot of companies that go public these days only do so after the majority of the growth potential is done. For example, a company like Facebook in the 90s would have gone public when it was a million dollar company, instead Facebook went public when it was already a 100 billion dollar company. The people that were privileged enough to be ALLOWED to invest in Facebook while it was private, experienced 10000% returns, public stock market investors from Facebook's IPO have experienced a nearly 100% return, in comparison. Third, there are even more rules that are simply different between the \"\"underclass\"\" and the \"\"upperclass\"\". Especially when it comes to leverage, the rules on margin in the stock market and options markets are simply different between classes of investors. The more capital you have, the less you actually have to use to open a trade. Imagine a situation where a retail investor can invest in a stock by only putting down 25% of the value of the stock's shares. Someone with the net worth of an accredited investor could put down 5% of the value of the shares. So if the stock goes up, the person that already has money would earn a greater percentage than the peon thats actually investing to earn money at all. Fourth, Warren Buffett's fund and George Soros' funds aren't just in stocks. George Soros' claim to fame was taking big bets in the foreign exchange market. The leverage in that market is much greater than one can experience in the stock market. Fifth, Options. Anyone can open an options contract, but getting someone else to be on the other side of it is harder. Someone with clout can negotiate a 10 year options contract for pretty cheap and gain greatly if their stock or other asset appreciates in value much greater. There are cultural limitations that prompt some people to make a distinction between investing and gambling, but others are not bound by those limitations and can take any kind of bet they like.\"",
"title": ""
},
{
"docid": "2a8733d681a4084e4ea7750776f7b865",
"text": "you dont need any permits or be inside the US to trade the exact same securities on US exchanges. you can literally move your bitcoin from a chinese exchange to us exchange in seconds. i don't see how you can possibly run into legal issues if anyone from outside the country can trade bitcoins on an exchange inside the country without any permit. a lot of these exchanges dont ask for ID or social security number anyways. none of it is government regulated. also trading anything is never a passive income. theres no such thing as an easy or obvious investment. there are always risks- and the actual risk is often deceivingly low",
"title": ""
},
{
"docid": "2343c02755c49de7b8008466b7274762",
"text": "You don't need a visa to invest in US equity. You don't need a visa to profit from US equity. There may be other legal considerations, but they aren't visa related, hope that helps",
"title": ""
},
{
"docid": "aad964023bfe20997bec03f865987ce6",
"text": "\"Given that such activities are criminal and the people committing them have to hide them from the law, it's very unlikely that an investor could detect them, let alone one from a different country. The only things that can realistically help is to keep in mind the adage \"\"If something sounds too good to be true, it probably is\"\", and to stick to relatively large companies, since they have more auditing requirements and fraud is much harder to hide at scale (but not impossible, see Enron). Edit: and, of course, diversify. This kind of thing is rare, and not systematic, so diversification is a very good protection.\"",
"title": ""
},
{
"docid": "2068ef56056bfdd3913276260dcb0db7",
"text": "As far as I know, with ADRs you're essentially trading by proxy -- a depository bank is holding the actual stock certificate, and must provide you with the actual stock on demand. The one thing that is different is that in the event that the ADR is terminated (which sometimes happens with mergers), you have a limited period of time to sell the shares -- otherwise, you get the actual foreign stock that you may or may not be able to trade without transferring to a different broker.",
"title": ""
},
{
"docid": "7e71aab4db2eebd2a6cc2e519ded63c7",
"text": "\"Life would be nicer had we not needed lawyers. But for some things - you better get a proper legal advice. This is one of these things. Generally, the United States is a union of 50 different sovereign entities, so you're asking more about Texas, less about the US. So you'd better talk to a Texas lawyer. Usually, stock ownership is only registered by the company itself (and sometimes not even that, look up \"\"street name\"\"), and not reported to the government. You may get a paper stock certificate, but many companies no longer issue those. Don't forget to talk to a lawyer and a tax adviser in your home country, as well. You'll be dealing with tax authorities there as well. The difference between \"\"unoted\"\" (never heard of this term before) and \"\"regular\"\" stocks is that the \"\"unoted\"\" are not publicly traded. As such, many things that your broker does (like tax statements, at source withholding, etc) you and your company will have to do on your own. If your company plans on paying dividends, you'll have to have a US tax ID (ITIN or SSN), and the company will have to withhold the US portion of the taxes. Don't forget to talk to a tax adviser about what happens when you sell the stock. Also, since the company is not publicly traded, consider how will you be able to sell it, if at all.\"",
"title": ""
},
{
"docid": "3a4108de7a8c8f8819cef2931d529cda",
"text": "There is a measure of protection for investors. It is not the level of protection provided by FDIC or NCUA but it does exist: Securities Investor Protection Corporation What SIPC Protects SIPC protects against the loss of cash and securities – such as stocks and bonds – held by a customer at a financially-troubled SIPC-member brokerage firm. The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash. Most customers of failed brokerage firms when assets are missing from customer accounts are protected. There is no requirement that a customer reside in or be a citizen of the United States. A non-U.S. citizen with an account at a brokerage firm that is a member of SIPC is treated the same as a resident or citizen of the United States with an account at a brokerage firm that is a member of SIPC. SIPC protection is limited. SIPC only protects the custody function of the broker dealer, which means that SIPC works to restore to customers their securities and cash that are in their accounts when the brokerage firm liquidation begins. SIPC does not protect against the decline in value of your securities. SIPC does not protect individuals who are sold worthless stocks and other securities. SIPC does not protect claims against a broker for bad investment advice, or for recommending inappropriate investments. It is important to recognize that SIPC protection is not the same as protection for your cash at a Federal Deposit Insurance Corporation (FDIC) insured banking institution because SIPC does not protect the value of any security. Investments in the stock market are subject to fluctuations in market value. SIPC was not created to protect these risks. That is why SIPC does not bail out investors when the value of their stocks, bonds and other investment falls for any reason. Instead, in a liquidation, SIPC replaces the missing stocks and other securities when it is possible to do so.",
"title": ""
},
{
"docid": "8a1eeb8bc084a1d378814a548ab4109a",
"text": "Usually, you can buy ETFs through brokerages. I looked at London to see if there's any familiar brokerage names, and it appears that the address below is to Fidelity Investments Worldwide and their site indicates that you can buy securities. Any brokerage, in theory, should allow you to invest in securities. You could always call and ask if they allow you to invest in ETFs. Some brokerages may also allow you to purchase securities in other countries; for instance, some of the firms in the U.S. allow investors to invest in the ETF HK:2801, which is not a U.S. ETF. Many countries have ETF securities available to local and foreign investors. This site appears to help point people to brokers in London. Also, see this answer on this site (a UK investor who's invested in the U.S. through Barclays).",
"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": "3b0513ea719821872a14f80eda6c8c71",
"text": "ACWI refers to a fund that tracks the MSCI All Country World Index, which is A market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world. The MSCI ACWI is maintained by Morgan Stanley Capital International, and is comprised of stocks from both developed and emerging markets. The ex-US in the name implies exactly what it sounds; this fund probably invests in stock markets (or stock market indexes) of the countries in the index, except the US. Brd Mkt refers to a Broad Market index, which, in the US, means that the fund attempts to track the performance of a wide swath of the US stock market (wider than just the S&P 500, for example). The Dow Jones U.S. Total Stock Market Index, the Wilshire 5000 index, the Russell 2000 index, the MSCI US Broad Market Index, and the CRSP US Total Market Index are all examples of such an index. This could also refer to a fund similar to the one above in that it tracks a broad swath of the several stock markets across the world. I spoke with BNY Mellon about the rest, and they told me this: EB - Employee Benefit (a bank collective fund for ERISA qualified assets) DL - Daily Liquid (provides for daily trading of fund shares) SL - Securities Lending (fund engages in the BNY Mellon securities lending program) Non-SL - Non-Securities Lending (fund does not engage in the BNY Mellon securities lending program) I'll add more detail. EB (Employee Benefit) refers to plans that fall under the Employee Retirement Income Security Act, which are a set a laws that govern employee pensions and retirement plans. This is simply BNY Mellon's designation for funds that are offered through 401(k)'s and other retirement vehicles. As I said before, DL refers to Daily Liquidity, which means that you can buy into and sell out of the fund on a daily basis. There may be fees for this in your plan, however. SL (Securities Lending) often refers to institutional funds that loan out their long positions to investment banks or brokers so that the clients of those banks/brokerages can sell the shares short. This SeekingAlpha article has a good explanation of how this procedure works in practice for ETF's, and the procedure is identical for mutual funds: An exchange-traded fund lends out shares of its holdings to another party and charges a rental fee. Running a securities-lending program is another way for an ETF provider to wring more return out of a fund's holdings. Revenue from these programs is used to offset a fund's expenses, which allows the provider to charge a lower expense ratio and/or tighten the performance gap between an ETF and its benchmark.",
"title": ""
},
{
"docid": "e7b7c93adacde6bc4f0f5a51f59f48c9",
"text": "All securities must be registered with the SEC. Securities are defined as (1) The term “security” means any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a “security”, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing. thus currencies are not defined as securities. While OTC transactions of securities is not outright forbidden, there are numerous regulations issued by the SEC as a result of the 1943 Exchange Act and others that make this difficult and/or costly. Many other securities are exempted from registration thus trade in a way that could be called OTC. Different countries have variances upon US law but are very similar. Any security could be traded OTC, but law prohibits it expressly or in such a way to make it relatively expensive; further, stock options are so tightly regulated that expiration dates, expiration intervals, strike intervals, and minimum ticks are all set by the authorities.",
"title": ""
},
{
"docid": "6d9303a97a7532a9f39858d68b75bf2a",
"text": "Without knowing the specifics it is hard to give you a specific answer, but most likely the answer is no. If they limit the participation in the site to accredited investors, this is probably not something they are doing willingly, but rather imposed by regulators. Acredited investors have access to instruments that don't have the same level of regulatory protection & scrutiny as those offered to the general public, and are defined under Regulation D. Examples of such securities are 144A Shares, or hedgefunds.",
"title": ""
},
{
"docid": "ba94b1b00e70a6501fe7dbcae3af0781",
"text": "The UK has historically aggressive financial law, inherited from Dutch friendship, influence, and acquisitions by conquest. The law is so open that nearly anyone can invest through the UK without much difficulty, and citizens have nearly no restrictions on where to invest. A UK citizen can either open an account in the US with paperwork hassles or at home with access to all world markets and less paperwork. Here is the UK version of my broker, Interactive Brokers. Their costs are the lowest, but you will be charged a minimum fee if you do not trade enough, and their minimum opening balance can be prohibitively high for some. If you do buy US products, be sure to file your W-8BEN.",
"title": ""
},
{
"docid": "19c215406af14db05a1acffe9423ae75",
"text": "Nothing. Stockbrokers set up nominee accounts, in which they hold shares on behalf of individual investors. Investors are still the legal owners of the shares but their names do not appear on the company’s share register. Nominee accounts are ring-fenced from brokers’ other activities so they are financially secure.",
"title": ""
},
{
"docid": "7fd6d379a23acdd8369d63e87fb51d0e",
"text": "You're not physically present in the US, you're not a US citizen, you're not a green card holder, and you don't have a business that is registered in the US - US laws do not apply to you. You're not in any way under the US jurisdiction. Effectively connected income is income effectively connected to your business in the US. You're not in the US, so there's nothing to effectively connect your income to. Quote from the link: You usually are considered to be engaged in a U.S. trade or business when you perform personal services in the United States. You ask: If I form an LLC or C corp am I liable for this withholding tax? If you form a legal entity in a US jurisdiction - then that entity becomes subjected to that jurisdiction. If you're physically present in the US - then ECI may become an issue, and you also may become a resident based on the length of your stay.",
"title": ""
}
] |
fiqa
|
9f3f690e9ae40046c0883a363cd660c3
|
Obtaining Pound Sterling Cheque in US to pay for family history records from England?
|
[
{
"docid": "c86b0d267984e7b5f0929fb77b2bd8f7",
"text": "Most US banks don't allow you the ability to draft a foreign currency check from USD. Though, I know Canadian banks are more workable. For instance, TD allows you to do this from CAD to many other currencies for a small fee. I believe even as a US Citizen you can quite easily open a TD Trust account and you'd be good to go. Also, at one time Zions bank was one of the few which lets US customers do this add-hoc. And there is a fee associated. Even as a business, you can't usually do this without jumping thru hoops and proving your business dealings in foreign countries. Most businesses who do this often will opt to using a payment processor service from a 3rd party which cuts checks in foreign currencies at a monthly and per check base. Your other option, which may be more feasible if you're planning on doing this often, would be to open a British bank account. But this can be difficult if not impossible due to the strict money laundering anti-fraud regulations. Many banks simply won't do it. But, you might try a few of the newer British banks like Tesco, Virgin and Metro.",
"title": ""
}
] |
[
{
"docid": "de1d1c5642e658bd6ed124fa1b5d5316",
"text": "US bank deposits over $10K only need to be reported to FinCEN (Financial Crimes Enforcement Network- a bureau of the US Department of Treasury) if the deposits are made in cash or other money instruments where the source cannot be traced (money orders, traveler checks, etc). Regular checks and wires don't need to be reported because there is a clear bank trail of where the money came from. If your family member is giving you money personally (not from a business) from a bank account which is outside of the US, then you only need to report it if the amount is over $100K. Note, you would need to report that regardless of whether the money was deposited into your US bank account, or paid directly to your credit cards on your behalf, and there are stiff penalties if you play games to try to avoid reporting requirements. Neither deposit method would trigger any taxable income for the scenario you described.",
"title": ""
},
{
"docid": "5549b441b444749bc6bda2b1c5d03f08",
"text": "\"Once upon a time (not all that long ago), British cheques used to say something like \"\"Pay to the order of ..,,,, or bearer the sum of ...,..\"\" (emphasis added) and could be cashed by anyone unless the cheque-writer drew two parallel lines in the upper left corner of the cheque. These lines converted the instrument into a crossed cheque which could only be deposited into a bank account of the payee; a bearer of the cheque could not walk into the bank and waltz out with the cash equivalent. Perhaps British banks no longer use this styling (Indian banks still do) but if that cheque for 60k is not a crossed cheque, it better be sent securely with lots of insurance. An uncrossed cheque is the same as cash since it can be cashed by anyone. That being said, I am with @mhoran_psprep in thinking that all this is just a scam with the OP (mug) being asked to send 3600 bucks to \"\"girlfriend\"\" (scammer) to cover the cost of sending the check with full insurance, and when the check arrives and is deposited by OP into his bank, it will turn out to be a dud, and \"\"girlfriend\"\" will be long gone. The description of how the girlfriend signed a contract for 90k and received 60k of this amount upfront, but in the form of a check payable to boyfriend (!) OP reeks of scam; is this scenario realistic? In the past, I have received offers (usually from Nigeria) from \"\"women\"\" wanting to be my girlfriend, and I am sure that such offers will continue to come in the future....\"",
"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": "d81ccba684d73402c54dbdbd18286fb3",
"text": "Once you declare the amount, the CBP officials will ask you the source and purpose of funds. You must be able to demonstrate that the source of funds is legitimate and not the proceeds of crime and it is not for the purposes of financing terrorism. Once they have determined that the source and purpose is legitimate, they will take you to a private room where two officers will count and validate the amount (as it is a large amount); and then return the currency to you. For nominal amounts they count it at the CBP officer's inspection desk. Once they have done that, you are free to go on your way. The rule (for the US) is any currency or monetary instrument that is above the equivalent of 10,000 USD. So this will also apply if you are carrying a combination of GBP, EUR and USD that totals to more than $10,000.",
"title": ""
},
{
"docid": "8802d77ad261cc781967b521c631be38",
"text": "\"If the cheque is crossed (as almost all are these days), it can only be paid into an account in the name of the person it was written out to: it cannot be paid into another's account, nor can it be \"\"cashed\"\"1 – see the rules on \"\"Crossed\"\" cheques. Note: that while the recipient of the cheque cannot (legally) alter this state of afairs, the writer of a cheque that was printed pre-crossed can – at least technically – cancel the crossing (see above link). Probably the best the OP can do is pay in the cheque on the friend's behalf (as described in Ben Millwood's answer) and then either lend the friend some money until they are mobile and can get some cash to repay the OP (or have the friend write one of their own cheques which the OP can pay into their bank account). 1 As mentioned in the last section of the rules on crossed cheques, the only exception is that designated \"\"Cheque cashing shops\"\" have special arrangements to deposit cheques which they have cashed (after deducting a fee). However, they would (should?) require proof of identity (of the original payee) and so are unlikely to be of any help (and probably not worth the cost for £35). Having said that, I've never used one, so have no idea how strict they are in practice.\"",
"title": ""
},
{
"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": "e77a8a7906c26d17cf56d4ed260a758f",
"text": "\"There is no doubt that this is a scam (you ask a British solicitor for help with this sort of problem, not an American friend) but it's not as obvious as some answers seem to assume. Inheritance taxes always have to be paid before legacies can be received, and the funds are part of the estate not \"\"in the hands of the government\"\". There are certainly ways round the problem (which vary by country), but if the facts were as the asker sets out, this would be a reasonable request. You can bet they aren't and it isn't.\"",
"title": ""
},
{
"docid": "990c695c06f83b04293bc55ff1980a6d",
"text": "I suspect @SpehroPefhany is correct and that your bank will cash a check from the US Department of the Treasury. Especially since they're the same ones who guarantee the U.S. Dollar. They may hold the funds until the check clears, but I think you'll have good luck going through your bank. Of course, fees and exchange rate are a factor. Consider browsing the IRS and US Treasury Department websites for suggestions/FAQs. I suggest you line up a way to cash it, and make sure there's enough left after fees and exchange rate and postage to get the check that the whole process is worth it, all before you ask it to be shipped to you. If there's no way to do it through your bank, through a money exchange business (those at the airport come to mind) or through your government (postal bank?), and the check is enough that you're willing to go through some trouble, then you should look into assigning power of attorney for this purpose. I don't know if it is possible, but it might be worth looking into. Look for US based banks in your area.",
"title": ""
},
{
"docid": "c3ec6d61e453281b731ba7543c99feb8",
"text": "\"Money in your NRE/NRO account is your property and moving it to the U.K. is not a taxable event in the U.K. or in India. Extra paperwork is needed for transfer from an NRO account to prove that you have indeed paid taxes (or had taxes withheld) on the money in the NRO account to the Indian Government. Search this site for \"\"15CB\"\" and \"\"15CA\"\" for details.\"",
"title": ""
},
{
"docid": "a86781b481e27f434338b7e0bd423ee6",
"text": "Update, 2013: this product is no longer available. As of December 1, 2010, Travelex announced a product, the Travelex Cash Passport, which is chip-and-pin protected. You can buy it in the US and then load it up with either Euros or British Pounds. There are a few things to know about this: Right now, it is not available online at the Travelex website. You must purchase it in person at participating Travelex retail locations. I bought mine right downstairs from the Stack Overflow world headquarters! The fees that Travelex charges for foreign currency transactions will take your breath away. I purchased a £300 card for $547.15, which comes out to a 15% service charge. Travelex will give you better rates if you purchase larger amounts. There is a further 3% fee if you use a credit card (I used a debit card to avoid this). Think long and hard about whether to load it with Pounds or Euros. They charged me 5.5% above the interbank exchange rate to spend my Pound card in Euros. You get two cards, which is very convenient. You can refill the card on the web. Due to the high fees, the Chip and PIN Cash Passport is not a good idea for everyday transactions, for getting cash from an ATM, and certainly not for paying for big-ticket items like hotels. You're going to want to reserve it for purchasing things from those automated kiosks in Europe (especially gas stations, ticket machines in train stations, and toll booths) that will not work with a standard magnetic stripe card. The card worked perfectly buying tickets on the tube in London. I haven't had a chance to check it out in other countries.",
"title": ""
},
{
"docid": "2570c173435745bdfc94803f83bc1151",
"text": "Take a look at Transferwise. I find them good for currency conversions and paying people in India from a US bank account.",
"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": "5317a819de3c515bffdc09816c4468cc",
"text": "You should definitely be able to keep the US bank account and credit cards. I'm a UK citizen and resident who worked in the US for a few months (on a temporary visa) many years back and I still have the US bank account from that time. Unless you are planning on moving to the UK permanently, you also should keep your US bank account and cards to make the process of moving back there eventually easier. I would also suggest keeping/moving at least a portion of your savings to the US at regular intervals to insure you against the risk that exchange rates will be against you when you move back. It'll also make things easier when you visit the US as you presumably will every so often - if you use your US account and cards you won't get hit so badly by charges for making each individual payment.",
"title": ""
},
{
"docid": "81d9292743f49bacb9ab796d577cb2ca",
"text": "\"Some years ago I was in a similar situation with a CAD cheque. I did not experience any reservation period of months. Within Canada, around a week was usual, and as far as I remember that was the case also for the cheque deposited to the EUR account. You could ask your bank whether a certified cheque (has to be done at the \"\"home\"\" bank of the sender) will have the same reservation period and what the processing time will be anyways. I found a large variation of the (large) fees for cashing foreign cheques. It may be worth asking a few different banks for their conditions (both fees and duration for the whole process).\"",
"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": ""
}
] |
fiqa
|
6b262835b850b9c1462eefe408cc6027
|
Tenant wants to pay rent with EFT
|
[
{
"docid": "c85b3b1d6b3408c34933fabb60592ed0",
"text": "Yes, it is safe, we have been doing it for years. We prefer our tenants to make their rent payments in this manner. In fact, we prefer that they set up an automatic payment for the rent, either through their online banking or through their bank directly. Apart from getting your rent on time, this method also has the added benefit of both parties having their own records of rent payments through their bank statements, in case there is a dispute about the rent sometime down the track. Having a separate bank account just for the rent does make sense as well, it makes it easier for you to check if rent has come in, it makes it easier if you need to compare your statement without having to highlight all the rent payments amongst all other payments (you might not want to show your other incomes and spending habits to others), and you can withdraw the rents to your other account (which might offer higher interest) after it has come in, leaving a small balance most of the time in your rent account.",
"title": ""
},
{
"docid": "7c16950664e3466975125ec2af51493a",
"text": "I'd consider this offer. Keep in mind, any time you write a check, there's the information he's asking for. If it makes you feel comfortable, use the small balance account, or set up a 4th one you'll use for these incoming deposits only.",
"title": ""
},
{
"docid": "61b85cead5d73582e622371bb6e9a673",
"text": "It's safe. You give people those numbers every time you write a check. If a check is forged, and doesn't have your signature on it, the bank has to return the money to you; they get it back from the other bank, who takes whatever action it deems necessary against the forger. They've been doing this for a few hundred years, remember.",
"title": ""
},
{
"docid": "d7c3ff987e1084e9539909f92796bc8f",
"text": "What you've described is the norm in Australia, where it's rare for anyone under sixty to use cheques. Assuming they're transferring the funds using internet banking, I would have the following suggestions: You make it clear that the the funds must reach your account by the due date for rent. It is their (the tenant's) responsibility to allow for the normal transfer delay from their account to yours. This will save unpleasant arguments later if the rent is late. If you're not comfortable with your tenant knowing your banking details, set up another account specifically for receiving rental income payments and paying your costs associated with the property. This may have the added benefit of simplifying things at tax time. Another alternative, which I think others have mentioned, is to use an escrow service like PayPal, but be aware that these kinds of services will usually charge a small percentage when you withdraw your funds.",
"title": ""
},
{
"docid": "35a05cfc4c1ac63cbf2f0d766a3e4561",
"text": "\"How can someone use the account number to withdraw money without my consent? They can use your account number to game your banks phone support and try to phish their way into your account. Banks have gotten very good at combating this, but theoretically with just the address he lives in, your name, and a bad bank phone rep, he could get into your business. The account number would just be one more piece of information to lead with. I have 1 savings and 3 checking accounts with the same bank. Would they be able to gain access to the other accounts? Dependent on how incompetent the bad bank rep I referenced above is, sure. But the odds are incredibly low, and if anything were to happen, the bank would be falling over itself to fix it and make reparations so that you don't sue for a whole crap ton more. Is there a more secure and still free option that I have overlooked? Opening up yet another checking account solely for accounts receivable and transfer to accounts payable would keep your financial records more transparent. Also, banks are doing \"\"money transfer by email\"\" now, so I don't know how great that is for business transactions, but in that instance you're just giving out an email linked to a money receiving account instead of an actual account number. Paypal is also a pretty good EFT middleman, but their business practices have become shady in the past 5 years.\"",
"title": ""
},
{
"docid": "20ca120add697e990f8a83fa86dcf8f7",
"text": "It isn't EFT, but you might mention to your tenant, that many banks offer a Bill Pay service (example) where the bank will automatically mail a check to the right person for you. I have my rent setup this way. My bank will send a rent check directly to my landlord 5 days before it is due.",
"title": ""
},
{
"docid": "d807150ef0e8bb6cb73999ce5fadb96e",
"text": "I am able to set this up for my tenants by providing them with a form to fill out so that they provide their name and bank account information, and then I gave that to my bank and they establish a recurring ACH transfer. This way the tenant never gets my bank information. One note about this, I had a tenant break her lease and move out. She notified me a couple of days before the first of the month, and by the time she had moved a few days later the rent had been automatically paid. She called her bank and asked them to reverse the most recent transaction so she could have that month's rent refunded, and much to my surprise, they did. So the financial transfer is not necessarily one-way. This is in the US.",
"title": ""
},
{
"docid": "fe621e763fb92c3e5adc1f896d5837df",
"text": "\"The biggest disadvantage to you is that your tenant now knows your bank information, which means he can easily identify your source of money in the event he wins a lawsuit and wins a judgement. He will be able to have a court marshall freeze your account. However, if you deposit your tenant's check into your account as opposed to an EFT, then your tenant can basically still obtain your bank account information and freeze your account, it would just take him a bit longer to get that information. I am definitely anti-landlord in these situations because I've had to deal with so many bad ones here in NYC, but as a landlord, the best thing you can do is to create a \"\"buffer\"\" account for you to deposit tenant rent money into, then transfer the money from the buffer account to your regular account. This would prevent the tenant from knowing your personal bank information and greatly delay the tenant receiving his judgement from an assumed court win against you. My source: I had to take my landlord to court, and after obtaining a judgement, I got a court marshall to begin the process of closing access to her account (she couldn't access the money in that account). The process resulted in her sending me a check (assuming from her other account) for the judgement since her account was frozen and she couldn't access any of her money.\"",
"title": ""
},
{
"docid": "9b72c2b9e50bd860b52afa383f8bbe87",
"text": "Other options would be to use paypal, your tenant would only need your e-mail address. Most banks have a similar system to do a person-to-person transfers. My bank uses an e-mail address and only the last 4 digits of the account number.",
"title": ""
},
{
"docid": "6c9e418ba7fef2c6a2d610751412d4cc",
"text": "Similar to @SoulsOpenSource's answer, I would suggest Venmo, which works like PayPal but is free for debit-card-to-debit-card transactions. More information here.",
"title": ""
},
{
"docid": "12cc993d5189d5518a747f28b8e28f5e",
"text": "The mode of payment mentioned by your bank is called the ACH(Automatic Clearing House) which means that anyone(Trusted payment gateway owners like banks themselves) can process payments. There can be a fraud declared against any payment that you have made and you can get every single penny back. This amount can not be withdrawn in cash at all. However for your situation I would suggest that you ask your bank to block any transactions above the amount of a specific sum, this way they will require your authorization to finalize the payment. You should feel safe after this. Also no one can access any other account apart from the one whose details you are giving out so do not worry about this guy(or anyone else for that matter) to be able to access your other accounts. Hope this helps. (I have experience in payment gateways so I do understand these procedures.) Cheers!!",
"title": ""
},
{
"docid": "f4d79bbf33fad672df6b4207fd7e95a9",
"text": "You can consider opening accounts either in Paypal or Google Wallet. In this way, you link your bank information to these accounts and the only information you need to provide your tenant is your e-mail id. Its safe and in this scenario -- just money transfer through bank account, there is no fee either for the sender (your tenant) or the receiver (you).",
"title": ""
},
{
"docid": "c9825f66ddff2952845d37a42b68709f",
"text": "\"I live in Kenya, and also here we have corruption. However, we use EFT, RTGS, Mobile Money and its more safe than cheques. Beware, that paper based payments cost you way more than anything electronic. Often the bank charge you for the cheque book, they charge for receiving paper based payment instruments, and settlement is often a day or two, while mobile/electronic settlement is instant. Seen from a tenants perspective, its also easier. Imagine too, the small likelihood that you loose the cheques from your tenants? Your fear for your account is understandable, but you may need to learn a little now, about how accounts are handled. In an online community only the persons with the necessary electronic credentials can withdraw from your account, being it online via your screen, or at the cashier, or by other means. Therefore, your money are safer via the electronic means. The cause of your concern / unease can be that you are relinquishing your control from a paper-based, visible system, into a system which you may not know so much about, maybe because of that you have not done so much on computers, yet. As a most recent caveat, though, don't get into the so called bitcoin technology, it is not safe, and as you saw, most recently, the very owner himself became the perpetrator breaking his very own bank by artificially inflating amounts on his own account, according to Japanese authorities. Now, electronic banking has been in existence since soon 40 years. Its based on cash, so behind the scenes, between the banks, huge deposits of cash are being moved physically, around from vault to vault, in the bank's money exchange / transaction settlement system. Thereby, a bank does not need to physically transfer money from one physical bank building to another - as they have huge loads of cash stashed in central depositories, between which they can now exchange money as compensation for cheques and electronic transfers. So, behind the scene of the electronic world, there are still physical cash being moved around, deep under the ground, in such vaults. I hope this has given you a little bit of confidence in the \"\"modern times\"\". If you have further questions, you are welcome. These were my 50 cents :-). My background is in software development, where I have worked on banking systems for more than 10 years, making banking systems, as part of huge teams, working for the largest banks in the world.\"",
"title": ""
},
{
"docid": "b170129c88dde8aa46a26d51aa91d284",
"text": "\"In Britain it's standard practice to use an electronic bank transfer, otherwise known as a \"\"standing order\"\" for the monthly rent payment. Many letting agents insist on it here in Britain. It's rare to hear of fraud. It is possible to setup a Direct Debit with the account numbers, as happened in a famous case where Jeremy Clarkson claimed losing account numbers wasn't a problem. If a direct debit is taken from your account, then you are protected by the the Direct Debit guarantee which means that you get a full and immediate refund if there is any fraud or unexpected payments spotted. Some landlords, particularly of bedsits accept plain old cash, however that's not recommended as there is no trace of it being paid, which could lead to legal disputes.\"",
"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": "dd8abe515e2560fb1e56fac0036c1498",
"text": "Given a routing number / account number, it's easy to print a check with those details. All you need is a MICR font. No EFT needed. I would recommend that instead, you get his account information, and set up a direct withdrawal. Of course, then you could potentially use HIS account fraudulently, but that would be true even if he just wrote you a check.",
"title": ""
},
{
"docid": "a68359a66c665d1daba3d8492e89c600",
"text": "Alternative solution with possibly better results: Use a 3rd party to transfer money between both of you. 2 Services you may want to look at: Rent share might be the best option. We are using it to split payment between 3 people in our unit. The owner is getting a single check that appears to be coming from all of us. The payment is automatic and goes through every month. I'm not sure if you as the owner could collect money electronically as opposed to receiving a check. It sounded like you didn't necessarily care about that though.",
"title": ""
}
] |
[
{
"docid": "72f8c668c9facea97d1fba0ad6d5cdb9",
"text": "It depends on the terms of the lease, but it's hard to imagine a lease that would allow to do this unilaterally with no strings attached. That means it actually depends not on how much you like your landlady, but on how much she likes you. In general, by signing the lease you assume a contractual obligation to pay the rent every month for the entire term of the lease. In theory, you can be sued if you don't do that. In practice, a lot depends on your relationship with your landlord, as well as the rental market in your area. If the landlord can easily find a replacement tenant, they may be willing to allow you to leave early. If the rental market is slow, they will be more likely to hold you to the agreement. Obviously, if you have a good relationship with the landlord, they may be more inclined to go easy on you. As far as telling your landlady you want to terminate the lease early, unless she's a particularly nasty person, you can just go ahead and tell her you'd like to leave early. What you can't do is actually stop paying rent. If you're on reasonably good terms with your landlady, you could just tell her your situation and say you'd like to move out. She may be willing to work out an arrangement where she lists the apartment while you're still living there, allows prospective tenants to view it while it's occupied, and then has you move out if and when someone else wants to move in (e.g., at the end of the month). Again, exactly how this works will probably depend on the rental market. Assuming you're in the USA, here is a useful page with some info on breaking a lease. As mentioned there, the legal details vary by state.",
"title": ""
},
{
"docid": "1996cb63df62a460f6fbd2a182ca33f5",
"text": "Also you would need to consider any taxation issues. As he will be paying you rent you will need to include this as income, plus any capital gains tax on the re-sale of the property may need to be paid.",
"title": ""
},
{
"docid": "669e68311bbc565174483b8e4fc5519f",
"text": "\"I'd say your tenant is out $750, not you. How you handle it is totally personal preference. If you want to be the super-nice landlord and eat the loss this one time, then you might gain some karma and hopefully they'll be awesome tenants for the remainder of their stay. Are they the kind of tenants you want to be nice to because they deserve it? You (and she) have no way to prove she ever actually tried to pay you. Sound like she is learning a $750 lesson. \"\"Don't leave cash in a mailbox, and always get a receipt for rent paid.\"\" Your insurance company would likely not pay out as it'd be below a typical deductible and you can't really prove the money ever existed. You'd be better off just taking the loss. Think about it this way: How would you expect a bank or utility company to respond to this situation? \"\"Yeah, I left my mortgage as a cash-filled envelope on your doorstep. You didn't get it? I told you I'd do it!\"\" Guess who's paying double mortgage and a late fee? You're not stuck with option 1, you're choosing to do it. She could refuse and fight you on it, which might not be worth the headache and potential small-claims court. But you're entitled to receive the rent and she is obligated to pay it. And \"\"paying it\"\" means making sure you actually receive it.\"",
"title": ""
},
{
"docid": "21e37b58efe357aa7b863ccf54074853",
"text": "Yes, automatic rate increases are typical in my experience (and I think it's very greedy, when it's based on nothing except that your lease is up for renewal, which is the situation you are describing). Yes, you should negotiate. I've had success going to the apartment manager and having this conversation: Make these points: Conclude: I am not open to a rate increase, though I will sign a renewal at the same rate I am paying now. This conversation makes me very uncomfortable, but I try not to show it. I was able to negotiate a lease renewal at the same rate this way (in a large complex in Sacramento, CA). If you are talking to a manager and not an owner, they will probably have to delay responding until they can check with the owner. The key really is that they want to keep units rented, especially when units are staying empty. Empty units are lost income for the owner. It is the other empty units that are staying empty that are the huge point in your favor.",
"title": ""
},
{
"docid": "ebcb79a96f86abe400f39b4e584aba25",
"text": "It's very possible that someone would lie to their landlord/landlady, but not be prepared to lie to the police. So here's what I would do. Advise your tenant that since her money has been stolen from your letterbox, she should report the theft to the police. If she refuses to report the theft to the police, then her story is probably a lie. In which case, treat the rent as deliquent and demand payment in full. Invoke whatever kind of recourse is available in your jurisdiction. If she goes ahead and reports the theft, then it's very likely that her story is true. It's probably in your interest to stay on good terms with such a tenant, so you could offer to split the loss with her. But let her know that this is a one-time offer, and you won't be so generous again.",
"title": ""
},
{
"docid": "ceea8f391e6b368ca4141353e0fed71e",
"text": "Normally if you sublet your apartment, the landlord would pay you back the security deposit and the new tenant would need to pay a new security deposit to the landlord. (In my experience) You never want to get in a situation where something like this happens. This is not normally how sublets are structured.",
"title": ""
},
{
"docid": "4ca1b59e45e7dd98ad3c7f6ba8724c30",
"text": "They call you because that is their business rules. They want their money, so their system calls you starting on the 5th. Now you have to decide what you should do to stop this. The most obvious is to move the payment date to before the 5th. Yes that does put you at risk if the tenant is late. But since it is only one of the 4 properties you own, it shouldn't be that big of a risk.",
"title": ""
},
{
"docid": "5462c5440487993203311af78d85f3d5",
"text": "\"We change it every so often to reduce fraud. If you're absolutely sure you didn't just send money to a scammer impersonating a landlord, this has nothing to do with fraud-- they're playing a game with you. By changing the account number frequently, it makes it more likely you make a mistake in entering the payment account. When they come back to you a few days past due saying \"\"we never received your rent,\"\" you'll eventually realize it got sent to the wrong account. Now you owe them late fees, and there's really nothing you can do about it-- you did not in fact pay them on time; you sent it to the wrong account! It's an easy way for them to collect an additional few thousand dollars a year. Anytime a small business or landlord says they have to do something \"\"weird\"\" to reduce fraud, chances are it's a pretense to you getting hosed in some way.\"",
"title": ""
},
{
"docid": "eda0f6e572c77ee7731c607bd7b2d042",
"text": "You are not a landlord. You have choices: The current situation is charity. And that's ok, so long as you acknowledge it. In the big picture, anything less than market rent is a gift that you are giving the person living in your house. A good tenant might keep the place in better shape, and deserve a lower rent, but that's a quid pro quo. In the end, landlording is a business. If you had 10-20 apartments, they would be proving an income to you and you would have a large chunk of your wealth tied up in it. You would keep the apartments in good shape both to be legal and not a slumlord, but you'd also collect market rent. $100/apt would be $1000-$2000/mo income to you and your family. You wife is right. As always. You have a decision to make to stop the bleeding.",
"title": ""
},
{
"docid": "7c4fb00e6b3071eec30e978b68f7d54e",
"text": "Maybe you should consider setting up a Taxpayer Identification Number (TIN) for your business dealings as a landlord and consider providing that instead of your SSN for this type of thing. I am assuming (if this is legitimate) they want it so they can send you a 1099 as they might be obligated to do if they are claiming the rent as a business expense. Also, I'd suggest having the tenant tell their employer to contact you directly. There is no need for the tenant in this situation to also get your SSN/TIN.",
"title": ""
},
{
"docid": "6a811ba05b575681ba2d20adffe6a2fc",
"text": "This is something you are going to have to work out with the leasing company because your goal is to get them to make an exception to their normal rules. I'm a little surprised they wouldn't take 6 months pre-payment, plus documentation of your savings. One option might be to cash in the bonds (since you said they are mature), deposit them in a savings account, and show them your account balance. That documentation of enough to pay for the year, plus an offer to pay 6 months in advance would be pretty compelling. Ask the property manage if that's sufficient. And if the lease is for one year and you're willing to pay the entire year in advance, I can't see how they would possibly object. If your employment prospects are good (show them your resume and explain why you are moving and what jobs you are seeking) a smart property manager would realize you'll be an excellent, low-risk tenant and will make an effort to convince the parent company that you should live there.",
"title": ""
},
{
"docid": "acaf0037dbf1ceb8761d571c06a645fe",
"text": "There are certain situations where you could legally pay yourself rent, but it'd be in the context of multiple business entities interacting, never in the context of an individual renting their own property. Even if you could, any rent paid to yourself would count as rental income, so there'd be no benefit. Edit: I was hunting for examples where it might be acceptable, and didn't, but I found a good explanation as to why it is not acceptable from Brandon Hall on a BiggerPockets post: To get technical, you will be going up against the Economic Substance Doctrine which states that a transaction has economic substance if: (1) the transaction changes in a meaningful way (apart from Federal income tax effects) the taxpayer’s economic position; and (2) the taxpayer has a substantial purpose (apart from Federal income tax effects) for entering into such transaction. By transferring your primary residence into a LLC, you would not be changing your economic position. Further, you do not have a substantial purpose for entering into such transaction other than to simply avoid paying federal income taxes. So it might make sense if multiple people owned the LLC that owned the property you wanted to rent, and there are instances where company X owns holding company Y that owns an office building that company X rents space in. But if you're the sole player in the LLC's then it sounds like a no-go.",
"title": ""
},
{
"docid": "835f85f2adcd12904dc70159172d3f64",
"text": "__________ _________ ____________ Therefore, I get the outcome I want. The human brain must think: it can't stop. If you don't believe me, try meditating. The mental process of putting stuff in those blanks is called rationalization. This is a bored mind who wants something. If that mind is not particularly well disciplined, those things will get pretty unrealistic. That is what has happened to your friend. Landlords do not like drama. They do like money. Generally a landlord will be happy to take your money any reasonable way that they can achieve. It sounds like either your landlord lost the ability to do credit cards, or he got sick of paying the 3% overhead, or some other overhead costs that may be higher because he does not have the right credit card merchant service. For instance PayPal Here charges 2.70% flat, but a traditional swiper can cost up to $2000 a year in trumped up fees and charges. As soon as the landlord calls the rent a debt, he has to take cash. But in most places, rental is at-will, and the landlord can evict for any reason or no reason at all (except race, creed, color, national origin, family, running a daycare center and a few other protected reasons)... and there's not a whole lot you can do about it. Even for a lease he can trump up a reason. Your friend would be wise to have a meeting of the minds with the landlord about how he'd like to pay. Business is done by mutual consent, not non-consensual legal tricks. I agree, I wouldn't do ACH either. One problem with ACH (or credit) is the landlord can charge anything he pleases, and that's when they start sneaking in devious surcharges for things. Once he's pulled the money out, you're really at a disadvantage to argue, since he already has the money. And it's really difficult to do a chargeback on part of a payment, so you end up having to chargeback the entire rent check, and now he can evict you.",
"title": ""
},
{
"docid": "f08e59c70e252ece82e7b7443c15b16b",
"text": "\"I used to be the sort of person who would tell you that I've left money for you somewhere and in fact not have done so, and I also used to be the last person you'd expect to do something like that. I've not done this exact thing but I've done similar. Not gonna go into detail but at that time I was in a state of poverty, barely able to buy food and drink, and the money I saved by \"\"conning people\"\" in similar ways was spent on food and warmth. Personally, I think she's going through a very hard patch financially and as such has done exactly that. Me? I'm not a landlord and I'm probably far too generous. I would explain that I think she's lying but let it slide this month. Clearly a property owner is more financially capable of soaking up this expense than a tenant. On the other hand, you don't become a property owner and landlord by letting people get away without paying their rent. All in all, I would probably push for a 50/50 decision. She pays half rent this month which alleviates her finances a bit if she is genuinely in trouble and has lied, and you still get something for your efforts. If you're lucky, when you suggest it she will come clean. I would make it clear if you do or don't believe her, as she may well confess if you express your doubts. If she does, I wouldn't hold her to paying the full amount unless she offers to do so. Also, make it very obvious that this can and will not happen again. Next time, she gives you cash or uses a banking service. Goes without saying I guess. You should note that legally speaking, by accepting anything other than full payment you could be acknowledging that she did attempt to make a payment and any future legal cases will not consider that favorably for you. I would strongly recommend discussing this with a solicitor before agreeing to anything other than full payment.\"",
"title": ""
},
{
"docid": "da65d37e11ced3265657280ccf9478aa",
"text": "\"For political reasons, almost all governments (including the US) spend more money than they get from taxes etc. There are a number of things a government can do to cover the difference: Most governments opt for selling bonds. The \"\"National Debt\"\" of a country can be thought of as being the sum of all the \"\"Bonds\"\" that are still paying interest, and that the Government hasn't Redeemed. It can all go horribly wrong. If the Government gets into a situation where it cannot pay the interest, or it cannot Redeem the Bonds it has promised to, then it may have to break its promise (\"\"Default\"\" on its payments). This makes the owners of the Bonds unhappy and means potential buyers of future Bond sales are less likely to want to buy the Governments new Bonds - effectively meaning the Government has to promise to pay more interest in the future. Recent examples of this include Argentina; and may include Greece soon. The US is in the fortunate position that not many people believe it will Default. Therefore the new Bonds it sells (which it does on a regular basis) are still in demand, even though its interest payments, and promises to Redeem Bonds are huge.\"",
"title": ""
}
] |
fiqa
|
8f3cd5e541542469e7d4feeda4744f73
|
Learning investment--books to read? Fundamental/Value/Motley Fool
|
[
{
"docid": "54ce4f503afc151425f30f55a31e5e08",
"text": "You are smart to read books to better inform yourself of the investment process. I recommend reading some of the passive investment classics before focusing on active investment books: If you still feel like you can generate after-tax / after-expenses alpha (returns in excess of the market returns), take a shot at some active investing. If you actively invest, I recommend the Core & Satellite approach: invest most of your money in a well diversified basket of stocks via index funds and actively manage a small portion of your account. Carefully track the expenses and returns of the active portion of your account and see if you are one of the lucky few that can generate excess returns. To truly understand a text like The Intelligent Investor, you need to understand finance and accounting. For example, the price to earnings ratio is the equity value of an enterprise (total shares outstanding times price per share) divided by the earnings of the business. At a high level, earnings are just revenue, less COGS, less operating expenses, less taxes and interest. Earnings depend on a company's revenue recognition, inventory accounting methods (FIFO, LIFO), purchase price allocations from acquisitions, etc. If you don't have a business degree / business background, I don't think books are going to provide you with the requisite knowledge (unless you have the discipline to read textbooks). I learned these concepts by completing the Chartered Financial Analyst program.",
"title": ""
}
] |
[
{
"docid": "c2ef4b2ccfc7d4cf242313750d63b89c",
"text": "I learned most of this stuff from 3 textbooks in school probably totaling $900 between the 3. I imagine you don't want to spend the cash on that. I would suggest finding a source online. A lot of the surface level stuff you are looking for can be found online on websites like Investopedia. They are a great resource and are free usually.",
"title": ""
},
{
"docid": "5133e8a0da48d7a0a7bccf8988781a6a",
"text": "Well, that is why I am asking questions, and seeing if there is any catch. I want to read up before I actually trade. Before I trades stocks I read for like 2 years, learning as much as I could. I am not about to jump in, but it is something I would like to trade eventually. I know I need to do my due diligence on it. The reason I came here was to get information on the topic before I decided on anything, including books and websites.",
"title": ""
},
{
"docid": "1186534fe3cabcce55f68329a7b594c2",
"text": "I recall the name Martin Pring. As my fundamental analysis book from grad school was the work of Graham and Dodd titled Security Analysis, Pring was the author of the books I read on technical analysis. If you've not read his work, your education has a ways to go before you hit the tools.",
"title": ""
},
{
"docid": "2a8369588b9b80b75f59f546e868ce3c",
"text": "Don't be ridiculous. You are competing with the best graduates out of the harvards in the world and you think reading a couple self help financial books will put you on level playing field? Don't waste your time with bcg or McKinsey.",
"title": ""
},
{
"docid": "a930633f9779b2b637ac4e96d4b0fa93",
"text": "\"What part of finance does he want to get into? Investments, Equities and trading, derivatives, finance as a whole, corporate finance? Most academic textbooks are ridiculously priced so if he is looking to learn technical skills he might have to look at splashing out or looking elsewhere... Fundamentals of Corporate Finance 7th is a good one. Covers a lot of the core parts of finance which then extend to all the other areas of finance, starting at the basics of Time Value of Money (though it does gloss over some of the more complex parts). However, it is pretty expensive. This is an academic textbook. On the non-technical side, there are a number of books with which he could get started. Benjamin Graham's \"\"The Intelligent Investor\"\" is a popular and affordable one, but it won't teach much about the technical side of finance.\"",
"title": ""
},
{
"docid": "ed94c996ea2eda52c332ab82b4541cd4",
"text": "I really like Value Investing by Bruce Greenwald. It's not a textbook so you can probably pick it up for about $20. While it is dense, I think with some patience you might be able to understand it at the undergrad level. The process outlined in the VI book is very different from the conventional corp finance way of valuing a company. A typical corp finance model would probably have you model cash flows 5 or 10 years out and then assume some sort of terminal growth. The VI book argues that it's nearly impossible to predict things that far out accurately so build your valuation on what we know. Start with the balance sheet. Then look at this year's earnings. Is that sustainable? This is a simplification of course but I describe it only so you can get the idea. I think it's definitely a worthwhile read.",
"title": ""
},
{
"docid": "66b416b5a7b2262ada678903c3bbc1af",
"text": "First The Intelligent Investor and then the 1962 edition Security Analysis - which is out of print, you can get it on Amazon.com used or ebay. Then you can read the edition backward but the 1962 edition is the best - IMHO. And don't forget The Rediscovered Benjamin Graham and Benjamin Graham on Value Investing by Jane Lowe",
"title": ""
},
{
"docid": "7739215dc5ad176dd502605902b72e7a",
"text": "As a follow-up, I ended up buying: * Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity (Pignataro, Paul; Hardcover) * Mergers, Acquisitions, Divestitures, and Other Restructurings, + Website (Pignataro, Paul; Hardcover) * The Essential CFO: A Corporate Finance Playbook (Nolop, Bruce P.; Paperback)",
"title": ""
},
{
"docid": "707b61081a6c7cf8ec495fe81bd48389",
"text": "Reading financial statements is important, in the sense that it gives you a picture of whether revenues and profits are growing or shrinking, and what management thinks the future will look like. The challenge is, there are firms that make computers read filings for them and inform their trading strategy. If the computer thinks the stock price is below the growth model, it's likely to bid the stock up. And since it's automated it's moving it faster than you can open your web browser. Does this mean you shouldn't read them? In a sense, no. The only sensible trading strategy is to assume you hold things for as long as their fundamentals exceed market value. Financial statements are where you find those fundamentals. So you should read them. But your question is, is it worth it for investors? My answer is no; the market generally factors information in quickly and efficiently. You're better off sticking to passive mutual funds than trying to trade. The better reason to learn to read these filings is to get a better sense of your employer, potential employers, competitors and even suppliers. Knowing what your margins are, what your suppliers margins and acquisitions are, and what they're planning can inform your own decision making.",
"title": ""
},
{
"docid": "80d022fd1fffce9b8a0474924205f9a7",
"text": "\"Thanks! I came across many books on credit risk in my google searches - what I'm really looking for is which one is the \"\"industry standard\"\" reading (does that make sense?). For example, in derivatives, everybody recommends John C. Hull's Options... book. Why of all the CRM books, do you recommend those three in particular?\"",
"title": ""
},
{
"docid": "808551695901e548c97822ec9534711a",
"text": "\"Wow, I cannot believe this is a question. Of course reading the 10Ks and 10Qs from the SEC are incredibly beneficial. Especially if you are a follower of the investing gurus such as Warren Buffett, Peter Lynch, Shelby Davis. Personally I only read the 10K's I copy the pertinent numbers over to my spreadsheets so I can compare multiple companies that I am invested in. I'm sure there are easier ways to obtain the data. I'm a particular user of the discounted free cash flow methodology and buying/selling in thirds. I feel like management that says what they are going to do and does it (over a period of years) is something that cannot be underestimated in investing. yes, there are slipups, but those tend to be well documented in the 10Qs. I totally disagree in the efficient market stuff. I tend to love using methodologies like Hewitt Heisermans \"\" It's Earnings that Count\"\" you cannot do his power-staircase without digging into the 10Qs. by using his methodology I have several 5 baggers over the last 5 years and I'm confident that I'll have more. I think it is an interesting factoid as well that the books most recommended for investing in stocks on Amazon all advocate reading and getting information from 10Ks. The other book to read is Peter Lynch's one-up-wall-street. The fact is money manager's hands are tied when it comes to investing, especially in small companies and learning over the last 6 years how to invest on my own has given me that much more of my investing money back rather than paying it to some money manager doing more trades than they should to get commision fees.\"",
"title": ""
},
{
"docid": "5ac2024a51ee08822de105835d47809c",
"text": "\"For learning about finances my main two financial resources are this site, and the Motley Fool. My secondary sources are keeping up with columns by my favourite economic journalists - in the press in the US, Australia, England, and India. Regarding your comment about feeling green on the basics despite the reading - you're not alone. I've been interested in financials for better than 10 years, but there are a lot of questions on this site where I say to myself, \"\"I've no idea of what the answer could be, what are our resident experts saying?\"\" Having said that, there are some topics where I feel as though I can weigh in - and they tend to be where I have a little book knowledge and a lot of personal experience.\"",
"title": ""
},
{
"docid": "77c8e1d09e612404240faca6cb5bba6e",
"text": "In the intro to the Big Short, the author talks about how he wrote liars poter to steer people away from wall street, but in the end it became a manual for how to work there. I am not trying to steer you away, or towards anything except the facts. If you want to do well in something, the best idea is to understand it; warts and all.",
"title": ""
},
{
"docid": "3f4d2782016a99449f0364ecead401b2",
"text": "https://www.google.ca/amp/s/amp.businessinsider.com/most-important-finance-books-2017-1 Bloomberg, finacial times, chat with traders, calculated risk, reuters, wsj, cnbc(sucks), bnn (if canadian) Audio books on youtube helped me read a lot of finance books in a short amount of time, listen while working out. One thing that helped me stand out at my student terms (4th year here) was learning outside of the classroom and joining an investment club. Learning programming can help if thats a strength, but its really not needed and it can waste time if yoi wont reach a point to build tools. Other than that at 18 you have more direction than i did, good luck!",
"title": ""
},
{
"docid": "8e0cc6474e82e1d2d036cd295fc54b37",
"text": "\"You're right, the asset allocation is one fundamental thing you want to get right in your portfolio. I agree 110%. If you really want to understand asset allocation, I suggest any and all of the following three books, all by the same author, William J. Bernstein. They are excellent – and yes I've read each. From a theory perspective, and being about asset allocation specifically, the Intelligent Asset Allocator is a good choice. Whereas, the next two books are more accessible and more complete, covering topics including investor psychology, history, financial products you can use to implement a strategy, etc. Got the time? Read them all. I finished reading his latest book, The Investor's Manifesto, two weeks ago. Here are some choice quotes from Chapter 3, \"\"The Nature of the Portfolio\"\", that address some of the points you've asked about. All emphasis below is mine. Page 74: The good news is [the asset allocation process] is not really that hard: The investor only makes two important decisions: Page 76: Rather, younger investors should own a higher portion of stocks because they have the ability to apply their regular savings to the markets at depressed prices. More precisely, young investors possess more \"\"human capital\"\" than financial capital; that is, their total future earnings dwarf their savings and investments. From a financial perspective, human capital looks like a bond whose coupons escalate with inflation. Page 78: The most important asset allocation decision is the overall stock/bind mix; start with age = bond allocation rule of thumb. [i.e. because the younger you are, you already have bond-like income from anticipated employment earnings; the older you get, the less bond-like income you have in your future, so buy more bonds in your portfolio.] He also mentions adjusting that with respect to one's risk tolerance. If you can't take the ups-and-downs of the market, adjust the stock portion down (up to 20% less); if you can stomach the risk without a problem, adjust the stock portion up (up to 20% more). Page 86: [in reference to a specific example where two assets that zig and zag are purchased in a 50/50 split and adjusted back to targets] This process, called \"\"rebalancing,\"\" provides the investor with an automatic buy-low/sell-high bias that over the long run usually – but not always – improves returns. Page 87: The essence of portfolio construction is the combination of asset classes that move in different directions at least some of the time. Finally, this gem on pages 88 and 89: Is there a way of scientifically picking the very best future allocation, which offers the maximum return for the minimum risk? No, but people still try. [... continues with description of Markowitz's \"\"mean-variance analysis\"\" technique...] It took investment professionals quite a while to realize that limitation of mean-variance analysis, and other \"\"black box\"\" techniques for allocating assets. I could go on quoting relevant pieces ... he even goes into much detail on constructing an asset allocation suitable for a large portfolio containing a variety of different stock asset classes, but I suggest you read the book :-)\"",
"title": ""
}
] |
fiqa
|
13ed7e77c286c150c5bc04fd35a2c9d5
|
Creating a personal company
|
[
{
"docid": "2412c5cd1130f007f6f068e6b280e2b3",
"text": "\"You're confusing so many things at once here...... First thing first: we cannot suggest you what to do business-wise since we have no idea about your business. How on Earth can anyone know if you should sell the software to someone or try to distribute to customers yourself? How would we know if you should hire employees or not? If you say you don't need employees - why would you consider hiring them? If you say you want to sell several copies and have your own customers - why would you ask if you should sell your code to someone else? Doesn't make sense. Now to some more specific issues: I heard sole proprietary companies doesn't earn more than 250k and it's better to switch to corporation or LLC etc. because of benefits. I heard it was snowing today in Honolulu. So you heard things. It doesn't make them true, or relevant to you. There's no earning limit above which you should incorporate. You can be sole proprietor and make millions, and you can incorporate for a $10K/year revenue business. Sole proprietorship, incorporation (can be C-Corp or S-Corp), or LLC - these are four different types of legal entity to conduct business. Each has its own set of benefits and drawbacks, and you must understand which one suits you in your particular situation. For that you should talk to a lawyer who could help you understand what liability protection you might need, and to a tax adviser (EA/CPA licensed in your state) who can help you understand the tax-related costs and benefits of each choice. On the other hand I heard that if I create LLC company, in case of failure, they can get EVERYTHING from me, what's this all about? No. This is not true. Who are \"\"they\"\", how do you define \"\"failure\"\", and why would they get anything from you at all? Even without knowing all that, your understanding is wrong, because the \"\"LL\"\" in LLC stands for LIMITED liability. The whole point of forming LLC or Corporation is to limit your own personal liability. But mere incorporation or forming LLC doesn't necessarily mean your liability is limited. Your State law defines what you must do for that limited liability protection, and that includes proper ways to run your business. Again - talk to your lawyer and your tax adviser about what it means to you. I'm totally unfamiliar with everything related to taxes/companies/LLC/corporation etc Familiarize yourself. No-one is going to do it for you. Start reading, ask specific questions on specific issues, and get a proper legal and tax advice from licensed professionals.\"",
"title": ""
}
] |
[
{
"docid": "052392f5d66b263d95bf4d5e2838e319",
"text": "\"Equity does not represent production divisions in a company (i.e. chocolate, strawberry, and vanilla does not make sense). In Sole proprietorship, equity represents 1 owner. In Partnership, equity has at least two sub-accounts, namely Partner 1 and Partner 2. In Corporations, equity may have Common Stockholders and Preferred Stockholders, or even different class of shares for insiders and angel investors. As you can see, equity represents who owns the company. It is not what the company does or manufactures. First and foremost, define the boundary of the firm. Are your books titled \"\"The books of the family of Doe\"\", \"\"The books of Mr & Mrs Doe\"\", or \"\"The books of Mr & Mrs Doe & Sons\"\". Ask yourself, who \"\"owns\"\" this family. If you believe that a marriage is perpetual until further notice then it does not make any sense to constantly calculate which parent owns the family more. In partnership, firm profits are attributed to partner's accounts using previously agreed ratio. For example, (60%/40% because Partner 1 is more hard working and valuable to the firm. Does your child own this family? Does he/she have any rights to use the assets, to earn income from the assets, to transfer the assets to others, or to enforce private property rights? If they don't have a part of these rights, they are certainly NOT part of Equity. So what happens to the expenses of children if you follow the \"\"partnership\"\" model? There are two ways. The first way is to attribute the Loss to the parents/family since you do not expect the children to repay. It is an unrecoverable loss written off. The second way is to create a Debtor(Asset) account to aggregate all child expense, then create a separate book called \"\"The books Children 1\"\", and classify the expense in that separate book. I advise using \"\"The family of Doe\"\" as the firm's boundary, and having 1 Equity account to simplify everything. It is ultimately up to you to decide the boundaries.\"",
"title": ""
},
{
"docid": "6f7b701ecc8101b8fca1533da7369769",
"text": "Wow, your experience is definitely not unique. A close friend of 8 years complained about his medium sized company struggling to gain market share. The company I worked for at that time had a product that could dovetail with his product with some effort. I told him about this idea, and the ball was set rolling. I had set up a small company to act as supplier of the integration service between these two companies, with all effort on my side being done at own cost, and the continuous integration cost being carried by my company. The friend found a way to steal most of my source code, and got a developer to complete the integration system, while cancelling the contract with me on ungrounded accusations. I realised that warnings from other friends about this guy's integrity proved accurate, and I decided to cut all ties since no money had been made. If this had happened after I had quit my full-time job as was the plan and started depending on this business for income my family would have lost everything we had. OP has the core truth of it: > you may feel that your company is different from all of those other companies that have problems or interpersonal differences. Don't assume that. Trust your partners, have high standards for your performance and the performance of each individual in the group, but pay attention to protecting yourself along the way. Verbal agreements or goodwill may mean something to you but don't count on everybody else holding themselves to that standard.",
"title": ""
},
{
"docid": "395f71ebcf82988c69e077ef34bba23f",
"text": "Turning your fitness passion and experience into a business can open up a number of opportunities. Starting your own gym may seem to be overwhelming, so here is an upportunity about personal training franchise. A partnership like personal training franchise enables even low investments to open home based fitness business, be an entrepreneur and still enjoy the continuous support of a big brand. Like just you fitness franchise helps in designing, building the location, doing some heavy duty marketing and assisting in every step of the way: http://hfbatman.informe.com/profile2769.html",
"title": ""
},
{
"docid": "6491f0618e362b2216da7c27c43dc412",
"text": "\"Hello! First of all, I think it's great you're asking the community for help. Asking for help when you need it is a sign of strength and self-awareness of your own limitations (which we all have, even the smartest business people ask questions, in fact they ask the most questions). I'm wrapping up year 2 of doing what you're trying to do and am finally seeing real traction. I am a bit older than you and started out on my own 7 years after grad school, but I have learned a lot and don't mind sharing. Here's some things you might find useful. * Never work for free (working for \"\"equity\"\" or working for \"\"exposure\"\" is working for free). People who offer you this because you're just starting out are parasites looking to sell your talents but not pay for them. The only thing you can take away from attempts to do this is that your talents are in demand, which is good! * Never sell yourself short: would you rather do 10 websites for a $1000 each or do 1 website for $10000? You'll be doing a lot of projects in the middle, but one very important thing to bear in mind is that one $10000 website is a lot less work and may make you the same amount of money (or more) overall. * In the beginning, maybe you think you need to build a portfolio. But you'd be surprised how many prospects don't care what's in your portfolio and in fact never look at the portfolio, which leads me to the most important bit of advice: * Learn to sell yourself. YOU are your company's first and main product. Learn to sell yourself (as the smart kid, future Fortune 500 CEO who stays up all night getting things done, etc) * Always aim high in your proposals. You'd be surprised how many people don't negotiate at all. That being said, always put something in your proposal that is a good idea but it beyond what their asking for. If they ask you to come down in price, remove this feature and come down a little bit. * Develop an ability to read how interested a prospect is in your services before you spring the price on them. At your age, I was waiting tables. This helped me to be able to read a customer to determine which waiter they wanted me to be: the attentive one, the high class one, the friend, or the quiet servile. Consider taking on a side job to help you develop this skill. * As I said above, some prospects will sign on the line without negotiating. You might even take two proposals with you into a meeting with a prospect, one priced high and one low, and present the version that matches their interests. Go high if they need something \"\"right now\"\". * Remember you are your company's first product. This means also that your time is the company's first commodity. Be open to other things. I have a background in mathematics and am most capable as a software developer and a web developer. But I also help other companies sell and support physical products not at all related to technology. Because it's highly profitable, I do it. * When you're a one person business selling your time at the highest price is the name of the game. But growing your business will require the help of others. I found it helpful to first network with other like minded people and split project money according to skill level and time commitment on a per project basis. This will allow you to take on bigger projects. * But growing the company will eventually require you to hire (or contract) someone at a far lower pay rate than what you're bringing in. The laws of supply and demand require you to do this as a business person if you're to grow the business (so that the business has money beyond what you're being paid). This is where the extra money comes from: selling the time of others at a higher price than you're paying them. Be conscious of this. Everyone you work with is not going to be your friend. * Make your website awesome. It doesn't have to be a work of art, but let it reflect the seriousness with which you approach your customers' projects. Make sure there are no grammatical errors. Find a website of someone highly successful who's doing what you're doing and emulate it. You don't have to have a portfolio starting out. Your website is your first portfolio item, and if it's awesome, prospects will think you'll do the same for them. Good luck! I'm sure I'm not the only one here who thinks your early developed entrepreneurship is going to take you far.\"",
"title": ""
},
{
"docid": "4d7b33aeffa1e7947273e1224efc77a8",
"text": "This is a great response, thanks. I appreciate Dale Carnegie, Sun Tzu etc, but after reading them I felt they didn't offer anything really specific towards running a business. I've just ordered the personal MBA after reading a bit more on it so thanks for that too. Prince2 methodology looks pretty in depth so that's going on the the 'later' pile for now!",
"title": ""
},
{
"docid": "f62e29901397eb7bcc7105db0830ded8",
"text": "Interesting thread - I was going to go the route of writing my own reports on companies I invest in and posting them on my personal blog. A way to hone my research skills, signal to employers my research and writing ability and get feedback from people. Good idea?",
"title": ""
},
{
"docid": "cfda73ae0f9dbf89a67f975f4f6047b6",
"text": "There is no requirement to open a company. You can work as freelancer. You need to report income and file returns. If your income is more than exempt limit, pay taxes. Apply for a PAN number if you don't have one yet.",
"title": ""
},
{
"docid": "8df27d653c24a4bab5100cf505a1fb69",
"text": "I made the mistake going into business with a friend. I lost the business, a lot of money and that friend. If you do it anyway, be prepared to lose it all, or set it up as one being the other's boss.",
"title": ""
},
{
"docid": "236b1590cb77b8a79e65863d4bfee5cf",
"text": "Set up a company or partnership. Generally what you describe is a classic partnership. In the US - the partnership itself is not taxed (as opposed to a corporation), and each partner is taxed separately on the distributions. That is, the partners as a whole will be taxed on the income of one, if it is distributed through the partnership. Exactly what you want. Do consult with a tax adviser familiar with the Federal and the State laws with the specifics of setting it up and managing it, maybe you'll get a better advice from a professional (which I am not, of course).",
"title": ""
},
{
"docid": "f3153f161517c291ba3f59b50c82f271",
"text": "If you're creating an S-Corp for consulting services that you personally are going to provide, what would it give her to have 50% of the corporation when you're dead? Not to mention that you can just add it to your will that the corporation stock will go to her, and it will be much better (IMHO, talk to a professional) since she'll be getting stepped-up basis. Why aren't you talking to a professional before making decisions? It doesn't sound like a good way to conduct business.",
"title": ""
},
{
"docid": "1a1a4680db0343b6f74d4777a9110b1a",
"text": "\"In studying the great \"\"successes\"\" in business, it's clear that those who do the best have unlimited creative and business ideas, not just one idea, but many ideas all day long everyday. No matter what you decide for your current idea, document (write down) your process of each step that you took from idea to inception and track one or two key metrics alongside, so your list would look like this: 1. Socialize idea, goal revenue $0, total cost $0, time 26 hours 2. monitor money invested, costs, and hours of your time 3. Brainstorm: What's the quickest way to have one paying client 4. How will I track my customers? 5. How will I connect and communicate with my customers? 6. And on and on. From having an idea to implementation to even making money or a profit is quite simple, straightforward, and any book, mentor or online free content can show you how. What is \"\"hard\"\" is maintaining motivation, stamina, and creativity for when REAL challenges come up, because they will! Competition swoops in, in a way you that you (and the sage commenters at Reddit) couldn't have predicted, you are audited by the IRS and then owe way more in taxes than you expected from four years ago, you are sued for a small claims or worse, or you simply get bored or inspiration strikes in your heart on another great idea. Problems like this require REAL and thoughtful \"\"creativity and implementation\"\" on demand, all day, everyday. This is what starting a business is really about. Tracking your steps means that you can easily and quickly review what you've done and backtrack or try another idea instead of wallowing in mistakes, missteps, or hard problems. It's really much harder than it sounds, but once you can invent more ideas to solve a problem than there are problems, you can overcome most challenges. The framework is that, you want to start a business because it serves your customers, brings them enough value and delight to pay you, and you have a way to make a living yourself and/or sell eventually or have some \"\"exit strategy.\"\" You want an exit strategy so that your business doesn't become a poor paying \"\"job\"\" that you're a slave to. Because it does, and if it does, a job is way easier and makes you more money. Write down each step of your business building process, track your costs, revenue, and time, and have fun. Then, you have enough energy to \"\"pivot\"\" or change your ideas because you've set up a repeatable, improvable, process to run your next idea through with modifications along the way. You keep retrying your process for your ideas until your lifestyle is paid for (your salary) or something even greater monetarily.\"",
"title": ""
},
{
"docid": "692ae1c3e6eb2eca7e42bcebfcb1293a",
"text": "Mods decided to leave it here, so I'll summarize some of my answers on this question given @OnStartups. You can find them here, here and here. Your options are : You and your business are one and the same. You report your income and expenses for taxes on a Schedule C (for each sole proprietorship a separate schedule), and taxed at your personal rates. There's no liability protection or legal separation between you and your business, and you don't need to have any bureaucratic overhead of managing an entity. You can use your own bank account and have checks written to you directly. You can register for DBA if you want a store-front name to be different from your own name. Depending on State, can cost a lot or close to nothing. Provides certain liability protection (depending on State, single-member and multi-member LLC's may have different liability protections). You can chose to be taxed as either a sole-proprietor (partnership, for multi-member) or as a corporation. You have to separate your activities, have a separate bank account, and some minimal bureaucracy is required to maintain the entity. Benefits include the limited liability, relatively easy to add partners to the business or sell it as a whole, and provides for separation of your personal and business finances. Drawbacks - bureaucracy, additional fees and taxes (especially in CA), and separation of assets. Corporation is an entirely separate entity from yourself, files its own tax returns, has separate bank accounts and is run by the board of directors (which in some cases may require more than 1 person to be on the board, check your state laws on that). As an officer of the corporation you'll have to pay salary to yourself. S-Corp has the benefit of pass-through taxation, C-Corp doesn't and has double taxation. Benefits - liability protection, can sell shares to investors, legally distinct entity. Disadvantages - have to deal with payroll, additional accounting, significant bureaucracy and additional layer of taxes for C-Corp (double taxation). Selling corporate assets is always a taxable event (although in your case it is probably not of an importance). You have to talk to a lawyer in your state about the options re the liability protection and how to form the entities. The formation process is usually simple and straight forward, but the LLC/Partnership operating agreements and Corporation charters/bylaws must be drafted by a lawyer if you're not going to be the sole owner (even if you are - better get a lawyer draft something for you, its just easier to fix and change things when you're the sole owner). You have to talk to a CPA/EA in your state about the taxes and how the choice of entity affects them.",
"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": "248fc9946966154f50ac26871b0d8361",
"text": "\"Actually sounds like an interesting concept for a business, potentially! (grin) You know, depending on where you live and how big the market is, you might see if there's a local \"\"concierge\"\" service. These are companies that will act like personal shoppers/assistants for you in all kinds of ways. I can't speak to the quality of their services or the pricing they use, but it would be a great place to start. I'm sure you can find listings of them on the web.\"",
"title": ""
},
{
"docid": "cdfa745942f12fffa09d6b579f5b9403",
"text": "That's the foundation of Limited Liability. There is a corporate veil that protects your personal assets from that of your business. The corporate veil can be pierced if you do certain stuff and thus your personal assets will get effected. This allows people to start companies and innovate more and take more risks knowing that they could not be personally liable if the business folds.",
"title": ""
}
] |
fiqa
|
bb58d9e3f1394664735d7a5d3cdbb9b7
|
Question about dividends and giant companies [duplicate]
|
[
{
"docid": "0fd8ecaa4e48f0176054c42c39d7c412",
"text": "\"Dividends are a way of distributing profits from operating a business to the business owners. Why would you call it \"\"wasting money\"\" is beyond me. Decisions about dividend distribution are made by the company based on its net revenue and the needs of future capital. In some jurisdictions (the US, for example), the tax policy discourages companies from accumulating too much earnings without distributing dividends, unless they have a compelling reason to do so. Stock price is determined by the market. The price of a stock is neither expensive nor cheap on its own, you need to look at the underlying company and the share of it that the stock represents. In case of Google, according to some analysts, the price is actually quite cheap. The analyst consensus puts the target price for the next 12 months at $921 (vs. current $701).\"",
"title": ""
},
{
"docid": "d0a9a32beb28f2649cd2fb43acf5ee56",
"text": "I see a false assumption that you are making. (Almost always) When you buy stock the cash you spend does not go to the company. Instead it goes to someone else who is selling their shares. The exception to this is when you buy shares in an IPO. Those of us who have saved all our lives for retirement want income producing investments once we retire. (Hopefully) We have saved up quite a bit of money. To have us purchase their stock companies have to offer us dividends.",
"title": ""
}
] |
[
{
"docid": "af4679f4a8afd4be7e354e3d1b5d4410",
"text": "Small companies need not pay out heft dividends. It makes much more sense to invest it directly in to the company to build a stronger company and produce future results. For example just say Mike see's a company called Milk Inc. Milk inc is doing very well and for the last three year's the amount the profits are increasing by has been going up by 10% the company is still small and doesn't do dividends. Mike see's opportunity and snatches up 1000 at 2.20 , He knows this company does not pay dividends. 10 years pass and this company is absolutely booming profits are still going up the company has decided to start paying hefty dividends as it no longer needs as much money to invest in it's growth. Shares are now valued at 6.80 . Mike banks.",
"title": ""
},
{
"docid": "61a3236acf34529cae6bfa96e07ccccb",
"text": "\"As Dheer pointed out, the top ten mega-cap corporations account for a huge part (20%) of your \"\"S&P 500\"\" portfolio when weighted proportionally. This is one of the reasons why I have personally avoided the index-fund/etf craze -- I don't really need another mechanism to buy ExxonMobil, IBM and Wal-Mart on my behalf. I like the equal-weight concept -- if I'm investing in a broad sector (Large Cap companies), I want diversification across the entire sector and avoid concentration. The downside to this approach is that there will be more portfolio turnover (and expense), since you're holding more shares of the lower tranches of the index where companies are more apt to churn. (ie. #500 on the index gets replaced by an up and comer). So you're likely to have a higher expense ratio, which matters to many folks.\"",
"title": ""
},
{
"docid": "95016e01b71321938f2cd9859aed3f34",
"text": "If you have a public company and shareholder A owns 25% and shareholder B owns 25%, and lets say the remaining 50% is owned by various funds/small investors. Say profits are 100mil, and a dividend is payed. Say 50 mil worth is payed out as dividend and 30 mil is kept as retained earnings for future investment. Can the remaining 20 mil be distributed to shareholders A and B, so that they both get 10mil each? Can certain shareholders be favored and get a bigger cut of profits than the dividends pay out is my question basically.",
"title": ""
},
{
"docid": "972477431e58893d9d8e5cb7f9dea618",
"text": "\"Most companies are taken over. One can reasonably guess that company X will be taken over for a price P, at some future point in time. Then the company has a value today, that is less than price P, by a large enough margin so that the investor will likely \"\"make out\"\" when the company finally is taken over at some unknown point in time. The exception is a company like Microsoft or Apple that basically grow too large to be taken over. But then they eventually start paying dividends when they become \"\"mature.\"\" Again, the trick, during the non-dividend paying period (e.g. ten or fifteen years ago) is to guess what dividends will be paid in some future time, and price the stock low enough today so that it will be worthwhile for the buyer.\"",
"title": ""
},
{
"docid": "170633134dd6ddb1de23ee94c3c3f679",
"text": "Best as i can tell, the simple answer is: the smartest approach to investing for dividends is to pick a company that is, has, and will continue to make a solid profits. there are lots of them out there. specifically, companies with no debt, a history of long-term and steady growth and a stable market share will, almost always recoup any drop in stock valuation due to a dividend payout...and usually in short order. this is why dividends were created...as a mechanism for distributing profits back to investor without diminishing thier stake in the company. the trick then, is to find such companies with the best ratio between stock price and dividend payout. and again, there are a lot of good options out there. All the trepidation is justified however, as many unscrupulous companies will try to pull investors in with high dividends as a means to simply generate capital. these companies have few of the quality attributes mentioned above. instead, High debt, fluctuating or negative profits, minimal market share or diminishing growth present a very risky long term play and will be avoided by this conservative investor.",
"title": ""
},
{
"docid": "6b197fde811ce81c3d417db1ae47b52d",
"text": "Depends on if the stock pays a dividend or not. Some companies in their early years may choose to not pay dividends. Your calculations are off as the dividend stated is annual that you'd have to divide by 4 to get what the quarterly amount would be and there can be variances as Ellison's compensation package may well include options so that the number of shares he owns could fluctuate over the course of a year.",
"title": ""
},
{
"docid": "412af011c70132f78f47a1037f0fc2cd",
"text": "Nominal. What you say is true, but I'm guessing it would be too complicated to modelate. Plus, a shareholder of a very large company would not necessarily experience said loss if he/she sells the stock in small chunks at a time.",
"title": ""
},
{
"docid": "ac97477afe8baf421d2bcf1b23bf05dd",
"text": "You have a misunderstanding about what it is. Absent differential tax treatment buybacks and dividens are the exact same. period. You're saying it yourself, not buying back stock so they can pay out dividends. What the impetus might be is irrelevant. Dividends are a use of funds competing equally with investments or higher salary.",
"title": ""
},
{
"docid": "d2c022b1449e01b86edb8c305f5f463c",
"text": "\"Thanks for your reply. I think a lot of people are confused when talking about ownership, and I think it is a definitional issue. When a company issues stock (the first time or anytime), what they are doing is \"\"selling\"\" the right to a percentage of the dividend. They are not actually selling parts of the company to you. Everyone thinks this way though, and that has to do with the Chicago School economists who perpetuated their ideas of ownership which is what everyone know thinks is the case. This way of thinking about corporations and ownership is just wrong (not ethically), just erroneous. As I stated before, Lynn Stout of Cornell University explains this really well. I would encourage anyone to read more about it.\"",
"title": ""
},
{
"docid": "a855468c03562cdb97effe4bd913e03d",
"text": "Are we still discussing Amazon? Their net income has hovered around $1 billion per year for the past three years. If that's profit-free, sign me up. They do have very thin margins, but it's clearly by design. And you really do have to take into account the massive volume of sales they do. Still, like you, I'm curious to see if they'll ever turn into a mature, dividend-paying company. For example, it's been interesting to see Microsoft hike their dividend to a fairly competitive level while Yahoo resists being seen as anything other than a growth story.",
"title": ""
},
{
"docid": "9ff4b83c8e5627b710d84964fc9b0a85",
"text": "\"This answer will expand a bit on the theory. :) A company, as an entity, represents a pile of value. Some of that is business value (the revenue stream from their products) and some of that is assets (real estate, manufacturing equipment, a patent portfolio, etc). One of those assets is cash. If you own a share in the company, you own a share of all those assets, including the cash. In a theoretical sense, it doesn't really matter whether the company holds the cash instead of you. If the company adds an extra $1 billion to its assets, then people who buy and sell the company will think \"\"hey, there's an extra $1 billion of cash in that company; I should be willing to pay $1 billion / shares outstanding more per share to own it than I would otherwise.\"\" Granted, you may ultimately want to turn your ownership into cash, but you can do that by selling your shares to someone else. From a practical standpoint, though, the company doesn't benefit from holding that cash for a long time. Cash doesn't do much except sit in bank accounts and earn pathetically small amounts of interest, and if you wanted pathetic amounts of interests from your cash you wouldn't be owning shares in a company, you'd have it in a bank account yourself. Really, the company should do something with their cash. Usually that means investing it in their own business, to grow and expand that business, or to enhance profitability. Sometimes they may also purchase other companies, if they think they can turn a profit from the purchase. Sometimes there aren't a lot of good options for what to do with that money. In that case, the company should say, \"\"I can't effectively use this money in a way which will grow my business. You should go and invest it yourself, in whatever sort of business you think makes sense.\"\" That's when they pay a dividend. You'll see that a lot of the really big global companies are the ones paying dividends - places like Coca-Cola or Exxon-Mobil or what-have-you. They just can't put all their cash to good use, even after their growth plans. Many people who get dividends will invest them in the stock market again - possibly purchasing shares of the same company from someone else, or possibly purchasing shares of another company. It doesn't usually make a lot of sense for the company to invest in the stock market themselves, though. Investment expertise isn't really something most companies are known for, and because a company has multiple owners they may have differing investment needs and risk tolerance. For instance, if I had a bunch of money from the stock market I'd put it in some sort of growth stock because I'm twenty-something with a lot of savings and years to go before retirement. If I were close to retirement, though, I would want it in a more stable stock, or even in bonds. If I were retired I might even spend it directly. So the company should let all its owners choose, unless they have a good business reason not to. Sometimes companies will do share buy-backs instead of dividends, which pays money to people selling the company stock. The remaining owners benefit by reducing the number of shares outstanding, so they own more of what's left. They should only do this if they think the stock is at a fair price, or below a fair price, for the company: otherwise the remaining owners are essentially giving away cash. (This actually happens distressingly often.) On the other hand, if the company's stock is depressed but it subsequently does better than the rest of the market, then it is a very good investment. The one nice thing about share buy-backs in general is that they don't have any immediate tax implications for the company's owners: they simply own a stock which is now more valuable, and can sell it (and pay taxes on that sale) whenever they choose.\"",
"title": ""
},
{
"docid": "0ae7681cfe1d319898337f727b749fc4",
"text": "Imagine you have a bank account with $100 in it. You are thinking about selling this bank account, so ask for some bids on what it's worth. You get quotes of around $100. You decide to sell it, but before you do, you take $50 out of it to have in cash. Would you expect the market to still pay $100 for the account? The dividend is effectively the cash being withdrawn. The stock had on account a large amount of cash (which was factored into it's share price), it moved that cash out of it's account (to its shareholders), and as a result the stock instantly becomes priced lower as this cash is no longer part of it, just as it is in the bank account example.",
"title": ""
},
{
"docid": "7bd14724d83214a490d517282be12cd3",
"text": "I'm fairly convinced there is no difference whatsoever between dividend payment and capital appreciation. It only makes financial sense for the stock price to be decreased by the dividend payment so over the course of any specified time interval, without the dividend the stock price would have been that much higher were the dividends not paid. Total return is equal. I think this is like so many things in finance that seem different but actually aren't. If a stock does not pay a dividend, you can synthetically create a dividend by periodically selling shares. Doing this would incur periodic trade commissions, however. That does seem like a loss to the investor. For this reason, I do see some real benefit to a dividend. I'd rather get a check in the mail than I would have to pay a trade commission, which would offset a percentage of the dividend. Does anybody know if there are other hidden fees associated with dividend payments that might offset the trade commissions? One thought I had was fees to the company to establish and maintain a dividend-payment program. Are there significant administrative fees, banking fees, etc. to the company that materially decrease its value? Even if this were the case, I don't know how I'd detect or measure it because there's such a loose association between many corporate financials (e.g. cash on hand) and stock price.",
"title": ""
},
{
"docid": "07bfc4bf7cdff666fb929873475d0159",
"text": "Large companies whose shares I was looking at had dividends of the order of ~1-2%, such as 0.65%, or 1.2% or some such. My savings account provides me with an annual return of 4% as interest. Firstly inflation, interest increases the numeric value of your bank balance but inflation reduces what that means in real terms. From a quick google it looks like inflation in india is currently arround 6% so your savings account is losing 2% in real terms. On the other hand you would expect a stable company to maintain a similar value in real terms. So the dividend can be seen as real terms income. Secondly investors generally hope that their companies will not merely be stable but grow in value over time. Whether that hope is rational is another question. Why not just invest in options instead for higher potential profits? It's possible to make a lot of money this way. It's also possible to lose a lot of money this way. If your knowlage of money is so poor you don't even understand why people buy stocks there is no way you should be going near the more complicated financial products.",
"title": ""
},
{
"docid": "a732d29b5bdf5178f0c483a2cbbe10aa",
"text": "Gotcha. So they essentially are just your normal dude that puts money in the stock market, just bigger money. For example, I may buy a few stocks in Apple in the hopes that I can exit at a higher price and have higher dividends. Those big investors are doing the same thing for the 2 benefits I said earlier, but they have more money to invest. Or do they get other benefits that us average stock holders dont get? Thanks for the first reply.",
"title": ""
}
] |
fiqa
|
2601205e830a2a1f70f1325bac738058
|
How can I find a lost 401K from a past employer?
|
[
{
"docid": "4217f4b58b17bf01e6deb8e2a43bf894",
"text": "The Employee Benefits Security Administration within the US Department of Labor is tasked with keeping track of pension and 401K programs. The even have a website to search for abandoned plans: it helps participants and others find out whether a particular plan is in the process of being, or has been, terminated and the name of the Qualified Termination Administrator (QTA) responsible for the termination. The Employee Benefits Security Administration discuss all types of details regarding retirement programs. This document What You Should Know About Your Retirement Plan has a lot of details including this: If your former employer has gone out of business, arrangements should have been made so a plan official remains responsible for the payment of benefits and other plan business. If you are entitled to benefits and are unable to contact the plan administrator, contact EBSA electronically at askebsa.dol.gov or by calling toll free at 1-866-444-3272. There are also EBSA offices spread thought the United States",
"title": ""
}
] |
[
{
"docid": "7ce5540b10329f97641f466f7f7df5df",
"text": "If they leave the extra funds in the account the IRS will consider it as employer match. They weren't funds from your paycheck, they were from the employers profits. Because they don't have a formal matching program the extra funds will still keep then under the max match. There is one other explanation that needs to be considered. If the last paycheck from 2011 was near the end of the year (the last Friday of 2011 was December 30th) the 401K funds from that final paycheck may not have been deposited into your 401K until early January 2012. If you count contributions when looking at your 401K statement it will look like one two many for 2012; but the IRS only cares when it was deducted from your paycheck, not when it was deposited into your account. The Department of Labor only requires they be deposited by the 15th of the following month.",
"title": ""
},
{
"docid": "2cb94464a77b00425f9ce06a9382f6db",
"text": "Reinvestment creates a nightmare when it comes time to do taxes, sadly. Tons of annoying little transactions that happened automatically... Here's one article trying to answer your question: http://www.smartmoney.com/personal-finance/taxes/figuring-out-your-cost-basis-when-youve-lost-the-statements-9529/ You could also try this thing: http://www.gainskeeper.com/us/BasisProIndividual.aspx But I couldn't tell you if it would help. If it makes you feel better, brokerages are now required by the IRS to track your basis for you, so for new transactions and assets you shouldn't end up in this situation. Doesn't help with the old stuff ;-)",
"title": ""
},
{
"docid": "9b0c3b43773c3ba34fd6b29c828b25c1",
"text": "\"The IRS has a FAQ page about Hardship Distributions from a 401(k). The IRS defines a hardship in this case as \"\"an immediate and heavy financial need of the employee and the amount must be necessary to satisfy the financial need.\"\" Included in the list of examples is \"\"certain expenses for the repair of damage to the employee's principal residence.\"\" However, whether your former employer allows this particular reason is up to their plan documents. It sounds like, from what you described on the website, that your plan does include this reason as a possibility for you. Next, you need to decide if the projects you have in mind qualify as \"\"repair of damage.\"\" This uses the same rules as the deductible casualty rules found in IRS Publication 547, which defines a casualty this way: A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. A sudden event is one that is swift, not gradual or progressive. An unexpected event is one that is ordinarily unanticipated and unintended. An unusual event is one that is not a day-to-day occurrence and that is not typical of the activity in which you were engaged. Examples are given in Pub 547. If the projects you have in mind are necessary due to an event (like a flood or a fire), it might be allowed. But most \"\"home improvement\"\" projects would not qualify for this. If you'd like a way to simplify your financial profile, an option for you, since you no longer work at this employer, is to roll over this 401(k) into a Rollover (traditional) IRA. This way, you won't have to deal with your former employer anymore. You could pick an IRA custodian that you already have another account with, if you like, and reduce the number of statements that you get. But the IRA will not let you take money out without penalty for home improvement projects, either.\"",
"title": ""
},
{
"docid": "65005c7763f5008da5d62afca405c5cc",
"text": "Yes, there are checks and balances. Employers can be, and have been, prosecuted for failing to pay super before the statutory timeline, which is three months from the pay date. However, it is still in your interests to check for yourself. The most common point for missing super to be discovered is when the company goes broke, at which point it's too late for you. What you should do is Check on your payslips that the right amount is allocated to super. It should be 9% of gross, plus any salary sacrifice or additional component. Check your super fund's half-yearly statements line up the deductions given on your payslip. Consider getting online access to your super account so you can check more quickly. If something is missing, call your super fund and/or payroll office. Resources:",
"title": ""
},
{
"docid": "da3bb20b815bd711a1d70bb82fd9fd3f",
"text": "In general you cannot. Once the security is no longer listed on the exchange - it doesn't have to provide information to the exchange and regulators (unless it wants to be re-listed). That's one of the reasons companies go private - to keep their (financial and other) information private. If it was listed in 1999, and is no longer listed now - you can dig through SEC archives for the information. You can try and reach out to the company's investors' relations contact and see if they can help you with the specific information you're looking for.",
"title": ""
},
{
"docid": "559e3242a47e027a1305f24643f9a308",
"text": "No, unvested money returns to the employer, its not yours. They should send you W2 which will only show the actual (vested) monies you got.",
"title": ""
},
{
"docid": "801ea4db2047b367902c7cdc3ab51f4b",
"text": "You are already doing everything you can. If your employer does not have a 401(k) you are limited to investing in a Roth or a traditional IRA (Roth is post tax money, traditional IRA gives you a deduction so it is essentially pre tax money). The contribution limits are the same for both and contributing to either adds to the limit (so you can't duplicate). CNN wrote an article on some other ways to save: One thing you may want to bring up with your employer is that they could set up a SEP-IRA. This allows them to set a % (up to 25%) that they contribute pre-tax to an IRA for everyone at the company that has worked there at least 3 years. If you are at a small company, maybe everyone with that kind of seniority would take an equivalent pay cut to get the automatic retirement contribution? (Note that a SEP-IRA has to apply to everyone equally percentage wise that has worked there for 3 years, and the employer makes the contribution, not you).",
"title": ""
},
{
"docid": "84a5feca8c5035f6b1cf0e7cf1f8e6ee",
"text": "A company as large as Home Depot will have a fairly robust Human Resources department and would probably be able to steer you in the right direction: odds are they know the name of the brokerage and other particulars. I did some googling around, their # is (1-866-698-4347). Different states have different rules about how long an institution can have assets abandoned before turning them over to the state. California, as an example, has an abandoned property search site that you can use. That being said, I had some penny stocks sitting in a brokerage account I never touched for about 20 years and when I finally logged back in there they were, still sitting there.",
"title": ""
},
{
"docid": "35d7b7bfa64a908279a2976bd2f45da3",
"text": "The old school way would have been to identify some wealthy zip codes and cold call like a mofo. At present I would prefer to find some retiring advisor and buy his book (that may mean leaving your current firm).",
"title": ""
},
{
"docid": "180e87b8bc2cab1c42dd460fd98a8b67",
"text": "\"I'm not sure what you mean by \"\"receive retirement benefits\"\". If the company had a 401k, that probably is the retirement plan. Few companies have both a 401k and an old-style pension plan, you typically have one or the other. So if your 401k was rolled over into some other account, you have already received your retirement benefits. If you mean that the 401k was rolled over into an IRA and you are asking if you can now start withdrawing from the IRA, see Excel Strategies answer. Short answer: Yes you can, but there's a 10% penalty unless you meet one of the exceptions.\"",
"title": ""
},
{
"docid": "5571f9036e7c42555e0de2cabec4d54d",
"text": "I work for a hedge fund, not wealth management, but I assume that client information is treated similarly. Misplacing it is a huge deal. The company will probably need to formally investigate it and inform all the clients involved. Even if they can prove that no one looked at the information it's going to make clients question the company's procedures. I could see it being a firing offense,depending on how many clients were affected and the nature of the data. Sorry if that's not what you wanted to hear.",
"title": ""
},
{
"docid": "f7ca42754f8dbcf566f746c495e6325d",
"text": "Take The 20k and transfer it to the new employer 401k. You then can take a loan and accomplish the same thing. By the time you pay the tax and 10% penalty, that withdrawal will be worth just over half. The same half you can borrow out, pay yourself the interest and not lose out on 50 years of growth.",
"title": ""
},
{
"docid": "d2c894ede59d3edcf779c575c9a3ed0a",
"text": "Most companies put the company match in your account each paycheck, but your are not generally vested for the match. If you leave before the specified time period then they pull back part of the matching funds. I knew somebody who did something similar back in the 1980's with their 401K. They put in 8% of their paycheck after taxes; a 100% match was deposited; then they pulled out the employees contribution every quarter. They did this for the 10 years I knew them. It avoided any tax implications, and they were still saving 8% of their pay for retirement.",
"title": ""
},
{
"docid": "d4dfcb04dd8e29c61194e90ca80b4cde",
"text": "\"(Insert usual disclaimer that I'm just a random guy on the Internet, not any kind of certified tax professional.) But once I withdraw the money, how is that money taxable? If I'm understanding your situation correctly, you want to look at the instructions for form 8889, under Excess Employer Contributions. It simply says, \"\"If the excess was not included in income on Form W-2, you must report it as 'Other income' on your tax return.\"\" There doesn't look to be any particular wording beyond that, so I'd just put it on Form 1040 Line 21 Other Income, and label the line really specifically like \"\"Excess Employer Contributions distributed from HSA\"\". Also there is no mention of whether any FICA taxes (social security and Medicare) apply to these amounts. You say that this was entirely contributed by the employer. But even for cases where one contributes directly through payroll with an optional pre-tax deduction, this is usually implemented as a \"\"salary reduction agreement\"\" where the company is actually paying less money in salary (and thus less showing up on the W-2) and just contributing to the HSA account instead. It's listed on the 8889 as an \"\"Employer Contribution\"\", even if in fact one sees it as a deduction on one's pay stub. In either case, since the company didn't pay you the money as salary (and merely contributed to the HSA instead), I wouldn't expect any FICA taxes to be owed on it. The fact that the IRS wants it listed under \"\"Other income\"\" instead of \"\"Wages\"\" also implies to me that it doesn't count as salary that needs FICA taxes. Presumably, if people abused this in some way (like getting their employer to deliberately over-contribute each year and getting a refund in some sort of crazy scheme to try to reduce their SS taxes) the government would get rather upset and probably call it some sort of tax evasion. But for the amounts involved here, particularly as you're following the instructions listed, I just wouldn't worry about it. Assuming that I withdraw excess contribution and report everything on Form 8889 and Form 1040, is there any further action required from my previous employer? It's your HSA, so I wouldn't think so. Since the eligibility for HSAs is based on what you do, and not what they do (you could, for instance, get covered by a different HDHP and they wouldn't be notified nor really care), I don't think they have anything more to do with it. Also I am not sure how to calculate amount of interest attributable to excess contribution. I have only around $0.20 of total interest this year. The bank holding the HSA could probably help with that, as I'd expect it to be a normal part of the excess contribution withdrawal process. If not, I'd just make a reasonable effort based on the interest rate, amount involved, and number of days that the excess was in the account. Also keep in mind that in general when filing taxes, anything under $0.49 can round to $0. At some point, one can only be \"\"as honest as the law allows\"\".\"",
"title": ""
},
{
"docid": "0644bea83d844d62f2f2ef527c2c4574",
"text": "In the long run the drivers are getting pulled from the equation. I don't care how much regulatory pressure the self driving car industry faces, they'll have it figured out in 5 years. You are talking about an interest group that includes Google, Tesla, Uber, Lyft, Ford, GM and probably Apple. They are all spending billions on the technology and want a return on that investment.",
"title": ""
}
] |
fiqa
|
c3d1d4ce96cc4193d21cdeddf2de08f7
|
Is there any circumstance in which it is necessary to mark extra payments on a loan as going to “principal and not interest”?
|
[
{
"docid": "79d2ca0681ec20663320a4dee527ced1",
"text": "It could be a couple of things besides extra principal: I seem to remember hearing that some (shady?) lenders would just pocket extra payments if you didn't specify where they were headed, but I've also been told that this just isn't true.",
"title": ""
},
{
"docid": "1ad8afd66a346863ad67ec813bbba710",
"text": "The mortgage I got last year through Wells Fargo explicitly indicates in its terms that excess payment will be considered against future payments (i.e., pay $500 extra in January and you owe $500 less in February) unless indicated otherwise. It goes on to state that with electronic payments you do not get to specify where excess payment goes, so excess payment made electronically always goes toward future payments. If you want to make excess payments toward principal, you must actually send them a check and your payment stub, with the appropriate box ticked. This won't be very different for other major banks, I wouldn't imagine.",
"title": ""
},
{
"docid": "5912fe013d03f8d669c32cb45c42b042",
"text": "I had a car loan through GMAC and extra money was applied to future payments. At one point, I received a statement telling me I had 15 months until my next payment was due because I had not marked extra payments as going to principal.",
"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": "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": "6a7d38f2451ab0d1f6ad2b66b641b5c7",
"text": "The reason it's broken out is very specific: this is showing you how much interest accrued during the month. It is the only place that's shown, typically. Each month's (minimum) payment is the sum of [the interest accrued during that month] and [some principal], say M=I+P, and B is your total loan balance. That I is fixed at the amount of interest that accrued that month - you always must pay off the accrued interest. It changes each month as some of the principal is reduced; if you have a 3% daily interest rate, you owe (0.03*B*31) approximately (plus a bit as the interest on the interest accrues) each month (or *30 or *28). Since B is going down constantly as principal is paid off, I is also going down. The P is most commonly calculated based on an amortization table, such that you have a fixed payment amount each month and pay the loan off after a certain period of time. That's why P changes each month - because it's easier for people to have a constant monthly payment M, than to have a fixed P and variable I for a variable M. As such, it's important to show you the I amount, both so you can verify that the loan is being correctly charged/paid, and for your tax purposes.",
"title": ""
},
{
"docid": "6a32ab6bf72d834302a6fca7bae388b3",
"text": "\"So with any debt, be it a loan or a bond or anything else, you have two parts, the principal and the interest. The interest payment is calculated by applying the interest % to the principal. Most bonds are \"\"bullet bonds\"\" which means that the principle remains completely outstanding for the life of the bond and thus your interest payments are constant throughout the life of the bond (usually paid semi-annually). Typically part of the purpose of these is to be indefinitely refinanced, so you never really pay the principal back, though it is theoretically due at expiration. What you are thinking of when you say a loan from a bank is an amortizing loan. With these you pay an increasing amount of the principal each period calculated such that your payments are all exactly the same (including the final payment). Bonds, just like bank loans, can be bullet, partially amortizing (you pay some of the principle but still have a smaller lump sum at the end) and fully amortizing. One really common bullet structure is \"\"5 non-call 3,\"\" which means you aren't allowed to pay the principle down for the first three years even if you want to! This is to protect investors who spend time and resources investing in you!\"",
"title": ""
},
{
"docid": "fc8673c9c96f25059fcf3f3becd6bc98",
"text": "\"Depending on how you view the loan, it could either be considered an Asset or a Liability. Since you are not charging interest, it might seem more intuitive to create an \"\"Assets:Cash Loan\"\" account, and transfer money to & from it (when you receive payments) like you would with a bank account. Personally, I prefer to think of all loans as liabilities. Whether it's a debt which you owe someone, or a balance which someone else owes you, since it's an 'unsettled' amount I file it under \"\"Liabilities:Loan\"\". Either way, you record the initial balance as a debit from your bank, and then record payments as credits back to your primary account. The only way that income or expenses ever gets involved would be if you charged interest (income) or if you forgave some or all of the loan (expense) at some point in the future.\"",
"title": ""
},
{
"docid": "508ba9807775aa566286ecb749ae099a",
"text": "No offense to any bankers who are reading, but i find it remarkable that they can confuse what I'd expect to be an otherwise simple explanation. If at the end of each day the interest is added, you go to sleep with a new balance. At the moment it's added, you have no interest due, just a higher principal amount than when you went to sleep last night. When I view my loan, I know how much interest added to principal since the last payment. Any amount I pay over that has to go to principal. Forgive me, but the rest sounds like nonsense.",
"title": ""
},
{
"docid": "c8879e48fff18d0db4a657a7bbac0afe",
"text": "\"The other answers have touched on amortization, early payment, computation of interest, etc, which are all very important, but I think there's another way to understand the importance of knowing the P/I breakdown. The question mentions the loan payment as \"\"cash outflow\"\". That is true, but from an accounting perspective (disclaimer: I am not an accountant, but I know enough of the basics to be dangerous), the outflow needs to be directed to different accounts. The loan principal appears as a liability on your personal balance sheet, which you could use, for example, in determining net worth. The principal amount in your payment should be applied to reduce the liability account. The interest payment goes into the expense account. Another way to look at it is that the principal, while it does reduce your cash account, can be thought of as an internal transfer to the liability account, thus reducing the size of the liability. The interest payment cannot. Aside: From this perspective, the value of the home is an asset, and the difference between the asset account and the loan liability account is the equity in the house (as pointed out in different language by the accepted answer). Of course, precisely determining the value of an illiquid asset like a house at any given moment pretty much requires you to actually sell it, so those accounts are hard to maintain in real-time (the liability of the loan is much easier to track).\"",
"title": ""
},
{
"docid": "c00d295dd92b63c56bd599f579d7ac83",
"text": "\"So, let's take a mortgage loan that allows prepayment without penalty. Say I have a 30 year mortgage and I have paid it for 15 years. By the 16th year almost all the interest on the 30 year loan has been paid to the bank This is incorrect thinking. On a 30 year loan, at year 15 about 2/3's of the total interest to be paid has been paid, and the principal is about 1/3 lower than the original loan amount. You may want to play with some amortization calculators that are freely available to see this in action. If you were to pay off the balance, at that point, you would avoid paying the remaining 1/3 of interest. Consider a 100K 30 year mortgage at 4.5% In month two the payment breaks down with $132 going to principal, and $374 going to interest. If, in month one, you had an extra $132 and directed it to principal, you would save $374 in interest. That is a great ROI and why it is wonderful to get out of debt as soon as possible. The trouble with this is of course, is that most people can barely afford the mortgage payment when it is new so lets look at the same situation in year 15. Here, $271 would go to principal, and $235 to interest. So you would have to come up with more money to save less interest. It is still a great ROI, but less dramatic. If you understand the \"\"magic\"\" of compounding interest, then you can understand loans. It is just compounding interest in reverse. It works against you.\"",
"title": ""
},
{
"docid": "00fb37a7d033be1b653ba67e7b758935",
"text": "\"The one thing that I saw in here that raised a big red flag is that you said you \"\"overpaid\"\" on your interest. ALWAYS make sure you tell them that any extra money should be applied to principal only, not to interest. You accrue interest based on your outstanding principal amount, so getting that lower reduces the overall amount of interest you end up paying. Paying the interest ahead saves you nothing. However, make sure you pay the current interest owed that month. They can capitalize past due interest - in affect, change that to be considered an addition to the loan principal amount and you end up paying interest on the interest.\"",
"title": ""
},
{
"docid": "e6d69a6de6af68379bf6eb0bb4cade98",
"text": "It used to be much more common, particularly for sub-prime loans. If you do run into someone offering a loan with a prepayment penalty, you should certainly consider other options.",
"title": ""
},
{
"docid": "8481a2039b2bc140fa374e80e6830c32",
"text": "If there's no prepayment penalty, and if the extra is applied to principal rather than just toward later payments, then paying extra saves you money. Paying more often, by itself, doesn't. Paying early within a single month (ie, paying off the loan at the same average rate) doesn't save enough you be worth considering",
"title": ""
},
{
"docid": "ce527149471a9f71e42cff35126becb5",
"text": "\"Yes, your debt goes up by that amount. It becomes part of the loan, and you'll pay interest on it. That's what \"\"capitalization \"\" means. It's not a bill because you don't have to pay it. We'll, not yet…\"",
"title": ""
},
{
"docid": "530d44ec6a3ba57ef978b22dbab78778",
"text": "It is often the case (more commonly in countries other than the USA) that a fixed-term loan has an early redemption penalty, because the lender themselves will incur a cost for settling the loan early, while a variable-rate loan does not. If this is the situation and you think you might want to pay off the loan early, you should definitely consider the variable rate rather than then fixed rate.",
"title": ""
},
{
"docid": "8b43f330c145b3509335301b690bd3eb",
"text": "There is no interest outstanding, per se. There is only principal outstanding. Initially, principal outstanding is simply your initial loan amount. The first two sections discuss the math needed - just some arithmetic. The interest that you owe is typically calculated on a monthly basis. The interested owed formula is simply (p*I)/12, where p is the principal outstanding, I is your annual interest, and you're dividing by 12 to turn annual to monthly. With a monthly payment, take out interest owed. What you have left gets applied into lowering your principal outstanding. If your actual monthly payment is less than the interest owed, then you have negative amortization where your principal outstanding goes up instead of down. Regardless of how the monthly payment comes about (eg prepay, underpay, no payment), you just apply these two calculations above and you're set. The sections below will discuss these cases in differing payments in detail. For a standard 30 year fixed rate loan, the monthly payment is calculated to pay-off the entire loan in 30 years. If you pay exactly this amount every month, your loan will be paid off, including the principal, in 30 years. The breakdown of the initial payment will be almost all interest, as you have noticed. Of course, there is a little bit of principal in that payment or your principal outstanding would not decrease and you would never pay off the loan. If you pay any amount less than the monthly payment, you extend the duration of your loan to longer than 30 years. How much less than the monthly payment will determine how much longer you extend your loan. If it's a little less, you may extend your loan to 40 years. It's possible to extend the loan to any duration you like by paying less. Mathematically, this makes sense, but legally, the loan department will say you're in breach of your contract. Let's pay a little less and see what happens. If you pay exactly the interest owed = (p*I)/12, you would have an infinite duration loan where your principal outstanding would always be the same as your initial principal or the initial amount of your loan. If you pay less than the interest owed, you will actually owe more every month. In other words, your principal outstanding will increase every month!!! This is called negative amortization. Of course, this includes the case where you make zero payment. You will owe more money every month. Of course, for most loans, you cannot pay less than the required monthly payments. If you do, you are in default of the loan terms. If you pay more than the required monthly payment, you shorten the duration of your loan. Your principal outstanding will be less by the amount that you overpaid the required monthly payment by. For example, if your required monthly payment is $200 and you paid $300, $100 will go into reducing your principal outstanding (in addition to the bit in the $200 used to pay down your principal outstanding). Of course, if you hit the lottery and overpay by the entire principal outstanding amount, then you will have paid off the entire loan in one shot! When you get to non-standard contracts, a loan can be structured to have any kind of required monthly payments. They don't have to be fixed. For example, there are Balloon Loans where you have small monthly payments in the beginning and large monthly payments in the last year. Is the math any different? Not really - you still apply the one important formula, interest owed = (p*I)/12, on a monthly basis. Then you break down the amount you paid for the month into the interest owed you just calculated and principal. You apply that principal amount to lowering your principal outstanding for the next month. Supposing that what you have posted is accurate, the most likely scenario is that you have a structured 5 year car loan where your monthly payments are smaller than the required fixed monthly payment for a 5 year loan, so even after 2 years, you owe as much or more than you did in the beginning! That means you have some large balloon payments towards the end of your loan. All of this is just part of the contract and has nothing to do with your prepay. Maybe I'm incorrect in my thinking, but I have a question about prepaying a loan. When you take out a mortgage on a home or a car loan, it is my understanding that for the first years of payment you are paying mostly interest. Correct. So, let's take a mortgage loan that allows prepayment without penalty. If I have a 30 year mortgage and I have paid it for 15 years, by the 16th year almost all the interest on the 30 year loan has been paid to the bank and I'm only paying primarily principle for the remainder of the loan. Incorrect. It seems counter-intuitive, but even in year 16, about 53% of your monthly payment still goes to interest!!! It is hard to see this unless you try to do the calculations yourself in a spreadsheet. If suddenly I come into a large sum of money and decide I want to pay off the mortgage in the 16th year, but the bank has already received all the interest computed for 30 years, shouldn't the bank recompute the interest for 16 years and then recalculate what's actually owed in effect on a 16 year loan not a 30 year loan? It is my understanding that the bank doesn't do this. What they do is just tell you the balance owed under the 30 year agreement and that's your payoff amount. Your last sentence is correct. The payoff amount is simply the principal outstanding plus any interest from (p*I)/12 that you owe. In your example of trying to payoff the rest of your 30 year loan in year 16, you will owe around 68% of your original loan amount. That seems unfair. Shouldn't the loan be recalculated as a 16 year loan, which it actually has become? In fact, you do have the equivalent of a 15 year loan (30-15=15) at about 68% of your initial loan amount. If you refinanced, that's exactly what you would see. In other words, for a 30y loan at 5% for $10,000, you have monthly payments of $53.68, which is exactly the same as a 15y loan at 5% for $6,788.39 (your principal outstanding after 15 years of payments), which would also have monthly payments of $53.68. A few years ago I had a 5 year car loan. I wanted to prepay it after 2 years and I asked this question to the lender. I expected a reduction in the interest attached to the car loan since it didn't go the full 5 years. They basically told me I was crazy and the balance owed was the full amount of the 5 year car loan. I didn't prepay it because of this. That is the wrong reason for not prepaying. I suspect you have misunderstood the terms of the loan - look at the Variable Monthly Payments section above for a discussion. The best thing to do with all loans is to read the terms carefully and do the calculations yourself in a spreadsheet. If you are able to get the cashflows spelled out in the contract, then you have understood the loan.",
"title": ""
},
{
"docid": "d98fbc6f95845296f3b6efb947d9d778",
"text": "If it is a business loan, the borrower would be able to claim a deduction for any interest paid on the loan and the lender would include the interest earned as part of their taxable income. You need to be careful on what you do and don't include as income. If the repayments made to you by the borrower in a year is $10,000 but only $8,000 of that is interest and the other $2,000 is part of the principal being returned to the lender, then you would only claim $8,000 as your income and the borrower would only claim $8,000 as a business deduction. Of course if it is interest only, then you and the borrower would use the full $10,000.",
"title": ""
},
{
"docid": "fa9c14c139e7f18be577416e908b7fd9",
"text": "the government wants to tax your money before you die. If you die your 401(k) becomes part of your estate and will not be taxed to as great an extent.",
"title": ""
}
] |
fiqa
|
b9b2e7a9fa3ff8ccb48b02aaed000d1d
|
Where can I borrow money for investing?
|
[
{
"docid": "77d204a01aa381794682d8311a8a933d",
"text": "\"Borrowing to invest is almost always a bad idea. You'd have to take out an unsecured loan, which has a higher interest rate, or a secured loan and put at risk whatever you are securing the loan with. You need some means to make payments on the loan, or if interest is being added to the balance then take the compounding effect into account with regards to the cost of the money and how much you will really end up owning. In order to come out ahead you need to 'invest' in something that will yield a return that is higher than the cost of borrowing the money, such high yields always come with higher risk, meaning that you will actually GET that return is less and less of a sure thing.. so now you are talking about the 'chance' to make money, Or a chance your 'investment' could fail, perhaps badly. Meaning you could well do nothing but end up in debt with little to nothing to show for it. If someone claims to have a 'sure thing' and is encouraging you to borrow money to invest in it, I'd be checking their back for a fin and remembering the lyrics \"\"when the shark bites ... scarlet billows start to spread\"\"\"",
"title": ""
},
{
"docid": "10afd6fe8226baff7b7f9efcdb68932b",
"text": "\"The question should read: \"\"Borrow huge money for speculating\"\". This is a bad idea on many levels. The lowest rates available will be from time-limited credit card offers, followed by broker margin accounts. Personal loans are going to be higher. My advice: if you insist on throwing your money away, go to Vegas with $40k. At least you'll get some complimentary food and drink.\"",
"title": ""
},
{
"docid": "bb1cf8423107a911bd071f131354e0dc",
"text": "If you are looking for money to speculate in the capital markets, then your brokers will already lend to you at a MUCH more favorable rate than an outside party will. For instance, with $4,000 you could EASILY control $40,000 with many brokers, at a 1% interest rate. This is 10:1 leverage, much like how US banks operate... every dollar that you deposit with them, they speculate with 10x as much. Interactive Brokers will do this for you with your current credit score. They are very reputable and clear through Goldman Sachs, so although reputable is subjective in the investment banking world, you won't have to worry the federal government raiding them or anything. If you are investing in currencies than you can easily do 50:1 leverage as an American, or 100:1 as anyone else. This means with only $400 dollars you can control $40,000 account. If you are investing in the futures market, then there are many many ways to double and triple and quadruple your leverage at the lowest interests rates. Any contract you enter into is a loan from the market. You have to understand, that if you did happen to have $40,000 of your own money, then you could get $4,000,000 account size for speculating, at 1% interest. Again, these are QUICK ways to lose your money and owe a lot more! So I'd really advise against it. A margin call in the futures market can destroy you. I advise you to just think more efficiently until you come up with a way to earn that much money initially, and then speculate.",
"title": ""
},
{
"docid": "95441942b8b50cf2a06698c919810714",
"text": "Borrow money and start a business. Follow your business plan and invest in yourself and your entrepreneurship. If you mean invest in the market, do not borrow money. In your plan, you are willing to make payments right? There are lots of things you can do better, but borrowing money to invest in the market for a couple of years is not one of them. Investing is boring, saving is boring, and planning your financial future is boring. It takes a consistent effort and you aren't going to get rich quick.",
"title": ""
},
{
"docid": "d5ed743c1075f892510f4690414f56a4",
"text": "Have you considered social lending (for example: Lending Club)?",
"title": ""
}
] |
[
{
"docid": "4d0d12071d5a8b1fab1af788a39a6c31",
"text": "No. Borrowing is not allowed, but if you take a withdrawal, you have 60 days to deposit into another IRA account. This effectively creates a 60 day loan. Not what you're really looking for. If you take this withdrawal and re-deposit to new account within 60 days, no problem. If not, you owe tax on the untaxed amount as well as a 10% penalty. This comes from IRS' Publication 590, I have the document memorized by substance, not page number.",
"title": ""
},
{
"docid": "6470741c89540d9d5adea1af37740f9b",
"text": "\"I don't follow the numbers in your example, but the fundamental question you're asking is, \"\"If I can borrow money for a low cost, and if I think I can invest it and receive returns greater than that cost, should I do it?\"\" It doesn't matter where that money comes from, a mortgage that's bigger than it needs to be, a credit card teaser rate, or a margin line from your stock broker. The answer is \"\"maybe\"\" - depending on the certainty you have about the returns you'd receive on your investments and your tolerance for risk. Only you can answer that question for yourself. If you make less than your mortgage rates on the investments, you'll wish you hadn't! As an aside, I don't know anything about Belgian tax law, but in US tax law, your deductions can be limited to the actual value of the home. Your law may be similar and thus increase the effective mortgage interest rate.\"",
"title": ""
},
{
"docid": "a6538981686b2af921afea0fb21d7b9c",
"text": "\"Fool's 13 steps to invest is a good starting point. Specifically, IFF all your credit cards are paid, and you made sure you've got no outstanding liabilities (that also accrues interest), stock indexes might be a good place for 5-10 years timeframes. For grad school, I'd probably look into cash ISA (or local equivalent thereof) -the rate of return is going to be lower, but having it in a separate account at least makes it mentally \"\"out of sight - out of mind\"\", so you can make sure the money's there WHEN you need it.\"",
"title": ""
},
{
"docid": "0f61c2688a2b82bdbad6909bab943faf",
"text": "\"Yes, definitely. Many municipalities and local governments issue bonds to fund various projects (schools, hospitals, infrastructure, etc). You can buy these bonds and in that way invest in these things. In the US these kinds of bonds are tax-free, i.e.: the income they provide is not taxed (by the US government, may be taxed by your State, check local tax laws). There are also dedicated mutual funds that that is all they invest in, if you don't want to deal with picking individual bonds. As to mom-and-pop stores - that would not be as easy, as mom-and-pop stores are by definition family owned and you can invest in them only if you are personally acquainted with them. Instead, you can invest in small regional/local chains, that while not being mom-and-pop, still small enough to be considered \"\"local\"\", but are publicly traded so that you can easily invest in them. You'll have to look for these. You can also use social lending platforms, like Lending Club, which I reviewed on my blog, or others, where you can participate in a lending pool to other people. You can invest in a credit union by opening an account there. Credit unions are owned by their account holders.\"",
"title": ""
},
{
"docid": "b117ffc4be3b40ef6e57f576be646797",
"text": "\"It may seem like you cannot live without this trip, but borrowing money is a bad habit to get into. Especially for things like vacations. Your best bet is to save up money and only ever pay cash for things that will decrease in value. Please note that while it is a bad idea to borrow money for things that decrease in value, the \"\"opposite\"\" is not necessarily true. That is, it is not necessarily a good idea to borrow money for things that will increase in value; or, will earn you income. False assumptions can cloud our judgement. The housing bubble and the stock market crash of 1929 are two examples, but there are many others.\"",
"title": ""
},
{
"docid": "ecd8bd38a8923493a989fd91c8d71b8e",
"text": "In the U.S. it is typical that a stock brokerage account can be set up to buy stock with up to half the cost being borrowed from the broker. This is called a margin account. The stock purchased must remain in the account until sold (or the loan is paid off), as it serves as built-in collateral for the loan. If the market price for the stock goes down too much, you will be required to add money, or the stock will be sold to cover the loan. See this question for some more information.",
"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": "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": "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": "9ba51d2d9ec2c4cf2b1e53d4321ceaf5",
"text": "\"Funds - especially index funds - are a safe way for beginning investors to get a diversified investment across a lot of the stock market. They are not the perfect investment, but they are better than the majority of mutual funds, and you do not spend a lot of money in fees. Compared to the alternative - buying individual stocks based on what a friend tells you or buying a \"\"hot\"\" mutual fund - it's a great choice for a lot of people. If you are willing to do some study, you can do better - quite a bit better - with common stocks. As an individual investor, you have some structural advantages; you can take significant (to you) positions in small-cap companies, while this is not practical for large institutional investors or mutual fund managers. However, you can also lose a lot of money quickly in individual stocks. It pays to go slow and to your homework, however, and make sure that you are investing, not speculating. I like fool.com as a good place to start, and subscribe to a couple of their newsletters. I will note that investing is not for the faint of heart; to do well, you may need to do the opposite of what everybody else is doing; buying when the market is down and selling when the market is high. A few people mentioned the efficient market hypothesis. There is ample evidence that the market is not efficient; the existence of the .com and mortgage bubbles makes it pretty obvious that the market is often not rationally valued, and a couple of hedge funds profited in the billions from this.\"",
"title": ""
},
{
"docid": "c164f3698cace48ad15cbebf89a3c733",
"text": "Nowhere. To back up a bit, mutual funds are the stock market (and the bond market). That is, when you invest in a mutual fund, your money is ultimately buying stocks on the open market. Some of it might be buying bonds. The exact mix of stocks and bonds depends on the mutual fund. But a mutual fund is just a basket of stocks and/or bonds (and/or other, more exotic investments). At 25, you probably should just be investing your Roth IRA in index stock mutual funds and index bond mutual funds. You probably shouldn't even be doing peer-to-peer lending (unless you're willing to think of any losses as the cost of a hobby); the higher interest rate you're getting is a reflection of the risk that your borrowers will default. I'm not even sure if peer-to-peer lending is allowed in Roth IRA's. Investing in just stocks, bonds, and cast is boring, but these are easy investments to understand. The harder the investment is to understand, the easier it is for it to be a scam (or just a bad investment). There's not necessarily anything wrong with boring.",
"title": ""
},
{
"docid": "0917b869f6a039582d7eb14689bceea3",
"text": "It's worth pointing out that a bulk of the bond market is institutional investors (read: large corporations and countries). For individuals, it's very easy to just put your cash in a checking account. Checking accounts are insured and non-volatile. But what happens when you're GE or Apple or Panama? You can't just flop a couple billion dollars in to a Chase checking account and call it a day. Although, you still need a safe place to store money that won't be terribly volatile. GE can buy a billion dollars of treasury bonds. Many companies need tremendous amounts of collateral on hand, amounts far in excess of the capacity of a checking account; those funds are stored in treasuries of some sort. Separately, a treasury bond is not a substitute investment for an S&P index fund. For individuals they are two totally different investments with totally different characteristics. The only reason an individual investor should compare the return of the S&P against the readily available yield of treasuries is to ensure the expected return of an equity investment can sufficiently pay for the additional risk.",
"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": "4bf7100c7874c779c10be1ad9e90e119",
"text": "\"Theory of Levered Investing Borrowing in order to increase investment exposure is a time-honored and legitimate activity. It's the optimal way to increase your exposure, according to finance theory (which assumes you get a good interest rate...more on this later). In your case it may or may not be a good idea. Based on the information in your post, I believe that in your case it is not a good idea. Consider the following concerns. Risk In finance, reward comes with risk and in no other way. Investing borrowed money means there is a good (not small) chance that you will lose enough money that you will need to pull significant wealth from your own savings in order to make up the difference. If you are in a position to do this and OK with that possibility, then proceed to to the next concern. If losing a lot of money means financial calamity for you, then this is a bad idea. You haven't described your financial situation so I don't know in which camp you fall. If the idea of losing, say, $100K means complete financial failure for you, then the strategy you have described simply has too much risk. Make no mistake, just because the market makes money on average does not mean it will make money, or as much money as you expect, over your horizon. It may lose money, perhaps a lot of money. Make sure this idea is very clear in your mind before taking action. Rewards Your post implies that you think you can reliably get 10%-12% on an investment. This is not the case. There are many years in which a reasonable portfolio makes this much or more, but on average you will earn less. No ones knows the true long-term market risk premium, but it is definitely less than 10%. A better guess would be 6.5% plus whatever the risk-free rate is (currently about 0%). Buying \"\"riskier\"\" investments means deviating from the optimal portfolio, meaning you took on more risk than is justified by how much extra money you expect to make. I never encourage people to invest based on optimistic or unrealistic goals. If anything, you should be conservative about how you expect things to go. And remember, these are averages. Any portfolio that earns 10%-12% also has a very good chance of losing 25% or more. People who sell or give advice on investments frequently get you charged up by pointing at times and investments that have done very well. Unfortunately, we never know whether the investments and time period in which we are investing will be a good one, a bad one, or an unexciting one. The reality of investing is...well, more realistic than what you have described. Costs I can't imagine how you could borrow that much money and only have an annual payment of $2000 as you imply--that must be a mistake. No individual borrows at a rate significantly below 1%. It sounds like it's not a collateralized loan of any kind, so unless you are some kind of prime-loan customer, your interest rate will be significant. Subtract whatever rate you actually pay from 6.5% to get a rough idea of how much you will make if things go as well as they do on average. You will pay the interest whether times are good or bad. If your rate is typical of noncollateralized personal loans, there's a good chance you will lose money on average using the strategy you have described. If you are OK with taking risk with a negative expected return, consider a trip to Las Vegas. It's more exciting. Ethics I'm not one to make people feel guilty for doing things that are legal but of questionable morality. If that's the case and you are OK with it, more power to you. I'm not sure under what pretense you expect to obtain the money, but it sounds like you might be crossing legal lines and committing actual crimes (like fraud). Make sure to check on whether what you intend is a white lie or something that can get you thrown in prison. For example, if you are proposing obtaining a subsidized education loan and using it for speculation, I could easily see you spending serious time in prison and permanently ruining your life, even if your plan works out. A judge and 12 of your peers are not going to think welfare fraud is a harmless twist of the truth. Summary I've said a lot of negative things here. This is because I have to guess about your financial situation and it sounds like you may have unrealistic expectations of the safety and generosity of investing. Quite frankly, people for whom borrowing $250K is no big deal don't normally come and ask about it on StackExchange and they definitely don't tend to lie in order to get loans. Also $18K a year doesn't change their quality of life. However, I don't know. If $250K is small relative to your wealth and you need a good way to increase your exposure to the market risk premium, then borrowing and investing may well be a good idea.\"",
"title": ""
},
{
"docid": "8082d5dbe8ace4746ececb5fbe53dea7",
"text": "Unfortunately the answer is, almost none. Almost everything has a risk of decreasing; but given your short time horizon and presumably given that you want back your principal in full, plus a little bit, you have few choices. (Some of the following may be Canadian specific terms, but hopefully they are generic enough to apply) Savings accounts, money-market funds and the like should be available at any bank. Interest won't pay you much right now, but the money should be safe (I presume Israel has some kind of deposit insurance for normal bank accounts?) Slightly more risky would be a short-to-maturity bond or stripped bond coupon. The entry amount of money for one of these may be more than you have on hand, or the setup fee for an investment account might be more than you want to bother with for a one-off investment. Given that you seem to indicate that you might need access to the money during the time-frame in question, the bank-account option seems to be the only one really available.",
"title": ""
}
] |
fiqa
|
e8c68f7e79dcf94c463b70afbc0c8cf5
|
Why would you ever turn down a raise in salary?
|
[
{
"docid": "e3c326b2ea3f1b5e375bbd90af5d2132",
"text": "\"I don't know of a situation where rejecting a raise would make sense. Often, one can be in a phaseout of some benefit, so that even though you're in a certain tax bracket, the impact of the next $100 is greater than the bracket rate alone. Taxation of social security benefits is one such anomaly. It can be high, but never over 100%. Update - The Affordable Care Act contains such an anomaly - go to the Kaiser Foundation site, and see the benefit a family of three might receive. A credit for up to $4631 toward their health care insurance cost. But, increase the income to above $78120 Modified Adjusted Gross Income (MAGI) and the benefit drops to zero. The fact that the next dollar of income will cost you $4631 in the lost credit is an example of a step-function in the tax code. I'd still not turn down the raise, but I'd ask that it be deposited to my 401(k). And when reconciling my taxes each April, I'd use an IRA in case I still went over a bit. Consider, it's April, and your MAGI is $80,120. Even if you don't have to cash to deposit to the IRA, you borrow it, from a 24% credit card if need be. Because the $2000 IRA will trigger not just $300 less Federal tax, but a $4631 health care credit. Note - the above example will apply to a limited, specific group who are funding their own health care expense and paying above a certain percent of income. It's not a criticism of ACA, just a mathematical observation appropriate to this question. For those in this situation, a close look at their projected MAGI is in order. Another example - the deduction for college tuition and fees. This is another \"\"step function.\"\" Go a dollar over the threshold, $130K joint, and the deduction drops from $4000 to $2000. You can claim that a $2000 deduction is a difference of 'only' $500 in tax due, but the result is a quick spike in the marginal rate. For those right at this number, it would be worth it to increase their 401(k) deduction to get back under this limit.\"",
"title": ""
},
{
"docid": "180368ebdb2fa642ae3f540d64e0e4d7",
"text": "\"I probably wouldn't turn down a raise, but there are some circumstances in which you might hesitate. Having a disproportionately high salary for your type of role or the value you are providing to the company makes you an attractive layoff target in an economic downturn. I've heard anecdotally of lots of corporate lawyers getting laid off because they were getting raises every year, and ended up with such ridiculous salaries that when the economy went south, the company basically asked \"\"why are we paying these people so much?\"\" Same thing happens in lots of places - Circuit City lays off the experienced, highly-paid salespeople and brings in cheap-o high school students (that didn't work out well for them, but they did it anyway). Still, even knowing that, I'd accept the pay raise. You're making more money the whole time you're employed, and prior salary is the biggest predictor of the salary you can negotiate at a new position.\"",
"title": ""
},
{
"docid": "b746fa726e1723cb28bd6ebb60a627b5",
"text": "\"My answer has nothing to do with tax brackets or mathematics (I'm taking advantage of the leeway your question allowed), but rather it has to do with career goals and promotion. Large companies often have large \"\"Policies & Procedures\"\" booklets to go with them. One policy that sometimes exists which would make it a bad idea to accept a raise is: Employee cannot be given more than one salary increase in a 12-month period This means that if you accept a standard-of-living or merit increase of say, 2% or 3% in April, and then you apply for a job that would otherwise warrant a pay grade increase, you may be forced to wait until the following year to get bumped to the proper pay grade. Of course, this totally depends on the company, but it would be advisable to check your company's H.R. policy on that, if you're considering a move (even a lateral one) in the future.\"",
"title": ""
},
{
"docid": "b434b7b7a2e750295a18e50334555552",
"text": "If you have children in a university institution, then your annual salary is reported via financial aid forms. The small raise could be the difference between full tuition covered and only half tuition covered.",
"title": ""
},
{
"docid": "79de53b2ca5cd475b5f1a203e519e4fe",
"text": "I had a colleague turn down a raise once because he believed that female colleagues were already being paid well below his salary and it was unfair to further increase this gap. For very public figures raises are often declined as a form of leadership: showing that management is willing to forgo bonuses and salary increases as a form of solidarity with the employee population. Some leaders forgo a salary altogether (or take a $1/year salary).",
"title": ""
},
{
"docid": "61c17946cf2d33967b718ffe3db500f1",
"text": "I would turn down a 20% raise in salary without thinking, if they would offer that I can have a 4 day work week. I even take a 10% cut for this!",
"title": ""
},
{
"docid": "e0eb8fd7848105c6f127549bf3f6cd33",
"text": "Here in Germany there is a special case. I am studying (and working a little on the side) and still receiving child benefits from the state which is like 190€/m. Because I am getting this I don't have to pay tuition which is 1k/y. If my side income would get over the boundary (which is like 9k/y) I would lose those benefits (~3.3k) and would have to pay insurance myself (I dont know how much that would be. 50-100/m I guess.) So getting a raise from 8k to 10k sounds nice as it is a 25% raise, but it actually means getting less.",
"title": ""
},
{
"docid": "71a8f1cfe2081d6b80639bcdb92833ae",
"text": "I once turned down a raise because I didn't agree with the employee review that supposedly substantiated the raise. I felt the review to be superficial and incomplete. Then I refused to sign it, or take the accompanying raise, due to that fact.",
"title": ""
},
{
"docid": "ef238d44f6ade1b18699e8e1f245592d",
"text": "In the UK, recent changes to pension taxation mean that from April 2011, people earning between £150,000 and £180,000 total and making large pension contributions (>£50,000 or so) will pay a marginal tax rate on additional salary of >100%. This is because pension contributions normally attract tax relief at the highest marginal rate - i.e. 40% if the gross salary is above about £40,000, and 50% for salaries above £150,000. But after April 2011, the rate of relief will be tapered down for gross salaries above £150,000, reaching 20% for a gross salary of £180,000. So for example if you earn £175,000 and make a contribution of £50,000, then an additional £1,000 in salary will incur £500 of direct tax, and also lead to a 1% reduction in tax relief (from 25% to 24%), costing another £500. Once you factor in National Insurance of another 1% or so, the net effect of the pay rise is negative.",
"title": ""
},
{
"docid": "153ac29de4630fcbcea28e9bbe3b1185",
"text": "In the UK, the government has recently announced that Child Benefit will no longer be paid to those who earn over £44k. This means that if you currently earn £43,999, and your employer offers you a raise of £10 per annum to £44,009, then you could be over £1k worse off as a result.",
"title": ""
},
{
"docid": "46b2a4930485c93547ff9ffe8c4a39c2",
"text": "The only valid reason from a financial point of view is if the raise is a promotion or comes with conditions that are unacceptable to you. You may not want added supervisory responsibilties, for example. You need to use discretion when refusing advancement though, at places where I have worked, declining a raise or promotion is seen as a career killer for some circumstances.",
"title": ""
},
{
"docid": "d5d66cfdc3c1cde6eaaec09ba802a21b",
"text": "At least with US tax law where you only pay taxes at the higher rate for the income above the minimum for that tax bracket, you will always wind up ahead taking the raise if you are simply concerned with after tax (FICA) income. For example, assume you were making $8,350 (the top end of the 10% bracket in the US), and got a $100 raise, you would be taxed roughly as follows: After Tax Income Before Raise: $8,350 x (100% - 10%) After Tax Income After Raise: $8,350 x (100%-10%) + $100 x (100%-15%) You can easily see that the second number is always higher than the first as long as the raise is a positive amount (obviously).",
"title": ""
},
{
"docid": "5b9afd809b19ea026a97e23618f37748",
"text": "I recently was offered $1/hr raise. I turned it down because 1.)I had been looking for other jobs and the extra $150 per month wasn't enough money to keep me from exploring other options so it would look bad to take a raise and leave a month later. You never want to burn bridges. 2.) Raises aren't given out everyday. The business I work for is having financial troubles and the $1/hr was probably the best they could do at the time. If business picks up and they can afford to give me more money they won't do it because the record will show that I just got a raise. One good extra is that your boss will be flabergasted that you just turned down a raise and you may gain a lot of respect from your superiors. Don't confuse strategically turning down a raise and letting others sway your opinion because they don't wanna cough up the cash.",
"title": ""
},
{
"docid": "51923f3d32c6455dafbdb60e7766dc59",
"text": "Sometimes it's not entirely about take-home pay. A pay raise can affect other things like: These things need to be considered since they also affect quality of life.",
"title": ""
},
{
"docid": "9f6526f89de81cff8e4019c891345375",
"text": "There is currently a bill in Washington that will change the limit for salaried employees receiving overtime pay. It will be raised to $50400. I work 4 hours of overtime each week, which if the bill is passed, equates to an additional $7800 annually. If my company raises my salary to just above the limit then they would not have to pay the overtime. That would only be a raise of approx. $3000. Why would I want to take the raise, and still have to work the overtime, when I can choose to not take the raise and possibly not have to work it any longer. I would rather have the time off, but if I'm going to have to work it, then I'll take the more than double overtime pay.",
"title": ""
},
{
"docid": "a2999b33798536f587211bf4346238fc",
"text": "There are some student loan repayment programs and the like where, if a raise would bump you past a certain threshold, you become ineligible and are suddenly left holding the whole bag, or alternately the payoff for having your loans forgiven/repaid drops considerably. It can make financial sense to avoid crossing those thresholds.",
"title": ""
},
{
"docid": "27e0430f759036c11f1f3a188d4dbd52",
"text": "\"This would never apply for tax \"\"brackets\"\". It's not as though making an extra dollar will put you into an entire separate bracket, the IRS isn't that bad. They bump up the \"\"brackets\"\" every $50, so you will never turn down a raise because it would cause you to lose income. However if your raise would preclude you from contributing to your IRA because it pushes you over $110,000 then yes, you could turn it down or explain to your boss that it would need to be just a little bit higher to cover your IRA contribution loss.\"",
"title": ""
},
{
"docid": "befd90c643c2f13546371eefe400dddc",
"text": "\"One \"\"economic reason\"\" to turn down a raise is if your company gives bonuses based on performance reviews. When you get a raise in salary, your boss usually expects a better performance from you. That being said, if you get the raise, and your performance review is worse, you might get a smaller annual income.\"",
"title": ""
},
{
"docid": "6469c3c29865963a8e5df4b2ddec26cc",
"text": "\"In Australia there are cases for the argument. 1) We have laws against unfair dismissal that do not apply above certain thresholds. Your position is more secure with the lower salary. 2) Tax benefits for families are unfairly structured such that take home pay may actually be less, again due to a threshold. This tends to benefit charities as people need to shed the taxable income if a repayment of benefits would otherwise be triggered. 3) You do not want to \"\"just cross\"\" a tax bracket in a year where levies are being raised for natural disasters or budget shortfall. In this case a raise could be deferred ?\"",
"title": ""
},
{
"docid": "4d031a7f86ad55631c6d625512021e17",
"text": "It would make sense to refuse a raise when it pushes your effective marginal 'tax' (including reduced benefits) above 100%. The working poor (family of 4, 20K-40K in the US) often face marginal rates above 100% when you consider the phase out of various government benefits (EITC, insurance, housing,etc.) You can see the research here and here.",
"title": ""
},
{
"docid": "36e4353c63bbbd0351696c2c0894910e",
"text": "Jurisdictions will vary but I can imagine calculation methods for child support where the raise could become significant in the present with long future ramifications as well, even if the job is temporary or the parent wanted to step away from working full-time to attend school. The timing of the raise might coincide with disclosure of income to an ex-spouse or to the court related and it might be preferable to postpone the increase. Of course the court would probably frown on declining the raise for only these reasons. If it found out it might impute the higher income anyway. And I'm not suggesting that people dodge responsibility for their kids. We've all seen those cases where child support is not particularly equitable between the two parties and/or the kids do not necessarily benefit by the transfer of money. I wouldn't blame a parent for thoughtfully and unselfishly considering this type of second-order effect and consulting an attorney as with so many other financial implications of divorce. Regardless of personal moral objections it's certainly an answer to the question in technical terms that somebody somewhere has taken into account.",
"title": ""
},
{
"docid": "d8727042c22aefe9e3adf5f21e60d2b2",
"text": "I recently rejected an offer at a different firm that would have provided a 14k yearly increase. The reason for the rejection was because I would have had to give up two work from home days, my commute would have been about an hour and half each way, I would have lost about 14 extra days of PTO and holiday pay, and the new company didn't match anything for 401k.",
"title": ""
}
] |
[
{
"docid": "27d00415eb2551c200e1cabbf5273d3f",
"text": "The problem with this is that it really only works in a small firm where everyone knows everyone else. Once it gets bigger and all the managers don't know all the workers it becomes a matter of who can BS the skill level of their favorites better in the yearly review. Then the resentment isn't about normally unknown salaries, it's about whether other employee's levels are legitimate. Don't get me wrong, opening up the conversation and trying to make it more objective is good, but this isn't some sort of common sense, one size fits all panacea.",
"title": ""
},
{
"docid": "494c5a502d369a1c921ab752b8ff5948",
"text": "\"The real question is what can you NOT do! If you track all your monetary actions, you know everything about your monetary situation. That means you have the tools to ask and answer \"\"what if\"\" questions, such as: \"\"If I get a 10% raise, could I take longer vacations?\"\" You could calculate how much you spend per day on vacation and then consider the amount of your raise and how much of it you'd need to allocate to vacations to, say, be able to take a two-week vacation instead of a one-week vacation. \"\"How much more would I have to earn to move to this nicer apartment?\"\" This may seem like a simple question, but a surprising number of people can't answer it in a reliable way, because they don't have a clear understanding of how much money they make and how much of it they can afford to spend on housing. If you find you have lots of spare income, maybe you can move to the nicer place right away; if not, at least you can get a sense of how much more money you'd need to make it happen. \"\"If I started taking the bus to work, how much would I save?\"\" You can look at how much you spend on gas and compare that to the price of a bus pass. By separating out categories like gas, repairs, and car insurance, you can also calculate different scenarios, like if you still kept your car but only used it for occasional trips, versus if you sold the car and used only public transportation. \"\"If I want to take a trip to Tahiti, what can I cut back on to save the money?\"\" Using your table you can pencil out scenarios like \"\"Suppose I stop eating out for lunch at work and just bring my lunch, how long would I have to do that to save enough to pay for a plane ticket?\"\" These are just a few random examples. The general idea is that with a record of hard numbers, you can start to consider potential tradeoffs in an objective way --- that is, you can ask \"\"how much in category X would I have to give up to gain this thing I want in category Y?\"\" The real trick in making use of your data is not so much \"\"what\"\" you can do, but \"\"how\"\" exactly to do it. You may have to become more of a spreadsheet wizard to really delve into these questions. Also, if you have programming expertise, you can even use something like Python to do calculations that might be laborious in a spreadsheet.\"",
"title": ""
},
{
"docid": "0df7234de23fe9441f835f8083b937e7",
"text": "This was absolutely true for me. I'm retired now. Until my last company I always got about 5% raise. When I skipped jobs the raise was usually enormous. I went: 19K 25K 30K 35K 50K 75K 85k 75K (last job sucked and this one was stupid simple at first) New company gave me steady raises to $125K and I got to do awesome work and was in complete control. There is no way I would have gone from 19K to 125K at the same firm.",
"title": ""
},
{
"docid": "efbeb66e10cd48131de8e89d2a0fdc6a",
"text": "All hearsay and a bad memory, but if I remember correctly, when you dig deep the reason he raised salaries was to help fight some lawsuits against his ex wife and/or ex business partner. These raises effectively made the company make nothing while he was fighting lawsuits. Then it eventually turned into publicity and more clients for his payment processing company.",
"title": ""
},
{
"docid": "a02d314be40e2de7566d5585bb79ddf7",
"text": "\"And that is my point: without specific dollar amounts...this is USELESS information. The problem with this crap information is that some crappy operation will find a reason to pay themselves more for being a \"\"good boss\"\" thinking that will make up for any raises. I'd take a better boss over a 5-cent an hour raise (and yes, I worked at McDonalds when raises were 0-5-10 cents an hour...and yeah, I would have liked a better boss for 5 cents). However, for an annual job that pays $500/hr I'll gladly work in horrid conditions with a horrible boss doing awful things.\"",
"title": ""
},
{
"docid": "442ed4cce3fedeeeb99c73feb326f40b",
"text": "Not necessarily. You only need to raise prices to maintain current profit margins. Assuming you aren't living on a paper thin profit margin, you can give your employees a raise and suffer a lower profit margin. Now, that could have other negative consequences on your stock value and shareholders might be upset, but that is a different discussion.",
"title": ""
},
{
"docid": "7fa35b69d33d8655a192fae2ddb950b1",
"text": "Microsoft doesn't do salary negotiations... The way the salary structure works at Microsoft is similar to how it works in many other huge companies. You have a rank/level/title (eg. developer, Senior developer, Principal developer, and upwards) and your salary is based solely on that. For example, every new college hire starts at a certain rank (whether foreign or not) and every new college hire starts at the same level of pay. When you get a promotion you get a new title and a corresponding pay increase. You can't negotiate for bonuses or salary increases, it's set in stone for everyone. This is for engineering positions, obviously sales/marketing/etc. all have different structures.",
"title": ""
},
{
"docid": "85a7f356bac3336d22f16c480e4c8a41",
"text": "its not that hard to figure out Please explain how arbitrarily raising employee wages would raise demand. What kind of 'demand' do you even speak of? Did you mean [Labor Demand](http://en.wikipedia.org/wiki/Labor_demand) ---I think what you talking about is [Consumer Confidence](http://en.wikipedia.org/wiki/Consumer_confidence). Please enlighten me.",
"title": ""
},
{
"docid": "bce8281f921835b728fba8738e1ec55c",
"text": "I had a similar decision to make. I got offered a modest salary near Philly, or a better salary plus a nice bonus in New York. I chose New York. I'm loving it so far but who knows what will happen. I'm actually saving a lot of money as I automatically have it deduct from my paycheck and disperse into several savings accounts. I guess it's different for everyone and you have to consider your situation before applying a blanket advice",
"title": ""
},
{
"docid": "4e0f407d03737175db7d72d8f5e9d3e4",
"text": "This is bad statistics. If you look at people who jumped ship, of course you're going to see bigger increases in salary because you're not counting those that looked for a new job and didn't find a better offer. They stayed put. People are complacent but companies are, too. Employers aren't putting a lot of effort into firing bad employees as soon as they can. So there are employees that aren't jumping ship and could be paid more but there are also employees that should be kicked off the ship and paid less, but aren't. All that said, staying put is easier than moving and there's a price for it. If you're willing to move around, you might do better. Might not. If you only look around at the ones that did move, of course it's going to look like they did better!",
"title": ""
},
{
"docid": "f4f0df64d1cd7d42776f3b94467ed780",
"text": "Recent MBA grad here. I would much rather work at a job that makes me happy than a job that pays more. With that said, I'm feeling pressure to earn a fairly high salary to pay off all the student loans. I will probably spend a few years trying to find a balance between happiness and salary and then completely forget about salary after my loans are paid off.",
"title": ""
},
{
"docid": "215dc7dad7674e2dfac95e80a8d3df64",
"text": "\"Many in management seem to live in an alternate reality from those who work for a living. When IBM shunted some techs into another company they put them on probation for a year (even though they were high performers - some with 25+ years at IBM = no job security) and cut their pay 25%. The next time they went to move workers the first question was \"\"how much is the pay cut this time\"\". Management's reply, \"\"No pay cut because we found when we did it before it negatively affected morale.\"\" I thought: \"\"No kidding. They had to actually cut people's pay 25% to figure that out? What planet DO they live on?\"\"\"",
"title": ""
},
{
"docid": "250bf86246dfc46508bdbb932830201a",
"text": "> but since that's impossible (due to the bureaucracy) in most jobs Huh? Dude, asking for a raise is never impossible. Go to your manager and make a well thought-out case. This is how it's done. It's not magic. Very rarely, in any professional environment, will anyone just hand you a raise because they think you're a nice guy. Keeping your head down and nose to the grindstone will not get you noticed. Obviously, going elsewhere to get that higher salary should also be an option. I did it once too. But in the situation you describe, you'd be crazy not to go demand a bigger slice of the pie.",
"title": ""
},
{
"docid": "587a65d963fc2a65049684b33ecee4f6",
"text": "My doubt is whether Govt./Reserve Bank of India gives any explicit incentives to banks to offer cheaper home loans ? Currently NO. In the past Loan against GOLD was considered priority sector lending [Loans to poor and agriculture etc]. Every Bank need to lead around 25% to priority sector. Hence quite a few Banks gave loans relatively cheaper to todays rate rather than giving it as Farm loan that almost never get recovered. It is no longer the case now as Loan against GOLD is not considered priority lending. If it were just demand/supply, I feel that gold loans should have been cheaper It is demand and supply. There are quite a few reasons for this;",
"title": ""
},
{
"docid": "50d0b42ef54f328df9c633c45a1d2aba",
"text": "No, you can't do this indefinitely. For one, you can't just take money out as home equity with no strings attached. The cash out is done as a loan (often a HELOC) or second mortgage and you have to make payments. The lender will always make sure you are able to afford the payments. At some point, you won't qualify for the loan because of insufficient income or too many previous liens on the property. While home values often go up, there's no guarantee. And your examples are more than a bit optimistic.",
"title": ""
}
] |
fiqa
|
2a87821a632d2d857cd5b54f5e240b42
|
Is interest on a personal loan tax deductible?
|
[
{
"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": "2d92d7b11bb193ddd6c7c2b3ed4edf86",
"text": "Can you deduct interest paid to your father on your personal income taxes? Interest paid on passive investments can be deducted from the amount earned by that investment as an investment expense as long as the amount earned is greater than the total paid for the interest expense. Also beware if the amount of interest paid is greater than the yearly gift tax exclusion, as the IRS might interpret this as a creative way of giving gifts to your father without paying gift tax. Do you pay taxes on the interest you pay? No, because is an expense, not income, you would not count interest paid to him as taxable income. Does your father owe taxes on the interest he collects from you? Yes, that is income to him. And the last question you didn't ask, but I expect it is implied: Do you owe taxes on the quarterly profits? Yes, that is income to you. The Forbes article How To Arrange A Loan Between Family Members is a bit dated, but still a good source of information. You really should write a formal note (signed by both you and your father) indicating the amount borrowed, the interest rate you are paying on that amount, and when the loan will be repaid. If your father has set the interest rate too low, this could also be considered a gift to you, though we would really be talking about large amounts of money to hit the gift tax limit on interest alone.",
"title": ""
},
{
"docid": "e785065550f472303939fbd42aa24ed0",
"text": "\"Assuming USA: It is possible to make the interest deductible if you go to the trouble of structuring, and filing, the loan as an actual mortgage on a primary residence. Websearching \"\"intra-family loan\"\" will find several firms which specialize in this. It costs about $700 for all the paperwork and filing fees as of last time I checked, so unless you're going to pay at least three times that in interest over the life of the loan it probably isn't worth considering. (For an additional fee they'll take care of the payment processing, if you'd really rather be hands-off about it.) I have no idea whether the paperwork fees and processing fees can be deducted from the interest as a cost of producing that income. In theory that ought to be true, but I Am Not A Lawyer. Or accountant. Note: one of the interesting factors here is that the IRS sets a minimum interest rate on intra-family loans. It's pretty low (around 0.3%), so in most cases you can say you gifted the difference if you'd prefer to charge less... but that does set a floor on what the IRS will expect the lender to declare, and pay taxes on. There's a lot more that can be said about this, but since I am NOT an expert I'll refer you to those who are. I have no affiliation with any of this except as a customer, once; it seemed pretty painless but I can't claim to know whether they were really handling everything exactly correctly. The website seemed to do a pretty good job of explaining what choices had to be made and their effects, as well as discussing how these can be used to avoid excess gift taxes by spreading the gift over a number of years.\"",
"title": ""
}
] |
[
{
"docid": "9b897b567bfce7028ff83cab009ff20e",
"text": "Credit card interest was deductible prior to 1986. Just because it's an expense doesn't mean it needs to be deductible. We need to move toward elimination of the income tax, we're also $20T in debt, there's gonna be cuts that people aren't gonna like but we have to move forward.",
"title": ""
},
{
"docid": "9abd11c4faeca3bc4564dcce7b880472",
"text": "Congratulations for achieving an important step in the road to financial freedom. Some view extending loan payment of loans that allow the deduction of interest as a good thing. Some view the hit on the credit score by prematurely paying off an installment loan as a bad thing. Determining the order of paying off multiple loans in conjunction with the reality of income, required monthly living expense, and the need to save for emergencies is highly individualized. Keeping an artificial debt seems to make little sense, it is an expensive insurance policy to chase a diminishing tax benefit and boost to a credit score. Keep in mind it is a deduction, not a credit, so how much you save depends on your tax bracket. It might make sense for somebody to extend the loan out for an extra year or two, but you can't just assume that that advice applies in your situation. Personally I paid off my student loan early, as soon as it made sense based on my income, and my situation. I am glad I did, but for others the opposite made more sense.",
"title": ""
},
{
"docid": "59db4cc4a68d16b98e8754c628bc19af",
"text": "\"Mortgage interest in Canada is not generally tax deductible for individuals. (Where did you read otherwise?) As an individual, the only mortgage interest you may be able to deduct is when you borrow the money to purchase an income-producing asset, e.g another property you can rent out, or investments producing dividends or other income. In these cases, the interest you pay on the borrowed funds, i.e. the \"\"carrying costs\"\" for your investments, would be deductible against the income produced by the investments purchased.\"",
"title": ""
},
{
"docid": "0c1f9be2456ff2e8a94d0978c0b7d7c6",
"text": "With the information you have given, I would say never. Remember the banker is a salesman, and the line of credit is the product. If you don't need to borrow the money for something specific, then you don't need the line of credit in the first place. Even if you did need something I would tell you to save up and pay cash for it. On the tax advantage: There is none, in the US you can deduct your mortgage interest on your taxes but it's not a tax credit it's a tax deductions. Let me explain further: You spend $10,000 on mortgage interest, and you're in the 25% tax bracket. You send the bank $10,000 in return you get at tax savings of $2500. You are still in the hole $7500 You would have been better off not taking out the loan in the first place. On the Emergency Fund: You should have 3 - 6 months of expenses in cash, like a money market account. This money isn't for investing, it's like insurance, and you don't make money on insurance. The last thing you want to do is have to go into debt right in the middle of an emergency. Say you lost your job, the last thing you would want to do is borrow money, right at the time you have no income to pay it back. The bank is under no obligation to maintain you credit limit and can without notice reduce it, they can in most cases call the loan balance due in full with little or no notice as well. Both of those are likely scenarios if the bank were to become aware of the fact that you were unemployed.",
"title": ""
},
{
"docid": "99ba78f0aedd1f77dd101ffe5d556cae",
"text": "If you just make a capital contribution to the company it is not a taxable event. If you're the owner, lending only makes sense if you want the company to pay you interest (if you have partners who aren't lending money, for example) and you want to be compensated for lending, a loan would allow that. But the interest is taxable as income to you (1099-int) and the company can expense it. But a capital contribution is much easier and you can take a distribution later to get paid back. Neither event is taxed, but you cannot take interest.",
"title": ""
},
{
"docid": "f6e1bec4500da2d024b84b66bd887863",
"text": "Any money that ScottMcGready gives to the company is a personal loan that must be repaid by the company at some point without tax consequences. Any money that the company gives to ScottMcGready is either salary (Scott pays income tax, company counts this as cost), or a dividend (Scott pays dividend tax), or a loan (Scott must repay the loan).",
"title": ""
},
{
"docid": "e31d8c3f836d3ec8d604107df90b5081",
"text": "For the purpose of personal finance, treating $500 as Interest Expense is sufficient. For business accounting, it involves making the $500 a contra-liability and amortizing it as interest expense over the course of life of the loan.",
"title": ""
},
{
"docid": "2860f12c36966891eb816cce27702fcc",
"text": "You need to report the interest expense, assuming the loans were for your business: You need to report interest expense (only interest, principle is not an expense just as the loan proceeds are not income). The interest expense goes to the appropriate line on your Schedule C or E (depending on whether you used the loan for the online business or the rental). People whom you borrowed from must also report the interest as income to them on their Schedule B. You cannot deduct the interest expense if they don't report it as interest income. If you didn't take the loans for your business then the interest is not deductible. You don't need to report anything. People who lent you money still have to report the interest you paid to them as income on Schedule B. If you paid no interest (free loan) or below/above market interest to a related party (family member), then the imputed interest is considered income to them and gift to you. They need to report it on their Schedule B, and depending on amounts - on a gift tax return. For $1K to $10K loans there probably will be no need in gift tax returns, the exemption is for $14K per year per person. If the imputed interest rules may apply to you, better talk to a licensed tax adviser on how to proceed.",
"title": ""
},
{
"docid": "38b1c484d23f6bd6605e7aa55bb6899f",
"text": "Interest payments You can make loans to people and collect interest.",
"title": ""
},
{
"docid": "f8e65433179d144a0fa508ebc7a70957",
"text": "Two points You don't really get the full 10,000 annual interest as tax free income. Well you do, but you would have gotten a substantial amount of that anyway as the standard deduction. ...From the IRS.... Standard deduction The standard deduction for married couples filing a joint return is at $11,900 for 2012. The standard deduction for single individuals and married couples filing separate returns is $5,950 for 2012. The standard deduction for heads of household increases by $50 to $8,700 for 2012. so If you were married it wouldn't even make sense to claim the 10,000 mortgage interest deduction as the standard one is larger. It can make sense to do what you are talking about, but ultimately you have to decide what the effective interest rate on your mortgage is and if you can afford it. For instance. I might have a 5% mortgage. If I am in a 20% tax bracket it effectively is a 4% mortgage to me. Even though I am saving tax money I am still paying effectively 4%. Ultimately the variables are too complex to generalize any hard and fast rules, but it often times does make sense. (You should also be aware that there has been some talk of eliminating or phasing out the mortgage interest deduction as a way to close the deficit and reduce the debt.)",
"title": ""
},
{
"docid": "2ce7e28b25577b3d9f1a49cc54eb5a84",
"text": "Think about how loans work for you personally. When you charge a $50 dinner for two to your Visa card, you did not earn $50 in income. You did not pay income tax on that $50. The money you use to pay back that $50 at the end of the month is not tax deductible. Interest on a loan is a business expense. Repayment of principal is not a business expense, just as receiving the loan in the first place is not business income. Effectively this means the LLC repays the loan with after-tax dollars. Just like you do with your Visa card. When I do corporate accounting, payment of loan interest shows up on the expense side of the Profit/Loss statement, and it makes the Balance Sheet net assets go down. However payment of loan principal is effectively null. It doesn't appear on the Profit/Loss at all -- and it's a wash on the Balance Sheet, as both Assets and Liabilities fall by the same amount.",
"title": ""
},
{
"docid": "6182d56afcf0b5a8f2439fa618d15295",
"text": "\"A loan is not a taxable income. Neither is a gift. Loans are repaid with interest. The interest is taxable income to the lender, and may or may not be deductible to the borrower, depending on how the loan proceeds were used. Gifts are taxable to the donor (the person giving the gift) under the gift tax, they're not a taxable income to the recipient. Some gifts are exempt or excluded from gift tax (there's the annual exemption limit, lifetime exclusion which is correlated to the estate tax, various specific purpose gifts or transfers between spouses are exempt in general). If you trade for something of equal value, is that considered income? Yes. Sale proceeds are taxable income, however your basis in the item sold is deductible from it. If you borrow a small amount of money for a short time, is that considered income? See above. Loan proceeds are not income. does the friend have to pay taxes when they get back their $10? No, repayment of the loan is not taxable income. Interest on it is. Do you have to pay taxes if you are paid back in a different format than originally paid? Form of payment doesn't matter. Barter trade doesn't affect the tax liability. The friend sold you lunches and you paid for them. The friend can deduct the cost of the lunches from the proceeds. What's left - is taxable income. Everything is translated to the functional currency at the fair market value at the time of the trade. you are required to pay taxes on the gross amount Very rarely taxes apply to gross income. Definitely not the US Federal Income taxes for individuals. An example of an exception would be the California LLC taxes. The State of California taxes LLCs under its jurisdiction on gross proceeds, regardless of the actual net income. This is very uncommon. However, the IRC (the US Federal Tax Code) is basically \"\"everything is taxable except what's not\"\", and the cost of generating income is one of the \"\"what's not\"\". That is why you can deduct the basis of the asset from your gross proceeds when you sell stuff and only pay taxes on the net difference.\"",
"title": ""
},
{
"docid": "2e92dac5806716153cdccea6b4a15c79",
"text": "I would consult a tax professional for specific help. On my own research, I believe that you could. I know that when I made payments when I was in school for my undergraduate, I made payments on the interest. I believe that I was even told by my financial aid office that I could deduct the interest that I paid. I made not much money so I wasn't anywhere close to the MAGI >75k, but I believe you still could. Not only that but one other thing to consider is that if you have an unsubisidized loan, the interest still accrues when you are in school. In that case, it might be better to make at least some payments. It would save you from the total loan amount ballooning so much while you are in school.",
"title": ""
},
{
"docid": "d6c3643ca3542cc5de3c2eccae8c6fa4",
"text": "I would not advise this for two reasons: Your point that the investment could be lower at the end of the 3 years is a concern, although with a safe investment, it is less so, but this reduces the potential gain. While your interest is not gaining interest, your interest charged is based on the principal. If you pay off the loans, you reduce the principal and therefore you pay less interest in the long run, even if the interest isn't capitalized. All that this means is that you are basically being charged simple interest as opposed to compounding interest, but reducing the principal helps in either case. You are mistaken about the benefits of the tax deduction. You reduce your tax bill by the marginal rate times the student loan interest you paid for the year. So if you are in the 15% tax bracket and paid $100 in interest, you save $15. This is not a reason to keep the loans (because you have to pay $100 to get $15), but you are mistaken on the benefit, it has nothing to do with shifting the tax brackets. Also, speaking of taxes, don't forget that you pay taxes on investment gains.",
"title": ""
},
{
"docid": "5d7ecf7c5d091ee8984b5ed7a27e6fa4",
"text": "So, child, your goal is to make money? This is usually achieved by selling goods (say, lemonade) at a price that exceeds their cost (say, sugar, water and, well, lemons). Options, at first, are very much same in that you can buy the right to engage in a specific future trade. You make money in this situation if the eventual returns from the scheduled trade cover the cost of purchasing the option. Otherwise you can simply opt out of the trade -- you purchased the right to trade, after all, not any type of obligation. Makes sense? Good. Because what follows is what makes options a little different. That is, if you sell that same right to engage in a specific trade the situation is seemingly reversed: you lock in your return at the outset, but the costs aren't fully realized until the trade is either consumed or declined by the owner of the option. And keep in mind that it is always the owner of the option who is in the driver's seat; they may sell the option, hold on to it and do nothing, or use it to engage in the anticipated trade. And that's really all there's to it.",
"title": ""
}
] |
fiqa
|
3af70c5557c2aabad0773bc62a0c1e3f
|
Why are American Express cards are not as popular as Visa or MasterCard?
|
[
{
"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": "c00974a2d361c559387d6566f32651b0",
"text": "\"American Express was originally a mail business that moved into money-orders. Traditionally their cards have been charge cards instead of a credit card (though they have credit products now as well). They've been marketed specifically as a \"\"premium\"\" product for people who have a significant amount of money (and are willing to pay a significant fee for premium services such as AmEx's good airline miles). As such, Visa and MasterCard are more widespread. Additionally, the fees that Visa and MasterCard charge merchants are typically lower (Wikipedia says 2%, as compared to AmEx's 2.5%, at least in the US). So: American Express gets less business as a company, but they charge higher fees to make up for it. Merchants will only accept the higher fees when they want to serve people who have a lot of money to spend (or if they can negotiate a discount).\"",
"title": ""
},
{
"docid": "22a1be4fe209a2fd1ecad737d0d6f717",
"text": "\"I have a merchant account and accept Visa, Mastercard, and Discover but not AMEX. I don't take AMEX because they want me to go through another approval process (on top of what was required to get merchant status) and their fees are a percent or two higher than the other cards. This doesn't sound like a lot - but for a business that grosses $1M per year, an extra 2 percentage points is $20K. I don't gross $1M, but the additional cost for me to take AMEX would still use the word \"\"thousand\"\" and I don't see any reason to jump through extra hoops and fill out more forms for the privilege of giving extra money away. I haven't found anyone yet who wanted to pay me with AMEX who can't pay me with another card or a check instead.\"",
"title": ""
},
{
"docid": "980123d8da7cef03e7dd8c49a9b7197d",
"text": "My experience is in the United States only. In the past, American Express marketed its products as more exclusive and prestigious than other cards. There was an attempt to give the impression that cardholders were more qualified financially. In return, fees were higher both to merchants and to cardholders. At the time (early 1990's), it was not common to use credit cards for small purchases, such as groceries or fast food. Credit cards were used for larger purchases such as jewelry or electronics or dinner in a nicer restaurant. Once it became popular to use credit cards for everyday purchases, the demand for customers using credit cards changed to the highest number of people instead of people of higher status. At that point, Visa (and to a lesser extent Mastercard) transaction volume increased dramatically. Merchants needed the largest number of customers with cards, not the most financially stable. As Visa volume grew, and people started using Visa for small purchases, the use of American Express decreased as their habits changed (once someone got used to pulling out Visa, they did it in every situation). Merchants are less willing to go through the extra hassle of accepting cards that are used by fewer people. Over time, I suspect this process led to the gap between Visa and American Express. As a merchant, in order to accept credit cards, you have to set up a bank account and maintain a merchant account. Accepting Visa, MC and Discover can all be done through one account, but American Express has traditionally required a separate relationship, as well as its own set of rules and fees that were generally higher. Since there are relatively few American Express cardholders compared to Visa, there is doubt about whether it is worth it accept the card. It depends upon the customer base. Fine restaurants still generally accept American Express.",
"title": ""
}
] |
[
{
"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": "22259b6d72da91a9fe3224dbeb616a0b",
"text": "Just to make this a little less vauge, I will base everything on the Mercedes Benz American Express (MB AMEX) card, which is the closest to a $100 annual fee I found on American Express's website. The benefits of a card with an annual fee generally are worth the cost if (and only if) you spend enough money on the card, and avoid paying interest to offset the benefit. Using the MB AMEX card as a reference, it offers 5X points for Mercedes Benz purchases, 3X points at gas stations, 2X points at restaurants, and 1X points everywhere else. Even if we only make purchases at the 1X rate, it only takes charging $10,000 to the card in a year in order to make up the difference. Not too hard to do on a card someone uses as their main method of payment. Every dollar spent at the higher rates only makes that easier. There are a number of other benefits as well. After spending $5,000 on the card in a year, you receive a $500 gift card towards the purchase of a Mercedes Benz car. For anyone on the market for a Mercedes Benz, the card pays for itself multiple times with just this benefit.",
"title": ""
},
{
"docid": "9b266e4a1a7e3770699243362ffe6040",
"text": "If you read the fine print in the Pricing & Terms section of that card, you'll see: By becoming a Visa Business Card cardmember, you agree that the card is being used only for business purposes and that the card is being issued to a public or private company including a sole proprietor or employees or contractors of an organization. So that card is a Chase-branded Visa card, and should be accepted anywhere other Visa cards are. Credit cards are normally either MasterCard or Visa, although many of them make that rather inconspicuous. The only major exceptions I know of are American Express and Discover. (And store cards that are only good at one particular store.)",
"title": ""
},
{
"docid": "bb0e3e99c7cda972e38413ba3620e23d",
"text": "\"There are hidden costs to using rewards cards for everything. The credit card company charges fees to the merchant every time you make a purchase. These fees are a small amount per transaction, plus a portion of the transaction amount. These fees are higher for rewards cards. (For example, the fees might be 35 cents for a PIN-transaction on a debit card, or 35 cents plus 2 percent for an ordinary credit card or signature transaction on a debit card, or 35 cents plus 3.5 percent on a rewards card.) After considering all of their expenses, merchant profit margins are often quite small. To make the same amount of profit by serving a rewards-card customer as a cash customer, the merchant needs to sell higher profit-margin items and/or more items to the rewards-card customer. People who \"\"pay with plastic\"\" tend to spend more than people who \"\"pay with cash\"\". If you pay with a rewards card, will you spend even more?\"",
"title": ""
},
{
"docid": "ef4425720fc7d104b359eb30f87b432a",
"text": "In Canada, there are many stores that take debit (Interac) but don't take Visa or MasterCard. For example, a corner store. In the US the reverse is often true: every tiny place seems to take Visa or MasterCard, but not debit. A Visa debit card looks like a Visa card to the merchant. It therefore has the benefit of being usable at places that only take Visa. (Substitute MasterCard as necessary.) This benefit is very small in Canada, less so elsewhere. Meanwhile the money is actually coming out of your bank account just like a debit card, which therefore has the benefit that you're not borrowing money, can't accidentally overspend, and run no risk of incurring interest charges. It is also a way to get what appears to be a credit card when you can't qualify for credit. If you do the majority of your spending in Canada, you don't need a Visa or MasterCard debit card. Your regular debit card (Interac) will work fine for you. If you have a credit card anyway (from another bank or whatever) then again, you don't need a debit card that can pretend to be a credit card.",
"title": ""
},
{
"docid": "0f2840a9a87b9e94321c55c5533ece66",
"text": "Your question is based on a false premise. Debit cards are more popular in the US than credit cards are. Indeed it seems to be the non-US part of the world that is big in credit cards. See here for example",
"title": ""
},
{
"docid": "81df40145417627c24bdc2cd2b333f13",
"text": "I once called Amex to cancel a card with an annual fee. Instead, they were able to give me a different card with no fee. They were happy to do it. Of course, Amex has fantastic customer service, while Capital One is not known for it. But, its worth a five minute call, and you will retain your good score.",
"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": "dda027e4c7ce9e11a7a5ef7dee1ae84a",
"text": "Kroger is the largest grocery chain in the U.S. and generally not seen as 'expensive'. Unless you are going to Aldi or Save-A-Lot, I don't think you are going to find anything 'lower priced'. You do know you don't have to provide real information when signing up for those cards, right? That's basically a non-issue.",
"title": ""
},
{
"docid": "59c059e2ba0fce0f151b8282b6b3615a",
"text": "It is not only merchants that charge for credit card purchases but also service providers. Have you looked at your phone bill lately and even your Council Rates. Most of them charge a small %, usually about 1% on Matercard and Visa, and closer to 2% on Diners, Amex and American Express cards. However, the merchants and service providers that do charge a fee for credit card use, must also provide alternative ways of paying to their customers, so that the customer has the choice to either pay or avoid paying this fee.",
"title": ""
},
{
"docid": "1d0e3cb5d03fee6a794f1471c18fe1e8",
"text": "Visa and Mastercard are not consumer-oriented companies. They do not consider individual consumers as their direct clients, and do not sell directly to them. Instead, their clients are financial institutions who participate in their networks (which is what they're selling). The institutions target the individual consumers (merchants and credit card holders). American Express, for example, has a different business model. AX doesn't only sell network services to financial institutions, but also services to individual consumers. You can get a AX credit card/merchant account directly with AX, or through their client bank.",
"title": ""
},
{
"docid": "58798764a5f701a63768787f72841c06",
"text": "Chip and Pin cards are popular in Europe, however in the US we don't have them. Visa/MC and Amex can issue chip and pin cards but no merchants or machines are set up here to take them. Only certain countries in Europe use them and since you could possibly have a US visitor or a non-chip and pin person using your machine or eating at your restaurant they usually allow you to sign or just omit the pin if the card doesn't have a chip. It is definitely less secure, but the entire credit card industry in the US is running right now without it, so I don't think the major credit card companies care too much (they just pass the fraud on to the merchants anyway).",
"title": ""
},
{
"docid": "44af6e62a7fd75f9cf9513658df55b90",
"text": "Trick question dude. Can't be done. Sorry to tell you. I've been hit with this. Credit card companies do not make money on these customers. Why does Amex have an annual fee on all cards and an abnormally large transaction fee for merchants? Because they don't allow you to carry a balance (On traditional cards). Meaning they don't make money on interest, like the customers in question here.",
"title": ""
},
{
"docid": "85667121b3846596f582b1f99bfb2b23",
"text": "\"At least in the US, one reason could be the \"\"liability shift\"\" that encourages adoption of chipped and contactless cards by shifting the fraud liability to the party that caused the transaction to not use chip-and-PIN / contactless payment: either the merchant (by not having a new compatible terminal) or the card issuer (by not providing the customer with a compatible card). This means the issuers will try to replace old, magnetic-only cards as soon as possible once adoption of the liability shift is certain. http://usa.visa.com/download/merchants/bulletin-us-participation-liability-shift-080911.pdf\"",
"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": ""
}
] |
fiqa
|
eb9c47c070f60b897b0dd30c02179c7b
|
Does Tennessee have anything like a principal residence exemption?
|
[
{
"docid": "ac1b97ec9cf01ad9806026a42d373e8d",
"text": "\"There's no homestead property tax exemption in TN. According to the TN comptroller site: Exemptions Exemptions are available for religious, charitable, scientific, and nonprofit educational uses, governmental property, and cemeteries. Most nongovernmental exemptions require a one-time application and approval by the State Board of Equalization (615/401-7883) and there is a May 20 application deadline. There is no \"\"homestead\"\" exemption, but low income elderly and disabled persons and disabled veterans may qualify for a rebate of taxes on a specified portion of the value of property used as their residence. Business inventories held for sale or exchange by merchants subject to the business gross receipts tax, are not assessable. Farm and residential tangible personal property are not assessable.\"",
"title": ""
}
] |
[
{
"docid": "7aab38b3269000319e156bc95984f607",
"text": "http://www.irs.gov/publications/p936/ar02.html#en_US_2010_publink1000229891 If you still own it, you get to deduct all of it. In my taxes I did online with TaxAct, it asked if I lived there or not and it just mattered which form it filed for me. With having tenants it was a 'business' form and I assume it would be a standard schedule A for personal. Either way the deductions are still mine to take.",
"title": ""
},
{
"docid": "90b272b16d3db982961db359ed6ecedc",
"text": "Very simple. If it wasn't rented, it's deductible as a schedule A home mortgage interest. If it was rented, you go into Schedule E land, still a deduction along with any/every expense incurred.",
"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": "1cc573e29b794b2fb46d931192a4dacb",
"text": "It's rare that you'd start to itemize before you have a house and the property tax and mortgage interest that brings. If your state has an income tax, that's first, but then you'll usually need far more in deductions to be over that standard deduction.",
"title": ""
},
{
"docid": "3519245e2bbed46d3af790588ad319f8",
"text": "There are a few loan programs that grant exceptions to bankruptcy requirements in the event of extenuating circumstances that can be proven to be outside of your control (i.e. massive medical bills that you used bankruptcy to settle, etc.) however, in order to make the case for this exemption, you would need to make a strong case for your solvency, shown the ability to re-establish your credit reputation since the discharge of your bankruptcy, and would almost certainly have to go through a bank that offers manual underwriting. Additionally, if you are Native American, the HUD-184 program is a great option for your situation as it allows for a wide latitude in terms of underwriter discretion and is always manually underwritten as there is no automated underwriting system developed for the loan program. There are several great lenders that offer nationwide financing (as long as you're in a HUD-184 eligible area) and would be a great potential solution if you meet the qualifying parameter of being Native American.",
"title": ""
},
{
"docid": "896be0b7de9735410139e90a43cb3306",
"text": "\"As an investment opportunity: NO. As a friendly assist with money you don't mind ever getting back, legal depending on amount. A few years back I was in the housing market myself and researching interest rates and mortgages. For one property I was very interested in, I would need about $4K extra in liquid cash to complete the down-payment. A pair of options I saw were a \"\"combo loan\"\" 15yr 4% interest for the house, 1yr 8% interest for the $4K. Alternately, the \"\"bank of mom and dad\"\" could offer the 4K loan for a much lower rate. The giftable limit where reporting is not required was $12,000 at the time I did the review. IRS requires personal loans to be counted as having interest at the commercial rate. Thus an interest free loan of $10K with commercial interest rate of 1% (for easy math) would be counted as a gift of $10,100 for that calendar year. Disclaimer: Ultimately, I did not use this approach and did not have it subjected to a legal review.\"",
"title": ""
},
{
"docid": "da160fffe8072dca28be2c03e430316a",
"text": "There's virtually no way for a person to completely avoid taxation at some point in their lives. Between payroll, sales, excise, and the like, you've been taxed at some point. And whether or not the individual paid is irrelevant to the ownership claim being invalid.",
"title": ""
},
{
"docid": "28d9aa347dd6586e63001086f0a889da",
"text": "California is very aggressive when it comes to determining residency. While you have a legitimate defense, I suggest talking with a California-licensed CPA or EA practicing in California, which are experienced in dealing with the FTB residency audits.",
"title": ""
},
{
"docid": "a469fc5f2eb59808ad0a45d0d839b03e",
"text": "Yes, all the house footage is treated the same. The use of home is a (suspected) audit trigger, so do consult with a tax professional if you want to take this deduction. From the statute (IRC Sec. 280A): The term dwelling unit includes a house, apartment, condominium, mobile home, boat, or similar property, and all structures or other property appurtenant to such dwelling unit.",
"title": ""
},
{
"docid": "65bc5338bad575f4bc0169ee47ffdffd",
"text": "The IRS demands and expects to be paid tax on all taxable activity, including illegal activity. If they expect drug dealers, hit men, and smugglers to pay tax, they expect you to pay tax on your basement apartment. The flip side of this is that the IRS keeps reported tax activities confidential. They only share what is required (for example, your taxable income with your state). You can read the details in their disclosure laws. Deductions will work just as they would if your apartment was perfectly legal. In the eyes of the IRS, whether your income is legal or not is none of their business. They care only about whether it is being taxed appropriately. They will not share any information with your zoning authority without a court order.",
"title": ""
},
{
"docid": "551089afd5fcc946ab27a41a8ff485df",
"text": "You need an accountant and/or a lawyer who is familiar with the US tax code and the rules in South Korea (assuming from your tag). As the interest will be money generated in the US, you could be required to withhold some of the interest and remit it to the IRS (I believe 30% withholding rate). Since South Korea is a treaty country, your friend can complete and sign a form W8-BEN and give it to you, so you may withhold a lower amount. Your friend would need to file a return if too much was withheld. They may also get taxed in South Korea. There are probably rules in South Korea about minimum interest that must be charged, similar to Applicable Federal Rates for the US, so check with your accountant or lawyer for this. If you craft it correctly, you will be able to have a loan as a mortgage (with the house properly secured), which then would allow you to deduct mortgage interest rates from your return. As far as I am aware, there is no maximum amount for loans.",
"title": ""
},
{
"docid": "8ba0fc654895d48fb795dea7fe3b64af",
"text": "Yes, use a separate Form 8829 for each home used for business during the year. The top of 8829 includes that exact instruction.",
"title": ""
},
{
"docid": "6d70f2cae68608a83cef66fb85788404",
"text": "@Pete B.'s answer is good, but there's an important note to consider for tax purposes. It's too large for a comment, so I'm adding it as an answer. And that is: you cannot claim the property as a rental property under certain conditions. This affects things like claiming mortgage interest (which you don't have), and depreciation in value (which a rental is allowed). See IRS topic 415 for details, but I've included an important excerpt below with emphasis added: If you rent a dwelling unit to others that you also use as a residence, limitations may apply to the rental expenses you can deduct. You're considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for more than the greater of: ... A day of personal use of a dwelling unit is any day that it's used by: Talk to a tax accountant to better understand the ramifications of this, but it's worth noting that you can't just rent it to her for a paltry sum and be able to take tax advantages from this arrangement.",
"title": ""
},
{
"docid": "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": "ee21749916f89670ecfa90cfb2e9c360",
"text": "\"While the question is very localized, I'll answer about the general principle. My main question is with how far away it is (over 1000 miles), how do I quantify the travel expenses? Generally, \"\"necessary and ordinary\"\" expenses are deductible. This is true for business and also true for rentals. But what is necessary and what is ordinary? Is it ordinary that a landlord will manage the property 1000 miles away by himself on a daily basis? Is it ordinary for people to drive 1000 miles every week? I'd say \"\"no\"\" to both. I'd say it would be cheaper for you to hire a local property manager, thus the travel expense would not be necessary. I would say it would be cheaper to fly (although I don't know if its true to the specific situation of the OP, but as I said - its too localized to deal with) rather than drive from Texas to Colorado. If the OP thinks that driving a thousand miles is indeed ordinary and necessary he'll have to justify it to the IRS examiner, as I'm sure it will be examined. 2 trips to the property a year will be a nearly 100% write-off (2000 miles, hotels, etc). From what I understood (and that is what I've been told by my CPA), IRS generally allows 1 (one) trip per year per property. If there's an exceptional situation - be prepared to justify it. Also, keep all the receipts (like gas, hotel, etc.... If you claim mileage but in reality you took a flight - you'll get hit hard by the IRS when audited). Also while I'm up there am I allowed to mix business with pleasure? You cannot deduct personal (\"\"pleasure\"\") expenses, at all. If the trip is mainly business, but you go out at the evening instead of staying at the hotel - that's fine. But if the trip is \"\"business\"\" trip where you spend a couple of hours at your property and then go around having fun for two days - the whole trip may be disallowed. If there's a reasonable portion dedicated to your business/rental, and the rest is pleasure - you'll have to split some of the costs and only deduct the portion attributed to the business activities. You'll have to analyze your specific situation, and see where it falls. Don't stretch the limits too much, it will cost you more on the long run after all the audits and penalties. Can I also write off all travel involved in the purchase of the property? Although, again, the \"\"necessary and ordinary\"\" justification of such a trip is arguable, lets assume it is necessary and ordinary and generally justified. It is reasonable to expect you to go and see the property with your own eyes before the closing (IMHO, of course, I'm not an authority). Such an expense can be either business or investment expense. If its a business expense - its deductible on schedule C. If its an investment expense (if you do buy the property), its added to the cost of the property (capitalized). I'm not a tax adviser or a tax professional, and this is not a tax advice. This answer was not written or intended to be used, and cannot be used, for the purpose of avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code. You should seek a professional consultation with a CPA/Attorney(tax) licensed in your State(s) or a Federally licensed Enrolled Agent (EA).\"",
"title": ""
}
] |
fiqa
|
7efa5332535ee5ba82262394e1bd04e0
|
Currently sole owner of a property. My girlfriend is looking to move in with me and is offering to pay 'rent'. Am I at risk here?
|
[
{
"docid": "6786bc955c5dbae56ff2fd03047f65da",
"text": "\"The rent payment is in principle taxable. However, you should be able to take advantage of the \"\"rent a room\"\" scheme, and the proposed rent falls well under the £7,500/year tax threshold for that. So no tax will be actually payable and you don't have to formally declare it as long as you stay below that threshold. You should also be fairly well legally protected in case you do split up in future and you want to remove her. As you would be living there too, she would just be a lodger, not a tenant (technically, an \"\"excluded occupier\"\"). If you did want her to leave you would only need to give reasonable notice and wouldn't need a formal court order if you needed to force her to go. As JBentley points out, there have been court cases where domestic partners contributing to household expenses while the other partner paid the mortgage have later been able to claim that this implied joint ownership. This was on the basis of a \"\"constructive trust\"\" being implicitly setup by the way they arranged their finances. In your case, if there's a clear intention, formalised in writing, for the money to be treated as rent rather than a contribution towards purchasing the property, I think it should make it very hard to claim the contrary later. I would also suggest you be clear about whether the rent includes a share of the utility bills, and that things like groceries would be handled separately and split 50:50 or whatever. As pointed out in a comment, there are template agreements for lodgers you could use a starting point (e.g. this one), but it's likely you'd need to customise it to your circumstances. Another point made in another answer is that there's potential upcoming legislation to give some rights to cohabiting partners. In the current draft, those would kick in after three years or having children. If the bill does come into effect, you'd also be able to sign an opt out, but only after getting legal advice, and it would still be possible (though presumably hard) to persuade a court to overturn an opt out. Overall that does create a small risk to you, but not one that comes directly from your girlfriend paying rent. It's likely that if you are both on an equal financial footing and had always kept your finances separate, that there wouldn't be any award made anyway. And you can't run your entire life on hypothetical risks.\"",
"title": ""
},
{
"docid": "533849b422ef3b33e57bd133c162eba5",
"text": "\"With regard to worries about ownership: I'll point you towards this - The Cohabitants Rights Bill currently in First Reading at the House of Lords. Without a date for even the second reading yet. In short the Bill is attempting to redress is the lack of rights when a non-married relationship ends when compared to married relationships; that is that one of the \"\"cohabitants\"\" can end up with basically nothing that they don't have their name on. So currently you're in the clear and (Part 2) Section 6.2.a says the Bill cannot be used retroactively against you if your relationship is over before it becomes law (I expect with Brexit etc, this Bill isn't a high priority - it's been a year since the first reading). Section 6.2.a: This Part does not apply to former cohabitants where the former cohabitants have ceased living together as a couple before the commencement date; However, if you're still together if/when this Bill becomes Law then basically all of (Part 1) Section 2 may be relevant as it notes the conditions you will fall into this bill: Section 2.1.a: live together as a couple and Section 2.2.d: have lived together as a couple for a continuous period of three years or more. and the \"\"have lived together\"\" at that point counts from the start of your cohabitation, not the start of the Bill being law: Section 2.4.a: For the purposes of subsection (2)(d), in determining the length of the continuous period during which two people have lived together as a couple - any period of the relationship that fell before the commencement date (of the Bill) is to be taken into account If you have kids at some point, you'd also fall under 2.2.a through 2.2.c too. After that, the financial parity decided upon by the court depends on a whole bunch of conditions as outlined in the Bill, but Section 8.1.b is pretty clear: Section 8.1.b: (b)the court is satisfied either— (i)that the respondent has retained a benefit; or (ii)40that the applicant has an economic disadvantage, as a result of qualifying contributions the applicant has made I'm not qualified to say whether your partner helping to pay off your mortgage in lieu of paying rent herself would count as just paying rent or giving you an economic benefit. Sections 12, 13, and 14 discuss opt-outs, also worth a read. The a major disclaimer here in that Bills at this early stage have the potential to be modified, scrapped and/or replaced making this info incorrect. As an additional read, here's an FT article from Feb 2016 discussing this lack of rights of a cohabitant which should alleviate any current concerns.\"",
"title": ""
},
{
"docid": "ae78b765445388e78ff43a789df3076b",
"text": "\"Disclaimer: I am a law student, not a lawyer, and don't claim to have a legal opinion one way or another. My answer is intended to provide a few potentially relevant examples from case law in order to make the point that you should be cautious (and seek proper advice if you think that caution is warranted). Nor am I claiming that the facts in these cases are the same as yours; merely that they highlight the flexible approach that the courts take in such cases, and the fact that this area of law is complicated. I don't think it is sensible to just assume that there is no way that your girlfriend could acquire property rights as a rent paying tenant if arranged on an informal basis with no evidence of the intention of the arrangement. One of the answers mentions a bill which is intended to give non-married partners more rights than they have presently. But the existence of that bill doesn't prove the absence of any existing law, it merely suggests a possible legal position that might exist in the future. A worst-case assumption should also be made here, since you're considering the possibility of what can go wrong. So let's say for the sake of the argument that you have a horrible break up and your girlfriend is willing to be dishonest about what the intentions were regarding the flat (e.g. will claim that she understood the arrangement to be that she would acquire ownership rights in exchange for paying two thirds of the monthly mortgage repayment). Grant v Edwards [1986] Ch 638 - Defendant had property in the name of himself and his brother. Claimant paid nothing towards the purchase price or towards mortgage payments, but paid various outgoings and expenses. The court found a constructive trust in favor of the claimant, who received a 50% beneficial interest in the property. Abbot v Abbot [2007] UKPC 53, [2008] 1 FLR 1451 - Defendant's mother gifted land to a couple with the intention that it be used as a matrimonial home. However it was only put into the defendant's name. The mortgage was paid from a joint account. The claimant was awarded a 50% share. Thompson v Hurst [2012] EWCA Civ 1752, [2014] 1 FLR 238 - Defendant was a council tenant. Later, she formed a relationship with the claimant. They subsequently decided to buy the house from the council, but it was done in the defendant's name. The defendant had paid all the rent while a tenant, and all the mortgage payments while an owner, as well as all utility bills. The claimant sometimes contributed towards the council tax and varying amounts towards general household expenses (housekeeping, children, etc.). During some periods he paid nothing at all, and at other times he did work around the house. Claimant awarded 10% ownership. Aspden v Elvy [2012] EWHC 1387 (Ch), [2012] 2 FCR 435 - The defendant purchased a property in her sole name 10 years after the couple had separated. The claimant helped her convert the property into a house. He did much of the manual work himself, lent his machinery, and contributed financially to the costs. He was awarded a 25% share. Leeds Building Society v York [2015] EWCA Civ 72, [2015] HLR 26 (p 532) - Miss York and Mr York had a dysfunctional and abusive relationship and lived together from 1976 until his death in 2009. In 1983 Mr York bought a house with a mortgage. He paid the monthly mortgage repayments and other outgoings. At varous times Miss York contributed her earnings towards household expenses, but the judge held that this did \"\"not amount to much\"\" over the 33 year period, albeit it had helped Mr York being able to afford the purchase in the first place. She also cooked all the family meals and cared for the daughter. She was awarded a 25% share. Conclusion: Don't make assumptions, consider posting a question on https://law.stackexchange.com/ , consider legal advice, and consider having a formal contract in place which states the exact intentions of the parties. It is a general principle of these kinds of cases that the parties need to have intended for the person lacking legal title to acquire a beneficial interest, and proof to the contrary should make such a claim likely to fail. Alternatively, decide that the risk is low and that it's not worth worrying about. But make a considered decision either way.\"",
"title": ""
},
{
"docid": "92e9ecee4cfbe3d7f5e2c7f590b1635b",
"text": "\"Edit #2 My whole answer was based on my misunderstanding that you were renting out a totally separate property to your girl friend. I finally understand now that you're renting out a room in YOUR apartment flat to your gf. So, based on my new understanding, I don't think it's necessarily a bad idea. The answer below is my answer to a different question ;) Original Answer My answer has nothing to do with business, but is totally relationship based. If you care about her in a \"\"we might be together a long time\"\" way, then I wouldn't do this. I don't care what arrangements you setup before hand, at some point, you're bound to feel like she owes you something at some point. Let alone the easiest of situations to imagine (she's late on the rent, she loses her job and can't pay, etc) you'll be forced to make decisions about how much your desire to love and care for her outweighs your need to pay your mortgage. You can argue how magnanimous your are all day long, but is this something you want to bring into your relationship? Now, if you don't really care to stay with her that long and you could do life with or without her, then go for it. I think the big question is, is your relationship worth £200? Edit In the interest of supporting my opinion, here are a few articles I found on the subject: Unfortunately, the way renting to friends or family often works out is far from what would be expected between people who care about one another. For the most part, friends and family members will actually make bad renters, because they’ll expect more from you than a tenant who doesn’t know you. You may get a lot of requests for maintenance and repairs, even for minor things, and you may also find that family members and friends think they should be entitled to perks because of your personal relationship with them. When they don’t get special treatment, they can get angry with you, and that hurts both your professional relationship and your personal relationship. American Apartment Owners Association \"\"In my experience, landlords renting to relatives doesn't work out perfectly,\"\" said Ceyhun Doker, a REALTOR® associate at Keller Williams Realty in Burlingame, CA. \"\"When you don't know each other, there are fewer problems.\"\" realator.com\"",
"title": ""
},
{
"docid": "d1ff3cee0decc25182c465a797af4a69",
"text": "\"If you are living together 'casually' (no formal partnership agreement) then my option would be to ask her politely to as she has offered make a contribution by buying the groceries or some such which you share. A 'voluntary contribution' not an enforceable one. Just as between flat mates where only one is the actual tenant of the flat but the tenancy allows 'sharing' . Check your tenancy allows you to share lodgings. PS An old Scots saying is \"\"never do business with close family\"\". I.e do not charge your wife or living in partner rent. It mixes emotional domestic life with a formal business life which can set feuds going in case of a break up or dispute. If you enter into child bearing relationship or parent hood or formal partnership or marriage then all this changes at some time in the future.\"",
"title": ""
},
{
"docid": "77db79bc713af652e61e44c5c4c3506a",
"text": "I have been renting rooms out of my house for over 7 years now. When renting to non-family, the arrangement is usually successful. People leave for various reasons, an occasionally I will ask someone to move out if they are not working out. In the USA, this works well because by keeping things formal (rental agreements, etc) you actually have a great business with lots of deductions that end up reducing you net income quite a bit. However, US law makes a big distinction about whether or not you're renting to family/relatives, specifically around whether or not they are paying full-market rent for their room. If not, then you are subsidizing them which could disqualify your property (or at least the portion they are using) from being legitimately rented -- and thus no tax deductions for said activity. The other risk, -- again, in the USA -- is the possibility of a long-term relationship falling under rules of common-law marriage. This is rare unless children are involved. A couple who have children, married or not, may have the courts get involved to oversee the division of assets with regards to ensuring the children have a place to live and adequate financial support. For the UK, I would think the laws would be roughly similar. Check out this website for more a detailed review. https://www.citizensadvice.org.uk/family/living-together-marriage-and-civil-partnership/living-together-and-marriage-legal-differences/",
"title": ""
}
] |
[
{
"docid": "5379e3edcfed336432b98afdd0b7da9e",
"text": "Equity means having ownership, and I think that's a REALLY bad idea in the scenario that you described. If you stay together, there's really no upside to either of you in this scheme. If you break-up then you'll have a terrible mess, especially if the break-up goes badly. If she's really building equity, you're going to be faced with several hard questions: If this went bad at the end, it might be worse than a divorce in some sense since at least in the divorce you have established law to sort out the issues. You'll be on your own here without a formal contract. (Marriage being a special case of a contract for our purposes here.) If she wants to share costs (which seems perfectly fair) then agree to rent and a split on utilities. If you really insist on going down the path that you described, I think that you'll need some sort of contract, which probably involves a lawyer. Anything short of that could not be considered having equity at all and will be completely unenforceable in the event of a bad break-up. (There is some notion of a verbal contract, but that's very hard to prove and subject to misunderstanding and misremembering.) Aside from all of these potential problems in event of a break-up, you would probably also be violating the terms of your mortgage, if you have one. From the bank's perspective, you are selling the property that is the collateral for that loan, which you're almost surely not allowed to do.",
"title": ""
},
{
"docid": "6d70f2cae68608a83cef66fb85788404",
"text": "@Pete B.'s answer is good, but there's an important note to consider for tax purposes. It's too large for a comment, so I'm adding it as an answer. And that is: you cannot claim the property as a rental property under certain conditions. This affects things like claiming mortgage interest (which you don't have), and depreciation in value (which a rental is allowed). See IRS topic 415 for details, but I've included an important excerpt below with emphasis added: If you rent a dwelling unit to others that you also use as a residence, limitations may apply to the rental expenses you can deduct. You're considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for more than the greater of: ... A day of personal use of a dwelling unit is any day that it's used by: Talk to a tax accountant to better understand the ramifications of this, but it's worth noting that you can't just rent it to her for a paltry sum and be able to take tax advantages from this arrangement.",
"title": ""
},
{
"docid": "e358964ef4d8854056def7c4295833a4",
"text": "\"Sheesh, are people kidding here? It's a gift. It's not fraud. Just keep in mind that, because it's a gift, you cannot get it \"\"back\"\" if you break up--you are giving it to her. If you happen to get married at some point in the future, you will then own part of the apartment, but that is a completely separate matter. Give her the money, don't expect it back. Ever.\"",
"title": ""
},
{
"docid": "67fc6e66cbc207b055bcc40eee9d8143",
"text": "\"Expenses: IMO, The best way to deal with this situation is by treating you staying at her house as flatting/renting a room as @Pseudonym stated he does with his partner in the comments of another answer. This means you pay X amount of dollars a week to her as rent which she can most likely choose to put it towards house insurance, interest, repayments, repairs and improvements etc etc. From there you split your \"\"living\"\" expenses 50/50. Living expenses include stuff like telephone, internet, utility bills, food, contents insurance etc. Renting Income: Then the earnings/losses you make from renting your apartment out are yours alone. After all if your place gets trashed by a tenant with a meth lab, she won't and shouldn't have to pay the ridiculous amounts of money required to get it fixed up. Determining the rent to pay: Not Ideal, but an easy method: Use your place's renting value as a indicator/market research example to determine how much rent you would pay to her (however since you are only a half resident at her place you would only pay half). Ideal: Your place would have a different renting value to hers, so do some research together and find a median renting value of her house based on similar houses or ask her how much she wants you to pay in rent since after all the owner of the house has final say on the renting value. You \"\"might\"\" want to consider that you staying with her is a more secure tenancy as she knows you won't wreak her place, but the same cannot be said for the tenant you have in your place. (Post in the comments if you think this last sentence should be removed, I'm on the fence about it but it seems relevant.) Disclaimer: Remember you are considering a long-term relationship with her don't get too picky and don't let it get personal/emotional when deciding the renting amounts.\"",
"title": ""
},
{
"docid": "cdfe549e223d987b50180c7313a44aa3",
"text": "The simplest way to handle this is for you to rent the apartment and sublet to the girlfriend and friend. I'd split the utilities evenly, one-third from each. The reason for this is that each of you contribute evenly to generating the utility bills. It's not like your income makes the water cost more for you. Utilities are driven by usage. Dividing them other than equally is likely to lead to more problems than it solves. Also, it seems unlikely that a different apartment would use significantly different water, electricity, or internet. Those are driven by the appliances rather than the size or location of the apartment. Only pay more for the utilities if you want something that they don't. For example, maybe you want HBO, etc. It would be reasonable for you to pay the entire premium if that's a luxury that they simply wouldn't buy. I'd also divide the groceries evenly if you share and share alike. If you eat separate meals, you can buy separate groceries. If the rent can't be split evenly but you could afford it alone, then you can just sign up for it. If you break up with the girlfriend and/or the friend moves out, you're still fine. You have your fancy apartment and can afford it. The bigger problem comes if you can't afford the apartment without both the girlfriend and friend contributing. If so, you should probably avoid this situation. It's fragile. Any person leaving would put you in a financially untenable position. You can look for a new tenant to replace your friend, but you can't exactly rely on getting a new move-in girlfriend on demand. Neither the girlfriend nor the friend can afford to be on the main lease. In case of emergency or tragedy, they couldn't replace you as a tenant. That's why they should sublet. Then their obligation is to you, not to the landlord. How much apartment would the girlfriend and friend get if you weren't involved? What rents would they pay? That's probably how much rent they should pay for this apartment. You want a better apartment (or a better location)? That's on you. You should only do this if you want to do it. If you want to share apartments with the girlfriend and friend, then do so. Work out something equitable. If you plan on moving in together to reduce your costs, then you don't sound like you are compatible. Obviously there are reasons to move in with the girlfriend aside from costs. Why can't the friend get his or her own place? The added rent probably won't do more than pay for the added room (you could get a one bedroom without the friend). That points to an alternative way of calculating the friend's contribution: the difference between a two bedroom and a one bedroom apartment. That's the additional cost of the bigger apartment. If the friend can't afford that, then this might not be a good idea. Make sure that you can afford the apartment if one or both of the friend and girlfriend move out. You can eventually replace the friend as the tenant but don't rely on doing the same with the girlfriend. Share utilities evenly. Possibly groceries too. The friend should pay at least the added cost of the additional bedroom. Don't expect either to pay more in the new apartment than they would pay without you. You should be the only one on the main lease; sublet to them.",
"title": ""
},
{
"docid": "68922f8b7da11e444b92f686b6ced412",
"text": "Unlike others who have answered the question - I have done this. Here is my experience - your mileage and friendship may vary: I bought a condo years ago with a longtime childhood friend. We did it for all the reasons you mentioned - sick of renting and not building equity, were both young, single professionals who had the money. The market crashed we have both since married and moved on to own other properties with our spouses. Now we rent out the condo as selling in the current market is not doable.. It's not an ideal situation but that is because of the real estate market - not who I bought with. You need to discuss very openly all of the following scenarios, as well as others I can't think of right now I am sure: If you aren't both 100% in sync with these questions then do not do it. I never understand why some people would buy with a girlfriend/boyfriend but not a good personal friend. You're more likely to have a falling out with your significant other then a long time close friend. My advice, have honest, open conversations, about all possible scenarios. If you feel necessary put somethings down into some sort of legal agreement - with us it was not, and still isn't necessary.",
"title": ""
},
{
"docid": "3c0a842e6d4c055a20cee1ebfe6a3b1d",
"text": "\"You're making $100k together per year: you're not in the donut hole, you're in the top 25% of all households, and the top 10% of non-family households (as yours would be). To be blunt, you're not in the \"\"rely on assistance\"\" area: you're in the \"\"save up for your downpayment\"\" sector. My suggestion would be to figure out a way to save more than $200-$400 a month for now. $100k gross income means you have about $8k net income per month; $2k for rent and other necessities means you have $6k per month that you can potentially save. Even half of that - $3k per month - means you have $24000 saved by the end of this year, and $36000 on an annual basis. As far as marriage or domestic partnership - I wouldn't get into one based on whether it helps you afford a home. It might be a good idea because it helps you handle some of the details arising when you have joint property, perhaps, but not solely for the financial aspect. And as far as how much home is realistic? $250k is certainly realistic if you can save up enough for a good down payment. Try to get to the 20-25% range. If you're already halfway there, another year of renting won't kill you, and it will mean no PMI and much better rates. Also consider a 15 year mortgage; we're in the same general income category as you and manage a 15 year on a $250k range house quite nicely. It doesn't add all that much to your monthly payment amount, compared to what you'd expect - particularly since the monthly payment includes property taxes which won't increase based on the length of the mortgage. Now that we have actual numbers from the OP: So, without cutting anything, you have $2k yourself you can be saving. (This assumes your rent number of $1345 is your portion of rent, and not the 100% amount.) That's $24000 per year, just by yourself. On top of that, you've got another $40k or so coming from your partner, at least some of which should be available as well if he/she is going to be co-owning? But if not, at least you have about $2000 a month you can be saving. You could also downsize the car, cut cable TV, downsize the phone, and have another $500 or so available - but it doesn't really look like you need to do that, given how much you have available now. I'd look at what you're doing with that ~$2000 per month right now, and see how you can free most of it up. You haven't mentioned a few things like utilities, not sure if that's just forgetfulness or if your partner is paying them; so perhaps not all of it is available. But - even $1000 a month is $12000 to add to the $20000 you have now, which makes a big dent in that down payment.\"",
"title": ""
},
{
"docid": "419c9242f195bf26a718bf4e307dc73d",
"text": "You are thinking about this very well. With option one, you need to think about the 5 D's in the contract. What happens when one partner becomes disinterested, divorced (break up), does drugs (something illegal), dies or does not agree with decisions. One complication if you buy jointly, and decide to break up/move, on will the other partner be able to refinance? If not the leaving person will probably not be able to finance a new home as the banks are rarely willing to assume multiple mortgage risks for one person. (High income/large down payment not with standing.) I prefer the one person rents option to option one. The trouble with that is that it sounds like you are in better position to be the owner, and she has a higher emotional need to own. If she is really interested in building equity I would recommend a 15 year or shorter mortgage. Building equity in a 30 year is not realistic.",
"title": ""
},
{
"docid": "0c2838624733017e3b4fd0b74a966f5d",
"text": "There is no issue whatsoever, getting a mortgage this way as an unmarried couple. This is very similar to what I did while my wife and I were engaged. We we're on the title as joint tenants. I would expect them to have her as a signee to the mortgage. She won't be able to claim 50% ownership and make things hard on the lender. The title will be contingent on the mortgage being paid. What will be harder is if you guys decide to split. It's not at all uncommon for unmarried couples to buy a house together. Find a broker and get their advice.",
"title": ""
},
{
"docid": "024f190b764183dc722c34c4360e0f90",
"text": "The mortgage and title of the house would be under both your names equally. When I applied for a mortgage with my girlfriend, I was the primary applicant because of my credit score and she was the secondary because of her income (she makes more). When all was said and done, it was explained to us that the mortgage was ours equally and so was the house, and that I didn't hold more ownership than her over either. We were approved quickly and hassle free. This is our first house too. This is in Florida.",
"title": ""
},
{
"docid": "146939b11f6b5588c7c46d9512c63c47",
"text": "what I should think about. If you decide to do this - get everything in writing. Get lease agreements to enforce the business side of the relationship. If they are not comfortable with that much formality, it's probably best not to do it, I'm not saying that you should not do this - but that you need to think about these type of scenarios before committing to a house purchase.",
"title": ""
},
{
"docid": "5a40eee5445e687b0de14606db987a66",
"text": "Well, it sounds like you have two options: 1) Continue to jointly own the house. 2) Compensate her for her equity and get the title transferred. I hate to tell you this, but she is entitled to half of the equity regardless of how much she paid into it. That said, she is still on the hook equally for the loan amount, but it won't do you any good if she is not willing to pay. Also, option 2 probably isn't a good deal for your co-signer as she would still be liable for the entire loan loan (just as you are) regardless of the title.",
"title": ""
},
{
"docid": "8226861e999d5309617e09affbc81fb2",
"text": "\"It's a little unusual, but I don't think the financial terms are completely unreasonable on their face. What you describe is similar to an interest-only loan, where you make payments that only cover the interest due each month, and the entire principal is due as a single \"\"balloon payment\"\" on a specified date (in this case, the date on which the condo is sold). Your monthly payment of $500 on a principal of $115K is equivalent to an annual interest rate of 5.22%, which at least is not completely usurious. With a traditional mortgage you might pay a rate as low as 3%, if you had sufficient income and excellent credit - but I don't know, from what you've said, whether that's the case. Did you make the current arrangement because you were unable to get a loan from a bank? The main difference here is that instead of the balloon payment being a fixed $115K, it's \"\"75% of the gross proceeds of the sale\"\". If the condo eventually sells for $155K, that would be $116,250, so that's slightly advantageous to them (assuming that \"\"gross proceeds\"\" means \"\"before deducting commissions for either the buyers' or sellers' realtors or any other costs of the sale\"\"), and thus slightly disadvantageous to you. If the condo appreciates in value, that's more of a win for them and more of a relative loss for you. But it's also possible that the value of the condo goes down, in which case this arrangement is better for you than a fixed balloon payment. So this deal does prevent you from getting a larger share of any gains in the value of the property, but it also helps insulate you from any losses. That's important to keep in mind. There's also the issue of needing their consent to sell. That's potentially problematic - usually in a joint ownership scheme, either owner has the right to demand to be bought out or to force a sale. I guess it depends on whether you think your parents would be likely to consent under reasonable circumstances, or to insist on holding the property against your best interests. It's true that you aren't building equity with this arrangement, and if you thought you were, you are mistaken or misled. But let's compare it with other options. If you would qualify for a traditional 30-year fixed mortgage at 3%, your monthly payment would be slightly lower ($484), and you would be building some equity because your payments would reduce the principal as well as paying the interest. But a 30-year loan builds equity very slowly at first - after 7 years you'd have only about $20,000 in principal paid down. If we assume that 5.2% represents the interest rate you'd otherwise pay based on your creditworthiness, then your monthly payment would be $631. So compared to that, you have an extra $130 per month that you can save or invest in whatever you want - you're not forced to invest it in your house. Note that in either case you'd still be paying the condo fees, property taxes, insurance, and maintenance yourself. So we might as well eliminate those from consideration. It might be a good idea to find out what other options you would have - perhaps try to get an interest rate quote on a traditional mortgage from a bank, based on your income and credit history. Then you can decide what to do, taking into account: your financial situation; how much of a monthly payment could you afford? your relationship with your parents; are they likely to be reasonable about renegotiating? Do they in general tend to respect your wishes? Would it harm your relationship if you tried to get out of the deal, and how important is that to you? To what extent do you actually want to pay for equity in this property? Do you really believe it's a good investment, and have evidence to support that? Your options include: Try to renegotiate the terms of the loan from your parents Try to \"\"refinance\"\" the loan, by getting a loan from a bank and paying off some agreed-upon amount of principal to your parents Try to force the sale of the condo and move to another house, financing it some other way Consult a lawyer as to whether your agreement with your parents is legally enforceable. For instance, do they have a lien on the property?\"",
"title": ""
},
{
"docid": "13ab27f6adec8293954d5fffd3caaefc",
"text": "Quite a bit as in, $100K+? If you're a sole operator, not sure what constitutes a real likelihood that a risk of liability will materialize, and in need of a lot of up front financing, I am genuinely concerned that you're going to a lay a giant egg on this one. What is it your business is going to be doing? I don't really want to give a free consultation, but I'm worried you're either misunderstanding something or about to make a mistake, and I don't want to see that happen.",
"title": ""
},
{
"docid": "a1b4b169ac98e5ea279f867e2cdeb691",
"text": "No. And just a caution about that super low risk: suppose that you lived during the late 70s and early 80s, when savers in the United States could get interest rates over 10% for savings. You put your money into an account in 1980, knowing that in five years, you'll have made a solid amount of interest. Except that you might have been smarter to convert your money to AUD and save in that currency because it would have moved from 0.88 in value to 1.43 in value (in principal only, not interest - when I look at the RBA's bank interest, it appears they were also paying double digit interest to savers). Now, I get that this may not be the answer that you want to see because it means that if the interest rates were higher in the US, for savers, they might be higher elsewhere too, and it also means that what may appear to be a super low risk could actually be a high risk.",
"title": ""
}
] |
fiqa
|
42a9c6fa3a21a74d28cd8dc4dc7a051a
|
Do credit ratings (by Moody's, S&P, and Fitch) have any relevance?
|
[
{
"docid": "e5c6267801e51aa7a34b7956252680d5",
"text": "They've pretty much shot any credibility they possessed. Follow the money.",
"title": ""
},
{
"docid": "a6acbb37e49c0f1cbf78c1923d813df7",
"text": "\"The problems with ratings and the interpretation of ratings is that they are retrospective, and most people read them as prospective. They basically tell you that debtor is solvent right now. What does that mean? It means that the ratings are based on the audited financial statements of a company, government or other organization issuing debt. So, in the best case scenario where the rating agency is acting properly, they are still dependent on folks with fiduciary responsibility telling the truth. And even if they are telling the \"\"truth\"\", accounting rules make it possible to obscure problems for years in some cases. Municipal goverments are a great example of this... the general obligation bonds cities and even states with deep structural budget problems still get good ratings, because they are solvent and have sufficient operating cash to meet obligations today. But towards the end of a 30-year bond's life, that may not be the case anymore unless they dramatically alter their budgets. At the end of the day, ratings are one aspect of due diligence. They are useful screening devices, but you need to understand who you are lending money to by purchasing bonds and diversify your holdings to protect your wealth. The problem, of course, is when the trustees of your pension fund invests in garbage assets after getting a sales pitch on the beach in Hawaii, then conveniently place all of the blame for that bad investment on the rating agency. You unfortunately have zero control over that.\"",
"title": ""
},
{
"docid": "1479bfc3f23662f17bdf12c0074e13f8",
"text": "\"I like Muro questions! No, I don't think they do. Because for me, as a personal finance investor type just trying to save for retirement, they mean nothing. If I cannot tell what the basic business model of a company is, and how that business model is profitable and makes money, then that is a \"\"no buy\"\" for me. If I do understand it, they I can do some more looking into the stock and company and see if I want to purchase. I buy index funds that are indexes of industries and companies I can understand. I let a fund manager worry about the details, but I get myself in the right ballpark and I use a simple logic test to get there, not the word of a rating agency. If belong in the system as a whole, I could not really say. I could not possibly do the level of accounting research and other investigation that rating agencies do, so even if the business model is sound I might lose an investment because the company is not an ethical one. Again, that is the job of my fund manager to determine. Furthermore and I mitigate that risk by buying indexes instead of individual stock.\"",
"title": ""
}
] |
[
{
"docid": "21bf027dd7d50ab43d1fea90f8798f18",
"text": "\"I used to work for one of the three ratings agencies. Awhile ago. First: There are lots of different ratings. The bulk of ratings are for corporate debt and public finance. So senior debentures (fixed income) and General Obligations e.g. tax-free muni bonds, respectively. Ratings agencies are NOT paid by the investment banks, they are paid by the corporations or city/ state that is issuing debt. The investment banks are the syndicate that pulls the transaction together and brings it to market. For mortgage-backed securities, collateralized debt CDO-CLO's, all of which are fancy structured securitizations, well, that is a different matter! Those transactions are the ones where there is an inappropriately close tie between the investment bankers and ratings agencies. And those were the ratings that blew out and caused problems. Ratings agencies continued to do a decent job with what WAS their traditional business, corporate and municipal bond ratings, as far as I know. What khajja said was 100% correct: S&P's fees were paid by investors, the people who were purchasing the bonds, until about 50 years ago. Around the same time that McGraw-Hill purchased S&P, in 1966, they departed from that model, and started charging the bond issuers for ratings. I don't know if that decision was driven by McGraw-Hill or not, though. One more thing: Not all credit ratings agencies are paid by the issuers. One of the 10 NRSRO's (a designation given by the S.E.C.) is Egan-Jones. Their revenue comes from the investors, bond purchasers, not the companies issuing bonds, unlike the S&P/ Fitch/ Moody's \"\"business model\"\". So there is an alternative, which I consider hopeful and reason not to totally despair. EDIT: What xcrunna19 mentions is also totally accurate. The part about Nouriel Roubini (who is a professor at N.Y.U. or Columbia or such and a sensible though slightly high strung sort) is consistent with my impression. As for whether it would require government action to implement the changes advocated by Roubini, yes, I guess it would, but I don't know if the government would do that. It would be better if the credit ratings agencies would find their own way to a different, less conflicted payment-incentive model. Keep in mind too that many of the provisions of Dodd-Frank have removed the existing regulatory requirements for credit ratings on bonds and other securities. This is the scary part though: There isn't anything to replace the credit ratings agencies, not at the moment, as far as I can tell! Eventually the government is supposed to come up with an alternative, but that hasn't happened yet. Which is better: Not requiring ratings at all, or the past situation of sometimes inflated ratings, which imparted a false sense of confidence? I don't know.\"",
"title": ""
},
{
"docid": "b686ae0fe2a548a07dce6642d2d9bc0c",
"text": "Yes, the entire financial system is based on trust. As we have seen repeatedly, even the ratings agencies can be wrong and in collusion. You need to understand what products have any insurance/contingency/recourse if things don't go as planned. A lot of people were surprised when they found out SIPC didn't ensure futures when MF Global declared bankruptcy last fall.",
"title": ""
},
{
"docid": "a29d85cfd8c938ef2276ef2eebe0ed11",
"text": "The one financial reform we should have passed is to stop the conflict of interest rating agencies have: They get paid by the very companies they are supposed to rate! All it takes is a company to slip a little more in to get that higher rating. I've heard this is also how the BBB operates too.",
"title": ""
},
{
"docid": "68f526be13311ca8c94737394ef90a28",
"text": "Some banks are bankrupt, or so close to it that they can only pretend to give real dividends in a desperate attempt to keep investors from fleeing and driving their stock price (and thus credit rating) down into a pit of despair. Other banks (like jpmc) are not in bad shape, have cash, and are quite happy to disburse it.",
"title": ""
},
{
"docid": "e3834023eee46345c1a76dc2fc03ec2f",
"text": "Here is one the links for Goldmansachs. Not to state the obvious, but most of their research is only available to their clients. http://www.goldmansachs.com/research/equity_ratings.html",
"title": ""
},
{
"docid": "f6828cfcacc79e64d02085f60c4e19b8",
"text": "Just playing devil's advocate: A falling stock price impairs the firm's ability to raise equity capital efficiently. In these times, additional regulatory capital requirements continue to be levied on the banks, and they are faced with raising capital inefficiently, which may impair their ability to pay their debt, which may lead to a ratings downgrade.",
"title": ""
},
{
"docid": "1a6c705c7d87a9ec21079f6c6c637160",
"text": "This is not shocking news actually. Nothing happened to these banks that made them lose their ratings. Rather, it's the rating agencies that have set up more strict rules, especially when it comes to triple A status. Specifically, it's no longer possible that banks or similar institutions can have a triple A status.This effectively means that only the richer countries can be triple A.",
"title": ""
},
{
"docid": "9ff04908735ba5c39fd86ede69c1d9ef",
"text": "i forget which one, but one of the two majors (S&P, Moodys), for a time, was not paid by issuers, but solely by subscribers. no surprise here, but at that time the issuer had, on average, lower ratings than the other service. after the service switched to subscriber-paid, within a year its ratings were on par with the other service.",
"title": ""
},
{
"docid": "635ce7920fdb62bbb83e572f92765298",
"text": "Yeah it was a mix between the issuing agencies and the credit agencies. If the credit agencies didnt rate them as AAA then the financial institutions would just go to the other agency. So there was a conflict of interest in rating them higher. There was mismanagement on both sides of the fence and when the CDOs started to default it created a forced selling environment where people HAD to sell their CDOs/stocks at a steep discount to get enough liquidity to pay their own mortgages.",
"title": ""
},
{
"docid": "f780ede624cc558237341e4335e2dd31",
"text": "The answer to your question is no. Your credit rating is the way creditors let each other know whether you are in a good position and have a strong tendency to repay your debts, not whether you are an easy target for making money on interest and penalties associated with failing to repay debts in full. The fact that you make your payments on time will definitely not lower your credit rating. While the banks are not making as much money on you as they would if you carried a balance, they are also not spending a lot of money on you, nor losing a lot of money on people like you failing to repay debts. The transactions charged to the retailers cover the costs of operating your card and then a little bit. That is enough to make you worth keeping as a customer. They are happy with your arrangement. The formula for credit rating computation is proprietary, but we know what the factors are overall. Making payments on time consistently is a positive, not a negative factor. However, they do look at the number of cards and overall mix of cards and other types of debt. For example, if you have a very large amount of credit capacity in your cards and no mortgage, that could possibly be a negative. If you have opened some of those accounts recently, it could be a negative. If you have a larger number credit cards than they think is good, that could be a negative. There are other things as well that could be bringing your score down. Probably worth it to take a look. If you want to get an idea of what factors are adding positively and negatively to your credit score, I'd encourage you to visit CreditKarma.com, Quizzle.com, or another source intended to help you understand and improve your credit rating.",
"title": ""
},
{
"docid": "9cbde01cf5e466b8f1a6ee6fca714dfb",
"text": "US government bonds are where money goes when the markets are turbulent and investors are fleeing from risk, and that applies even if the risk is a downgrade of the US credit rating, because there's simply nowhere else to put your money if you're in search of safety. Most AAA-rated governments have good credit ratings because they don't borrow much money (and most of them also have fairly small economies compared with the US), meaning that there's poor liquidity in their scarce bonds.",
"title": ""
},
{
"docid": "1527d960ca0ae909169234ac934632c1",
"text": "The credit scale is deceptive, it goes: AAA, AA, A, BBB, BBB-, BB+, BB, B, CCC, CC, C, D. In reality it should be A,B,C,D,E, F, G,H, I, etc. The current scale does not reflect with clarity the ranking of risks and ratings. AA is much worse than AAA, but the uncertainty involved can be scary. Check out these corporate and sovereign debt credit ratings.",
"title": ""
},
{
"docid": "2dc8c9f027bfc2cc21bc6b1d146bfccf",
"text": "Apple is currently the most valuable company in the world by market capitalisation and it has issued bonds for instance. Amazon have also issued bonds in the past as have Google. One of many reasons companies may issue bonds is to reduce their tax bill. If a company is a multinational it may have foreign earnings that would incur a tax bill if they were transferred to the holding company's jurisdiction. The company can however issue bonds backed by the foreign cash pile. It can then use the bond cash to pay dividends to shareholders. Ratings Agencies such as Moody's, Fitch and Standard & Poor's exist to rate companies ability to make repayments on debt they issue. Investors can read their reports to help make a determination as to whether to invest in bond issues. Of course investors also need to determine whether they believe the Ratings Agencies assesments.",
"title": ""
},
{
"docid": "80cf25b1ba15930ca2b8aa57dbb8796c",
"text": "Your credit score is based on your use of Debt. From wikipedia: Opening and closing bank accounts, buying or selling cars without debt, or even buying or selling houses without debt won't affect your credit score.",
"title": ""
},
{
"docid": "382fded1ed4fb017436f171d9cfcd887",
"text": "So their programmers don't have to deal with floating point arithmetic. This is why they're so far ahead in technology!",
"title": ""
}
] |
fiqa
|
f2a391ad32781bd9a15c09a86d117664
|
Sales Tax: Rounded Then Totaled or Totaled Then Rounded?
|
[
{
"docid": "0660a055e498255f0629f66e7b8303f2",
"text": "\"Tax is often calculated per item. Especially in the days of the internet, some items are taxable and some aren't, depending on the item and your nexus. I would recommend calculating and storing tax with each item, to account for these subtle differences. EDIT: Not sure why this was downvoted, if you don't believe me, you can always check with Amazon: http://www.amazon.com/gp/help/customer/display.html/ref=hp_468512_calculated?nodeId=468512#calculated I think they know what they're talking about. FINAL UPDATE: Now, if someone goes to your site, and buys something from your business (in California) and the shipping address for the product is Nevada, then taxes do not have to be collected. If they have a billing address in California, and a shipping address in Nevada, and the goods are shipping to Nevada, you do not have to declare tax. If you have a mixture of tangible (computer, mouse, keyboard) and intangible assets (warranty) in a cart, and the shipping address is in California, you charge tax on the tangible assets, but NOT on the intangible assets. Yes, you can charge tax on the whole order. Yes for most businesses that's \"\"Good enough\"\", but I'm not trying to provide the \"\"good enough\"\" solution, I'm simply telling you how very large businesses run and operate. As I've mentioned, I've done several tax integrations using software called Sabrix (Google if you've not heard of it), and have done those integrations for companies like the BBC and Corbis (owned and operated by Bill Gates). Take it or leave it, but the correct way to charge taxes, especially given the complex tax laws of the US and internationally, is to charge per item. If you just need the \"\"good enough\"\" approach, feel free to calculate it by total. Some additional reading: http://en.wikipedia.org/wiki/Taxation_of_Digital_Goods Another possible federal limitation on Internet taxation is the United States Supreme Court case, Quill Corp. v. North Dakota, 504 U.S. 298 (1992),[6] which held that under the dormant commerce clause, goods purchased through mail order cannot be subject to a state’s sales tax unless the vendor has a substantial nexus with the state levying the tax. In 1997, the federal government decided to limit taxation of Internet activity for a period of time. The Internet Tax Freedom Act (ITFA) prohibits taxes on Internet access, which is defined as a service that allows users access to content, information, email or other services offered over the Internet and may include access to proprietary content, information, and other services as part of a package offered to customers. The Act has exceptions for taxes levied before the statute was written and for sales taxes on online purchases of physical goods.\"",
"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": ""
},
{
"docid": "974ed9da6e3447681972ae43b6e9b83a",
"text": "You should total the items first, to get $3.00, then add the tax, then round up/down accordingly. Your two examples above don't offer this option, even though your second example arrives at the same result. In your first example, a number of items taxed one at a time might result in many .006 results which would round to .01. A long enough list of items would result in an error of many cents depending how many items there are. Totaling first then applying tax results in your saving .004 or losing .005 cents maximum due to rounding. See A Guide to Sales and Use Tax which is a document put out by the Massachusetts Dept of Revenue. In the chart for tax, it shows that $1.09 is taxed at five cents, but at 5%, it would be 5.45. So, at least for this state, I believe I correctly stated the rounding process.",
"title": ""
},
{
"docid": "f7ddaedc3d2c021d60063bc7812ac172",
"text": "Taxes should not be calculated at the item level. Taxes should be aggregated by tax group at the summary level. The right way everywhere is LINE ITEMS SUMMARY PS:If you'd charge at the item level, it would be too easy to circumvent the law by splitting your items or services into 900 items at $0.01 (Which once rounded would mean no tax). This could happen in the banking or plastic pellets industry.",
"title": ""
}
] |
[
{
"docid": "9136a647ab0179c71a5d473f896d3a87",
"text": "\"JoeTaxpayer nailed it. Here's another way to look at it: Generally, we invest in something, then might leave it there for a few years, then take it out, but don't touch it in between. In that case, to get the final amount X(N), we need to take the initial amount, then multiply by growth in the first year, then multiply by growth in the second year, etc. So, for three years, we have: X(3) = X(0) * G(1) * G(2) * G(3) = X(0) * \"\"average annual growth\"\" ^ 3 So, here, we see that we want the average annual growth to the power three equal to the product of the annual growth rates, thus, geometric mean: geometric mean = (G(1) * G(2) * G(3)) ^ (1/3) On the other hand, consider a situation where I have three investments X,Y,Z over one year. Now I have, after one year: X(1)+Y(1)+Z(1) = X(0)*G(1,X) + Y(0)*G(1,Y) + Z(0)*G(1,Z) = ( X(0)+Y(0)+Z(0) ) * \"\"average annual growth\"\" Now, in this case, if we assume X(0) = Y(0) = Z(0) = 1, i.e. I put equal amounts in each, we see that the average annual growth rate we want in this case is the arithmetic mean: arithmetic mean = (G(1,X) + G(1,Y) + G(1,Z)) / 3 (if we had unequal amounts at the beginning, it would be a weighted average). TL;DR:\"",
"title": ""
},
{
"docid": "f0322d184b8afaede4eb61aef8169642",
"text": "\"in the U.S. (for @Software Monkey) books are treated just like any other donation, you look at comparable sales: IRS Link. Sounds like a pain to do each book manually. TurbtoTax has \"\"ItsDeductable\"\" product that suppose to help you calculate the value of donated items.\"",
"title": ""
},
{
"docid": "a1041cb736e051ec679ade47727045f5",
"text": "\"Yes, this is a miscellaneous itemized deduction. https://www.irs.gov/publications/p529/ar02.html For this to impact your taxes, you have to be itemizing deductions (have total deductions greater than standard deduction), and the total of all miscellaneous deductions needs to exceed the \"\"2% floor\"\" described in the IRS link above.\"",
"title": ""
},
{
"docid": "d76b0aa423ae2d10652b65376f7b65d4",
"text": "\"I'll assume United States as the country; the answer may (probably does) vary somewhat if this is not correct. Also, I preface this with the caveat that I am neither a lawyer nor an accountant. However, this is my understanding: You must recognize the revenue at the time the credits are purchased (when money changes hands), and charge sales tax on the full amount at that time. This is because the customer has pre-paid and purchased a service (i.e. the \"\"credits\"\", which are units of time available in the application). This is clearly a complete transaction. The use of the credits is irrelevant. This is equivalent to a customer purchasing a box of widgets for future delivery; the payment is made and the widgets are available but have simply not been shipped (and therefore used). This mirrors many online service providers (say, NetFlix) in business model. This is different from the case in which a customer purchases a \"\"gift card\"\" or \"\"reloadable debit card\"\". In this case, sales tax is NOT collected (because this is technically not a purchase). Revenue is also not booked at this time. Instead, the revenue is booked when the gift card's balance is used to pay for a good or service, and at that time the tax is collected (usually from the funds on the card). To do otherwise would greatly complicate the tax basis (suppose the gift card is used in a different state or county, where sales tax is charged differently? Suppose the gift card is used to purchase a tax-exempt item?) For justification, see bankruptcy consideration of the two cases. In the former, the customer has \"\"ownership\"\" of an asset (the credits), which cannot be taken from him (although it might be unusable). In the latter, the holder of the debit card is technically an unsecured creditor of the company - and is last in line if the company's assets are liquidated for repayment. Consider also the case where the cost of the \"\"credits\"\" is increased part-way through the year (say, from $10 per credit to $20 per credit) or if a discount promotion is applied (buy 5 credits, get one free). The customer has a \"\"tangible\"\" item (one credit) which gets the same functionality regardless of price. This would be different if instead of \"\"credits\"\" you instead maintain an \"\"account\"\" where the user deposited $1000 and was billed for usage; in this case you fall back to the \"\"gift card\"\" scenario (but usage is charged at the current rate) and revenue is booked when the usage is purchased; similarly, tax is collected on the purchase of the service. For this model to work, the \"\"credit\"\" would likely have to be refundable, and could not expire (see gift cards, above), and must be usable on a variety of \"\"services\"\". You may have particular responsibility in the handling of this \"\"deposit\"\" as well.\"",
"title": ""
},
{
"docid": "52e65791fa9fc4c61ce5ac8ca1133684",
"text": "Simple. Say in 2012 you were up 50% (brilliant) but then in 2013 you were down 50% (sorry). i.e. if you started with $1000, you were up to $1500, then down to $750. You lost $250 overall. If you were to compute the mean of the percentages using each method, then: Arithmetic mean: The average of +50% and -50% (really 150% and 50% of each period's initial value) is zero, not up or down. Geometric mean: 1.5 * .5 = .75, i.e. you are down 25% over 2 years, or about 13.4% per year. It should be clear the Geometric makes more sense in such a case.",
"title": ""
},
{
"docid": "1f25fc1100906dad3d175ba50a5c3a5c",
"text": "TWRR = (2012Q4 x 2013Q1 x 2013Q2) ^ (1/3) = ?? (1.1 * .809 * 1.29) ^ (1/3) = 1.047 or 4.7% return. No imaginary numbers needed. But. Your second line there is wrong $15,750 - $15,000 - $4,000 ? The $15K already contains the $4k, why did you subtract it again? This a homework problem?",
"title": ""
},
{
"docid": "31594816af776ae31246dff47b57b5a2",
"text": "Your 1&2 are the end of that chapter. You can't convert for that year again, and must wait 30 days to convert in the new tax year. For example, each year for over a decade, I've helped my mother in law with this. In May, we convert a chunk of money/stock to Roth. In April, I'll recharacterize just enough so she tops off her 15% bracket but doesn't hit 25%. 30 days later, the new conversion happens. All the Roth money is money now taxed at 15%, which, in an emergency, a need for a lot of cash, will avoid the potential of 25% or higher, tax. You see, your 3 never really happens.",
"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": "3b36305cf5bd1204e47a99690160c354",
"text": "The vendor needs to do this using apportionment, according to the VAT rules for mixed supplies: If you make mixed supplies and the individual supplies are not liable to VAT at the same rate then you need to work out the tax value of each supply in order to calculate how much tax is due. If the tax value is based on the total price you charge (see paragraph 7.3) you do this by splitting that price between the supplies. This is called an apportionment ... There is no special method of apportionment ... However, your calculations must be fair and you must be able to justify them. It is usually best to use one of the methods shown in section 32. The section 32 referred to really relates to apportioning use between business and non-business purposes, but it implies that splitting up the total price in proportion to the original prices would probably be fair. So in your example the vendor might split the £5 discount equally between the spoon and the carrycot as they had the same gross cost, and pay VAT as if each had cost £7.50 gross. The vendor could also do it in proportion to their net (pre-VAT) prices and thus apportion a bit more of the discount to the carrycot than the spoon, but as this would lead to them paying slightly more tax overall they probably wouldn't choose to. However, none of this is likely to be too relevant to a consumer, since in the UK prices must be presented as the gross (VAT-inclusive) amounts and so the discounts will also apply to those amounts. It will of course affect how much of the purchase price the vendor ends up paying on to the government and thus might indirectly affect what discounts the vendor is willing to offer.",
"title": ""
},
{
"docid": "abe49f26f27ffe70f80550ff0b9d841a",
"text": "\"Payment gateways such as Square do not normally withhold tax. It is up to you to pay the appropriate tax at tax time. That having been said, Square does report your payments to the IRS on a form 1099-K if your payments are large enough. According to Square, you'll get a 1099-K from them if your total payments for the year add up to $20,000 AND more than 200 transactions. Whether or not they report on a 1099-K, you are required to pay the appropriate taxes on your income. So now the question becomes, \"\"Do I have to pay income tax on the proceeds from my garage sale?\"\" And the answer to that question is usually not. When you sell something that you previously purchased, if you sell it for more than you paid for it, you have a capital gain and need to pay tax on that. However, generally you sell things in a garage sale at a loss, meaning that there is no tax due. If you make more than $20,000 at your garage sale and the IRS gets a 1099-K, the IRS might be curious as to how you did that with no capital gain. So if you sell any big ticket items (a bulldozer, for example), you should keep a record of what you paid for it, so you can show the loss to the IRS in the event of an audit.\"",
"title": ""
},
{
"docid": "36da6bde98ebe39b832a27c95b80a17e",
"text": "\"Total Return is the percent change in value (including andy dividends) of an instrument. The \"\"trailing 12-month\"\" means that your starting point is the value 12 months ago. So the formula is: where V is the value of the instrument on the reference date, V0 is the value of the instrument 12 months prior to the reference date, and D is the amount of dividends paid between the two dates.\"",
"title": ""
},
{
"docid": "06724d4ce9c252533e99ccea2c29973c",
"text": "If I is the initial deposit, P the periodic deposit, r the rent per period, n the number of periods, and F the final value, than we can combine two formulas into one to get the following answer: F = I*(1+r)n + P*[(1+r)n-1]/r In this case, you get V = 1000*(1.05)20 + 100*[(1.05)20-1]/0.05 = 5959.89 USD. Note that the actual final value may be lower because of rounding errors.",
"title": ""
},
{
"docid": "5d7fd2ab75b51e221d3095eeb756341c",
"text": "So for quarters So, if Q1's value was 10 and Q2's value was 25 For closing or opening prices, I would use closing prices. For instance, some used Adjusted Close or Close on Yahoo Finance (see this example of AAPL). Added Note: In your example, for your example, you'll want to take the absolute value of the denominator (aka: divisor), so an Excel formula might look like the below example ... ... where the new and old are cells.",
"title": ""
},
{
"docid": "acfd957236e4e0b5a3ca51e6a9fd99e6",
"text": "Apparently it's based on either the address of the seller or vendor or your shipping address; from the AccurateTax.com blog post Destination and Origin Based Sales Tax: ... a few states have laws that are origin-based, where products that are shipped to the customer are taxed based on the location of the business itself. As of this writing, these states are Most states use destination-based sales tax, which defines the source of the transaction to be the destination at which the product will eventually be used, or the address to which the product is shipped. ... The following states [and districts] operate on a destination-based model at the time of this writing: The page Do I Charge Sales Tax or Not? from about.com seems to (somewhat) clarify that if the business is located in a state (or other jurisdiction) with an origin-based sales tax, then they will charge you the sales tax for their state and, presumably, not the sales tax for the state of the shipping address.",
"title": ""
},
{
"docid": "398402f51ec457500408822627b1c4f2",
"text": "Here's how capital gains are totaled: Long and Short Term. Capital gains and losses are either long-term or short-term. It depends on how long the taxpayer holds the property. If the taxpayer holds it for one year or less, the gain or loss is short-term. Net Capital Gain. If a taxpayer’s long-term gains are more than their long-term losses, the difference between the two is a net long-term capital gain. If the net long-term capital gain is more than the net short-term capital loss, the taxpayer has a net capital gain. So your net long-term gains (from all investments, through all brokers) are offset by any net short-term loss. Short term gains are taxed separately at a higher rate. I'm trying to avoid realizing a long term capital gain, but at the same time trade the stock. If you close in the next year, one of two things will happen - either the stock will go down, and you'll have short-term gains on the short, or the stock will go up, and you'll have short-term losses on the short that will offset the gains on the stock. So I don;t see how it reduces your tax liability. At best it defers it.",
"title": ""
}
] |
fiqa
|
878237f89199edb1358a0b70b7f3b030
|
Might I need a credit score to rent, or for any other non-borrowing finances?
|
[
{
"docid": "2a7deb3d6c5891fea008a3d261740e7d",
"text": "\"Credit scores are not such a big deal in Canada as they are in the US and even some European countries. One reason for this: the Social Insurance Number (SIN number) isn't used for so many purposes like the Social Security Number (SSN) in the US. The SIN number isn't even required to get credit (but with some exceptions it is needed to open an interest-bearing savings account, so that the interest income can be reported). You can refuse to provide the SIN number to most private companies. Canada also has one of the highest per-capita immigration rates of any large country, so new arrivals are expected, and services are geared up for them. Most of the banks offer special deals for \"\"New Canadians\"\". You should get a credit card (even if just a secured credit card) through them with one of these offers to start a credit file anyway, but there's no need to actually use it much. Auto-paying a utility bill through the card, and paying it off in full each month, is one way to keep it active. No need to ever pay any interest. Most major apartment rental firms will expect a good proportion of their renters to be new to Canada, so should have procedures in place to deal with it (such as a higher deposit). You should not give them your SIN for a credit check, even when you're more established. Same for utilities, they can just charge a higher deposit if they can't credit check you. For private landlords, everything is negotiable (but see the laws link at the end of this answer). You will later need a credit rating for a mortgage on a house (if not paying cash), so it's worth getting that one token credit card. Useful for car rental also. Here's a fairly complete summary of the laws on renting in Canada, which includes the maximum deposits that can be asked for, and notice periods.\"",
"title": ""
},
{
"docid": "3b4a71f1757cedfab7de46ccf168bda1",
"text": "Alas, institutions do not always act rationally, and being an outlier by never having debt may be bad enough. Therein is your problem. The question, then, is do you want to do business with institutions that are not acting rationally? While I cannot specifically speak to Canadian business practices, I have to imagine that in terms of credit history as a prerequisite to a lease, it can't be too different than America. It is possible to live without a credit score. This is typically done by those with enough resources that do not need to borrow money. To make transactions that commonly use credit scores, such as a lease, they will provide personal financial statements (balance sheets, personal income statements, bank statements, pay stubs, tax returns, etc...) to show that they are credit-worthy. References from prior landlords may also be beneficial. Again, the caveat is to elect to only conduct business with those individuals and institutions that are intelligent and rational enough to be able to analyze your financial position (and ability to pay) without a credit score. Therefore, you'll probably have better luck working with individual landlords, as opposed to corporate-owned rental complexes.",
"title": ""
},
{
"docid": "061be53a5ccdf30b62fe64def74bd484",
"text": "Typically one wants to see a credit score, just because you may have money in the bank and decent income does not mean your going to pay, there are plenty of people who have the money but simply refuse to cough it up. Credit is simply a relative way of seeing where one fits against another in a larger group, it shows that this person not only can pay, but does pay. While not having a credit history should make no difference, I can and hopefully easily posited above why it can be necessary to have one. Not all landlords will require a credit check, I was not required to give one, I did not have much credit to begin with, given that, I was forced to cough up a higher degree of a security deposit.",
"title": ""
}
] |
[
{
"docid": "d74a74d5aeabef3044cf1f4454d7077d",
"text": "Need is a strong word. As far as merchants are concerned, if they accept, e.g., Visa credit, they will accept Visa Debit. The reverse is not necessarily true. Up until lately, Aldi would only accept debit cards (credit cards have higher merchant fees), and when I used to got to Sam's Club, they would accept Visa debit, but not credit (they had/have an exclusive deal with Discover for credit). So, yes, they can tell from the card number whether it's credit or debit. However, I've never heard of a case of the situation being biased against debit.* That said there are some advantages to having a credit card: ETA: I don't know how credit history works in the EU, but in the US having open credit accounts definitely does affect your credit score which directly affects what rate you can get for a mortgage. *ETA_2: As mentioned in the comments and another answer, car rentals will often require credit cards and not debit (Makes sense to me that they would want to make sure they can get their money if there is damage to the car). Many credit cards do include rental car insurance if you use it to pay for your rental, so that's another potential advantage for credit cards.",
"title": ""
},
{
"docid": "2548412c71407b02dd63b488ad8538f5",
"text": "No, don't open a credit card. Get used to paying cash for everything from the beginning. The best situation you can be in is not to have any credit. When it comes time to buy a house, put down %30 percent and your 0 credit score won't matter. This will keep you within your means, and, with governments gathering more and more data, help preserve your anonimity.",
"title": ""
},
{
"docid": "3b64b7488d616ae026c37b3cf64919b2",
"text": "In addition to the already good answers: I am assuming you are playing a long game and have no specific need for a high credit score in the next couple of years. This list is just good practice that will raise you score.",
"title": ""
},
{
"docid": "7377d2268dcb7cd6f476d5923bce0e6a",
"text": "Slightly abbreviated version of the guidance from NOLO.com California state law limits credit check or application screening fees landlords can charge prospective tenants and specifies what landlords must do when accepting these types of fees. (Cal. Civ. Code § 1950.6.) Here are key provisions: I am not a lawyer, but it would seem you have two options if you catch a landlord violating these rules. An idea to avoid the whole problem in the first place: Get a copy of your credit report yourself and take a copy with you to meet the landlord. If they want an application fee, ask why they need it making it clear you know the above law. If they say for a credit report offer to give them a copy in lieu of the fee.",
"title": ""
},
{
"docid": "4f7d7b47297fe882b41f5d99354d601a",
"text": "\"Credit Unions have long advocated their services based on the fact that they consider your \"\"character.\"\" Unfortunately, they are then at a loss to explain how they determine the value of your character, other than to say that you're buddies & play pool together so they'll give you a loan. Your Credit History / Score is as accurate a representation of your character in business dealings as can be meaningfully quantified. It tracks your ability to effectively use and manage debt, and your propensity to pay it back responsibly or default on obligations. While it isn't perfect, it is certainly one of the best means currently available for determining someone's trustworthiness when it comes to financial matters.\"",
"title": ""
},
{
"docid": "6de2264a0a9d82015be6c5d897c27ebd",
"text": "I have a car loan paid in full and even paid off early, and 2 personal loans paid in full from my credit union that don't seem to reflect in a positive way and all 3 were in good standing. But you also My credit card utilization is 95%. I have a total of 4 store credit cards, a car loan, 2 personal loans. So assuming no overlap, you've paid off three of your ten loans (30%). And you still have 95% utilization. What would you do if you were laid off for six months? Regardless of payment history, you would most likely stop making payments on your loans. This is why your credit score is bad. You are in fact a credit risk. Not due to payment history. If your payment history was bad, you'd likely rank worse. But simple fiscal reality is that you are an adverse event away from serious fiscal problems. For that matter, the very point that you are considering bankruptcy says that they are right to give you a poor score. Bankruptcy has adverse effects on you, but for your creditors it means that many of them will never get paid or get paid less than what they loaned. The hard advice that we can give is to reduce your expenses. Stop going to restaurants. Prepare breakfast and supper from scratch and bag your lunch. Don't put new expenses on your credit cards unless you can pay them this month. Cut up your store cards and don't shop for anything but necessities. Whatever durables (furniture, appliances, clothes, shoes, etc.) you have now should be enough for the next year or so. Cut your expenses. Have premium channels on your cable or the extra fast internet? Drop back to the minimum instead. Turn the heat down and the A/C temperature up (so it cools less). Turn off the lights if you aren't using them. If you move, move to a cheaper apartment. Nothing to do? Get a second job. That will not only keep you from being bored, it will help with your financial issues. Bankruptcy will not itself fix the problems you describe. You are living beyond your means. Bankruptcy might make you stop living beyond your means. But it won't fix the problem that you make less money than you want to spend. Only you can do that. Better to stop the spending now rather than waiting until bankruptcy makes your credit even worse and forces you to cut spending. If you have extra money at the end of the month, pick the worst loan and pay as much of it as you can. By worst, I mean the one with the worst terms going forward. Highest interest rate, etc. If two loans have the same rate, pay the smaller one first. Once you pay off that loan, it will increase the amount of money you have left to pay off your other loans. This is called the debt snowball (snowball effect). After you finish paying off your debt, save up six months worth of expenses or income. These will be your emergency savings. Once you have your emergency fund, write out a budget and stick to it. You can buy anything you want, so long as it fits in your budget. Avoid borrowing unless absolutely necessary. Instead, save your money for bigger purchases. With savings, you not only avoid paying interest, you may actually get paid interest. Even if it's a low rate, paid to you is better than paying someone else. One of the largest effects of bankruptcy is that it forces you to act like this. They offer you even less credit at worse terms. You won't be able to shop on credit anymore. No new car loan. No mortgage. No nice clothes on credit. So why declare bankruptcy? Take charge of your spending now rather than waiting until you can't do anything else.",
"title": ""
},
{
"docid": "7dde74392ae43418f5636c60a710d5c6",
"text": "\"I'm not aware that any US bank has any way to access your credit rating in France (especially as you basically don't have one!). In the US, banks are not the only way to get finance for a home. In many regions, there are plenty of \"\"owner financed\"\" or \"\"Owner will carry\"\" homes. For these, the previous owner will provide a private mortgage for the balance if you have a large (25%+) downpayment. No strict lending rules, no fancy credit scoring systems, just a large enough downpayment so they know they'll get their money back if they have to foreclose. For the seller, it's a way to shift a house that is hard to sell plus get a regular income. Often this mortgage is for only 3-10 years, but that gives you the time to establish more credit and then refinance. Maybe the interest rate is a little higher also, but again it's just until you can refinance to something better (or sell other assets then pay the loan off quick). For new homes, the builders/developers may offer similar finance. For both owner-will-carry and developer finance, a large deposit will trump any credit rating concerns. There is usually a simplified foreclosure process, so they're not really taking much of a risk, so can afford to be flexible. Make sure the owner mortgage is via a title company, trust company, or escrow company, so that there's a third party involved to ensure each party lives up to their obligations.\"",
"title": ""
},
{
"docid": "15c158701768c423b56c2ce8adef5483",
"text": "I also am paying roughly twice as much in rent as a mortgage payment would be on the type of house I have been looking at, so I'd really like to purchase a house if possible. Sounds like I need to rain on your parade a bit: there's a lot more to owning a house than the mortgage. Property tax, insurance, PMI, and maintenance are things that throw this off. You'll also be paying more interest than normal given your recent credit history. It's still possible that buying is better than renting, but one really should run the detailed math on this. For example, looking at houses around where I live, insurance, property tax and special assessments over the course of a year roughly equal the mortgage payments annually. You probably won't be able to get a loan just yet. If you've just started your new job it will take a while to build a documentable income history sufficient for lenders. But take heart! As you take the next year to save up a down payment / build up an emergency fund you'll discover that credit score improves with time. However, it's crucial that you don't do anything to mess with the score. Pay all your bills on time. Don't take out a car loan. Don't close your old revolving accounts. But most of all, don't worry. Rent hurts (I rent too) but in many parts of the US owning hurts more, as your property values fall. A house down the street from my dear old mother has been on the market for several months at a price 33 percent lower than her most recent appraisals. I'm comfortable waiting until markets stabilize / start rising before jumping on real estate.",
"title": ""
},
{
"docid": "879a2f9d08d157b5b6885499455c88a8",
"text": "Generally, banks will report your loan to at least one (if not all three) credit bureaus - although that is not required by law. The interest you're paying, in addition to your insurance isn't justifiable for building credit. I would recommend paying the car off and then perhaps applying for a secure credit card if you are worried about being rejected. Of course, since you have very little credit, applying for an unsecured card and getting rejected won't hurt you in the long run. If you are rejected, you can always go for a secured credit card the second time. As I mentioned in my comments, it's better to show 6 months of on-time payments than to have no payment history at all. So if your goal is to secure an apartment near campus, I'm sure you're already a step ahead of the other students.",
"title": ""
},
{
"docid": "9cc74c0c1cae2db291c3e93b4ee0c806",
"text": "If you give me $216k to trash my credit report, I'll take it every time. People place too much value on the ability to borrow rather than having cash up front. I never pay interest (I do use a credit card and pay it off every month). Why would you need to borrow money if you effectively got handed $200k? Of course, if your networth went from -$200k to 0, you are still broke. But considering that you were in that situation in the first place, the inability to borrow money may be a good thing.",
"title": ""
},
{
"docid": "d801729d04778965283fda70247d647c",
"text": "Exactly, it's not like there's a shortage of rental properties or housing opportunities. There are a few hundred (if not thousand) within a 5 mile radius of my house alone, and they certainly don't all have the same terms. Maybe you're not going to get into a gated white collar community, but I'm pretty sure you can secure a nice place in a nice neighborhood even if your credit score is somewhere between ass and the toilet.",
"title": ""
},
{
"docid": "8bba82847005e0638501d794ffa3685d",
"text": "\"0% furniture loans can hurt your credit rating. I was told by a bank mortgage officer (sorry I can't cite a document) that credit rating algorithms consider \"\"consumer\"\" loans like 0% appliance loans and certain store-specific credit cards as a negative factor, lowering your overall score. The rationalization given was that that taking that type of credit is an indicator that you have zero cash reserves. The actual algorithms are proprietary, so I don't know how you could verify this. If true, it runs counter to the conventional wisdom that getting credit and then paying it off builds your credit score.\"",
"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": "7f2df010c429e9e77f625177d0a9d392",
"text": "\"US based so I don't know how closely this translates to the UK, but generally speaking there are three things that contribute to a strong credit score. Length/volume of credit history. This is a combination of how many accounts appear in your history along with how long they have been open. Having a series of accounts that were maintained in good standing looks better than only having one. Maintaining an account in good standing for a prolonged period (3+ years) is better than a bunch of short term items. \"\"Ideally\"\" your credit history should contain a mix of term loans that were paid per contract and a few (1?) revolving account that shows ongoing use. The goal is to show that you can handle ongoing obligations responsibly, and manage multiple things at the same time. Utilization. Or how much you currently owe vs how much people have agreed to lend you. Being close to your limits raises questions about whether or not you can really handle the additional debt. Having large availability raises questions about whether you would be able to handle it if you suddenly maxed things out. Finding the correct middle point can be challenging, the numbers I have seen thrown around most by the \"\"experts\"\" is 20-30% utilization. Recent Activity. Or how much new debt have you taken on? If someone is opening lots of new accounts it raises red flags. Shopping around for a deal on a auto loan or mortgage before settling on one is fine. Opening 5 new credit lines in the past 6 months, probably going to knock you down a bit. One of the concerns here is have you had the accounts long enough to demonstrate that you will be able to handle them in the long term. One route that was suggested to me in my early years was to go take out a 6mo loan from a bank, and just place the money in a CD while I made the payments. Then repeat with a longer term. Worst case, you can cash out the CD to pay off the loan in an emergency, but otherwise it helps show the type of history they are looking for. All that said, I have to agree with Pete B's answer. Don't play the credit game if you don't really need to. Or play it just enough to stay in the game and plan your finances to avoid relying on it. (Advice I wish I had taken long ago.)\"",
"title": ""
},
{
"docid": "c23a1e24ab98e5bdc93c4eaa97a24cd2",
"text": "It may or may not be a good idea to borrow money from your family; there are many factors to consider here, not the least of which is what you would do if you got in serious financial trouble and couldn't make your scheduled payments on the loan. Would you arrange with them to sell the property ASAP? Or could they easily manage for a few months without your scheduled payments if it were necessary? A good rule of thumb that some people follow when lending to family is this: don't do it unless you're 100% OK with the possibility that they might not pay you back at all. That said, your question was about credit scores specifically. Having a mortgage and making on-time payments would factor into your score, but not significantly more heavily than having revolving credit (eg a credit card) and making on time payments, or having a car loan or installment loan and making on time payments. I bought my house in 2011, and after years of paying the mortgage on time my credit score hasn't changed at all. MyFico has a breakdown of factors affecting your credit score here: http://www.myfico.com/crediteducation/whatsinyourscore.aspx. The most significant are a history of on-time payments, low revolving credit utilization (carrying a $4900 balance on a card with a $5000 limit is bad, carrying a $10 balance on the same card is good), and overall length of your credit history. As to credit mix, they have this to say: Types of credit in use Credit mix determines 10% of my FICO Score The FICO® Score will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. It's not necessary to have one of each, and it's not a good idea to open credit accounts you don’t intend to use. The credit mix usually won’t be a key factor in determining your FICO Score—but it will be more important if your credit report does not have a lot of other information on which to base a score. Have credit cards – but manage them responsibly Having credit cards and installment loans with a good payment history will raise your FICO Score. People with no credit cards tend to be viewed as a higher risk than people who have managed credit cards responsibly.",
"title": ""
}
] |
fiqa
|
9382414b39110a301182bc7da416756b
|
How to properly report income without 1099-MISC
|
[
{
"docid": "b21dfeda453e019b67382d2c7e496610",
"text": "You are right that even if you do not receive a 1099-MISC, you still need to report all income to the IRS. Report the $40 on Schedule C or Schedule C-EZ. Since your net profit was less than $400, you do not need to file Schedule SE. From the IRS web site: Self-Employment Income It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income. All income earned through the taxpayer’s business, as an independent contractor or from informal side jobs is self-employment income, which is fully taxable and must be reported on Form 1040. Use Form 1040, Schedule C, Profit or Loss from Business, or Form 1040, Schedule C-EZ, Net Profit from Business (Sole Proprietorship) to report income and expenses. Taxpayers will also need to prepare Form 1040 Schedule SE for self-employment taxes if the net profit exceeds $400 for a year. Do not report this income on Form 1040 Line 21 as Other Income. Independent contractors must report all income as taxable, even if it is less than $600. Even if the client does not issue a Form 1099-MISC, the income, whatever the amount, is still reportable by the taxpayer.",
"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": "0fb8ad9020bf14fbf901fe9c1f18a4c4",
"text": "\"If you receive a 1099-MISC from YouTube, that tells you what they stated to the IRS and leads into most tax preparation software guided interviews or wizards as a topic for you to enter. Whether or not you have a 1099-MISC, this discussion from the IRS is pertinent to your question. You could probably elect to report the income as a royalty on your copyrighted work of art on Schedule E, but see this note: \"\"In most cases you report royalties in Part I of Schedule E (Form 1040). However, if you ... are in business as a self-employed writer, inventor, artist, etc., report your income and expenses on Schedule C or Schedule C-EZ (Form 1040).\"\" Whether reporting on Schedule E or C is more correct or better for your specific circumstances is beyond the advice you should take from strangers on the internet based on a general question - however, know that there are potentially several paths for you. Note that this is revenue from a business, so if you paid for equipment or services that are 100% dedicated to your YouTubing (PC, webcam, upgraded broadband, video editing software, vehicle miles to a shoot, props, etc.) then these are a combination of depreciable capital investments and expenses you can report against the income, reducing the taxes you may owe. If the equipment/services are used for business and personal use, there are further guidelines from the IRS as to estimating the split. These apply whether you report on Sch. E, Sch. C, or Sch C-EZ. Quote: \"\"Self-Employment Income It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income. All income earned through the taxpayer’s business, as an independent contractor or from informal side jobs is self-employment income, which is fully taxable and must be reported on Form 1040. Use Form 1040, Schedule C, Profit or Loss from Business, or Form 1040, Schedule C-EZ, Net Profit from Business (Sole Proprietorship) to report income and expenses. Taxpayers will also need to prepare Form 1040 Schedule SE for self-employment taxes if the net profit exceeds $400 for a year. Do not report this income on Form 1040 Line 21 as Other Income. Independent contractors must report all income as taxable, even if it is less than $600. Even if the client does not issue a Form 1099-MISC, the income, whatever the amount, is still reportable by the taxpayer. Fees received for babysitting, housecleaning and lawn cutting are all examples of taxable income, even if each client paid less than $600 for the year. Someone who repairs computers in his or her spare time needs to report all monies earned as self-employment income even if no one person paid more than $600 for repairs.\"\"\"",
"title": ""
},
{
"docid": "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": "b45d5ec4b229bc9bf365f2b849ee8988",
"text": "\"-Alain Wertheimer I'm a hobbyist... Most (probably all) of those older items were sold both prior to my establishing the LLC This is a hobby of yours, this is not your business. You purchased all of these goods for your pleasure, not for their future profit. The later items that you bought after your LLC was establish served both purposes (perks of doing what you love). How should I go about reporting this income for the items I don't have records for how much I purchased them for? There's nothing you can do. As noted above, these items (if you were to testify in court against the IRS). \"\"Losses from the sale of personal-use property, such as your home or car, aren't tax deductible.\"\" Source Do I need to indicate 100% of the income because I can't prove that I sold it at a loss? Yes, if you do not have previous records you must claim a 100% capital gain. Source Addition: As JoeTaxpayer has mentioned in the comments, the second source I posted is for stocks and bonds. So at year begin of 2016, I started selling what I didn't need on eBay and on various forums [January - September]. Because you are not in the business of doing this, you do not need to explain the cost; but you do need to report the income as Gross Income on your 1040. Yes, if you bought a TV three years ago for a $100 and sold it for $50, the IRS would recognize you earning $50. As these are all personal items, they can not be deducted; regardless of gain or loss. Source Later in the year 2016 (October), I started an LLC (October - December) If these are items that you did not record early in the process of your LLC, then it is reported as a 100% gain as you can not prove any business expenses or costs to acquire associated with it. Source Refer to above answer. Refer to above answer. Conclusion Again, this is a income tax question that is split between business and personal use items. This is not a question of other's assessment of the value of the asset. It is solely based on the instruments of the IRS and their assessment of gains and losses from businesses. As OP does not have the necessary documents to prove otherwise, a cost basis of $0 must be assumed; thus you have a 100% gain on sale.\"",
"title": ""
},
{
"docid": "e863c8d274a0822740d59a90181625e4",
"text": "Per IRS regulations, if your stipend is not paying you for qualified expenses (primarily, tuition and books; explicitly not room and board or travel), it is taxable. It doesn't require self-employment taxes (which are Medicare and FICA, normally paid in part by an employer), but it is taxable income from an income tax perspective. You can generally deduct your books and such if you have your receipts - expenses 'required' by the institution for the coursework. Do verify that the amount on the 1099-MISC reflects what you actually received in cash above and beyond the tuition waiver - don't assume the college did this the way you expect, or even properly. Your bank statements should match the amount on the form. You should definitely include it in your gross income and pay taxes on it. If you received alternate instruction, you should clarify that with the people doing the filing, and follow up with a supervisor perhaps (it's possible the volunteers helping at an event like this aren't familiar with this part of tax preparation). (Source, in addition to IRS regulations - I was my wife's tax preparer many of the years she was in her Ph.D. program.)",
"title": ""
},
{
"docid": "f3af1afbfbdf47f2c1f93b4371879912",
"text": "There are many different types of 1099 forms. Since you are comparing it to a W-2, I'm assuming you are talking about a 1099-MISC form. Independent contractor income If you are a worker earning a salary or wage, your employer reports your annual earnings at year-end on Form W-2. However, if you are an independent contractor or self-employed you will receive a Form 1099-MISC from each client that pays you at least $600 during the tax year. For example, if you are a freelance writer, consultant or artist, you hire yourself out to individuals or companies on a contract basis. The income you receive from each job you take should be reported to you on Form 1099-MISC. When you prepare your tax return, the IRS requires you to report all of this income and pay income tax on it. So even if you receive a 1099-MISC form, you are required to pay taxes on it.",
"title": ""
},
{
"docid": "4a4ea401a7db431a02f515cee6f65660",
"text": "\"You can report it as illegal income and you don't have to elaborate any further. For instance, spirit the cash off to a state where pot is legal and set up a dispensary. That is not legal at the Federal level, so it is in fact \"\"illegal income\"\" vis-a-vis your Form 1040 and that's all you say. Make sure you look, walk, and quack like a fairly successful pot distributor. That will most likely be the end of their inquiry, since they're not terribly driven to investigate the income you do report. Having to give 33% of it to the IRS is generally strong motivation for folks to not report fake income. You're not claiming the money is from pot, you're allowing them to infer it.\"",
"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": "1b9fe28c51270b476811f2bf99389add",
"text": "The correct, legal way to handle this would be to file an amended return for that year (probably best to talk to a CPA). If you don't have the 1099, the IRS has a process to handle that here. It sounds like they would just try to contact the employer themselves, but it doesn't say exactly what would happen if the employer is out of business.",
"title": ""
},
{
"docid": "4f26c99c0f284399995f478057ab7b24",
"text": "One of the triggers for audit is when the IRS can't match 1099 income to the tax return. Whoever got the 1099 in her name should include that income on her return.",
"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": "9346e3e432cbd31c696b86e795de9aa7",
"text": "Are the amounts in those boxes taxes that have already been removed? Yes. If they are, how do I report these totals? When I entered the information from the 1099-MISC, it only asked for the total, and didn't ask for (what I thought were) the taxes already taken out. It should appear on your 1040 line 64 (and similar line on your State tax return). If the program doesn't ask for all the 1099 fields (which is stupid), you can add it as additional taxes paid in the Credits section, somewhere in the area where they ask about estimated payments etc.",
"title": ""
},
{
"docid": "0b01955977794a02a7d27bdbfa46c7c1",
"text": "Contractors regularly deposit checks like this; if the income is legitimate don't worry. Report it to the IRS as income whether or not the customer issues you a 1099. With deposits like this you should be making quarterly payments to the IRS for your projected income.",
"title": ""
},
{
"docid": "b4bdf77bd6c433338ae2798676b50331",
"text": "\"There are many people who have deductions far above the standard deduction, but still don't itemize. That's their option even though it comes at a cost. It may be foolish, but it's not illegal. If @littleadv citation is correct, the 'under penalty of perjury' type issue, what of those filers who file a Schedule A but purposely leave off their donations? I've seen many people discuss charity, and write that they do not want to benefit in any way from their donation, yet, still Schedule A their mortgage and property tax. Their returns are therefore fraudulent. I am curious to find a situation in which the taxpayer benefits from such a purposeful oversight, or, better still, a cited case where they were charged with doing so. I've offered advice on filings return that wasn't \"\"truthful\"\". When you own a stock and cannot find cost basis, there are times that you might realize the basis is so low that just entering zero will cost you less than $100 in extra tax. You are not truthful, of course, but this kind of false statement isn't going to lead to any issue. If it gets noticed within an audit, no agent is going to give it more than a moment of time and perhaps suggest, \"\"you didn't even know the year it was bought?\"\" but there would be no consequence. My answer is for personal returns, I'm sure for business, accuracy to the dollar is actually important.\"",
"title": ""
},
{
"docid": "aa54fda0a92cf027e4c6bb162493e245",
"text": "The higher the debt, the higher inflation needs to be to wash the debt away. This is why the debt and US equities move upward hand in hand. The same goes for US housing. Just as homeowners borrow money through mortgages so that house prices rise, the banks borrow the money for mortgages through the central banks. Thus, the cycle circulates. The more debt, the higher the prices! Everybody makes money from debt. That is why the US has the highest external debt on the globe, yet they are considered one of the wealthiest countries in the world.",
"title": ""
}
] |
fiqa
|
b8ad0d6bc0ff387775472c3a3c13d615
|
What's the purpose of having separate checking and savings accounts?
|
[
{
"docid": "a539363d63bb5e87844af2f86642e935",
"text": "\"For some people, it's easier to stick to a budget if they have separate checking and savings accounts because they can deposit funds directly into their savings account and not have those funds accessible by debit/credit card, checks, etc. This allows people to pay themselves first and accumulate savings, while making it slightly more difficult to spend those savings on a whim. One a more technical/legal note, one key difference in the United States comes from Regulation D. §204.2(d)(2) of the law limits you to six withdrawals from savings and money market accounts. No such limit exists for checking accounts. Regulation D also forbids banks from paying interest on business checking accounts. In the simplest case, checking accounts and savings accounts are a tradeoff between liquidity and return. Checking accounts are much more liquid, but won't necessarily earn interest, while savings accounts are less liquid because of the withdrawal limits, but earn interest. Nowadays, however, sweep accounts blur this line somewhat because they function like checking accounts, in that you can write an unlimited number of checks, make an unlimited number of withdrawals, etc. but you can also earn interest on your account balance because some or all of the funds are \"\"swept\"\" into an investment account when not in use. The definition of \"\"in use\"\" can vary from business to business and bank to bank.\"",
"title": ""
},
{
"docid": "2141f8cd0a89ca1e520fc0df552b41af",
"text": "A checking account is instant access. It can be tapped via check or debit card. A savings account is supposed to be used to accumulate cash for a goal that is is longer term or for an emergency. Many people need to separate these funds into different accounts to be able to know if they are overspending or falling short on their savings. In the United States the Federal Reserve also looks at these accounts differently. Money in a checking account generally can't be used to fund loans, money in a savings account can be used as a source of loans by the bank. An even greater percentage of funds in longer term accounts can be used to fund loans. This includes Certificates of Deposit, and retirement accounts.",
"title": ""
},
{
"docid": "b0233932bf2985e1e93b85ca2cdd8221",
"text": "If your debit card/ATM card is stolen or lost, someone else might be able to withdraw money from the checking account that it is tied to, or buy things with the card and have the money taken out of the checking account to pay the merchant. Subject to daily withdrawal limits imposed by your bank, a considerable amount of money could be lost in this way. At least in the US, debit or ATM cards, although they are often branded Mastercard or Visa, do not provide the same level of protection as credit cards for which the liability is limited to $50 until the card is reported as lost or stolen and $0 thereafter. Note also that the money in your savings account is safe, unless you have chosen an automatic overdraft protection feature that automatically transfers money from your savings account into the checking account to cover overdrafts. So that is another reason to keep most of your money in the savings account and only enough for immediately foreseeable needs in the checking account (and to think carefully before accepting automatic overdraft protection offers). These days, with mobile banking available via smartphones and the like, transferring money yourself from savings to checking account as needed might be a preferred way of doing things on the go (until the smartphone is stolen!)",
"title": ""
},
{
"docid": "22d7742a2b993821a7cebeef9029d984",
"text": "Additionally, it used to be the case that savings accounts would have a noticeably higher interest than checking accounts (if the checking account paid any at all). So you would attempt to maximize your cash working for you by putting as much as you could into the savings account and then only transferring out what you needed to cover bills, etc into the checking account.",
"title": ""
}
] |
[
{
"docid": "5d5e4e1d4f9c4dd063b662a9cce9501c",
"text": "\"If you ask ten different couples what they do, depending on a variety of factors, you'll get anywhere between two and ten different answers. One personal finance blogger that I read swears by the fact that he and his wife keep their finances totally separate. His wife has her own retirement account, he has his. His wife has her own checking and savings, he has his. They pay fifty-fifty for expenses and each buy their own \"\"toys\"\" from their own accounts. He views this as valuable for allowing them to have their own personal finance styles, as his wife is a very conservative investor and he is more generous. My spouse and I have mostly combined finances, and view all of our money as joint (even though there are a smattering of accounts between us with just one name on them as holdovers from before we were married). Almost all of our purchasing decisions except regular groceries are joint. I couldn't imagine it any other way. It leaves us both comfortable with our financial situation and forces us to be on the same page with regards to our lifestyle decisions. There's also the ideological view that since we believe marriage united us, we try to live that out. That's just us, though. We don't want to force it on others. Some couples find a balance between joint accounts and his and her fun money stashes. You might find yet another arrangement that works for you, such as the one you already described. What's going to be important is that you realize that all couples have the same six basic arguments, finances being one of them. The trick is in how you disagree. If you can respectfully and thoughtfully discuss your finances together to find the way that has the least friction for you, you're doing well. Some amount of friction is not just normal, it's almost guaranteed.\"",
"title": ""
},
{
"docid": "25d8a6bc03bcee11387a8f0d2e9c1679",
"text": "\"As others have said, the decision is a very personal one. Personally, I think you have a good idea. For those of us that thrive in structured systems having a detailed breakdown and distribution of assets is a great idea. I recommend going one step further however. Instead of having a single \"\"Necessities\"\" account have a division here. 1 account for \"\"Bills\"\" and another for \"\"Living Expenses.\"\" Your Bills account should recieve the funds to pay your monthly expenses such as Rent, Utilities, Insurance. Living Expenses is for day to day spending. I recommend this because your Bills are generally a fairly fixed expense. Keeping your flexible spending separate allows you to manage it more carefully and helps prevent overspending. I keep my Living Expenses in cash and divide it up by the number of days before my next check. Every day I put my portion of the Living Expenses in my wallet. This way I know that I can spend as much money in my wallet and still be fine for the rest of the pay period. I also know that if I want to go out to a nice dinner on Friday, it would be helpful if I have money left over at the end of the day Monday through Thursday.\"",
"title": ""
},
{
"docid": "834161fd81c5a093c0ceb941342f316b",
"text": "\"Current is another word for Checking, as it is called in the US. Savings account is an interest-bearing account with certain limitations. For example, in the US you cannot withdraw money from it more than 6 times a month. Here is the explanation why. Current account is a \"\"general-use\"\" account on which you can write checks, use ATM/Debit cards and have unlimited transactions. It can also have negative balance (if your bank agrees to let you overdraft, they usually charge huge fees for that though). Checking accounts can have interest as well, but they usually don't, and if they do - it's much lower than the savings account interest.\"",
"title": ""
},
{
"docid": "70ea11dccd38402e5345271ba4ee0a4b",
"text": "\"This seems like a risky setup. All it takes is one missed or delayed transfer for you to overdraw your \"\"savings\"\". There is a benefit to keeping your regular expenses and savings separate, and I can see some benefits in having multiple checking accounts depending on how you organize your finances, but I don't see a benefit to having a paycheck go to one account and all regular spending (and \"\"savings\"\") come from another. It requires some regular maintenance to transfer money over to use for regular spending. I suppose if you have a checking account that earns interest, but requires direct deposits, and a savings account that earns slightly higher interest you could squeeze out a bit, but it's probably not worth the effort these days unless you have a LOT of money going in and out. Also, it should not be easy to tap into savings, but your day-to-day spending should be very accessible. All those factors suggest (to me) that your paycheck should go into your regular spending account, and keep your savings separate.\"",
"title": ""
},
{
"docid": "c599ab7cdddfa97073e35b163dcfd664",
"text": "My wife and I chose to share all bank accounts and credit cards. We did so because we realized that, over the course of a marriage, the pendulum of who is the primary breadwinner may shift repeatedly. Having one account gets us in the habit of thinking about our needs and wants together and eases any transitions that may come as one or the other of us quits a job/returns to school/reduces hours. I should also say that this system would likely not work well if either partner has semi-compulsive spending/consumption habits. I'd recommend separate bank accounts with a joint account for your mortgage in that situation.",
"title": ""
},
{
"docid": "803d7c76518537f98cceee4def5f663f",
"text": "Yes a minor can have a checking account, or a savings account. They can even get a debit card. The money in that bank account belongs to the minor. The account can be established as soon as the are assigned their social security number. If they are a newborn the account is generally set up as a joint account with a parent to facilitate transferring money into the account. For us the money was birthday gifts from relatives. The IRS allows minors to receive small amounts of interest, or other unearned income, tax free. In 2015 that is up to $1,050, if they have no earned income. When bank rates were higher some parent's wanted to put all their saving under their child's name, of course in the eyes of the law the money belonged to the child and was only to be spent for items that benefited the child. Credit cards are another matter because the CARD act in 2009 required lenders to only give credit to those under 21 who had proof of sufficient income, unless there was a co-signer. You do have to be careful when talking about owning a house as minor. They generally can't sign a contract. You could gift the house to the minor, but if it was time to sell it the courts would insist on appointing a legal guardian to represent the interest of the child. That could add significant time to the transaction.",
"title": ""
},
{
"docid": "8ecad338e1109d173bd965ba1f489795",
"text": "\"What I've found works best when working on my personal budget is to track my income and spending two different ways: bank accounts and budget categories. Here is what I mean: When I deposit my paycheck, I do two things with it: It goes into my checking account, so the balance of my checking account goes up by the amount of my paycheck. I also \"\"deposit\"\" the money from my checking account into my various budget category balances. This is separate from my bank account balances. Some of my paycheck money goes into my groceries category, some goes into clothing, some into car fuel, entertainment, mortgage, phone, etc. Some goes into longer range bills that only happen once or twice a year, such as car insurance, life insurance, property tax, etc. Some goes into savings goals of ours, such as car replacement, vacation, furniture, etc. Every dollar that we have in a bank account or in cash in our wallets is also accounted for in a budget category. If you add up the balances of our bank accounts and cash, and you add up the balances of our budget categories, they add up to the same number. When we make a purchase, this also gets accounted for twice: The appropriate bank account (or cash wallet) balance gets reduced by the purchase amount. The appropriate budget category gets reduced by the purchase amount. In this way, we don't really need to worry about having separate bank accounts for different purposes. We don't need to put our savings goal money in a separate bank account from our grocery money, if we don't want to. The budget category accounting keeps track of how much money is allocated to each purpose. Now, the budget category amounts are not spent yet; the money in them is still in our bank account, and we can move money around in the categories, if we change our mind on how to allocate them. For example, if we don't spend all of our gas money for the month, we can either keep that money in the gas category, or we can move it to a different category, such as the car replacement category or the vacation category. If the phone bill is more than we expect, we can move money around from a different category to cover it. Now, back to your question: We allocate some money from each paycheck into our furniture category. But the money is not really spent until we actually buy some furniture. When we do, the furniture category balance and bank account balance both go down by the amount of the purchase. All of this can be kept track of on the computer in a spreadsheet. However, it's not easy to keep track of so many categories and bank balances. An easier solution is custom budgeting software designed for this purpose. I use and recommend YNAB.\"",
"title": ""
},
{
"docid": "cf57118aba653d98bf7eac3e0d361328",
"text": "There is no accounting reason that it should be different, there are likely psychological reasons that it should be, however. Assuming that you live in a western country with good banking regulation, you likely have deposit insurance or a similar scheme. Here in Canada we are covered up to $100,000 in a single account with various limitations. At least my rainy-day account plus savings is nowhere near that, so I'm good to go. That said, however, having a large lump of money in an account you regularly use may tempt you more than you can stand. That iPad, car, home improvement, etc., might be too easy to buy knowing you have relatively easy access to that money. So it really becomes a self-discipline question. Good Luck",
"title": ""
},
{
"docid": "9fb5f84f227bcf9ce8d5c1fe5e39467d",
"text": "\"I added \"\"Shared money in account\"\" (SMIA) as sub-account of my bank checking (CA) account and moved current difference to that account so total of CA was not changed but now private and shared money is separated. My cases would be handled the following The only downside I see is that now my balance in CA transaction log do not match exactly with bank so reconciliation will be slightly harder.\"",
"title": ""
},
{
"docid": "ad506b5910152fb05fc69f2320f26b2a",
"text": "\"In your comment, you said: It just seems a little stupid to me to go and put away money for the explicit purpose of emergencies (presumably in a way that's somehow different from how you would normally save money). Seems better to go and treat the money as you would normally, and then pull whatever you need from the money that you had saved. The problem with that logic is that people save money for many different things. You might save for a vacation, or a new refrigerator, or a new car, or a house, or your kids' college education. If you \"\"pull whatever you need\"\" for such expenses, you may find that when a real emergency occurs, you don't have enough money. The things you used it for may have been legitimate, reasonable expenses, but nonetheless you may later wish you had deferred those expenses until after you had built up a cushion. So the idea of an emergency fund is to designate certain money that is not to be used for \"\"whatever you need\"\", but specifically for unforeseen circumstances. Of course there can be debate about what counts as an emergency, but the main point is to distinguish saving for planned future expenses from saving for unplanned future expenses. Note that this doesn't mean the money has to be in a separate account, or saved in any special \"\"way\"\". It just means the money has to be considered by you as an emergency fund. For some people, it may be psychologically useful to put the emergency fund in a separate account that they never withdraw from. But even if you just have all your money in one savings account and you mentally tell yourself, \"\"I don't want to ever let the balance drop below $10,000, just so I have a safety cushion\"\" then you are effectively designating that $10,000 as an emergency fund.\"",
"title": ""
},
{
"docid": "eb83cd6d3176913addf1ddabb97b7f53",
"text": "\"My wife and I maintain seperate accounts. We have the bills split between us so that certain bills are paid by one of us, and other bills by the other. This is not a perfect 50/50 split as we don't make the same amount of money, but comparable enough that neither feels like they're doing all the bills alone. Our investments are similar. That means we each have a pool of money that we can spend on toys or entertainment as we see fit without overspending. Once my bills are paid and my savings are paid for the month, if I want to go buy some DVDs and my wife wants to buy a new lens for the camera, we don't have to agree. We just use our own money and do it. For us that's led to minimal friction or arguments over what to spend money on, simply because we aren't using the same pool. Getting it work requires getting the split right AND having the mindset that the other person is just as entitled to spend their share of the money as you are to spend yours. It really helps to eliminate issues where she spent money that I expected to be able to spend before I could, which can happen in a joint account. (We have no joint accounts, only things like the mortgage are in both our names.) I've been told by more then one person that how we're doing it is \"\"wrong\"\", but it works a lot better for us then trying to combine finances ever did. I think it also helps that we're younger, and this seems far less common amongst older couples.\"",
"title": ""
},
{
"docid": "50a16dcc61998797147b683df541c8cd",
"text": "I think the issue here is you're starting with a criteria that doesn't actually exist in reality. A very small amount of research will uncover a plethora of options for savings accounts that pay far more interest than your basic checking account and don't require you to spend on the balance to earn the interest. The point of saving is to have a pot of money that you can dip in to when you need it, or when you're ready to spend it for it's intended purpose. That pot of money is not supposed to experience a lot of transactions. It shouldn't be commingled with funds that come and go on a daily basis. It doesn't make sense to have checks or a debit card attached to your savings account, because you shouldn't need access to that money that way; not to mention that those two things open the door to fraud on the money that's supposed to be there for you when you need it. Could you put your savings funds in to a checking account, sure. If we lived in a world where savings accounts that don't force you to jump through hoops to avoid fees didn't pay 10x more interest than interest bearing checking accounts that have similar ease of administration, more people may choose to house savings funds in checking accounts; but that's not the world we live in. Thanks to the back and forth in the comments below I'm now more certain of my position that if you want a high yielding checking account you'll have pay fees or initiate a certain number of debit card transactions, or both. No one wants fees, and you shouldn't be spending on your savings in order to earn interest on the balance. It is very easy to juice your savings account to the best rates available.",
"title": ""
},
{
"docid": "ded88302704edac9ccacb87a3e81e195",
"text": "Personally, I keep two regular checking accounts at different banks. One gets a direct deposit totaling the sum of my regular monthly bills and a prorated provision for longer term regular bills like semi-annual car insurance premiums. I leave a buffer in the account to account for the odd expensive electrical bill or rate increase or whatever. One gets a direct deposit of the rest which I then allocate to savings and spending. It makes sense to me to separate off regular planned expenses (rent/mortgage, utility bills, insurance premiums) from spending money because it lets me put the basics of my life on autopilot. An added benefit is I have a failover checking account in the event something happens to one of them. I don't keep significant amounts of money in either account and don't give transfer access to the savings accounts that store the bulk of my money. I wear a tinfoil hat when it comes to automatic bank transfers and account access... It doesn't make sense to me to keep deposits separate from spending, it makes less sense to me to spend off of a savings account.",
"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": "dd33cf6470421860ee098c213b08e658",
"text": "\"I opened several free checking accounts at a local credit union. One is a \"\"Deposit\"\" account where all of my new money goes. I get paid every two weeks. Every other Sunday we have our \"\"Money Day\"\" where we allocate the money from our Deposit account into our other checking accounts. I have one designated as a Bills account where all of my bills get paid automatically via bill pay or auto-pay. I created a spreadsheet that calculates how much to save each Money Day for all of my upcoming bills. This makes it so the amount I save for my bills is essentially equal. Then I allocate the rest of my deposit money into my other checking accounts. I have a Grocery, Household, and Main checking accounts but you could use any combination that you want. When we're at the store we check our balances (how much we have left to spend) on our mobile app. We can't overspend this way. The key is to make sure you're using your PIN when you use your debit card. This way it shows up in real-time with your credit union and you've got an accurate balance. This has worked really well to coordinate spending between me and my wife. It sounds like it's a lot of work but it's actually really automated. The best part is that I don't have to do any accounting which means my budget doesn't fail if I'm not entering my transactions or categorizing them. I'm happy to share my spreadsheet if you'd like.\"",
"title": ""
}
] |
fiqa
|
5d30375112bbf49a66b51136a6dd82de
|
What happens to your ability to borrow money based on our joint finances?
|
[
{
"docid": "d90b5501dc00d0d5a1a79c878c6279d1",
"text": "Several factors are considered in loans as significant as a home mortgage. I believe the most major factors are 1) Credit report, 2) Income, and 3) Employment status If you borrow jointly, all joint factors are included, not just the favorable ones. Some wrinkles this can cause may include: Credit Report - The second person on the loan may have poor credit or no credit. This can/will hurt your rate or even prevent them from being listed on the loan at all, which will also mean you can't include their income. In addition, there are future consequences: that any late payments, default, foreclosure, etc. will be listed on all borrower's reports. If you both have solid work history, great credit, and want to jointly own the home, then there shouldn't be any negatives. If this is not the case, compare both cases (fully, not just rates, as some agents could sneakily say you can get the same rate either way but then not tell you closing costs in one scenario are higher), and pick the one that is best overall. This is just information from my recollection so make sure to verify and ask plenty of questions, don't go forward on assumptions.",
"title": ""
},
{
"docid": "e6992373f1b09191f18ab3bef9dc26b8",
"text": "The bank will consider total of both parties income for the loan qualification. Provided both parties will be listed on the mortgage.",
"title": ""
},
{
"docid": "191114aa87beae0c543c032e10e7c271",
"text": "It might be worth talking to a mortgage broker, even if you don't actually end up doing business with them. Upfront Mortgage Brokers explained Finding an upfront broker near you In a nutshell, upfront brokers disclose what they are paid for their services openly and transparently. Many brokers don't, and you can't be too careful. But a consultation should be free. An experienced broker can help you to navigate the pros and cons mentioned by the other responders. Personally, I would never do business with a broker who can't/won't show me a rate sheet on the day of the lock. That's my personal acid test. You might be surprised by what the broker has to say regarding your situation. That was my experience, anyway.",
"title": ""
}
] |
[
{
"docid": "e5d08e321efc507002eba796822e1af0",
"text": "\"Is there any way through this? Yes, but you're not going to like it. If your friend has guaranteed the loans, then it's your friend's obligation to pay them when the brother-in-law is not cooperating. That's what it means to guarantee a loan. (Obligatory: \"\"Before lending your friends or family money, ask yourself which you need more.\"\")\"",
"title": ""
},
{
"docid": "69f20bd44d5ef7300d1080dd2bf9ccce",
"text": "\"There are different approaches, but here is what we do and what I recommend. Now that you are officially a married couple, open a joint bank account, and eliminate your individual accounts. There are several reasons for this. Having a joint account promotes unity and teamwork. When you only have a joint account, you do not have \"\"your income\"\" and \"\"her income,\"\" or \"\"your expenses\"\" and \"\"her expenses.\"\" You work together in everything. You discuss your goals and set your household budget together. If one of you makes more money than the other, that person is no longer \"\"worth more,\"\" because your incomes are pooled together. If one person with a higher income has more in their account than the other person does, it can lead to envy, which you do not want in your marriage. Having a joint account is more efficient and makes more sense. With separate accounts, who pays the rent/mortgage? Who pays the utilities, or buys the food? If you have separate accounts, it takes a lot of work to worry about what is \"\"fair\"\" when deciding how to divide up the expenses. With a single household budget and a joint account, you decide together what the household expenses are, and they get paid from one account. If one of you has debt, you both have debt. You work together to get it paid off and strengthen your financial situation in the process. Having a joint account forces you to discuss your finances together. Working toward common financial goals together is crucial in a strong marriage, but if you maintain your separate accounts, you might be tempted to put off these discussions until you are forced to by life circumstances. It is better to work together from the start, and joining your finances facilitates that. You are intending your marriage to last. Live your financial life like you believe that you are a team for life. If you live in a community property state, separate accounts are a fiction anyway; everything is treated as if it was pooled together in the event of a divorce. I understand that if you are used to having your own money, it can be difficult to give up that sole control over your income, but in my opinion, it is worth it. You will certainly hear of examples from couples who maintain separate accounts and make it work. In my humble opinion, combining your finances completely is easier to do right.\"",
"title": ""
},
{
"docid": "2cd417b896d953ed5d5f667607a01b85",
"text": "There is no issue - and no question - if you get married. The question is only relevant in the event that you go separate ways. Should that happen, you imply that you would want to refund whatever amount your girlfriend has paid toward the mortgage. The solution, then, would seem to be to exempt her from any payments, as you will either give that money back to her (if you break up) or make her a co-owner of the condo (if you get married). If you actually need her contributions to the monthly nut, you could give her a written agreement whereby you would refund her money (plus interest) at her discretion.",
"title": ""
},
{
"docid": "c586d75c50139784c3060279ab46c069",
"text": "Myself and my partner do things a little differently to most. We split accommodation and utilities payments by net income proportion to ensure that we both have the same amount of spending money. For example; The really important bit is net income. We take off a whole bunch of payments, e.g; Our contributions go into a joint account and the rest is our money to spend. The upshot is that we both get to enjoy the same minimum quality of life because we both get the same amount to spend at the bar.",
"title": ""
},
{
"docid": "1a9a715a99e75fda4a54ce531c8a5a61",
"text": "'If i co-sign that makes me 100% liable if for any reason you can't or won't pay. Also this shows up on a credit report just like it's my debt. This limits the amount i can borrow for any reason. I don't want to take on your debt, that's your business and i don't want to make it mine'.",
"title": ""
},
{
"docid": "d41d68ada443c126523e4d6cddd74138",
"text": "Idk if I would ask on reddit, personal finance will tell you the only way is joint bank accounts and relationship advice will tell you to break up. Personally I will always want my own bank account, with a joint account for a mortgage or utilities. I think it depends on if you are both financially savvy, if one of you aren't you might want to have a joint account to keep an eye on spending. I think this site give you a good pro/con: https://www.thebalance.com/should-you-have-joint-or-separate-bank-accounts-1289664",
"title": ""
},
{
"docid": "22f551971d12e3540a68eb3a2b08b774",
"text": "Generally speaking, granting rights to one bank account (e.g. making a joint account) does not extend rights to other accounts or otherwise let one joint owner create new obligations on the other owner (e.g. opening a line of credit that the other owner must pay for), except to the extent of the joint account. I assume there are no UK rules that would change this feature. The other party can of course withdraw all the money without need for your approval. This also means that the joint account could be exposed to all the creditors of either party. If your account joint tenant has huge debts, the creditors could theoretically look to the joint account for satisfaction. At least, that would be an issue under US law. Frankly, it may be simpler to get a separate account for the other person (if possible) and make transfers with online banking. It could also make sense to get a rechargeable banking card, if those are in the UK, which works like a debit card and can be reloaded through various means (sometimes a call, sometimes online deposits, sometimes in physical stores). There may be fees to getting such a card or a second account, of course. The benefit is that the cardholder has no access to your account and you control recharging. Such cards are widely available in the US to people who otherwise would not qualify for traditional bank accounts. Note also the FATCA complication with adding a US person to your account. My understanding is that a number of non-US banks will simply close the accounts of Americans, rather than deal with FFI hassles under FATCA.",
"title": ""
},
{
"docid": "4a914636434e452ac8d108f7450b5140",
"text": "I can't quite follow your question, so I'm proceeding under the following assumptions: - You paid £31,000 - Your partner paid £4,242 - You have at least one mortgage, which you both pay equally. If the relationship terminates, sell the property. You are reimbursed £31,000 and your partner is reimbursed £4,242. Any remaining proceeds from the sale are split 50-50. If the result is a net loss (i.e. you are underwater on your mortgage), you split the debt 50-50. If you are not both paying the same toward the mortgage, I'd split the profit or loss according to how much you each pay toward the mortgage. Of course, this is not the only possible way you can split things up. You can use pretty much any way you both think is fair. For example, maybe you should get more benefits from a profit because you contributed more up-front. The key thing, though, is that you must both agree in writing, in advance. This is reasonable; this is what I did, for example. Note that if the relationship ends, one or the other of you may wish to keep the property. I'd suggest including a clause in your written agreement simply disallowing this; specify criteria to force a sale. But I know lots of people are happy to allow this. They treat that situation as a forced sale from both people to one person. For example, if your partner chooses to stay in the house, he or she must buy the property from you at prevailing market rates.",
"title": ""
},
{
"docid": "ec55ffc0afb013f63119e61c57879329",
"text": "\"Personally, I avoid making business deals with friends and relatives. There's just too much of a possibility that things can go wrong. Let's assume that you're honest people and you have no intention of cheating your mother-in-law. Still, all sorts of things could happen that could make it difficult for you to repay the loan. You could lose your job. You could get some big medical expense. Etc. Then what happens? Then your financial problems become family problems. There's a strong temptation when people borrow from relatives to make paying the loan the lowest priority in their budget. \"\"I know I promised to pay \\$X per month, but things are really tight right now and Mom should understand.\"\" Maybe she does understand and can manage without it. But maybe not. And then it becomes a family fight. \"\"You promised you'd pay it back.\"\" \"\"And we will, we're having a hard time right now. Can't you just give us a break?\"\" Etc. Or she might have some extra expense, and say, \"\"Hey, can't you pay a little more this month? I really need some extra cash.\"\" \"\"I'm sorry, we're struggling just to make the regular payments, we can't.\"\" \"\"Well I was willing to loan you all this money. The least you could do is pay me back when I need it.\"\" Etc. You can end up ruining family relationships over money. Your wife can find herself in the position of having to choose whether to side with her mother or her husband. Etc. I'm sure plenty of people do things like this and it works out just great. But there are big risks. And by the way, apparently this was your idea, not your mother-in-laws. I wonder what her reaction is. Is she eager to help out her daughter and son-in-law and had nothing in particular to do with the money anyway? Or is she feeling very imposed on? It's one thing to ask relatives to let you borrow their car for the weekend. Asking someone to loan you $50,000 is a very big request. If one of my kids asked me to loan them $50,000 from my retirement fund, I'd consider that a very presumptuous request. (Unless they needed the money for life-saving surgery for my grandchild or some such.)\"",
"title": ""
},
{
"docid": "2c0081f11b746bf57c7e9a1076671560",
"text": "Basically, what you describe exists in many countries - not in the USA though. In Europe, people have checking accounts with allowed overdraft, typically three month net salaries. You can just this money any day as you like, and pay it back - completely or partially - any day as you like. Interest is calculated for each day on the amount used that day; and the collateral is 'future income', predicted / expected from previous income. In the USA, credit cards have taken its place, with stricter different rules and limitations. In addition, many of the extra rules in loans were invented to take advantage of the ignorance or situation of the borrower to make even more money. For example, applying extra payments to future due payments instead of to the principal makes that principal produce more interest while the extra payments just sit around.",
"title": ""
},
{
"docid": "b54546c7819bdf923482fc996944adb5",
"text": "\"Does the money lending between us need to be reported in our tax reports? No. Will he be taxed more because of lending the money to me? Yes. Will I be taxed more because of borrowing the money from him? No. How shall we report it so as to minimize our taxes? You cannot. What is reported on your tax returns is the income. A loan is not an income, so nothing gets reported. However, when you repay the loan, assuming it has interest, the lender has income: the interest. Interest income is reported on schedule B of the regular (1040/1040A) tax return (or, in the case of non-resident for tax purposes, on line 9 of 1040NR). It is taxed as ordinary income, and since you're both foreigners - the lender should look into the treaty provisions that might be relevant. Generally it is not exempt from taxable income based on treaty exemptions for students (which is only for earned income), but there might be other rules in the treaty regarding interest income. If there's no (fair market or higher) interest, then there's \"\"assumed\"\" interest at the IRS mandated rates, which is considered a gift. If it amounts to more than the yearly gift exemption, the lender may be liable for gift tax (depending on the lender's and your status, and again - see treaties). \"\"Loan\"\" without an obligation to repay and without actual repaying will also be considered a gift for tax purposes. If the lender has no intentions of having the loan repaid (i.e.: making a gift), it will be better to pay your tuition bills instead of actually giving you the money: tuition is exempt from gift tax. Talk to a CPA/EA licensed in your state for a proper tax advice on this issue.\"",
"title": ""
},
{
"docid": "f3c3d8a0e3e2f1fc4a8f716e438da535",
"text": "After more than 30 years of married life the only thing that has worked is to partner with someone who is your opposite. I am a saver, my wife is a spender. Each pay period we establish a budget. Only those things to which we both agree go into the budget. If we violate the budget the other one holds the violator accountable. Be sure to put some 'slop' into the budget, you cannot perfectly predict the future. The budget can, and will, change throughout the pay period, but only if both agree to the change.",
"title": ""
},
{
"docid": "0f4799662e6609d40e0197bf2d5d1714",
"text": "Other than the two answers (both of which recommend waiting until marriage to actually combine finances, and which I agree with), there's the general question: how does a couple choose to manage finances? In our marriage, it's me. I'm more numbers-minded than my spousal-unit. I'm also more a sticker for time. I work and spousal-unit does not. We had some good friends -- upon marriage, spouse1 felt like he should take on the role. He went on a several-week trip (leaving spouse2 at home), and upon returning home asked spouse2 about the late fees. Spouse2 was appalled. Spouse2 ended up keeping the job of managing household finances. There's enough pieces to the puzzle that it can be divided any way you choose -- any way that works for you and your spouse/virtual-spouse. One other point: talk about how to manage your money, before you marry. Dave Ramsey recommends a strict monthly budget. I like listening to Dave Ramsey, but we've never had a budget. Instead, we agreed during marriage counseling two things:",
"title": ""
},
{
"docid": "9021ee044ffe953dad127d98ff65fa9e",
"text": "\"I don't think it would be counted as income, and if it's a short-term loan it doesn't really matter as the notional interest on the loan would be negligible. But you can avoid any possible complications by just having two accounts in the name of the person trying to get the account benefits, particularly if you're willing to just provide the \"\"seed\"\" money to get the loop started.\"",
"title": ""
},
{
"docid": "08bddd891e22c3d1673a1357cb9e00c9",
"text": "I am in Australia, but I think the banks in the UK would use similar wrkings. Your options 1 and 2 are basically no. Why would the bank consider your wife to be paying you rent when you live together. These are the type of practices that led to the GFC, and since then practices have been tightened. Regarding option 3, yes banks do take into consideration rent in their analysis of your loan. However, they would not include the full rent in their calculations, but about 70% to 75% of the full rent. This allows for loss of rent during vacant periods and adds a safety factor in their caluclations. But they will not include the rent itself, you would have to have other income as well to support your loan. Saying that, we do have Low Doc Loans in Australia (loans with little documentation required to get a loan). With these loans you basically have to make a declaration that you are telling the truth regarding your income sources and you can only usually borrow a lower LVR as these loans are seen as a bigger risk. These type of loans have also been tightened up since the GFC.",
"title": ""
}
] |
fiqa
|
a1c56f1a8ba343ef6bb510b62d7c5f95
|
What funds were closed during or after the recent recessions?
|
[
{
"docid": "8d9810fb83e7253b932c4b16a16d9e55",
"text": "\"Yes, many hedge funds (for example) did not survive 2008-2009. But hedge funds were failing both before and after that period, and other hedge funds thrived. Those types of funds are particularly risky because they depend so much on leverage (i.e. on money that isn't actually theirs). More publically-visible funds (like those of the big-name index fund companies) tended not to close because they are not leveraged. You say that \"\"a great many companies\"\" failed during the recession, but that's not actually true. I can't think of more than a handful of publically-traded companies that went bankrupt. So, since the vast majority of publically-traded companies stayed in business, their stocks kept some/most of their value, and the funds that owned those stocks stayed afloat. I personally did not see a single index fund that went out of business due to the recession.\"",
"title": ""
}
] |
[
{
"docid": "5332ab4fcf9969669a3adebdc5e92194",
"text": "\"Bloomberg suggests that two Fidelity funds hold preferred shares of Snapchat Inc.. Preferred shares hold more in common with bonds than with ordinary stock as they pay a fixed dividend, have lower liquidity, and don't have voting rights. Because of this lower liquidity they are not usually offered for sale on the market. Whether these funds are allowed to hold such illiquid assets is more a question for their strategy document than the law; it is completely legal for a company to hold a non-marketable interest in another, even if the company is privately held as Snapchat is. The strategy documents governing what the fund is permitted to hold, however, may restrict ownership either banning non-market holdings or restricting the percentage of assets held in illiquid instruments. Since IPO is very costly, funds like these who look to invest in new companies who have not been through IPO yet are a very good way of taking a diversified position in start-ups. Since they look to invest directly rather than through the market they are an attractive, low cost way for start-ups to generate funds to grow. The fund deals directly with the owners of the company to buy its shares. The markdown of the stock value reflects the accounting principle of marking to market (MTM) financial assets that do not have a trade price so as to reflect their fair value. This markdown implies that Fidelity believe that the total NPV of the company's net assets is lower than they had previously calculated. This probably reflects a lack of revenue streams coming into the business in the case of Snapchat. edit: by the way, since there is no market for start-up \"\"stocks\"\" pre-IPO my heart sinks a little every time I read the title of this question. I'm going to be sad all day now :(.\"",
"title": ""
},
{
"docid": "a519077e8b48ef99b0d20e77a981deb0",
"text": "Thank you fgunthar. I was not aware of ILWs, but I agree - this is also the closest thing I've found. As for starting a fund, I'm unfortunately nowhere near that point. But, my curiosity seems to inevitably lead me to obscure areas like ILWs.",
"title": ""
},
{
"docid": "046d9cdbbb9b9aa2eb877b718d47e705",
"text": "Try this site for the funds http://www.socialinvest.org/resources/mfpc/ I'm not aware of any etfs. I'm sure some exist though.",
"title": ""
},
{
"docid": "d551a112c05e7e4ad3cf68a202c506dc",
"text": "That is such a vague statement, I highly recommend disregarding it entirely, as it is impossible to know what they meant. Their goal is to convince you that index funds are the way to go, but depending on what they consider an 'active trader', they may be supporting their claim with irrelevant data Their definition of 'active trader' could mean any one or more of the following: 1) retail investor 2) day trader 3) mutual fund 4) professional investor 5) fund continuously changing its position 6) hedge fund. I will go through all of these. 1) Most retail traders lose money. There are many reasons for this. Some rely on technical strategies that are largely unproven. Some buy rumors on penny stocks in hopes of making a quick buck. Some follow scammers on twitter who sell newsletters full of bogus stock tips. Some cant get around the psychology of trading, and thus close out losing positions late and winning positions early (or never at all) [I myself use to do this!!]. I am certain 99% of retail traders cant beat the market, because most of them, to be frank, put less effort into deciding what to trade than in deciding what to have for lunch. Even though your pension funds presentation is correct with respect to retail traders, it is largely irrelevant as professionals managing your money should not fall into any of these traps. 2) I call day traders active traders, but its likely not what your pension fund was referring to. Day trading is an entirely different animal to long or medium term investing, and thus I also think the typical performance is irrelevant, as they are not going to manage your money like a day trader anyway. 3,4,5) So the important question becomes, do active funds lose 99% of the time compared to index funds. NO! No no no. According to the WSJ, actively managed funds outperformed passive funds in 2007, 2009, 2013, 2015. 2010 was basically a tie. So 5 out of 9 years. I dont have a calculator on me but I believe that is less than 99%! Whats interesting is that this false belief that index funds are always better has become so pervasive that you can see active funds have huge outflows and passive have huge inflows. It is becoming a crowded trade. I will spare you the proverb about large crowds and small doors. Also, index funds are so heavily weighted towards a handful of stocks, that you end up becoming a stockpicker anyway. The S&P is almost indistinguishable from AAPL. Earlier this year, only 6 stocks were responsible for over 100% of gains in the NASDAQ index. Dont think FB has a good long term business model, or that Gilead and AMZN are a cheap buy? Well too bad if you bought QQQ, because those 3 stocks are your workhorses now. See here 6) That graphic is for mutual funds but your pension fund may have also been including hedge funds in their 99% figure. While many dont beat their own benchmark, its less than 99%. And there are reasons for it. Many have investors that are impatient. Fortress just had to close one of its funds, whose bets may actually pay off years from now, but too many people wanted their money out. Some hedge funds also have rules, eg long only, which can really limit your performance. While important to be aware of this, that placing your money with a hedge fund may not beat a benchmark, that does not automatically mean you should go with an index fund. So when are index funds useful? When you dont want to do any thinking. When you dont want to follow market news, at all. Then they are appropriate.",
"title": ""
},
{
"docid": "a59b5ee28bfa32e75c8c0dafabfc958f",
"text": "Well, there are many reasons that Lehman and Bear were allowed to go under. Lehman had much more exposure to real estate than Goldman and JP, and they were also the very first domino to fall, back when people didn't think the crisis was a full-blown crisis yet. As for Bear? I think the Fed harbored some hard feelings after the LTCM thing.",
"title": ""
},
{
"docid": "1417779afe385704661db0ac0cd35bc2",
"text": "\"Since these indices only try to follow VIX and don't have the underlying constituents (as the constituents don't really exist in most meaningful senses) they will always deviate from the exact numbers but should follow the general pattern. You're right, however, in stating that the graphs that you have presented are substantially different and look like the indices other than VIX are always decreasing. The problem with this analysis is that the basis of your graphs is different; they all start at different dates... We can fix this by putting them all on the same graph: this shows that the funds did broadly follow VIX over the period (5 years) and this also encompasses a time when some of the funds started. The funds do decline faster than VIX from the beginning of 2012 onward and I had a theory for why so I grabbed a graph for that period. My theory was that, since volatility had fallen massively after the throes of the financial crisis there was less money to be made from betting on (investing in?) volatility and so the assets invested in the funds had fallen making them smaller in comparison to their 2011-2012 basis. Here we see that the funds are again closely following VIX until the beginning of 2016 where they again diverged lower as volatility fell, probably again as a result of withdrawals of capital as VIX returns fell. A tighter graph may show this again as the gap seems to be narrowing as people look to bet on volatility due to recent events. So... if the funds are basically following VIX, why has VIX been falling consistently over this time? Increased certainty in the markets and a return to growth (or at least lower negative growth) in most economies, particularly western economies where the majority of market investment occurs, and a reduction in the risk of European countries defaulting, particularly Portugal, Ireland, Greece, and Spain; the \"\"PIGS\"\" countries has resulted in lower volatility and a return to normal(ish) market conditions. In summary the funds are basically following VIX but their values are based on their underlying capital. This underlying capital has been falling as returns on volatility have been falling resulting in their diverging from VIX whilst broadly following it on the new basis.\"",
"title": ""
},
{
"docid": "9d9444595e7e45564762ff58a6c29bc5",
"text": "\"While this figure is a giant flashing-red beacon of inflation, it should be noted that this has been happening during a period of unprecedented writedowns and deleveraging of \"\"hypothetical\"\" assets -- assets that exist on paper only. The result, given the way QE funds have been injected into the market (eg TAF), is that people who *should've* lost money get to tread water, and the inflation is not apparent in the rest of the economy (unless you are actually aware of the severe repercussions which should've happened but didn't). Also, and separately, I'm not so sure another round of QE is coming.\"",
"title": ""
},
{
"docid": "e3cc2326e8fa93452b5c41bfe54f0584",
"text": "Right now, the unrealized appreciation of Vanguard Tax-Managed Small-Cap Fund Admiral Shares is 28.4% of NAV. As long as the fund delivers decent returns over the long term, is there anything stopping this amount from ballooning to, say, 90% fifty years hence? I'd have a heck of a time imagining how this grows to that high a number realistically. The inflows and outflows of the fund are a bigger question along with what kinds of changes are there to capital gains that may make the fund try to hold onto the stocks longer and minimize the tax burden. If this happens, won't new investors be scared away by the prospect of owing taxes on these gains? For example, a financial crisis or a superior new investment technology could lead investors to dump their shares of tax-managed index funds, triggering enormous capital-gains distributions. And if new investors are scared away, won't the fund be forced to sell its assets to cover redemptions (even if there is no disruptive event), leading to larger capital-gains distributions than in the past? Possibly but you have more than a few assumptions in this to my mind that I wonder how well are you estimating the probability of this happening. Finally, do ETFs avoid this problem (assuming it is a problem)? Yes, ETFs have creation and redemption units that allow for in-kind transactions and thus there isn't a selling of the stock. However, if one wants to pull out various unlikely scenarios then there is the potential of the market being shut down for an extended period of time that would prevent one from selling shares of the ETF that may or may not be as applicable as open-end fund shares. I would however suggest researching if there are hybrid funds that mix open-end fund shares with ETF shares which could be an alternative here.",
"title": ""
},
{
"docid": "e400ac547517161dca92438aa601eba3",
"text": "\"Thanks for the quick reply. I'd like to point out the post that triggered me to make this request in public is - Reddit post: http://www.reddit.com/r/finance/comments/naboa/fears_persist_that_the_us_labor_market_cannot_be/ Specific response: http://www.reddit.com/r/finance/comments/naboa/fears_persist_that_the_us_labor_market_cannot_be/c37kj2t The sidebar says that political debate is not permitted in this forum, and until recently I would say this request had been adhered to. But this particular FT article, like others, can be dissected politically, and therefore shouldn't be in r/finance. It belongs in r/economics. Unfortunately, any posts that relate to current macroeconomic circumstances, especially central banking and global unemployment, will invite the Ron-Paulites and they really don't add any sort of value to r/finance, and they do politicize the forum and debate. I don't think ZeroHedge _ever_ has a place in this forum. The source is not credible and always has too much of a political angle to be in a forum that has declared itself as \"\"not a place for politics.\"\"\"",
"title": ""
},
{
"docid": "65ee8fe1e4d415e65ad72de915f56166",
"text": "I would also like to have this discussed, alongside the issue that the US has gone into some type of [recession](https://upload.wikimedia.org/wikipedia/commons/c/c0/US_Treasuries_to_Federal_Funds_Rate.png) roughly every ten year. So with the prospect of a possible recession with a close to 0% cash rate looming, what tools will the FED employ to keep Banks borrowing while maintaining inflation rates?",
"title": ""
},
{
"docid": "9c913aa51881967e18ada87b98694a77",
"text": "\"It sounds like this is an entirely unsettled question, unfortunately. In the examples you provide, I think it is safe to say that none of those are 'substantially identical'; a small overlap or no overlap certainly should not be considered such by a reasonable interpretation of the rule. This article on Kitces goes into some detail on the topic. A few specifics. First, Former publication 564 explains: Ordinarily, shares issued by one mutual fund are not considered to be substantially identical to shares issued by another mutual fund. Of course, what \"\"ordinarily\"\" means is unspecified (and this is no longer a current publication, so, who knows). The Kitces article goes on to explain that the IRS hasn't really gone after wash sales for mutual funds: Over the years, the IRS has not pursued wash sale abuses against mutual funds, perhaps because it just wasn’t very feasible to crack down on them, or perhaps because it just wasn’t perceived as that big of an abuse. After all, while the rules might allow you to loss-harvest a particular stock you couldn’t have otherwise, it also limits you from harvesting ANY losses if the overall fund is up in the aggregate, since losses on individual stocks can’t pass through to the mutual fund shareholders. But then goes to explain about ETFs being very different: sell SPY, buy IVV or VTI, and you're basically buying/selling the identical thing (99% or so correlation in stocks owned). The recommendation by the article is to look at the correlation in owned stocks, and stay away from things over 95%; that seems reasonable in my book as well. Ultimately, there will no doubt be a large number of “grey” and murky situations, but I suspect that until the IRS provides better guidance (or Congress rewrites/updates the wash sale rules altogether!), in the near term the easiest “red flag” warning is simply to look at the correlation between the original investment being loss-harvested, and the replacement security; at correlations above 0.95, and especially at 0.99+, it’s difficult to argue that the securities are not ”substantially identical” to each other in performance. Basically - use common sense, and don't do anything you think would be hard to defend in an audit, but otherwise you should be okay.\"",
"title": ""
},
{
"docid": "bd36cc84ea10cfdc1920099d015b5085",
"text": "Why don't you look at the actual funds and etfs in question rather than seeking a general conclusion about all pairs of funds and etfs? For example, Vanguard's total stock market index fund (VTSAX) and ETF (VTI). Comparing the two on yahoo finance I find no difference over the last 5 years visually. For a different pair of funds you may find something very slightly different. In many cases the index fund and ETF will not have the same benchmark and fees so comparisons get a little more cloudy. I recall a while ago there was an article that was pointing out that at the time emerging market ETF's had higher fees than corresponding index funds. For this reason I think you should examine your question on a case-by-case basis. Index fund and ETF returns are all publicly available so you don't have to guess.",
"title": ""
},
{
"docid": "2d664e07aaf29064a1f9ccdfd68672f5",
"text": "\"I used the term \"\"bond fund\"\" to mean a mutual fund which invests in bonds. Vanguard has a list. If you live in PA, OH, MA, FL, CA, NJ, or NY there are tax free funds you can invest in on that list.\"",
"title": ""
},
{
"docid": "b30b3318b9b323fa772c7dba51f37718",
"text": "Good analysis/point, except you're missing the fact that most pensions allocate only a tiny fraction of their overall portfolios to hedge funds. So say you have a $2 billion pension fund, maybe $50 million of that is hedge funds. So basically, yes the pools of money will get smaller, but there's a lot of the overall pie that the hedge funds aren't eating (yet).",
"title": ""
},
{
"docid": "0da2ace87efea30d3c2c957fdb254806",
"text": "If you're talking about TRUPS (Trust Preferred securities) these are all but banned for new issuance under Dodd-Frank and other regulations. Although some companies still have outstanding TRUPS most have either matured, defaulted or been refinanced into some other form of debt. Its not really an available form of capital raising anymore.",
"title": ""
}
] |
fiqa
|
e8e5bc82e66d50d5dc83a423174d2377
|
Advantages/Disadvantages to refinancing online?
|
[
{
"docid": "726a20f47f3f5bf128c943ade3684687",
"text": "If you can deal with phone calls instead of a face to face meeting, for the average person with an average refinance online tools just offer another way to shop for deals. For new mortgages, I think having a person you can meet face to face will avoid problems, but for just a simple refi, online is one of the places you should check. Compete your current mortgage company, your bank (hopefully credit union), a local broker or two and the online places. The more competition you have, the more power you have in making a good choice.",
"title": ""
},
{
"docid": "b0b510c62b5a3e4373f767e7fca65d71",
"text": "For what its worth, I recently closed on a 30 year refinance mortage with an agent I found through Zillow. The lender has a perfect 5/5 reputation score, whose office was located within 5 miles of my house, and as suggested by justkt on MrChrister's response, I checked out the business on the better business bureau and its online presence prior to going forward with the bank. The process was relatively painless, and the APR and closing costs were less than my previous loan with a federal credit union which I've used in the past. I can't say if the bank I'll be using going forward is as good as the one I've used in the past, but overall I'm quite happy with it. I never met the individual in person but this saved both of us a fair amount of time honestly.",
"title": ""
},
{
"docid": "dbf2539fe242822b20c9de9c8b5171b8",
"text": "If you've been in your house for a few years (and have built some equity up) and the market is active in your area, online is probably fine. The local banks will be better if it's not obvious to someone in Bangor, ME that your neighborhood in San Diego is worth substantially more than the crappy area 2 miles away. I've had 3 mortgages, one from a regional bank, one from a broker-sourced national mortgage company and another from a local bank. The bigger banks had better statements and were easier to do stuff with online. The smaller bank has been a better overall value, because the closing costs were low and they waived some customary fees. In my case, the national mortgage company had a better APR, but my time horizon for staying in the house made the smaller bank (which had a competitive APR, about a half point higher than the lowest advertised) a better value due to much lower up-front costs.",
"title": ""
}
] |
[
{
"docid": "59c2fb029f2815e8ac67daeccacb2cd3",
"text": "\"I haven't heard 30-year mortgages called unwise. As @jared said, the shorter terms often will be cheaper if you are going to pay off within that term anyway, but the extra cost of the 30 may still be justified because it gives you the \"\"safety net\"\" of being able to fall back to the lower payment if money gets tight. Cheap insurance if you might need that insurance. That wasn't something I was worried about, so I took a 20-year, later refinanced as 15-year, and got a slightly better rate by doing so. Consider how long you expect to own this house, and shop for the best deal you can find. Remember to figure points into the real cost the loan. There are calculators on many bank/credit-union websites that can help you do this comparison.\"",
"title": ""
},
{
"docid": "2120e469025fbd901c6c37965d30050c",
"text": "Do you know how SoFi's business model works? They're usually pretty conservative with their loans and refinancing. But I guess if they were looking to expand into riskier loans then it sounds like they've got some red tape that'd hold them back. Thank you for the explanation, much appreciated.",
"title": ""
},
{
"docid": "8dfd8f9551cb41ca84b421e899594d2c",
"text": "Our mortgage provider actually took the initiative to send us a refinance package with no closing costs to us and nothing added to the note; took us from a 30-year-fixed ~6.5% note to a 15-year-fixed ~5% note, and dropped the monthly payment in the process. You might talk to your existing lender to see if they would do something like that for you; it gives them a chance to keep your business, and it cuts your costs.",
"title": ""
},
{
"docid": "dec73241df543467b6a36a3a7dc5cb31",
"text": "Is this an unusual amount to pay for refinancing a home loan? Yes, I would say it seems pretty high. Although credit unions usually have pretty good deals, I would shop around a bit. Is refinancing not worth it if you might move in the next year or two? Totally not worth it if you'll be moving in a year or two. You need to think realistically about what you could sell your house for though. If you bought it 4 years ago, it's likely gone down in value significantly (depending on your locale). Are you prepared to take a significant loss to sell? If not, you might be forced to stick it out for 3-5 years or more.",
"title": ""
},
{
"docid": "e1b1556891c640ff506cac3ad191e843",
"text": "Investopedia has a nice article on this here The Key benefit looks like better returns with lower capital. The disadvantage is few brokers offering that can be trusted. Potentially lower return due to margins / spreads. Higher leverage and can become an issue.",
"title": ""
},
{
"docid": "277d80fd228820ac4ab713d9f9397aa7",
"text": "Nope. If there is no prepayment penalty go for it. Find another credit source to use (like a credit card you pay off every month) if you want to get a long history. Saving money on interest is more important to me than minutia in a credit score.",
"title": ""
},
{
"docid": "aa12cba86d52e3dec51271ecfec2688a",
"text": "I can't think of any more negatives apart from what you mentioned, but the positives might include higher cost base for when you sell the place (this only applies in Australia if it is an investment property) thus having to pay less tax on the capital gains, and being able to borrowing extra funds which may help with your cashflow (especially if you keep the extra funds in an 100% offset account so your interest payable is not increased until you really need the extra funds).",
"title": ""
},
{
"docid": "b2bbed915d44426de310febe8fe1942d",
"text": "\"If you mortgage after the fact you will usually pay an extra .25% higher on the interest rate because a \"\"cash out\"\" refinance is treated as riskier than a new home purchase mortgage. You might save enough on the purchase price of the home with a cash offer to make that higher interest rate worth it, but in most cases, if you are planning to hold the loan for a long time, it's best to get that mortgage at the time of purchase. You might be able to get the same deal with an offer that says you will pay cash if there are any problems getting the loan approved.\"",
"title": ""
},
{
"docid": "3d0fe3e6e7002ef41d8402ddc82e230d",
"text": "\"In practical terms, these days, a credit union IS a small \"\"savings and loan\"\" bank -- the kind of bank that used to exist before bankers started making money on everything but writing loans. They aren't always going to offer higher interest and/or cheaper loans than the bank-banks, but they're almost always going to be more pleasant to deal with since they consider the depositors and borrowers their stockholders, not just customers. There are minor legal differences (different insurance fund, for example), and you aren't necessarily eligible to open an account at a randomly-chosen credit union (depending on how they've defined the community they're serving), but they will rarely affect you as an account holder. The main downside of credit unions is that, like other small local banks, they will only have a few branches, usually within a limited geographic area. However, I've been using a credit union 200 miles away (and across two state lines on that route, one if I take a large detour) for decades now, and I've found that between bank-by-mail, bank-by-internet, ATM machines, and the \"\"branch exchange\"\" program (which lets you use branches of participating credit unions as if they were branches of your own) I really haven't felt a need to get to the branch. I did find that, due to network limitations of $50K/CU/day, drawing $200,000 worth of bank checks on a single day (when I purchased the house) required running around to four separate branch-exchange credit unions. But that's a weird situation where I was having trouble beating the actual numbers out of the real estate agents until a few days before the sale. And they may have relaxed those limitations since... though if I had to do it again, I'd consider taking a scenic drive to hit an actual branch of my own credit union. If you have the opportunity to join a credit union, I recommend doing so. Even if you don't wind up using it for your \"\"main\"\" accounts, they're likely to be people you want to talk to when you're shopping for a loan.\"",
"title": ""
},
{
"docid": "4c341364afeab9a693ed255b3f300d17",
"text": "\"This is the meat of your potato question. The rephrasing of the question to a lending/real estate executive such as myself, I'd ask, what's the scenario? \"\"I would say you're looking for an Owner Occupied, Super Jumbo Loan with 20% Down or $360K down on the purchase price, $1.8 mil purchase price, Loan Amount is ~$1.45 mil. Fico is strong (assumption). If this is your scenario, please see image. Yellow is important, more debt increases your backend-DTI which is not good for the deal. As long as it's less than 35%, you're okay. Can someone do this loan, the short answer is yes. It's smart that you want to keep more cash on hand. Which is understandable, if the price of the property declines, you've lost your shirt and your down payment, then it will take close to 10 years to recover your down. Consider that you are buying at a peak in real estate prices. Prices can't go up more than they are now. Consider that properties peaked in 2006, cooled in 2007, and crashed in 2008. Properties declined for more than 25-45% in 2008; regardless of your reasons of not wanting to come to the full 40% down, it's a bit smarter to hold on to cash for other investments purposes. Just incase a recession does hit. In the end, if you do the deal-You'll pay more in points, a higher rate compared to the 40% down scenario, the origination fee would increase slightly but you'll keep your money on hand to invest elsewhere, perhaps some units that can help with the cashflow of your home. I've highlighted in yellow what the most important factors that will be affected on a lower down payment. If your debt is low or zero, and income is as high as the scenario, with a fico score of at least 680, you can do the deal all day long. These deals are not uncommon in today's market. Rate will vary. Don't pay attention to the rate, the rate will fluctuate based on many variables, but it's a high figure to give you an idea on total cost and monthly payment for qualification purposes, also to look at the DTI requirement for cash/debt. See Image below:\"",
"title": ""
},
{
"docid": "ff0b15f9cbb3b8000b376045467a9566",
"text": "As for refinancing: Many institutions charge up-front fees when doing any type of vehicle loan. Typically this is in the neighborhood of 1% the value of the loan, with a floor of $100 (although this may vary by lender). However, for the loan the be secured by the vehicle, the principle value must be less than the collateral value. In your case, this means there is a collateral shortfall of $4,000. When working with a traditional bank, you would have two options: pay the difference up front (reducing the principle value of the loan), or obtaining a separate loan for the difference. This separate loan would often have a higher interest rate unless you have some other form of collateral to secure it with. I doubt CarMax would do a separate loan. All that being said, if you plan on selling the vehicle within the next twelves months, don't bother refinancing. It won't be worth the hassle.",
"title": ""
},
{
"docid": "1907a57fe43b6cf6cbaa2ac2986d6ec0",
"text": "If you're a bit into the loan, then they're probably hoping that you'll take longer to pay off the loan. Is there a fee for refinancing the loan? If so, be sure to take that into account. A smart way to approach it (assuming that the fees are low or zero) would be to continue making the same payment you had been before the refinance. Then you'll end your loan ahead of schedule. (This assumes that there's no prepayment penalty.)",
"title": ""
},
{
"docid": "0e6906c71943738fc5f8b7d44652ea27",
"text": "Here are the pros and cons and an analytical framework for making a decision. Pros of walking away: Cons: Here's the framework: compare the value of first and second sections for you [1] http://www.nytimes.com/2009/07/30/business/30serviceside.html?_r=0 [2] http://www.mortgagecalculator.org/",
"title": ""
},
{
"docid": "d6d520bc08473033ee1b797e3b83e260",
"text": "Start with the list of mortgage companies approved to work in your area. There are 80 within 10 miles of my house, and more than 100 in my county. Pick ones you know because they are established businesses in your area, region, or even nationally. A good place to start might be with your current lender. The risk you seem to be worried about is a scam or a trick. In the recent past the scams were ones where the home owner didn't understand teaser rates, and the risk of interest only and pick-your-payment loans. The simpler the bells and whistles, the less likely you are to be embarking on a risky transaction. It can't hurt to ask an organization like the BBB or neighbors, but realize that many people loved their exotic mortgage until the moment it blew up in their face. So for 5 years your neighbor would have raved about their new mortgage until they discovered how underwater they were. Regarding how smoothy the transaction is accomplished, is hard to predict. There is great variation in the quality of the loan officers, so a great company can have rookie employees. Unless you can get a recommendation for a specific employee it is hard know if your loan officer is going to give great service. When getting a mortgage for a purchase, the biggest risk is getting a mortgage that results in a payment you can't afford. This is less of a risk with a refinance because you already have a mortgage and monthly payment. But keep in mind some of the monthly savings is due to stretching out the payments for another 30 years. Know what you are trying to do with the refinance because the streamlined ones cant be used for cash out.",
"title": ""
},
{
"docid": "a58078ab7f833f0906be1b19c3205f03",
"text": "Your son can gift you unlimited amount of money. It does not fall under income tax. It falls under gift tax. As per gift tax there is no tax for you. Any interest you earn on this is taxable to you. Your son transferred into savings account... if your son is NRI he can't hold savings account. Ask him to open a NRE account and convert savings account to NRO account.",
"title": ""
}
] |
fiqa
|
dc1e5cf532412591190a4e09ae29e3fb
|
Are Forex traders forced to use leverage?
|
[
{
"docid": "03c7415a5969d6c021a0c81d9c57676a",
"text": "\"While it's not true that you have to use leverage to participate in Forex, the alternative makes it impractical for most people to be able to do so. You need to be able to put a lot of money into it in order to not trade on leverage. The fact is, most accounts for \"\"normal\"\" people require leverage because the size of the typical contract is more than the average person can afford to risk (or usually more than the average person has). Leverage, however, in the Forex market is not like Leverage in the stock or commodities market (well, they're the same thing in theory, but they are executed differently). In Forex, the broker is the one lending you the money in nearly all cases, and they will cash out your position when your account balance is exhausted. Thus, there is no risk for them (barring fraud or other illegal issues). Technically, I don't believe they guarantee that you will not accrue a debt, but I've never heard of anyone having their position cashed out and then owed more money. They've very good about making sure you can only spend money you've deposited. To put this another way, if you have $1,000 in your account and you are leveraged to 100,000. Once your trade drops to $1000 in losses your position is automatically cashed out. There is no risk to the broker, and no risk to you (other than your $1000)... So trading without leverage has little value, while traiding with leverage has lots of potential gain and no downsides (other than a faster rate of loss, but if you're worried about that, just trade smaller lots.)\"",
"title": ""
},
{
"docid": "fc585b7ea27021993ff665a62115bb94",
"text": "\"No one is FORCED to use leverage. But most people do. Trading companies like it because, the more leverage, the more \"\"business\"\" (and total commissions). If someone starts with $1 million and leverages it up ten times to ten million, companies would rather do ten million of business than one. That's a given. On the other hand, if you're Warren Buffett or Bill Gates, and you say I want to do $1 billion of FX, no leverage, no trading company is going to turn it down. More often, it's a company like IBM or Exxon Mobil that wants to do FX, no leverage, because they just earned, say $1 billion Euros. Individuals USUALLY want to use more leverage in order to earn (or lose) more with their capital.\"",
"title": ""
},
{
"docid": "f0643397497e4dc64d752d89cd18058c",
"text": "It isn't that the companies force traders, it is more the other way around. Traders wouldn't trade without margin. The main reason is liquidity and taking advantage of minor changes in the forex quotes. It goes down to pips and traders make profit(loss) on movement of pips maybe by 1 or 2 and in some cases in 1/1000 or less of a pip. So you need to put in a large amount to make a profit when the quotes move up or down. Supposedly if they have put in all the amount upfront, their trading options are limited. And the liquidity in the market goes out of the window. The banks and traders cannot make a profit with the limited amount of money available at their disposal. So what they would do is borrow from somebody else, so why not the broker itself in this case maybe the forex company, and execute the trades. So it helps everybody. Forex companies make their profit from the fees, more the trades done, more the fees and hence more profit. Traders get to put their fingers in many pies and so their chances of making profits increases. So everybody is happy.",
"title": ""
},
{
"docid": "538ece1cb47d6e7c0109010d20252cfd",
"text": "Actually, most of the forex traders do not prefer the practice of leveraging. In forex trading, a contract signed by a common trader is way more than any common man can afford to risk. It is not a compulsion for the traders to use leveraging yet most of the traders practice it. The other side of it is completely different. Trading companies or brokers specifically like it because you turn into a kind of cash cow when your account gets exhausted. As for trader, most of them don’t practice leveraging.",
"title": ""
},
{
"docid": "06c49498d63d86b623e896d1fc942919",
"text": "I recommended Currency Trading For Dummies, in my answer to Layman's guide to getting started with Forex (foreign exchange trading)? The nature of the contract size points toward only putting up a fraction of the value. The Euro FX contract size is 125,000 Euro. If you wish to send the broker US$125K+ to trade this contract, go ahead. Most people trade it with a few thousand dollars.",
"title": ""
}
] |
[
{
"docid": "1f982eee1eda1e2eca54177a51801642",
"text": "This was all luck, that amount of leverage will destroy your account in a single bad trade. You profit is way less than it should be because you are getting killed on fees. Take a look at the bitcoin trade, you should have 2,157.30 in profit but you only have 1825.42. And your currency trades were consistently positions that were worth $400,000 dollars, where you were pulling out ~$50 in profits, even though they should have been ~$80 profits. You are consistently getting 30% less than you should be, and consistently betting waaaaay bigger amounts than you account can really handle. Bad trades will probably have 30% greater losses than actual, and when the market moves the wrong direction then a single position will wipe out your account. Yes, you could have just bought bitcoin and gotten great profits. You totally nailed the directions of the markets! It is just a matter of time before you blow up, the trailing profits won't always help you when the market starts going down first.",
"title": ""
},
{
"docid": "5232351523ed97263862c5fdb0f90727",
"text": "Its the relative leverage available to retail traders between the two. In the US one can trade equities with 2:1 leverage while with commodities the leverage can go much higher. Combine this with the highly volatile nature of commodities, and it makes losing BIG too easy for the average trader.",
"title": ""
},
{
"docid": "804df9dc0c69154c6660f3af9969ff6c",
"text": "\"When trading Forex each currency is traded relative to another. So when shorting a currency you must go long another currency vs the currency you are shorting, it seems a little odd and can be a bit confusing, but here is the explanation that Wikipedia provides: An example of this is as follows: Let us say a trader wants to trade with the US dollar and the Indian rupee currencies. Assume that the current market rate is USD 1 to Rs.50 and the trader borrows Rs.100. With this, he buys USD 2. If the next day, the conversion rate becomes USD 1 to Rs.51, then the trader sells his USD 2 and gets Rs.102. He returns Rs.100 and keeps the Rs.2 profit (minus fees). So in this example the trader is shorting the rupee vs the dollar. Does this article add up all other currency crosses to get the 'net' figure? So they don't care what it is depreciating against? This data is called the Commitment of Traders (COT) which is issued by the Commodity Futures Trading Commission (CFTC) In the WSJ article it is actually referring to Forex Futures. In an another article from CountingPips it explains a bit clearer as to how a news organization comes up with these type of numbers. according to the CFTC COT data and calculations by Reuters which calculates the dollar positions against the euro, British pound, Japanese yen, Australian dollar, Canadian dollar and the Swiss franc. So this article is not talking about futures but it does tell us they got data from the COT and in addition Reuters added additional calculations from adding up \"\"X\"\" currency positions. No subscription needed: Speculators Pile Up Largest Net Dollar Long Position Since June 2010 - CFTC Here is some additional reading on the topic if you're interested: CFTC Commitment of the Traders Data – COT Report FOREX : What Is It And How Does It Work? Futures vs. Forex Options Forex - Wiki\"",
"title": ""
},
{
"docid": "6d91739afcb1f6db012efe56d20c0d6a",
"text": "I wouldn't use it to take leverage unless you don't mind loosing your entire investment (this is a possibility as shares are already quite volatile). However, you don't have to take leverage and still trade CFDs. Benefits of doing so: Disadvantages:",
"title": ""
},
{
"docid": "b1e6e328ddefd77d0000e46e8212a7af",
"text": "To answer your original question: There is proof out there. Here is a paper from the Federal Reserve Bank of St. Louis that might be worth a read. It has a lot of references to other publications that might help answer your question(s) about TA. You can probably read the whole article then research some of the other ones listed there to come up with a conclusion. Below are some excerpts: Abstract: This article introduces the subject of technical analysis in the foreign exchange market, with emphasis on its importance for questions of market efficiency. “Technicians” view their craft, the study of price patterns, as exploiting traders’ psychological regularities. The literature on technical analysis has established that simple technical trading rules on dollar exchange rates provided 15 years of positive, risk-adjusted returns during the 1970s and 80s before those returns were extinguished. More recently, more complex and less studied rules have produced more modest returns for a similar length of time. Conventional explanations that rely on risk adjustment and/or central bank intervention do not plausibly justify the observed excess returns from following simple technical trading rules. Psychological biases, however, could contribute to the profitability of these rules. We view the observed pattern of excess returns to technical trading rules as being consistent with an adaptive markets view of the world. and The widespread use of technical analysis in foreign exchange (and other) markets is puzzling because it implies that either traders are irrationally making decisions on useless information or that past prices contain useful information for trading. The latter possibility would contradict the “efficient markets hypothesis,” which holds that no trading strategy should be able to generate unusual profits on publicly available information—such as past prices—except by bearing unusual risk. And the observed level of risk-adjusted profitability measures market (in)efficiency. Therefore much research effort has been directed toward determining whether technical analysis is indeed profitable or not. One of the earliest studies, by Fama and Blume (1966), found no evidence that a particular class of TTRs could earn abnormal profits in the stock market. However, more recent research by Brock, Lakonishok and LeBaron (1992) and Sullivan, Timmermann an d White (1999) has provided contrary evidence. And many studies of the foreign exchange market have found evidence that TTRs can generate persistent profits (Poole 6 (1967), Dooley and Shafer (1984), Sweeney (1986), Levich and Thomas (1993), Neely, Weller and Dittmar (1997), Gençay (1999), Lee, Gleason and Mathur (2001) and Martin (2001)).",
"title": ""
},
{
"docid": "7c1f22eaf15339096f3355287cd19ce8",
"text": "\"I would say that you should keep in mind one simple idea. Leverage was the principal reason for the 2008 financial meltdown. For a great explanation on this, I would HIGHLY recommend Michael Lewis' book, \"\"The Big Short,\"\" which does an excellent job in spelling out the case against being highly leveraged. As Dale M. pointed out, losses are greatly magnified by your degree of leverage. That being said, there's nothing wrong with being highly leveraged as a short-term strategy, and I want to emphasize the \"\"short-term\"\" part. If, for instance, an opportunity arises where you aren't presently liquid enough to cover then you could use leverage to at least stay in the game until your cash situation improves enough to de-leverage the investment. This can be a common strategy in equities, where you simply substitute the term \"\"leverage\"\" for the term \"\"margin\"\". Margin positions can be scary, because a rapid downturn in the market can cause margin calls that you're unable to cover, and that's disastrous. Interestingly, it was the 2008 financial crisis which lead to the undoing of Bernie Madoff. Many of his clients were highly leveraged in the markets, and when everything began to unravel, they turned to him to cash out what they thought they had with him to cover their margin calls, only to then discover there was no money. Not being able to meet the redemptions of his clients forced Madoff to come clean about his scheme, and the rest is history. The banks themselves were over-leveraged, sometimes at a rate of 50-1, and any little hiccup in the payment stream from borrowers caused massive losses in the portfolios which were magnified by this leveraging. This is why you should view leverage with great caution. It is very, very tempting, but also fraught with extreme peril if you don't know what you're getting into or don't have the wherewithal to manage it if anything should go wrong. In real estate, I could use the leverage of my present cash reserves to buy a bigger property with the intent of de-leveraging once something else I have on the market sells. But that's only a wise play if I am certain I can unwind the leveraged position reasonably soon. Seriously, know what you're doing before you try anything like this! Too many people have been shipwrecked by not understanding the pitfalls of leverage, simply because they're too enamored by the profits they think they can make. Be careful, my friend.\"",
"title": ""
},
{
"docid": "f68f47fbd9b39e55236bab0b0720c9dd",
"text": "Don't like HFT? Use a stock exchange or dealer network that only allows manually entered trades. I hope readers are not convinced by this article to support the enactment of regulations that prevent people from using HFT. Maybe he's right and HFT is detrimental (which I doubt), but this is something that should be decided by the free market.",
"title": ""
},
{
"docid": "d62e3a39316e279e4ee8a1655d33359f",
"text": "\"If you don't use leverage you can't lose more than you invested because you \"\"play\"\" with your own money. But even with leverage when you reach a certain limit (maintenance margin) you will receive a margin call from your broker to add more funds to your account. If you don't comply with this (meaning you don't add funds) the broker will liquidate some of the assets (in this case the currency) and it will restore the balance of the account to meet with his/her maintenance margin. At least, this is valid for assets like stocks and derivatives. Hope it helps! Edit: I should mention that\"",
"title": ""
},
{
"docid": "4e81a16d71ce9afded1354fb5f5592f9",
"text": "\"It looks like these types of companies have to disclose the health of their accounts to CFTC (Commodity Futures Trading Commission). That is the gist I get at least from this article about the traders that lost money due to the Swiss removing the franc’s cap against the euro. The article says about the U.S. retail FOREX brokerage: Most of FXCM’s retail clients lost money in 2014, according to the company’s disclosures mandated by the CFTC. The percentage of losing accounts climbed from 67 percent in the first and second quarters to 68 percent in the third quarter and 70 percent in the fourth quarter. Side note: The Swiss National Bank abandoned the cap on the currency's value against the euro in mid-January 2015. But above paragraph provides data on FXCM’s retail clients in 2014. It could consequently be concluded that, even without \"\"freak events\"\" (such as Switzerland removing the franc cap), it is more likely for an investor to NOT make a profit on the FOREX market. This is also in line with what \"\"sdfasdf\"\" and \"\"Dario Fumagalli\"\" say in their answers.\"",
"title": ""
},
{
"docid": "2ea51041cbb14ef2276388529ab024ee",
"text": "Simply because forex brokers earn money from the spread that they offer you. Spread is the difference between buyers and sellers. If the buy price is at 1.1000 and the sell price is at 1.1002 then the spread is 2 pips. Now think that this broker is getting spread from its liquidity cheaper (for example 1 pip spread). As you can understand this broker makes a profit of 1 pip for each trade you place... Now multiply 1 pip X huge volume, and then you will understand why most forex brokers don't charge commissions.",
"title": ""
},
{
"docid": "d7f2391e31ce498b64165c6829fe0da9",
"text": "\"I think to some extent you may be confusing the terms margin and leverage. From Investopedia Two concepts that are important to traders are margin and leverage. Margin is a loan extended by your broker that allows you to leverage the funds and securities in your account to enter larger trades. In order to use margin, you must open and be approved for a margin account. The loan is collateralized by the securities and cash in your margin account. The borrowed money doesn't come free, however; it has to be paid back with interest. If you are a day trader or scalper this may not be a concern; but if you are a swing trader, you can expect to pay between 5 and 10% interest on the borrowed money, or margin. Going hand-in-hand with margin is leverage; you use margin to create leverage. Leverage is the increased buying power that is available to margin account holders. Essentially, leverage allows you to pay less than full price for a trade, giving you the ability to enter larger positions than would be possible with your account funds alone. Leverage is expressed as a ratio. A 2:1 leverage, for example, means that you would be able to hold a position that is twice the value of your trading account. If you had $25,000 in your trading account with 2:1 leverage, you would be able to purchase $50,000 worth of stock. Margin refers to essentially buying with borrowed money. This must be paid back, with interest. You also may have a \"\"margin call\"\" forcing you to liquidate assets if you go beyond your margin limits. Leverage can be achieved in a number of ways when investing, one of which is investing with a margin account.\"",
"title": ""
},
{
"docid": "9073fe66e32efa5077a99658e8e018e5",
"text": "What you are asking about is called Interest Rate Parity. Or for a longer explanation the article Interest Rate Parity at Wikipedia. If the US has a rate of say zero, and the rate in Elbonia is 10%, one believes that in a year the exchange rate will be shifted by 10%, i.e. it will take 1.1 unit of their currency to get the dollars one unit did prior. Else, you'd always profit from such FOREX trades. (Disclaimer - I am not claiming this to be true or false, just offering one theory that explains the rate difference effect on future exchange rates.",
"title": ""
},
{
"docid": "5e378ee1d0052e8237391cc8a26c5555",
"text": "How should we disregard leverage when it's the leverage that creates the 'wipe-out' potential? If you simply convert 100K EUR to USDollars, you dollars might then fluctuate a few thousand, maybe even 10K over a year, but the guy that only put up 1000 EUR to do this has a disproportionally higher risk.",
"title": ""
},
{
"docid": "87b57a3b64f2c884c0315b92c571e274",
"text": "\"This advanced forex trading course allows forex traders to tracking intra-day banking activity in the forex market. Learn to trade forex using the trading secrets of the mega banks. These forex trading strategies will allow struggling retail traders to follow the \"\"footprint in the sand\"\" left by the mega banks, rather than getting ran over by them like most day traders.\"",
"title": ""
},
{
"docid": "38983f5811ca126fbb64a7d8027e265a",
"text": "Stick with stocks, if you are not well versed in forex you will get fleeced or in over your head quickly. The leverage can be too much for the uninitiated. That said, do what you want, you can make money in forex, it's just more common for people to not do so well. In a related story, My friend (let's call him Mike Tyson) can knock people out pretty easy. In fact it's so easy he says all you have to do is punch people in the face and they'll give you millions of dollars. Since we are such good friends and he cares so much about my financial well-being, he's gotten me a boxing match with Evander Holyfield, (who I've been reading about for years). I guess all I have to do is throw the right punches and then I'll have millions to invest in the stock market. Seems pretty easy, right ?",
"title": ""
}
] |
fiqa
|
959ce07ec914374c6cd2545c78dc7bb4
|
person on loan with cosigner
|
[
{
"docid": "46129c258ecb12f5a85af074100f5744",
"text": "\"This will probably require asking the SO to sign a quitclaim and/or to \"\"sell\"\" him her share of the vehicle's ownership and getting it re-titled in his own name alone, which is the question you actually asked. To cancel the cosigner arrangement, he has to pay off the loan. If he can't or doesn't want to do that in cash, he'd have to qualify for a new loan to refinasnce in his name only, or get someone else (such as yourself) to co-sign. Alternatively, he might sell the car (or something else) to pay what he still owes on it. As noted in other answers, this kind of mess is why you shouldn't get into either cosigning or joint ownership without a written agreement spelling out exactly what happens should one of the parties wish to end this arrangement. Doing business with friends is still doing business.\"",
"title": ""
}
] |
[
{
"docid": "55424864462f469b1beffbe1d39f8ba0",
"text": "\"It all comes down to how the loan itself is structured and reported - the exact details of how they run the loan paperwork, and how/if they report the activity on the loan to one of the credit bureaus (and which one they report to). It can go generally one of three ways: A) The loan company reports the status to a credit reporting agency on behalf of both the initiating borrower and the cosigner. In this scenario, both individuals get a new account on their credit report. Initially this will generally drop related credit scores somewhat (it's a \"\"hard pull\"\", new account with zero history, and increased debt), but over time this can have a positive effect on both people's credit rating. This is the typical scenario one might logically expect to be the norm, and it effects both parties credit just as if they were a sole signor for the loan. And as always, if the loan is not paid properly it will negatively effect both people's credit, and the owner of the loan can choose to come after either or both parties in whatever order they want. B) The loan company just runs the loan with one person, and only reports to a credit agency on one of you (probably the co-signor), leaving the other as just a backup. If you aren't paying close attention they may even arrange it where the initial party wanting to take the loan isn't even on most of the paperwork. This let the person trying to run the loan get something accepted that might not have been otherwise, or save some time, or was just an error. In this case it will have no effect on Person A's credit. We've had a number of question like this, and this isn't really a rare occurrence. Never assume people selling you things are necessarily accurate or honest - always verify. C) The loan company just doesn't report the loan at all to a credit agency, or does so incorrectly. They are under no obligation to report to credit agencies, it's strictly up to them. If you don't pay then they can report it as something \"\"in collections\"\". This isn't the typical way of doing business for most places, but some businesses still operate this way, including some places that advertise how doing business with them (paying them grossly inflated interest rates) will \"\"help build your credit\"\". Most advertising fraud goes unpunished. Note: Under all of the above scenarios, the loan can only effect the credit rating attached to the bureau it is reported to. If the loan is reported to Equifax, it will not help you with a TransUnion or Experian rating at all. Some loans report to multiple credit bureaus, but many don't bother, and credit bureaus don't automatically copy each other. It's important to remember that there isn't so much a thing as a singular \"\"consumer credit rating\"\", as there are \"\"consumer credit ratings\"\" - 3 of them, for most purposes, and they can vary widely depending on your reported histories. Also, if it is only a short-term loan of 3-6 months then it is unlikely to have a powerful impact on anyone's credit rating. Credit scores are formulas calibrated to care about long-term behavior, where 3 years of perfect credit history is still considered a short period of time and you will be deemed to have a significant risk of default without more data. So don't expect to qualify for a prime-rate mortgage because of a car loan that was paid off in a few months; it might be enough to give you a score if you don't have one, but don't expect much more. As always, please remember that taking out a loan just to improve credit is almost always a terrible idea. Unless you have a very specific reason with a carefully researched and well-vetted plan that means that it's very important you build credit in this specific way, you should generally focus on establishing credit in ways that don't actually cost you any money at all. Look for no fee credit cards that you pay in full each month, even if you have to start with credit-building secured card plans, and switch to cash-value no-fee rewards cards for a 1-3% if you operate your financial life in a way that this doesn't end up manipulating your purchasing decisions to cost you money. Words to the wise: \"\"Don't let the credit score tail wag the personal financial dog!\"\"\"",
"title": ""
},
{
"docid": "7be13fa59cf116fba48f6e48a8d156b8",
"text": "\"First off learn from this: Never cosign again. There are plenty of other \"\"tales of woe\"\" outlined on this site that started and ended similarly. Secondly do what you can to get off of the loan. First I'd go back to her dad and offer him $1000 to take you off the loan and sign over the car. Maybe go up to $3000 if you have that much cash. If that doesn't work go to the bank and offer them half of the loan balance to take you off. You can sign a personal loan for that amount (maybe). Whatever it takes to get off the loan. If she has a new BF offer him the same deal as the dad. Why do you have to do this? Because you owned an asset that was once valued at 13K and is valued at (probably) less than 4K. Given that you have a loan on it the leverage works against you causing you to lose more money. The goal now is to cut your losses and learn from your mistakes. I feel like the goal of your post was to make your ex-gf look bad. It's more important to do some self examination. If she was such a bad person why did you date her? Why did you enter a business transaction with her? I'd recommend seeking counseling on why you make such poor choices and to help you avoid them in the future. Along these lines I'd also examine your goals in life. If your desire is to be a wealthy person, then why would you borrow money to buy a car? Seek to imitate rich people to become rich. Picking the right friends and mates is an important part of this. If you do not have a desire to be a wealthy person what does it matter? Losing 13K over seven months is a small step in the \"\"right\"\" direction.\"",
"title": ""
},
{
"docid": "8125e139939bdcfbcaeb83f843bb2452",
"text": "employed under the table and doesn't have a bank account If I could make that size 10,000,000 font I would. Your friend likely also isn't paying taxes. The student loan penalties will be nothing compared to what the IRS does to you. Avoid taking financial advice from that person.",
"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": "f8d5c327ce6e719e6a82fda9724475de",
"text": "While I agree with the existing bulk of comments and answers that you can't tell the lender the $7k is a gift, I do think you might have luck finding a mortgage broker who can help you get a loan as a group. (You might consider as an LLC or other form of corporation if no one will take you otherwise.) That is, each of you will be an owner of the house and appear on the mortgage. IIRC, as long as the downpayment only comes from the collective group, and the income-to-debt ratio of the group as a whole is acceptable, and the strongest credit rating of the group is good, you should be able to find a loan. (You may need a formal ownership agreement to get this accepted by the lender.) That said, I don't know if your income will trump your brother's situation (presumably high debt ratio or lower than 100% multiplier on his income dues to its source), but it will certainly help. As to how to structure the deal for fairness, I think whatever the two of you agree to and put down in writing is fine. If you each think you're helping the other, than a 50/50 split on profits at the sale of the property seems reasonable to me. I'd recommend that you actually include in your write up a defined maximum period for ownership (e.g. 5yr, or 10yr, etc,) and explain how things will be resolved if one side doesn't want to sell at that point but the other side does. Just remember that whatever percentages you agree to as ownership won't effect the lender's view of payment requirements. The lender will consider each member of the group fully and independently responsible for the loan. That is, if something happens to your brother, or he just flakes out on you, you will be on the hook for 100% of the loan. And vice-versa. Your write up ought to document what happens if one of you flakes out on paying agreed upon amounts, but still expects there ownership share at the time of sale. That said, if you're trying to be mathematically fair about apportioning ownership, you could do something like the below to try and factor in the various issues into the money flow: The above has the benefit that you can start with a different ownership split (34/66, 25/75, etc.) if one of you wants to own more of the property.",
"title": ""
},
{
"docid": "532ccb785de284ab88f3b35849ce2e55",
"text": "No. But the scenario is unrealistic. No bank will give the LLC any loan unless the members personally co-sign to guarantee it. In which case, the members become personally liable in addition to the LLC.",
"title": ""
},
{
"docid": "326da0a0c278ca89edbf77cc0da4b4ac",
"text": "Something else to consider, even if your friend is on the up and up and never misses a payment: Until the house is paid off, any time you apply for credit banks will count the mortgage payment on your friends house against your ability to pay all your existing debts in addition to whatever new loan you're applying for. If you're renting a home now, this will likely mean that you'll be unable to buy one until your friends house is paid off.",
"title": ""
},
{
"docid": "4d24058715dbda6f51062738f68df521",
"text": "\"I saw where you said \"\"I thought of co-signing is if a portion of child/spousal support goes directly to the landlord. I asked the Child Support Services (who deduct money from my paycheck monthly to pay support to my ex) and they told me that they are not authorized to do this.\"\" I know going back to court isn't a pleasant thought, but from the looks of things, your suggestion is the only way to accomplish this. It's ridiculous for anyone to suggest you keep up your payments and cosign, yet the ex has no obligation to use that income to actually pay her rent. From what you've said, she sounds irresponsible and self-destructive. As someone who has had bad tenants, I'd not go near her, even with a cosigner. It's just not worth the risk.\"",
"title": ""
},
{
"docid": "1b0cdaf9ab184bb8b243f5cc02e0b85a",
"text": "\"First off, your commitment to paying down debt and apparent strong relationship with your brother is admirable. However, I think you are overcomplicating your situation and potentially endangering your relationship by attempting to combine debts in this way. You could consider a simple example where you have interest bearing at 5% and your brother has interest bearing debt at 10%. If you both pay down his higher interest debt first, and then both pay down your debt after, then clearly you will have paid less interest combined. But, by waiting to pay off your debt until later, you have accrued more interest yourself. So who has saved money by doing this? Your brother. You will have paid (let's say, without getting into balances) $50 extra interest to save your brother $70 in interest. So why would you want to give your brother $50? Total interest savings between both of you in this simplified example are $20. So, in theory your brother could pay you $60 after the fact, effectively meaning you end up $10 ahead, and your brother ends up $10 ahead. Here, you end up in a position where you could still say, in theory 'we both came out ahead'. But what if your brother loses his job while you're both paying off your debt, and he can't help any more? Does he accrue some type of calculated interest until he pays you back? What if he's off work for 2 years and still owes you 30k? What if he just never makes his payments to you on time? At what point do you resent your brother for failing to uphold his end of the deal? Money and friends don't mix. Money and family mixes even worse. In rare circumstances where you absolutely must mix family and money, get everything in writing. Get it signed, make it legal. Outline all details of the transaction, including interest rates, and examples of how the balances calculate. In 5 years when things go haywire, following the letter of the law is what will keep you from becoming enemies. But with family, often people have an expectation that \"\"while we agreed I would pay x, he's my brother, so he should take pity on me and allow me to pay only y, if I need to\"\". Finally, to your question about how to calculate amounts to pay: it will be very complicated. You will need to track minimum balance payments, interest rates, and even potentially the lost income which one of you gives up to pay down the other's debt. You could do these things in a simplified way close to what I've set out above, but then ultimately one of you will lose out. If you pay down your debts first, how can you calculate the lost living potential for your brother, who might want to buy a house but can't save for a down payment for an extra year? What if he has to move, and without sufficient down payment, he needs to pay extra Mortgage Insurance on his loan from the bank? Will you compensate him for that? My recommendation, if you haven't caught it yet, is Do not do this. Your potential savings are not going to be worth the potential heartache of breaking your relationship with your brother. Instead, look at joining your minds, not your money. Set goals for yourselves individually, and hold each other accountable. Make this an open conversation between yourselves, as it can be difficult to talk about finances with other people. Your support will help the other person, and hopefully help keep you on track as well. To provide numerical context for potential savings, which you appear to still want, consider the numbers you've provided [you have 40k debt at 10%, your brother has 20k of debt at 5%]. Let's assume you each can pay up to 20k against the principal of your loans each year. Finally assume for simplicity that you also have enough to pay off interest as it gets charged [so no compounding], and you pay in even instalments each year. Mathematically that means your interest each year is equal to your interest rate * your average annual balance. If you each go alone, then you will accrue 10% on an average balance of [(40k+20k)/2] = 30k per year, which equals 3,000 in interest in year 1, then [(20k+0)/2] = 10k * .10 = 1,000 interest in year 2. Total interest for you = 4,000. Your brother will accrue [(20k+0k)/2] = 10k * .05 = 500 in interest in total. Total interest for both of you combined would be 4,500. If you pool your debt snowball, then you will clear your debt first. So the interest on your debt would be [(40k+0k)/2] = 20k * .1 = 2,000. Your brother's debt would fully accrue 5% of interest on the full balance in year 1, so interest in year 1 would be 20k * .05 = 1,000. In year 2, your brother's debt would be cleared half way through the year; interest charged would be [(20k+0k)/2] = 10k * .05 * 50% = 250. You would then owe your brother 10k, which you would pay him over the remainder of year 2. His total interest paid to the bank would be 1,000 + 250 = 1,250. Total interest for both of you combined would be 3,250. In a simplified payment example using your numbers, maximum interest savings would be about $1,250 combined. How you allocate those savings would be pretty subjective; assuming a 50:50 split, this yields $625 in savings to each of you. If you aren't able to each save 20k per year, then savings would be greater for snowballing, because otherwise it will take you even longer to pay off your high interest debt. This is similar to your brother loaning you 20k today that you can use to pay off your debts, after which you pay him back so he can pay off his. Because you will owe him 20k for 2 years, but an average of ~10k at any one time [because he slowly advances it to you today, and you slowly pay him back until the end of year 2], at $650 in benefit passed to your brother, this is roughly equivalent to him loaning you money at 6.5% interest.\"",
"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": "325b3734841f36f5f68aa1ba1902f580",
"text": "I know this question has a lot of answers already, but I feel the answers are phrased either strongly against, or mildly for, co-signing. What it amounts down to is that this is a personal choice. You cannot receive reliable information as to whether or not co-signing this loan is a good move due to lack of information. The person involved is going to know the person they would be co-signing for, and the people on this site will only have their own personal preferences of experiences to draw from. You know if they are reliable, if they will be able to pay off the loan without need for the banks to come after you. This site can offer general theories, but I think it should be kept in mind that this is wholly a personal decision for the person involved, and them alone to make based on the facts that they know and we do not.",
"title": ""
},
{
"docid": "661a4eac7c078a020740d3c5e30bed82",
"text": "\"Just to go against the grain here. Sometimes, loaning money to friends is the right thing to do. For example, they had a loved one die, and need the money to cover funeral expenses until the life insurance pays out. Here, you may consider it your ethical duty to loan the money (or you may not). It does not make sense from a financial point of view (you are unlikely to charge interest and you are taking all the risk), but sometimes you put your financial prudence aside because \"\"being a good person and a great friend\"\" is more important. It is true that the general rule should be not to loan money to friends, and particularly never loan money you cannot afford to lose. But there are exceptions to every rule. I'll note that you may be best off with a plain-english, non-lawyery contract. Make it absolutely as simple as possible. As others have pointed out, specify a repayment date or schedule. Note what happens if they miss the deadline. Specify interest, if appropriate. Get it signed by you and the other person. And make sure you consider what happens if your friend doesn't honour the agreement. For that kind of money, it is also worth considering collateral.\"",
"title": ""
},
{
"docid": "be2d7fa01fe5a2e48f5e6a4a268f77ab",
"text": "\"You are co-signer on his car loan. You have no ownership (unless the car is titled in both names). One option (not the best, see below) is to buy the car from him. Arrange your own financing (take over his loan or get a loan of your own to pay him for the car). The bank(s) will help you take care of getting the title into your name. And the bank holding the note will hold the title as well. Best advice is to get with him, sell the car. Take any money left after paying off the loan and use it to buy (cash purchase, not finance) a reliable, efficient, used car -- if you truly need a car at all. If you can get to work by walking, bicycling or public transit, you can save thousands per year, and perhaps use that money to start you down the road to \"\"financial independence\"\". Take a couple of hours and research this. In the US, we tend to view cars as necessary, but this is not always true. (Actually, it's true less than half the time.) Even if you cannot, or choose not to, live within bicycle distance of work, you can still reduce your commuting cost by not financing, and by driving a fuel efficient vehicle. Ask yourself, \"\"Would you give up your expensive vehicle if it meant retiring years earlier?\"\" Maybe as many as ten years earlier.\"",
"title": ""
},
{
"docid": "170f30bfa452e1d4d4dc1b3e35bba2df",
"text": "\"I'm sorry you are going through this, but what you are dealing with is exactly is how cosigning works. It is among other reasons why you should never cosign a loan for someone unless you are 100% prepared to pay the loan on their behalf. Unfortunately, the main \"\"benefit\"\" to cosigning a loan is to the bank - they don't care who makes payments, only that someone does. It is not in their interest to educate purchasers who can easily get themselves into the situation you are in. What your options are depends a fair bit on the type of loan it is. The biggest problem is that normally as cosigner you cannot force your friend to do anything. If it is for a car, your best bet is to convince them to sell the car and hopefully recoup more than the cost of the loan. Many workplaces have some sort of free service to provide counseling/guidance on this sort of thing. Look into your employee benefits as you may have some free services there. You can sue your friend in small claims court, but keep in mind: It also depends on how big the loan is relative to your income. While it might feel good to sue your friend in small claims court, if it's for $500 it probably isn't worthwhile - but if your friend just stopped paying off their $30k vehicle assuming you will pay for it, even though they can pay for it themselves?\"",
"title": ""
},
{
"docid": "d3cb5752c88387ee2f3b89b678d01d94",
"text": "Cosigning on a loan. More broadly any exchange of value between family members or friends. Despite good intentions, these often go awry.",
"title": ""
}
] |
fiqa
|
a532045f7c82b0bdef3a63e8d76dddef
|
How many days does Bank of America need to clear a bill pay check
|
[
{
"docid": "79cf9bb9c76a12e5bb6ccf3b1186e6be",
"text": "\"Firstly, it isn't so generous. It is a win-win, but the bank doesn't have to mail me a free box of checks with my new account, or offer free printing to compete for my business. They already have the infrastructure to send out checks, so the actual cost for my bank to mail a check on my behalf is pretty minimal. It might even save them some cost and reduce exposure. All the better if they don't actually mail a check at all. Per my bank Individuals and most companies you pay using Send Money will be mailed a paper check. Your check is guaranteed to arrive by the delivery date you choose when you create the payment. ... A select number of companies–very large corporations such as telecoms, utilities, and cable companies–are part of our electronic biller network and will be paid electronically. These payments arrive within two business days... So the answer to your question depend on what kind of bill pay you used. If it was an electronic payment, there isn't a realistic possibility the money isn't cashed. If your bank did mail a paper check, the same rules would apply as if you did it yourself. (I suppose it would be up to the bank. When I checked with my bank's support this was their answer.) Therefore per this answer: Do personal checks expire? [US] It is really up to your bank whether or not they allow the check to be cashed at a later date. If you feel the check isn't cashed quickly enough, you would have to stop payment and contact whoever you were trying to pay and perhaps start again. (Or ask them to hustle and cash the check before you stop it.) Finally, I would bet a dime that your bank doesn't \"\"pre-fund\"\" your checks. They are just putting a hold on the equivalent money in your account so you don't overdraw. That is the real favor they do for you. If you stopped the check, your money would be unfrozen and available. EDIT Please read the comment about me losing a dime; seems credible.\"",
"title": ""
},
{
"docid": "46275c177deeb601b7d56a1afda66b34",
"text": "\"This is based on my experience with Chase and may not be applicable to other banks. As you mentioned Chase as one of the banks you do business with hopefully this will be helpful to you. The money does come out of your account immediately. If the check isn't cashed in a certain amount of time, the check expires and you get the money credited back to your account. Once you have made a bill payment online you can check on the status of your check by looking at your payment activity, finding the payment in question, and following the \"\"proof of payment\"\" link. There is will provide you with information on your payment which you can submit to your payee to prove when you submitted the payment, and which they can use to verify with the bank that you really did send the payment as you claimed. Once the check is cashed, this page will also contain images of the front and back of the cashed check, so you can prove that the recipient really did cash it. You can see from this info that the check is being funded from a different account number than your own, which is good for security purposes since (per Knuth, 2008) giving someone else your bank routing number and account number as found on your personal checks basically provides them with all they need to (fraudulently, of course) clean out your account.\"",
"title": ""
},
{
"docid": "5e0b6f7861785caa8fbf307787905843",
"text": "\"We have a local bank that changed to a bill pay service. The money is held as \"\"processing\"\" when the check is supposed to be cut and shows as cleared on the date the check is supposed to be received. Because our business checking is with the same bank, we discovered recently that the although the check shows cleared from our account, the recipient has not received the paper check yet - and may not for 2-3 days. We discovered this because the payroll checks we write this way (to ourselves) never arrive on the due date but clear the business account. It appears to be a new way for banks to ride the \"\"float\"\" and draw interest on the money. It happens with every check processed through the bill pay system and not with electronic transfers.\"",
"title": ""
},
{
"docid": "d02496907e03b97c66a7d02816949cbf",
"text": "\"My bank's bill payment system saves nothing more than writer's cramp and stamps. When a paper check is required they mail it, but it's drawn on my account just as if I'd written it out by hand and mailed it myself. There is no \"\"temporary account\"\", and at the time of month when I take care of the bills, my balance oscillates up and down depending on what's cleared and what hasn't. I'm going back to mailing checks because it saves a day or two of time between payment initiation and check clearing, which sucks. And electronic payments aren't much better. It recently took about five days for a payment to my car insurance company to be processed--and the amount is finalized and subtracted in the bank's website only after clearance. I can't know what I have without balancing the account every. frigging. time. IIRC bill payment systems were a lot more seamless and user friendly when they first became widespread.\"",
"title": ""
},
{
"docid": "4fd0d70975a9e25e6f4df9b653ffceee",
"text": "\"I cannot answer the original question, but since there is a good deal of discussion about whether it's credible at all, here's an answer that I got from Bank of America. Note the fine difference between \"\"your account\"\" and \"\"our account\"\", which does not seem to be a typo: The payment method is determined automatically by our system. One of the main factors is the method by which pay to recipients prefer to receive payments. If a payment can be issued electronically, we attempt to do so because it is the most efficient method. Payment methods include: *Electronic: Payment is sent electronically prior to the \"\"Deliver By\"\" date. The funds for the payment are deducted from your account on the \"\"Deliver By\"\" date. *Corporate Check: This is a check drawn on our account and is mailed to the pay to recipient a few days before the \"\"Deliver By\"\" date. The funds to cover the payment are deducted from your account on the \"\"Deliver By\"\" date. *Laser Draft Check: This is a check drawn on your account and mailed to the pay to recipient a few days before the \"\"Deliver By\"\" date. The funds for the payment are deducted from your account when the pay to recipient cashes the check, just as if you wrote the check yourself. To determine how your payment was sent, click the \"\"Payments\"\" button in your Bill Pay service. Select the \"\"view payment\"\" link next to the payment. Payment information is then displayed. \"\"Transmitted electronically\"\" means the payment was sent electronically. \"\"Payment transaction number\"\" means the payment was sent via a check drawn from our account. \"\"Check number\"\" means the payment was sent as a laser draft check. Each payment request is evaluated individually and may change each time a payment processes. A payment may switch from one payment method to another for a number of reasons. The merchant may have temporarily switched the payment method to paper, while they update processing information. Recent changes or re-issuance of your payee account number could alter the payment method. In my case, the web site reads a little different: Payment check # 12345678 (8 digits) was sent to Company on 10/27/2015 and delivered on 10/30/2015. Funds were withdrawn from your (named) account on 10/30/2015. for one due on 10/30/2015; this must be the \"\"corporate check\"\". And for another, earlier one, due on 10/01/2015, this must be the laser draft check: Check # 1234 (4 digits) from your (named) account was mailed to Company on 09/28/2015. Funds for this payment are withdrawn from your account when the Pay To account cashes the check. Both payments were made based on the same recurring bill pay payment that I set up manually (knowing little more of the company than its address).\"",
"title": ""
},
{
"docid": "fd9081176933e2641a2f1b33dbb4db91",
"text": "This just happened to me with a Wells Fargo Bill Pay check. WF put a stop payment on the check. The money was taken out of my account immediately yet it is going to take 3-5 days to reappear in the account. I question these banking practices. Georgia Bank and Trust Company of GA does not do this. The Bill Pay check is processed just like a hand written check; when the check clears the bank your account is debited. If it is an Electronic Funds Transfer (EFT) then the money does come out of your account immediately, of course. These are acceptable banking practices to me. I will be closing the Wells Fargo account.",
"title": ""
},
{
"docid": "92a7154681dbe43fcf31af20a30e0bac",
"text": "I just had this happen to me with Chase and speaking with my executive support contact, they will not return the funds unless you request them back. Which I find appalling and just one more reason that I don't like working with Chase!",
"title": ""
}
] |
[
{
"docid": "55fa76b19c951b25835e30a46c84191b",
"text": "\"Although banks do not have to honor checks that are more than six months old, they often do. Limit Noted on Check. Many large corporations put the length of time that a check is valid on the face of their checks. For example, a check may state, Valid for 90 days from this date\"\" or \"\"Not valid after 180 days.\"\"\"",
"title": ""
},
{
"docid": "85d7d61feca0b602611f1e99f4aa8a53",
"text": "\"This does not directly address the question, but how the Bank views your behaviour is not the same as a credit reporting bureau. If you do not \"\"go deep\"\" on your card at all, you may be deemed not to be exercising the facility, indeed they may ask you to reduce your credit limit. This is not the same as \"\"missing a payment\"\". At the same time, do not just make the minimum payment. Ideally you should clear it within 3 months. Think of it as a very short term line of credit. Not clearing the balance within three months (or turning it over) demonstrates a cash flow problem, as does clearing it from another card. Some banks call this \"\"kite flying\"\" after similar behaviour in older days with cheque accounts. If you use the credit and show you can pay it off, you should never need to ask for a credit increase, it will be offered. The Bureau will be informed of these offers. Also, depending upon how much the bank trusts you, the Bureau may see a \"\"monthly\"\" periodic credit review, which is good if you have no delinquencies. Amex does this as a rule.\"",
"title": ""
},
{
"docid": "f567b761d65d2c15a83618786c336f98",
"text": "Checks actually have a limited lifespan before the bank no longer has to honor them, which simplifies this question. After about 6 months you assume that check won't be cashed. If they find it after that, you write them a new check. If they don't, you really should pester them to do so.",
"title": ""
},
{
"docid": "e9c208288e2ae4dce6fd7a0d67a0ccdf",
"text": "\"Well, it's directly depositing money in your account, but Direct Deposit is something completely different: https://en.wikipedia.org/wiki/Direct_deposit Direct deposits are most commonly made by businesses in the payment of salaries and wages and for the payment of suppliers' accounts, but the facility can be used for payments for any purpose, such as payment of bills, taxes, and other government charges. Direct deposits are most commonly made by means of electronic funds transfers effected using online, mobile, and telephone banking systems but can also be effected by the physical deposit of money into the payee's bank account. Thus, since the purpose of DD is to eliminate checks, I'd say, \"\"no\"\", depositing cash directly into your account does not count as the requirement for one Direct Deposit within 90 days.\"",
"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": "8a2ee7245fe5856128d2dcd81bec498e",
"text": "Is there a point after which they legally unable to charge me? No. If you gave a check, then the bank may bounce it as stale after 6 months, but doesn't have to. With debit/credit transactions, they post as they're processed, and some merchants may not sync their terminals or deposit their manual slips often. As the world becomes more and more connected this becomes extremely rare, but still happens. Technically your promise to pay is a contract which never expires, and they can come after you years later to collect.",
"title": ""
},
{
"docid": "f0b00a834efd76b05a6d84f76fb7120a",
"text": "Is this a USA bank to a USA bank transaction? If so, it will clear in one to two business days. Once cleared, the landlord cannot stop pay it. He can, however, dishonestly claim it was a fraudulent check and attempt a chargeback. If you want absolute certainty the money will not be recalled, go to the landlord's bank and cash the check as a non-customer. You will have to pay a small fee, but you will walk out with cash. I suggest you take a photocopy of the check, and staple your receipt to it as evidence that the check was cashed for any impending legal proceedings.",
"title": ""
},
{
"docid": "91d02aeee41f1a1727fc73364f031d11",
"text": "I called Bank of America today about the same problem on my account. The service representative said that part of money is available to me and I can use the money.",
"title": ""
},
{
"docid": "e339935505ff7647b0dee5d8055b07e5",
"text": "\"Your bank has discretion to honor checks after 6 months, so you should talk to your bank about their specific policy. In general, banks won't accept \"\"large\"\" stale checks. The meaning of \"\"large\"\" varies -- $25,000 in NYC, as little as $2k in other places. Banks that service high-volume check issuers (like rebate companies) reject checks at 180 days. For business purposes, I think some banks will create accounts for specific mailings or other purposes as well. (i.e. 2011 refund account) The accounts close after a year.\"",
"title": ""
},
{
"docid": "6c24c583fc638d7dff126ea15ba17c3a",
"text": "\"It depends on the bank. According to the Uniform Commercial Code, a bank is not obliged to pay a cheque after six months, but may do so if it wants to. § 4-404. BANK NOT OBLIGED TO PAY CHECK MORE THAN SIX MONTHS OLD. A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is presented more than six months after its date, but it may charge its customer's account for a payment made thereafter in good faith. Official link to UCC 4-404 As for your second question, if you stamp \"\"void after 60 days\"\" on your cheque; I don't have a specific answer for that part (yet). Update: I can find no specific rules about someone putting an arbitrary \"\"void after xxx days\"\" on their personal check. Businesess are alllowed to, but again the overriding rule seems to be that after six months it's the bank's choice, and you certainly couldn't make a cheque expire before six months, so I don't think that putting a stamp would make any difference. It's still up to the bank in the end.\"",
"title": ""
},
{
"docid": "64145ff9c1322efb673cce526bb70180",
"text": "I'd suggest you contact the Office of the Controller of Currency, who regulates BOA and file a complaint. This whole deal seems shady. According to the OCC FAQ, the fact that they closed the account is in their prerogative. However, I would think they are obligated to quickly return your funds, but can't find anything specific to that. The banks are very sensitive to having complaints filed against them, so if nothing else this may encourage them to be more helpful, even if your complaint isn't actionable. OCC Complaint Process. This topic on how long a bank can hold a large deposit before making funds available may also be helpful.",
"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": "7644dd12efd99f9946a2a08c0327b5e1",
"text": "Automated Clearing House transactions are used in the US for direct deposit of pay checks and direct debit of many payments for accounts such as mortgages, credit cards, car loans, insurance premiums, etc. The reason they take one or more business days to clear is that the transactions are accumulated by each processor in the network during the day and processed as a batch at the end of each business day. The ACH network processes 20+ billion transactions per year worth $40 trillion, (estimates based on 2012 figures).",
"title": ""
},
{
"docid": "d9fb9a566fba1ecb9104bd4270b8e34a",
"text": "If you can get to a physical branch, get a cashier's check (or call them and have them send you one by mail). When they draft the cashier's check they remove the money from your account immediately and the check is drawn against the bank itself. You could hold onto that check for a little while even after your account closes and you make other arrangements for banking. If you cannot get a cashier's check, then you should try to expeditiously open a new account and do an ACH from old to new. This might take more days to set up than you have left though.",
"title": ""
},
{
"docid": "5c860c30f6d51d21c2f85c2b7c1d7829",
"text": "\"Why? Because they can get away with it, of course. In short - why not? You may want to read the answers to this similar question (my answer is the one accepted by the OP). Who has the money? The banks, who else. I have found that some banks are capable of sending/receiving ACH transfers faster than others. I have accounts in two banks, lets call them A and B. If I send money (push) from A to B, it may take several days. But if I decide to pull the money from A to B by originating the transaction through my account at B - the money arrives the next day! So the actual transfer only takes a night, one business day. Its just the direction that matters - if the bank has to give the money out, it will do all it can (including taking 2-3 days for \"\"processing\"\") to keep the money as long as possible. But when another bank charges them - they have no choice but to pay. By the way, bank B behaves better - when I send the money from my account at B, it arrives to A the next day as well. Try a similar experiment. Instead of originating the transaction at the sender bank - try to originate it at the receiver bank, see how long it takes then for the money to appear on your account after it disappeared from the other one.\"",
"title": ""
}
] |
fiqa
|
3283ef01f3ff7692347a65143ca64752
|
Track uninvoiced (pre-invoiced?) expected income in Quicken
|
[
{
"docid": "a9f3c77acba7dc65b21c04e277737cba",
"text": "\"You are right on track with your idea of setting up a separate account for invoiced income. Create a new account with the type other asset and call it \"\"Receivables\"\" (or something similar). Every time you invoice a client, enter a credit to this account with the amount of the invoice. Once the client pays and you deposit a check, enter a transfer from the \"\"Receivables\"\" account to the bank account. EDIT I overlooked that you wish to account for not-yet-invoiced income. I think that's a bad idea. It will become confusing and will give you the false sense that your financial condition is better than it really is. There are plenty of stories about businesses that have stellar sales, but fail because of lack of cash flow (the business' bills become due before it gets paid by its own customers).\"",
"title": ""
}
] |
[
{
"docid": "94ddf1032cb45bb5c777b866ae873592",
"text": "\"I found your post while searching for this same exact problem. Found the answer on a different forum about a different topic, but what you want is a Cash Flow report. Go to Reports>Income & Expenses>Cash Flow - then in Options, select the asset accounts you'd like to run the report for (\"\"Calle's Checking\"\" or whatever) and the time period. It will show you a list of all the accounts (expense and others) with transactions effecting that asset. You can probably refine this further to show only expenses, but I found it useful to have all of it listed. Not the prettiest report, but it'll get your there.\"",
"title": ""
},
{
"docid": "52eaf6d964328f4903cdb42885603788",
"text": "It's my understanding that deferred revenue will be included as income as the services are rendered. In this way, gains originating from deferred revenue are not recognized until they are actually earned. It's a formality so the accounting adheres to the matching principle. It may help to view a DR as an advance payment (say like what an airline may do with ticket purchases that occur before the flight). It sounds like you're wanting to penalize the business for having to eventually provide a service. But I don't know if that would be accurate, I mean, from the business's perspective, isn't it always preferable to be paid in advance? Are you concerned the company may not have any recourse should the customer try to back out or something? I don't think I'm understanding your question, could you come at it from another angle to explain it?",
"title": ""
},
{
"docid": "fbc1d3eb64e1865de7e6b35e91270f70",
"text": "I have a basic template for creating a balance sheet, cashflow statement and P&L. From here you can put in your assumptions, and expenses, then plug in your forecasted revenue (which you need to create on a separate spreadsheet. Would something like this help?",
"title": ""
},
{
"docid": "8018eefd837fd80fcc3c6bd9a4cb2eb5",
"text": "\"JoeTaxpayer's answer mentions using a third \"\"house\"\" account. In my comment on his answer, I mentioned that you could simply use a bookkeeping account to track this instead of the overhead of an extra real bank account. Here's the detail of what I think will work for you. If you use a tool like gnucash (probably also possible in quicken, or if you use paper tracking, etc), create an account called \"\"Shared Expenses\"\". Create two sub accounts under that called \"\"his\"\" and \"\"hers\"\". (I'm assuming you'll have your other accounts tracked in the software as well.) I haven't fully tested this approach, so you may have to tweak it a little bit to get exactly what you want. When she pays the rent, record two transactions: When you pay the electric bill, record two transactions: Then you can see at a glance whether the balances on \"\"his\"\" and \"\"hers\"\" match.\"",
"title": ""
},
{
"docid": "adacca83dbfb4de58aba2e034d7e2a54",
"text": "It sounds like you're mixing a simple checkbook register with double-entry bookkeeping. Do you need a double-entry level of rigor? Otherwise, why not have two columns, one for income (like a paycheck) and one for expenses (like paying a cable bill)? Then add up both columns and then take the difference of the sums to get your increase or decrease for the time period. If you want to break up income and expenses further, then you can do that too.",
"title": ""
},
{
"docid": "ccde069c7755ed62ee56a93b5a2fb5fd",
"text": "I would suggest that you try ClearCheckbook. It is kind of like Mint, but you can add and remove things (graphs, features, modules) to make it as simple or diverse as you need it to be. It should be a workable solution for simply tracking both income and expenses, yet it will also provide extra features as needed. There is a free option as well as a paid option with added features. I have not used ClearCheckbook before, but according to their features page it looks like you may have to upgrade to the paid option if you want to have complete tagging/custom field flexibility.",
"title": ""
},
{
"docid": "fd27658674e7d86ccf10bc37cd400f6c",
"text": "\"I can say that I got X dollars from an account like \"\"Income:Benefits\"\"... but where do I credit that money to? \"\"Expenses:Groceries\"\" Yes doesn't feel right, since I never actually spent that money on food, You did, didn't you? You got food. I'm guessing there's an established convention for this already? Doubt it. Established conventions in accounting are for businesses, and more specifically - public companies. So you can find a GAAP, or IFRS guidelines on how to book benefits (hint: salary expense), but it is not something you may find useful in your own household accounting. Do what is most convenient for you. Since it is a double-booking system - you need to have an account on the other side. Expenses:Groceries doesn't feel right? Add Expenses:Groceries:Benefits or Expenses:Benefits or whatever. When you do your expense and cash-flow reports - you can exclude both the income and the expense benefits accounts if you track them separately, so that they don't affect your tracking of the \"\"real\"\" expenses.\"",
"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": "1bb77fd32ae8e227ef16984ac4c5b8b9",
"text": "\"I'm not an expert, but here is my best hypothesis. On Microsoft's (and most other company's) cash flow statements, they use the so-called \"\"indirect method\"\" of accounting for cash flow from operations. How that works, is they start with net income at the top, and then adjust it with line items for the various non-cash activities that contributed to net income. The key phrase is that these are accounting for the non-cash activities that contribute to net income. If the accounts receivable amount changes from something other than operating activity (e.g., if they have to write off some receivables because they won't be paid), the change didn't contribute to net income in the first place, so doesn't need to be reconciled on the cash flow statement.\"",
"title": ""
},
{
"docid": "79f1a5f67ed8cd607f935dae6a14f53f",
"text": "Not quite the usual DCF or valuation question, but more FP&A: any ideas how to bridge cash forecast to financial forecast? To clarify, financial forecast is mostly done on an accrual basis whereas cash is outflows and inflows. Trying to figure out how to have better visibility into cash discrepancies",
"title": ""
},
{
"docid": "a471c4c58c07ed7ca866cff9414c8695",
"text": "There isn't one. I haven't been very happy with anything I've tried, commercial or open source. I've used Quicken for a while and been fairly happy with the user experience, but I hate the idea of their sunset policy (forced upgrades) and using proprietary format for the data files. Note that I wouldn't mind using proprietary and/or commercial software if it used a format that allowed me to easily migrate to another application. And no, QIF/OFX/CSV doesn't count. What I've found works well for me is to use Mint.com for pulling transactions from my accounts and categorizing them. I then export the transaction history as a CSV file and convert it to QIF/OFX using csv2ofx, and then import the resulting file into GNUCash. The hardest part is using categories (Mint.com) and accounts (GnuCash) properly. Not perfect by any means, but certainly better than manually exporting transactions from each account.",
"title": ""
},
{
"docid": "680f18bf6027e733e8d1925af9eb13b8",
"text": "Understandably, it appears as if one must construct the flows oneself because of the work involved to include every loan variation. First, it would be best to distinguish between cash and accrued, otherwise known as the economic, costs. The cash cost is, as you've identified, the payment. This is a reality for cash management, and it's wise that you wish to track it. However, by accruals, the only economic cost involved in the payment is the interest. The reason is because the rest of the payment flows from one form of asset to another, so if out of a $1,000 payment, $100 is principal repayment, you have merely traded $100 of cash for $100 of house. The cash costs will be accounted for on the cash flow statement while the accrued or economic costs will be accounted on the income statement. It appears as if you've accounted for this properly. However, for the resolution that you desire, the accounts must first flow through the income statement followed next instead of directly from assets to liabilities. This is where you can get a sense of the true costs of the home. To get better accrual resolution, credit cash and debit mortgage interest expense & principal repayment. Book the mortgage interest expense on the income statement and then cancel the principal repayment account with the loan account. The principal repayment should not be treated as an expense; however, the cash payment that pays down the mortgage balance should be booked so that it will appear on the cash flow statement. Because you weren't doing this before, and you were debiting the entire payment off of the loan, you should probably notice your booked loan account diverging from the actual. This proper booking will resolve that. When you are comfortable with booking the payments, you can book unrealized gains and losses by marking the house to market in this statement to get a better understanding of your financial position. The cash flow statement with proper bookings should show how the cash has flowed, so if it is according to standards, household operations should show a positive flow from labor/investments less the amount of interest expense while financing will show a negative flow from principal repayment. Investing due to the home should show no change due to mortgage payments because the house has already been acquired, thus there was a large outflow when cash was paid to acquire the home. The program should give some way to classify accounts so that they are either operational, investing, or financing. All income & expenses are operational. All investments such as equities, credit assets, and the home are investing. All liabilities are financing. To book the installment payment $X which consists of $Y in interest and $Z in principal: To resolve the reduction in principal: As long as the accounts are properly classified, GnuCash probably does the rest for you, but if not, to resolve the expense: Finally, net income is resolved: My guess is that GnuCash derives the cash flow statement indirectly, but you can do the entry by simply: In this case, it happily resembles the first accrued entry, but with cash, that's all that is necessary by the direct method.",
"title": ""
},
{
"docid": "494c5a502d369a1c921ab752b8ff5948",
"text": "\"The real question is what can you NOT do! If you track all your monetary actions, you know everything about your monetary situation. That means you have the tools to ask and answer \"\"what if\"\" questions, such as: \"\"If I get a 10% raise, could I take longer vacations?\"\" You could calculate how much you spend per day on vacation and then consider the amount of your raise and how much of it you'd need to allocate to vacations to, say, be able to take a two-week vacation instead of a one-week vacation. \"\"How much more would I have to earn to move to this nicer apartment?\"\" This may seem like a simple question, but a surprising number of people can't answer it in a reliable way, because they don't have a clear understanding of how much money they make and how much of it they can afford to spend on housing. If you find you have lots of spare income, maybe you can move to the nicer place right away; if not, at least you can get a sense of how much more money you'd need to make it happen. \"\"If I started taking the bus to work, how much would I save?\"\" You can look at how much you spend on gas and compare that to the price of a bus pass. By separating out categories like gas, repairs, and car insurance, you can also calculate different scenarios, like if you still kept your car but only used it for occasional trips, versus if you sold the car and used only public transportation. \"\"If I want to take a trip to Tahiti, what can I cut back on to save the money?\"\" Using your table you can pencil out scenarios like \"\"Suppose I stop eating out for lunch at work and just bring my lunch, how long would I have to do that to save enough to pay for a plane ticket?\"\" These are just a few random examples. The general idea is that with a record of hard numbers, you can start to consider potential tradeoffs in an objective way --- that is, you can ask \"\"how much in category X would I have to give up to gain this thing I want in category Y?\"\" The real trick in making use of your data is not so much \"\"what\"\" you can do, but \"\"how\"\" exactly to do it. You may have to become more of a spreadsheet wizard to really delve into these questions. Also, if you have programming expertise, you can even use something like Python to do calculations that might be laborious in a spreadsheet.\"",
"title": ""
},
{
"docid": "8951eceea45c81755e69e3b3caad8785",
"text": "\"I used Quicken, so this may or may not be helpful. I have a Cash account that I call \"\"Temporary Assets and Liabilities\"\" where I track money that I am owed (or that I owe in some cases). So if I pay for something that is really not my expense, it is transferred to this account (\"\"transferred\"\" in Quicken terms). The payment is then not treated as an expense and the reimbursement is not treated as income--the two transactions just balance out.\"",
"title": ""
},
{
"docid": "93651496bbc8ad51ee18fb100f61dfbc",
"text": "I used to use Quicken, but support for that has been suspended in the UK. I had started using Mvelopes, but support for that was suspended as well! What I use now is an IPhone app called IXpenseit to track my spending.",
"title": ""
}
] |
fiqa
|
321e56fb707f5b28d619b86f4592e09d
|
Are there alternatives to double currency account to manage payments in different currencies?
|
[
{
"docid": "6cba1993177fbecbd72291c889c6d904",
"text": "Yes, there is indeed a great alternative for all European residents: getting a Revolut account. Revolut is a fully-online bank who's main benefits include the lack of fees (with some limits) and a great exchange rate for all currency operations (better than what you would get at any brick and mortar bank in Europe). In your particular scenario it would work as following: This is what I personally use to handle a salary in EUR while living in Czech Republic. Things might change in the future once they run out of investor money, but for now it's the only solution I know for converting currencies without a loss.",
"title": ""
},
{
"docid": "3e6e9db9180e560964e04f5236776f4b",
"text": "You could use a Credit or Debit Card running in US $, drawing from your US$ account, and pay everything with it. If you pick a company with free foreign conversions, you would get the standard interbank exchange ratio every time you pay, with no fee. For the small payments where credit cards are not accpeted or useful you can convert some cash once every some month - all significant amounts should work with credit or debit card.",
"title": ""
},
{
"docid": "bc09b6dfa8e6977d71d0fb8eb8d69b13",
"text": "Cheaper and faster are usually mutually exclusive. If you want faster, nothing is faster than cash. I would recommend using an ATM to withdraw cash from your USD account as Florints and then use as appropriate. If you want cheaper, then the cheapest currency conversion commonly available is foreign exchange / transfer services like OFX / XE Trade / Transferwise. Turn around time on these can be as little as a business day or two but more commonly takes a few business days, but they typically offer the best currency exchange rates at the lowest cost. If you must make regular payments to 3rd parties, you can set these services up to send the converted currency to a 3rd party rather than back to your own account.",
"title": ""
},
{
"docid": "883cafa8f5663e43e4c96d54317ed88f",
"text": "Banks in certain countries are offering such facility. However I am not aware of any Bank in Hungary offering this. So apart from maintaining a higher amount in HUF, there by reducing the costs [and taking the volatility risks]; there aren't many options.",
"title": ""
}
] |
[
{
"docid": "3f556ec1a4b3445c80dd443fbfc037af",
"text": "I prefer to use a Foreign Exchange transfer service. You will get a good exchange rate (better than from Paypal or from your bank) and it is possible to set it up with no transfer fees on both ends. You can use an ACH transfer from your US bank account to the FX's bank account and then a SEPA transfer in Europe to get the funds into your bank account. Transfers can also go in the opposite direction (Europe to USA). I've used XE's service (www.xe.com) and US Forex's service (www.usforex.com). Transferwise (www.transferwise.com) is another popular service. US Forex's service calls you to confirm each transfer. They also charge a $5 fee on transfers under $1000. XE's service is more convenient: they do not charge fees for small transfers and do not call you to confirm the tramsfer. However, they will not let you set up a free ACH transfer from US bank accounts if you set up your XE account outside the US. In both cases, the transfer takes a few business days to complete. EDIT: In my recent (Summer 2015) experience, US Forex has offered slightly better rates than XE. I've also checked out Transferwise, and for transfers from the US it seems to be a bit of a gimmick with a fee added late in the process. For reference, I just got quotes from the three sites for converting 5000 USD to EUR:",
"title": ""
},
{
"docid": "f2d5a66526ac8393e16c0a106c845b43",
"text": "Have you tried TransferWise. They offer nice cross currency transfers with really low rates.",
"title": ""
},
{
"docid": "b5a5158de606e7e460cd70ae9d56b730",
"text": "\"UPDATE: Unfortunately Citibank have removed the \"\"standard\"\" account option and you have to choose the \"\"plus\"\" account, which requires a minimum monthly deposit of 1800 sterling and two direct debits. Absolutely there is. I would highly recommend Citibank's Plus Current Account. It's a completely free bank account available to all UK residents. http://www.citibank.co.uk/personal/banking/bankingproducts/currentaccounts/sterling/plus/index.htm There are no monthly fees and no minimum balance requirements to maintain. Almost nobody in the UK has heard of it and I don't know why because it's extremely useful for anyone who travels or deals in foreign currency regularly. In one online application you can open a Sterling Current Account and Deposit Accounts in 10 other foreign currencies (When I opened mine around 3 years ago you could only open up to 7 (!) accounts at any one time). Citibank provide a Visa card, which you can link to any of your multi currency accounts via a phone call to their hotline (unfortunately not online, which frequently annoys me - but I guess you can't have everything). For USD and EUR you can use it as a Visa debit for USD/EUR purchases, for all other currencies you can't make debit card transactions but you can make ATM withdrawals without incurring an FX conversion. Best of all for your case, a free USD cheque book is also available: http://www.citibank.co.uk/personal/banking/international/eurocurrent.htm You can fund the account in sterling and exchange to USD through online banking. The rates are not as good as you would get through an FX broker like xe.com but they're not terrible either. You can also fund the account by USD wire transfer, which is free to deposit at Citibank - but the bank you issue the payment from will likely charge a SWIFT fee so this might not be worth it unless the amount is large enough to justify the fee. If by any chance you have a Citibank account in the US, you can also make free USD transfers in/out of this account - subject to a daily limit.\"",
"title": ""
},
{
"docid": "7402ad5fe06144d975d78da88844f93d",
"text": "If you are a Russian citizen a much easier and common solution would be a USD or EUR withdrawal from your Webmoney account to your Cyprus bank account. You will need to create a Webmoney account (www.webmoney.ru), get a primary certificate in your local Webmoney office in Russia (The list is available at the website), create WMZ (for USD) and WME (for EURO) accounts in Webmoney (done online). Then you can easily top up your Webmoney WMR (Rubles) account (created automatically) with Rubles, convert the sum into USD (According to the Webmoney rate, which is only slightly different from the official central bank rate) and then withdraw the money from your USD Webmoney account to your Cyprus bank account. The money will be transfered to your Cyprus bank account from UK Webmoney dealer. The transaction description would say that this sum is transfered according to the contract of sale of securities. This method prevents any Russian regulatory authorities from seeing your transactions. And the best thig in Webmoney is that they have stable exchange rates and they use classic currencies such as USD, RUR, EUR, etc. Webmoney also has WMG accounts (Gold) and WMX accounts (Bitcoin). Non-Russian residents can also open a Webmoney accounts. You can get one even in Cyprus, by the way:)",
"title": ""
},
{
"docid": "3c9b27a19b0086ba941085e3b3ad0c19",
"text": "\"A couple of thoughts and experiences (Germany/Italy): First of all, I recommend talking to the Belgian bank (and possibly to a Dutch bank of your choice). I have similar conditions for my German bank accounts. But even though they talk about it as salary account (\"\"Gehaltskonto\"\") all they really ask for is a monthly inflow of more than xxxx € - which can be satisfied with an automatic direct transfer (I have some money automatically circulating for this reason which \"\"earns\"\" about 4% p.a. by saving fees). In that case it may be a feasible way to have a Belgian and a Dutch bank account and set up some money circulation. Experiences working in Italy (some years ago, SEPA payments were kind of new and the debits weren't implemented then): My guess with your service providers is that they are allowed to offer you contracts that are bound to rather arbitrary payment conditions. After all, you probably can also get a prepaid phone or a contract with a bill that you can then pay by wire transfer - however, AFAIK they are allowed to offer discounts/ask fees for different payment methods. Just like there is no law that forces the store around your corner to accept credit cards or even large EUR denominations as long as they tell you so beforehand. AFAIK, there is EU regulation saying your bank isn't allowed to charge you more for wire transger to foreign country within the SEPA zone than a national wire transfer.\"",
"title": ""
},
{
"docid": "e714ca3f65ef959e2f5a651731a8f4bf",
"text": "The GnuCash tutorial has some basics on double entry accounting: http://www.gnucash.org/docs/v1.8/C/gnucash-guide/basics_accounting1.html#basics_accountingdouble2",
"title": ""
},
{
"docid": "c4928107daac55e5455a1f8a674e89ce",
"text": "Use other currencies, if available. I'm not familiar with the banking system in South Africa; if they haven't placed any currency freezes or restrictions, you might want to do this sooner than later. In full crises, like Russian and Ukraine, once the crisis worsened, they started limiting purchases of foreign currencies. PayPal might allow currency swaps (it implies that it does at the bottom of this page); if not, I know Uphold does. Short the currency Brokerage in the US allow us to short the US Dollar. If banks allow you to short the ZAR, you can always use that for protection. I looked at the interest rates in the ZAR to see how the central bank is offsetting this currency crisis - WOW - I'd be running, not walking toward the nearest exit. A USA analogy during the late 70s/early 80s would be Paul Volcker holding interest rates at 2.5%, thinking that would contain 10% inflation. Bitcoin Comes with significant risks itself, but if you use it as a temporary medium of exchange for swaps - like Uphold or with some bitcoin exchanges like BTC-e - you can get other currencies by converting to bitcoin then swapping for other assets. Bitcoin's strength is remitting and swapping; holding on to it is high risk. Commodities I think these are higher risk right now as part of the ZAR's problem is that it's heavily reliant on commodities. I looked at your stock market to see how well it's done, and I also see that it's done poorly too and I think the commodity bloodbath has something to do with that. If you know of any commodity that can stay stable during uncertainty, like food that doesn't expire, you can at least buy without worrying about costs rising in the future. I always joke that if hyperinflation happened in the United States, everyone would wish they lived in Utah.",
"title": ""
},
{
"docid": "68e8dd4cb04f33ac12a48e82504d96dc",
"text": "If you wanted to spend money in another country, a specialist credit card would be the most cost-effective way. Near-spot exchange rate, zero-loading, no/low ATM fees. Likewise a pre-paid debit card would also allow for money transfer across borders. If this is the right situation, FOREX trading platforms are overkill to achieve a valid solution.",
"title": ""
},
{
"docid": "73263b07ceab7ff831dd179b39735b74",
"text": "Atm machine and my Credit Union account. Low fees (often zero, if the machine is on any of the same networks) and decent exchange rate, and no need to carry cash or traveler's checks to be exchanged. Alternatively, pay by credit card, though there is a foreign transaction fee on that.",
"title": ""
},
{
"docid": "21cef6e11914c95fd0ec6207b10be7a6",
"text": "Yes, one such provider is: https://www.fxcompared.com/ They allow you to compare a number of foreign currency providers, and take into account all of the fees and spreads, and give you a simple number which you can use to compare them - the amount of foreign currency you get for your domestic currency.",
"title": ""
},
{
"docid": "ccef86861b5918e8ad02925f6b4ea9c4",
"text": "Is there not some central service that tracks current currency rates that banks can use to get currency data? Sure. But this doesn't matter. All the central service can tell you is how much the rate was historically. But the banks/PayPal don't care about the historical value. They want to know the price that they'll pay when they get around to switching, not the last price before the switch. Beyond that, there is a transaction cost to switching. They have to pay the clearinghouse for managing the transaction. The banks can choose to act as a clearinghouse, but that increases their risk. If the bank has a large balance of US dollars but dollars are falling, then they end up eating that cost. They'll only take that risk if they think that they'll make more money that way. And in the end, they may have to go on the currency market anyway. If a European bank runs out of US dollars, they have to buy them on the open market. Or a US bank might run out of Euros. Or Yen. Etc. Another problem is that many of the currency transactions are small, but the overhead is fixed. If the bank has to pay $5 for every currency transaction, they won't even break even charging 3% on a $100 transaction. So they delay the actual transaction so that they can make more than one at a time. But then they have the risk that the currency value might change in the meantime. If they credit you with $97 in your account ($100 minus the 3% fee) but the price actually drops from $100 to $99, they're out the $1. They could do it the other way as well. You ask for a $100 transaction. They perform a $1000 transaction, of which they give you $97. Now they have $898 ($1000 minus the $5 they paid for the transaction plus the $3 they charged you for the transaction). If there's a 1% drop, they're out $10.98 ($8.98 in currency loss plus a net $2 in fees). This is why banks have money market accounts. So they have someone to manage these problems working twenty-four hours a day. But then they have to pay interest on those accounts, further eating into their profits. Along with paying a staff to monitor the currency markets and things that may affect them.",
"title": ""
},
{
"docid": "513c294394934b6882b8506b9d15ffa4",
"text": "All Indian Banks are offering USD accounts known as multicurrency account, where you can hold your fund, this account also permits you to book the USD to INR rates in advance if you require. You can keep your money in this account and also can remit the same back to source or other destination country.",
"title": ""
},
{
"docid": "43a9b92312ba34413f5070c89cd8da50",
"text": "I live in europe but have been paid in usd for the last few years and the best strategy I've found is to average in and average out. i.e. if you are going in August then buy some Euro every few weeks until you go. At least this way you mitigate the risk involved somewhat.",
"title": ""
},
{
"docid": "e30e4fb242f8e042d3c4cc995bc4986e",
"text": "Canada, like other second-rate economies with weak currencies, provides USD accounts. It is not the same vice versa. It is rare to find a direct deposit foreign currency account in the US as it is the world-leading currency.",
"title": ""
},
{
"docid": "a784e06e0738e08af5368a14b5afae86",
"text": "There's another dimension here as currency conversion isn't necessarily the final answer. As stated by others, converting money between the three should theoretically end up with the exact same value, less transactional costs. However the kink is that the price of most products are not updated as the currencies change. In many cases the price difference is such that even accounting for shipping and exchange fees, purchasing a product from a distributor in a foreign country can be cheaper than just picking it up at the local store. You might even be able to take advantage of this when purchasing at a single store. If that store is set up to accept multiple currencies then it's a matter of looking at the conversion rates the moment you are buying and deciding which one is the cheapest route for you. Of course, this generally will not work for smaller purchases like a cup of coffee or a meal. Primarily because the fee for the exchange might eclipse any savings.",
"title": ""
}
] |
fiqa
|
3d58c929c12a52c736c048f6b1c6ab1e
|
Are there any countries where citizens are free to use any currency?
|
[
{
"docid": "cda9331c5800927240653668f7334abc",
"text": "\"Wikipedia has a list of countries which ban foreign exchange use by its citizens. It's actually quite short but does include India and China. Sometimes economic collapse limits enforcement. For example, after the collapse of the Zimbabwean dollar (and its government running out of sufficient foreign exchange to buy the paper necessary to print more), the state turned a blind eye as the US dollar and South African rand became de facto exchange. Practicality will limit the availability of foreign exchange even in free-market economies. The average business can't afford to have a wide range of alternative currencies sitting around. Businesses which cater to large numbers of addled tourists sometimes offer one or two alternative currencies in the hopes of charging usurous rates of exchange. Even bureaux de change sometimes require you to order your \"\"rarer\"\" foreign exchange in advance. So, while it may be legal, it isn't always feasible.\"",
"title": ""
},
{
"docid": "b830b23272edea7523fbd60e05bdec03",
"text": "Sounds like you have a goldbug whispering in your ear. The Coinage Act doesn't restrict you from using foreign currency or lawful commodity or service to fulfill a debt. You are free to do that whenever you enter into an explicit or implicit contract with another party. If that wasn't the case, your kid trading his bag of chips for a bag of cookies at lunch would be a criminal act. It does mean that you ultimately must accept US currency to settle a debt. Following the previous example, if your kid gives his friend the bag of chips, but the cookies get destroyed somehow before being transferred, the friend can offer a couple of dollars to complete the transaction. The whole point of the Coinage Acts is to set a level playing field. If you don't pick one dominant store of value, you have a situation where it is impossible to evaluate the cost of goods and services. It has nothing to do with some competition with foreign currency. A robust, modern economy requires an adequate supply of capital and a common reference point for value within the economy. Think about it further with respect to Article 1, Section 10 of the Constitution. Would you want a fiscally profligate state like California or New York to be able to print money and compel you as a contractor, employee or creditor to accept their scrip as payment? (Or worse, require payment in Gold or Vermont-issued dollars, but pay you in their money.) Of course not. That's why the Federal government controls the currency, and a dollar in Alaska is the same as a dollar in Georgia.",
"title": ""
},
{
"docid": "f192e3451471bd51285576936d970749",
"text": "If I understand correctly, you're actually asking why there isn't a society whose members generally accept/use any currency for transactions, and just like, Google the exchange rate or something. The answer is because it's exceptionally inconvenient. Can you imagine having a wallet with 200 pouches for all the different currencies? Why would you want to deal with exchange rates all the time? What if the value of a currency changes? (A single currency at least has the illusion of being stable). Et cetera.",
"title": ""
},
{
"docid": "e76aee75fef6dbe440515cd180e1599e",
"text": "Shops in most touristic places tend to accept major currencies (at least dollar and euro). I remember a trip in Istanbul before the euro existed, the kids selling postcards near the blue mosque were able to guess your country and announce in your language the price in your currency.",
"title": ""
}
] |
[
{
"docid": "cbf4a5de9f84ac8dfd484389fa250ed0",
"text": "\"Currently, there is simply no reason to do so. It's not a problem. It is no more of a problem or effort to denote \"\"5,000\"\" than it is to denote \"\"50.00\"\". But if there were a reason to do so, it wouldn't be all that difficult. Of course there would be some minor complications because some people (mostly old people presumably) would take time getting used to it, but nothing that would stop a nation from doing so. In Iceland, this has happened on several occasions in the past and while Iceland is indeed a very small economy, it shouldn't be that difficult at all for a larger one. A country would need a grace period while the old currency is still valid, new editions of already circulating cash would need to be produced, and a coordinated time would need to be set, at which point financial institutions change their balances. Of course it would take some planning and coordination, but nothing close to for example unifying two or more currencies into one, like the did with the euro. The biggest side-effect there was an inflation shot when the currencies got changed in each country, but this can be done even with giant economies like Germany and France. Cutting off two zeros would be a cakewalk in comparison. But in case of currencies like the Japanese Yen, there is simply no reason to take off 2 zeros yet. Northern-Americans may find it strange that the numbers are so high, but that's merely a matter of what you're used to. There is no added complication in paying 5.000 vs. 50 at a restaurant, it merely takes more space on a computer screen and bill, and that's not a real problem. Besides, most of the time, even in N-America, the cents are listed as well, and that doesn't seem to be enough of a problem for people to concern themselves with. It's only when you get into hyper-inflation when the shear space required for denoting prices becomes a problem, that economies have a real reason to cut off zeros.\"",
"title": ""
},
{
"docid": "07a3309a18a2c1be2bdf75d191c98722",
"text": "If this is your money, and if you can - if asked - prove that you legally made it, there is no limit. You pay taxes on your income, so sending it into the world is tax free. Your citizenship is not relevant for that.",
"title": ""
},
{
"docid": "edb1f705ad85940e241269d785bb0f6b",
"text": "Originally dollars were exchangeable for specie at any time, provided you went to a govt exchange. under Bretton Woods this was a generally fixed rate, but regardless there existed a spread on gold. This ceased to be the case in 71 when the Nixon shock broke Bretton woods.",
"title": ""
},
{
"docid": "791b9c92810949d5143fb8de3b0426a3",
"text": "I am a US citizen by birth only. I left the US aged 6 weeks old and have never lived there. I am also a UK citizen but TD Waterhouse have just followed their policy and asked me to close my account under FATCA. It is a complete nightmare for dual nationals who have little or no US connection. IG.com seem to allow me to transfer my holdings so long as I steer clear of US investments. Furious with the US and would love to renounce citizenship but will have to pay $2500 or thereabouts to follow the US process. So much for Land of the Free!",
"title": ""
},
{
"docid": "9ce931d868b678112c38d510efe1c7d3",
"text": "\"I think the important fact here is that all of our currencies are Fiat Currencies. So currency technically means nothing, because (as you mentioned) the country could print more any time it wants. Now what makes it useful is the combination of two big things: So I would say, we know they owe us 100 \"\"dollars\"\", and the dollar is just a word we use to represent value. It is not technically worth anything, beyond the fact that the government controls the amount of that currency in circulation and you trust that people still want more of that currency.\"",
"title": ""
},
{
"docid": "302019998d8505c3d4064045d88f4dcc",
"text": "TD Bank (Northeast US) has free change counting machines at its branches. You don't have to have an account to use them.",
"title": ""
},
{
"docid": "6bd58cfcf59df1678bf6560942b4d86c",
"text": "No, there is nothing on the sidelines. Currency is an investment. There is no such thing as uninvested wealth. If you had a million in USD at the beginning of 2017, you would currently be out about sixty grand. There is no neutral way to store wealth.",
"title": ""
},
{
"docid": "b45f748a0c31dd76eb6f670978f51320",
"text": "Fist money does not have legal tender. And technically there are thousands of people willing to fight for bitcoin, who can be seen as an army so in that logic bitcoin has some intrinsic value. But both don't have intrinsic value. Most sources on the internet I can find agree with that. Wikipedia, investopedia and many others. Not that money needs intrinsic value. If the market value is 1000 times above the intrinsic value then the intrinsic value is not even relevant. But 1000 * 0 = 0 and the intrinsic value of the dollar itself (not coins) will always be 0. Same for the EUR and then YUAN.",
"title": ""
},
{
"docid": "03a02fa136bd870c1b7e0c6f9b687c59",
"text": "Dollars are bits you don't control. The banking system has your bits and they can charge you more bits to move your bits around. At any point, they could freeze your accounts and suddenly you have no bits. It's all designed to make it so you can't function in society without them controlling your bits.",
"title": ""
},
{
"docid": "47d7e6b46352b8e46c514f9e74f02502",
"text": "There are several local currency initiatives in the US list here. Most are attempts to normalize a value as a living wage, or encourage local consumption networks. If you are in the catchment region of one of these, see if you can get a grant or loan to get started (if you are willing to buy into the philosophy of the group such as a $10 minimum wage) m",
"title": ""
},
{
"docid": "b7640319b1c12b9083eb1af33680b292",
"text": "US currency doesn't expire, it is always legal tender. I can see some trouble if you tried to spend a $10,000 bill (you'd be foolish to do so, since they are worth considerably more). Maybe some stores raise eyebrows at old-style $100's (many stores don't take $100 bills at all), but you could swap them for new style at a bank if having trouble with a particular store. Old-series currency can be an issue when trying to exchange US bills in other countries, just because it doesn't expire here, doesn't mean you can't run into issues elsewhere. Other countries have different policies, for example, over the last year the UK phased in a new five pound note, and as of last month (5/5/2017) the old fiver is no longer considered legal tender (can still swap out old fivers at the bank for now at least). Edit: I mistook which currency you took where, and focused on US currency instead of Canadian, but it looks like it's the same story there.",
"title": ""
},
{
"docid": "a1497dff2d1b493e990d08b1c6eb2a8f",
"text": "Any person at any time may produce their own currency, one can even do so on the back of a paper napkin, ripped beer coaster or whatever. This is NOT a banking privilege, it is within the lawful ability of anyone capable of engaging in commerce. It is called a 'negotiable instrument' ... it gives the holder rights to a sum of money. Notice that I say 'holder' ... this is what distinguishes it from a non-negotiable instrument, the fact that you don't need to redeem it from source, you can pass it to another who then becomes the 'holder in due course' and thus obtains the rights conferred. The conferable rights over a sum of money (or, indeed, other asset) are themselves 'value' Do banks do this ? Yes, all the time! ... one of the simplest examples are cheques drawn against the bank, which are considered 'as good as cash'. Usually they will be drawn out to the order of the person you wish to pay ... but can equally be drawn out to bearer. The only reasons they resist making out to bearer is : But you can write your own at 'any time' on 'any thing' ... See the apocryphal, yet deliciously entertaining, tale of the 'negotiable cow'",
"title": ""
},
{
"docid": "bffafb1c110a47aebd15ce939c82941e",
"text": "This is more of an economics question than personal finance. That said, I already started writing an answer before I noticed, so here are a few points. I'll leave it open for others to expand the list. Advantages Disadvantages Advantages Disadvantages The flip-side to the argument that more users means more stability is that the impact of a strong economy (on the value of the currency) is diluted somewhat by all the other users. Indeed, if adopted by another country with similar or greater GDP, that economy could end up becoming the primary driver of the currency's value. It may be harder to control counterfeiting. Perhaps not in the issuing country itself, but in foreign countries that do not adopt new bills as quickly.",
"title": ""
},
{
"docid": "3048fcd106371966f419a784a95ddf8e",
"text": "The closest thing that you are looking for would be FOREX exchanges. Currency value is affected by the relative growth of economies among other things, and the arbritrage of currencies would enable you to speculate on the relative growth of an individual economy.",
"title": ""
},
{
"docid": "fc17bf0c8d9eecdcd412998741cfc8f4",
"text": "Short answer: No. Some of those 'automatic' payments you've agreed to (presumably by signing a PAD form) are initiated in batch by the company whom you're buying from (phone company, cable company etc). So no, the bank has no indication from one day to the next what is coming through. And the request goes from say, your cable company to THEIR merchant bank to YOUR bank. Typically you have a monthly bill date which is fixed, and they should have terms established when it is due. If a payment comes back NSF they can retry once - but only for the same amount and I believe it is 14 days from the initial payment attempt. It makes it predictable, and you'd figure banks would clue in and start to predict for you when things may come out - but strictly speaking your bank doesn't know when or how much.",
"title": ""
}
] |
fiqa
|
87ddd81560fa864d3db0838e64bec2af
|
Eligibility for stock rights offering
|
[
{
"docid": "847ec3502d4bba1350c0a140e560d07c",
"text": "Yes, there is a delay between when you buy a stock and when you actually take ownership of it. This is called the settlement period. The settlement period for US equities is T+2 (other markets have different settlement periods), meaning you don't actually become a shareholder of record until 2 business days after you buy. Conversely, you don't stop being a shareholder of record until 2 business days after you sell. Presumably at some point in the (far) future all public markets will move to same-day changes of ownership, at which point companies will stop making announcements of the form all shareholders of record as of September 22nd and will switch to announcements of the form all shareholders of record as of September 22nd at 13:00 UTC",
"title": ""
}
] |
[
{
"docid": "a6836e3ee612b5edaa4d1ad8008ede62",
"text": "My memory served me correctly. I remember this because it was on my Series 7, so that link is misleading if you are studying for the 7. Here is the exception: > Transactions to Which the Rule is Not Applicable (Proposed FINRA Rule 2121(d)) Consistent with the initial proposal, FINRA Rule 2121(d) provides that FINRA Rule 2121 is not applicable to: (1) **the sale of securities where a prospectus** or offering circular must be delivered and the securities are sold at the specific public offering price, based on NASD IM-2440-1(d); and (2) a transaction in a non-investment grade debt security with a QIB that meets the conditions set forth in proposed FINRA Rule 2122(b)(9), which is described below. If you're studying for the 7, you will know that every mutual fund sale requires the delivery of a prospectus.",
"title": ""
},
{
"docid": "c7c6dd68f11e43b59b0781486252ba82",
"text": "No, it doesn't work like this. Your charitable contribution is limited to the FMV. In your scenario your charitable contribution is limited by the FMV, i.e.: you can only deduct the worth of the stocks. It would be to your advantage to sell the stocks and donate cash. Had your stock appreciated, you may be required to either deduct the appreciation amount from the donation deduction or pay capital gains tax (increasing your basis to the FMV), depending on the nature of your donation. In many cases - you may be able to deduct the whole value of the appreciated stock without paying capital gains. Read the link below for more details and exceptions. In this scenario, it is probably more beneficial to donate the stock (even if required to pay the capital gains tax), instead of selling and donating cash (which will always trigger the capital gains tax). Exceptions. However, in certain situations, you must reduce the fair market value by any amount that would have been long-term capital gain if you had sold the property for its fair market value. Generally, this means reducing the fair market value to the property's cost or other basis. You must do this if: The property (other than qualified appreciated stock) is contributed to certain private nonoperating foundations, You choose the 50% limit instead of the special 30% limit for capital gain property, discussed later, The contributed property is intellectual property (as defined earlier under Patents and Other Intellectual Property ), The contributed property is certain taxidermy property as explained earlier, or The contributed property is tangible personal property (defined earlier) that: Is put to an unrelated use (defined later) by the charity, or Has a claimed value of more than $5,000 and is sold, traded, or otherwise disposed of by the qualified organization during the year in which you made the contribution, and the qualified organization has not made the required certification of exempt use (such as on Form 8282, Donee Information Return, Part IV). See also Recapture if no exempt use , later. See more here.",
"title": ""
},
{
"docid": "922ae0ac97a125d6aea9d7bae67c61cf",
"text": "No. Not directly. A company issues stock in order to raise capital for building its business. Once the initial shares are sold to the public, the company doesn't receive additional funds from future transactions of those shares of stock between the public. However, the company could issue more shares at the new higher price to raise more capital.",
"title": ""
},
{
"docid": "f94d44078540e4975937396e59a5facd",
"text": "\"I did a little research and found the eligible investments for TFSAs. In this document under heading \"\"Shares of private and other corporations\"\", sub heading \"\"Shares of small business corporations\"\" there is clause about owning less than 10% share and less than $25000 total value of the corporation. Generally, a connected shareholder of a corporation (as defined in subsection 4901(2) of > the Regulations) at any time is a person who owns, directly or indirectly, at that time, 10% or more of the shares of any class of shares of the corporation or of any other corporation related to the corporation. However, where • such a person is dealing at arm's length with the corporation or any other related corporation; and • the aggregate cost amount of all shares of the corporation or any other related corporation the person owns, or is deemed to own, is less than $25,000 that person will not be a connected shareholder of the corporation. For purposes of the 10% and $25,000 tests, the rules in the definition of ìspecified shareholderî in subsection 248(1) apply with the result that certain shares will be deemed to be owned by the shareholder. For example, by virtue of paragraphs (a) and (b), respectively, of that definition, an annuitant, a beneficiary or a subscriber under a plan trust is deemed to own the shares owned by a person with whom the annuitant, beneficiary or subscriber is not dealing at armís length, as well as the shares owned by the plan trust. In addition, any share that • the annuitant, beneficiary, or subscriber under a plan trust; or • a person not dealing at arm's length with any of the above has a right to acquire is also included in the calculation of the percentage and cost amount of the shares held for purposes of the 10% and $25,000 tests pursuant to subsection 4901(2.2) of the Regulations.\"",
"title": ""
},
{
"docid": "c5b994a25ca09a67f011ce562354c85e",
"text": "\"I'm not the OP, but I'm happy to give a brief overview. Basically, pre-JOBS act there were a lot of limits on who could make an equity investment in a non-public company (i.e. a startup or even a hedge fund). There were some loopholes, but basically you had to be an 'accredited investor'. An accredited investor was someone who either has made $200,000+ ($300,000+ for married people) for the past two years and expects to make that much again in the current year. Alternately, they could have a net worth of $1 million, excluding the value of their primary residence. There was also a limit of 500 investors for a non-public company before the company had to become public (they didn't really have to IPO, but they did have to file their financials with the SEC, so the effect was basically the same). Finally, non-public companies were prohibited from seeking investment through advertising basically. They couldn't take out an ad in a paper or event send a mass email and say, \"\"Hey, we're looking to raise a $1 million funding round, contact us if you're interested!\"\" Okay, now after the JOBS Act. The JOBS Act changed a) the number and type of investors who could make equity investments in a non-public company b) the regulation of advertising for investments. Post-JOBS private companies could have 2,000 shareholders and 500 of those could be unaccredited (e.g. regular people like you and I). The change in the number of shareholders isn't really that important because it's just shareholders of record, but that's another post for another day. There are still some requirements for unaccredited shareholder, which I don't remember off the top of my head. I think you have to have income of at least $40k. They also changed the solicitation ban, so it's possible that you might see an ad in the WSJ someday for a startup company, venture capital fund, hedge fund, etc. There are some other things it changed, but IMO those are the two most important.\"",
"title": ""
},
{
"docid": "7acff7526aae2b84408778f98027f005",
"text": "1st question: If I bought 1 percent share of company X, but unfortunately it closed down because of some reason as it was 1 million in debt. Since I had 1 percent of it shares, does it mean I also have to pay the 1 percent of it's debt? Stock holders are not liable for anything more than their current holdings. In cases of Ch11 bankruptcy stock holders usually get nothing. In Ch7 the holdings will be severely hit but one may get 10% of pre-bk prices. I would strongly recommend against investing in bankrupt companies. A seasoned trader can make plenty off short term trades. The payoff structure is usually: 2nd question: Is there an age requirements to enter the stock market? I am 15 years old this year. Yes it is generally 18, but some firms offer a joint option that your parents can open.",
"title": ""
},
{
"docid": "19c215406af14db05a1acffe9423ae75",
"text": "Nothing. Stockbrokers set up nominee accounts, in which they hold shares on behalf of individual investors. Investors are still the legal owners of the shares but their names do not appear on the company’s share register. Nominee accounts are ring-fenced from brokers’ other activities so they are financially secure.",
"title": ""
},
{
"docid": "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": "6ea060c6609dda916ca73e499a6d44a5",
"text": "A company generally sells a portion of its ownership in an IPO, with existing investors retaining some ownership. In your example, they believe that the entire company is worth $25MM, so in order to raise $3MM it is issuing stock representing 12% of the ownership stake (3/25), which dilutes some or all of the existing stockholders' claims.",
"title": ""
},
{
"docid": "ead718688f897093ee037a805e51a8eb",
"text": "As an NRI there are certain limitations as well as benefits. Limitation in terms of holding a specified quantity of shares in company, thus the need to open new account, so that Bank can track the holding and inform regulator. Benfits in terms of able to reptriate any amount of funds from trades in this account. In order to ease this, there are 2 Accounts NRO demat account (Non PINS): Essentially this does not automatically allow for reptration of funds [like NRE] but its more like NRO, amount upto USD 1 million per year. NRO Demat account PINS: Here you can buy fresh shares and take the proceeds out of country without any limits. So in short, you would need an NRO Demat NON PINS Account. Transfer your existing shares here. Sell whenever you like. Open a NRO Demat PINS account, if you wish to buy more with status as NRI, if you don't wish you buy, there is no need for this account.",
"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": "efb02741e131bbeb35fabd25c9d5edb7",
"text": "\"I have received a response from SIPC, confirming littleadv's answer: For a brief background, the protections available under the Securities Investor Protection Act (\"\"SIPA\"\"), are only available in the context of a liquidation proceeding of a SIPC member broker-dealer and relate to the \"\"custody\"\" of securities and related cash at the SIPC member broker-dealer. Thus, if a SIPC member broker-dealer were to fail at a time when a customer had securities and/or cash in the custody of the SIPC member broker-dealer, in most instances it would be SIPC's obligation to restore those securities and cash to the customer, within statutory limits. That does not mean, however, that the customer would necessarily receive the original value of his or her purchase. Rather, the customer receives the security itself and/or the value of the customer's account as of the day that the liquidation commenced. SIPC does not protect against the decline in value of any security. In a liquidation proceeding under the SIPA, SIPC may advance up to $500,000 per customer (including a $250,000 limit on cash in the account). Please note that this protection only applies to the extent that you entrust cash or securities to a U.S. SIPC member. Foreign broker dealer subsidiaries are not SIPC members. However, to the extent that any assets, including foreign securities, are being held by the U.S. broker dealer, the assets are protected by SIPC. Stocks listed on the LSE are protected by SIPC to the extent they are held with a SIPC member broker dealer, up to the statutory limit of $500,000 per customer. As I mentioned in the comments, in the case of IB, indeed they have a foreign subsidiary, which is why SIPC does not cover it (rather they are insured by Lloyds of London for such cases).\"",
"title": ""
},
{
"docid": "934ef0bc0a19ea24509fa1f5c7af0b94",
"text": "In my original question, I was wondering if there was a mathematical convention to help in deciding on whether an equity offering OR debt offering would be a better choice. I should have clarified better in the question, I used Vs. which may have made it unclear.",
"title": ""
},
{
"docid": "f531cb1fedb1aedb3083c67fa8c7fb9a",
"text": "This seemed very unrealistic, I mean who would do that? But to my immense surprise the market price increased to 5.50$ in the following week! Why is that? This is strange. It seems that people mistakenly [?] believe that the company should be at 5.5 and currently available cheap. This looks like irrational behaviour. Most of the past 6 months the said stock in range bound to 4.5 to 5. The last time it hit around 5.5 was Feb. So this is definitely strange. If the company had set a price of 6.00$ in the rights offering, would the price have increased to 6$? Obviously the company thinks that their shares are worth that much but why did the market suddenly agree? Possibly yes, possible no. It can be answered. More often the rights issue are priced at slight discount to market price. Why did this happen? Obviously management thinks that the company is worth that much, but why did the market simply believe this statement without any additional information? I don't see any other information; if the new shares had some special privileges [in terms of voting rights, dividends, etc] then yes. However the announcements says the rights issues is for common shares.",
"title": ""
},
{
"docid": "60e6bdbead28c05fcc3b0f90ae5bcc63",
"text": "Of course, this calculation does not take into consideration the fact that once the rights are issues, the price of the shares will drop. Usually this drop corresponds to the discount. Therefore, if a rights issue is done correctly share price before issuance-discount=share price after issuance. In this result, noone's wealth changes because shareholders can then sell their stock and get back anything they had to put in.",
"title": ""
}
] |
fiqa
|
0efd66b77955f70e381b7172d38057dc
|
How do small cap stocks perform vs. large cap stocks (like Dow constituents) during bear trends?
|
[
{
"docid": "b83a3611deb97cfa58b7ba4e4c074fc7",
"text": "To a certain extent, small cap companies will in general follow the same trends as large cap companies. The extent of this cointegration depends on numerous factors, but a prime reason is the presence of systemic risk, i.e. the risk to the entire market. In simple terms, sthis is the risk that your portfolio will approach asymptotically as you increase its diversification, and it's why hedging is also important. That being said, small cap businesses will, in general, likely do worse than large cap stocks, for several reasons. This was/is certainly the case in the Great Recession. Small cap businesses have, on average, higher betas, which is a measure of a company's risk compared to the overall market. This means that small cap companies, on average outperform large cap companies during boom times, but it also means that they suffer more on average during bear times. The debate over whether or not the standard beta is still useful for small cap companies continues, however. Some economists feel that small cap companies are better measured against the Russell 2000 or similar indexes instead of the S&P 500. Small cap companies may face problems accessing or maintaining access to lines of credit. During the Great Recession, major lenders decreased their lending to small businesses, which might make it harder for them to weather the storm. On a related point, small businesses might not have as large an asset base to use as collateral for loans in bad times. One notable large cap company that used its asset base to their advantage was Ford, which gave banks partial ownership of its factories during hard times. This a) gave Ford a good amount of cash with which to continue their short-term operations, and b) gave the banks a vested interest in keeping Ford's lines of credit open. Ford struggled, but it never faced the financial problems of GM and Chrysler. Despite political rhetoric about Main Street vs. Wall Street, small businesses don't receive as much government aid in times of crisis as some large cap companies do. For example, the Small Business Lending Fund, a brilliant but poorly implemented idea in 2010, allocated less than $30 billion to small businesses. (The actual amount loaned was considerably less). Compare that to the amounts loaned out under TARP. Discussions about corporate lobbying power aside, small businesses aren't as crucial to the overall stability of the financial system Small businesses don't always have the manpower to keep up with changes in regulation. When the Dodd-Frank Act passed, large banks (as an example), could hire more staff to understand it and adapt to it relatively easily; small banks, however, don't always have the resources to invest in such efforts. There are other reasons, some of which are industry-specific, but these are some of the basic ones. If you want visual confirmation that small cap businesses follow a similar trend, here is a graph of the Russell 2000 and S&P 500 indexes: Here is a similar graph for the Russell 2000 and the Dow Jones Industrial Average. If you wanted to confirm this technically and control for the numerous complicated factors (overlap between indexes, systemic risk, seasonal adjustment, etc.), just ask and I'll try to run some numbers on it when I have a chance. Keep in mind, too, that looking at a pretty picture is no substitute for rigorous financial econometrics. A basic start would be to look at the correlation between the indexes, which I calculate as 0.9133 and 0.9526, respectively. As you can see, they're pretty close. Once again, however, the reality is more complicated technically, and a sufficiently detailed analysis is beyond my capabilities. Just a quick side note. These graphs show the logarithm of the values of the indexes, which is a common statistical nuance that is used when comparing time series with radically different magnitudes but similar trends. S&P500 and Russell 2000 data came from Yahoo! Finance, and the Dow Jones Industrial Average data came from Federal Reserve Economic Data (FRED) Per usual, I try to provide code whenever possible, if I used it. Here is the Stata code I used to generate the graphs above. This code assumes the presence of russell2000.csv and sp500.csv, downloaded from Yahoo! Finance, and DJIA.csv, downloaded from FRED, in the current directory. Fidelity published an article on the subject that you might find interesting, and Seeking Alpha has several pieces related to small-cap vs. large-cap returns that might be worth a read too.",
"title": ""
}
] |
[
{
"docid": "7dba0900e0c8d2e5b352741e92b3abfd",
"text": "Equal weighted indexes are not theoretically meant to be less volatile or less risky; they're just a different way to weigh stocks in an index. If you had a problem that hurt small caps more than large caps, an equal weighted index will be hurt more than a market-cap weighted one. On the other hand, if you consider that second rung companies have come up to replace the top layer, it makes sense to weigh them on par. History changes on a per-country basis - in India, for instance, the market's so small at the lower-cap end that big money chases only the large caps, which go up more in a liquidity driven move. But in a more secular period (like the last 18 months) we see that smaller caps have outperformed.",
"title": ""
},
{
"docid": "0d004b1d7e0b8e2309af0ee4e6b08f4d",
"text": "Volumes are used to predict momentum of movement, not the direction of it. Large trading volumes generally tend to create a price breakout in either positive or negative direction. Especially in relatively illiquid stocks (like small caps), sudden volume surges can create sharp price fluctuations.",
"title": ""
},
{
"docid": "f9372e6dd41524dc78d7511dbcc45a15",
"text": "It really varies based on the stock (volatility is the main determining factor), and whether you are talking about temporary or permanent price impact, how long you are trading, etc. The below paper fits a functional form to a set of Citigroup data and estimates for a 10% dtv trade in a large cap like IBM the price would move on the order of 30bps. Presumably smallcaps would be more expensive. Their estimate seems a bit low to me but I'm more familiar with futures, so maybe it's not unreasonable https://www.google.com/url?sa=t&source=web&rct=j&ei=JjDsU_L-CI33yQSh4oKQDA&url=http://www.math.nyu.edu/~almgren/papers/costestim.pdf&cd=3&ved=0CCQQFjAC&usg=AFQjCNGN6LmPb9sHR5dljcJJ2rV4bNE4Jg&sig2=WYhcCUFr8WcRfetA24wXLg",
"title": ""
},
{
"docid": "ea17710a4fd7f5570df071d180f65a63",
"text": "\"It appears that there's a confusion between the different types of average. Saying \"\"the average investor\"\" generally means the most common type of small-scale unsophisticated investor - the mode (or possibly median) investor. However, while this class of investors is numerous, each of them has assets that are quite small compared to some other types of investors; and the market average performance is determined proportionally to the amount of assets held, not to the number of holders; so the performance of large investors \"\"counts\"\" that much more. For any measure, the mode of performance can be (and often is) different from the mean performance - in this case, Dalbar is saying that the most common results are lower than the (weighed) average results.\"",
"title": ""
},
{
"docid": "f0bae64c25e149c26be7133c595e6050",
"text": "What it is trying to describe is the psychology around the current price of the stock. In candlestick charts for example, if you get what is called a Bearish Engulfing Candle (where the open is higher than the previous day's close and the close is lower than the previous day's open) at the top of an uptrend, this could mean that the top may have been reached and the bears are taking over the bulls. A Bearish Engulfing candle is seen as a bearish reversal pattern, as the bulls start the day by opening the stock at a higher price than yesterday's close, but by the end of the day the bears have taken over as the price drops below yesterday's open. This reversal pattern can be even more pronounced and effective if it coincides with other chart indicators, such as an overbought momentum indicator. If you want to learn more look up about the Psychology of the market and Candlestick Charting.",
"title": ""
},
{
"docid": "76bd5b548350bd4dc9468e92b1c95d13",
"text": "I agree. I think that is a good point, and that is also why I wanted to post and ask. If I could do this in a bear market I bet I could be Warren Buffett by the time my heart stops. I use my benchmark as a mix of S&P, Nasdaq, and Russell 3000. I got a near flat market for 2015 (only 0.23%). I thought that was decent but yes the rest of the years have been quite bullish",
"title": ""
},
{
"docid": "77709d67eb01b6301a7a4f77c3b801a8",
"text": "\"I went to Morningstar's \"\"Performance\"\" page for FUSEX (Fideltiy's S&P 500 index fund) and used the \"\"compare\"\" tool to compare it with FOSFX and FWWFX, as well as FEMKX (Fidelity Emerging Markets fund). According to the data there, FOSFX outperformed FUSEX in 2012, FEMKX outperformed FUSED in 2010, and FWWFX outperformed FUSEX in both 2010 and 2012. When looking at 10- and 15-year trailing returns, both FEMKX and FWWFX outperformed FUSEX. What does this mean? It means it matters what time period you're looking at. US stocks have been on an almost unbroken increase since early 2009. It's not surprising that if you look at recent returns, international markets will not stack up well. If you go back further, though, you can find periods where international funds outperformed the US; and even within recent years, there have been individual years where international funds won. As for correlation, I guess it depends what you mean by \"\"low\"\". According to this calculator, for instance, FOSFX and FUSEX had a correlation of about 0.84 over the last 15 years. That may seem high, but it's still lower than, say, the 0.91 correlation between FUSEX and FSLCX (Fideltiy Small Cap). It's difficult to find truly low correlations among equity funds, since the interconnectedness of the global economy means that bull and bear markets tend to spread from one country to another. To get lower correlations you need to look at different asset classes (e.g., bonds). So the answer is basically that some of the funds you were already looking at may be the ones you were looking for. The trick is that no category will outperform any other over all periods. That's exactly what volatility means --- it means the same category that overperforms in some periods will underperform in others. If international funds always outperformed, no one would ever buy US funds. Ultimately, if you're trying to decide on investments for yourself, you need to take all this information into account and combine it with your own personal preferences, risk tolerance, etc. Anecdotally, I recently did some simulation-based analyses of Vanguard funds using data from the past 15 years. Over this period, Vanguard's emerging markets fund (VEIEX) comes out far ahead of US funds, and is also the least-correlated with the S&P 500. But, again, this analysis is based only on a particular slice of time.\"",
"title": ""
},
{
"docid": "e3c2583945301f8f9b14c9f8f0af19fa",
"text": "S & P's site has a methodology link that contains the following which may be of use: Market Capitalization. Unadjusted market capitalization of US$ 4.6 billion or more for the S&P 500, US$ 1.2 billion to US$ 5.1 billion for the S&P MidCap 400, and US$ 350 million to US$ 1.6 billion for the S&P SmallCap 600. The market cap of a potential addition to an index is looked at in the context of its short- and medium-term historical trends, as well as those of its industry. These ranges are reviewed from time to time to assure consistency with market conditions. Liquidity. Adequate liquidity and reasonable price – the ratio of annual dollar value traded to float adjusted market capitalization should be 1.00 or greater, and the company should trade a minimum of 250,000 shares in each of the six months leading up to the evaluation date. Domicile. U.S. companies. For index purposes, a U.S. company has the following characteristics: The final determination of domicile eligibility is made by the U.S. Index Committee.",
"title": ""
},
{
"docid": "e3bf8deef4aa1a57d273ab02cd54fbce",
"text": "I'm not sure how detailed of an explanation you're hoping for. Bear ETFs basically just short sell the underlying asset. The more highly levered ETFs will also use a combination of options, futures, and swaps to achieve their target leverage. The inversion isn't perfect though, and their target is usually just to close inverse to the *daily* return of their underlying asset. If you feel like reading, [here is an example.](http://direxioninvestments.onlineprospectus.net/DirexionInvestments//SPXS/index.html?open=Summary%20Prospectus) You can find the investment overview on page 4.",
"title": ""
},
{
"docid": "80ac03554096a16e17336eac7100f440",
"text": "\"So you're basically saying that average market fluctuations have an affect on individual stocks, because individual stocks are often priced in relation to the growth of the market as a whole? Also, what kinds of investments would be considered \"\"risk free\"\" in this nomenclature?\"",
"title": ""
},
{
"docid": "b2c844760b10919a890be503d0f7d801",
"text": "\"They don't, actually. Though in some time frames S&P 500 growth out performs S&P 500, it often lags. This is because \"\"growth\"\" doesn't refer to what happens to your account, but rather the type of stock in the index -- roughly speaking, it's the half of the S&P with the best earnings growth. That would be great, except it's not looking for is to see if that growth is worth buying. A stock with a 20% growth rate is a great buy at a P/E of 15, but a terrible buy at P/E/ 50. That leads to what JB King was talking about -- there's also the S&P 500 Value, which is roughly the cheapest stocks relative to earnings. Value does tend to beat the broad index over the long haul, because there's nothing like getting a good deal (note a stock can be in both the growth and value categories). This holds true with other indexes as well like the Russel 2000. All that said, you're not going to see a huge difference between S&P 500 and S&P 500 Growth. I believe this is because the S&P 500 itself leans a bit to the growthy side. PS: With VOOG Vanguard is tracking the S&P 500 Growth Index, which is actually a thing and not Vanguard itself filtering stocks.\"",
"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": "0368cb6eed25fe1d2d0b92360ba78eec",
"text": "Stocks, Bonds, Bills, and Lottery Tickets notes the work of Fama and French who researched the idea of a small-cap premium along with a value premium that may be useful to note in terms of what has outperformed if one looks from 1926 to present. Slice and dice would also be another article about an approach that over weights the small-cap and value sides of things if you want another resource here.",
"title": ""
},
{
"docid": "59d3168ad54e0a80440d3066acad7246",
"text": "This doesn't really make sense, as the small cap indices have a similar rate of growth as the s&p 500. The global scale has some relevance, but exports are included in GDP as well, so it's not the full story. A better answer, as is noted in comments lower down, is that the S&P does not **grow** at 6%. It *returns* 6% per year. The dividend yield of the s&p is a bit over 2%. Dividends are not growth, they are simply income; they may also grow themselves, but rarely by 6% per year (in real terms). Additional income that's not paid out in dividends probably amounts to another 1-2%. Growth is the final 1-3%, which makes it roughly match GDP.",
"title": ""
},
{
"docid": "54284d2a3c8a95d3298247d368e50224",
"text": "\"The Investment Entertainment Pricing Theory (INEPT) has this bit to note: The returns of small growth stocks are ridiculously low—just 2.18 percent per year since 1927 (versus 17.47 percent for small value, 10.06 percent for large growth, and 13.99 percent for large value). Where the S & P 500 would be a blend of large-cap growth and value so does that meet your \"\"beat the market over the long term\"\" as 1927-1999 would be long for most people.\"",
"title": ""
}
] |
fiqa
|
e2e362b774d61f0ed9899b3fefc81448
|
“Top down” and “bottom-up approach”
|
[
{
"docid": "3abfe6c068b124327ded89f42cbe279f",
"text": "\"I think it's an argument for Keynesian economic policy, basically an abridged version of this paragraph from the Wikipedia article: Keynesian economists often argue that private sector decisions sometimes lead to inefficient macroeconomic outcomes which require active policy responses by the public sector, in particular, monetary policy actions by the central bank and fiscal policy actions by the government, in order to stabilize output over the business cycle. \"\"private sector decisions\"\" are bottom-up: millions of businesses and individuals make economic decisions and \"\"the economy\"\" is the sum of what they do. \"\"monetary policy actions by the central bank and fiscal policy actions by the government\"\" are top-down: central institutions implement measures that are intended to have a positive effect (such as reducing unemployment) on millions of individuals.\"",
"title": ""
},
{
"docid": "5ddc4c4bb893b0eae2596283e5908f9e",
"text": "\"Top down approach needed when bottom-up approach of markets leads to periods of high unemployment Imagine a chart that starts with one point at the top and breaks it down into the details by the time you get to the bottom. People can read this chart either from the top and go down or from the bottom and go up. Wikipedia does have articles on Top-down and bottom-up design if you want more detail than I give here. Top down refers to the idea of starting at a high level and then working down to get into the details. For example, in planning a vacation, one could start with what continent to go, then which country, then which cities in that country and so forth. Thus, the idea here would be to start with macroeconomic trends and then create a strategy to fix this as the other way is what created the problem. The idea of taking a subject or system and breaking it down into individual pieces would be another way to state this. Bottom up refers to the idea of starting with the details and then build up to get a general idea. To use the vacation example again, this is starting with the cities and then building up to build the overall itinerary. Within political circles you may here of \"\"grassroots\"\" efforts where citizens will form groups to gain influence. This would be an example of bottom up since it is starting with the people. The idea of taking individual components and putting them together to build up something would be another way to state this. The statement is saying that a completely different style of approach will be necessary than the one that created the problem here.\"",
"title": ""
}
] |
[
{
"docid": "1096c556637346a2f810598061b421e2",
"text": "The tried-and-true policy would be government spending (and not just any government spending, but one with positive feedback on the whole economy) such as specific subsidized industry or high-tech projects (most likely wind/solar, high-efficiency and hybrid cars, etc.). And this includes something like addition education in fields that are needed. Instead we give money to banks, tax breaks for the already wealthy, and then deregulate finance when the problem seemed to stem from deregulation and non-enforcement. If we don't hit a bigger bottom in 1-5 years - I'd eat my shorts.",
"title": ""
},
{
"docid": "f84c94ad004b29e8147168170dafdae1",
"text": "Upstream is into businesses that supply the original business; downstream is into businesses that make use of the original product. So in that description, what they are saying is that the original business received products from plantations and sent products to manufacturing. This is also called vertical integration. Meaning that they are diversifying along their supply chain so that they control more of it. This is in contrast with horizontal integration, where they move into new products that either compete with the existing products or which are entirely separate. In general, the upside of vertical integration is that a company is less reliant on suppliers (and intermediate consumers) and has more control over its supply chain. The downside is that they have less opportunity to partner with other companies in the same supply chain, as they compete with them. Some companies are better at managing to do both. For example, Amazon.com has integrated fulfillment and sales. But partners can still do their own fulfillment and/or sales, choosing how much to send out to Amazon. If you are investing in individual stocks, integrated companies can be problematic in that they cut across diversification areas. So they can be harder to balance with other stocks. You can either buy plantations, transport, and manufacturing together or not buy at all. If your investment strategy says to increase plantations and reduce manufacturing, this can be difficult to implement with an integrated company. Of course, everyone else has the same problem, which can lead to integrated companies being undervalued. So they may be an opportunity as a value stock.",
"title": ""
},
{
"docid": "7e6f4f331cde178e6cbfb007797db5f9",
"text": "The risk of the particular share moving up or down is same for both. however in terms of mitigating the risk, Investor A is conservative on upside, ie will exit if he gets 10%, while is ready to take unlimited downside ... his belief is that things will not go worse .. While Investor B is wants to make at least 10% less than peak value and in general is less risk averse as he will sell his position the moment the price hits 10% less than max [peak value] So it more like how do you mitigate a risk, as to which one is wise depends on your belief and the loss appetite",
"title": ""
},
{
"docid": "ae4d07bfbe8ca228742be94731ed1111",
"text": "It all depends on the country. In the US, mobility at the top is reasonably high (ie first generation millionaires, first generation billionaires, etc). In other western countries, mobility at the top is very poor. This is typically due to regulation and taxes that make it incredibly difficult for small businesses to be compliant and compete (ie hire a bad employee as a small startup, and it can cripple the business if you cannot easily fire them). Mobility at the bottom is reversed. Getting out of abject poverty in the US is incredibly difficult, almost impossible. In other western countries it is not easy, but far easier than the US thanks to those social safety nets.",
"title": ""
},
{
"docid": "b4db78062d6ef5b07f17f67ed87585f1",
"text": "I like the article concept, about seeking help where needed. This is something where an advisory board comes into play. That said, it is super important that you seek advice specifically in areas you are lacking. You want fresh ideas and people that will challenge your ideas.",
"title": ""
},
{
"docid": "f7ccceb6855d0b5e64b62d2732212069",
"text": "I'm aware that this is not how modern economics works. I considered pursuing a graduate degree in the subject, but chose not to because I disagree with the epistemological foundations of the approach. My ideas aren't based in explicit observation of reality, as I prioritize reason above observation. The difference between the two approaches is similar to the difference between pure mathematics and applied mathematics, where the rationalist (my perspective) is pure math, and the empiricist (the modern economist) is applied math. If you would include the theorems and abstractions of pure mathematics as fantasy, then my ideas are indeed based in fantasy, but you'd then have to explain why such an approach is wrong given how often the seemingly useless work of pure math ends up proving highly valuable in the long run (e.g. number theory and computer science).",
"title": ""
},
{
"docid": "07ae20dd499e31ebeaf9a49dc58692cc",
"text": "\"My problem with this is that there's no \"\"one size fits all\"\" approach to eliminating poverty. These are very much middle-class values and I don't think imposing them on impoverished children is the right approach. And besides, poverty itself can be fluid. Most kids already in poverty are stuck in generational poverty, but there's also situational poverty that can affect anyone at any time. For kids in generational poverty, it's about survival. They don't plan ahead because they don't have the luxury to do that. It's day to day with them, with each day bringing a new challenge. Do I know what we have to do to eliminate poverty? No, and I don't think anyone does. But I do think whatever approach we take should be multifaceted and take into account the environmental contexts that shape a person's life. This kind of lazy policymaking isn't gonna cut it\"",
"title": ""
},
{
"docid": "3e96dd8b815036db335e1e2920e91435",
"text": "True but it isn't too difficult . Perhaps a classic example would be Sony - 5 years losses , this last year US$1.1B , how long can it last ?! However the trick is not to initially concentrate on the corporates but to concentrate on the small to medium sized companies and to ensure that they are strategically placed engineering wise to step in and take over . Business wise they will be used to adapting quickly .",
"title": ""
},
{
"docid": "18f66dae6ed740c7b842bf4c81daeba5",
"text": "\"I like stuff like this for perspective but I found the article lacking in mechanics as to how to unlearn, how to apply it, etc. I may have missed it though. This reminds me of my CEO challenging everyone at every level to \"\"innovate\"\". Need more of the \"\"how\"\" behind these kinds of objectives. It's great to shed preconceptions, think outside the box, etc but that's been managerial buzz speak for years, and yet we still find ourselves within the box. Focusing on how to get out of it seems like a worthy cause.\"",
"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": ""
},
{
"docid": "1407a11a1bfd45195cc54d12195ad9d1",
"text": "\"In that example, \"\"creating money\"\" could be used interchangeably with \"\"making promises\"\". There's no inflation, and no problem, so long as everyone keeps their promises. Which sounds like a horrifying thing to say about the foundations of the economy, but the remarkable thing is that people mostly do.\"",
"title": ""
},
{
"docid": "536a9451d2d6c78952cbfd226f8e9cdc",
"text": "I'd still take the lower total pay with higher hourly pay, because I'm saving myself time. It ultimately represents an increase in efficiency for my time, or an increase in my ROI of time, which most business people would agree is a good thing. I can supplement my income with side jobs or a side business, with the extra time I have. What's really key is what happens to overall employment. If it gets low enough to where workers can find 2nd jobs, then it may truly leave some low wage workers worse off, and the entire demographic worse off as a whole.",
"title": ""
},
{
"docid": "fb0927a7b7d0b22ddb6786217aef90d2",
"text": "I don't know what you are asking. Can you give me an example of what fits the question? That you use phrases like profit extraction make me think we have a different assumption base, so I think we have to find common syntactic ground before we can exchange ideas in a meaningful way. I would like to do so, though, so I hope you respond.",
"title": ""
},
{
"docid": "fe3227e7377e8a31b6fdc7d6f59a3ffe",
"text": "Have you read is letter? He's saying thanks to the government for basically saving the economy. Warren Buffet was from day 1 a strong supporter of the bailout program. I'm sorry for my ignorance but what ''output'' are you talking about? As I understand you don't just want to establish a basic income but want to change the whole monetary system? And you can't even explain it?",
"title": ""
},
{
"docid": "be2baa6c913b0b5127fcb95afa608ac4",
"text": "\"I assume you are referring to Multi-Level Marketing, which have organizational structures that look like pyramids. As others have pointed out Ponzi schemes (often referred to as pyramid) are illegal. The key to multi-level marketing is understanding the true objective. It is not to sell soap, vitamins, cell phone plans or whatever. The key is to understand that you are building a marketing organization. You must motivate and train others to do the same. You cannot rely on others to do it for you, you must do it yourself. If you just are there to sell product, you won't make any money. If you have a lot of friends that you can convince to sign up, you won't make any money. If you can build a marketing organization, you can make a lot of money. While the marketing for MLMs often say \"\"anyone can do it\"\", such things waste people's time. There are certain personality types that are not suited for such skills. Also if one posses those types of skills, there may be better opportunities in traditional companies. Maybe.\"",
"title": ""
}
] |
fiqa
|
b5c4a2dca3d95b434629931c44b3325a
|
The Canadian dividend tax credit: Why is it that someone can earn a lot in dividends but pay no/little tax?
|
[
{
"docid": "249fd2f459eaf89b1886dd47a39b8995",
"text": "Basically, yes. That doesn't mean that it's easy to do. The government provides a dividend tax credit since an individual takes on more risk to invest in dividend-paying corporations rather than trading their human capital for an income. Thus, for the most part, $1 earned from dividends is taxed much less than $1 earned from income or interest. Finally, note that foreign dividends are not eligible for the dividend tax credit, and are not preferentially taxed.",
"title": ""
},
{
"docid": "ddb0cfad48be4fc91bf0dc8d084dca77",
"text": "\"The profits that the corporation had to earn to be able to pay you \"\"eligible\"\" dividends for the dividend tax credit were already taxed, and at a somewhat high corporate rate, in the case of large public companies with big profits. The dividend tax credit, which permits an individual to earn a lot from dividends and not pay any personal income tax, essentially recognizes that the profit making up the dividend was already highly taxed to begin with via corporate income tax. It aims to eliminate double-taxation. FWIW, if you own and run a small private business in Canada and pay yourself a dividend, such dividends are considered \"\"non-eligible\"\", i.e. you don't get as much a benefit from the dividend tax credit, since small business corporate income tax rates are much lower.\"",
"title": ""
}
] |
[
{
"docid": "521df5e113f22567afd3acdd292d5b3f",
"text": "It comes down to the practical value of paying dividends. The investor can continually receive a stream of income without selling shares of the stock. If the stock did not pay a dividend and wanted continual income, the investor would have to continually sell shares to gain this stream of income, incurring transaction costs and increased time and effort involved with making these transactions.",
"title": ""
},
{
"docid": "4275283d6083a46b9904a9ea71360cbc",
"text": "Firstly a stock split is easy, for example each unit of stock is converted into 10 units. So if you owned 1% of the company before the stock split, you will still own 1% after the stock split, but have 10 times the number of shares. The company does not pay out any money when doing this and there is no effect on tax for the company or the share holder. Now onto stock dividend… When a company make a profit, the company gives some of the profit to the share holders as a dividend; this is normally paid in cash. An investor may then wish to buy more shares in the company using the money from the dividend. However buying shares used to have a large cost in broker charges etc. Therefore some companies allowed share holders to choose to have the dividend paid as shares. The company buys enough of their own shares to cover the payout, only having one set of broker charges and then sends the correct number of shares to each share holder that has opted for a stock dividend. (Along with any cash that was not enough to buy a complete share.) This made since when you had paper shares and admin costs where high for stock brokers. It does not make sense these days. A stock dividend is taxed as if you had been paid the dividend in cash and then brought the stock yourself.",
"title": ""
},
{
"docid": "71e70c6c3d426e2f03e616d2b9f7092d",
"text": "\"Let me provide a general answer, that might be helpful to others, without addressing those specific stocks. Dividends are simply corporate payouts made to the shareholders of the company. A company often decides to pay dividends because they have excess cash on hand and choose to return it to shareholders by quarterly payouts instead of stock buy backs or using the money to invest in new projects. I'm not exactly sure what you mean by \"\"dividend yield traps.\"\" If a company has declared an dividend for the upcoming quarter they will almost always pay. There are exceptions, like what happened with BP, but these exceptions are rare. Just because a company promises to pay a dividend in the approaching quarter does not mean that it will continue to pay a dividend in the future. If the company continues to pay a dividend in the future, it may be at a (significantly) different amount. Some companies are structured where nearly all of there corporate profits flow through to shareholders via dividends. These companies may have \"\"unusually\"\" high dividends, but this is simply a result of the corporate structure. Let me provide a quick example: Certain ETFs that track bonds pay a dividend as a way to pass through interest payments from the underlying bonds back to the shareholder of the ETF. There is no company that will continue to pay their dividend at the present rate with 100% certainty. Even large companies like General Electric slashed its dividend during the most recent financial crisis. So, to evaluate whether a company will keep paying a dividend you should look at the following: Update: In regards to one the first stock you mentioned, this sentence from the companies of Yahoo! finance explains the \"\"unusually\"\" dividend: The company has elected to be treated as a REIT for federal income tax purposes and would not be subject to income tax, if it distributes at least 90% of its REIT taxable income to its share holders.\"",
"title": ""
},
{
"docid": "258fe10941770d167bff3dadc9d48eef",
"text": "\"If you're referring to times when they pay nothing (or receive a refund) at the end of the year, it's because they're paying taxes throughout the year. At the end of the year, the accountants find that they paid exactly what they needed to (or more), so they don't have to pay anything (or get money back) on their yearly forms. I don't think there's a US corporation paying \"\"almost zero tax\"\" in the US.\"",
"title": ""
},
{
"docid": "d5da1b2653d529de022d9b333f8a33f2",
"text": "The dividend tax credit is not applicable to foreign dividend income, so you would be taxed fully on every dollar of that income. When you sell a stock, there will be a capital gain or capital loss depending on if it gained or lost value, after accounting for the Adjusted Cost Base. You only pay income tax on half of the amount earned through capital gains, and if you have losses, you can use them to offset other investments that had capital gains (or carry forward to offset gains in the future). The dividends from US stocks are subject to a 15% withholding tax that gets paid to the IRS automatically when the dividends are issued. If the stocks are held in an RRSP, they are exempt from the withholding tax. If held in a non-registered account, you can be reimbursed for the tax by claiming the foreign tax credit that you linked to. If held in a TFSA or RESP, the withholding tax cannot be recovered. Also, if you are not directly holding the stocks, and instead buy a mutual fund or ETF that directly holds the stocks, then the RRSP exemption no longer applies, but the foreign tax credit is still claimable for a non-registered account. If the mutual fund or ETF does not directly hold stocks, and instead holds one or more ETFs, there is no way to recover the withholding tax in any type of account.",
"title": ""
},
{
"docid": "14cecef7ceb7ed8c28d9710a31dd2d53",
"text": "The answer to your question doesn't depend on who you trade with but what country you live in. If you live outside of the US, you will have to pay tax on dividends... sometimes. This depends on the tax treaty that your country has with the US. Canada, Australia, UK and a few other countries have favorable tax treaties with the US that allow you to not be double taxed. You must look into the tax treaty that your home country has with the US to answer the question. Each country is different.",
"title": ""
},
{
"docid": "7f52cfa3fe6d5579e837625929aa1153",
"text": "That's not especially high income, and while I can't speak for Canadians, most of us south of the border just pay the tax. There are tax-advantged retirement savings plans, and charitable donations are often offset by a tax credit, and there are some tax incentives for mortgages, and so on.. but generally the right answer is to just accept that the income tax money was never yours to begin with.",
"title": ""
},
{
"docid": "96dd6e5df1c97fbe6e67dfe48966cbbf",
"text": "It doesn't make much difference in the end. Imagine you have $100 of revenue in your company. You can either pay it to yourself as salary, meaning that you don't pay corporate tax on it, or you can keep it in the company, pay corporate tax on it, then pay yourself a dividend of what is left. While that dividend will be treated better than salary, remember that the company already paid tax on it. You paying less on what's left doesn't equate to paying less overall. Go ahead and run the numbers using your actual corporate tax rate and your personal income tax rate. Try doing your whole salary as dividends - not dollar for dollar, but as how much the company would have as profit to give you a dividend if it didn't spend (and deduct) salary money on you. You are unlikely to see any difference at all. The net final money in your pocket, and the amount that went to the government, will probably be the same. If paying dividends keeps your earned income low, you may find that you can't use RRSP or childcare deductions. You are also not getting CPP credit. That's an argument for salary, or at least a certain minimum amount of salary. You have to deduct taxes at source on salary and send it along to the government, which is an argument for dividends if you feel you could invest that money and use it well before the taxes get around to being due. Possibly you may discover an edge case where you move a few thousand from one marginal tax rate to another and clear a few hundred extra as a result. I don't discourage you from doing the math, I just point out that the various percentages (tax rates, grossups, deductions etc) have all been carefully chosen so that it pretty much works out the same, or gives a small preference to salary. We give excess money to ourselves as bonus rather than dividend having run the numbers a few times. There's no secret trick here.",
"title": ""
},
{
"docid": "348ecf0fe173c503a0275e31aa820056",
"text": "Revenue Canada allows for some amount of tax deferral via several methods. The point is that none of them allow you to avoid tax, but by deferring from years when you have high income to years when you have lower income allows you to realize less total tax paid due to the marginal rate for personal income tax. The corporate dividend approach (as explained in another answer) is one way. TFSAs are another way, but as you point out, they have limits. Since you brought TFSAs into your question: About the best and easiest tax deferral option available in Canada is the RRSP. If you don't have a company pension, you can contribute something like 18% of your income. If you have a pension plan, you may still be able to contribute to an RRSP as well, but the maximum contribution amount will be lower. The contribution lowers your taxable income which can save you tax. Interest earned on the equity in your RRSP isn't taxed. Tax is only paid on money drawn from the plan because it is deemed income in that year. They are intended for retirement, but you're allowed to withdraw at any time, so if you have little or no income in a year, you can draw money from your RRSP. Tax is withheld, which you may or may not get back depending on your taxable income for that year. You can think of it as a way to level your income and lower your legitimate tax burden",
"title": ""
},
{
"docid": "b48723be4cfd22c056c3bd1f60c6f2b5",
"text": "Remember that long term appreciation has tax advantages over short-term dividends. If you buy shares of a company, never earn any dividends, and then sell the stock for a profit in 20 years, you've essentially deferred all of the capital gains taxes (and thus your money has compounded faster) for a 20 year period. For this reason, I tend to favor non-dividend stocks, because I want to maximize my long-term gain. Another example, in estate planning, is something called a step-up basis:",
"title": ""
},
{
"docid": "1e1c05f9836fca87e718e24af6bfbd37",
"text": "Let's say your marginal tax rate is 33%. For every dollar you put in an RRSP, you'll get 33 cents back on your taxes, while the whole amount grows tax free inside the investment. If you can afford it, money in an RRSP generates a lot of free money.",
"title": ""
},
{
"docid": "8251000cc2c3e8b95abfb04205e6fcc7",
"text": "\"The answer is Discounted Cash Flows. Companies that don't pay dividends are, ostensibly reinvesting their cash at returns higher than shareholders could obtain elsewhere. They are reinvesting in productive capacity with the aim of using this greater productive capacity to generate even more cash in the future. This isn't just true for companies, but for almost any cash-generating project. With a project you can purchase some type of productive assets, you may perform some kind of transformation on the good (or not), with the intent of selling a product, service, or in fact the productive mechanism you have built, this productive mechanism is typically called a \"\"company\"\". What is the value of such a productive mechanism? Yes, it's capacity to continue producing cash into the future. Under literally any scenario, discounted cash flow is how cash flows at distinct intervals are valued. A company that does not pay dividends now is capable of paying them in the future. Berkshire Hathaway does not pay a dividend currently, but it's cash flows have been reinvested over the years such that it's current cash paying capacity has multiplied many thousands of times over the decades. This is why companies that have never paid dividends trade at higher prices. Microsoft did not pay dividends for many years because the cash was better used developing the company to pay cash flows to investors in later years. A companies value is the sum of it's risk adjusted cash flows in the future, even when it has never paid shareholders a dime. If you had a piece of paper that obligated an entity (such as the government) to absolutely pay you $1,000 20 years from now, this $1,000 cash flows present value could be estimated using Discounted Cash Flow. It might be around $400, for example. But let's say you want to trade this promise to pay before the 20 years is up. Would it be worth anything? Of course it would. It would in fact typically go up in value (barring heavy inflation) until it was worth very close to $1,000 moments before it's value is redeemed. Imagine that this \"\"promise to pay\"\" is much like a non-dividend paying stock. Throughout its life it has never paid anyone anything, but over the years it's value goes up. It is because the discounted cash flow of the $1,000 payout can be estimated at almost anytime prior to it's payout.\"",
"title": ""
},
{
"docid": "6df8cd70429f5684a7e83090776d634f",
"text": "This is the point of the article. Somehow a company which is so successful has, for tax purposes, such a razor thin margin. So their taxation clearly isn't in keeping with its actual ability to pay, passing along the burden to other businesses and individuals.",
"title": ""
},
{
"docid": "776390a58b31e5780cd3fe1a24d60e90",
"text": "Tax-advantaged accounts mean you pay less tax. You fundamentally pay less tax on IRAs and 401ks than other accounts. That's their benefit. You keep more money at the expense of the government. It makes sense for the government to limit it. If you don't understand why you pay less tax, you must consider the time value of money -- the principal now is the same value of money as the principal + earnings later. With IRAs and 401ks, you only pay income tax once: with Roth IRAs and 401ks, you pay tax on the entire amount of money once when you earn it; with pre-tax Traditional IRAs and 401ks, you pay tax on the entire amount of money once when withdraw it. However, with outside accounts, you have to pay tax more than once: you pay once when you earn it, and pay tax again on the earnings later, earnings that grew from money that was already taxed (which, when considering time value, means that the earnings have already been taxed), but is taxed again. For things like savings in a bank, it's even worse: interest (which grew from money already taxed) is taxed every year, which means some money you pay tax on n times, if you have it in there n years. If you don't understand the above, you can see with an example. We start with $1000 pre-tax wages and for simplicity will assume a flat 25% income tax rate, and a growth rate of 10% per year, and get the cash (assume it's a qualified withdrawal) in 10 years.",
"title": ""
},
{
"docid": "a7f7384d35c387d2c34d790377bb93df",
"text": "\"This scheme doesn't work, because the combination of corporation tax, even the lower CCPC tax, plus the personal income tax doesn't give you a tax advantage, not on any realistic income I've ever worked it out on anyway. Prior to the 2014 tax year on lower incomes you could scrape a bit of an advantage but the 2013 budget changed the calculation for the tax credit on non-eligible dividends so there shouldn't be an advantage anymore. Moreover if you were to do it this way, by paying corporation tax instead of CPP you aren't eligible for CPP. If you sit with a calculator for long enough you may figure out a way of saving $200 or something small but it's a lot of paperwork for little if any benefit and you wouldn't get CPP. I understand the money multiplier effect described above, but the tax system is designed in a way that it makes more sense to take it as salary and put it in a tax deferred saving account, i.e. an RRSP - so there's no limit on the multiplier effect. Like I said, sit with a calculator - if you're earning a really large amount and are still under the small business limit it may make more sense to use a CCPC, but that is the case regardless of using it as a tax shelter because if you're earning a lot you're probably running a business of some size. The main benefit I think is that if you use a CCPC you can carry forward your losses, but you have to be aware of the definition of an \"\"allowable business investment loss\"\".\"",
"title": ""
}
] |
fiqa
|
45a436188c02648b967a24f6ed34d4fa
|
Personal “Profit & Loss Statement” required for mortgage?
|
[
{
"docid": "d1219e27a1aaae8bc122ebf2450a98b8",
"text": "\"The bank is asking for a P & L because as a contractor you are in essence running your own business. Its kind of a technicality, all you need to do is look at any expenses that you paid out of pocket while working there that were job or \"\"business\"\" related. Write a list of those expenses such as \"\"Gas\"\", \"\"Materials\"\", \"\"Legal Expenses\"\", etc. and then show your total income from that job or \"\"contract\"\" subtract the expenses and show your total profit or loss hence Profit / Loss Statement. I realize that you may not have any real expenses tied to that job although I don't know and if you don't, then simply write in your income, say no expenses and show your \"\"profit/pay\"\" at the bottom of your P & L! Viola! Your Done! Good luck with the closing!\"",
"title": ""
}
] |
[
{
"docid": "ce75620806f026d3c49c678265b60c92",
"text": "I use a spreadsheet for that. I provide house value, land value, closing/fix-up costs, mortgage rate and years, tax bracket, city tax rate, insurance cost, and rental income. Sections of the spreadsheet compute (in obvious ways) the values used for the following tables: First I look at monthly cash flow (earnings/costs) and here are the columns: Next section looks at changes in taxable reported income caused by the house, And this too is monthly, even though it'll be x12 when you write your 1040. The third table is shows the monthly cash flow, forgetting about maintenance and assuming you adjust your quarterlies or paycheck exemptions to come out even: Maintenance is so much of a wildcard that I don't attempt to include it. My last table looks at paper (non-cash) equity gains: I was asked how I compute some of those intermediate values. My user inputs (adjusted for each property) are: My intermediate values are:",
"title": ""
},
{
"docid": "4f7d9c6d9bd9a85810ebab48a59bacba",
"text": "Because a paying down a liability and thus gaining asset equity is not technically an expense, GnuCash will not include it in any expense reports. However, you can abuse the system a bit to do what you want. The mortgage payment should be divided into principle, interest, and escrow / tax / insurance accounts. For example: A mortgage payment will then be a split transaction that puts money into these accounts from your bank account: For completeness, the escrow account will periodically be used to pay actual expenses, which just moves the expense from escrow into insurance or tax. This is nice so that expenses for a month aren't inflated due to a tax payment being made: Now, this is all fairly typical and results in all but the principle part of the mortgage payment being included in expense reports. The trick then is to duplicate the principle portion in a way that it makes its way into your expenses. One way to do this is to create a principle expense account and also a fictional equity account that provides the funds to pay it: Every time you record a mortgage payment, add a transfer from this equity account into the Principle Payments expense account. This will mess things up at some level, since you're inventing an expense that does not truly exist, but if you're using GnuCash more to monitor monthly cash flow, it causes the Income/Expense report to finally make sense. Example transaction split:",
"title": ""
},
{
"docid": "4bf65001c063594bdc70a9d5a0562c5b",
"text": "\"that would deprive me of the rental income from the property. Yes, but you'd gain by not paying the interest on your other mortgage. So your net loss (or gain) is the rental income minus the interest you're paying on your home. From a cash flow perspective, you'd gain the difference between the rental income and your total payment. Any excess proceeds from selling the flat and paying off the mortgage could be saved and use later to buy another rental for \"\"retirement income\"\". Or just invest in a retirement account and leave it alone. Selling the flat also gets rid of any extra time spent managing the property. If you keep the flat, you'll need a mortgage of 105K to 150K plus closing costs depending on the cost of the house you buy, so your mortgage payment will increase by 25%-100%. My fist choice would be to sell the flat and buy your new house debt-free (or with a very small mortgage). You're only making 6% on it, and your mortgage payment is going to be higher since you'll need to borrow about 160k if you want to keep the flat and buy a $450K house, so you're no longer cash-flow neutral. Then start saving like mad for a different rental property, or in non-real estate retirement investments.\"",
"title": ""
},
{
"docid": "e58d99883593d6d12f8032f38a42982d",
"text": "If your business is a Sole Proprietorship and meets the criteria, then you would file form Schedule C. In this case you can deduct all eligible business expenses, regardless of how you pay for them (credit/debit/check/cash). The fact that it was paid for using a business credit card isn't relevant as long as it is a true business expense. The general rules apply: Yes - if you sustain a net loss, that will carry over to your personal tax return. Note: even though it isn't necessary to use a business credit card for business expenses, it's still an extremely good idea to do so, for a variety of reasons.",
"title": ""
},
{
"docid": "fba6282ef1da6de91f7f0d8506484785",
"text": "You can find the details in the IRS instructions for the form 5405. Summary - you have to repay the credit if you move, even if it is because you were laid off. However, if you sell the house, the repayment is limited by your gains. If you sell at a loss - you don't need to repay. Also, if you die, you don't have to repay, don't know if it helps.",
"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": "c69d058bbe81220a41eec046485970c1",
"text": "\"First, the balance sheet is where assets, liabilities, & equity live. Balance Sheet Identity: Assets = Liabilities (+ Equity) The income statement is where income and expenses live. General Income Statement Identity: Income = Revenue - Expenses If you want to model yourself correctly (like a business), change your \"\"income\"\" account to \"\"revenue\"\". Recognized & Realized If you haven't yet closed the position, your gain/loss is \"\"recognized\"\". If you have closed the position, it's \"\"realized\"\". Recognized Capital Gains(Losses) Assuming no change in margin requirements: Margin interest should increase margin liabilities thus decrease equity and can be booked as an expense on the income statement. Margin requirements for shorts should not be booked under liabilities unless if you also book a contra-asset balancing out the equity. Ask a new question for details on this. Realized Capital Gains(Losses) Balance Sheet Identity Concepts One of the most fundamental things to remember when it comes to the balance sheet identity is that \"\"equity\"\" is derived. If your assets increase/decrease while liabilities remain constant, your equity increases/decreases. Double Entry Accounting The most fundamental concept of double entry accounting is that debits always equal credits. Here's the beauty: if things don't add up, make a new debit/credit account to account for the imbalance. This way, the imbalance is always accounted for and can help you chase it down later, the more specific the account label the better.\"",
"title": ""
},
{
"docid": "916544523caa4119c9ec3208c501beaa",
"text": "The actual policy will vary based on the specific bank. But, if I were in your shoes I'd include RMDs in my stated income for credit card purposes.",
"title": ""
},
{
"docid": "9c8e35e35c5f8ae1c2031f9cc2fee911",
"text": "While you are correct that no broker-dealer ever qualifies for FDIC and it could be sufficient for customers to know that general rule, for broker-dealers located at or 'networked' with a bank -- and nowadays many probably most are -- these explicit statements that non-bank investments are not guaranteed by the bank or FDIC and may lose principal (often stated as 'may lose value') are REQUIRED; see http://finra.complinet.com/en/display/display_main.html?rbid=2403&element_id=9093 .",
"title": ""
},
{
"docid": "d90b5501dc00d0d5a1a79c878c6279d1",
"text": "Several factors are considered in loans as significant as a home mortgage. I believe the most major factors are 1) Credit report, 2) Income, and 3) Employment status If you borrow jointly, all joint factors are included, not just the favorable ones. Some wrinkles this can cause may include: Credit Report - The second person on the loan may have poor credit or no credit. This can/will hurt your rate or even prevent them from being listed on the loan at all, which will also mean you can't include their income. In addition, there are future consequences: that any late payments, default, foreclosure, etc. will be listed on all borrower's reports. If you both have solid work history, great credit, and want to jointly own the home, then there shouldn't be any negatives. If this is not the case, compare both cases (fully, not just rates, as some agents could sneakily say you can get the same rate either way but then not tell you closing costs in one scenario are higher), and pick the one that is best overall. This is just information from my recollection so make sure to verify and ask plenty of questions, don't go forward on assumptions.",
"title": ""
},
{
"docid": "3221f171f217708666ba2a70e2dee4b7",
"text": "There should be no problem getting a mortgage from a bank with 3 years in business. They are going to use the average of the last 2 years of taxable profits to determine your income though. I think the key words here are taxable profits and this is where the problem typically comes in for most self employed folks. Many times self employed people will have soft losses and deductions that make their income seem lower than it really is (or unreported income). It has nothing to do with your business plan, or your relationship with the bank unless it is a small community bank or credit union.",
"title": ""
},
{
"docid": "76b0bc30e0178a8627847743ff0ae369",
"text": "\"Say you're buying a 400K house. Your relative finances 120K (30%). Say I'm optimistic, but the real-estate market recovers, and your house is worth 600K in 5-6 years (can happen, with the inflation and all). The gain is 200K. Your relative gets 100K. You repay him 220K on 120K loan for 5 years. Roughly, 16% APR. Quite an expensive loan. I'm of course optimistic, it seems to me that so is your relative. The question is: if the house loses value in that term, does your relative take 50% of the losses? Make calculations based on several expected returns (optimistic, \"\"realistic\"\", loss case, etc), and for each calculate how much in fact will that loan cost. It will help you to decide if you want it. Otherwise your relationships with your relative might go very bad in a few years. BTW: Suggestion: it's a bad idea to mix business and friend/family you don't want to lose.\"",
"title": ""
},
{
"docid": "24bb18e4837526c4fedf26ad190601c7",
"text": "Yup, if he/she is talking about a broker/dealer, but if he's talking to an RIA and is trying to find out who the custodian is then he won't have a statement yet. I don't think he has opened the account yet, but I'm not sure and could be totally misunderstanding the question.",
"title": ""
},
{
"docid": "d17cba57b4651ad654044782037545c6",
"text": "\"If your friend is loaning you KRW which you are then converting to USD, then there are tax implications. This would be a Section 988 transaction so \"\"gains\"\" or \"\"losses\"\" made during repayment (partial or complete) due to fluctuations in exchange rate would be treated as ordinary gains or losses. For example, imagine you borrow 100,000 KRW and, at the time you borrow it, this is worth exactly 100,000 USD. At some future point, you repay 20,000 KRW. If the exchange rate at that point is such that 20,000 KRW is worth 15,000 USD, then the IRS sees that you have \"\"gained\"\" 5,000 USD in ordinary income. This is a particular concern if the loan is a mortgage and you refinance the mortgage at a moment in time with a more \"\"favorable\"\" exchange rate than the exchange rate when you first got the mortgage. See http://www.investopedia.com/terms/s/section-988.asp for some additional discussion.\"",
"title": ""
},
{
"docid": "ca7d8dfd97eb2966bce100d8c393e62e",
"text": "You should be receiving monthly P&L statements at the very least. Who did you have filing taxes, doing payroll, performing audits? It seems that many restaurants and bars have a slippery cash issue where profits seem to just slide out the doors. Everyone touching cash might be skimming and if the manager is doing all the totals and reconciling the tills and filing taxes then that single point of failure is going to KILL you.",
"title": ""
}
] |
fiqa
|
b95641c57e223dd81e39a913f6422b83
|
Is the need to issue bonds a telltale sign that the company would have a hard time paying coupons?
|
[
{
"docid": "ce310edffda39222d1798d3c4619e581",
"text": "\"No, having to borrow money does not necessarily mean a company will have a hard time paying the interest on it. Similarly, having to take out a mortgage on a house does not mean a person will not be able to make their mortgage payments. Borrowing money can be a way to spend future money instead of present money (at a cost, of course). A company might not have all that money at the moment, but that in no way implies they won't have it in the future. And as you allude to in your question where you talk about \"\"funding some … plans\"\", a company might be able to grow itself—possibly increasing future profits—by borrowing money.\"",
"title": ""
},
{
"docid": "2dc8c9f027bfc2cc21bc6b1d146bfccf",
"text": "Apple is currently the most valuable company in the world by market capitalisation and it has issued bonds for instance. Amazon have also issued bonds in the past as have Google. One of many reasons companies may issue bonds is to reduce their tax bill. If a company is a multinational it may have foreign earnings that would incur a tax bill if they were transferred to the holding company's jurisdiction. The company can however issue bonds backed by the foreign cash pile. It can then use the bond cash to pay dividends to shareholders. Ratings Agencies such as Moody's, Fitch and Standard & Poor's exist to rate companies ability to make repayments on debt they issue. Investors can read their reports to help make a determination as to whether to invest in bond issues. Of course investors also need to determine whether they believe the Ratings Agencies assesments.",
"title": ""
},
{
"docid": "62dde17ebd37c396d6b19d81e0eb7530",
"text": "One more scenario is when the company already has maturing debt. e.g Company took out a debt of 2 billion in 2010 and is maturing 2016. It has paid back say 500 million but has to pay back the debtors the remaining 1.5 billion. It will again go to the debt markets to fund this 1.5 billion maybe at better terms than the 2010 issue based on market conditions and its business. The debt is to keep the business running or grow it. The people issuing debt will do complete research before issuing the debt. It can always sell stock but that results in dilution and affects shareholders. Debt also affects shareholders but when interest rates are lower, companies tend to go to debt markets. Although sometimes they can just do a secondary and be done with it if the float is low.",
"title": ""
},
{
"docid": "442a363cb496ed3562c1c8194e56956c",
"text": "\"People borrow money all the time to buy a house. Banks will lend money on one (up to 80%, sometimes more), because they consider it an \"\"investment.\"\" If you own a large company and want to expand, a bank or bond issuer will first look at what you plan to do with the money, like build new factories, or whatever. Based on their experience, they may judge that you will earn enough money to pay them back. If you don't, they may \"\"repossess\"\" your factories and sell them to someone who can pay. As protection, you may be asked to \"\"mortgage\"\" your existing company to protect the lenders of the new money. If you don't pay back the money, the lenders get not only your new \"\"factories\"\" but also your existing company.\"",
"title": ""
},
{
"docid": "38788ad6f9a61ff19544e18225df86ab",
"text": "It (usually) is better to use Other Peoples Money (OPM) than your own. This is something that Donald Trump has mastered. If you use OPM and something goes wrong you can declare bankruptcy and wipe out that debt. The Donald has done this more than once. At the fantastic low Intrest rates a company would be wasting resources if they only used their own money.",
"title": ""
}
] |
[
{
"docid": "cd5a5805c50b110f2775b8b4850f1a38",
"text": "5.) Target allowed the use of the coupons for gift certificates, negating the profit they would have made themselves. The customers did not create this situation. Target also renewed the coupon system with full knowledge of the circumstances. Corporate systems are hardly capable of knowledgeably allowing injury they can prevent.",
"title": ""
},
{
"docid": "505430a35e0e009f900ddb5fa2316cb6",
"text": "Well, yes it does, but just because the debt is trading at 80 cents on the dollar doesn't mean that the company can actually legally get away with paying only 80 cents on the dollar. They would have to come to an agreement with the debt holders first. And perhaps they could, but the more conservative approach is to use the book value of the debt. Or what about debt that's trading at a premium to its face value, because, say, interest rates have come down relative to the time the debt was issued? The amount that the conpany owes to the debt holders hasn't suddenly gone up.",
"title": ""
},
{
"docid": "13852cdf972191f4fed31803125728b2",
"text": "To issue corporate grade bonds the approval process very nearly matches that for issuing corporate equity. You must register with the sec, and then generally there is a initial debt offering similar to an IPO. (I say similar in terms of the process itself, but the actual sale of bonds is nothing like that for equities). It would be rare for a partnership to be that large as to issue debt in the form of bonds (although there are some that are pretty big), but I suppose it is possible as long as they want to file with the sec. Beyond that a business could privately place bonds with a large investor but there is still registration requirements with the sec. All that being said, it is also pretty rare for public bonds to be issued by a company that doesn't already have public equity. And the amounts we are talking about here are huge. The most common trade in corporate debt is a round lot of 100,000. So this isn't something a small corporation would have access to or have a need for. Generally financing for a smaller business comes from a bank.",
"title": ""
},
{
"docid": "1d7dd3d16b1dbe15092156bd866d1eef",
"text": "Right, that's my understanding of the problem too. I tried some of the indices last night (not necessarily the ones you are suggesting), but when pulling them into COMP it only provided the price return, not the total return including coupons. This latter part is still the challenge.",
"title": ""
},
{
"docid": "88eb05212e390eb6b77372ec51fdc3ee",
"text": "\"Even though the article doesn't actually use the word \"\"discount\"\", I think the corresponding word you are looking for is \"\"premium\"\". The words are used quite frequently even outside of the context of negative rates. In general, bonds are issued with coupons close to the prevailing level of interest rates, i.e. their price is close to par (100 dollar price). Suppose yields go up the next day, then the price moves inversely to yields, and that bond will now trade at a \"\"discount to par\"\" (less than 100 dollar price). And vice versa, if yields went down, prices go up, and the bond is now at a \"\"premium to par\"\" (greater than 100 dollar price)\"",
"title": ""
},
{
"docid": "e53e6f144debe88b504c07dbf20af701",
"text": "Issuing/selling equity vs debt is often done during very different periods of a company's life cycle and for very different reasons. If I were to generalize - equity is most typically involved in the beginning and end of a business, debt in the middle. In the beginning your company has no cash flow, no track record so the only people willing to invest are angels/venture capitalists/true believers/friends & family. People who are willing to take risk either because they like you or they believe there is a chance of high risk/high reward. In the middle of the life cycle (when the company has a demonstrated track record), it is easier to issue debt because you have stable cash flows which banks find attractive. Banks are low risk, low return investors. Towards the end of a company's life cycle the owners may decide they have successfully grown a business and want to retire (or start a new business) or maybe they just want to lock in the earnings they've achieved which are sitting in the company. In this case they may sell the company entirely to a rival firm or a private equity group. I feel like OP's original question is a bit off because I don't find too many situations where a company is seriously considering both equity and debt alternatives. Usually it is a variety of equity offerings **or** a variety of debt offerings and you're trying to figure out which one is better of the company.",
"title": ""
},
{
"docid": "0b1bae7921e2964548e4bfb52f74808c",
"text": "\"All bonds carry a risk of default, which means that it's possible that you can lose your principal investment in addition to potentially not getting the interest payments that you expect. Bonds (in the US anyway) are graded, so you can manage this risk somewhat by taking higher quality bonds, i.e. in companies or governments that are considered more creditworthy. Regular bank savings (again specific to the US) are insured by FDIC, so even if your bank goes bust, the US Government is backing them up to some limit. That makes such accounts less risky. There's generally no insurance on a bond, even if it is issued by a government entity. If you do your homework on the bond rating system and choose bonds in a rating band where you're comfortable, this could be a good option for you. You'll find, however, that the bond market also \"\"knows\"\" that the interest rates are generally low, so be ware that higher interest issues are usually coming from less creditworthy (and therefore more risky) issuers. EDIT Here's some additional information based on the follow-up question in the comment. When you buy a bond you are actually making a loan to the issuer. They will pay you interest over the lifetime of the bond and then return your principal at the end of the term. (Verify this payment schedule - This is typical, but you should be sure that whatever you're buying works like this.) This is not an investment in the value of the issuer itself like you would be making if you bought stock. With stock you are taking an ownership share in the company. This might entitle you to dividends if the company pays them, but otherwise your investment value on a stock will be tied to the performance of the company. With the bond, the company might be in decline but the bond still a good investment so long as the company doesn't decline so much that they cannot pay their debts. Also, bonds can be issued by governments, but governments do not sell stock. (An \"\"ownership share of the government\"\" would not make sense.) This may be the so-called sovereign debt if issued by a sovereign government or it may be local (we call it municipal here in the US) debt issued by a subordinate level of government. Bonds are a little bit like stock in the sense that there's a secondary market for them. That means that if you get partway through the length of the bond and don't want to hold it, you can sell the bond to someone else. Of course, it will be harder to sell a bond later if the company becomes insolvent or if the interest rates go up between when you buy and when you sell. Depending on these market factors, you might end up with a capital gain or capital loss (meaning you get more or less than the principal that you put into the bond) at the time of a sale.\"",
"title": ""
},
{
"docid": "13ede27f0c9b40ca18f3c17d00ab7071",
"text": "Without getting to hung-up on terminology here, the management of a company will often attempt to keep stock prices high because of a number of reasons: Ideally companies keep prices up through performance. In some cases, you'll see companies do other things spending cash and/or issuing bonds to continue to pay dividends (e.g. IBM), or spending cash and/or issuing bonds to pay for stock buybacks (e.g. IBM). These methods can work for a time but are not sustainable and will often be seen as acts of desperation. Companies that have a solid plan for growth will typically not do much of anything to directly change stock prices. Bonds are a bit different because they have a fairly straight-forward valuation model based on the fact that they pay out a fixed amount per month. The two main reason prices in bonds go down are: The key here is that bonds pay out the same thing per month regardless of their price or the price of other bonds available. Most stocks do not pay any dividend and for much of those that do, the main factor as to whether you make or lose money on them is the stock price. The price of bonds does matter to governments, however. Let's say a country successfully issued some 10 year bonds last year at the price of 1000. They pay 1% per month (to keep the math simple.) Every month, they pay out $10 per bond. Then some (stupid) politicians start threatening to default on bond payments. The bond market freaks and people start trying to unload these bonds as fast as they can. The going price drops to $500. Next month, the payments are the same. The coupon rate on the bonds has not changed at all. I'm oversimplifying here but this is the core of how bond prices work. You might be tempted to think that doesn't matter to the country but it does. Now, this same country wants to issue some more bonds. It wants to get that 1% rate again but it can't. Why would anyone pay $1000 for a 1% (per month) bond when they can get the exact same bond with (basically) the same risks for $500? Instead they have to offer a 2% (per month) rate in order to match the market price. A government (or company) could in fact put money into the bond market to bolster the price of it's bonds (i.e. keep the rates down.) The problem is that if you are issuing bonds, it's generally (caveats apply) because you need cash that you don't have so what money are you going to use to buy these bonds? Or in other words, it doesn't make sense to issue bonds and then simply plow the cash gained from that issuance back into the same bonds you are issuing. The options here are a bit more limited. I have to mention though that the US government (via a quasi-governmental entity) did actually buy it's own bonds. This policy of Quantitative Easing (QE) was done for more complicated reasons than simply keeping the price of bonds up.",
"title": ""
},
{
"docid": "1f0cc6bb61f9c5b56558eef57ce1ed1a",
"text": "\"You ask two questions - First - the market value can drop for two reasons (that I know), the company itself may have issues, and investors don't trust they'll be paid, or a general rise in interest rates. In the latter case, there's little to worry about, but for the former, well, that's your decision, you say \"\"the company is in trouble\"\" yet you believe they'll pay. Tough call. Second - yes, when a bond matures, the money appears in your account.\"",
"title": ""
},
{
"docid": "abb4cdd47e8ddd5e34572e51cc065730",
"text": "Shareholders can [often] vote for management to pay dividends Shareholders are sticking around if they feel the company will be more valuable in the future, and if the company is a target for being bought out. Greater fool theory",
"title": ""
},
{
"docid": "5fbcb91f3b5b42e99a3cd31ec42b68b4",
"text": "When individuals take on a loan, it's often in the form of a mortgage, right? And companies take out business loans all the time, only they might be a regular bank loan and not in the form of buying bonds, more similar to when an individual takes a loan. I was seeing through what process a firm would have to go through in order to get funding via the bond process.",
"title": ""
},
{
"docid": "8d47624bf870dbd7329aeee3c6afc574",
"text": "What about in the case of a company with unexpectedly low cash (and therefore an inability to easily pay out dividends) but with a surplus of inventory? Obviously the investors should receive some premium for that, because I think anyone would prefer cash, but there are certainly extreme circumstances where it might be appropriate.",
"title": ""
},
{
"docid": "9596fdd07f028fb48fc48c5d8b976a60",
"text": "Almost every company carries massive debt. From a financial standpoint a company that has less than 70% of it's capital in debt is not utilizing it's growth potential. There are a few companies that buck this trend but the vast majority of corporations carry absolutely massive debt at all time. Yes even the profitable ones. As long as they pay according to the plan all is well.",
"title": ""
},
{
"docid": "80d84c637b2391c22cd0374fda950391",
"text": "\"Investment strategies abound. Bonds can be part of useful passive investment strategy but more active investors may develop a good number of reasons why buying and selling bonds on the short term. A few examples: Also, note that there is no guarantee in bonds as you imply by likening it to a \"\"guaranteed stock dividend\"\". Bond issuers can default, causing bond investors to lose part of all of their original investment. As such, if one believes the bond issuer may suffer financial distress, it would be ideal to sell-off the investment.\"",
"title": ""
},
{
"docid": "75a0733bd9cb8aa9b7ca1bc98780f9f2",
"text": "\"Here's a link to an online calculator employing the Discounted Cash Flow method: Discounted Cash Flows Calculator. Description: This calculator finds the fair value of a stock investment the theoretically correct way, as the present value of future earnings. You can find company earnings via the box below. [...] They also provide a link to the following relevant article: Investment Valuation: A Little Theory. Excerpt: A company is valuable to stockholders for the same reason that a bond is valuable to bondholders: both are expected to generate cash for years into the future. Company profits are more volatile than bond coupons, but as an investor your task is the same in both cases: make a reasonable prediction about future earnings, and then \"\"discount\"\" them by calculating how much they are worth today. (And then you don't buy unless you can get a purchase price that's less than the sum of these present values, to make sure ownership will be worth the headache.) [...]\"",
"title": ""
}
] |
fiqa
|
ca0f426fee09a97efa945aeb3861353c
|
Overpaid Rent Owed By Real Estate
|
[
{
"docid": "99bac0c170cb9ce7d1c34f2e19203152",
"text": "Have you tried complaining to the Real Estate Institute in your state, and if that doesn't work try taking them to Fair Trading. I know from doing some work for real estates that getting money from them is like getting blood from a stone, but you just need to keep bugging them, talk to the manager or director, and tell them you have been waiting too long for your money, give them a deadline (not more than 3 business days) and tell them if you have not received the money by then you will make a complaint to the Real Estate Institute and take them to Fair Trading. Sometimes you have to go to the person who owns/ runs the business as the workers usually don't care, especially when it is extra work for them and they get no reward for doing it (plus the longer the Real Estate don't pay you the longer they earn interest on your money).",
"title": ""
}
] |
[
{
"docid": "d531e6c8919ffe0ead8462feb2aba3db",
"text": "I wouldn't start a bidding war if I were you. Sometimes you may get potentially bad tenants who cannot find a property anywhere else offering more money just to get in a place. If you know nothing else about these people how can you guarantee they will keep paying the rent once they get in. The things you should be doing is checking the prospective tenant's employment and income status, making sure they are able to easily pay the rent. You should check their credit report to see if they have a history of bad debts. And you should be checking with their previous landlords or real estate agents to see if they caused any damages to their previous properties. You should create a form that prospective tenants can fill out providing you with all the essential information you are after. Get them so sign a statement that gives you authority to ask information about them with other people (their previous landlords/ real estate agents, and their employers). Have a system set out on how you will assess all applicants and for the information the applicants need to provide you with. Treat it as a business.",
"title": ""
},
{
"docid": "eda0f6e572c77ee7731c607bd7b2d042",
"text": "You are not a landlord. You have choices: The current situation is charity. And that's ok, so long as you acknowledge it. In the big picture, anything less than market rent is a gift that you are giving the person living in your house. A good tenant might keep the place in better shape, and deserve a lower rent, but that's a quid pro quo. In the end, landlording is a business. If you had 10-20 apartments, they would be proving an income to you and you would have a large chunk of your wealth tied up in it. You would keep the apartments in good shape both to be legal and not a slumlord, but you'd also collect market rent. $100/apt would be $1000-$2000/mo income to you and your family. You wife is right. As always. You have a decision to make to stop the bleeding.",
"title": ""
},
{
"docid": "d4ba0d02eef394fb45b1f529b16dd894",
"text": "There are probably specific laws that control landlord/tenant rent disputes. But your friend's argument assumes that there aren't. Let's assume that there aren't. So there are two possibilities. Either the contract directly addresses this issue or it doesn't. If the contract directly and specifically addresses this issue, then that controls. Your friend is not claiming that it is specifically addressed. So the general principle is this -- when something occurs within a contract that wasn't explicitly discussed by the parties, courts will try to figure out what the parties likely would have agreed to had they discussed the specific issue (without changing the agreed terms of the contract). This should produce the result that is fair to both parties. Your friend is arguing then that had he and the landlord discussed the issue, the landlord would have agreed that in the event he is no longer able to accept credit cards easily, your friend could live there rent free. That doesn't seem right to me. Does it seem right to you? Much more likely they would have agreed that he might have some leeway to work out a new payment scheme and maybe some late rent should be forgiven if he made an attempt to pay on time but couldn't make arrangements. But I don't see more than that being reasonable.",
"title": ""
},
{
"docid": "fb63ae90cd193b56aa90bf4163a6c592",
"text": "There is no way that someone on this site can tell if they overpaid you. So for the purposes of my answer I am going to assume that the company is correct that you got overpaid somehow. I think the answer is pretty clear if they DIDN'T overpay you. If they overpaid you then Yes you owe the money. Why would you think otherwise. If they underpaid you, wouldn't you expect that they owed you money? Why should the opposite be any different? Finder's Keepers isn't a legal defense in this situation.",
"title": ""
},
{
"docid": "929e1ed662028615cc9ae4d59a2cae8e",
"text": "\"This is accepted law in Pennsylvania, however, I will defer to your expertise and state that the decades long precedents are incorrect and every judge that allows cases to continue is wrong and you are correct. The Internet is great for things like that. Hopefully the next person in court can simply state: No your Honor, the landlord did not follow established law! Court rulings be damned. I was on reddit and /u/OriginalSimba stated unequivocally said that what is happening is \"\"legally impossible\"\" and that the decades of precedent that exist is simply because \"\"the court screwed up\"\". Heck, they can take it further to state that \"\"every lease in Pennsylvania is illegal\"\". I offer sarcasm as a response but if this was a single ruling I might agree with you. It's well established here in the great Commonwealth of PA. I say it's been around 30 years because I've been a landlord here for over 20 years, and a renter for about 10 or so before that. The clause has always been there. The basis for today's laws here in PA are from the Landlord Tenant Act of 1951. I'm not a lawyer so I can't tell you when the first waiver of rights came about but it's very possible it could go back that far.\"",
"title": ""
},
{
"docid": "e7c4de12c012960ae2f30380ae29cab3",
"text": "\"I don't have a crystal ball but chances are your tenant is definitely lying. Rent was late and now the money intended to cover the rent; miraculously is lost in the mailbox. Anyhow, you were already nice to tolerate the late \"\"payment\"\". Keshlam's option 1.5 in the comments above is the ideal way to settle in which both parties have learned a lesson and are at a loss. Demand the rent payment but settle for half as a one time courtesy. If this continues or this tenant has shown shady predicaments such as this, you should look for legal means to evict this tenant. College students are very creative and who's to say this won't happen again? \"\"The neighbors dog took my wallet.\"\"\"",
"title": ""
},
{
"docid": "b80cd12b199c52298cec99dc26f6ee26",
"text": "\"That ain't nothing. It's really easy to get \"\"whipped up\"\" into a sense of entitlement, and forget to be grateful for what you do have. If this house doesn't exist, what would his costs of housing be elsewhere? Realistically. Would landlords rent to him? Would other bankers lend him money to buy a house? Would those costs really be any better? What about the intangible benefits like not having any landlord hassles or having a good relationship with the neighbors? It's entirely possible he has a sweet deal here, and just doesn't make enough money. If your credit rating is poor, your housing options really suck. Banks won't lend you money for a house unless you have a huge ton of upfront cash. Most landlords won't rent to you at all, because they are going to automated scoring systems to avoid accusations of racism. In this day and age, there are lots of ways to make money with a property you own. In fact, I believe very firmly in Robert Allen's doctrine: Never sell. That way you avoid the tens of thousands of dollars of overhead costs you bear with every sale. That's pure profit gone up in smoke. Keep the property forever, keep it working for you. If he doesn't know how, learn. To \"\"get bootstrapped\"\" he can put it up on AirBnB or other services. Or do \"\"housemate shares\"\". When your house is not show-condition, just be very honest and relatable about the condition. Don't oversell it, tell them exactly what they're going to get. People like honesty in the social sharing economy. And here's the important part: Don't booze away the new income, invest it back into the property to make it a better money-maker - better at AirBnB, better at housemate shares, better as a month-to-month renter. So it's too big - Is there a way to subdivide the unit to make it a better renter or AirBnB? Can he carve out an \"\"in-law unit\"\" that would be a good size for him alone? If he can keep turning the money back into the property like that, he could do alright. This is what the new sharing economy is all about. Of course, sister might show up with her hand out, wanting half the revenue since it's half her house. Tell her hell no, this pays the mortgage and you don't! She deserves nothing, yet is getting half the equity from those mortgage payments, and that's enough, doggone it! And if she wants to go to court, get a judge to tell her that. Not that he's going to sell it, but it's a huge deal. He needs to know how much of his payments on the house are turning into real equity that belongs to him. \"\"Owning it on paper\"\" doesn't mean you own it. There's a mortgage on it, which means you don't own all of it. The amount you own is the value of the house minus the mortgage owed. This is called your equity. Of course a sale also MINUS the costs of bringing the house up to mandatory code requirements, MINUS the cost of cosmetically making the house presentable. But when you actually sell, there's also the 6% Realtors' commission and other closing costs. This is where the mortgage is more than the house is worth. This is a dangerous situation. If you keep the house and keep paying the mortgage all right, that is stable, and can be cheaper than the intense disruption and credit-rating shock of a foreclosure or short sale. If sister is half owner, she'll get a credit burn also. That may be why she doesn't want to sell. And that is leverage he has over her. I imagine a \"\"Winter's bone\"\" (great movie) situation where the family is hanging on by a thread and hasn't told the bank the parents died. That could get very complex especially if the brother/sister are not creditworthy, because that means the bank would simply call the loan and force a sale. The upside is this won't result in a credit-rating burn or bankruptcy for the children, because they are not owners of the house and children do not inherit parents' debt.\"",
"title": ""
},
{
"docid": "acd8edcab069333c4f0510ce02c9a3e2",
"text": "Personally, it is the tenant's stupidity to leave cash and not get a receipt. If it were me, I would demand payment. But then $750 to me is a lot more than it may be to others. This is entirely a personal decision, legally I don't think the tenant has a leg to stand on because they have no proof they actually paid you, regardless of how or where they 'left it'.",
"title": ""
},
{
"docid": "fe638c47505fa844419fd4a4523d8fb8",
"text": "\"A person can finance housing expenses in one of two ways. You can pay rent to a landlord. Or you can buy a house with a mortgage. In essence, you become your own landlord. That is, insta the \"\"renter\"\" pays an amount equal to the mortgage to insta the \"\"landlord,\"\" who pays it to the bank to reduce the mortgage. Ideally, your monthly debt servicing payments (minus tax saving on interest) should approximate the rent on the house. If they are a \"\"lot\"\" more, you may have overpaid for the house and mortgage. The advantage is that your \"\"rent\"\" is applied to building up equity (by reducing the mortgage) in your house. (And mortgage payments are tax deductible to the extent of interest expense.) At the end of 30 years, or whatever the mortgage term, you have \"\"portable equity\"\" in the form a fully paid house, that you can sell to move another house in Florida, or wherever you want to retire. Sometimes, you will \"\"get lucky\"\" if the value of the house skyrockets in a short time. Then you can borrow against your appreciation. But be careful, because \"\"sky rockets\"\" (in housing and elsewhere) often fall to earth. But this does represent another way to build up equity by owning a house.\"",
"title": ""
},
{
"docid": "d33cfed182d3f8615b0308ee695e4067",
"text": "As a landlord for 14 years with 10 properties, I can give a few pointers: be able and skilled enough to perform the majority of maintenance because this is your biggest expense otherwise. it will shock you how much maintenance rental units require. don't invest in real estate where the locality/state favors the tenant (e.g., New York City) in disputes. A great state is Florida where you can have someone evicted very quickly. require a minimum credit score of 620 for all tenants over 21. This seems to be the magic number that keeps most of the nightmare tenants out makes sure they have a job nearby that pays at least three times their annual rent every renewal, adjust your tenant's rent to be approximately 5% less than going rates in your area. Use Zillow as a guide. Keeping just below market rates keeps tenants from moving to cheaper options. do not rent to anyone under 30 and single. Trust me trust me trust me. you can't legally do this officially, but do it while offering another acceptable reason for rejection; there's always something you could say that's legitimate (bad credit, or chose another tenant, etc.) charge a 5% late fee starting 10 days after the rent is due. 20 days late, file for eviction to let the tenant know you mean business. Don't sink yourself too much in debt, put enough money down so that you start profitable. I made the mistake of burying myself and I haven't barely been able to breathe for the entire 14 years. It's just now finally coming into profitability. Don't get adjustable rate or balloon loans under any circumstances. Fixed 30 only. You can pay it down in 20 years and get the same benefits as if you got a fixed 20, but you will want the option of paying less some months so get the 30 and treat it like a 20. don't even try to find your own tenants. Use a realtor and take the 10% cost hit. They actually save you money because they can show your place to a lot more prospective tenants and it will be rented much sooner. Empty place = empty wallet. Also, block out the part of the realtor's agreement-to-lease where it states they keep getting the 10% every year thereafter. Most realtors will go along with this just to get the first year, but if they don't, find another realtor. buy all in the same community if you can, then you can use the same vendor list, the same lease agreement, the same realtor, the same documentation, spreadsheets, etc. Much much easier to have everything a clone. They say don't put all your eggs in one basket, but the reality is, running a bunch of properties is a lot of work, and the more similar they are, the more you can duplicate your work for free. That's worth a lot more day-to-day than the remote chance your entire community goes up in flames",
"title": ""
},
{
"docid": "c36be7dadeacd4e48979890060af57f0",
"text": "You are being ripped off on several counts. 1) 40k is 26% not 25%. 2) Why should you pay them $500 rent? they bought a share of the property, they should fund it if they intend to keep 75% 3) Why do you need to pay them for the 75%? why dont they need to pay you for the 25%? You are better off getting a loan for the 75% and going solo so you get to buy equity.",
"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": "e4ad0be85a116bee864a1595dcdf6501",
"text": "Since the tenant reportedly left money in your mailbox, and now the money is missing, a crime must have been committed. As such, have her file a report with law enforcement and provide you with a copy of that report. Remind her that, for her safety, it is best to file the report during daylight hours with other people present. You didn't make it clear to your tenant the methods in which she could provide payment. That was a mistake. At the same time, her decision to leave cash in a mailbox was foolish. If she is willing to file a report with law enforcement and provide you with a copy, tell her that you will split the loss and only require half her rent as a one-time courtesy. Make it clear that you are losing half the money too. If she is not willing to file a report, require the full rent.",
"title": ""
},
{
"docid": "ebcb79a96f86abe400f39b4e584aba25",
"text": "It's very possible that someone would lie to their landlord/landlady, but not be prepared to lie to the police. So here's what I would do. Advise your tenant that since her money has been stolen from your letterbox, she should report the theft to the police. If she refuses to report the theft to the police, then her story is probably a lie. In which case, treat the rent as deliquent and demand payment in full. Invoke whatever kind of recourse is available in your jurisdiction. If she goes ahead and reports the theft, then it's very likely that her story is true. It's probably in your interest to stay on good terms with such a tenant, so you could offer to split the loss with her. But let her know that this is a one-time offer, and you won't be so generous again.",
"title": ""
},
{
"docid": "8dd79db65f2185bdc8fe64923d0173c3",
"text": "\"Is the mortgage debt too high? The rental property is in a hot RE market, so could be easily sold with significant equity. However, they would prefer to keep it. Given the current income, there is no stress. However in absence of any other liquid [cash/near cash] assets, having everything locked into Mortgage is quite high. Even if real estate builds assets, these are highly illiquid investments. Have debt on such investments is risky; if there are no other investments. Essentially everything looks fine now, but if there is an crisis, unwinding mortgage debt is time consuming and if it forces distress sale, it would wipe out any gains. Can they afford another mortgage, and in what amount? (e.g. they are considering $50K for a small cabin, which could be rented out). I guess they can. But should they? Or diversify into other assets like stocks etc. Other than setting cash aside, what would be some good uses of funds to make sure the money would appreciate and outpace inflation and add a nice bonus to retirement? Mutual Funds / Stocks / bullions / 401K or other such retirement plans. They are currently in mid-30's. If there is ONE key strategy or decision they could make today that would help them retire \"\"early\"\" (say, mid-50's), what should it be? This opinion based ... it depends on \"\"what their lifestyle is\"\" and what would they want their \"\"lifestyle\"\" to be when they retire. They should look at saving enough corpus that would give an year on year yield equivalent to the retirement expenses.\"",
"title": ""
}
] |
fiqa
|
b5ce3353dfd779dab3c7a7299223c44a
|
How to tell if you can trust a loan company?
|
[
{
"docid": "8c110f32b343a2ce07b65f5da4df469c",
"text": "Look for people who have done business with them. If you don't know anyone who has used their services, look for a company that at least has a brick and mortar branch in your area. Being able to deal with them face to face is a must. Have you checked with your local bank?",
"title": ""
}
] |
[
{
"docid": "d2aa9ba776cab68fb9f0bd1333bbea3b",
"text": "\"You can find out the most money they will loan you for a car loan when you approach your current bank/credit union. They should be willing to layout options based on your income, and credit history. You then have to decide if those terms work for you. There are several dangers with getting loan estimates, they may be willing to lend you more than you can actually handle. They think you can afford it, but maybe you can't. They may also have a loan with a longer term, which does bring the monthly cost down, but exposes you to being upside down on the loan. You then use this a a data point when looking at other lenders. The last place you look is the auto dealer. They will be trying to pressure you on both the loan and the price, that is not the time to do doing complex mental calculations. The Suntrust web page was interesting, it included the quote: The lowest rate in each range is for LightStream's unsecured auto loan product and requires that you have an excellent credit profile. It also induced the example the rate of 2.19% - 4.24% for a 24 to 36 month loan of $10,000 to $24,999 for a used car purchased from a dealer. Also note that my local credit union has a new/used loan at 1.49%, but you have to be a member. Sunstrust seems to be in the minority. In general a loan for X$ and y months will have a lower rate if it is secured with collateral. But Suntrust is offering unsecured loans (i.e. no collateral) at a low rate. The big benefit for their product is that you get the cash today. You can get the cash before you know what you want to buy. You get the cash before you have negotiated with the dealer. That makes that step easier. Now will they in the near future ask for proof you bought a car with the money? no idea. If you went to the same web page and wanted a debt consolidation loan the rate for the same $ range and the same months is: 5.49% - 11.24% the quote now changes to: The lowest rate in each range requires that you have an excellent credit profile. I have no idea what rate they will actually approve you for. It is possible that if you don't have excellent credit the rate rises quickly, but 4.24% for the worst auto loan is better than 5.49% for the best debt consolidation. Excellent Credit Given the unique nature of each individual’s credit situation, LightStream believes there is no single definition for \"\"excellent credit\"\". However, we find individuals with excellent credit usually share the following characteristics: Finally, it should be noted again that each individual situation is different and that we make our credit judgment based on the specific facts of that situation. Ultimately our determination of excellent credit is based on whether we conclude that there is a very high likelihood that our loan will be repaid in a full and timely manner. All the rates mentioned in this answer are from 15 July 2017.\"",
"title": ""
},
{
"docid": "a11e45f2b7a31b20fab59e4a23864774",
"text": "I've had loans from B of A and Wells Fargo, and both have always been quick to correct any mistakes and work with me on any problems. I think it may be partly due to the fact that I understand the problem, can clearly tell them what I expect, and I treat them like an equal that would want to help fix the problem. Some people seen to always have problems, and others seem to never have them. I believe there is a reason for that.",
"title": ""
},
{
"docid": "325b3734841f36f5f68aa1ba1902f580",
"text": "I know this question has a lot of answers already, but I feel the answers are phrased either strongly against, or mildly for, co-signing. What it amounts down to is that this is a personal choice. You cannot receive reliable information as to whether or not co-signing this loan is a good move due to lack of information. The person involved is going to know the person they would be co-signing for, and the people on this site will only have their own personal preferences of experiences to draw from. You know if they are reliable, if they will be able to pay off the loan without need for the banks to come after you. This site can offer general theories, but I think it should be kept in mind that this is wholly a personal decision for the person involved, and them alone to make based on the facts that they know and we do not.",
"title": ""
},
{
"docid": "de136f29d9892b752067d59d4b2f60b1",
"text": "Purchase loans tend to be more challenging to get the best possible rate, because you have to balance closing the loan and getting the contract. So there isn't as much time to shop around as when you do a refinance. I disagree with the sentiment to go with your local bank. Nothing wrong with asking at your local bank and using their numbers as a baseline, but chances are they won't be competitive. There are many reputable online mortgage originators that will show accurate fees and rates upfront assuming you provide accurate information. In the past there were a lot of issue with Good Faith Estimates being pretty much worthless. There were a fair number of horror stories about people showing up to closing and finding out fee or rates had increased dramatically. There was a law passed after the housing debacle that severely limits the shenanigans that lenders can do at closing and so there is less risk when going with a lesser known lender. In fact I would say the only real risk with a lender now days is choosing one that happens to be overloaded and or just has poor customer service in general. Personally I have found the most competitive rates from Zillow's mortgage service and the now defunct Google mortgage. The lenders tend to be smaller, but highly efficient. They are very much dependent on their online reputations. I have heard good things about a number of larger online lenders, but I don't have personal experience so I will leave them off. I personally wouldn't worry much about whether the loan is sold or not. Outside of refinancing I don't think I have ever talked to the bank servicing my mortgage about my mortgage. There just isn't much need to talk to them.",
"title": ""
},
{
"docid": "69785cfa56e360777df4467d5a7e57aa",
"text": "Well, if you can get a loan for 3.8% and reliably invest for 7% returns, then you should borrow as much as you possibly can - the whole employment/existing loan situation doesn't even enter into it! But as they say, if something is too good to be true, it probably isn't (true). The 7-8% return are not guaranteed at all, but the 3.8% interest is. And while we're at it, 3.8% for an unsecured loan sounds pretty damn low, I would be really doubtful about that. I mean, why would the bank do that if they could instead invest the money for 7-8%?",
"title": ""
},
{
"docid": "b9300c42e6ddab9c79fd61d14d4cb061",
"text": "You should also be aware that there are banks that do business in the US that do not deal with Fannie Mae, and thus are not subject to the rules about conforming loans. Here is an example of a well-known bank that lists two sets of rates, with the second being for loans of $750,000 or more (meaning the first covers everything up to that) https://home.ingdirect.com/orange-mortgage/rates",
"title": ""
},
{
"docid": "5020753a623b5bf2ff5223dc20c9b78d",
"text": "In my book if it comes in the mail with official looking envelopes, language and seals to try and get you to open it, the company isn't trust worthy enough for my business. I get a pile of these for my VA loan every week, I imagine FHA loans get similar junk mail. Rates are very low at the moment so it is likely that rates from reputable lenders are 1 to 2% lower than say a year or 2 years ago. In general if a lender gives you a GFE the numbers on it are going to be pretty accurate and there isn't a great deal of wiggle room for the lender so the concerns with reputation should focus on is this outfit some type of scam and then reviews on how good or bad their customer service is. Chances of running into a scam seem pretty low but the costs could be really high. As far as checking if an unknown lender is any good it is kind of tough to do. There is a list of Lenders on HUD's site. Checking BBB can't hurt but I wouldn't put a lot of stock into their recommendations. Doing some general Google searches certainly can't hurt but aren't fool proof either. Personally I would start by checking what prevailing rates are for your current situation. You could go to your proffered bank or to any number of online sites to get a couple of quotes.",
"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": "b93a5d77409254fa60210ce84930525a",
"text": "\"The first red-flag here is that an appraisal was not performed on an as-is basis - and if it could not be done, you should be told why. Getting an appraisal on an after-improvement basis only makes sense if you are proposing to perform such improvements and want that factored in as a basis of the loan. It seems very bizarre to me that a mortgage lender would do this without any explanation at all. The only way this makes sense is if the lender is only offering you a loan with specific underwriting guidelines on house quality (common with for instance VA-loans and how they require the roof be of a certain maximum age - among dozens of other requirements, and many loan products have their own standards). This should have been disclosed to you during the process, but one can certainly never assume anyone will do their job properly - or it may have only mentioned in some small print as part of pounds of paper products you may have been offered or made to sign already. The bank criteria is \"\"reasonable\"\" to the extent that generally mortgage companies are allowed to set underwriting criteria about the current condition of the house. It doesn't need to be reasonable to you personally, or any of us - it's to protect lender profits by aiding their risk models. Your plans and preferences don't even factor in to their guidelines. Not all criteria are on a a sliding scale, so it doesn't necessarily matter how well you meet their other standards. You are of course correct that paying for thousands of dollars in improvements on a house you don't own is lunacy, and the fact that this was suggested may on it's own suggest you should cut your losses now and seek out a different lender. Given the lender being uncooperative, the only reason to stick with it seems to be the sunk cost of the appraisal you've already paid for. I'd suggest you specifically ask them why they did not perform an as-is appraisal, and listen to the answer (if you can get one). You can try to contact the appraiser directly as well with this question, and ask if you can have the appraisal strictly as-is without having a new appraisal. They might be helpful, they might not. As for taking the appraisal with you to a new bank, you might be able to do this - or you might not. It is strictly up to each lender to set criteria for appraisals they accept, but I've certainly known of people re-using an appraisal done sufficiently recently in this way. It's a possibility that you will need to write off the $800 as an \"\"education expense\"\", but it's certainly worth trying to see if you can salvage it and take it with you - you'll just have to ask each potential lender, as I've heard it go both ways. It's not a crazy or super-rare request - lenders backing out based on appraisal results should be absolutely normal to anyone in the finance business. To do this, you can just state plainly the situation. You paid for an appraisal and the previous lender fell through, and so you would like to know if they would be able to accept that and provide you with a loan without having to buy a whole new appraisal. This would also be a good time to talk about condition requirements, in that you want a loan on an as-is basic for a house that is inhabitable but needs cosmetic repair, and you plan to do this in cash on your own time after the purchase closes. Some lenders will be happy to do this at below 75%-80% LTV, and some absolutely do not want to make this type of loan because the house isn't in perfect condition and that's just what their lending criteria is right now. Based on description alone, I don't think you really should need to go into alternate plans like buy cash and then get a home equity loan to get cash out, special rehab packages, etc. So I'd encourage you to try a more straight-forward option of a different lender, as well as trying to get a straight answer on their odd choice of appraisal order that you paid for, before trying anything more exotic or totally changing your purchase/finance plans.\"",
"title": ""
},
{
"docid": "a6e78d648403a607c83fb538ac0fd1d7",
"text": "I have recently been the lender to a couple people. It was substantially less money (~$3k), but I was trusting their good faith to pay me back. As a lender, I will never do it again. Reasons, Overall, not worth it.",
"title": ""
},
{
"docid": "442a363cb496ed3562c1c8194e56956c",
"text": "\"People borrow money all the time to buy a house. Banks will lend money on one (up to 80%, sometimes more), because they consider it an \"\"investment.\"\" If you own a large company and want to expand, a bank or bond issuer will first look at what you plan to do with the money, like build new factories, or whatever. Based on their experience, they may judge that you will earn enough money to pay them back. If you don't, they may \"\"repossess\"\" your factories and sell them to someone who can pay. As protection, you may be asked to \"\"mortgage\"\" your existing company to protect the lenders of the new money. If you don't pay back the money, the lenders get not only your new \"\"factories\"\" but also your existing company.\"",
"title": ""
},
{
"docid": "9ffb3ef759cbb56470d2a1ac59d3fd1b",
"text": "\"Lots of loans that are shady to say the least are advertised currently on TV in the UK. I'm happily in a situation where I don't need a loan but might be asked to be a guarantor. If anyone asked me to be a guarantor for a loan, I'd either be capable and willing to loan that money to the person myself, or I wouldn't guarantee. I'd never, ever in a million years be a guarantor. There is one company in particular offering loans \"\"the good old-fashioned way\"\" asking for 49.9% interest with a guarantor. That is an interest rate that can bankrupt the guarantor. If you take the loan with me as the guarantor, and you decide that you are not interested in paying back the loan, I'm stuck with this loan. So since the guarantor must trust you, if he or she is established in the UK, the best thing to do would be for them to take a loan from a bank (or any supermarket nowadays will give you a loan at a decent rate) in their own name, give the money to you, and hope that you pay back the money. I'm equally responsible for repayment whether I'm guarantor or whether the loan is in my name, so I'd get that loan at a decent rate from a reputable bank.\"",
"title": ""
},
{
"docid": "a63cad28784905e421646aa0f9ceddf3",
"text": "Look, I'm not an expert in what assets DB has in transportation companies, or to what industries DB's banks lend money. DB is a multinational corporation that probably has its fingers in hundreds of markets and industries. All I am trying to say is that DB is largely disinterested. Just because DB invests marginally in transportation and logistics does not mean that it should be trusted as a significantly invested (and informed) party, any more than I should be trusted as an interested informed party in regards to technology sector because I own shares of a mutual fund that owns shares of Apple and Alphabet. Regardless of the hearsay component, which is inherently untrustworthy, DB is not a market player such that its word should be taken as anything other than with a grain of salt.",
"title": ""
},
{
"docid": "a4777ce9064e80c707b0fc4fbf7440d7",
"text": "It's complicated. Really, there's no solid answer for your question. Everybody's risk tolerance and time horizon is going to be different. Those who can take on more risk can take on lower-grade C-G loans at Lending Club. Those with less risk tolerance should emphasize As and Bs.",
"title": ""
},
{
"docid": "3fb5db8326c2efdceaf19289ec6d1721",
"text": "If a bank is evaluating a persons qualifications to qualify for a loan they have to follow the FDIC and HUD guidelines for equal opportunity credit. If they offer mortgages they will use the phrase equal housing. from the lending club website (fine print area): 2 This depiction is a summary of the processes for obtaining a loan or making an investment. Loans are issued by WebBank, an FDIC insured Utah-chartered industrial bank located in Salt Lake City, Utah, Equal Housing Lender. Investors do not invest directly in loans. Investors purchase Member Dependent Notes from Lending Club. Loans are not issued to borrowers in IA and ID. Individual borrowers must be a US citizen or permanent resident and at least 18 years old. Valid bank account and social security number/FEIN are required. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. LendingClub notes are issued pursuant to a Prospectus on file with the SEC. You should review the risks and uncertainties described in the Prospectus related to your possible investment in the notes. Currently only residents of the following states may invest in Lending Club notes: AR, AZ, CA, CO, CT, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, ME, MN, MO, MS, MT, NE, NH, NV, NY, OK, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, or WY. Our mailing address is: Lending Club, 71 Stevenson, Suite 300, San Francisco, CA 94105.",
"title": ""
}
] |
fiqa
|
1f4fc02a1c990eb516299103018e5265
|
How to transfer money to yourself internationally?
|
[
{
"docid": "29e0d619dd0009cb1e01b506531c63ad",
"text": "Hmmm... As far as I know wire transfers are still the best option. If you make sure your US account accepts international wires for free (like TD Bank does) you'll have eliminated most of the costs (assuming your foreign bank doesn't charge too much for wiring the funds in the first place). Also, if your able to, you could consider wiring 6 or so months at the same time. I'm not familiar with XE.com but it seems it's not set up for transferring money so much as for trading currencies. While you could probably use it to transfer funds if you'd link both your accounts it seems a rather complicated way to go about things. Paypal could be an option if they'd allow you to set up an account in each country (or if you have a relative that could help out), but it gets more expensive than wire-transfers quickly. As for getting the best exchange rate... I've given up on that a long time ago and have accepted that as the cost of living internationally :).",
"title": ""
},
{
"docid": "a4ea222c46b78da5d98cec42d6f91562",
"text": "I use XE.com for almost the same purpose. They have free transfer options, such as ACH withdrawals and deposits. I normally do a online bill payment through my international bank to XE, and have them deposit it in the US via ACH. It takes 1-3 business days, and there's no fee beyond their small percentage (about 1.25%) on top of the exchange rate.",
"title": ""
},
{
"docid": "1fe0edeb6c6da8ee333bf55a13c5f35a",
"text": "Transferwise is a new peer-to-peer service that's setup to lower fees for international money transfers: https://transferwise.com",
"title": ""
},
{
"docid": "7957baed2fcd5a97163f83bb26a8c990",
"text": "It really depends on the amount of money - I currently have to pay my mortgage in the UK from the US until my house there is sold and my wife sends money from her (US) Paypal account to my UK Paypal account. As personal payments these don't attract the sort of fees you see for ebay payments et al. Compared to the fee-o-rama that a wire transfer turns into (I tried once from BofA to HSBC UK), it is noticeably cheaper for the amount of money we're sending. That said, a lot of the currency transfer services have support for monthly payments and you might get a decent exchange rate and fewer (or no) fees that way.",
"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": "97d71f0aa71ee30780c8ca0195c66503",
"text": "To transfer US$30,000 from the USA to Europe, ask your European banker for the SWIFT transfer instructions. Typically in the USA the sending bank needs a SWIFT code and an account number, the name and address of the recipient, and the amount to transfer. A change of currency can be made as part of the transfer. The typical fee to do this is under US$100 and the time, under 2 days. But you should ask (or have the sender ask) the bank in the USA about the fees. In addition to the fee the bank may try to make a profit on the change of currency. This might be 1-2%. If you were going to do this many times, one way to go about it is to open an account at Interactive Brokers, which does business in various countries. They have a foreign exchange facility whereby you can deposit various currencies into your account, and they stay in that currency. You can then trade the currencies at market rates when you wish. They are also a stock broker and you can also trade on the various exchanges in different countries. I would say, though, they they mostly want customers already experienced with trading. I do not know if they will allow someone other than you to pay money into your account. Trading companies based in the USA do not like to be in the position of collecting on cheques owed to you, that is more the business of banks. Large banks in the USA with physical locations charge monthly fees of $10/mo or more that might be waived if you leave money on deposit. Online banks have significantly lower fees. All US banks are required to follow US anti-terrorist and anti-crime regulations and will tend to expect a USA address and identity documents to open an account with normal customers. A good international bank in Europe can also do many of these same sorts of things for you. I've had an account with Fortis. They were ok, there were no monthly fees but there were fees for transactions. In some countries I understand the post even runs a bank. Paypal can be a possibility, but fees can be high ~3% for transfers, and even higher commissions for currency change. On the other hand, it is probably one of the easiest and fastest ways to move amounts of $1000 or less, provided both people have paypal accounts.",
"title": ""
},
{
"docid": "4d09b3d9cf7ceb80f318ecff449b2bfb",
"text": "You can use a service like Transferwise to send money. The trick is that they allow sending money to yourself, from a GBP account to an EUR account, effectively making it an exchange shop. Their rates are usually very good, with the transfers happening on the same day most of the time.",
"title": ""
},
{
"docid": "6d404e48a37707fb85892c3a278a7bd5",
"text": "I can only imagine the regulatory difficulty you're going through, and for that I empathize. First, bankers everywhere mostly do not know if a bank policy is due to regulation or internal rules. Other banks may be more flexible, but only the most reputable should be used. Re Paypal, they first deposit 1 USD and then withdraw it, but things may be different in Cyprus. Also, Paypal now has debit cards, so if Paypal is permitted to issue cards in Russia then it could presumably be used in Cyprus. Again, local regulation notwithstanding. Paypal now has phone support at the very back of their site, so I suggest a call to them. In countries that permit, Western Union can be used to wire money into an account from cash. The Bitcoin route should be used as a last resort. You could wake up tomorrow losting 25% easy. The regulations are a distant second compared to this problem. With all of the above methods, there will be varying delays from days to weeks.",
"title": ""
},
{
"docid": "9ee43db088ef43126ad6e5f9efd1aec9",
"text": "\"I think you can do it as long as those money don't come from illegal activities (money laundering, etc). The only taxes you should pay are on the interest generated by those money while sitting in the UK bank account. Since I suppose you already paid taxes on those money in Greece while you were earning those money. About being audited, in my own experience banks don't ask you much where your money are coming from when you bring money to them, they are very willing to help, and happy. (It's a differnte story when you ask to borrow money). When I opened a bank account in US I did not even have an SSN, but they didn't care much they just took my passport and used the passport number for registering the account. Obviously on the interest generated by the money in the US bank account I had to pay taxes, but it was easy because I simply let the IRS via the bank to withdarw the 27% on the interest generated (not on the capital deposited). I didn't put a huge amount of money there I had to live there for 1 year or some more. Maybe if i deposited a huge amount of money someone would have come to ask me how did I make all those money, but those money were legally generated by me working in Italy before so I didn't have anything to be afraid about. BTW: in Italy I was thinking to move money to a German bank in Germany. The risk of default is a nightmare, something of completly new now in UE compared to the past where each state had its own currency. According to Muro history says that in case of default it happened that some government prevented people from withdrawing money form bank accounts: \"\"Yes, historically governments have shut down banks to prevent people from withdrawing their money in times of crisis. See Argentina circa 2001 or US during Great Depression. The government prevented people from withdrawing their money and people could do nothing while their money rapidly lost value.\"\" but in case Greece prevents people from withdrwaing money, those money are still in EURO, so i'm wondering what would be the effect. I mean would it be fair that a Greek guy can not withdraw is EURO money whilest an Italian guy can withdraw the same currency money in Italy?!\"",
"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": "3074655230caab150bc15cef1403b6f8",
"text": "The supposed cheapest way to do this is via a website like: https://transferwise.com/en They claim to have the best exchange rates compared to banks but I have never used them. If you do use them could you let us know in the comments as to how good they are?",
"title": ""
},
{
"docid": "3f86d9531054d39e2a41f39f593c483d",
"text": "Depending on your income/savings level and who you work for (if you work for a big company check with an HSBC Premier advisor, they may waive the requirements), you may qualify for an HSBC Premier account, which can allow you to open accounts in different countries and transfer money between them without a fee. You can also get a Premier account without meeting the requirements if you are willing to pay a monthly fee, but I doubt that will be worth it in the long run for what you need (worth doing the math though if you travel frequently). NOTE: There may be similar offerings from other banks, but this is just the only one I'm aware of.",
"title": ""
},
{
"docid": "303f9e3c17e772c2531668aa10c2dfe7",
"text": "There is a fourth option - pay those taxes. Depending on the amounts, it might be the easiest way - if you make 34.49 in interest, and pay 6 $ in taxes on it, and be done, that might not be worth any other effort. If the expected taxable amount is significant, moving (most of it) to index funds or other simply switching existing investments to ‘reinvest’ instead of ‘pay out in cash’ would be the best approach. Again, some smaller amounts in savings or checkings accounts are probably not worth any effort. Transferring the money to the US doesn’t save you taxes, as any interest would still be taxable. You have a risk to lose on the conversion back and forth (and a potential to gain - the exchange rate could go either way!), so if you are sure you go back, it’s not a good idea to move the money.",
"title": ""
},
{
"docid": "658753afb2ce69e32d23b16aa02a4b7e",
"text": "If I understand TransferWise’s Supported Countries page correctly, you could use their service. I believe it should be cheaper than having the bank convert. I've been very happy with the service and use it regularly.",
"title": ""
},
{
"docid": "05526b29a5ac2fc0279c9c880b6a6360",
"text": "Try looking at Transferwise. They have low fees and often beat the banks. They (broadly speaking) work by finding people who need to convert money the other way round and then just push money around in the respective local currency.",
"title": ""
},
{
"docid": "bf9423b9d4b925b1d38d1d09b0f2d4a8",
"text": "\"My solution when I lived in Singapore was to open an account with HSBC, who at the time also had branches in the US. When I was home, I used the same debit card, and the bank only charged a nominal currency exchange fee (since it never had to leave their system, it was lower than had it left their system). Another option, though slightly more costly, is to use Paypal. A third option is to cash-out in CAD and convert to USD at a \"\"large\"\" institution - the larger your deposit/conversion balance, the better the rate you can get. To the best of my knowledge, this shouldn't be taxable - presuming you've paid the taxes on it to start with, and you've been filing your IRS returns every year you've been in Canada.\"",
"title": ""
},
{
"docid": "f36e485e0a7440fb5ee9b39247f2c2c5",
"text": "A lot depends on how much is in the account, and whether you expect to be returning (or having any sort of financial dealings) in Europe in the future. My own experience (about 10 years out of date, and with Switzerland) is that the easiest way to transfer reasonable amounts (a few thousand dollars) was simply to get it in $100 bills from the European bank. I also kept the account open for a number of years while living in the US (doing contracting that was paid into the European bank), and could withdraw money from American ATMs. I eventually had to close the account due to issues between the bank and the IRS. I think it was only that particular bank (UBS) that was the problem, though.",
"title": ""
},
{
"docid": "e53fd9523e727727b8cc719c89d51ff5",
"text": "One way is to wire transfer large amounts. If you transfer $5,000 at one go, that $50 fee works out to 1%, same as the $5 on a $500 ATM withdrawal (and ATM fees, hidden and explicit, tend to be higher than $5). The downside is exchange rate risk (taking more money at one go exposes you to that day's rate, good or bad, vs taking it in multiple chunks). If you're American, you also have to report large transfers and foreign balances on your taxes. Shopping around for a good home bank (with low wire & foreign ATM fees), is quite important.",
"title": ""
},
{
"docid": "b2a42a43199544b13ae1fa3a02bd3d56",
"text": "\"The easiest and least expensive way of doing this, similar to the answer from Randy Coulman, is to write a check and deposit it into the Canadian Institution. Since this transfer is between accounts you own the easiest thing to do is to do a deposit by mail. Contact your current institution on where you would need to mail your deposit to. You can then write yourself a check on the US bank and mail it to the Canadian bank; be sure to write \"\"For Deposit Only\"\" along with your account number (and Branch Number for Canada) on the back. This is the slowest, but cheapest method. An alternative option is to use Wire Transfers, but they can be very costly (you'll usually incur a fee when sending and when receiving). I only recommend them when you need the money in the account fast (they are usually settled within an hour).\"",
"title": ""
},
{
"docid": "d494f736c2fe7c90d149b3ec3bbbcc0f",
"text": "There are several ways to minimize the international wire transfer fees: Transfer less frequently and larger amounts. The fees are usually flat, so transferring larger amounts lowers the fee percentage. 3% is a lot. In big banks, receiving is usually ~$15. If you transfer $1000 at a time, its 1.5%, if you transfer $10000 - it's much less, accordingly. If you have the time - have them send you checks (in US dollars) instead of wire transferring. It will be on hold for some time (up to a couple of weeks maybe), but will be totally free for you. I know that many banks have either free send and/or receive. I know that ETrade provides this service for free. My credit union provides if for free based on the relationship level, I have a mortgage with them now, so I don't pay any fees at all, including for wire transfer. Consider other options, like Western Union. Those may cost more for the sender (not necessarily though), but will be free for the receiver. You can get the money in cash, or checks, which you can just deposit on your regular bank account. For smaller amounts, it should be much cheaper than wire transfer, for example - sending $500 to India costs $10, while wire transfer is $30.",
"title": ""
}
] |
fiqa
|
6fcf3e263cda5701b6f8356ccff8bf62
|
Is there a limit on the dollar amount of a personal check?
|
[
{
"docid": "23641425a136902b14a888a56d82c9b1",
"text": "Because of the way checks are processed, you can't write a check for $100 million or more: http://www.bankingquestions.com/checksyoureceived/q_limitfunds.html The field used for 'amount' has 10 digits, so anything at/above 10^10 cents (which would require 11 digits) can't be processed, at least not by normal means.",
"title": ""
},
{
"docid": "a84abc29f80cea29cc9d9ff10b3d315d",
"text": "\"Like the old American Express commercial: \"\"no preset spending limit\"\". It is really up to the bank(s) in question how big a cheque they are willing to honour. A larger amount would likely be held longer by a receiving institution to ensure that it cleared properly, but nothing written in law (in Canada, that I am aware of).\"",
"title": ""
},
{
"docid": "50d8baa527dda7e3d14ef76cae41eb8f",
"text": "As long as someone is willing to take it, you can write it! I personally wrote a check for a new car. The dealership didn't bat an eye.",
"title": ""
},
{
"docid": "37744cb356d487c24fefaa8b68df185c",
"text": "Not really. A bank will honor a million dollar check if there are funds there to let it clear.",
"title": ""
},
{
"docid": "a851a49cd357b224216792c74b6ab41d",
"text": "Many businesses will request that you get a bank-issued check for large amounts of money. The exception is often in cases where you're not going anywhere: you can write a 50,000 check for a deposit on a new house, and you'll never have a problem, but a car dealer will probably request a counter check for the same sum.",
"title": ""
}
] |
[
{
"docid": "990c695c06f83b04293bc55ff1980a6d",
"text": "I suspect @SpehroPefhany is correct and that your bank will cash a check from the US Department of the Treasury. Especially since they're the same ones who guarantee the U.S. Dollar. They may hold the funds until the check clears, but I think you'll have good luck going through your bank. Of course, fees and exchange rate are a factor. Consider browsing the IRS and US Treasury Department websites for suggestions/FAQs. I suggest you line up a way to cash it, and make sure there's enough left after fees and exchange rate and postage to get the check that the whole process is worth it, all before you ask it to be shipped to you. If there's no way to do it through your bank, through a money exchange business (those at the airport come to mind) or through your government (postal bank?), and the check is enough that you're willing to go through some trouble, then you should look into assigning power of attorney for this purpose. I don't know if it is possible, but it might be worth looking into. Look for US based banks in your area.",
"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": "75a17c9873c8af651c812c8a390fda9c",
"text": "There is no limit on the output maximum in one year. The strength of the HSA is that if you don't spend all the money in the account, it rolls over to the next year. The benefit is that if a few years down the road you get a huge medical bill you are protected because you can pull it out of the HSA. The goal for me was to build up the account to a level that even if I had to may the maximum out of pocket for my insurance policy the money game from previous years deposits and current year deposits. Even you ever have the situation where the employer doesn't offer a high deductible plan the money for co-payments and medicines can still be pulled from the pre-existing HSA. If the government did limit you to withdraws not exceeding current year deposits the roll over feature would be worthless.",
"title": ""
},
{
"docid": "fff9f534af255ae2a8658a1a07f2e894",
"text": "You can limit the value of your checking account tied to paypal by not putting money in that account. In fact, you should always limit the balance in your checking account to what you plan to spend, plus a reasonable buffer. Anything you have above and being that should be in separate accounts (both to minimize exposure as well as maximize your interest earned).",
"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": "d5d1e8cea7fd9c7f67b3b8a3b5051f7f",
"text": "Personally, I have a little checkbook program that I use to keep track of my spending and balance. Like you -- and I presume like most people -- I have certain recurring bills: the mortgage, insurance payments, car payment, etc. I simply enter these into the checkbook program about a month before the bill is due. Then I can run a transaction list that shows the date, amount, and remaining balance after each transaction. So if I want to know how much money I really have available to spend, I just look for the last transaction before my next payday, and see what the balance will be on that day. Personally, I always keep a certain amount of pad in my account so if I made a mistake and entered an incorrect amount for a check, or forgot to enter one completely, I don't overdraw the account. (I like to keep $1000 in such padding but that's way more than really necessary, it's very rare that I make a mistake of more than $100.) In my case, I don't enter electric bills or heating bills because I don't know the amount until I get the bill, and the amounts fall well within my padding, and for just two bills I can factor them in in my head. BTW I wrote this program myself but I'm sure there are similar products on the market. I used to use a spreadsheet and that worked pretty well. (Mainly I wrote the program because I have a tiny side business that I have to keep tax records for even though it makes almost no money.) You could in principle do it on paper, but the catch to that is that when you write payments on your paper ledger in advance of actually writing the check, you will often be writing down payments out of order, and so it becomes difficult to see what your balance is or was or will be on any given date. But a computer system can easily accept transactions out of order and then sort them and re-do the balance calculations in a fraction of a second.",
"title": ""
},
{
"docid": "2872c54aa6d39f2befbdf243277e0511",
"text": "\"On thing the questioner should do is review the Summary Plan Description (SPD) for the 401(k) plan. This MAY have details on any plan imposed limits on salary deferrals. If the SPD does not have sufficient detail, the questioner should request a complete copy of current plan document and then review this with someone who knows how to read plan documents. The document for a 401(k) plan CAN specify a maximum percentage of compensation that a participant in the 401(k) plan can defer REGARDLESS of the maximum dollar deferral limit in Internal Revenue Code Section 402(g). For example, the document for a 401(k) plan can provide that participants can elect to defer any amount of their compensation (salary) BUT not to exceed ten percent (10%). Thus, someone whose salary is $50,000 per year will effectively be limited to deferring, at most, $5,000. Someone making $150,000 will effectively be limited to deferring, at most, $15,000. This is true regardless of the fact that the 2013 dollar limit on salary deferrals is $17,500. This is also true regardless of whether or not a participant may want to defer more than ten percent (10%) of compensation. This \"\"plan imposed\"\" limit on salary deferral contributions is permissible assuming it is applied in a nondiscriminatory manner. This plan imposed limit is entirely separate from any other rules or restrictions on salary deferral amounts that might be as a result of things like the average deferral percentage test.\"",
"title": ""
},
{
"docid": "9c82501a5c673b08b9acdd4929544147",
"text": "As others have pointed out in comments and answers, the 6 withdrawal limit was based on Regulation D. Banks/credit unions that offer checking-account based HSAs do exist, with no limit on the number of withdrawals (at least according to information given to me over the phone -- I didn't check the disclosure brochures). Concrete examples (I can't vouch for any of these, just found them in my research):",
"title": ""
},
{
"docid": "ee98cdc37024de3dac00fdb75f6e1d98",
"text": "Believe it or not, this is done as a service to you. The reason for this has to do with a fundamental difference between a credit card account and a checking account. With a credit card account, there is no money in the account; every charge is borrowed money. When you get to your credit limit, your credit transactions will start getting declined, but if the bank does for some reason let one get approved, it's not a big deal for anyone; it just means that you owe a little more than your credit limit. Note that (almost) every credit card transaction today is an electronic transaction. A checking account, however, has real money in it. When it is gone, it is gone. When a balance inquiry is done, the bank has no way of knowing how many checks you've written that have not been cashed yet. It is a customer's responsibility to know exactly how much money is available to spend. If you write more checks than you have money for in your account, technically you have committed a crime. Unfortunately, there are too many people now that are not taking the responsibility of calculating their own checking account balance seriously, and bad checks are written all the time. When a bank allows these transactions to be paid even though you don't have enough money in your account, they are preventing a crime from being committed by you. The fee is a finance charge for loaning you the money, but it is also there to encourage you not to spend more than you have. Even if you use a debit card, it is still tied to a checking account, and the bank doesn't know if you have written enough checks to overdraw your account or not. It is still your responsibility to keep track of your own available balance. Every time this happens to you, thank the bank as you pay this fee, and then commit to keeping your own running balance and always knowing how much you have left in your account.",
"title": ""
},
{
"docid": "658d4b5adf3b6766285e8e5966b9fa94",
"text": "So I learned that your employer CAN force you to make employee contributions. However, this source seems to think that the mandatory employee contributions do not count against the 402(g) limit of $18,000.",
"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": "848f96c11dba0694cc5c7388bd4ed21b",
"text": "I am a very light TurboTax user and have expensed a laptop in the past (since it was used exclusively for work) and used the itemized deduction there and has no issues. Just not sure if there was a limit or anything of note to realize ahead of time. Thanks!",
"title": ""
},
{
"docid": "e8034a4cc4698ab17120162a58ee34d8",
"text": "The Bank Secrecy Act of 1970 requires that banks assist the U.S. Gov't in identifying and preventing money laundering. This means they're required to keep records of cash transactions of Negotiable Instruments, and report any such transactions with a daily aggregate limit of a value greater than (or equal to?) $10,000. Because of this, the business which is issuing the money order is also required to record this transaction to report it to the bank, who then holds the records in case FinCEN wants to review the transactions. EDITED: Added clarification on the $10,000 rule",
"title": ""
},
{
"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": "667d32f4e1e3404eca02464fa3df91b6",
"text": "\"Nope, anything is that has the required information is fine. At a minimum you need to have the routing number, account number, amount, \"\"pay to\"\" line and a signature. The only laws are that it can't be written on anything illegal, like human skin, and it has to be portable, not carved on the side of a building ( for example) https://www.theguardian.com/notesandqueries/query/0,5753,-20434,00.html http://www.todayifoundout.com/index.php/2013/12/people-actually-cash-big-novelty-checks-even-possible/ That said, the MICR line and standard sizes will make things eaiser for they bank, but are hardly required. You could write your check on notebook paper so long as it had the right information, and the bank would have to \"\"cash it\"\". Keep in mind that a check is an order to the bank to give your money to a person and nothing more. You could write it out in sentence form. \"\"Give Bill $2 from account 12344221 routing number 123121133111 signed _________\"\" and it would be valid. In practice though, it would be a fight. Mostly the bank would try to urge you to use a standard check, or could hold the funds because it looks odd, till they received the ok from \"\"the other bank\"\". But.... If you rant to fight that fight....\"",
"title": ""
}
] |
fiqa
|
7375cb9dc5717879e046ec07be18a96b
|
Bringing money to UK for investment purposes
|
[
{
"docid": "9ad90a43dbbddabdd2b952044b0237b6",
"text": "Transfers of money to the UK for any purpose are not generally taxed, so you can just transfer it here and invest. Once the money is here, you'll be taxed on the business activity like anyone else - the company will have to pay corporation tax, and depending on your own residency you might have to pay income tax on any distributions from the company.",
"title": ""
}
] |
[
{
"docid": "b528f2b68ccc47dd8e86323231c148b1",
"text": "\"No. This is too much for most individuals, even some small to medium businesses. When you sell that investment, and take the cheque into the foreign bank and wire it back to the USA in US dollars, you will definitely obtain the final value of the investment, converted to US$. 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": "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": "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": "4bc6f91fe7edad1c5665a4051f60710d",
"text": "Can I transfer these money to India in my saving account? What will be tax implication to me? Yes you can. Whether you transfer to India or not does not change your tax obligation. If I understand correctly you are being paid an allowance in UK to cover your expense. If you are saving; then the saving portion is treated as income and you have to self declare this and pay tax according to you tax bracket. Can I transfer these money to my wife's account as a gift? What will be tax implication to me and my wife? There is no tax obligation to your wife. The tax obligation remain same to you as in first point. What if i transfer these money as loan refund to my friend? What will be tax implication for these to me and my friend? If there is proper paper trial to show your friend loaned you a sum at zero percentage and you have paid back; amounts are not to large; then there is no tax obligation to your friend. The tax obligation remains same to you as in point 1.",
"title": ""
},
{
"docid": "3bc01e681551f89397ada2de94172c65",
"text": "\"Is he affiliated with the company charging this fee? If so, 1% is great. For him. You are correct, this is way too high. Whatever tax benefit this account provides is negated over a sufficiently long period of time. you need a different plan, and perhaps, a different friend. I see the ISA is similar to the US Roth account. Post tax money deposited, but growth and withdrawals tax free. (Someone correct, if I mis-read this). Consider - You deposit £10,000. 7.2% growth over 10 years and you'd have £20,000. Not quite, since 1% is taken each year, you have £18,250. Here's what's crazy. When you realize you lost £1750 to fees, it's really 17.5% of the £10,000 your account would have grown absent those fees. In the US, our long term capital gain rate is 15%, so the fees after 10 years more than wipe out the benefit. We are not supposed to recommend investments here, but it's safe to say there are ETFs (baskets of stocks reflecting an index, but trading like an individual stock) that have fees less than .1%. The UK tag is appreciated, but your concern regarding fees is universal. Sorry for the long lecture, but \"\"1%, bad.\"\"\"",
"title": ""
},
{
"docid": "b8bc5ac6fc7eafb3ec03c29d82e651ec",
"text": "\"The London Stock Exchange offers a wealth of exchange traded products whose variety matches those offered in the US. Here is a link to a list of exchange traded products listed on the LSE. The link will take you to the list of Vanguard offerings. To view those offered by other managers, click on the letter choices at the top of the page. For example, to view the iShares offerings, click on \"\"I\"\". In the case of Vanguard, the LSE listed S&P500 ETF is traded under the code VUSA. Similarly, the Vanguard All World ETF trades under the code VWRL. You will need to be patient viewing iShares offerings since there are over ten pages of them, and their description is given by the abbreviation \"\"ISH name\"\". Almost all of these funds are traded in GBP. Some offer both currency hedged and currency unhedged versions. Obviously, with the unhedged version you are taking on additional currency risk, so if you wish to avoid currency risk then choose a currency hedged version. Vanguard does not appear to offer currency hedged products in London while iShares does. Here is a list of iShares currency hedged products. As you can see, the S&P500 currency hedged trades under the code IGUS while the unhedged version trades under the code IUSA. The effects of BREXIT on UK markets and currency are a matter of opinion and difficult to quantify currently. The doom and gloom warnings of some do not appear to have materialised, however the potential for near-term volatility remains so longs as the exit agreement is not formalised. In the long-term, I personally believe that BREXIT will, on balance, be a positive for the UK, but that is just my opinion.\"",
"title": ""
},
{
"docid": "bbdd8fbfdd03c6f00f46a2dbba6e00fd",
"text": "\"Although there are occasional cases where simply moving money between countries results in a tax liability - for example a \"\"non-domiciled\"\" UK resident using the \"\"remittance basis\"\" - this is not the case in your situation. In general it would be extremely rare for non-residents of a country to be taxed on bringing money into that country, as it would be bad for tourism which most countries want to encourage. The requirement to declare large sums of money on entry is primarily so that the authorities can detect money laundering, rather than tax. Note that you will have to pay US tax on any interest you earn on that US bank account.\"",
"title": ""
},
{
"docid": "3a3ace553b8d5770299f9fc3f60b1b86",
"text": "I've done this for many years, and my method has always been to get a bank draft from my Canadian bank and mail it to my UK bank. The bank draft costs $7.50 flat fee and the mail a couple of dollars more. That's obviously quite a lot to pay on $100, so I do this only every six months or so and make the regular payments out of my UK account. It ends up being only a couple of percent in transaction costs, and the exchange rate is the bank rate.",
"title": ""
},
{
"docid": "eafe19575c9337cfa63e45572f1e32ba",
"text": "Huh. It appears it's only currencies in sterling that are fully exempt. https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg12602 Government manuals are more detailed than .gov but still not perfect as it's HMRCs interpretation of legislation and has been overturned in the past. There is also another (old) article here about foreign currency transactions. https://www.taxation.co.uk/articles/2010/10/27/21191/currency-gains I have never come across forex capital gains in practice but I've learnt something today! Something to look out for in the UK as well I guess.",
"title": ""
},
{
"docid": "96be13de93592923809ea5d881ff9459",
"text": "\"The simple answer would be - if you want to take Euros from Germany to Spain as cash and deposit them, you're not breaking any laws, there is nothing to declare to customs (you're still in the EU), it is not \"\"income\"\" so there is nothing to tax, and your bank should be able to receive it without issue (no currency conversion after all). It does however come with the risk of loss/theft en route. So it really depends on how comfortable you are walking around with that much on your person. If you don't want to carry that much around and your banks are imposing unreasonable fees, here's something you could investigate further (I have not tested it myself): Transferwise offers a service that lets people send money to foreign accounts (in different currencies) for a small fee, at mid-market rates. However, they also offer a \"\"request money\"\" feature which allows EUR-EUR transfers (and some other same currency transfers). So perhaps you could use this feature to simply request money from yourself. The requester puts in how much they want to receive. Then they send a generated link to the other party. When clicked, that link sets up a transaction for the requested amount, and sometimes a nominal fee (I created a link for a GBP-GBP transfer and it wanted 1 pound extra, but when I did the same for EUR-EUR it didn't want any extra). I assume you would need two Transferwise accounts, though maybe not? And I'm not sure whether doing this is technically allowed in their terms of service, so you should read those to be sure. The advantage, if this works, is that neither bank sees it as a \"\"transfer\"\". Rather, the originating bank makes a payment to Transferwise, and then Transferwise makes a deposit to the receiving account. So I can't imagine either bank would be able to impose their foreign-bank-transfer fees for the transaction. https://transferwise.com/request-money I have used Transferwise for currency conversions, but not the request money feature, maybe other users could chime in if they have used it.\"",
"title": ""
},
{
"docid": "c3ec6d61e453281b731ba7543c99feb8",
"text": "\"Money in your NRE/NRO account is your property and moving it to the U.K. is not a taxable event in the U.K. or in India. Extra paperwork is needed for transfer from an NRO account to prove that you have indeed paid taxes (or had taxes withheld) on the money in the NRO account to the Indian Government. Search this site for \"\"15CB\"\" and \"\"15CA\"\" for details.\"",
"title": ""
},
{
"docid": "f0b948d3ba6bb0db71fe1c892cbab69d",
"text": "There are restrictions on transferring money OUT OF Egypt (although less tight than previously: http://www.aawsat.net/2014/01/article55326839 ) but there aren't any such restrictions on sending money INTO Egypt. If you go to HSBC's retail UK banking pages and locate the page for International Money Transfers, http://www.hsbc.co.uk/1/2/international-money-transfer you can see that you can transfer up to £50,000 per day into Egypt via online banking, £10,000 via telephone banking, or unlimited by visiting the branch. I'm not sure exactly what question you asked them or exactly what they said to you in response, but it sounds like there was some misunderstanding along the way.",
"title": ""
},
{
"docid": "c75297b62f73553ec352cda7a9fff1b6",
"text": "\"I've done exactly what you say at one of my brokers. With the restriction that I have to deposit the money in the \"\"right\"\" way, and I don't do it too often. The broker is meant to be a trading firm and not a currency exchange house after all. I usually do the exchange the opposite of you, so I do USD -> GBP, but that shouldn't make any difference. I put \"\"right\"\" in quotes not to indicate there is anything illegal going on, but to indicate the broker does put restrictions on transferring out for some forms of deposits. So the key is to not ACH the money in, nor send a check, nor bill pay it, but rather to wire it in. A wire deposit with them has no holds and no time limits on withdrawal locations. My US bank originates a wire, I trade at spot in the opposite direction of you (USD -> GBP), wait 2 days for the trade to settle, then wire the money out to my UK bank. Commissions and fees for this process are low. All told, I pay about $20 USD per xfer and get spot rates, though it does take approx 3 trading days for the whole process (assuming you don't try to wait for a target rate but rather take market rate.)\"",
"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": "88c461ef9c397b80086de1ac45b49a68",
"text": "I'm not sure I understand what you're trying to say, but in general its pretty simple: She goes to the UK bank and requests a wire transfer, providing your details as a recipient. You then go to your bank, fill the necessary forms for the money-laundaring regulations, you probably also need to pay the taxes on the money to the IRS, and then you have it. If you have 1 million dollars (or is it pounds?), I'm sure you can afford spending several hundreds for a tax attorney to make sure your liabilities are reduced to minimum.",
"title": ""
}
] |
fiqa
|
acf22d3210f50ee9213ba1015c38e79c
|
So the vending machine tore my $5 in pieces. What now?
|
[
{
"docid": "05a66ebd46644cb56b19f159f1fc8477",
"text": "According to the U.S. Bureau of Engraving and Printing, if you have clearly more than one-half of the current bill remaining, you should be able to take it to your bank and exchange it. But if for some reason your bank will not take it, you can submit it to Bureau of Engraving and Printing Office of Currency Standards. Question asked on http://www.moneyfactory.gov/faqlibrary.html I have some currency that was damaged. My bank will not exchange it for undamaged currency. What can I do? The Bureau of Engraving and Printing's Office of Currency Standards processes all requests for reimbursement for damaged United States currency. They decide the redemption value of torn or otherwise unfit currency by measuring the portions of the notes submitted. Generally, they reimburse the full face value if clearly more than one-half of the original note remains. Currency fragments measuring less than one-half are not redeemable. Go to the Damaged Money section of our website for additional information and the procedures to redeem mutilated currency. However take notice of this: Any badly soiled, dirty, defaced, disintegrated, limp, torn, worn, out currency note that is CLEARLY MORE than one-half of the original note, and does not require special examination to determine its value. These notes should be exchanged through your local bank.",
"title": ""
},
{
"docid": "5b65085dc8708900f96443a37afc68f3",
"text": "There is usually contact information for the owner of the machine printed somewhere on it. Call that number. If it is in a business you could always try the clerk. Whether you get your money back is up to that person, I suppose.",
"title": ""
}
] |
[
{
"docid": "5bba439b3b8024eadf6e846854484773",
"text": "\"Hypothetically, yes! From the U.S. BEP's guidelines on Damaged Currency: Under regulations issued by the Department of the Treasury, mutilated United States currency may be exchanged at face value if: \"\"50% or less\"\" includes \"\"0%\"\". However, it is probably going to be very difficult to prove that the currency existed, had a specific face value, and was completely destroyed (instead of being replaced with a decoy at the last minute.)\"",
"title": ""
},
{
"docid": "a2d9236c42c8610b4e4068e121289415",
"text": "\"My guess would be that they sell your debt to a collection agency and don't really bother with pressing charges for 500 dollars. A collection agency can do multiple things to hold you accountable for your debt. I hate to bring it to you but it only makes sense that you should try to resolve this debt given that \"\"not being careful enough\"\" is not facebook's responsibility. I also assume they won't let you run any further ads on the same credit card. Edit: What you could possibly do is call facebook and be honest with them, tell them it was an accident and that you can't pay the current amount. Maybe they'll waive the debt or give you a settlement offer.\"",
"title": ""
},
{
"docid": "e1061d441654558c807b81a7fd63974e",
"text": "Typical consumerist bullshit. Post some chat transcript with some flunky as proof of how evil corporation is. Yes, I'm sure Comcast won't sell you the box. But consumerist should be seeking interviews from upper management about this issue. Flunky order-taker is probably just not in the mood to deal with some asshole who wants to buy a box. Next week Consumerist is going to post about how Burger King will not make a Big Mac, and present video of someone placing the order at a drive-through as proof of how horrible Burger King is",
"title": ""
},
{
"docid": "2fa6c77ec9f5ee6e0d41fa3ed8b7b974",
"text": "if the gold is damaged it has to get melted first to measure the gold content. after this process you will get your money",
"title": ""
},
{
"docid": "7a52c1107f1e1d106c521753f6423b73",
"text": "The issue yo have to consider is that under many state laws, you must give a merchant three opportunities to correct an issue before you can sue them, so check with your state before considering that option. Here's a link to the Federal Trade Commission's warranty information page, which may give you some ideas about what your options are. Keep in ind, if you let someone else work on the computer rather than the store you bought it from, you might give the guy a valid claim in court to throw out your lawsuit! Many times, warranties will spell out the conditions under which repair work can or must be done, so make sure you follow every step to the letter in order to preserve your claim. I would strongly suggest that you start creating a paper trail for your claim. Start by writing a very precise and detailed letter to the store owner, with copies of all relevant documents (your receipts, warranty papers, etc.) included. Explain the entire history, including what steps you've taken to date to get him to honor the warranty. Offer him the option to let you take the computer to another shop for repairs at his expense. Then, send the letter by certified mail, return receipt requested, to the store owner so that he can't deny receiving your letter. This is all in order to make the best case you can for your claim just in case you do have to sue him. Do not take the computer to anyone else until or unless he tells you in writing that he is willing to let you do that. You don't want to risk him arguing that the other shop is responsible for the problems now. I hope this helps. Good luck!",
"title": ""
},
{
"docid": "4674f552732fce8fbaa14b20469e8079",
"text": "\">Title leads one to believe that one complaint call cost a company four million bucks. Actually the title is ambiguous; it merely implies that the complain call was *worth* $4 million. You chose to *infer* that the end result was a \"\"cost\"\" rather than a \"\"gain\"\".\"",
"title": ""
},
{
"docid": "0610566afa2a7e30d8b04a99c7e94284",
"text": "Have you tried your local panhandler? She/He will probably accept 50€ in small change.",
"title": ""
},
{
"docid": "775bc1a59adf005fc27e647115a69a72",
"text": "I recently drove past Winslow, Arizona and knocked out the fuel pump in my truck. It cost $500 to repair, and the tow would have been another several hundred if I hadn't had a Good Samaritan's club card, since it was the weekend. 2-3 days would not be acceptable in this sort of scenario. And that was just the fuel pump!",
"title": ""
},
{
"docid": "206fcc394cd42047e135996b36db0866",
"text": "\"The service processors are providing is absorbing the risk. The flow goes, roughly (and I say roughly because it's a complicated process): 1. You swipe/insert your card at Bob's House of Eatery and get charged $10 for a bucket of ramen or something. 2. The device you swipe your card in, (\"\"a terminal\"\") encodes the card number, amount, and some other transaction details and contacts a \"\"Payment Gateway\"\". 3. The gateway decodes the blob of data, and is responsible for determining the issuing financial institution (\"\"Chase\"\", \"\"US Bank\"\", etc.). 4. The gateway contacts the above and asks, \"\"Can card # 555.. charge $10?\"\" 5. The gateway also sends this answer to the processor. 5. The processor _immediately_ proxies that yes/no back to the merchant's terminal. 6. The processor, having a transaction ID, and a yes/no, sends the response to the merchant's systems so your receipt can be printed or order processed, and so on. 7. Meanwhile, the processor has a transaction ID and is busy figuring out things like interchange fees. The amount depends on a whole host of things, and almost everyone involved in the process wants their cut -- the bank, the gateway, the processor, and it all depends on the type of card, customer, rewards, and so on. 8. At the end of the day, week, whatever, the processor collects money from the issuing financial institution and is responsible for giving the right amount -- less fees -- to the merchant. The processor here also absorbs the risk and costs for things like chargebacks, as almost everyone in that chain (gateway, issuing bank) want their pound of flesh for a chargeback, and often the processor doesn't pass that full cost on to the merchant and instead does some risk analysis to determine if they think this merchant is going to be okay to do business with. That's what you're paying for.\"",
"title": ""
},
{
"docid": "b5825b7937a3c46f4dad210d283bc7aa",
"text": "Also see who has the authority to delete bills or items on bills. This was a huge scam with some servers I've worked with. If you can delete an entire bill that was paid in cash then that's money in your pocket.",
"title": ""
},
{
"docid": "8fd388a6a7e3c32d47bb6bbb830a5d9f",
"text": "Wait I'm confused maybe you can explain I'm in the federal reserve and I buy a hundred pounds of coin material for 180 dollars. I put that material into a magic penny machine and get a hundred pounds of pennies. My hundred pounds of pennies will now have a value of 100 dollars. I had a hundred pounds of mass worth $180 and now have a hundred pounds of mass worth $100. Where did the 80 dollars go?",
"title": ""
},
{
"docid": "563fd3982eafab1f53110dc32176382b",
"text": "\"That was a little longer than five minutes, more like twenty. Fire isn't really a \"\"product\"\". Wireless capabilities - be more specific. Theft implies that you didn't implicit mean for it to be taken. The fact that you live here, and are a citizen relays *implicit* concession to *give* that money to the government. So, let's hear it - what is this \"\"better way to collect revenue\"\"?\"",
"title": ""
},
{
"docid": "5d4a4277bfad0fa36c553c5b3795370a",
"text": "Just wanted to chip in on the card reader thing. If they threaten to call the cops, call their bluff; worst case you'll spend the time waiting for a copy to show up that would've been wasted driving around looking for an ATM. Also, make sure you call the company after the fact and let them know about it (as well as identifying details about when and what cab # you were in) -- some companies don't care but the ones I've had to call about generally take that seriously (i.e. management calling me back later to get as much identifying info as possible to find the drivers responsible).",
"title": ""
},
{
"docid": "f99079f68174aba1de808f5c13750a97",
"text": "\"Do you know anyone in the US, still? If so, ask them to close it for you. $2.38 is well within the \"\"if anybody I knew asked me to I would\"\" range, and probably is for anyone you know well. Offer to send them money via a wire transfer (or Western Union or whatever), but odds are if it's a friend or coworker they won't care about $2.\"",
"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": ""
}
] |
fiqa
|
deb06795f770d24b02a51929fdc8f5e5
|
Are there extra fees for a PayPal Premier account?
|
[
{
"docid": "2bd9795acd7542e370e7d84be0ecdaaa",
"text": "If you are using paypal to sell items online, you need a Premier (or better) account rather than personal. Paypal states: Our fees are the same for Personal, Premier, and Business accounts. [...] If you use your PayPal account to request money from someone, you'll be charged a fee when you receive the payment.",
"title": ""
},
{
"docid": "8c924fc9215246f4330705654fe1c93b",
"text": "\"Summary: the fees used to differ but no longer do. Fees are the same. If you have a personal account, feel free to upgrade it to premier to get access to more features. Longer answer: the two account types USED to differ but that changed a few years ago (maybe circa 2011?). PayPal wants person-to-person payments to be free (except where they must pass along credit card charges or else they would loose their shirt) but wants to charge merchants for receiving payments. Originally PayPal required merchants to have premier (or business) accounts, and charged fees for payments made to those account types. Personal accounts had significant limitations on receiving payments, but did not pay fees upon receiving payments. Eventually PayPal decoupled the question of \"\"is this a person-to-person payment or a payment to a merchant for goods and services?\"\" from the paypal account type. So now the same account can receive both a p2p payment (e.g. splitting lunch costs), on which it will NOT pay fees, and can receive a payment for goods or services e.g. from a web checkout, on which it WILL pay fees. Regardless of the account type.\"",
"title": ""
}
] |
[
{
"docid": "645e83e8696b475e9bdfbcbe6a1891af",
"text": "No, because of regulations Paypal is different in India to most countries and you cannot actually spend paypal balance. You will need to verify your PAN number and connect a bank account, although this should be very quick",
"title": ""
},
{
"docid": "6f3849cc6e6e761b6cb46319f2914a9e",
"text": "\"Are you in the US? One thing you can do is prepay taxes at a rate of a 1.8% fee. Much lower than paypal. I would do this on what is \"\"left over\"\". Here are somethings that I would tend to do in your case: Those are some of the things I would be looking at. Do you care to share the details of your offer?\"",
"title": ""
},
{
"docid": "f1b7f7147ecf4016b8209d50d31f589d",
"text": "I have sold a few items on ebay. The biggest issue I have with ebay is all of the fees. I am not sure how much has changed recently, but when I was selling stuff it felt like ebay and paypal took a large chunk of the money. I could be wrong, but it seemed like they were getting around 35% or more of my 'profits'. Of course, you then have the shipping fees on top of that, which will run a few bucks on common items. For items that sell for around $20 on ebay, I felt like I was ending up with about $5 in my pocket. I have used Amazon to sell used books, though I haven't done that for about a year or so. They had no fees for listing items, and the item remains listed for about 90 days. If it sells, they process the payment and can deposit it into your bank account or provide an Amazon gift certificate. I forget Amazon's fees, but I remember that it didn't seem to be as frustrating as the ebay/paypal price structure.",
"title": ""
},
{
"docid": "9b0c3300c1be8521de497e3994688dd9",
"text": "\"PayPal has a very generous buyer protection program. That means that the buyer can dispute receiving the goods and get their money back fairly easily (compared to credit cards). For this reason Craigslist and other sites recommend not accepting PayPal payments. I know that many transactions go through them flawlessly. But unless I really trust someone, PayPal would not be an option for me unless it was the money transfer (different rules; not as easy to get the money back). However this may be breaking PayPal Terms of Service so I would read them carefully before I went this route. There have been reports of PayPal putting extended holds on funds and effectively seizing the money by refusing to release the funds. I have never had this happen (though I did have a sale on eBay reversed though the item was never returned) but there are many reports of it on the Internet. As far as the BoA option I would contact them and see what they recommend. I would find out what their policies are on reversing the transfers and on providing your account number. They may have a special deposit-only account number you could provide the buyers. But I would want to learn as much about the system as I could before I started using it. The Internet has turned the old adage of \"\"buyer beware\"\" into \"\"seller beware\"\". There are many schemes that con artists have come up with to defraud unsuspecting sellers. I received several offers from people wanting to pay me with a cashiers check for a few items I recently sold on Craigslist. It is scary how prevalent these fraudsters have become.\"",
"title": ""
},
{
"docid": "58f356edc765539400f4a3ea5ef4d3b4",
"text": "Yes. I have a US based website that accepts payments via PayPal and can confirm we have many customers from India. Here is a list of countries PayPal supports. Note typically there are some additional fees associated with currency conversion.",
"title": ""
},
{
"docid": "29cf5583c86e0216a19eb093e877ba35",
"text": "Whenever you pay or withdraw some fund from your account, paypal takes approx 3% of the current currency value along with the fees. i.e. If you are paying/withdraw 100 unit of US Dollars to British pounds and if the current convertion rate is 1$=0.82GBP, then consider reducing 3% of the actual currency rate. So, the approximate magnitude will be 0.82*97% (100-3=97) = 0.7954. So, 1$=0.7954GBP. This formula will not give you 100% accurate value but will help of course. Captain",
"title": ""
},
{
"docid": "0f38fae979b904d5f9b24000f51a96e5",
"text": "Yes, PayPal allows you to add a donate button to your website. You're responsible for any tax record-keeping related to income from the donate button.",
"title": ""
},
{
"docid": "0f7cc2ac0ed54ac2c5192299ce554b1a",
"text": "I have a PayPal account that I have linked to my bank account. My PayPal balance is always $0. When I make a purchase with PayPal, PayPal will automatically withdraw the funds from my bank account to make the purchase. PayPal does not ask my permission for each purchase. I probably gave them permission to do this when I linked my bank account. Or perhaps the PayPal purchase process includes this permission. I don't read the text closely. Or I should add, that I probably read it at one point, but since I do it on a regular basis, I don't read it now, and I don't recall what is on the checkout page.",
"title": ""
},
{
"docid": "9e75314738a131060b3b11bb758d4ac7",
"text": "Like Bluetie Grasper have said. Can I create a PayPal account and receive €200 (or a similar amount) without adding a bank account, credit card, or anything but my email address? The answer is No. You can transfer the money to your PayPal account but until you verify it with your personal information with at least a credit card or mostly likely a bank account, PayPal will hold those funds until otherwise. Can I then use that money to buy on Amazon, still without adding anything but my email address? If not, can I buy gift cards and use those on Amazon? Amazon does not accept PayPal.",
"title": ""
},
{
"docid": "3b2575d1033e052c22614deb65dd7b7e",
"text": "\"Paypal linked with my bank account. 1.Can I use my Saving bank account to receive payments from my clients? Or is it necessary to open a current account? Yes you can get funds into your savings account. However it is advisable to keep a seperate account as it would help with your IT Returns. 2.I will be paying a certain % as commission on every sales to a couple of sales guys (who are not my employees but only working on commission). Can I show this as an expense in my IT returns? As you are earning as freelancer, you are eligible for certain deductions like Phone calls, Laptop, other hardware, payments to partners. It is important that you maintain a book of records. An accountant for a small fee of Rs 5 K should be able to help you. In the Returns you have to show Net income after all these deductions, there is no place to enter expenses. 3.Since I will be receiving all the payments in Euros so am I falling under a category of \"\"Exporter of services\"\"? The work you are doing can be Free Lancing. 4.Do I need an Import Export Code (IEC) for smoothly running this small business? You can run this without one as Free lancing. IEC would be when you grow big and are looking for various benefits under tax and pay different taxes and are incorporated as a company.\"",
"title": ""
},
{
"docid": "a33ec7445a21ab94474f38711807a86a",
"text": "If you set up two Paypal accounts (one linked to your UK bank account and one to your US bank account and get them both properly verified) you should be able to transfer the money for free as far as I know. You would have to fund the transfer directly from your UK bank account (not via a credit card).",
"title": ""
},
{
"docid": "eb9b830ba43c5a42c6f41b9e1714634b",
"text": "PayPal will be contacting you shortly, I'm sure. You'll see the reversal on their site in a few days as well as a fee from their end I bet.",
"title": ""
},
{
"docid": "f2d826274e02b2692ea231ea058cbc7d",
"text": "\"Yes, you can create a PayPal business account without having formalized a business with government filings and whatnot. At its simplest terms, \"\"having a business\"\" is simply \"\"doing business as\"\" (D/B/A) a trade name. You can use the address of a Private Mail Box such as those provided at the UPS Store. Ask any kid with a lemonade stand or a box of Girl Scout cookies - you only need to engage in government formalities like registering an LLC or getting a tax EIN when you cross certain thresholds of activity, and paying for things is generally not it. Also, some of businesses, for some relationships, will require the business formalities like an EIN, which in turn will require creating a trade name and registering it with the state. For instance if you set up a traditional credit card merchant account, they'll probably want that.\"",
"title": ""
},
{
"docid": "e651432466f0d37eb0787dcba0048ec2",
"text": "There is (at least) one service that allows you to convert USD, GBP and EUR at the interbank spot rate, and make purchases using a prepaid MasterCard in many more currencies (also at the interbank rate). They currently don't charge any fees (as of September 2015). You could use your US prepaid card to fund your account with Revolut and then spend them in your local currency (HRK?) without fees (you can check the current USD/HRK rate with their currency calculator); you can also withdraw to non-EUR SEPA-enabled bank accounts, but then your bank would charge you for the necessary currency conversion (both by fees and their exchange rate). If you have a bank account in EUR, you could alternatively convert your USD balance to EUR and then withdraw that to your EUR bank account. If your US prepaid card has a corresponding bank account which can be used for ACH direct debit or domestic wire transfers (ask the issuer if you are unsure), TransferWise or a similar service might also be an option; they allow you to fund a transaction using one of those methods and then credit an account in",
"title": ""
},
{
"docid": "abccce67ea544a8d046a838a129ac919",
"text": "\"I haven't seen anything specifically about how PayPal operates, but my guess is that they maintain relationships with banks in many countries via affiliates, and they settle the money transfers internally within the PayPal system. You basically have two types of bank transfers (there are others as well that I'm not getting into): I think PayPal is a hybrid -- they send and receive money using drafts to keep costs down, and manage the international stuff by operating a proprietary network. So if you send money from Indonesia to the US, you pay \"\"PayPal Indonesia\"\", who then tells \"\"PayPal USA\"\" to issue funds to your recipient. So they are cheaper than a wire, faster than a check, but limited in terms of transaction size and some other factors.\"",
"title": ""
}
] |
fiqa
|
02cf99ad5cfd52f53306f0fdd4127e8e
|
Why do companies have a fiscal year different from the calendar year?
|
[
{
"docid": "e7e27751dba88a72cd630751ffa52621",
"text": "I know some companies or entities have large incomes or expenses at certain times of the year, and like to close their books after these large events. For example where I work, the primary seasonal income comes after summer, so our fiscal year ends at the last days of October. This gives the accountants enough time to collect all the funds, reconcile whatever they have to, pay off whatever they have to and get working on a budget for the next year sooner than a calendar year would. There also might be tax reasons. To get all of your income at the beginning of your fiscal year, even if that is in the middle of the calendar year would allow a company to plan large deductible investments with more certainty. I am not to sure of the tax reasons.",
"title": ""
},
{
"docid": "af08a3158906d68c230fb7a3822377d6",
"text": "I can think of a few good reasons: A company, especially public, usually wants their fourth-quarter earnings to be the strongest of the year. That ends each fiscal year on a high note for the company and its investors, which helps public sentiment and boosts stock prices. So, travel agencies and airlines usually like ending their year in October or March, in the lull between the summer and winter travel seasons with a large amount of that revenue falling within the company's fiscal Q4. Oil companies sometimes do the same because fuel prices are seasonal for much the same reasons. December is a really bad month to try to close out an entire year's accounting books. Accountants and execs are on vacation for large parts of the month, most retail stores are flooded with revenue (and then contra-revenue as items are returned) that takes time to account at the store level and then filter up to the corporate office, etc etc. It also doesn't tell the whole story for most retail outfits; December sales are usually inflated by purchases that are then returned in January after all the hullaballoo. As a result, a fiscal year end in January or even February keeps the entire season's revenues and expenses in one fiscal year.",
"title": ""
},
{
"docid": "36a2251f0e3038728874ef6f3cf0ad31",
"text": "My grandfather owned a small business, and I asked him that very question. His answer was that year-end closeout is very time-consuming, both before and after EOY (end of year), and that they didn't want to do all that around Christmas and New Year.",
"title": ""
},
{
"docid": "c7925c388a4ae383d3f58c8a67ecb5e9",
"text": "Maybe it's just because of the foundation date. If I start a company on August 1st, I would like its FY starts on that date too, in order to track my first whole year. Would be quite useless to finish my year on December, after just five months. I want to have data of my first year after a twelve months activity.",
"title": ""
},
{
"docid": "c522e1e5a10c5380d40f06148f473874",
"text": "In addition to the company-specific annual business cycle reasons and company-specific historical reasons mentioned in the other answers, there is another reason. Accounting firms tend to be very busy during January (and February and March) when most companies are closing and auditing their calendar-year books. If a company chooses its fiscal year to end at a different time of year, the accounting firms are more available, and the auditing costs might be lower.",
"title": ""
}
] |
[
{
"docid": "1679f0d2d26beadcd18ecfb9aa29f15e",
"text": "What makes you think corporations don't have to pay sales taxes or property taxes (or excise taxes, or environmental impact fees or fuel taxes or any of a million other taxes that we all end up paying) even if they lose money that year?",
"title": ""
},
{
"docid": "77f11f50bbd997629b688c1747b28103",
"text": "The reason is in your own question. The answer is simple. They use that code to tax the product otherwise it would just be out of pocket expenses.",
"title": ""
},
{
"docid": "505fb9fe950bb7b81cfa2666c58de8e0",
"text": "Okay, but the point is that the models are the calendar-meant for long terms. They're not designed to capture short term trends. You're pointing to a calendar and telling us it's wrong because it won't tell you if it's 1:30 or 4pm.",
"title": ""
},
{
"docid": "86e04ee7c259645ffe49a8ddb61d46d2",
"text": "For an international company, being in a different timezone seems like an advantage. The east coast is close enough to have a large overlap between normal business hours with the west coast, but expands the amount of time that they can cover with HQ workers working normal hours.",
"title": ""
},
{
"docid": "e3d56be34cfc8de0abbc03ac42ee8256",
"text": "As with most things accounting/tax related it depends. In general though yes. As an example, if the client were to buy equipment on credit before fiscal year end, in lets say December, but did not pay until the next year started in January, then under cash basis they would not have the purchase accounted for until they made payment. That means they could not claim any deductions from the purchase. Under accrual, the purchase would have been put on the books in December, when the equipment was installed, and they would have been able to claim any deductions.",
"title": ""
},
{
"docid": "7774c2bceeeac395e113b4bb31b43ee7",
"text": "Many of the custodians (ie. Schwab) file for an extension on 1099s. They file for an extension as many of their accounts have positions with foreign income which creates tax reporting issues. If they did not file for extension they would have to send out 1099s at the end of January and then send out corrected forms. Obviously sending out one 1099 is cheaper and less confusing to all. Hope that helps,",
"title": ""
},
{
"docid": "b85a80a0757c91175a58fc2bf64fda5b",
"text": "In many countries, giving something free to the employee is considered a taxable income equivalent, and taxes have to be paid on it. As it cannot be assigned to specific employees, the company pays a flat tax on it, so it actually costs the company more. Also, not all employees value it equally, or consider it as a part of their income, so reducing the salary accordingly would not be considered ok by many employees. As a result, the company can only do it as an additional offer, which is too expensive for small businesses.",
"title": ""
},
{
"docid": "29834763126125feae688d2a6584967f",
"text": "Your question is missing information. The most probable reason is that the company made a split or a dividend paid in stock and that you might be confusing your historical price (which is relevant for tax purposes) with your actual market price. It is VERY important to understand this concepts before trading stocks.",
"title": ""
},
{
"docid": "7ef47ed887fa8f884430c6b071e1e720",
"text": "This answer assumes you're asking about how to handle this issue in the USA. I generally downvote questions that ask about a tax/legal issue and don't bother providing the jurisdiction. In my opinion it is extremely rude. Seeing that you applied for an LLC, I think that you somehow consider it as a relevant piece of information. You also attribute some importance to the EIN which has nothing to do with your question. I'm going to filter out that noise. As an individual/sole-proprietor (whether under LLC or not), you cannot use fiscal years, only calendar years. It doesn't matter if you decide to have your LLC taxed as S-Corp as well, still calendar year. Only C-Corp can have a fiscal year, and you probably don't want to become a C-Corp. So the year ends on December 31, and whether accrual or cash - you can only deduct expenses you incurred until then. Also, you must declare the income you got until then, which in your case will be the full amount of funding - again regardless of whether you decided to be cash-based or accrual based. So the main thing you need to do is to talk to a licensed tax adviser (EA/CPA licensed in your state) and learn about the tax law relevant to your business and its implications on your actions. There may be some ways to make it work better, and there are some ways in which you can screw yourself up completely in your scenario, so do get a professional advice.",
"title": ""
},
{
"docid": "973cb5be67f212b096e1480696eac5df",
"text": "Fuck managerial accounting to death. Anywho, I'm not sure what they mean by the variance being higher or lower in the budget. Variance in principle is the discrepancy from a budget and actual. I'll try to answer this from what I can see. The budget variance in this problem is unfavorable for Busy Community Support, mostly caused by a significant underestimating of your salaries expense in the budget.",
"title": ""
},
{
"docid": "e5048e4d9632df7eaba7dfc268e86f37",
"text": "\"Hi, accounting major here! A lot of people mentioned both tax advantages and \"\"cheap\"\" money (money you can borrow at a low interest rate). Another reason businesses do this is to reward investors. Generally people with stock in a company want to see some of its operations financed with debt, instead of all of it financed from investors' money or profit. This way the company can grow more and still pay better dividends to its investors. However, you don't want too much debt either. It's a balance, and a way to see how much debt vs equity a company has is called a leverage ratio (leverage=debt). Hope this helps!\"",
"title": ""
},
{
"docid": "01dc0a97e9737837fc1a151aacdca3fe",
"text": "If the period is consistent for company X, but occurs in a different month as Company Y, it might be linked to the release of their annual report, or the payment of their annual dividend. Companies don't have to end their fiscal year near the end of the Calendar year, therefore these end of year events could occur in any month. The annual report could cause investors to react to the hard numbers of the report compared to what wall street experts have been predicting. The payment of an annual dividend will also cause a direct drop in the price of the stock when the payment is made. There will also be some movement in prices as the payment date approaches.",
"title": ""
},
{
"docid": "f67397e8aa4882f62733d4d80aaabdf3",
"text": "They need to spread the work for all customers over the whole month, and they don't work on weekends. Combine the two, and the rule becomes clear - if months have minimum of N working days, 1/N of all customers gets set on each day. You seem to be on day 5: If the month starts with a Monday, the fifth working day is the 5. (Friday); if there is a Sat or Sun in between, it will be the 6th, and if there is both a Sat and a Sun in there, it will be the 7th. However, the statement itself is not very important at all. It is just the day where they print it on paper (or even only on a PDF). You can see your bank account activity every day 24/7 by checking online, and nothing keeps you from printing it on every 1st of the month if you want (or every day, or whenever you prefer).",
"title": ""
},
{
"docid": "18fed7389ec685027120ed1f6cef8f3c",
"text": "that means fiscal year 2015,Most internal company in China or India have different fiscal year to estimate financial state when it run to the end of year",
"title": ""
},
{
"docid": "3eb06ff7ab226eddd36864af44dba95c",
"text": "\"They could have printed 5.0T or 10.0T or 1000 quadrillion. It doesnt make any difference for the steps a Central Bank takes. They choose a figure based on balancing inflation vs interest rates. The legal powers Central Banks or IMF have do vary (i.e. to perform quantitative easing, purchasing company bonds, purchasing retail bank bonds) but they all follow that principle. Their tools are very limited and theyre legally obligated to seek certain targets like \"\"inflation between 0 to 2%\"\"\"",
"title": ""
}
] |
fiqa
|
6d160170be2a1ee94b27ffeff97847dd
|
Can I account for start-up costs that occur before incorporation?
|
[
{
"docid": "9b5c31b8a5d6d61ea5cac6fb9c2dda21",
"text": "Yes you can. You should talk to your tax advisor re the specific expenditures that can be accounted as startup-costs (legal fees are a good candidate, for example). If they add up to significant amounts (>$5K), you'll have to capitalize them over a certain period of time, and deduct from your business' income. This is not a tax advice.:-)",
"title": ""
}
] |
[
{
"docid": "2c0c0bbde5c283c2c693995d9bd7469b",
"text": "For months prior to going public a company has to file financial documents with the SEC. These are available to the public at www.sec.gov on their Edgar database. For instance, Eagleline is listed as potentially IPOing next week. You can find out all the details of any IPO including correspondence between the company and the SEC on Edgar. Here's the link for Eagleline (disclaimer, I have not investigated this company. It is an example only) https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001675776&owner=exclude&count=40 The most important, complex, and thorough document is the initial registration statement, usually an S-1, and subsequent amendments that occur as a result of new information or SEC questions. You can often get insight into a new public company by looking at the changes that have occurred in amendments since their initial filings. I highly advise people starting out to first look at the filings of companies they work for or know the industry intimately. This will help you to better understand the filings from companies you may not be so familiar with. A word of caution. Markets and company filings are followed by very large numbers of smart people experienced in each business area so don't assume there is fast and easy money to be made. Still, you will be a bit ahead if you learn to read and understand the filings public companies are required to make.",
"title": ""
},
{
"docid": "362888dad7a489b2fecb115aab213605",
"text": "In this case not only that you must register in California (either as domestic, or as foreign if you decided to form elsewhere), you'll also be on the hook for back-taxes if you didn't do it from the start. FTB is notorious for going after out-of-state LLCs that Californians open in other States trying to avoid the $800 fee.",
"title": ""
},
{
"docid": "bccaaf685716ac4d462b853f64b2993d",
"text": "I have a Albertan corporation and my accountant set up my shares and options for free. 1. Get a NUANS repot. 2. Go to a registry office and get the incorporation paperwork 3. Get an accountant to help you fill out that paperwork for free (they assume you will do your accounting with them after the fact) 4. Go back to a registry office and register the corporation 5. Go have a beer you' re new company 6. go get a bank account. 7. Get to work",
"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": "679eb828bed561f59847c1dff5f643c1",
"text": "No, as in just coming up start up. I'm sure that's the case but then again there must be some basic software that can make my life easier right? Like accounting softwares, etc that do not depend on the industry the startup is working in. Any?",
"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": "06edc42d5a3851e7bfe9f66ff48e7c06",
"text": "In your journal entry, debit the appropriate expense account (office supplies, etc) and credit your equity account. The equity account should be called something like Partner Investments or something like that. You can choose to enter these all separately, on the specific dates listed, or as one entry. Some people choose to summarize the expenses they've paid personally and only enter one entry per month or so, to minimize data entry time and also because the end effect is the same. Of course, the above is assuming you are considering these purchases to be investments in the company, and not expecting the company to repay you. If you are expecting repayment, you could enter a bill instead, or credit an account like 'Loan from Shareholder' rather than the equity account.",
"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": "79bd1f7fa03d24bd2c00af21a84a8ba9",
"text": "isn't the answer in the question? it says the company starts officially NEXT year, yet it is asking for the net present value...i.e what that project is worth today. it could be that funds for that particular project may not be necessary for another year, but there may be other projects to evaluate against today.",
"title": ""
},
{
"docid": "b11c1807668b0b0b3630b0e41f2d1cd6",
"text": "You won't be able to avoid the $800 fee. CA FTB has a very specific example, which is identical to your situation (except that they use NV instead of AZ), to show that the LLC has liability in California. State of formation is of no matter, you'll just be liable for fees in that state in addition to the CA fees. This is in fact a very common situation (that's why they have this as an example to begin with). See CA FTB 568 booklet. The example is on page 14. I suggest forming the LLC in AZ/CA and registering it as a foreign entity in the other state (AZ if formed in CA, the better option IMHO, or CA if formed in AZ). You'll have tax liability in both the states, AZ taxes can be credited towards the CA taxes. Instead of forming LLC, you can cover your potential liability with sufficient insurance coverage.",
"title": ""
},
{
"docid": "6f1d7df074289cdd5ac0a83608620c90",
"text": "I suggest to start charging slightly more than needed to cover expenses. All you need is to show profit. It doesn't have to be significant - a couple of hundred of dollars of consistent yearly profit should suffice to show a profitable business. Then you can deduct on Schedule C all the related expenses. The caveat is that the profit (after the deduction of the expenses will be a bit smaller) will be subject to not only income tax but also the self-employment tax. But at least you'll pay tax on profit that is not entirely phantom. I remember suggesting you getting a professional consultation on this matter a while ago. You should really do that - talk to a EA/CPA licensed in your state, it may be well worth the $100-200 fee they'll charge for the consultation (if at all...).",
"title": ""
},
{
"docid": "3f362f2a26d64930517bf1086d30cb0e",
"text": "\"You will need to set up accounts in your chart of accounts for each of the partners. These are equity accounts where you can track your contributions, share of the profits and losses, and distributions. You're going to have to go back into the beginning years to get this right. I'm not sure what you mean by a \"\"Built-in function\"\". All the accounting software I'm familiar with requires data entry of some kind. You need to post your contributions and distributions to the correct accounts, and close properly at year end. You were indeed legally considered a partnership as soon as you started a for-profit business venture together. It's a bug in the legal system that a written partnership agreement is not necessarily required - you can form a partnership unknowingly. (BTW, a partnership actually is pretty far off from a sole proprietorship, legally and taxwise - the change from one person to two is major. It's the change from two to three or four or more that's incremental ;) I know you said you didn't want to consult a professional, but I have to say that I think it's worth the money to get your books set up by someone who has experience and can show you how to do it. And get a separate bank account for the partnership, if you haven't done so already. And check with your state to see if there are any requirements regarding partnerships. Hope this helps, 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": "da824642900236cf08575585381332b9",
"text": "As it stands equity contracts in startups are by default structured differently. The standard equity is shares or convertible notes. Having equity that's structured in the way you propose is a bad idea for both sides. VC don't like equity that's not done with standard equity contracts. If the lawyer of the VC has to review your equity document and understand how the exact terms work that makes it more complicated to invest money into the startup. On your end it might not be fair because a company doesn't need to make any income to be successful. Various companies manage to reduce their tax burden to next to nothing by clever accounting that results in having no taxable income. Uber brought the uber.com domain name with 2% equity at the beginning, so there are certainly deals that get made with equity. There are also other kinds of deals where domain names don't get sold for a one-time payment but with regular payment for 8 years where the domain names goes back to the seller if the company folds or otherwise doesn't want to pay anyone.",
"title": ""
},
{
"docid": "ef34014ce4364ee818940477c94f3703",
"text": "Specifically I was wondering, how can the founder determine an appropriate valuation and distribution of shares; ie- the amount of equity to make available for public vs how much to reserve for him/herself. This is an art more than science. If markets believe it to be worth x; one will get. This is not a direct correlation of the revenue a start up makes. It is more an estimated revenue it would make in some point in time in future. There are investment firms that can size up the opportunity and advise; however it is based on their experience and may not always be true reflection of value.",
"title": ""
},
{
"docid": "4011b172fce1d406592088308cdc435c",
"text": "\"Umm, it depends on the transaction but a lot of transactions get done on a \"\"cash free / debt free\"\" basis. Meaning, I'll pay you 5x EBITDA (or $500) and you deliver the company without any cash or debt subject to a \"\"standard\"\" amount of working capital. Ultimately, you're confusing enterprise value and equity value. The two companies may have different purchase prices (equity values) but they should have very similar enterprise values (given the hypothetical scenario you put together).\"",
"title": ""
}
] |
fiqa
|
4a1f8c2ec81ae1c16b4b200b3ee2b163
|
Landlord living in rental unit - tax implications?
|
[
{
"docid": "33605c894c6520ec288ce3cfc68ac6f0",
"text": "Does allowing family to stay at the rental jeopardize my depreciation? No, accumulated depreciation that hasn't been deducted reduces your basis in the event of sale. That doesn't go anywhere. Accumulating more may not be allowed though. If the property is no longer rental (i.e.: personal use, your family member lives there for free), you cannot claim expenses or depreciation on it. If you still rent it out to your family member, but not at the fair market value, then you can only claim expenses up to the rental income. I.e.: you can only depreciate up to the extent the depreciation (after all the expenses) not being over the income generated. You cannot generate losses in such case, even if disallowed. If you rent to your family member at the market rate (make sure it is properly documented), then the family relationship really doesn't matter. You continue accumulating expenses as usual.",
"title": ""
},
{
"docid": "139009f4b1c2465ceb61e8067ebb07bf",
"text": "A tenant is a tenant regardless of your relationship to them, and as long as the property is classified as an investment property, you can claim depreciation and regular business losses just as you would on any property with any tenant.",
"title": ""
}
] |
[
{
"docid": "cdcc1945e452a407a5a10f93af0f9e3e",
"text": "One of my previous landlords did the same thing. He was politically conservative and outspoken enough to admonish his renters that if the Democrat candidate won, taxes would likely go up, and he would pass the additional cost from his higher taxes onto them in the form of rent increases.",
"title": ""
},
{
"docid": "d7c29e9c4ebb6e172ec8547493df051c",
"text": "\"If you pay her rent, how do you differ from a tenant in the eyes of the law? I ask this to show that you are in a business relationship first and foremost. If you don't want to file jointly, there is nothing compelling about your situation to force it. (Grant you, in most countries, there is a benefit to filing jointly) but here, I would argue it would be difficult to make the case. There are, to the best of my knowledge, no laws barring opposite sex landlord-tenant rental situations. Furthermore, there are no laws barring romantic relationships amongst landlords and tenants. Indeed, you would need to prove your relationship in some fashion for it to even be considered. In establishing a date of separation from my soon-to-be-ex-wife, for example, I merely needed to prove that we were not \"\"presenting ourselves as husband and wife.\"\" Once I showed that we didn't sit together at church and that she was attending parties I wasn't, that was sufficient. Proving you are in a relationship is actually a lot harder than proving you're not.\"",
"title": ""
},
{
"docid": "90b272b16d3db982961db359ed6ecedc",
"text": "Very simple. If it wasn't rented, it's deductible as a schedule A home mortgage interest. If it was rented, you go into Schedule E land, still a deduction along with any/every expense incurred.",
"title": ""
},
{
"docid": "05b5668a792f490a1eda8dc402f8125e",
"text": "\"DirectGov has a good overview here: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017814 and answers to your specific questions here: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_10013435 In short, you do need to declare the rental income on your tax return and will need to pay tax on it (and note that only the mortgage interest (not the full repayment) is deductible as an \"\"allowable expense\"\", see the full list of what is deductible here: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_10014027 ).\"",
"title": ""
},
{
"docid": "61da8e813aced4c43816d146b9f072e6",
"text": "does your sister agree to sell her share of the house? Will you live in the house or rent it out? In Australia if you rent out the house you can claim on expenses such as interest deductions, advertising cost, advertising to get tenants in, maintenance cost, water & sewerage supply charge, Land tax, stamp duty, council rates. A percentage of these expenses can be used to reduce your gross income and therefore reduces your tax liability (called negative gearing). Not sure how other countries handle investment properties. If you plan to live in the house and not rent it out and you have spare cash to buy outright then do so. You don't want to be in debt to the bank",
"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": "6474f9e233c80bd3d4a1c35ff0746bcd",
"text": "Your question is best asked of a tax expert, not random people on the internet. Such an expert will help you ask the right questions. For example you did not point out the country or state in which you live. That matters. First point is that you will not pay tax on 60K, its expensive to transact real estate, so your net proceeds will be closer to 40K. Also you can probably the deduct the costs of improvements. You implied that you really like this rental property. If that is the case, why would you sell...ever? This home could be a central part of your financial independence plan. So keep it until you die. IIRC when it passes to your heirs, a new cost basis is formed thereby not passing the tax burden onto them. (Assuming the property is located in the US.)",
"title": ""
},
{
"docid": "9760eb01c9865d9e976ff2bb5d0ca757",
"text": "I'm not an attorney, nor am I a licensed tax adviser. I suggest you talk to these two types of professionals. From my limited knowledge, without proper documentation/organization, I can't see how the IRS/State will not consider this as a rent payment. The mortgage responsibility is of the person signing the mortgage contract, and you're under no obligation to pay that person anything. Had you not lived at the property, you might argue that it was a gift (although I'm not sure if it would stand), but since you do live in the property - it is quite obviously a rent payment. Putting your name on the deed may mitigate this slightly but I'm not sure how much - since you're still not obligated to pay the mortgage. However this is probably moot since it is unlikely for a bank to give a mortgage on a property to person A when it is also owned by a person B, without that person B being side to the mortgage contract.",
"title": ""
},
{
"docid": "6c7494f65e738ea5645c9c5d44b7a4fd",
"text": "As DJClayworth said, be very careful with this one! The property is a residence, not a business location. Given that, it is almost a certainty that the IRS is not going to let you claim 100% of the expenses for the home as a business expense, even if nobody's actually living there. You may get away with doing this for a period of time and not run into zoning or other issues such as those DJ mentioned, but it's like begging for trouble. You run the very real risk of being audited if you try to do what you're proposing, and rest assured, whatever you saved in taxes will disappear like smoke in the wind under an audit. That being said, there's no reason you can't call a tax service and ask a simple question, because in answering it they're going to hope to gain your business. It'd be well worth the phone call before you land yourself in any hot water with the IRS. I can tell you that I'd rather have a double root canal with no anesthetic than go through an audit, even when I didn't do anything wrong! (grin) Good luck!",
"title": ""
},
{
"docid": "2e983ad037e3368c0490124f6dcaf93a",
"text": "You're aware there's no such thing as a cheap house in Jersey right? Rental values are listed in price per DAY to make them look less scary. Also, no, you couldn't. You pay tax in the country you are resident in and the States don't equate property ownership to residency; neither does HMRC. Interesting side note, in Jersey's neighbour Guernsey you can own a house but not legally be allowed to live in it due to the dual property market.",
"title": ""
},
{
"docid": "6d70f2cae68608a83cef66fb85788404",
"text": "@Pete B.'s answer is good, but there's an important note to consider for tax purposes. It's too large for a comment, so I'm adding it as an answer. And that is: you cannot claim the property as a rental property under certain conditions. This affects things like claiming mortgage interest (which you don't have), and depreciation in value (which a rental is allowed). See IRS topic 415 for details, but I've included an important excerpt below with emphasis added: If you rent a dwelling unit to others that you also use as a residence, limitations may apply to the rental expenses you can deduct. You're considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for more than the greater of: ... A day of personal use of a dwelling unit is any day that it's used by: Talk to a tax accountant to better understand the ramifications of this, but it's worth noting that you can't just rent it to her for a paltry sum and be able to take tax advantages from this arrangement.",
"title": ""
},
{
"docid": "c713a48dcf00125363af47997e795bbf",
"text": "GET A LAWYER. Doing business with relatives is business first, and some effort spent in setting things up and nailing down exactly what the financial relationships and obligations are beforehand can save a lot of agony and animosity later. Assuming it's a legal rental, you may be able to deduct business costs spent on maintaining the rental unit, but of course you will have to declare the rent as income. If it's just a bedroom suite, rather than a full legal apartment, I don't think you can claim it as rental. (Note that whether you decide to share cooking and such is a separate question; apartment in most areas requires its own kitchen and bathroom.) As Joe pointed out, the actual purchase also sounds like it's going to involve a large gift, which has its own tax implications. Either that, or they retain ownership of their share and you get to deal with that if you or they decide to sell. Again: GET A LAWYER. And a tax accountant or tax lawyer to advise you on those implications. This is not someplace where the average wisdom of the Internet should be relied upon except for generalities; local laws and contract details matter.",
"title": ""
},
{
"docid": "7aab38b3269000319e156bc95984f607",
"text": "http://www.irs.gov/publications/p936/ar02.html#en_US_2010_publink1000229891 If you still own it, you get to deduct all of it. In my taxes I did online with TaxAct, it asked if I lived there or not and it just mattered which form it filed for me. With having tenants it was a 'business' form and I assume it would be a standard schedule A for personal. Either way the deductions are still mine to take.",
"title": ""
},
{
"docid": "2f433e95de68c23d93cf4fae5295ecc2",
"text": "You will need to look at the 27.5 year depreciation table from the IRS. It tells you how you will be able to write off the first year. It depends on which month you had the unit ready to rent. Note that that it might be a different month from when you moved, or when the first tenant moved in. Your list is pretty good. You can also claim some travel expenses or mileage related to the unit. Also keep track of any other expenses such as switching the water bill to the new renter, or postage. If you use Turbo tax, not the least expensive version, it can be a big help to get started and to remember how much to depreciate each year.",
"title": ""
},
{
"docid": "bbca7b934fbe5d2da0b11f7e2c079e46",
"text": "The answer is simple. You can generally claim a deduction for an expense if that expense was used to derive an income. Of course social policy sometimes gets in the way and allows for deductions where they usually wouldn't be allowed. Your rent is not tax deductible because this expense is not used to derive your income. If however you were working from your home, example - you had a home based business, and you dedicated a part of your home for your work, say an office, then part of your rent may then become tax deductible.",
"title": ""
}
] |
fiqa
|
69475d46ff7111483e5580ccca3b67d4
|
Can dues and subscriptions expenses be deducted 100% to calculate taxable income in an LLC company?
|
[
{
"docid": "36e19fdc2325928f5b1f1e29b9373bd8",
"text": "IRS Publication 529 is the go-to document. Without being a tax professional, I'd say if the dues and subscriptions help you in the running of your business, then they're deductible. You're on your own if you take my advice (or don't). ;)",
"title": ""
}
] |
[
{
"docid": "3888310130e7db43d4af9b3324cf9def",
"text": "I think I may have figured this out but if someone could double check my reasoning I'd appreciate it. So if my company makes $75000 and I decide to pay myself a $30000 salary, then the quarterly payment break down would be like this: 1040ES: Would pay income tax on non salary dividend ($45000) 941: Would pay income tax, SS, medicare on salary ($30000) (I'm the only person on payroll) So I think this answers my question in that after switching from filing as LLC to S-corp, I won't have to pay as much on 1040ES because some of it will now be covered on payroll.",
"title": ""
},
{
"docid": "b45d5ec4b229bc9bf365f2b849ee8988",
"text": "\"-Alain Wertheimer I'm a hobbyist... Most (probably all) of those older items were sold both prior to my establishing the LLC This is a hobby of yours, this is not your business. You purchased all of these goods for your pleasure, not for their future profit. The later items that you bought after your LLC was establish served both purposes (perks of doing what you love). How should I go about reporting this income for the items I don't have records for how much I purchased them for? There's nothing you can do. As noted above, these items (if you were to testify in court against the IRS). \"\"Losses from the sale of personal-use property, such as your home or car, aren't tax deductible.\"\" Source Do I need to indicate 100% of the income because I can't prove that I sold it at a loss? Yes, if you do not have previous records you must claim a 100% capital gain. Source Addition: As JoeTaxpayer has mentioned in the comments, the second source I posted is for stocks and bonds. So at year begin of 2016, I started selling what I didn't need on eBay and on various forums [January - September]. Because you are not in the business of doing this, you do not need to explain the cost; but you do need to report the income as Gross Income on your 1040. Yes, if you bought a TV three years ago for a $100 and sold it for $50, the IRS would recognize you earning $50. As these are all personal items, they can not be deducted; regardless of gain or loss. Source Later in the year 2016 (October), I started an LLC (October - December) If these are items that you did not record early in the process of your LLC, then it is reported as a 100% gain as you can not prove any business expenses or costs to acquire associated with it. Source Refer to above answer. Refer to above answer. Conclusion Again, this is a income tax question that is split between business and personal use items. This is not a question of other's assessment of the value of the asset. It is solely based on the instruments of the IRS and their assessment of gains and losses from businesses. As OP does not have the necessary documents to prove otherwise, a cost basis of $0 must be assumed; thus you have a 100% gain on sale.\"",
"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": "0a61315d9ef877f3ad2f1f05b0ae0df1",
"text": "The short answer is no you can only deduct actual expenses. The long answer is that it would be impossible for the IRS to determine the value of your time and it would open the tax system to an enormous amount of fraud (think of being able to make up time spent or writing off time spent volunteering at a soup kitchen or any other charity). Now you can write off expenses you have involved in doing the work, equipment and supplies used to do the work along with any wages you paid an employee or contractor to do said work.",
"title": ""
},
{
"docid": "4ece5a4423569b60c3f64870d4bc281f",
"text": "\"I'm assuming that you're in the US. In that case, the answer is that it depends on how your company set up its reimbursement plan. The IRS recognizes \"\"accountable\"\" and \"\"nonaccountable\"\" plans. Accountable plans have to meet certain requirements. Anything else is nonaccountable. If you are reimbursed according to an accountable plan, this is not income and should not be reported to the IRS at all. If you are reimbursed under a nonaccountable plan, then this is income but you might be able to get a deduction on your tax return if you itemize. Most established companies have accountable plans for normal business expenses. More detail from IRS: http://www.tax.gov/TaxabilityCertainFringeBenefits/pdf/Accountable_v_Nonaccountable_Plans_Methods_of_Reimbursing_Employees_for_Expense.pdf\"",
"title": ""
},
{
"docid": "68a64f99ce3e7b39eb632a8f6aefc86a",
"text": "You are expected to file 1099 for each person you pay $600 a year. I.e.: not a one time payment, but the total over the course of the year. Since we don't know how much and what else you paid - we cannot answer this question. The real question you're asking is that if you're treating the enterprise as a hobby, whether you're supposed to file 1099s at all. The answer to that question is yes. You should talk to your tax adviser (a EA/CPA licensed in your state) about this, and whether it is the right thing for you to do treating this as a hobby at all.",
"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": "122f3058c852e263c160735fb876b210",
"text": "No. The equipment costs are not necessarily a direct expense. Depending on the time of purchase and type of the expenditure you may need to capitalize it and depreciate it over time. For example, if you buy a computer - you'll have to depreciate it over 5 years. Some expenditures can be expensed under Section 179 rules, but there are certain conditions to be made, including business revenue. So if your business revenue is $3K - your Sec. 179 deduction is limited to $3K even if more purchases can qualify. Not every purchase qualifies for Sec. 179 treatment, and not all the State tax rules conform to the Federal treatment. Get a professional advice from a CPA/EA licensed in your State.",
"title": ""
},
{
"docid": "aa6ac06db3552d08eda4e4d6ff3339b3",
"text": "Your freelance income will not qualify you for the work-from-home deductions, for that you would need a T2200 form signed by your employer. But, you are allowed to be self employed as a sole-proprietorship while still being an employee of another company. If you take that route, you'll be able to write-off even more expenses than those you linked to. Things like a portion of your internet bill can be claimed, for example. But note that these deductions would only apply to offset the self-employment income, so if you're not earning very much from the freelance work, it might not be worth all the hassle. Filing taxes when self-employed is definitely more complicated, and many people will get professional tax preparation help - at least for the first time.",
"title": ""
},
{
"docid": "2501def977a14701dad8252d84a2c649",
"text": "\"I have done similar software work. You do not need an LLC to write off business expenses. The income and expenses go on Schedule C of your tax return. It is easy to write off even small expenses such as travel - if you keep records. The income should be reported to you on a 1099 form, filled out by your client, not yourself. For a financial advisor you should find one you can visit with personally and who operates as a \"\"fee-only\"\" advisor. That means they will not try to sell you something that they get a commission on. You might pay a few $hundred per visit. There are taxes that you have to pay (around 15%) due to self-employment income. These taxes are due 4 times a year and paid with an \"\"estimated tax\"\" form. See the IRS web site, and in particular schedule SE. Get yourself educated about this fast and make the estimated tax payments on time so you won't run into penalties at the end of the year.\"",
"title": ""
},
{
"docid": "e3cd89c0d64142d65db6089237dac981",
"text": "How do I account for this in the bookkeeping? Here is an example below: This is how you would accurately depict contributions made by an owner for a business. If you would want to remove money from your company, or pay yourself back, this would be called withdrawals. It would be the inverse of the first journal entry with cash on the credit side and withdrawals on the debited side (as it is an expense). You and your business are not the same thing. You are two different entities. This is why you are taxed as two different entities. When you (the owner) make contributions, it is considered to be the cash of the business. From here you will make these expenses against the business and not yourself. Good luck,",
"title": ""
},
{
"docid": "e863c8d274a0822740d59a90181625e4",
"text": "Per IRS regulations, if your stipend is not paying you for qualified expenses (primarily, tuition and books; explicitly not room and board or travel), it is taxable. It doesn't require self-employment taxes (which are Medicare and FICA, normally paid in part by an employer), but it is taxable income from an income tax perspective. You can generally deduct your books and such if you have your receipts - expenses 'required' by the institution for the coursework. Do verify that the amount on the 1099-MISC reflects what you actually received in cash above and beyond the tuition waiver - don't assume the college did this the way you expect, or even properly. Your bank statements should match the amount on the form. You should definitely include it in your gross income and pay taxes on it. If you received alternate instruction, you should clarify that with the people doing the filing, and follow up with a supervisor perhaps (it's possible the volunteers helping at an event like this aren't familiar with this part of tax preparation). (Source, in addition to IRS regulations - I was my wife's tax preparer many of the years she was in her Ph.D. program.)",
"title": ""
},
{
"docid": "ab9c0ecb5ebe0ffe3388effa6e6f32ee",
"text": "\"Its is considered a \"\"hobby\"\" income, and you should be reporting it on the 1040 as taxable income. The expenses (what you pay) are hobby expenses, and you report them on Schedule A (if you itemize). You can only deduct the hobby expenses to the extent of your hobby income, and they're subject to the 2% AGI threshold.\"",
"title": ""
},
{
"docid": "6ebb80e56d6fa2c763af9c19fca46b16",
"text": "\"If it's work you'd be producing specifically for this organization, that would not be deductable. Per Publication 526, Charitable Deductions, \"\"You can't deduct the value of your time or services, including: … The value of income lost while you work as an unpaid volunteer for a qualified organization.\"\" On the other hand, if you were say an author of a published book or something (not specifically written for this organization), you could donate a copy of the book and probably deduct its fair market value (or perhaps only your basis, if it's your business's inventory).\"",
"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": ""
}
] |
fiqa
|
1f845f2f0ec5750283ed033fa9499624
|
Merrill Lynch historical stock prices - where to find?
|
[
{
"docid": "d9d5189c132f0a6e7e2c252016c06ba4",
"text": "You could try asking Merrill Lynch, (general inquiries) :- http://www.ml.com/index.asp?id=7695_114042 So far I only found a few graphics :- http://topics.nytimes.com/top/news/business/companies/merrill_lynch_and_company/ http://www.reuters.com/article/2008/01/17/us-merrilllynch-results-idUSWNAS674520080117 http://www.stocktradingtogo.com/2008/09/15/merrill-lynch-saved-by-bank-of-america-buyout/",
"title": ""
}
] |
[
{
"docid": "b0450d67e8cbf88413d3c97a3f56ac2f",
"text": "You need a source of delisted historical data. Such data is typically only available from paid sources. According to my records 20 Feb 2006 was not a trading day - it was Preisdent's Day and the US exchanges were closed. The prior trading date to this was 17 Feb 2006 where the stock had the following data: Open: 14.40 High 14.46 Low 14.16 Close 14.32 Volume 1339800 (consolidated volume) Source: Symbol NVE-201312 within Premium Data US delisted stocks historical data set available from http://www.premiumdata.net/products/premiumdata/ushistorical.php Disclosure: I am a co-owner of Norgate / Premium Data.",
"title": ""
},
{
"docid": "d94213b22892d8c0384ec8dfa260408f",
"text": "On Monday, the 27th of June 2011, the XIV ETF underwent a 10:1 share split. The Yahoo Finance data correctly shows the historic price data adjusted for this split. The Google Finance data does not make the adjustment to the historical data, so it looks like the prices on Google Finance prior to 27 June 2011 are being quoted at 10 times what they should be. Coincidentally, the underlying VIX index saw a sudden surge on the Friday (24 June) and continued on the Monday (27 June), the date that the split took effect. This would have magnified the bearish moves seen in the historic price data on the XIV ETF. Here is a link to an article detailing the confusion this particular share split caused amongst investors. It appears that Google Finance was not the only one to bugger it up. Some brokers failed to adjust their data causing a lots of confusion amongst clients with XIV holdings at the time. This is a recurring problem on Google Finance, where the historic price data often (though not always) fails to account for share splits.",
"title": ""
},
{
"docid": "2ee64c477f71e46524f285924da4742c",
"text": "Dow Jones: http://en.wikipedia.org/wiki/Historical_components_of_the_Dow_Jones_Industrial_Average NASDAQ: http://en.wikipedia.org/wiki/NASDAQ-100 (scroll down) S&P Tricky. From what I can find, you need to be in Harvard Business School, a member of CRSP, or have access to Bloomberg's databases. S&P did have the info available years ago, but no longer that I can find.",
"title": ""
},
{
"docid": "db2f63f6fc2c53219ecac35428d7ce7d",
"text": "You need a source of delisted historical data. Such data is typically only available from paid sources. According to my records, Lawson Software Inc listed on the NASDAQ on 7 Dec 2001 and delisted on 6 Jul 2011. Its final traded price was $11.23. It was taken over by Infor who bid $11.25 per share. Source: Symbol LWSN-201107 within Premium Data US delisted stocks historical data set available from http://www.premiumdata.net/products/premiumdata/ushistorical.php Disclosure: I am a co-owner of Norgate / Premium Data.",
"title": ""
},
{
"docid": "8f273f70f6f09dc36714382c6fe6fa2f",
"text": "Morningstar has that 10 history at http://financials.morningstar.com/ratios/r.html?t=JNJ®ion=usa&culture=en-US",
"title": ""
},
{
"docid": "ff7f871a450e24d96f85664029365357",
"text": "Investopedia has one and so does marketwatch I've always used marketwatch, and I have a few current competitions going on if you want me to send the link They recently remodeled the website so it works on mobile and not as well on desktop Don't know anything about the investopedia one though",
"title": ""
},
{
"docid": "47d2401e8c9dcd835a24ea517a73bda6",
"text": "I've seen this tool. I'm just having a hard time finding where I can just get a list of all the companies. For example, you can get up to 100 results at a time, if I just search latest filings for 10-K. This isn't really an efficient way to go about what I want.",
"title": ""
},
{
"docid": "5e9f78b304262a787f28122f0e2865ff",
"text": "I haven't seen one of these in quite some time. Back in the 1970s, maybe the 1980s, stock brokers would occasionally send their retail clients a complimentary copy once in a while. Also, I remember the local newspaper would offer a year-end edition for a few dollars (maybe $3) and that edition would include the newspaper company's name on the cover. They were very handy little guides measuring 5 1/2 x 8 (horizontal) with one line devoted to each company. They listed hundreds of publicly traded companies and had basic info on each company. As you stated, for further info you needed to go to the library and follow-up with the big S&P and/or Moody's manuals. That was long before the internet made such info available at the click of a button on a home computer!",
"title": ""
},
{
"docid": "5819b1b16bb5a329fb87dea149f8148b",
"text": "Goldprice.org has different currencies and historical data. I think silverprice.org also has historical data.",
"title": ""
},
{
"docid": "3c37c24f30645f6131887178f02722dc",
"text": "FINRA lets you view recent trades, but as stated in the other answer bonds are illiquid and often do not trade frequently. Therefore recent trades prices are only a rough estimate of the current price that would be accepted. http://finra-markets.morningstar.com/BondCenter/Default.jsp",
"title": ""
},
{
"docid": "b891f946fa4bcd62c8d9379a78d169d9",
"text": "I agree that a random page on the internet is not always a good source, but at the same time I will use Google or Yahoo Finance to look up US/EU equities, even though those sites are not authoritative and offer zero guarantees as to the accuracy of their data. In the same vein you could try a website devoted to warrants in your market. For example, I Googled toronto stock exchange warrants and the very first link took me to a site with all the information you mentioned. The authoritative source for the information would be the listing exchange, but I've spent five minutes on the TSX website and couldn't find even a fraction of the information about that warrant that I found on the non-authoritative site.",
"title": ""
},
{
"docid": "afa477c7daa7926a74e9d65618230edc",
"text": "A quick search showed me that UEP merged into Ameren on Dec 31, 1997, and Ameren still exists today. So I took a look at Ameren's Investor Relations website. Unfortunately, they don't provide historical stock prices prior to Ameren forming, so starting with 1998. However, I've had good luck in the past emailing a company's investor relations contact and asking for data like this that isn't on the website. It's reasonably likely they'll have internal records they could look it up within.",
"title": ""
},
{
"docid": "af78c4c4186788dd4ac2f120b3c02a17",
"text": "Bonds are extremely illiquid and have traditionally traded in bulk. This has changed in recent years, but bonds used to be traded all by humans not too long ago. Currently, price data is all proprietary. Prices are reported to the usual data terminals such as Bloomberg, Reuters, etc, but brokers may also have price gathering tools and of course their own internal trade history. Bonds are so illiquid that comparable bonds are usually referenced for a bond's price history. This can be done because non-junk bonds are typically well-rated and consistent across ratings.",
"title": ""
},
{
"docid": "3e1635a637bbb1a5c4363476bdfa51e1",
"text": "\"For US equities, Edgar Online is where companies post their government filings to the SEC. On Google Finance, you would look at the \"\"SEC filings\"\" link on the page, and then find their 10K and 10Q documents, where that information is listed and already calculated. Many companies also have these same documents posted on their Investor Relations web pages.\"",
"title": ""
},
{
"docid": "0e762d578a09726a9f767ed87d82bde3",
"text": "I know of no free source for 10 years historical data on a large set of companies. Now, if it's just a single company or small number that interest you, contact Investor Relations at the company(ies) in question; they may be willing to send you the data for free.",
"title": ""
}
] |
fiqa
|
9f91884499887c15eb6e755e64f090cd
|
How feasible would it be to retire just maxing out a Roth IRA?
|
[
{
"docid": "e381aeb1110d8b207c75ddc922101ea8",
"text": "Interesting. The answer can be as convoluted/complex as one wishes to make it, or back-of-envelope. My claim is that if one starts at 21, and deposits 10% of their income each year, they will likely hit a good retirement nest egg. At an 8% return each year (Keep in mind, the last 40 years produced 10%, even with the lost decade) the 10% saver has just over 15X their final income as a retirement account. At 4% withdrawal, this replaces 60% of their income, with social security the rest, to get to nearly 100% or so replacement. Note - I wrote an article about Social Security Benefits, showing the benefit as a percent of final income. At $50K it's 42%, it's a higher replacement rate for lower income, but the replacement rate drops as income rises. So, the $5000 question. For an individual earning $50K or less, this amount is enough to fund their retirement. For those earning more, it will be one of the components, but not the full savings needed. (By the way, a single person has a standard deduction and exemption totaling $10150 in 2014. I refer to this as the 'zero bracket.' The next $8800 is taxed at 10%. Why go 100% Roth and miss the opportunity to fund these low or no tax withdrawals?)",
"title": ""
},
{
"docid": "14ec6cac8c7da14b46e08507111a0ef2",
"text": "Assuming you max-out your Roth IRA with $5000 in inflation-adjusted contributions every year from 25-65, your balance at age 65 will depend on the post-inflation return you get in the account. Assuming you withdraw 4% per year after that, here is what your income will be: (All numbers are in inflation-adjusted 2011 dollars.) If your post-inflation return is zero - if you buy treasury bonds, money-market accounts, or something like that - you'll have a simple $5000 * 40 = $200,000, which will give you an income of around $8000 per year. If you get a 3% post-inflation return - e.g. fairly safe Muni bonds, corporate bonds, and boring stocks - you'll approximately double your money to around $393,000, giving you an income of over $15,000 per year. If you get a 6% return - e.g. more aggressive stocks and more risk-taking - you'll approximately double your money again to over $825,000. A 4% withdrawal rate will give you an income of around $33,000 per year. Stocks have historically returned around inflation + 8% - that will get you over $1.4 million - and an annual income of over $56,000 per year. So, yes, it is feasible to retire on nothing but a maxed-out Roth IRA.",
"title": ""
},
{
"docid": "a0895d4a00b99b8be77de2db55b142f5",
"text": "\"I wouldn't settle for 10%, and I certainly wouldn't settle for a Roth. I'd recommend not retiring. I'd recommend building up a side business in your \"\"free\"\" time while you're working that's closer to your calling that you can \"\"retire into.\"\" Don't be complacent.\"",
"title": ""
}
] |
[
{
"docid": "2452848d304d45a8eec636f6ec03ba5f",
"text": "Does your employer provide a matching contribution to your 401k? If so, contribute enough to the 401k that you can fully take advantage of the 401k match (e.g. if you employer matches 3% of your income, contribute 3% of your income). It's free money, take advantage of it. Next up, max out your Roth IRA. The limit is $5000 currently a year. After maxing your Roth, revisit your 401k. You can contribute up to 16,500 per year. You savings account is a good place to keep a rainy day fund (do you have one?), but it lacks the tax advantages of a Roth IRA or 401k, so it is not really suitable for retirement savings (unless you have maxed out both your 401k and Roth IRA). Once you have take care of getting money into your 401k and Roth IRA accounts, the next step is investing it. The specific investment options available to you will vary depending on who provides your retirement account(s), so these are general guidelines. Generally, you want to invest in higher-risk, higher-return investments when you are young. This includes things like stocks and developing countries. As you get older (>30), you should look at moving some of your investments into things that less volatile. Bond funds are the usual choice. They tend to be safer than stocks (assuming you don't invest in Junk bonds), but your investment grows at a slower rate. Now this doesn't mean you immediately dump all of your stock and buy bonds. Rather, it is a gradual transition over time. As you get older and older, you gradually shift your investments to bond funds. A general rule of thumb I have seen: 100 - (YOUR AGE) = Percentage of your portfolio that should be in stocks Someone that is 30 would have 70% of their portfolio in stock, someone that is 40 would have 60% in stock, etc. As you get closer to retirement (50s-60s), you will want to start looking at investments that are more conservatie than bonds. Start to look at fixed-income and money market funds.",
"title": ""
},
{
"docid": "0e7aaa3545c4d6f453db4c1aab884836",
"text": "\"First off, high five on the paycheck. There are a few retirement issues to deal with. 401k issues - At that income level, you will probably fall into the \"\"Highly Compensated Employee\"\" category, which means things get a little more complicated, both for you and your employer. (Wikipedia link) IRA issues - As you already realized, you make too much to directly open and contribute to a Roth IRA. You can open a Traditional IRA, however. Your income is already over the limit for Traditional IRA deduction (bummer), so it would seem there is little point to opening an IRA at all. However, there is a way to take advantage of a Roth IRA, even at your income level. It is possible to convert a Traditional IRA into a Roth IRA. There used to be income limits on the ability to do the conversion, which would have normally made this off limits to you. Starting in 2010, the income limit is removed, so you can do this. Basically, you open a Traditional IRA, max it out, then convert it to a Roth. Since there was no income deduction, you shouldn't have to pay any more taxes. (link) Disclaimer: I've never tried this, nor do I know anyone who has, so you might want to research it a bit more before you try it yourself.\"",
"title": ""
},
{
"docid": "2b5f9d5531659e32ee0326e1e906152a",
"text": "There's a serious mistake in your analysis: granted, in the traditional IRA, you avoid paying taxes on the $5000 now, but you're now stuck paying taxes on $2.2 million dollars when you withdraw it later. Obviously, you'll end up paying massively more than $1250 in taxes on this in the end. As other people have pointed out, if you can afford to cut the $1250 elsewhere in your budget, you could still end up with the $2.2M. However, let's say just for argument that you don't; the question then becomes if you're better off taking the tax hit on the $5,000 now or the $2.2 million later. It also really matters how much money you'll be withdrawing when you retire as well as how you'll be doing the withdraws. Personally, my goal is to be able to withdraw as much per year as my highest salary while working, so clearly the Roth IRA is a good deal for me. An important consideration here is that most people believe that their expenses will go down when they retire, but the majority of retirees in some surveys have indicated that their expenses either stayed approximately the same or actually increased. Also, quick reality check: would the fact that you know you'd be saving $1250 on your taxes by contributing to the IRA actually cause you to contribute an extra $1250 to your retirement? Even if you personally would, I highly doubt that most people, with the exception of people who post on this site :), actually think that way (especially given how little most people actually save for retirement).",
"title": ""
},
{
"docid": "adcaaa179270d076ea0768d8715a2b95",
"text": "A Roth IRA is just an account wrapper. Inside a Roth IRA you can have a plain 0.1% savings account, or a brokerage account, or an annuity or whatever. There's no rate of return for a Roth IRA. That particular calculator seems to assume you'll be wrapping a brokerage account in a Roth IRA and investing in the stock market. Over a long period 6% is probably a reasonable rate of return considering the S&P 500 has returned about 7% over the last decade.",
"title": ""
},
{
"docid": "84c0ada65629df1010aeb595b547936e",
"text": "\"I am a CPA. Yes you can do what you are contemplating. Be careful that they do not take any taxes out of the money when you go to do the \"\"rollover\"\". If they do you will have to dip into your own pocket to put that back into the IRA.\"",
"title": ""
},
{
"docid": "c1b0e3373727ed14f906b24e0ed68b88",
"text": "the $5500 Roth IRA is not restricted to earned income, you can put whatever money you have tax free and gains free.",
"title": ""
},
{
"docid": "a6d30c4e2ec0ff2272db0f800414b25d",
"text": "\"It is not an either/or decision. If you \"\"want to retire decades early\"\", then you will need to have a taxable account anyway, as you won't be able to stuff enough money into the tax-advantaged accounts to meet that goal. And if you are \"\"making a huge sum\"\", then you will be in a high tax bracket and so the tax advantages of saving into a 401K or IRA will be substantial. So, max out your 401K/IRA, and then save the rest into the taxable brokerage account. When you retire at 39, live off your taxable account until you are old enough to tap the other ones without penalty. Unless you plan to die decades early, as well as retire decades early. In that case, you can bypass the 401K/IRA.\"",
"title": ""
},
{
"docid": "63028da560b010f21be8e9e6fbd1ea48",
"text": "I second CrimsonX's advice to max out Roth then 401k. At your age in what sounds like a similar situation I did the same thing -- thankfully. It's easier to do when you're young and unencumbered. 10 years later with kids, house, changing from double to single income, job changes, etc, it's harder to max out retirement accounts. Not to mention that priorities change, e.g. saving for college.",
"title": ""
},
{
"docid": "2ccd5eb1d0b5465caec02197574beaf4",
"text": "This all comes down to time: You can spend the maximum on taxes and penalties and have your money now. Or you can wait about a decade and not pay a cent in taxes or penalties. Consider (assuming no other us income and 2017 tax brackets which we know will change): Option 1 (1 year): Take all the money next year and pay the taxes and penalty: Option 2 (2 years): Spread it out to barely exceed the 10% bracket: Option 3 (6 years): Spread it out to cover your Standard Deduction each year: Option 4 (6-11 years): Same as Option 3 but via a Roth Conversion Ladder:",
"title": ""
},
{
"docid": "67723070523d2d8a176e4ac196dd689f",
"text": "Yes for sure. It would be redundant. I have three of them, so what. Its just more money in retirement. I would prefer a ROTH IRA in your tax bracket and you next employer may not offer that. And yes there are tax breaks either putting money in to a IRA or if you go the Roth route, on the way out. So if you put money in a Roth now you will have some money at your tax rate in 40 years from now. And if you put money in a traditional IRA when you are an employee you will save on the tax rate you are at then. So you are hedging you bets on tax rates by paying them in two different decade. Personally we are probably all on a tax holiday right now and I would be that taxes will be higher in the future as they are historically pretty low right now.",
"title": ""
},
{
"docid": "50760dffd8fb709fb61ee9a6688fff43",
"text": "\"Couple points: 1) Since the Roth is after tax, you can effectively contribute more than you could with the Traditional IRA before hitting the limits. So in your example, if you had extra money you wanted to invest in an IRA, you could invest up to $1,750 more into the Roth but only $500 more into the Traditional (current limits are $5,500 per year for single filers under 50). Your example assumes that you have exactly $3,750 in spare money looking for an IRA home. 2) The contributions (but not earnings) can be withdrawn from the Roth at any time, penalty and tax free. 3) The tax rate \"\"lock-in\"\" can be significant, especially early on when you are at a relatively low tax bracket, say 15%, but expect to be higher at retirement. 4) Traditional IRAs and 401(k) are taxed as ordinary income, so you go through the tax brackets. Even if the marginal rate is 25%, the effective rate may be lower. If you have a Roth, conceivably you could reduce the amount you need to withdrawal from the Trad IRA/401(k) to reduce the effective tax rate on those (of course subject to minimum distributions and all that). This is more an argument to have a mix of pre- and post-tax retirement accounts than strictly a pro-Roth reason.\"",
"title": ""
},
{
"docid": "ee9ec3cf0e095eca0867b554e25a864e",
"text": "\"If you have wage income that is reported on a W2 form, you can contribute the maximum of your wages, what you can afford, or $5500 in a Roth IRA. One advantage of this is that the nominal amounts you contribute can always be removed without tax consequences, so a Roth IRA can be a deep emergency fund (i.e., if the choice is $2000 in cash as emergency fund or $2000 in cash in a 2015 Roth IRA contribution, choice 2 gives you more flexibility and optimistic upside at the risk of not being able to draw on interest/gains until you retire or claim losses on your tax return). If you let April 15 2016 pass by without making a Roth IRA contribution, you lose the 2015 limit forever. If you are presently a student and partially employed, you are most likely in the lowest marginal tax rate you will be in for decades, which utilizes the Roth tax game effectively. If you're estimating \"\"a few hundred\"\", then what you pick as an investment is going to be less important than making the contributions. That is, you can pick any mutual fund that strikes your fancy and be prepared to gain or lose, call it $50/year (or pick a single stock and be prepared to lose it all). At some point, you need to understand your emotions around volatility, and the only tuition for this school is taking a loss and having the presence of mind to examine any panic responses you may have. No reason not to learn this on \"\"a few hundred\"\". While it's not ideal to have losses in a Roth, \"\"a few hundred\"\" is not consequential in the long run. If you're not prepared at this time in your life for the possibility of losing it all (or will need the money within a year or few, as your edit suggests), keep it in cash and try to reduce your expenses to contribute more. Can you contribute another $100? You will have more money at the end of the year than investment choice will likely return.\"",
"title": ""
},
{
"docid": "7735af6c3dcf074d3b190b7cf6b295b6",
"text": "You may withdraw penalty-free from a 401(k) if you separate from service at 55 or later. This may make the rolling to any IRA not a good idea. You can withdraw penalty free if you are disabled. You can withdraw penalty free if you take the withdrawal using a process called Section 72t which basically means a steady withdrawal for either 5 years or until age 59-1/2 whichever is second. Aside from these exceptions, the concept is to be allowed to take withdrawals after 59-1/2, but you must start to take withdrawals starting at 70-1/2. These are called RMDs (required minimum distributions) and represent a small fraction of the account, 1/27.4 at 70, 1/18.7 at 80, 1/11.4 at 90. Each year, you take a minimum of this fraction of the account value and pay the tax. If you had a million dollars, your first withdrawal would be $36,496, you'd be in the 15% marginal rate with this income. In general, it's always a good idea to be aware of your marginal tax rate. For example, a married filing joint couple would be in the 15% bracket up to a taxable $74,900 in 2015. At withdrawal time, and as the year moves along, if they are on track to have a taxable $64,900 (for example), it would be wise to take the extra $10,000, either as a withdrawal to put aside for the next year, or as a Roth conversion. This way, as the RMDs increase, they have a reduced chance to push the couple to the next tax bracket.",
"title": ""
},
{
"docid": "fa48d7734554abdb4ab9668e47b9c544",
"text": "Your math is correct. As you point out, because of the commutative property of multiplication, Roth and traditional IRAs offer the same terminal wealth if your tax rate is the same when you pull it out as when you put it in. Roth does lock in your tax rate as of today as you point out, which is why it frequently does not maximize wealth (most of us have a higher tax bracket when we are saving than when we are withdrawing from savings). There are a few other potential considerations/advantages of a Roth: Roth and traditional IRAs have the same maximum contribution amount. This means the effective amount you can contribute to a Roth is higher ($5,500 after tax instead of before). If this constraint is binding for you and you don't expect your tax rate to change, Roth is better. Roth IRAs allow you to withdraw your contributed money (not the gains) at any time without any tax or penalty whatsoever. This can be an advantage to some who would like to use it for something like a down payment instead of keeping it all the way to retirement. In this sense the Roth is more flexible. As your income becomes high, the deductibility of traditional IRA contributions goes to zero if you have a 401(k) at work (you can still contribute but can't deduct contributions). At high incomes you also may be disallowed from contributing to a Roth, but because of the backdoor Roth loophole you can make Roth contributions at any income level and preserve the full Roth tax advantage. Which type of account is better for any given person is a complex problem with several unknowns (like future tax rates). However, because tax rates are generally higher when earning money, for most people who can contribute to them, traditional IRAs maximize your tax savings and therefore wealth. Edit: Note that traditional IRA contributions also reduce your AGI, which is used to compute eligibility for other tax advantages, like the child care tax credit and earned income credit. AGI is also often used for state income tax calculation. In retirement, traditional IRA distributions may or may not be state taxable, depending on your state and circumstances.",
"title": ""
},
{
"docid": "8062146412f4d4ad57595551d6a4f910",
"text": "\"Unfortunately, not directly. For IRAs and HSAs, we have an annual maximum contribution limit. What you can do (which doesn't \"\"initially seed\"\" it) is to put the money aside in a savings account that you want to contribute to your HSA or IRA and then put it in the IRA or HSA when the timing is right for you. The key here though is that the contribution cannot exceed the maximum limit for the year. Another \"\"way around\"\" this (which really isn't because it just means that you'll have a new higher limit) is to become self employed, see this from the IRS about SEPs: Contribute as much as 25% of your net earnings from self-employment (not including contributions for yourself), up to $51,000 for 2013 ($52,000 for 2014). Still, none of these methods are pre-seeding an account, as the maximum contribution limit is never exceeded.\"",
"title": ""
}
] |
fiqa
|
74de828a0fcc584c7848373bf0268446
|
Assessing the value of an ETF
|
[
{
"docid": "a6ee4e5de0eaac8cd605fe3bd7730482",
"text": "\"You seem to be assuming that ETFs must all work like the more traditional closed-end funds, where the market price per share tends—based on supply and demand—to significantly deviate from the underlying net asset value per share. The assumption is simplistic. What are traditionally referred to as closed-end funds (CEFs), where unit creation and redemption are very tightly controlled, have been around for a long time, and yes, they do often trade at a premium or discount to NAV because the quantity is inflexible. Yet, what is generally meant when the label \"\"ETF\"\" is used (despite CEFs also being both \"\"exchange-traded\"\" and \"\"funds\"\") are those securities which are not just exchange-traded, and funds, but also typically have two specific characteristics: (a) that they are based on some published index, and (b) that a mechanism exists for shares to be created or redeemed by large market participants. These characteristics facilitate efficient pricing through arbitrage. Essentially, when large market participants notice the price of an ETF diverging from the value of the shares held by the fund, new units of the ETF can get created or redeemed in bulk. The divergence quickly narrows as these participants buy or sell ETF units to capture the difference. So, the persistent premium (sometimes dear) or discount (sometimes deep) one can easily witness in the CEF universe tend not to occur with the typical ETF. Much of the time, prices for ETFs will tend to be very close to their net asset value. However, it isn't always the case, so proceed with some caution anyway. Both CEF and ETF providers generally publish information about their funds online. You will want to find out what is the underlying Net Asset Value (NAV) per share, and then you can determine if the market price trades at a premium or a discount to NAV. Assuming little difference in an ETF's price vs. its NAV, the more interesting question to ask about an ETF then becomes whether the NAV itself is a bargain, or not. That means you'll need to be more concerned with what stocks are in the index the fund tracks, and whether those stocks are a bargain, or not, at their current prices. i.e. The ETF is a basket, so look at each thing in the basket. Of course, most people buy ETFs because they don't want to do this kind of analysis and are happy with market average returns. Even so, sector-based ETFs are often used by traders to buy (or sell) entire sectors that may be undervalued (or overvalued).\"",
"title": ""
},
{
"docid": "1004cf6b56fd3977ba674b6a4263bb37",
"text": "You can follow the intra-day NAV of an ETF, for instance SPY, by viewing its .IV (intra-day value) ticker which tracks it's value. http://finance.yahoo.com/q?s=spy http://finance.yahoo.com/q?s=^SPY-IV Otherwise, each ETF provider will update their NAV after business each day on their own website. https://www.spdrs.com/product/fund.seam?ticker=spy",
"title": ""
}
] |
[
{
"docid": "75ffcd067af42e2df03285f2b01a8697",
"text": "\"From Wikipedia: Usage Because EV is a capital structure-neutral metric, it is useful when comparing companies with diverse capital structures. Price/earnings ratios, for example, will be significantly more volatile in companies that are highly leveraged. Stock market investors use EV/EBITDA to compare returns between equivalent companies on a risk-adjusted basis. They can then superimpose their own choice of debt levels. In practice, equity investors may have difficulty accurately assessing EV if they do not have access to the market quotations of the company debt. It is not sufficient to substitute the book value of the debt because a) the market interest rates may have changed, and b) the market's perception of the risk of the loan may have changed since the debt was issued. Remember, the point of EV is to neutralize the different risks, and costs of different capital structures. Buyers of controlling interests in a business use EV to compare returns between businesses, as above. They also use the EV valuation (or a debt free cash free valuation) to determine how much to pay for the whole entity (not just the equity). They may want to change the capital structure once in control. Technical considerations Data availability Unlike market capitalization, where both the market price and the outstanding number of shares in issue are readily available and easy to find, it is virtually impossible to calculate an EV without making a number of adjustments to published data, including often subjective estimations of value: In practice, EV calculations rely on reasonable estimates of the market value of these components. For example, in many professional valuations: Avoiding temporal mismatches When using valuation multiples such as EV/EBITDA and EV/EBIT, the numerator should correspond to the denominator. The EV should, therefore, correspond to the market value of the assets that were used to generate the profits in question, excluding assets acquired (and including assets disposed) during a different financial reporting period. This requires restating EV for any mergers and acquisitions (whether paid in cash or equity), significant capital investments or significant changes in working capital occurring after or during the reporting period being examined. Ideally, multiples should be calculated using the market value of the weighted average capital employed of the company during the comparable financial period. When calculating multiples over different time periods (e.g. historic multiples vs forward multiples), EV should be adjusted to reflect the weighted average invested capital of the company in each period. In your question, you stated: The Market Cap is driven by the share price and the share price is determined by buyers and sellers who have access to data on cash and debts and factor that into their decision to buy or sell. Note the first point under \"\"Technical Considerations\"\" there and you will see that the \"\"access to data on cash and debts\"\" isn't quite accurate here so that is worth noting. As for alternatives, there are many other price ratios one could use such as price/earnings, price/book value, price/sales and others depending on how one wants to model the company. The better question is what kind of investing strategy is one wanting to use where there are probably hundreds of strategies at least. Let's take Apple as an example. Back on April 23, 2014 they announced earnings through March 29, 2014 which is nearly a month old when it was announced. Now a month later, one would have to estimate what changes would be made to things there. Thus, getting accurate real-time values isn't realistic. Discounted Cash Flow is another approach one can take of valuing a company in terms of its future earnings computed back to a present day lump sum.\"",
"title": ""
},
{
"docid": "94fd0ac68a72a65937095c6edeaedb74",
"text": "Thanks very much. 12b1 is a form that explains how a fund uses that .25-1% fee, right? So that's part of the puzzle im getting at. I'm not necessarily trying to understand my net fees, but more who pays who and based off of what. For a quick example, betterment bought me a bunch of vanguard ETFs. That's cool. But vanguard underperformed vs their blackrock and ssga etfs. I get that vanguard has lower fees, but the return was less even taking those into account. I'm wondering, first what sort of kickback betterment got for buying those funds, inclusive of wholesale deals, education fees etc. I'm also wondering how this food chain goes up and down the sponsor, manager tree. I'm sure it's more than just splitting up that 1%",
"title": ""
},
{
"docid": "66b7ccc105a31477357e8d060940712c",
"text": "This ETFchannel.com page shows which ETFs hold Wells Fargo and you can search other stocks the get the same information on that site. This the same information for Google This even tells you what percentage of an ETF is a particular stock. Be warned that this site is not entirely free. You will be limited to 6 pages in 6 hours unless you pay for a subscription. Additionally ETFdb.com offers a similar tool.",
"title": ""
},
{
"docid": "60c9eac57d227944f7dd9dfc37899a80",
"text": "\"First, to mention one thing - better analysis calls for analyzing a range of outcomes, not just one; assigning a probability on each, and comparing the expected values. Then moderating the choice based on risk tolerance. But now, just look at the outcome or scenario of 3% and time frame of 2 days. Let's assume your investable capital is exactly $1000 (multiply everything by 5 for $5,000, etc.). A. Buy stock: the value goes to 103; your investment goes to $1030; net return is $30, minus let's say $20 commission (you should compare these between brokers; I use one that charges 9.99 plus a trivial government fee). B. Buy an call option at 100 for $0.40 per share, with an expiration 30 days away (December 23). This is a more complicated. To evaluate this, you need to estimate the movement of the value of a 100 call, $0 in and out of the money, 30 days remaining, to the value of a 100 call, $3 in the money, 28 days remaining. That movement will vary based on the volatility of the underlying stock, an advanced topic; but there are techniques to estimate that, which become simple to use after you get the hang of it. At any rate, let's say that the expected movement of the option price in this scenario is from $0.40 to $3.20. Since you bought 2500 share options for $1000, the gain would be 2500 times 2.8 = 7000. C. Buy an call option at 102 for $0.125 per share, with an expiration 30 days away (December 23). To evaluate this, you need to estimate the movement of the value of a 102 call, $2 out of the money, 30 days remaining, to the value of a 102 call, $1 in the money, 28 days remaining. That movement will vary based on the volatility of the underlying stock, an advanced topic; but there are techniques to estimate that, which become simple to use after you get the hang of it. At any rate, let's say that the expected movement of the option price in this scenario is from $0.125 to $ 1.50. Since you bought 8000 share options for $1000, the gain would be 8000 times 1.375 = 11000. D. Same thing but starting with a 98 call. E. Same thing but starting with a 101 call expiring 60 days out. F., ... Etc. - other option choices. Again, getting the numbers right for the above is an advanced topic, one reason why brokerages warn you that options are risky (if you do your math wrong, you can lose. Even doing that math right, with a bad outcome, loses). Anyway you need to \"\"score\"\" as many options as needed to find the optimal point. But back to the first paragraph, you should then run the whole analysis on a 2% gain. Or 5%. Or 5% in 4 days instead of 2 days. Do as many as are fruitful. Assess likelihoods. Then pull the trigger and buy it. Try these techniques in simulation before diving in! Please! One last point, you don't HAVE to understand how to evaluate projected option price movements if you have software that does that for you. I'll punt on that process, except to mention it. Get the general idea? Edit P.S. I forgot to mention that brokers need love for handling Options too. Check those commission rates in your analysis as well.\"",
"title": ""
},
{
"docid": "6473d727ce6f8ff477b24768d2c05b49",
"text": "\"Option pricing models used by exchanges to calculate settlement prices (premiums) use a volatility measure usually describes as the current actual volatility. This is a historic volatility measure based on standard deviation across a given time period - usually 30 to 90 days. During a trading session, an investor can use the readily available information for a given option to infer the \"\"implied volatility\"\". Presumably you know the option pricing model (Black-Scholes). It is easy to calculate the other variables used in the pricing model - the time value, the strike price, the spot price, the \"\"risk free\"\" interest rate, and anything else I may have forgotten right now. Plug all of these into the model and solve for volatility. This give the \"\"implied volatility\"\", so named because it has been inferred from the current price (bid or offer). Of course, there is no guarantee that the calculated (implied) volatility will match the volatility used by the exchange in their calculation of fair price at settlement on the day (or on the previous day's settlement). Comparing the implied volatility from the previous day's settlement price to the implied volatility of the current price (bid or offer) may give you some measure of the fairness of the quoted price (if there is no perceived change in future volatility). What such a comparison will do is to give you a measure of the degree to which the current market's perception of future volatility has changed over the course of the trading day. So, specific to your question, you do not want to use an annualised measure. The best you can do is compare the implied volatility in the current price to the implied volatility of the previous day's settlement price while at the same time making a subjective judgement about how you see volatility changing in the future and how this has been reflected in the current price.\"",
"title": ""
},
{
"docid": "daeb68910f70be984d51f671d0e67cae",
"text": "The Creation/Redemption mechanism is how shares of an ETF are created or redeemed as needed and thus is where there can be differences in what the value of the holdings can be versus the trading price. If the ETF is thinly traded, then the difference could be big as more volume would be where the mechanism could kick in as generally there are blocks required so the mechanism usually created or redeemed in lots of 50,000 shares I believe. From the link where AP=Authorized Participant: With ETFs, APs do most of the buying and selling. When APs sense demand for additional shares of an ETF—which manifests itself when the ETF share price trades at a premium to its NAV—they go into the market and create new shares. When the APs sense demand from investors looking to redeem—which manifests itself when the ETF share price trades at a discount—they process redemptions. So, suppose the NAV of the ETF is $20/share and the trading price is $30/share. The AP can buy the underlying securities for $20/share in a bulk order that equates to 50,000 shares of the ETF and exchange the underlying shares for new shares in the ETF. Then the AP can turn around and sell those new ETF shares for $30/share and pocket the gain. If you switch the prices around, the AP would then take the ETF shares and exchange them for the underlying securities in the same way and make a profit on the difference. SEC also notes this same process.",
"title": ""
},
{
"docid": "70591461ef9fce7e7b32b7b259bf14f6",
"text": "The quant aspect '''''. This is the kind of math I was wondering if it existed, but now it sounds like it is much more complex in reality then optimizing by evaluating different cost of capital. Thank you for sharing",
"title": ""
},
{
"docid": "adcbfc7ed50dda109ff508fe92da26ec",
"text": "I'm honestly not well versed on healthcare ETFs. I have seen a few mentioned here and there on various threads around /r/investing and /r/wallstreetbets. My pro-Vanguard bias would lead me to looking most closely at VHT, but there seem to be [many other great looking picks](http://etfdb.com/type/sector/healthcare/) out there such as IBB, XLV, and IHI, among others. Right now I am generally concerned about valuations in technology and perhaps simply in general, but we'll see what happens. As I craft my goals for the near and long term, I would favor the defense industry ($ITA), technology (broad definition -- $VGT, $V, $AAPL, $BABA, various video games companies short term), healthcare (above), some specific international exposure (such as $EWGS), and boring stuff ($VOO, $VTI).",
"title": ""
},
{
"docid": "6b7485e54f14bda079a021ac233b0c0d",
"text": "I think that assuming that you're not looking to trade the fund, an index Mutual Fund is a better overall value than an ETF. The cost difference is negligible, and the ability to dollar-cost average future contributions with no transaction costs. You also have to be careful with ETFs; the spreads are wide on a low-volume fund and some ETFs are going more exotic things that can burn a novice investor. Track two similar funds (say Vanguard Total Stock Market: VTSMX and Vanguard Total Stock Market ETF: VTI), you'll see that they track similarly. If you are a more sophisticated investor, ETFs give you the ability to use options to hedge against declines in value without having to incur capital gains from the sale of the fund. (ie. 20 years from now, can use puts to make up for short-term losses instead of selling shares to avoid losses) For most retail investors, I think you really need to justify using ETFs versus mutual funds. If anything, the limitations of mutual funds (no intra-day trading, no options, etc) discourage speculative behavior that is ultimately not in your best interest. EDIT: Since this answer was written, many brokers have begun offering a suite of ETFs with no transaction fees. That may push the cost equation over to support Index ETFs over Index Mutual Funds, particularly if it's a big ETF with narrow spreads..",
"title": ""
},
{
"docid": "7cda4e508cbccdc13fb6c2499982293b",
"text": "You are correct about the first two questions. At the time it was last measured those were the percent invested in the Basic Materials sector for the ETF and its benchmark. Note, this ETF will be significantly different from its benchmark as it is an equal-weight index rather than the more common capitalization-weighted index. Meaning that this ETF could have materially different performance from its benchmark. The third column is the average sector weights of all the ETFs in Morningstar's Large Blend category. These are ETFs that generally invest in a broad collection of large U.S. stocks and (weighted?) average of all of them will be generally fairly close to the benchmark.",
"title": ""
},
{
"docid": "0a7f714f0a3b50be1430a11363a34698",
"text": "Aswath Damodaran's [Investment Valuation 3rd edition](http://www.amazon.com/Investment-Valuation-Techniques-Determining-University/dp/1118130731/ref=sr_1_12?ie=UTF8&qid=1339995852&sr=8-12&keywords=aswath+damodaran) (or save money and go with a used copy of the [2nd edition](http://www.amazon.com/gp/offer-listing/0471414905/ref=dp_olp_used?ie=UTF8&condition=used)) He's a professor at Stern School of Business. His [website](http://pages.stern.nyu.edu/~adamodar/) and [blog](http://aswathdamodaran.blogspot.com/) are good resources as well. [Here is his support page](http://pages.stern.nyu.edu/~adamodar/New_Home_Page/Inv3ed.htm) for his Investment Valuation text. It includes chapter summaries, slides, ect. If you're interested in buying the text you can get an idea of what's in it by checking that site out.",
"title": ""
},
{
"docid": "afb5b4fbf1539e64167c69d8252f847b",
"text": "Use a compound interest calculator to project the difference with ETFs in the S&P 500 (or the asset mix of your choosing), and subtract the expected pension amount. If the difference is positive, or around around even, I would do it to avoid the risk of company failure.",
"title": ""
},
{
"docid": "5a9de080444de75c710b8e60527623c7",
"text": "\"I'm trying to understand how an ETF manager optimized it's own revenue. Here's an example that I'm trying to figure out. ETF firm has an agreement with GS for blocks of IBM. They have agreed on daily VWAP + 1% for execution price. Further, there is a commission schedule for 5 mils with GS. Come month end, ETF firm has to do a monthly rebalance. As such must buy 100,000 shares at IBM which goes for about $100 The commission for the trade is 100,000 * 5 mils = $500 in commission for that trade. I assume all of this is covered in the expense ratio. Such that if VWAP for the day was 100, then each share got executed to the ETF at 101 (VWAP+ %1) + .0005 (5 mils per share) = for a resultant 101.0005 cost basis The ETF then turns around and takes out (let's say) 1% as the expense ratio ($1.01005 per share) I think everything so far is pretty straight forward. Let me know if I missed something to this point. Now, this is what I'm trying to get my head around. ETF firm has a revenue sharing agreement as well as other \"\"relations\"\" with GS. One of which is 50% back on commissions as soft dollars. On top of that GS has a program where if you do a set amount of \"\"VWAP +\"\" trades you are eligible for their corporate well-being programs and other \"\"sponsorship\"\" of ETF's interests including helping to pay for marketing, rent, computers, etc. Does that happen? Do these disclosures exist somewhere?\"",
"title": ""
},
{
"docid": "80df8f80a32972fa0445cd1e0d529ac9",
"text": "This is the chart going back to the first full year of this fund. To answer your question - yes, a low cost ETF or Mutual fund is fine. Why not go right to an S&P index? VOO has a .05% expense. Why attracted you to a choice that lagged the S&P by $18,000 over this 21 year period? (And yes, past performance, yada, yada, but that warning is appropriate for the opposite example. When you show a fund that beat the S&P short term, say 5 years, its run may be over. But this fund lagged the S&P by a significant margin over 2 decades, what makes you think this will change?",
"title": ""
},
{
"docid": "43740123fa97c27cf5e4af82928e3592",
"text": "But if you add a security to the index you also remove one from the index, thus both a buy and sell. If weights change some go up, some go down thus some need to be purchased and some need to be sold. So I still don't see how ETFs are net sinks beyond their simple AUM.",
"title": ""
}
] |
fiqa
|
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